How the choice of issuing authority affects hospital debt financing costs
Carpenter, C.E.; Bernet, P.M.
Healthcare Financial Management Journal of the Healthcare Financial Management Association 67(5): 80-84
2013
ISSN/ISBN: 0735-0732 PMID: 23678694 Document Number: 667812
All other things being equal, bonds issued by statewide authorities have lower yields than bonds issued by local authorities. However, lower yields may be offset by higher issuance costs for statewide authorities, as reflected in the true interest cost. Higher issuance costs may provide benefits for investors and for issuing hospitals.