Jove
Visualize
Contact Us
JoVE
x logofacebook logolinkedin logoyoutube logo
ABOUT JoVE
OverviewLeadershipBlogJoVE Help Center
AUTHORS
Publishing ProcessEditorial BoardScope & PoliciesPeer ReviewFAQSubmit
LIBRARIANS
TestimonialsSubscriptionsAccessResourcesLibrary Advisory BoardFAQ
RESEARCH
JoVE JournalMethods CollectionsJoVE Encyclopedia of ExperimentsArchive
EDUCATION
JoVE CoreJoVE BusinessJoVE Science EducationJoVE Lab ManualFaculty Resource CenterFaculty Site
Terms & Conditions of Use
Privacy Policy
Policies

Related Experiment Videos

Evaluating the underlying factors behind variable rate debt.

Michael J McCue1, Tae Hyun Tanny Kim

  • 1Department of Health Administration, Virginia Commonwealth University, Richmond, VA, USA. mccue@vcu.edu

Health Care Management Review
|December 14, 2007
PubMed
Summary
This summary is machine-generated.

Related Concept Videos

You might also read

Related Articles

Articles linked to this work by shared authors, journal, and citation graph.

Sort by
Same author

The Health of the Small-Group Insurance Market.

Issue brief (Commonwealth Fund)·2018
Same author

Financial Performance of Health Insurers: State-Run Versus Federal-Run Exchanges.

Medical care research and review : MCRR·2017
Same author

How Have Health Insurers Performed Financially Under the ACA' Market Rules?

Issue brief (Commonwealth Fund)·2017
Same author

Analysis of Actual Versus Projected Medical Claims Under the First Year of ACA-Mandated Coverage.

Inquiry : a journal of medical care organization, provision and financing·2016
Same author

Early Experience of Financial Performance and Solvency of Medicaid-Focused Insurers Under ACA Expansion.

Medical care research and review : MCRR·2016
Same author

How Has the Affordable Care Act Affected Health Insurers' Financial Performance?

Issue brief (Commonwealth Fund)·2016
Same journal

Profession-led vs collaborative workforce models in dental, vision, and hearing care for older adults in community care: A mixed-methods systematic review.

Health care management review·2026
Same journal

Bridging health and social care: Governance insights from Thailand's S-TOP intermediate care pilot.

Health care management review·2026
Same journal

Long-term care policies in the Asia-Pacific Aged Care Hub (APACH) countries: A scoping review.

Health care management review·2026
Same journal

Expatriate health care workers in Saudi Arabia: Exploring workforce integration, advantages, and challenges in a globalized health care system.

Health care management review·2026
Same journal

Acceptance of digital health technologies in health and aged care: A systematic review and meta-analysis.

Health care management review·2026
Same journal

A transdisciplinary assessment of age-friendly cities and communities in Bengaluru Urban, India: Towards a healthy aging framework.

Health care management review·2026
See all related articles

Hospitals with strong finances increasingly use variable rate debt to reduce capital costs. Factors like bond insurance and higher profitability influence this trend, indicating a strategic financial management approach.

Area of Science:

  • Healthcare Finance
  • Capital Markets
  • Financial Management

Background:

  • Variable rate debt usage in healthcare bonds has significantly increased since 1995.
  • In 2004, variable rate debt constituted 63.4% of healthcare bonds issued, up from 30.6% in 1995.

Purpose of the Study:

  • To identify factors influencing hospitals' choice of variable rate debt over fixed rate debt.
  • Investigate issuer characteristics, issue details, and credit spread implications.

Main Methods:

  • Analyzed 230 tax-exempt bond issues from acute care hospitals and health systems (2000-2004).
  • Employed a logistic regression model to differentiate between variable and fixed rate debt issuance.

Main Results:

Related Experiment Videos

  • Bond insurance positively correlated with variable rate debt; callable features showed a negative association.
  • Hospitals in certificate-of-need states with higher case mix acuity, profit margins, debt service coverage, and lower debt levels favored variable rate debt.

    • Conclusions:

    • Financially strong hospitals utilize variable rate debt to lower capital costs.
    • Improved education by investment bankers on interest rate savings may also contribute to this trend.