Investment returns for not-for-profit hospitals and health systems rebounded in 2009 after a sharp dive in 2008, when credit markets faltered and the recession worsened, according to survey results from the Commonfund Institute, the research arm of the not-for-profit investment manager Commonfund.
Investment gains bounced back in '09, survey finds
Portfolios of healthcare organizations' assets—working capital, funded depreciation, endowment and foundation funds and other so-called separately treated assets—made an average annual return of 18.8% in 2009. That's not a full recovery from the prior year when the portfolios' return was negative 21.2%. The survey included 85 organizations, down from 143 organizations surveyed for 2008 returns. Organizations surveyed by e-mail reported assets as of Dec. 31, 2009.
For the organizations surveyed, the average annual return over the years 2007, 2008 and 2009 was negative 0.2%.
Portfolios do not include defined-benefit pension plan assets, which Commonfund reports separately. Defined-benefit pension plan assets reported an average annual return of 21.5% after dropping 26.3% the prior year.
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