Auction rate securities (ARSs) were introduced 1988 as a means to allow tax-exempt/municipal issuers to enjoy the advantage of short-term interest rates on long-term debt issues. The recent collapse in the ARS market caused many hospitals and healthcare systems to be confronted with a much higher cost of debt. In the context of the larger economic crisis facing our nation and healthcare systems, the problems in the ARS market may have only exacerbated the difficulties many U.S. hospitals face in accessing cash needed to fund essential capital projects.