Healthcare facilities face a significant issue of finding and retaining staff near their workplaces due to high housing costs. Partner Insights engaged with JPMorganChase's Tucker Kaufmann and Lionel Lynch to address this problem. They are working on two fronts - building more workforce housing and enhancing healthcare organizations' community service.

JPMorganChase's Initiative to Solve Healthcare Staff Housing Woes

Tucker Kaufmann's Perspective

JPMorganChase is now actively implementing programs to finance multifamily communities with rental rates suitable for middle-income earners. By collaborating with the healthcare group, they are making workforce housing more affordable while serving medical workers. Over the past 20-plus years, the healthcare banking team has specialized in understanding the financial needs of healthcare services organizations and tailoring optimized solutions. They bring the resources of the entire JPMorganChase organization to address housing affordability issues. The banking team takes pride in helping clients create a brand in the communities they serve and improve patient care. This innovative financing program provides healthcare staff with an affordable place to live close to their work.For example, in a market like Scottsdale, Arizona, an entry-level nurse earns roughly $66,000 a year, but the median rent is about $3,300 a month. This creates a cost burden for employees, making it difficult for healthcare systems to hire and retain them.

Lionel Lynch's Perspective

In the healthcare system, there are more than 20 million directly employed workers. Many of them bear the burden of paying a large share of their wages for housing, which is not a sustainable situation. For every doctor, there are two to five people supporting patient needs and often being paid less than doctors. Affordable workforce housing can help sustain healthcare operations by attracting and retaining workers.Building workforce housing on or near healthcare campuses has additional benefits such as improving employee safety, reducing commute times, and increasing retention. With less time spent commuting, employees can focus more on their work and well-being.For instance, a client in the Northeast partnered with a private developer to build 295 apartments primarily for their workforce. They were able to invest equity at a lower cost of capital, allowing the developer to make returns while offering lower rents. Some clients start by contributing underutilized surface parking lots as land.Healthcare systems, especially larger ones, are always looking for real estate opportunities for future expansion. They can now pair these parcels with workforce housing development. Interested developers can learn about healthcare systems in their communities and recognize potential partnerships. JPMorganChase has a dedicated group with the knowledge and insights to finance these projects.If you want more information on JPMorganChase's Workforce Housing Solutions, please email the dedicated team at workforcehousing@jpmchase.com.