We have experience working with government-owned hospitals, non-profit hospitals, and for-profit hospitals—all of which have their own advantages when borrowing money utilizing municipal bonds.
Both government-owned and non-profit hospitals have the significant advantage of being eligible under state and Federal law to raise money through the issuance of tax-exempt municipal bonds, where the interest paid need not be claimed on federal or state income taxes. These tax-exempt bonds, therefore, carry a very low-interest rate.
Interest rate swaps may provide an alternative financing technique but need to be approached with caution in the current volatile economic environment. Both flexibility and creativity are needed to ensure that hospitals can obtain—and maintain—the lowest rates possible with some assurance of stability. Rubin & Hays takes the time to advise clients on how to avoid the pitfalls of interest rate swap transactions.
Certain government guaranty programs may offer better financing options for some hospitals.
Rubin & Hays can help simplify an otherwise complicated financing process, leaving hospital administrators time to concentrate on the hospital’s health care systems.