Healthcare industry

The University of Texas System Board of Regents last week said the system would contribute $25 million a year to operations of a medical school in Austin if locals provide $35 million a year.

CHICAGO — As the nonprofit health care world keenly awaits the U.S. Supreme Court's ruling on the new federal health care law, credit analysts warn that a ruling striking down the individual mandate while maintaining the rest of the law would deliver a blow to the already-suffering sector.

Moody’s Investors Service downgraded to A3 from A2 Kettering Health Network’s $408 million of outstanding bonds.

WASHINGTON — The Internal Revenue Service has notified the Cumberland County, Pa., Municipal Authority that $10 million of Series A revenue bonds it issued in February 2008 have been selected for examination.

SAN FRANCISCO — The board of the California Health Facilities Financing Authority has voted to reduce its issuance fees as it battles to remain competitive with other conduit issuers.

If passed, Rhode Island’s new legislation to allow acquisitions would be a credit positive for small community hospitals in the state, Moody’s Investors Service said in a report.

In a meeting on Wednesday, the board of the Dormitory Authority of the State of New York approved $320 million in financings for higher education and health care institutions.

At least eight Midwestern health care providers are set to enter the market over the next two weeks, offering more than $1.3 billion of bonds. Leading the pack this week is a trio that represents the region's largest and most prestigious providers.

CHICAGO — The Federal Trade Commission's success so far in challenging two high-profile hospital mergers could signal fresh pressure on the sector, which is in the midst of a transforming consolidation trend.

Illinois Gov. Pat Quinn unveiled a plan Thursday to trim $2 billion in Medicaid spending through cuts and other savings while raising $700 million in new revenue from a cigarette tax hike and federal matching funds in an attempt to ease the program's strain on state finances.

Fitch Ratings this week upgraded the Oregon Health and Science University to A-plus from A as the school prepares to come to market next week with $268 million of revenue bonds.

WASHINGTON — The Internal Revenue Service has revoked the tax-exempt status of American Health Foundation Inc., raising questions about the tax-exemption of $28.96 million of refunding and revenue bonds that issuers in five states sold for three of its subordinate entities.

A bankruptcy court judge in Chicago will be asked next week to approve a $53.5 million cash offer to purchase the assets of the Clare at Water Tower continuing-care community in a deal that provides holders of the facility’s $229 million of debt with a recovery rate of at least 20 cents on the dollar, sources said.

CHICAGO — The Michigan Finance Authority is bringing $153.4 million of revenue bonds to market next week on behalf of the Oakwood Obligated Group, a four-hospital system located in the Detroit area.

Moody's Investors Service has downgraded Northwest Community Hospital in suburban Chicago one notch to A2 following fiscal 2011 results that fell short of budgeted projections.

Chicago-based Mercy Health System formally joined Michigan-based Trinity Health last week.

The Illinois Finance Authority board advanced up to $875 million worth of borrowing for health care and higher education organizations, including Ascension Health Alliance's sale of up to $600 million of new-money and refunding debt and $150 million from Loyola University of Chicago.

Moody’s Investors Service on Tuesday placed the A3 rating on Tampa General Hospital’s debt on review for possible downgrade.

A group of seven Illinois safety-net hospitals last week unveiled several measures they said could trim $1.4 billion from the state’s Medicaid expenses and eliminate the need for the deeper cuts that Gov. Pat Quinn has requested.

CHICAGO — The Mayo Clinic took retail orders Tuesday on $200 million of revenue bonds and will open the sale to institutional buyers Wednesday as it finances various capital projects, including a new proton beam therapy center at its flagship campus in Rochester, Minn.