Texas Health Resources, Arlington, has settled an Internal Revenue Service review of $635 million in bonds issued in 1997 to pay for the system's formation from Presbyterian Healthcare Resources and Harris Methodist Health System. The agreement ends an investigation that began in May 2000. THR will not pay a penalty or restructure its debt under the agreement, and officials said there would be no effect on the system's financial position or operations. THR is one of six hospital systems whose merger financing bonds were under scrutiny by the IRS to determine if they merited tax-exempt status and the fourth system to settle. -- by Cinda Becker
Texas system settles acquisition financing review
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