It could be argued that the federal and state governments provide an implicit guarantee of hospital borrowings because revenue from Medicare and Medicaid patients is assumed to be guaranteed.

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The federal and state governments provide funding for Medicare and Medicaid, which are significant sources of revenue for hospitals. This funding can be seen as an implicit guarantee for hospital borrowings, as it ensures a steady stream of income that hospitals can rely on to repay debts.

It Could Be Argued That the Federal and State Governments