The California Debt and Investment Advisory Commission will review the process nonprofit hospitals use to disclose information to bondholders, according to an HFA Partners report.
Leading up to the California state commission's decision to act, the SEIU-United Healthcare Workers had voiced concerns that nonprofit hospitals were not providing sufficient bond disclosure information about the impact of the Patient Protection and Affordable Care Act.
However, the California Hospital Association denied the healthcare union's claims, saying the hospitals' analyses of their projected finances have been detailed and have included the PPACA's impact.
In addition to nonprofit hospitals, the California Debt and Investment Advisory Commission plans to review all municipal borrowers in the state for disclosure related to significant events. HFA Partners expects other states with considerable bond issuance to follow suit.
All issuers have until Dec. 1 to self-report municipal bond issuance according to the deadline set by the federal Municipalities Continuing Disclosure Cooperation Initiative.