Hospital Distress to Grow If Congress Closes Door to Muni Market
- Small, lower-rated facilites could see costs rise 1-2 percent
- At least 26 non-profit hospitals already in default, distress
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As Congress moves to assemble the final version of its tax plan, projects like Spooner, Wisconsin’s 20-bed hospital hang in the balance.
The rural community, about 110 miles (177 kilometers) northeast of Minneapolis, sold tax-exempt bonds to build the $26 million facility it opened last May. The hospital’s chief executive officer said that if its access to such low cost financing had been cut off it would have paid over $6 million more in interest.