Big nonprofit hospital systems born of rapid consolidation in the health-care industry are increasingly trying to sell themselves to investors to ensure they get the best rates when they borrow, writes The Wall Street Journal.
The wave of mergers triggered by the Affordable Care Act has created systems such as Trinity Health in Michigan and San Francisco-based Dignity Health with dozens of hospitals and billions of dollars in annual revenue. As they grow in size and complexity, and seek financing in the municipal-bond market, many such groups are conducting corporate-style investor calls and roadshows to improve terms and increase demand for their bonds.
Investors are in turn demanding greater financial transparency from big nonprofit players in health care, which face less onerous federal disclosure requirements than publicly traded companies. Nearly 60 percent of hospital operators nationwide are nonprofit.