Hospital and healthcare borrowings were down 27 percent in the first quarter of 2012 compared with the same quarter in 2011 — a surprise considering municipal bond volumes were up 63 percent during the same period, according to an HFA Partners report.
HFA Partners analyzed data from Thomson Reuters, which included private placements. In the first quarter of 2012, bond issues totaled $3.35 billion compared with $4.58 billion in the same quarter last year.
Analysts said some hospitals may be holding off on refunding some of their bonds to borrow for "new money" projects, which will then be combined. In addition, HFA Partners said many healthcare financial executives do not see a need to rush out and lock in the low interest rates when the federal government has shown a commitment to keep interest rates low.
In 2011, $25 billion of healthcare bonds were sold, making it the slowest year for healthcare bond issuance in the past decade. In 2008, healthcare bond sales topped $60 billion.
HFA Partners analyzed data from Thomson Reuters, which included private placements. In the first quarter of 2012, bond issues totaled $3.35 billion compared with $4.58 billion in the same quarter last year.
Analysts said some hospitals may be holding off on refunding some of their bonds to borrow for "new money" projects, which will then be combined. In addition, HFA Partners said many healthcare financial executives do not see a need to rush out and lock in the low interest rates when the federal government has shown a commitment to keep interest rates low.
In 2011, $25 billion of healthcare bonds were sold, making it the slowest year for healthcare bond issuance in the past decade. In 2008, healthcare bond sales topped $60 billion.
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