Healthcare industry

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.

Harris County Hospital District is planning to issue $104 million of senior-lien refunding bonds this week in variable-rate mode with a letter of credit from JPMorgan Chase. The tax-exempt bonds will retire Series 2007B auction-rate bonds that were converted to taxable debt in April 2008.

The Dormitory Authority of the State of New York created a finance committee last week to comply with a public authority reform law enacted last year. The committee will review all proposals for bond financings with DASNY staff before they are brought to the board for approval.

WASHINGTON — Rating agencies have expressed serious concerns about the District of Columbia’s financial status, particularly regarding its foreclosure this month on a troubled hospital, according to a letter the chief financial officer sent to city officials Wednesday.

CHICAGO — All five southeastern Wisconsin school districts involved in a failed investment scheme tied to funding their non-pension retiree health care trusts are reneging on their moral obligation pledge to repay asset-backed notes issued by the trusts and sold to Depfa Bank Plc.

Because Congress has failed to extend federal Medicaid assistance funds, Georgia Gov. Sonny Perdue last week ordered most state agencies to cut their budgets by 4%. Only the budget supporting K-12 schools was exempt from the cuts.

Moody’s Investors Service revised its outlook to stable from negative on Wheaton Franciscan Services Inc.’s Baa2 rating, citing progress in turning around its financial performance.

Standard & Poor’s last week revised its outlook to stable from negative and affirmed its A-minus rating on Memorial Hospital and Health Center, a 131-bed hospital located in the town of Jasper.

WASHINGTON — Florence County, S.C., will begin issuing $122.4 million of revenue bonds Monday for several projects at the McLeod Regional Medical Center as the hospital chain has demonstrated credit strength despite a struggling regional economy and the changing health care environment.

CHICAGO — A Wisconsin Supreme Court decision overturning the state diversion of $200 million from a medical malpractice fund will force a new round of budget cuts, Gov. Jim Doyle’s administration said Tuesday.