Changes are coming for health care organizations that are borrowers with respect to municipal securities. The Financial Data Transparency Act of 2022 (FDTA) requires that certain federal financial regulatory agencies, including the SEC, establish new technical data standards for the reporting of financial information. The new data standards – which could take effect as early as 2027 – are expected to impact issuers of municipal securities and conduit borrowers, including hospitals and health systems, that currently report disclosure information to the Municipal Securities Rulemaking Board (MSRB) on the Electronic Municipal Market Access (EMMA) system.
In the March/April 2025 issue of AHLA’s Health Law Connections, Chapman partners Mary Kimura and Hillary Phelps provide a summary of the FDTA and the joint standards proposed in August 2024, including reactions from municipal securities industry participants and a look ahead at the next stages of the rulemaking process. They also explore potential impacts of the new data standards on health care organizations and systems.
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