With revenues and profits down and expenses rising, hospitals are selling bonds to raise capital but are paying higher interest rates than desired. Rates that were 4-5 percent a few months ago are now being replaced by those of 6 percent or more, with some even surpassing an interest rate of 8 percent.
John Landers, a Morgan Stanley managing director, said the market for hospital bonds has only been helped by a rise in investors looking for deals, according to the story.
Read The Sacramento Bee’s coverage of the California hospital bond market .
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