Closing Pension Plan Could Cost Munroe Regional Medical Center $20M

Munroe Regional Medical Center in Ocala, Fla., plans to terminate its pension plan later this year, but doing so will cost between $10 million and $20 million, according to a Star-Banner report.

In April, Munroe Regional's board of trustees chose Naples, Fla.-based Health Management Associates to lease the 421-bed hospital under a 40-year agreement. PwC, which manages Munroe Regional's pension plan, recently told the board that transferring the pension after the lease agreement begins would cost more than doing so beforehand.

Currently, Munroe Regional's pension plan is fully funded, according to the report. Closing out the plan means all employees would still be paid amounts owed, but the hospital would still have to incur costs associated with transferring assets. No details were given on when or if Munroe Regional would follow through with the plan.

More Articles on Hospitals and Pension Plans:

Top 7 Strategies for Non-Profit Hospitals to Mitigate Pension Plan Risk: Moody's
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S&P: Pensions Still Burden Non-Profit Hospitals

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