As a chief financial officer for a hospital and healthcare system, I'm overjoyed that the Securities and Exchange Commission has finally awakened and will be requiring healthcare institutions and many other tax-exempt entities to provide detailed, up-to-date information on the finances of their respective organizations if they have bond issues outstanding.
In your May 2 article "Bond issuers face tougher disclosure rules" (p. 72), I don't understand why the Healthcare Financial Management Association executive said "it could affect costs significantly" to comply with these regulations. Every hospital already should have all the information.
According to the article, the SEC is looking for:
Current financial information including audited statements.
Other financial and operating information.
A narrative discussion of financial and operating information.
Disclosure of material events.
Whether or not that's all the SEC wants, how can that be costly to develop? This is the type of information that should be available at a hospital's fingertips for board presentations, internal meetings and normal operations. I can't imagine these rules being unwieldy or expensive to implement. They will benefit our industry because there's nothing wrong with full disclosure.
Senior vice president/CFO
Memorial Health System
South Bend, Ind.