Hospitals may soon have another outlet to refinance debt. The Department of Housing and Urban Development is expected to announce shortly that hospitals seeking to refinance debt may do so though the agencys insured mortgage loans, which extend the governments gilt-edged credit, an agency official told attendees in Seattle for the Healthcare Financial Management Associations Annual National Institute.
William Lammers, a health system adviser with HUDs office of insured healthcare facilities, said proposed changes on a fast track will remove an existing requirement that hospital borrowers use at least 20% of a federally backed loan for new construction. Lammers said the agency hopes to announce approval for the changes in the coming month. Since the HUD insured loans were first issued in 1968, the agency has insured $14.9 billion in hospital loans.