Lower interest rates mean that a refinancing might save a bundle

Two recent developments provide compelling reasons for hospitals to consider refinancing or advance refunding their existing debt: the precipitous fall in interest rates since August 1982 and the outcome of recent litigation that permits hospitals to recoup the issuance costs of refinancing or refunding bonds. These favorable developments, coupled with increasing concern over restrictive covenants, will cause many hospitals to evaluate a refunding sometime this year.