List date(s) this work was published or aired.
Sept. 16, 2012
Provide a brief synopsis of the story or stories, including any significant findings.
Seven years after Roanoke-based Carilion Clinic borrowed money to expand its flagship hospital, the nonprofit hospital system is still tallying how much it lost in a series of complex financial transactions related to the $308 million in tax-exempt bonds it issued on Dec. 14, 2005. In court papers, the losses were pegged at “many millions of dollars.” The decision has continued to wreak havoc on Carilion’s financial performance and forced the organization to refinance its bonds to try to repair the damage. Carilion blames the Wall Street firms it hired to facilitate the loan and advised Carilion to structure the bonds as auction rate securities.
Explain types of documents, data or Internet resources used. Were FOI or public records act requests required? How did this affect the work?
This was a story built on documents. I found the story when I came across the lawsuit filed in federal court. While I had been suspicious of some of the losses attributed to bonds on the annual audited financial report, the lawsuit gave me the push and the direction to dig into those losses. This story could not have been told without going back through several years of bond prospectuses and audited financial statements for Carilion.
Explain types of human sources used.
Some very smart and helpful college professors with expertise on the legal and the bond issues guided me through the reporting. While some are quoted, many were used on background to help ensure the analysis was correct.
Results:
N/A
Follow-up (if any). Have you run a correction or clarification on the report or has anyone come forward to challenge its accuracy? If so, please explain.
N/A
Advice to other journalists planning a similar story or project.
Be patient and find experts who can help unravel a very complex topic.