NEPC’s 2017 Defined Benefit Trends Survey - Healthcare Highlights Infographic

October 24, 2017 / by NEPC

A quarter of the 2017 Corporate Defined Benefit Plan Trends Survey respondents represent healthcare organizations. Please see below for a healthcare survey subset, highlighting the industry’s use of DB strategies and their market outlook.

To download the Healthcare Highlights infographic, click here. Healthcare highlights infographic.jpg

Key takeaways include:

  • A slight uptick in the percentage of healthcare organizations using liability-driven investment (LDI) strategies, from 53% in 2016 to 56% in 2017. However, the percentage of healthcare companies considering LDI declined significantly, from 21% to 9% over the past year. More than half (62%) of healthcare respondents said they are waiting for interest rates to rise before implementing LDI.
  • An increase in healthcare companies issuing debt to improve funded status. In 2016, just 2% of healthcare respondents said they plan to issue debt; in 2017, that figure grew to 10%. All the respondents planning to issue debt reported funded status under 80%. Furthermore, the percentage of healthcare organizations that considered but rejected issuing debt rose from 37% in 2016 to 45% in 2017.
  • Continued optimism among healthcare organizations for a bullish stock market. Sixty-two percent of respondents reported feeling bullish over the next twelve months, on par with 2016 respondents (63%) and a substantial increase from 2015 (42%).

View the Corporate Defined Benefit Plan Trends Survey Announcement and Infographic here.

Topics: Healthcare, Infographic, Survey, Defined Benefit

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