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Nonprofit systems boost investor relations

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As not-for-profit hospitals grow, they  increasingly resemble for-profits chains in trying to promote good relations with present and potential investors. In the case of nonprofits, that means good relations with the bond market.

As this Wall Street Journal story notes: “While they don’t have traditional shareholders, they {nonprofit hospitals} have long had bondholders through their borrowing in the $3.7 trillion municipal-bond market, which is open to nonprofits in addition to local governments.

“Consolidation, {especially} under way since the 2010 Affordable Care Act, has created new hospital giants. Some nonprofits say they increasingly are trying to sell themselves to investors as they expand and become more complex to ensure they get the best rates when they borrow. That means establishing investor-relations teams and hosting roadshows and investor calls.”

“Nonprofit bondholders say they are pleased with the shift toward greater openness, though some are pushing for more.”

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