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Sutter Health, the 25-hospital, Sacramento-based system, is issuing $500 million in bonds to help finance the construction of three replacement hospitals. The bonds are expected to price next week. The proceeds will allow Sutter to reimburse itself for prior capital expenditures. (Kutscher, 1/6)

Three Connecticut hospitals have sued the federal government over its 2013 decision to reduce Medicare payments for inpatient treatments, joining several hundred other hospitals across the country that have already challenged the move. (Pierson, 1/6)

Officials with Indiana University Health Arnett in Lafayette say a USB flash drive containing information from more than 29,000 patients has gone missing. The hospital says the unencrypted drive disappeared Nov. 20 from its emergency department. Norma Gilbert, the hospital's director of quality and clinical excellence, said the hospital system hadn't received any patient reports of fraudulent activity as of Tuesday. (1/6)