Healthcare industry

The California's Joint Legislative Audit Committee voted Wednesday to conduct an audit of the state's hospitals to see if they meet the public benefits requirements needed to maintain their tax-exempt status.

BRADENTON, Fla. — Emmet & Co. and First Manhattan Co. have filed suit against Catholic Health East and Merrill Lynch claiming that $132.26 million of escrowed bonds issued by conduit entities in three states were improperly called.

Health care veteran Jim Mitchell has rejoined Fitch Ratings as part of the business and relationship management team.

Moody's Investors Service put Western Missouri Medical Center's MIG-1 rating on $46.6 million of notes on negative watch for a possible downgrade due to a change in how the rating agency analyzes support under the U.S. Department of Agriculture's Rural Development loan program.

CHICAGO - A trio of nonprofit hospitals in the Chicago area, including the prominent Northwestern Memorial's Prentice Women's Hospital, are expected to appeal the Illinois Department of Revenue's decision earlier this week to deny them their property-tax exemptions for failing to provide sufficient charity care.

CHICAGO - Novi, Mich.-based Trinity Health Corp. received preliminary approval from the Illinois Finance Authority board this week for its planned sale of about $550 million of debt tied to its recent acquisition of Loyola University Health System in suburban Chicago.

WASHINGTON - The Internal Revenue Service has closed an audit of the Highlands County Health Facilities Authority's 2005 refunding bonds with no change to their tax-exempt status.

Standard & Poor's this week upgraded Allina Hospitals & Clinics rating one notch to AA-minus due to its strong operations.

Moody's Investors Service raised its rating on the Northwestern Medical Faculty Foundation by one notch to A1, affecting $75 million of debt, due to its increasingly close affiliation with Northwestern Memorial Hospital and Northwestern Feinberg School of Medicine and an improving fiscal position.

CHICAGO - Nonprofit health care issuers already bracing for steep government reimbursement cuts from the new federal health care law now face a new round of cuts tied to the debt-ceiling deal.

The dominoes continue to fall in Rhode Island as Moody’s Investors Service downgraded East Providence to Baa1 from A1, while on the same day it lowered to A2 from Aa3 the Rhode Island Health and Educational Building Corp.’s revenue bond financing program.

The Dormitory Authority of the State of New York on Wednesday approved $426 million of health care bonds for the North Shore-Long Island Jewish Obligated Group. The 30-year bonds will be sold through negotiated sales.

The Internal Revenue Service has opened an audit of $31 million of health center revenue bonds issued in 2005 by the Lebanon County, Pa., Health Facilities Authority to refund bonds previously sold in 1999 for a retirement facility.

Standard & Poor’s last week revised its outlook to positive from stable on Northfield Hospital’s low investment-grade rating of BBB-minus.

Health care and housing remain two of the most risky sectors in the municipal market, with the federal health care bill and the sluggish real estate market contributing to skepticism about the sectors. But muni experts say some distressed debt is safe enough to be a buying opportunity.

The Birmingham City Council Tuesday unanimously approved the issuance of $215 million of revenue bonds on behalf of the University of Alabama Health Services Foundation.

Massachusetts’ $30.6 billion budget for fiscal 2012, which restored $65 million in local aid and improved the ability of governments to manage health-care costs, is a credit-positive for municipalities, Moody’s Investors Service said.

The Wisconsin Supreme Court last week overturned an appeals court ruling and upheld the tax-exempt status of an outpatient facility operated by nonprofit Wheaton Franciscan Healthcare.

DALLAS — Louisiana Treasurer John Kennedy Tuesday night will hear from opponents as well as backers of a proposed $1.2 billion, 424-bed state academic medical center in New Orleans.

The Maine Health and Higher Education Facilities Authority plans to sell $290 million of Series 2011 revenue bonds Tuesday to benefit a construction spree by the MaineGeneral Medical Center.