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Longest Hospital-Bond Rally Since 2006 Imperiled: Muni Credit
San Francisco Chronicle

The longest rally for municipal hospital bonds since 2006 may be doomed as President Barack Obama and U.S. states propose more than $300 billion of health- care spending reductions to close deficits. Obama’s fiscal 2013 budget plan yesterday called for $319 billion of cuts over a decade to Medicare and Medicaid. Medicare, for the elderly and disabled, makes up 43 percent of nonprofit hospital revenue, according to Moody’s Investors Service, which cited the prospect of increased downgrades. Medicaid, the U.S. and state system for the poor, accounts for 11 percent.