Facing high labor costs and economic uncertainty, hospitals hold $12 billion in impaired bonds, per Becker’s.
According to Municipal Market Analytics, nearly 4% of all hospital municipal bond debt is outstanding. The debt crisis is at its worst level in the past 15 years, including during the 2008 financial crash.
The COVID-19-era reliance on travel labor exacerbated the issue. Visalia, Calif.-based Kaweah Health paid nurses $200 per hour at the pandemic’s peak. The health system’s lenders now demand $18 million in reserves as a guarantee for bondholders.
