Hospital Muni-Debt Issues Plunge This Year as Sector Struggles

Hospitals are shying away from the municipal-bond market this year, with long-term sales down 73% compared to the same period a year ago. That’s much more than the 18% decline in the overall market, embodying the challenges facing the sector.

There has been about $3.2 billion in long-term muni debt issued for hospitals this year, the lowest for the year-to-date period since at least 2012, according to data compiled by Bloomberg. For the comparable period last year the figure was around $11 billion.

Hospitals are coping with the pressures afflicting the overall muni market, like higher borrowing costs and an ...