Hartford Business Journal

HARTFORDBUSINESS.COM | MAY 27, 2024 19 IBM? Amazon? The answer is no. There's going to be multiple winners. Different quantum computers may solve different kinds of problems. We intend to be one of the winners." Smets said the company's aim is to eventually go public, but it will consider all options as opportunities arise. 'Leading hub' Quantum Circuits is one of the faces of Connecticut's broader attempts to create a quantum tech- nology business corridor. The effort — dubbed Quan- tumCT — includes the participation of various partners, including Yale, UConn, AdvanceCT, the state Depart- ment of Economic and Community Development, Connecticut Business & Industry Association, among others. Leaders from those organi- zations met in New Haven earlier this month to discuss the potential for quantum technology to bolster many of Connecitcut's key industries, including research and development, bioscience, health care and insurance. New Haven Mayor Justin Elicker said it's hard to predict the impact companies like Quantum Circuits will have, but the potential is nearly limitless. Michael Crair, Yale University vice provost for research and professor of neuroscience and ophthalmology and visual science, said quantum mechanics and computing can: create alternatives for GPS capabilities if and when satellites are disabled or interrupted; measure the efficacy of pharma- ceutical drugs without screening; mimic human proteins for developing medicines and treatments; and predict future events in the financial or insurance industries. Josh Geballe, senior associate provost for entrepre- neurship and innova- tion at Yale University and managing director of Yale Ventures, said Quantum Circuits is one of the most innovative companies in its field and has been successful attracting capital and talent to New Haven. "This type of university collabora- tion with startups and industry is at the core of the QuantumCT initiative to continue to establish Connecticut as a leading hub for quantum innova- tion and impact," Geballe said. Quantum Circuits' 50-employee staff includes mostly Ph.D.s. Josh Geballe Justin Elicker Michael Crair On Life Support? State policymakers say for-profit hospital ownership model isn't dead, but reforms needed By David Krechevsky davidk@hartfordbusiness.com E ven with Prospect Medical Holdings' growing financial problems, state legislators say they aren't ready to prohibit the for-profit hospital ownership model in Connecticut. Since 2016, when it finalized deals totaling $355 million, the for-profit Los Angeles-based healthcare services company Prospect Medical Hold- ings has owned Waterbury Hospital and the two facilities that make up Eastern Connecticut Health Network (ECHN) — Manchester Memorial and Rockville General hospitals. Of the state's 27 acute-care hospi- tals, these three are the only facilities owned by a for-profit company. Waterbury Hospital in particular was in dire financial distress at the time it was acquired, and nearly eight years later it still faces a shaky future as Prospect has descended into massive debt, owing more than $100 million to public and private entities, including $67 million in taxes to the state. In fiscal year 2023, Prospect reported a $66.1 million operating loss and $82.9 million overall loss, according to records it filed with the state. Its financial difficulties expanded to critical levels last year following Manchester Memorial Hospital is owned by Los Angeles-based Prospect Medical Holdings, which is the only for-profit hospital operator in the state. It has come under scrutiny for its shaky finances and following a major cyberattack last fall. PHOTO | SHAHRZAD RASEKH/CT MIRROR a cyberattack that affected opera- tions at all three hospitals for weeks, and are among the reasons Yale New Haven Health (YNHH) wants to be let out of its contract to buy Prospect's facilities. In 2022, YNHH announced a deal with Prospect to acquire the three hospitals for $435 million. It has since sought to reduce the purchase price, given the revelations about the financial difficulties, but negotiations have stalled. Earlier this month, YNHH filed a lawsuit in Hartford Superior Court asking to void the deal, charging that Prospect breached the sale contract by defaulting on rent and tax liabili- ties, allowing its facilities to deterio- rate, mismanaging assets, "driving away" physicians and vendors, and engaging in "a pattern of irresponsible financial practices." The on-again, off-again deal between Prospect and YNHH also focused new attention on the state's Certificate of Need (CON) regulatory review process, which took the Office of Health Strategy (OHS) nearly two years to complete, before it approved the sale. GROWING DEBT A glance at the debt owed in Connecticut by Prospect Medical Holdings: State of Connecticut: $67 million in taxes, though the state may forgive $12 million Physicians & vendors: More than $40 million City of Waterbury: $10.5 million in taxes Connecticut Hospital Association: $1.75 million

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