Atrium Health Beats Pension Suit Over Governmental Exemption

North Carolina hospital system Atrium Health defeated a proposed class action claiming it underfunds its pension plan and evades legal obligations by wrongly claiming to be a governmental entity, after a ruling by the Middle District of North Carolina.

Atrium, which is formally known as the Charlotte-Mecklenburg Hospital Authority, was established under the North Carolina Hospital Authorities Act, is run by publicly-appointed commissioners, and has government-like powers and obligations, Judge Thomas D. Schroeder of the U.S. District Court for the Middle District of North Carolina held. Atrium can therefore run its pension plan as a governmental plan exempt from the ...