Lafayette (La.) General Medical Center changed the structure of its groundbreaking heart-hospital financing, scheduled to close July 23. The bulk of the financing for the $75 million project has been switched from a public bond offering to a private placement limited to investors deemed to have sufficient knowledge and experience to evaluate the bonds. CFO Roger Mattke said such investors would better understand the deal's structure. As reported by Modern Healthcare in May, $2 million of financing will come from a private-placement sale of tax-exempt participating bonds to physicians. Commitments from physicians were expected to be completed today, Mattke said. Advocates of the strategy say selling bonds to physicians will have fewer costs and legal risks than creating a hospital-physician joint venture. -- by Mary Chris Jaklevic
La. hospital revises innovative financing plan
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