2017 Top Considerations for Healthcare Organizations | Mercer

Not for Profit

Top Considerations for Not-For-Profit Healthcare Organizations for 2017

Many providers experienced a stable operating improvement in 2016 as patient volumes grew. These organizations still face the challenge of costs growing faster than revenues and potential post-electoral changes to the Affordable Care Act. As healthcare organizations begin 2017, we believe their investment priorities will include assessing and consolidating retirement plans and taking an enterprise-level view of investment strategy and risk management.

Mercer suggests that not-for-profit healthcare organizations consider taking the following actions in 2017, including:


Understand the implications of 403(b) lawsuits
 


Assess election impact


Integrate investment strategy and financial plans
 


Determine how M&A may affect investment strategy
 


Assess interest rate risk
 


Manage DB funded status volatility
 


Discuss home country bias vs. global diversification
 


Assess inflation-sensitive investments
 


Review governance structures


Adopt socially responsible investing principles

“As health care organizations plan for 2017, Mercer advocates a process that incorporates the need for investment assets to enhance balance sheet strength, fund capital investment needs, support operating budgets, and maintain debt covenants. Based on experience working with many institutions in the health care industry, we believe 10 areas should be the focus of attention in the year ahead.”

—  Michael Ancell, a senior consultant at Mercer and the national segment leader for health care investments

  Download the full article

Please fill in your details below to get Mercer's article 'Top Considerations for Not-For-Profit Healthcare Organizations for 2017'.
*Required Fields