Hartford Business Journal

8 Hartford Business Journal • June 17, 2019 • www.HartfordBusiness.com By Matt Pilon mpilon@hartfordbusiness.com L eaders of Connecticut's largest homecare businesses say the recently concluded legislative session leaves them feeling targeted by their own state government. It began in May, when lawmakers cemented enough votes for a mini- mum-wage increase and a paid family medical leave program. The third blow felt more personal — a provision in the state budget effec- tively banning non-compete contracts specifically in the homecare industry. It's a policy move some lawmakers and officials have pursued since 2017, partially as a reaction to a series of non-compete contract lawsuits filed by the state's largest homecare provider, though the ban could affect many others. "It was an extremely tumultuous session for us," said Julianne Roth, president of West Hartford-based Companions for Living LLC and chair of the Association of Connecticut Homecare Agencies. Homecare companies (often referred to as "agencies,") say the new laws could jeopardize their business model or lead to price hikes for clients, who are often elderly or disabled residents wanting to remain at home as long as possible, but in need of assistance with personal hygiene, cooking and house- hold chores (homecare companies don't provide medical care). It's a problem given Connecticut's ag- ing population and an ongoing work- force shortage in the industry, which employs more than 28,000 people here. The median annual cost in Connecti- cut for a full-time "homemaker" (a core type of homecare service) was $45,760 in 2015, according to Genworth Financial. Nationally, insurance only covers 13 percent of homecare spending, accord- ing to the Home Care Association of America, which means price increases would likely hit many clients directly. "Families can't afford it," said Robert Scandura, CEO of a Wethersfield- based Right at Home franchise, who worries that potential rate hikes will spur some families to hire untrained, unvetted help, which he said could lead to fraud or elder abuse. "It absolutely concerns me," he added. "It's going to pass the buck along. It hurts our elderly people." The new state policies come on top of a federal rule change four years ago that allowed more homecare workers to qualify for overtime pay, which in- creased prices for live-in companions nearly 13 percent, state data show. Homecare agencies say the non- compete ban, in particular, repre- sents a significant hurdle and an industry coalition scrambled to lobby against it. However, Gov. Ned Lamont supports the non-compete provision, his office said. Homecare providers say they are be- ing singled out as an industry. "Why not do it to real estate, technol- ogy, why not do it to any other compa- ny that provided training and invested money in its workers?" Scandura asked. The ban is seen as relatively unique, too. "As far as I know, it's the only industry-specific ban on non-compete and non-solicitation anywhere in the country," said Jay Kiley, owner of Syn- ergy Home Care in Fairfield. Competition covenants Homecare executives said the non- compete provision was snuck into the budget bill. But the language harkens back to a 2017 dispute between the largest homec- are provider in the state and the over- seer of the state Medicaid program, the Department of Social Services. FOCUS: Health Care Publicly traded pot company sees growth in CT Q&A talks with Kim Rivers, CEO of Trulieve Cannabis Corp., a Florida-based cannabis company. Q. Florida-based Trulieve Cannabis Corp. recently agreed to acquire for an undisclosed price The Healing Cor- ner Inc., a Bristol medical marijuana dispensary that opened in 2014. In addition to its first foray into Connecticut, the company, which al- ready reports dominant market share in Florida, acquired Life Essence in Massachusetts and Leef Industries in California. Why is this multi-state expansion happening now? A. Trulieve went public in Sept. 2018. The company entered the capital mar- ket with strategic plans to leverage the successful go-to-market strategy we were experiencing in Florida and build a national brand as U.S. states continue to adopt both medical and recreational marijuana. We are executing on our multi-state expansion in a thoughtful way with solid financial discipline and a focus on operations as we believe this is key to building a strong company founda- tion for continued growth. Q. What is Trulieve's interest in the Con- necticut market, which has far fewer registered medical marijuana patients (33,382) than Florida (over 148,000)? Are you banking on additional opportunity that could arise for dispensaries if Con- necticut lawmakers eventually legalize recreational marijuana? Or, are you interested in this market regardless of whether Connecticut legalizes? A. We see Connecticut as an exciting market for us even though it is not at the same level yet as we are in Florida. And, as we've stated, our expansion focus is in the Northeast. It's early still for Connecticut and with the limited dispensaries and physician network, we do not believe it has reached its full potential growth rate. We have spent a lot of time in Florida educating patients and doctors and that has helped with awareness and accep- tance as well as growth to where we are today. We believe this approach should also work well here in Connecticut in order to reach the population that would truly benefit from medical marijuana use. The legalization of recreational marijuana would certainly be advanta- geous and a welcomed outcome, but Trulieve's background is in medical marijuana and The Healing Corner Kim Rivers CEO of Trulieve Cannabis Corp. Under Fire Homecare providers say new state laws jeopardize their business model Robert Scandura, CEO of a Wethersfield-based Right at Home franchise, said the homecare industry is being unjustly singled out by lawmakers. PHOTO | HBJ FILE

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