Healthcare industry

Seattle Children's Hospital will price $118 million of fixed-rate revenue bonds today in a deal driven partly by the huge demand for tax-exempt paper.

Many states will have to revisit their fiscal 2011 budgets and may have to rearrange their spending plans due to gaps between what they expected and what they actually receive from a six-month extension of extra federal Medicaid funding.

BRADENTON, Fla. — The Kentucky Asset/Liability Commission on Wednesday expects to price $468 million of taxable notes to refinance obligations the state owes to the Teachers’ Retirement System for medical benefits.

DALLAS — The University of Texas System has approved building an $800 million hospital at its UT Southwestern Medical Center in Dallas that will be financed largely through revenue bonds.

WASHINGTON — Two medical groups have asked the Internal Revenue Service to allow hospitals to be flexible when conducting the community health needs assessments required under the health care reform law.

CHICAGO — The cash-strapped Chicago Public Schools will receive about $100 million from Illinois’ share of education funding in the new $26 billion federal jobs law, local and federal officials said Wednesday.

A Miami-Dade County grand jury last week released a report on Jackson Health System, describing its financial problems as “a colossal mess.” No formal charges were brought by the panel.

House members Tuesday sent to President Obama a $26.1 billion measure that would extend but gradually phase out higher federal Medicaid payments to states through June 30 and provide $10 billion to local school districts to prevent layoffs.

CHICAGO — The Illinois Finance Authority board on Tuesday advanced plans for a series of financings, including the first in the state in seven years to take advantage of the FHA 242 Hospital Mortgage Insurance Program. Another could be the first to tap the state’s Midwestern disaster area bond allocation.

Standard & Poor’s downgraded Lake Region Healthcare Corp. to BBB from A-minus due to its balance sheet struggles.

CHICAGO — There is cautious optimism for the nonprofit health care sector as operating performance and debt-market access show improvement after two years of financial turmoil.

WASHINGTON — The Senate yesterday voted 61 to 39 to approve a $26 billion measure that would extend but phase out increased federal Medicaid payments to states through June 30 and give $10 billion to local school districts to prevent layoffs.

ALAMEDA, Calif. — Officials in Beverly Hills, Calif., were concerned about the city’s growing liability for the future health care costs of its current employees.

Massachusetts hospitals and higher educational institutions could face higher borrowing costs in the future as the state plans to fold the Massachusetts Health and Educational Facilities Authority into the Massachusetts Development Finance Agency.

The Senate is poised to pass legislation that would extend and phase out enhanced federal Medicaid payments to states for six months through June 30, 2011, as well as provide $10 billion to local school districts to prevent an estimated 140,000 educators from being laid off.

CHICAGO — Moody’s Investors Service this week lowered Kimberly Area School District’s general obligation debt one notch to Aa3, making it the third district to suffer a downgrade after reneging on a moral obligation pledge to repay asset-backed notes issued by their non-pension retiree health care trusts.

CHICAGO — South Dakota’s Regional Health today will offer $57 million of fixed-rate revenue bonds that will be used to fund various capital projects and refund a chunk of fixed-rate debt to achieve savings.

Andrew Garvey, head of capital markets banking at Cain Brothers, has departed the boutique firm after nearly three years, the investment bank confirmed Tuesday.

Moody’s Investors Service Monday downgraded the Lakewood Hospital Association to A3 from A2, warning that it faces significant financial challenges going forward. Analysts kept the outlook negative at the lower rating.

WASHINGTON — Fitch Ratings downgraded the Weirton Medical Center in West Virginia on Friday after Moody’s Investors Service took similar action earlier this year. But credit analysts and hospital managers said Weirton has the cash to make its debt-service payments.