Lafayette (La.) General Medical Center said it won't finance its new heart hospital by selling tax-exempt bonds to physicians, which would have been the first such financing of a major new healthcare facility. Instead, the system said it will finance the hospital through "more traditional methods," which weren't specified. A provision in the Senate Medicare reform bill would prohibit physicians from referring patients to specialty hospitals in which they have equity. In a written statement, Lafayette General President and CEO James Thaw said, "Matters over the last couple of weeks have created a cloud of uncertainty around this particular financing structure as it specifically applies to the Lafayette General project. Obviously, we believe it is prudent and responsible to evaluate the likelihood and impact of such legislation." The hospital planned to sell $2 million of tax-exempt participating bonds to about 40 admitting physicians as part of a financing package for the $75 million hospital. The deal was scheduled to close July 23. -- by Mary Chris Jaklevic
La. hospital cancels landmark financing plan
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