Pension Funding Remains An Uphill Climb For The U.S. Not-For-Profit Health Care Sector Apr 11

  • ID: 1753980
  • April 2011
  • Region: United States
  • Standard & Poors
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  • Adventist Hlth Sys/West
  • Duke Univ Hlth Sys
  • LifeBridge Health, Inc.
  • Memorial Hlth Sys
  • Orlando Hlth
  • MORE

Many not-for-profit hospitals and health systems continue to grapple with pension costs and will likely face increased pension funding needs in the next several years. Low discount rates -- the rate plan sponsors use to measure the benefit obligation -- have resulted in lower funding levels despite a rebound in asset values. While overall credit quality in the sector was stable in 2010 and should remain so this year, high pension contributions could crowd out other cash needs like capital projects and force more health systems to change their plan design. We believe that hospitals' desire to make pension plan changes in order to reduce costs is occurring within a broader context of revenue pressure and a broad-based review of...

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Research Type: Commentary
Criteria articles describe the thought process and methodology Standard & Poor's analysts use in determining ratings. These commentary pieces discuss both the quantitative (economic and financial) and qualitative (business analysis and caliber of management) aspects of the analysis, as well as legal issues.

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- Orlando Hlth
- CDH/Delnor Hlth Sys d/b/a Cadence Hlth & Affiliates
- Rush Univ Med Ctr Obligated Grp
- Trinity Health Credit Group
- Johns Hopkins Hlth Sys Obligated Grp
- Fairview Hlth Svcs
- Duke Univ Hlth Sys
- Crozer Chester Med Ctr
- St. Joseph Hlth Sys
- Adventist Hlth Sys/West
- Cook Children's Med Ctr, Inc.
- Shands Teaching Hosp & Clinics
- Dignity Hlth
- Mercy Health
- Memorial Hlth Sys
- Cape Cod Hlthcare Oblig Group
- Scripps Hlth
- University of Pennsylvania Hlth Sys
- Univ of Pittsburgh Med Ctr
- Catholic Health Initiatives
- Memorial Hermann Hlthcare Sys
- Mission Hlth Inc
- PeaceHealth
- MedStar Hlth, Inc.
- Palmetto Hlth
- Essentia Hlth Obligated Grp
- Gundersen Lutheran
- Ascension Health Alliance
- Mountain States Hlth Alliance
- Verity Hlth Sys
- Poudre Vy Hlth Sys
- McLeod Regl Med Ctr
- Edward Hosp & Hlth Services Corp
- Christiana Care Hlth Svcs
- H. Lee Moffitt Cancer Ctr & Research Inst Inc
- LifeBridge Health, Inc.

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