WASHINGTON -- Federal regulators have revamped their proposal for overhauling the way Medicare reimburses capital costs to help hospitals that are highly leveraged with tax-exempt bonds avoid credit-quality problems under the new system.

The Health Care Financing Administration on Friday issued its final version of regulations governing the changeover, and those rules contain several new provisions designed to give many hospitals bigger capital payments than they would have received under the agency's original proposal. The new system is scheduled to go into effect Oct. 1.

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