State Measure Opens Up Lower-Interest Financing to California Hospitals
The California Health Facilities Financing Authority approved a measure on Tuesday that could help hospitals sidestep a jump in interest rates for bonds, the Sacramento Bee reports.
The emergency measure will let hospitals refinance or convert debt to bonds with lower or more stable interest rates.
Interest rates have increased recently after bond insurers' involvement in the mortgage crisis raised questions among investors (Hill, Sacramento Bee, 3/12).
The first six hospitals and hospital systems to refinance debt through the program are:
- Catholic Healthcare West, $2.2 billion;
- Hoag Memorial Hospital Presbyterian, $747 million;
- Stanford Hospitals and Clinics, $665 million;
- Sutter Health, $625 million;
- Scripps Health, $314 million; and
- Lucile Salter Packard Children's Hospital, $69 million (Office of the Treasurer release, 3/11).