Three weeks after Sacred Heart Hospital closed its doors and left Municipal Bond Investors Assurance Corp. on the hook for an almost $25 million bond default, another Pennsylvania hospital appears on the brink of creating similar headaches for MBIA.

Montgomery Hospital, also located in Norristown, Pa., "may be even worse in some facets than the one that just defaulted," said Richard Ciccarone, director of tax-exempt research at Kemper Securities Inc.

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