Hartford Business Journal

6 Hartford Business Journal • October 12, 2015 www.HartfordBusiness.com TOP STORY Hospitals nix merger talks amid CT budget woes Putnam's Day Kimball Healthcare and Hartford Healthcare are suspending affiliation talks in the wake of state budget cuts, citing "the reckless slash- ing" of state Medicaid funds. In July, the two organizations announced an agreement to work towards a proposed affiliation. The immediate goal was to allow Hartford Healthcare to provide management support for select Day Kimball operations to help reduce its costs. "Given the magnitude of the state's cuts, it would be imprudent for us to consider moving forward with such a partnership at this time," James Blazar, Hartford Healthcare's senior vice president and chief strategy trans- formation officer, said last week. "This reckless slashing of Medicaid funding makes it difficult for [us] to create a path forward with Day Kimball Health- care right now. Both our organizations have just taken a gut punch." Hartford Healthcare said, based on state estimates, it would lose $55 million in the cuts and, as a result, needs to curtail major capital expenditures. Day Kimball expects the cuts to result in a $5.6-million loss in state funding this fiscal year. Gian-Carl Casa, spokesman for the state Office of Policy & Management, slammed the announcement as a tactic from hospital executives, saying that Hartford Healthcare recorded an $850 million surplus last fiscal year — which would be profit if the system weren't a nonprofit — and doesn't need to lash out at the state for making budget cuts. "This means their highly compensated executives are telling Connecticut taxpayers to supplement and subsidize the hospital corporation's high salaries and extraordinarily positive revenue margins," Casa said. "Hartford Healthcare is doing more than fine, and it's wrong for them to ask taxpayers to foot the bill." REAL ESTATE CT home sales up 20% in August The number of Connecticut single-family home sales rose 20.2 percent in August compared to last year, although prices of those homes dropped for the fifth month in a row, according to Boston real estate information provider The Warren Group. Connecticut had 3,295 home sales in August vs. 2,714 in August 2014. For the first eight months of the year, Connecticut had 19,097 home sales, a 13.5 percent increase compared to the first eight months of 2014. The median home price in August was $255,000, a 5.5 percent drop from the $269,900 that homes were going for in August 2014. EDUCATION CT grads with highest average salary aren't from Yale A new study from SmartAsset, a New York financial technology company, shows Connecticut's Ivy League university did not produce the graduates with the highest average salaries. That distinction goes to Fairfield University, a Je- suit college with almost 5,000 students. Fairfield graduates earned an average starting salary of $50,100, just edging out Yale grads who earned $50,000. The remaining top five schools in Connecti- cut and their average starting salaries were: University of Connecticut, $49,700; Quinnipiac University, $49,500; and, Trinity College, $47,800. Where Yale has the edge, according to SmartAsset, is its $41,085 in average scholarships and grants for an estimated annual cost of $62,076. Fairfield students received $22,155 towards an estimated annual cost of $57,030. Among the top five schools in Connecticut, UConn had the lowest scholarships and grants at $9,953. Of the top five schools, Hartford's Trinity has the highest tuition at $45,730. Yale is next at $42,300. Fairfield is third at $41,690 and Quinnipiac is fourth at $38,000. UConn, the only public university in the top five, is significantly lower than the other four at $11,242. SmartAsset says the average student loan debt is $28,400. GOVERNMENT, POLITICS & LAW CT tribes to reap 25% of Keno revenues Connecticut's march toward launching statewide Keno gambling took an- other step forward last week, as officials announced a finalized agreement with the state's two casino-operating tribes. Under the memorandum of understanding between the state, the Mashan- tucket Pequots and the Mohegans, the tribes will each receive 12.5 percent of gross-operating revenue from Keno. They will also be allowed to continue to operate Keno on their casino properties. That's the same percentage the tribes pay to the state out of their respec- tive slot-machine wins. The existing compact meant nearly $280 million in slot machine taxes in 2014. The legislature approved Keno this summer. IBM forms small-supplier partnership in Connecticut A new partnership has been formed to create the Connecticut Supplier Con- nection, an initiative designed to connect dozens of large corporations with sup- pliers that have under $50 million in revenues and fewer than 500 employees. IBM has selected The Business Council of Fairfield County as its first Regional Growth Partner. In that role, the Business Council will take the lead in develop- ing the Connecticut Supplier Connection as a statewide public-private initiative. Using an online standardized profile, thousands of small businesses across the state can be identified by the purchasing agents of large corporations whose combined spending power exceeds $150 billion a year. The Connecticut Supply Chain Roundtable will guide the Supplier Connec- tion initiative statewide. The roundtable will serve to elevate the awareness of Connecticut as a supply chain leader, provide benchmarking tools, and offer match-making sessions with suppliers and buyers. IBM is one of the more than 31 corporate buying members registered on Sup- plier Connection and are joined by AT&T, Citibank, Facebook, JPMorgan Chase & Co, Pfizer, and Pitney Bowes Inc., among many others. MANUFACTURING Kaman to buy Arizona aerospace firm Bloomfield aerospace manufacturer Kaman last week announced it has agreed to buy Timken Alcor Aerospace Technologies of Mesa, Ariz. Kaman said Timken offers organic growth opportunities in both helicopters and fixed-wing aircraft, along with a robust quality system and engineering ex- pertise. Timken has annual sales of $20 million. Financial terms of the deal were not disclosed. Kaman said the deal is ex- pected to close by the end of October. Barnes Group acquires Priamus Bristol-based Barnes Group has acquired Priamus, a Swiss company that specializes in the development of advanced process control systems for the plastic injection molding industry. Terms of the purchase weren't released. According to the announcement from Barnes, Priamus services plastic-in- jection molders in the medical, automotive, consumer goods, electronics and packaging markets. The business, which has approximately 40 employees, is headquartered in Schaffhausen, Switzerland. TRANSPORTATION Norwegian Air might re-establish BDL Trans-Atlantic service Published reports suggest Norwegian Air might re-establish dormant Trans- Atlantic service from Bradley International Airport. It's likelihood and success depends on support from the business community. Kevin Dillon, executive director of the Connecticut Airport Authority, said the CAA has been in ongoing talks with numerous airlines about re-establishing Trans-Atlantic flights and long-haul service to the West Coast. A standard package of incentives is being discussed with these airlines, Dil- lon said. Federal regulations say airports can only offer waived airport fees and marketing support. Incentives beyond that have to come from state and local governments, he said. According to a NBC report, Norwegian Air has its sights set on smaller airports outside large metropolitan areas for flights to and from Europe. The discount airline is promoting fares as low as $99 between New York and Norway. No deal has been signed yet. BY THE NUMBERS $276M The approximate value of an already contentious labor contract between UConn and 1,700 professors, according to the Daily Campus. $10.9M The amount of Keno revenue that the state would give to the Mashantucket Pequots and Mohegans in fiscal years 2016 and 2017, if the game performs to revenue expectations. 20.2% The increase in Connecticut home sales between Aug. 2014 and Aug. 2015, according to The Warren Group. $906 The amount of spending per party reported by Connecticut tourism destinations this summer, up 4 percent over last year. TOP 5 MOST READ on HartfordBusiness.com ■ Hospitals nix merger talks amid CT budget woes ■ W. Hartford tax preparer gets 10 days ■ Ex-Newington bank worker gets jail time ■ Kaman to buy Arizona aerospace firm ■ Manchester company wins $46 million Army contract STAY CONNECTED For breaking and daily Greater Hartford business news go to www.HartfordBusiness.com. HBJ on Twitter: @HartfordBiz HBJ on Facebook: www.facebook.com/HartfordBiz HBJ on LinkedIn: www.linkedin.com/company/ the-Hartford-Business-Journal Daily e-newsletters: HBJ Today, CT Morning Blend www.HartfordBusiness.com/subscribe Weekly e-newsletters: CT Green Guide Weekly www.HartfordBusiness.com/subscribe WEEK IN REVIEW Hartford Hospital's parent has called off an affiliation with Day Kimball Healthcare. P H O T O | H B J F I L E

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