Financial Times FT.com

US hospitals may have to buy back $8bn in debt

By Rebecca Knight in Boston and Nicole Bullock in New York

Published: October 29 2008 21:27 | Last updated: October 29 2008 21:27

US hospitals may be forced to buy back more than $8bn (£5bn, €2bn) of debt as a result of turmoil in the credit markets, adding to their burdens just as a weakening economy is draining resources.

The problem for the hospitals involves so-called variable rate demand notes and other securities that they have agreed to buy back in some cases.

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