Hartford Business Journal

HARTFORDBUSINESS.COM | JANUARY 12, 2026 11 5 TO WATCH Inflection Point Sullivan to lead CT Children's through its next growth phase same prescription as before, just with maybe a higher degree of urgency." Steuber said at least one large Class A office tower could be converted, in whole or in part, to residential use — an idea that has long-drawn skepticism as developers have focused on smaller, more easily adaptable buildings. "We shouldn't shy away from looking at Class A buildings," Steuber said, pointing to the successful conversion of a 26-story former bank headquarters at 777 Main St. more than a decade ago. A $50 million "Greyfields" program approved by lawmakers as part of the fiscal 2026-27 budget could make such conversions more feasible. The initiative is designed to subsidize rede- velopment of large, largely vacant and obsolete office and retail properties. Steuber noted he helped design the still-untapped program during his time at the state Department of Economic and Community Development. "So, this is a problem that I've been thinking about for quite some time before I had any inkling of coming over here (CRDA)," he said. "It was certainly, in part, designed with the office vacancy problem in Hartford, as well as other parts of the state, in mind." Shannon Sullivan, the new president and CEO of Connecticut Children's, says her top priorities are financial stability and investing in staff. Contributed Photo By David Krechevsky davidk@hartfordbusiness.com S hannon Sullivan vividly remem- bers when Connecticut Chil- dren's Medical Center opened in Hartford 29 years ago. A native of Longmeadow, Massa- chusetts, Sullivan was a high school senior when the Hartford-based children's hospital debuted in 1996, she said during a recent interview. "I remember reading about it in the paper, and here we are 30 years later," Sullivan said. On Jan. 12, she took over as presi- dent and CEO of Connecticut Chil- dren's, succeeding James Shmerling, who retired at the end of last year after a decade in the role. Sullivan comes to Hartford from Rhode Island, where she most recently served as president and chief operating officer of Care New England's Women and Infants Hospital in Providence. Decade of change Sullivan arrives at what could be considered an inflection point for Connecticut Children's. When Shmerling took over a decade ago, the hospital had an undersized, aging facility and had endured several years of multimil- lion-dollar budget deficits. Since then, Connecticut Chil- dren's has broadened its reach and improved its payer mix. Over the past several years, it has opened more than 30 satellite locations in Connecticut, Massachusetts and New York, increasing its core patient base by 60% to 1.2 million. The hospital has pushed deeper into Fairfield County, attracting more privately insured families, strengthening its financial position and raising its profile in a region with significant donor potential. Hospital operating revenue grew from $380.4 million in fiscal 2015 to $547.6 million in fiscal 2024. More recently, Connecticut Chil- dren's on Dec. 4 opened its new eight-story, $326 million clinical tower, which includes several special- ties and departments, such as a new Fetal Care Center and a 50-bed neonatal intensive care unit. In October, the hospital also joined the Golisano Children's Alliance, a growing national affiliation of chil- dren's hospitals, and received a $50 million donation pledge from alliance founder Tom Golisano, the billionaire founder of Paychex Inc. Top priorities Asked about her priorities, Sullivan pointed first to financial stability and investing in staff. On the financial front, she said hospital administrators will complete a fiscal year 2025 audit, reviewing "where the opportunities are" to improve performance. "We need to figure out some of those pieces," Sullivan said. "It's going to be really important for us moving forward to make sure that we have a strong operational and financial platform in order to care for children in the best possible way." According to Connecticut Chil- dren's fiscal 2024 audited financial statement, the medical center and its subsidiaries reported an operating deficit of $476,263, compared with a $12.7 million surplus in fiscal 2023. The loss was attributed to Connecticut Children's specialty group, which reported a $32.4 million operating loss in fiscal 2024, while the medical center itself posted a $31.9 million operating surplus. A central challenge for the care provider is government reimburse- ment. Medicaid patients account for 57% of the hospital's patient base, yet Connecticut Children's is reimbursed just 61 cents on the dollar for its care — a rate that has not changed in a decade. Sullivan said she plans to meet with state legislators and Gov. Ned Lamont to discuss reimburse- ment levels and the hospital's financial sustainability. She acknowledged, however, that reimbursement is "not just a one-way street," adding that hospitals must demonstrate how additional funding would be used. "We're going to make sure that we employ people in these ZIP codes," Sullivan said. "We're going to make sure that there are clinical ladders for our team members to be able to pull themselves out of different socioeco- nomic brackets and to be able to have long-term stability in this region." Sullivan added that she helped secure Medicaid rate increases for obstetrics and neonatology while working in Rhode Island, noting such efforts require "building relationships with your government." Sullivan said investing in staff is also a top priority. She said Connecticut Children's employees she has met — from physicians and nurses to food service and environ- mental staff — are on board with the organization's mission. Continued on next page SHANNON SULLIVAN President & CEO Connecticut Children's Medical Center Education: Bachelor's degree in social work, Providence College; master's in social work, clinical/ medical social work, Boston College; master's in healthcare leadership, Brown University Age: 48

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