The BAB program was created to act as a lower-cost borrowing tool for state and local governments. The bonds are conventional taxable bonds, and the federal government subsidizes portions of the state and local government borrowing by making direct payments. The bonds can go to any 501(c)(3) organization, such as non-profit hospitals.
The provision would operate the BAB program with a subsidy of 30 percent through 2013, and then it would be permanently extended at a rate of 28 percent.
Related Articles on Hospital Bonds:
9 Hospitals and Health Systems With Tax-Exempt, Fixed-Rate Bond Issues in Past Month
10 Hospitals and Health Systems Receive Credit Downgrades in Past Month
Lower-Rated Hospitals Face Bond Challenges in 2012
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.
