Hartford Business Journal

20 Hartford Business Journal • June 19, 2017 www.HartfordBusiness.com OPINION & COMMENTARY EDITORIAL Time to consider UConn Health merger L ike perennials blooming in the spring and leaves changing color in October, UConn Health held to its annual time-honored tradition last week of reporting a deficit. UConn Health officials are projecting a nearly $60 million budget shortfall for the fiscal year that begins July 1, one of the worst deficits the institution has faced in a while. The worsening fiscal outlook comes despite state taxpayers having invested hundreds of mil- lions of dollars in recent years to overhaul UConn Health's campus — upgrades that were supposedly going to make the state's only public hospital system more financially viable. This isn't the first time UConn Health, which includes the state's medical and dental schools, has been unable to balance its budget. It's often in the red and needs taxpayer support to make ends meet. But with Connecticut once again facing its own fiscal crisis, it's time to re-think our funding strategy. And the best bet may be to put up a for sale sign and force the hospital into a merger or some other type of meaningful money-saving affiliation. Ideally, UConn Health could use a partner that would be willing to cover the increas- ing costs of its unfunded retiree health and pension benefits, a major deficit driver. According to the CT Mirror, UConn Health's expenses are on pace to increase $39 million next year, of which $27 million can be attributed to increased retiree benefits. Projected state budget cuts and rolling over a $20 million deficit from the current fiscal year are other deficit contributors. Rising pension costs have been a head- ache for many Connecticut hospitals in recent years. UConn's situation is exac- erbated by the fact that state lawmakers for years failed to save money for future retirees, creating a huge unfunded liability now coming home to roost (UConn Health employees work for the state). Many recent hospital mergers that have occurred in Connecticut included the acquirer willing to cover the acquiree's debt, pension and other liabilities. We are cognizant that a merger would be complicated. UConn Health attempted to join Hartford Hospital nearly a decade ago but the deal fell through. UConn is a research hospital, which by its very nature makes it more expensive to run than a regular acute-care medical provider. We wouldn't want to derail its future role in making discoveries that could cure deadly diseases or improve the health of patients, but the status quo is no longer financially sustainable. Any merger would require consent from the state legislature making it a political football. A core concern, particularly among Democrats, would likely be that UConn Health workers are state employees and would be threatened with reduced benefits and/or wages if they were kicked off the government's payroll. That, however, is the economic reality of the real world and any merger should include the transfer of ownership of UConn Health workers. That was a key issue during UConn's merger talks with Hartford Hospital back in 2008 and 2009. That deal proposed to maintain Health Center workers' status as state employ- ees, and required the state to pay the difference between their fringe benefits costs and those of other hospital employees. That wouldn't be an acceptable outcome this time around, although any efforts to deunionize workers would likely set off a legal fight. That deal was also complicated by the fact that UConn Health needed millions of dollars in upgrades at the time that lawmakers were unwilling to fund. Those invest- ments ($255 million to be exact), however, have now been made and UConn is sitting pretty with a new patient tower and outpatient center, among other upgrades. The big question is how much debt would a suitor be willing to absorb? Hospital mergers have become the norm in Connecticut over the last decade and UConn Health could attract interested buyers. Hartford Hospital's parent company — Hartford HealthCare — would probably come back to the bargaining table, although there would be some anti-trust concerns there. Trinity Health - New England is now a formidable player in the market looking to expand its footprint. It owns St. Francis Hospital and Medical Center and St. Mary's Hospital in Waterbury, among others. Yale New Haven Health System too has been look- ing to grow its Greater Hartford presence. Let's see if we can make a deal and bring some fiscal stability to UConn Health, and in turn, the state of Connecticut. n TALKING POINTS Someone is out to get you. Count on it. By John Graham M ost of us work at finding ways to do a better job, advance in a career, and become more successful. That's com- mendable, but we may differ on how to go about getting there. While most are straightforward, tackling one challenge after another, others do it differently and their actions leave marks that affect our success. Most of us can't choose our co-work- ers, team members, or business associ- ates. Nonetheless, we can avoid being blindsided by those who, often unin- tentionally, would throw us off course. Here is what to look for: Those who act too quickly. In school, they raced to get a seat in the front row and their hands always went up first when the teacher asked a question, even though they didn't know the answer. Some never stop raising their hand first. They're enthusias- tic, but they can cause trouble by not tak- ing time to think things through. Those who lack flexibility. We admire those who stand by their beliefs and don't give in even when it could help to bend a little. Yet, rigidity can cre- ate roadblocks that thwart discussion and lead to hostility. Those who rush to get it done. They plough right in, ignor- ing even the most obvious red flags. They never ask ques- tions, refuse help, and never think through tasks before moving forward. They leave a trail of trouble behind them for others to clean up. Those who never quite finish. Whatever the task, they drag it out (usually accompanied by questionable excuses). Then, when the dead- line passes, they want more time to "check one more thing," while co-workers are left waiting. Those who want to do too much. Smart and capable, they're up for any challenge that's handed to them. You can count on them to do a good job and do it quickly. Without knowing it, they can also create dissention among team members who resent having a "star" in their midst. Those who always misunderstand. It seems as if not getting something the way it was intended is a character trait with some people. No matter how clear the instructions or how detailed the discussion, someone always comes up with, "But I thought … ." It isn't so much that they see things differently as it is "reinterpreting" them so they're com- fortable with them. Those who are brain pickers. "I'm kind of stuck. Could you give me some ideas?" they say. You can count on it. Some are just plain lazy, but others, lacking self-confidence, feel free to take from others, and add nothing of their own. Those who are unendingly late. Wheth- er it's getting to meetings or completing assign- ments, some people are always late. It doesn't appear to bother them that others depend on them and that being out of step is disruptive. Those who make up their own rules. In the past, there may have been more room for outliers, those who "march to a different drummer," or "do their own thing." But not so much in an interdependent and collaborative work environment that depends on commu- nication, coordination and cooperation. Those who set their own limits. When- ever they're asked to take on an assignment, meet a critical deadline, or make some accom- modation, they always have too much on their plate, while others find time to get the job done. Their plates may be too small for the job. Those who are always right. They may not know the right questions to ask, but they never run short on having the right answers. The more you attempt to con - vince them otherwise, the more they feel cor- nered and the more they resist. Those who always see flaws. Uncovering flaws is a useful skill for improving the qual- ity of our work. But some flaw-finding can be self-serving when it's used to improve one's position by embarrassing or attacking others. Those who second-guess everyone and everything. No matter how hard you try to draw them into a discussion, they sit by silently while the members of the team wrestle with the issues. It's then that the sec- ond-guessers come to life to let it be known why it won't work, why it will fail. While most of those we encounter through- out our careers are helpful and supportive, there are others whose actions can cause us trouble. So, what's the best way to avoid being blindsided and hurt? Stay alert and remember, someone is out to get you. Count on it. n John Graham of GrahamComm is a mar- keting and sales strategy consultant and business writer. John Graham ▶ ▶ Most of us can't choose our co-workers, team members, or business associates. Nonetheless, we can avoid being blindsided by those who, often unintentionally, would throw us off course. Send Us Your Letters The Hartford Business Journal welcomes letters to the editor and guest commentaries for our opinion pages. Electronic submissions are preferred and welcome at: editor@HartfordBusiness.com. ▶ ▶ The best bet may be to put up a for sale sign and force the hospital into a merger or some other type of meaningful money- saving affiliation.

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