System cuts costs by providing its own credit enhancement
Nemes, J.
Modern Healthcare 21(39): 34; 36
1991
ISSN/ISBN: 0160-7480 PMID: 10114156 Document Number: 375239
While many hospitals are facing increasing costs when obtaining letters of credit from commercial banks, one hospital system has found a way around those expenses. In a recent $35 million borrowing through variable-rate bonds, St. Joseph Health System in Orange, Calif., used its own strong cash flow and liquid investments as the underlying credit enhancement on the bond issue.