Funds that lend money to not-for-profit hospitals and health systems (also cities, counties and other government borrowers) saw assets drop by an estimated $17.7 billion as 2010 drew to a close. Cash began to flow from the funds in early November and the exodus continued through Dec. 21, the most recent estimates available from the Investment Company Institute.
The future after a bad past
The seven-week hemorrhage at the end of 2010 easily surpassed the drop during the final four months of 2008, when the financial system appeared poised to collapse. The ICI figures show funds lost roughly $14.5 billion in assets between September 2008 and the end of that year.
Volatility in the tax-exempt market derailed some hospital and health system refinancing plans last year. The New Year begins without relief programs that helped improve borrowing after the credit crisis erupted more than two years ago. In addition, the economy and job market have not yet recovered from the recession, which continues to put pressure on hospital operations.
So what does the year ahead hold? Modern Healthcare reported on projections for the year ahead in the year's first issue. You can also catch videos from the staff that should give you an overview of the major issues facing each sector during the coming year.
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