CHICAGO -- The Illinois Health Facilities Authority plans to sell $100 million of taxable commercial paper backed by a pool of Medicaid receivables from hospitals and nursing homes in the state.

The program is the first commercial paper deal to use Medicaid receivables in a pooled approach that does not rely on the creditworthiness of individual pool members. Instead, the program uses the state's pledge and other credit enhancements to provide security for the paper, said John Dailey, chairman of the health authority.

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