News Headlines Article

Hospitals could face higher borrowing costs under ‘fiscal cliff’ proposal
Modern Healthcare

Borrowing costs could climb for hospitals in tax-exempt bond markets under one White House-backed proposal to help avoid the so-called fiscal cliff.

The proposal, one the president most recently included in his 2013 budget, would limit the tax exemption on municipal bonds for wealthy households.

Investors who buy tax-exempt bonds do not pay tax on the interest income, which is typically reflected in lower interest rates for borrowers.