The Treasury Department agrees with Rep. Jim McDermott, D-Wash., that the 16-year-old safe harbor provisions for tax-exempt health care bonds need to be updated so they won't conflict with health care reform.

"The Administration shares your interest in advancing coordinated care among hospitals, physicians, and other health care professionals, and in successfully implementing the Affordable Care Act," Alastair Fitzpayne, the Treasury's assistant secretary for legislative affairs, wrote in a July 31 letter.

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