Association of HMO penetration and other credit quality factors with tax-exempt bond yields.
This paper evaluates the relationship of HMO penetration, as well as other credit quality measures of market, institutional, operational, and financial traits, to tax-exempt bond yields. The study analyzed more than 1,500 bond issues from 1990 through 1993 and corrected for simultaneous relationships between bond size and yield and selection bias. The study found lower bond yields for hospitals located in markets with no HMO penetration. Lower yields for bond issues also were found for facilities generating higher numbers of days cash on hand and greater debt service coverage. Finally, results show that hospitals with higher occupancy rates achieve a lower yield.
McCue
M J
MJ
Department of Health Administration, Virginia Common-wealth University, Richmond 23298-0203, USA.
D002202:Capital Financing; D003710:Demography; D006279:Health Maintenance Organizations / Q000191:economics / Q000706:statistics & numerical data*; D006302:Health Services Research; D006788:Hospitals, Voluntary / Q000191:economics* / Q000592:standards / Q000706:statistics & numerical data; D006801:Humans; D007449:Investments / Q000191:economics*; D015233:Models, Statistical; D011787:Quality of Health Care; D019464:Tax Exemption; D014481:United States