For-profit hospital operators were not the only hospital institutions to feel positive financial ramifications from Thursday's Supreme Court ruling, as municipal bond holders are poised to invest more in non-profit hospital debt, according to a Bloomberg Businessweek report.
There is roughly $3.7 trillion in the municipal bond market, and hospital debt has held steady over the past year, earning an average 13.9 percent, which is higher than other municipal industries, according to the report. The Supreme Court's decision to uphold the healthcare reform law will expand health coverage to millions of new people, which means less uncompensated care and more revenue for hospitals.
Hospitals with higher credit ratings, in particular, are expected to see higher returns. "For holders of not-for-profit hospital debt, this is good news because it will increase the number of people coming to the hospital who are insured," said Charles Hachten, a municipal healthcare analyst for Nuveen Asset Management, in the report.
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There is roughly $3.7 trillion in the municipal bond market, and hospital debt has held steady over the past year, earning an average 13.9 percent, which is higher than other municipal industries, according to the report. The Supreme Court's decision to uphold the healthcare reform law will expand health coverage to millions of new people, which means less uncompensated care and more revenue for hospitals.
Hospitals with higher credit ratings, in particular, are expected to see higher returns. "For holders of not-for-profit hospital debt, this is good news because it will increase the number of people coming to the hospital who are insured," said Charles Hachten, a municipal healthcare analyst for Nuveen Asset Management, in the report.
More Articles on Non-Profit Hospital Bonds:
New Bad Debt Accounting May Impact Hospital Bond Covenants
Hospital Bond Tremors: Moody's Downgrades 15 Global Banks
19 Hospitals With Tax-Exempt, Fixed-Rate Bond Issues in Past Month