Sutter Health bonds delayed, union pleased

Perhaps due to political pressure from opposition groups, a state agency charged with authorizing tax-exempt bond issues has postponed considering a proposed $958 million bond issue by Sutter Health until next year. The delay was lauded by the Service Employees International Union-United Healthcare West, which often goes head-to-head with Sutter. The group says that it want to push Sutter hard to use the bond proceeds to lower its prices, a legal requirement included in the bond terms. The California Health Facilities Financing Authority (CHFFA), which authorizes such bonds, is said to be focused on making sure consumers get some benefits from the proceeds as well. For its part Sutter is, let us say, annoyed, arguing that CHFFA postponed its vote solely to take in "misinformation" from the SEIU. Suggesting that the health system may be the victim of a double standard, a Sutter spokesperson noted that Adventist Health System West won approval for its bonds at the same hearing that delayed their issue.

Get more information on the bond issue:
- read this Sacramento Business Journal piece
- read a statement from the California Healthcare Coalition, which supports the delay
- check out the SEIU release

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