State Delays Sutter Health Bond Issue
The California Health Facilities Financing Authority last week voted to postpone until mid-2007 a ruling on a $958 million tax-exempt bond issue by Sutter Health, the San Francisco Business Times reports.
The delay will allow the board more time to review the case, including comments against the hospital's pricing practices by the Service Employees International Union, United Healthcare Workers West, according to Mike Roth, a spokesperson for the state treasurer's office (San Francisco Business Times, 12/11).
The board also recommended revised state laws that ensure hospitals pass on to consumers any savings generated from tax-exempt funding (Chan, Sacramento Bee, 12/12).
Sutter officials on Monday said the delay will affect "the cost of critical hospital seismic safety improvements" and other expansion projects funded through the proposed bond issue (San Francisco Business Times, 12/11).
Bill Gleeson, Sutter spokesperson, said the hospital is considering other financing options for upgrades, including taxable bonds or issuing tax-exempt bonds through municipal financing entities such as the California Communities Joint Powers Authority (Sacramento Bee, 12/12).