Minimizing projected liability under FAS No. 106.

Although the Statement of Financial Accounting Standards No. 106: Employers' Accounting for Postretirement Benefits Other Than Pensions requires that the anticipated cost of providing medical services to an employee following his or her retirement be accrued while the individual is employed, hospitals that provide their retirees with medical services are in a position to minimize their projected liability. The values of actual expenditures to be incurred for providing medical services should be valued in a manner consistent with the recording of other expenditures.