The Build America Bonds program, created by the American Recovery and Reinvestment Act, is currently limited to municipalities but the White House’s budget would extend it to non-profit organizations such as hospitals and universities.
While the income generated from these bonds is subject to taxation, the federal government has been subsidizing 35 percent of the bonds’ overall interest cost.
The program is due to expire at the end of 2010 but President Obama wants to make it permanent while reducing the government subsidy to 28 percent.
Hospitals run by government entities have already been taking advantage of the program. For example, the Dallas News reported that most of $705 million in bonds offered by the Dallas County Hospital District to rebuild Parkland Memorial Hospital were Build America Bonds.
Read the Wall Street Journal’s report on bond financing (note: this report is no longer available on the WSJ website).
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.
