Hartford Business Journal

12 | BOOK OF LISTS 2021 ECONOMIC FORECAST // HEALTH CARE CT hospitals will need to be resilient in 2021 Q&A talks to Vincent Capece Jr., president and CEO of Middlesex Health, about the 2021 outlook for the state's hospitals. How will COVID-19 impact Connecticut hospitals during the winter season? What do you predict will happen with the disease in the spring? Summer? Fall? Over the past several months, many communities throughout the U.S. and throughout Connecticut have been experiencing a resurgence of the COVID virus. This has clearly resulted in an increase in hospitalized COVID-19 patients. Many experts have predicted a second wave of COVID, which does appear to be developing. However, it's difficult, if not impossible, to predict how this second wave will play out, in terms of its intensity or duration. I do believe that, as an industry, and as an organization, we have learned much from our experience in dealing with the COVID virus over the past eight months, As a result, we are well prepared to effectively address the challenges that a second wave of the virus may present. You said in August that elective surgery volumes had returned to pre-pandemic levels. Is that still the case? What do you predict will happen in 2021? Middlesex Hospital's elective surgery volumes rebounded very quickly over the late spring and summer months to our pre-pandemic levels. We were continuing to see strong surgical volume into the fall. This same trend is being experienced at many hospitals in the state. I suspect that part of the reason is because many patients elected to defer surgical procedures during the height of the pandemic due to fear of contracting the virus. However, I also believe that those fears lessened over the summer as the prevalence of the virus waned, and many people have become more comfortable with the thought of seeking care at a hospital. Currently, we are expecting our elective surgical volume to remain strong throughout 2021. Our goal is to continue elective surgeries, even if we experience a COVID spike, unless we determine it is not safe to do so. Many hospitals are grappling with financial struggles from the pandemic. How will hospitals deal with deficits in 2021? Hospitals, and most businesses, in general, throughout the country have been negatively impacted by the effects of the COVID-19 virus. For hospitals, it was a double whammy of lost revenue, due to the stoppage of elective surgeries, combined with the incurrence of higher expenses associated with taking care of very sick, resource-intensive COVID-19 patients. Thankfully, the federal government provided significant financial support to most hospitals through the Cares Act. Middlesex received almost $30 million this past year through this legislation. The impact of the pandemic will continue to weigh on hospitals, as well as many other businesses for the foreseeable future. We believe our organization is well positioned to weather this storm, but there may be some hospitals that decide that joining a larger system is the only way to survive. What are some long-term effects of the pandemic on the state's healthcare system? In my opinion, the impact of the pandemic has definitely weakened the balance sheets of the hospital industry in the state. The government financial assistance we received has certainly helped to temper the impact of the pandemic. Whether this will have a long-term detrimental impact on the quality of care or the patient experience remains to be seen. Much will depend on the duration of the pandemic, and whether additional stimulus help will be provided by the federal and state governments. Hospitals have a history of being resilient organizations, and we always put the needs of our patients front and center. That's why I remain optimistic that our industry will ultimately recover from this horrible event and patients will not see a decline in the quality of their care or their overall experience. Pandemic spurs employee-benefits changes Q&A talks with Meg Galistinos, a partner and CT leader at employer consulting firm Mercer. How has the COVID-19 pandemic impacted employee benefits? What changes or trends should employers think about in 2021? In many cases, employees have cancelled or postponed elective procedures and preventative care this year due to the pandemic — meaning fewer claims in the short term. Although 2020 cost projections on average are likely to be favorable, employers are bracing for higher cost pressures in 2021 and beyond than in recent years. Employers can help mitigate future increased health costs by encouraging employees to stay healthy. Digital solutions are a huge trend in this area, as Mercer's National Survey of Employer Sponsored Health Plans shows: over a quarter of employer respondents (27%) are adding digital tools such as telemedicine to their benefits mix. Virtual care is here to stay, so employers are looking for ways to incorporate virtual care into their overall employee-benefits strategy. Additionally, employers should consider adding new benefits offerings to support and engage employees. Around one-fifth of respondents (22%) are adding voluntary benefits such as critical illness and supplemental insurance to cover hospital admission. Many (20%) are also improving and enhancing behavioral health resources. More than half of employers (59%) have provided managers with training on how to support employees' emotional and behavioral health since the onset of the pandemic, or are planning to do so. Lastly, we see 45% of responding employers permitting flexible schedules to meet employee caregiving responsibilities. What should CT employers expect in terms of rising healthcare costs in 2021? Employers in Connecticut are expecting moderate health benefit cost growth of 4.3% in 2021, in line with previous years, according to Mercer's latest National Survey of Employer-Sponsored Health Plans, which included 1,812 employers with 50 or more employees. Even amid economic uncertainty, only 18% of employers say they will take cost-savings measures in 2021 that shift more healthcare expenses to employees, such as raising deductibles or copays. To reduce spend in 2021, employers should continue to drive in-network utilization and evaluate high-quality, but narrower provider network options. Second, use data to understand and monitor what chronic conditions are driving cost in your organization claims, such as diabetes, asthma or heart disease. Focus attention on care management, revisit site of care strategy, and employee adherence to treatment for ongoing conditions. Many employers have seen their top lines come under pressure during the COVID-19 pandemic. What are the least harmful ways employers can cut costs without negatively impacting employee retention? Most employers report a very low loss in productivity from moving to a remote workforce, and employees once reluctant to work from home are doing so more effectively. This gives employers the opportunity to rethink "the office" and all of the costly amenities that used to come with it. Before leases are renewed, employers should rethink how the office will be used in the future and consider if a reduced footprint is warranted. What are some strategies employers should use in 2021 to retain and recruit top talent? The impact of the pandemic has fundamentally changed the way companies recruit, hire and retain talent. Employers need to shift how they source, interview and support the hiring of candidates — while also finding ways to keep top talent engaged and motivated in a virtual environment. Mercer's 2020 Global Talent Trends Study reveals that employees whose company is focused on employee health and well-being are four times more likely to be energized. Vincent Capece Jr. Meg Galistinos

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