Hartford Business Journal

The expansion blueprint was first presented to the hospital's board of directors about three years ago, he said. "COVID detoured us and we were forced to delay this," Shmerling said. "We are still experiencing the ramifications of COVID, but we are at a point where it is now safe to proceed." In addition to the NICU and fetal care center, the proposed tower will also house new advanced cellular and gene therapy and bone marrow units. The gene therapy unit, Calhoun said, will allow children to stay in Hartford to receive more advanced cancer treatment. "We are now sending children to Boston, but with this new gene therapy unit, those same children will be able to get the care they need right here in Hartford," said Calhoun, who has been with CCMC for five years. "This will entail providing cancer-curing treatments, as well as other advanced cellular gene therapy in trial." With the expansion, CCMC will be able to perform about 12 bone marrow transplants a year, as opposed to sending those children to neighboring states as well, hospital officials said. The new tower will also create more space for behavioral health patients, allowing dozens of additional children to get care on a more timely basis, Calhoun said. "The demand will continue to increase and we have to start planning for that and expand now," he said. The pandemic spurred a children's mental health crisis, and from 2018 to 2021, CCMC said it experienced a 127% increase in behavioral health visits from patients who spent more than 72 hours in its emergency room. Connecticut Children's earlier this year outlined plans to build a new $9.7 million, 12-bed inpatient medical/ psychiatric unit at its main campus on Washington Street. That project is separate from the $280 million expansion plan. Financing growth Connecticut Children's is also adding to its Fairfield County footprint, where it currently has six different locations. Its flagship 16,000-square-foot outpatient center in Westport is expected to double in size and will soon be providing 20 specialty and ancillary services such as clinical support, occupational therapy and behavioral health, among others, hospital officials said. Connecticut Children's said it plans to pay for the $280 million project by utilizing a number of different funding opportunities including philanthropy and structured loans. It didn't provide further details. Connecticut Children's has performed well financially in recent years. In fiscal year 2020, the latest data available through the Office of Health Strategy, the not-for-profit hospital recorded an operating surplus of $27.1 million on $399 million in operating revenue. Its overall surplus was $41.3 million. Over a five-year period from 2016 to 2020, CCMC had a 10.25% overall profit margin, making it one of the best-performing hospitals in Connecticut, OHS data shows. 15 HARTFORDBUSINESS.COM | March 28, 2022 This is the site adjacent to Connecticut Children's Hartford campus where the new patient tower is planned. PHOTO | CONTRIBUTED CT Children's four-year financial snapshot Source: CT Office of Health Strategy Operating Revenue Operating margin FY 2017 FY 2018 FY 2019 FY 2020 $338,523,187 $359,626,405 $383,416,208 $399,046,034 $24,530,819 $25,997,404 $27,408,739 $27,100,196

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