Healthcare industry

Moody’s Investors Service and Standard & Poor’s recently downgraded Elliot Hospital’s Series 2003B revenue bonds to the triple-B category due to declining liquidity and growing debt levels.

CHICAGO — Smaller urban hospitals are especially vulnerable to fallout from cost-cutting measures that are certain to be part of a final health care reform bill now being debated by Congress, said Moody’s Investors Service.

DALLAS — A commission tasked with making Louisiana government more efficient voted Tuesday to seek another study on the state’s plans to build a $1.2 billion academic medical center in New Orleans.

BRADENTON, Fla. — The Cullman County, Ala., Health Care Authority tomorrow plans to issue $75 million of fixed-rate revenue refunding bonds and pay a swap termination fee to restructure its debt portfolio.

Moody’s Investors Service affirmed its A2 rating on Southwest General Health Center, located in the Cleveland suburb of Middleburg Heights, and revised its outlook to stable from negative after the center reported three years of improved operating results.

In the latest episode in the years-long effort to build a $425 million medical mart in Cleveland, the firm that plans to build the center has proposed a new downtown location, a move that “stunned” local politicians, according to reports.

CHICAGO — William Beaumont Hospital, one of Michigan’s largest health care systems, plans to enter the market next week with $273 million of fixed-rate new-money and refunding bonds that will continue the system’s efforts to reduce its floating-rate risks.

BRADENTON, Fla. — Stressed community development districts in Florida this month have told bondholders that they continue to rely on reserves to make debt ­payments. Some have filed notices of default and analysts expect their number to increase.

CHICAGO — The Illinois ­Finance Authority board yesterday signed off on more than $1 billion of borrowing, mostly on behalf of nonprofit hospitals seeking to enter the tax-exempt market before the end of the year.

Standard & Poor’s downgraded Winona Health Obligated Group’s debt one notch to BBB-minus — just one step above junk status — due to ongoing operating losses.

Standard & Poor’s yesterday upgraded to BBB-plus from BBB $503.9 million of University of Medicine and Dentistry of New Jersey debt that is backed by unlimited student fees. The outlook is stable.

Pharmaceutical maker Theragen Inc. defaulted on outstanding Series 2005 bonds last week as Bank of Oklahoma NA, the trustee for the debt, announced that the company did not meet principal and interest payments due Nov. 1.

Moody’s Investors Service Tuesday issued one-notch downgrades to bonds issued by Palomar Pomerado Health, a hospital district in San Diego County.

CHICAGO — Voters in Ohio, Indiana, and Michigan were in the mood to say yes Tuesday, approving bond issues for a new hospital in Indianapolis, a capital improvement plan for Detroit Public Schools, and a measure allowing casinos to set up shop in Ohio’s four largest cities.

CHICAGO — Kansas City, Mo.-based Children’s Mercy Hospital enters the market beginning today with a retail order period on its $180.7 million of new-money and refunding revenue bonds that will introduce fixed-rate bonds to the well-known hospital’s debt portfolio.

Missouri Gov. Jay Nixon announced the state would cut 700 positions, Medicaid payments, and school transportation funds to trim $204 million from the $23.7 billion budget for fiscal 2010.

The Hospital for Special Surgery in New York City will begin a retail order period tomorrow for $85 million of bonds secured by a Federal Housing Administration-insured mortgage.

St. Mary's Hospital in Passaic has until Nov. 6 to file a reorganization plan after the health care provider filed for Chapter 11 bankruptcy in early March.

CHICAGO — Minnesota’s largest not-for-profit health care provider, Allina Health System, enters the market next week with the first piece of its nearly $400 million new-money and refunding issue with a trifecta of upgrades in hand — a rarity for the hard-hit sector.

Woman’s Hospital of Baton Rouge hopes to sell bonds soon so it can proceed with a revised hospital replacement project that it deferred earlier this year due to a slack credit market.