The Orange County (Fla.) Health Facilities Authority told bondholders that the Internal Revenue Service is examining a $330 million bond issue from June 2000. The proceeds were intended to create a financing pool for hospital projects. At least two other issuers, the Kentucky Economic Development Finance Authority and Clinton County, Ohio, previously disclosed IRS examinations of their hospital pool bond deals. IRS officials have expressed concern that bogus hospital loan pools were created in order to generate professional fees. According to public records, the Orange County authority will redeem the bonds on Oct. 2, prior to their maturity. -- by Mary Chris Jaklevic
Fla. county says IRS reviewing hospital bond deal
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