Pursuant to St. 1968, c. 614 s. 10, as amended by St. 2011, c. 9, s. 21, the Executive Office for Administration and Finance proposes a new regulation, 801 CMR 56, clarifying the process and requirements for approval by the Secretary of Administration and Finance (“A&F Secretary”) of financing for nonprofit community hospitals and nonprofit community health centers.
The Nonprofit Community Hospitals and Nonprofit Community Health Centers Moral Obligation Bond Financing program authorizes MassDevelopment to issue “moral obligation bonds” as a source of financing for community hospitals and community health centers. Under the program, MassDevelopment establishes Community Health Capital Reserve Funds to secure bonds issued for these entities. If a hospital or health center defaults on a bond payment, the reserve funds will be used to make payment. If the borrower does not replenish the reserve fund, the Commonwealth will have the power to intercept payments that would otherwise have been made to the hospital or health center. The regulations provide a process for implementing the program, including and HHS approval of each bond issue by the Secretary of Administration and Finance and the Secretary of Health and Human Services under specified criteria.
Copies of the proposed regulation can be found at A&F’s website at http://www.mass.gov/anf/moralobligationreg
Written comments on the proposed regulation will be accepted between April 11, 2014 and May 16, 2014. Please send comments to:
First Deputy General Counsel
Massachusetts Executive Office for Administration and Finance
State House, Room 373
Boston, MA 02133