The Challenge
Three Crosses Regional Hospital, a general acute care provider in southern New Mexico, was entering a major growth phase—expanding facilities, hiring staff, and increasing service capacity.
But with significant reimbursements delayed by both state and federal sources, and their senior lender unwilling to extend further credit due to covenant constraints, the hospital faced a funding shortfall. Payroll and expansion were both at risk.
Leadership needed a non-dilutive capital solution—and fast.
Our Solution
A direct referral connected the hospital to EMC Financial, known for creative capital solutions in healthcare.
We worked closely with leadership to understand their financial position, reimbursement timing, and immediate runway needs. EMC quickly structured an $8 million mezzanine facility, subordinated to existing senior debt, with:
- No personal guarantees
- Covenant-light structure
- Flexible use of proceeds
- Expedited approval and funding
According to the CFO, “They moved fast and understood the complexity of our situation.”
Measured Results
- Payroll was preserved and construction remained on schedule
- New service wings opened as planned, expanding patient capacity
- Within one year, the hospital stabilized and refinanced into a long-term senior facility
EMC Advantage
- ✔ Deep healthcare financing experience
- ✔ Ability to move quickly with structured junior capital
- ✔ Relationship-driven underwriting
- ✔ Flexible, non-dilutive solutions when traditional lenders say no