The PBGC has taken over the Lock Haven Hospital pension plan, Lock Haven, Pa. The pension plan would be unable to pay benefits when due and faced abandonment following the sale of substantially all the companys assets, according to a PBGC news release. The hospital was founded as a non-profit but sold in 2002 to Community Health Systems, a for-profit hospital chain based in Franklin, Tenn. The pension plan was not included in the sale. Following the sale, the non-profit group that had run the hospital sold its remaining assets and put most of the proceeds toward funding the pension plan.
According to PBGC estimates, the defined benefit plan is about 85% funded, with about $13.3 million in assets to cover about $15.6 million in liabilities. The agency expects to be responsible for the entire $2.3 million shortfall. PBGC became trustee of the plan Jan. 30.
Lynn Moon, the hospitals director of human resources, did not return a call by press time seeking comment.