Association of bond, market, operational, and financial factors with multi-hospital system bond issues.
Despite the growth of multi-hospital systems in the 1990s, their performance in the tax-exempt bond market has not been adequately evaluated. The purpose of this study is to compare bonds issued by multi-hospital systems to those issued by individual hospitals in terms of bond, market, operational, and financial characteristics. The study sample includes 2,078 newly issued, tax-exempt, revenue bonds between 1991 and 1997. The findings indicate that multi-hospital systems issued larger amounts of debt at a lower cost, were more likely to be insured, had higher debt service coverage and higher operating margins.
Carpenter
C E
CE
Graduate Program in Health and Medical Services Administration, Widener University, Chester, PA 19013, USA.
McCue
M J
MJ
Hossack
J B
JB
D019985:Benchmarking; D002202:Capital Financing / Q000706:statistics & numerical data*; D005377:Financial Management, Hospital / Q000706:statistics & numerical data*; D019981:Health Care Sector; D007182:Income / Q000706:statistics & numerical data; D007449:Investments; D016015:Logistic Models; D009096:Multi-Institutional Systems / Q000191:economics* / Q000706:statistics & numerical data; D019464:Tax Exemption; D014481:United States