Pensions Still a Burden on U.S. Nonprofit Hospitals

Pension costs will remain a burden on U.S. nonprofit hospitals for years to come, despite improvements in the investments used to finance their retirement systems, Reuters reports, citing Standard & Poor’s Ratings Services.

S&P blames the drag partly on low discount rates, used to gauge the size of pension plans’ obligations—the lower the rate, the larger the obligation. Another worry is that state and local governments will have less money to spend on many projects, as their own pension gaps force them to put more money in their retirement coffers.