Hartford Business Journal

6 Hartford Business Journal • June 19, 2017 www.HartfordBusiness.com TOP STORY UConn Health finds itself fiscally ill If you build it, patients and research funding will come. Well, that was the way it was supposed to work for the UConn Health Center, where the state has spent hundreds of millions of dollars in recent years renovating and constructing new buildings for the hospital, medical school and research staff in an effort to inject fiscal health into the vast Farmington complex. But heading into the second full year that many of the new facil- ities have been open, university officials say UConn Health's fiscal picture is the worst it has been in a long time — and it is going to continue to deteriorate unless major changes are made. School officials estimate the university faces a $59.4 million shortfall in the fiscal year that begins July 1 — of which $20 million comes from carrying over a budget deficit from the current fiscal year, $14 million is from one-time costs associated with the rollout of a new electronic medical records system, $12 million comes from a cut in state funding and $11 million comes from increased health and retirement costs. "Every year it gets harder and harder," Andrew Agwunobi, UConn Health's chief executive officer, recently told the univer- sity's governing board. "They tell me this is probably the worst financial outlook that they have seen over the last, potentially, a decade. … I want to underscore that." – Jacqueline Rabe Thomas | CT Mirror TECHNOLOGY Report: SS&C in early talks seeking buyout Windsor financial software provider SS&C Technologies Holdings Inc. has reached out to private equity firms to explore a possible buy- out, according to a report by Bloomberg. Citing people familiar with the matter, the news outlet indicated the talks are preliminary and that a possible holdup is the company's high valuation. SS&C's first quarter revenues and profits surged this year. The firm netted $48.1 million, up nearly seven-fold from the $7 million it recorded in the year-ago period, while revenues climbed 26 percent to $407.7 million. Company spokespersons Randi Haney and Jennifer Molgano did not return calls or emails seeking comment or confirmation of the report. The company had about 8,000 employees at the end of 2016, a year in which it recorded $1.5 billion in revenues, according to its annual report. INSURANCE Cigna takes stake in Calif. digital behavioral medicine firm Bloomfield health insurer Cigna is the lead investor in a $50 mil- lion fundraising round for a San Francisco-based digital behavioral medicine company, the companies announced. The amount of Cigna's individual investment in Omada Health was not disclosed. Cigna said it also is expanding its partnership with Omada by mak- ing the company's digital behavioral counseling services for predia- betes, heart disease and hypertension available at no cost to eligible Cigna customers. Omada said it's the first digital health provider to demonstrate results in helping patients prevent diabetes, stroke and heart disease over a two-year time horizon. HEALTH CARE 45 CT hospital execs top $1 million in salary, benefits Forty-five Connecticut hospital or hospital system executives earned combined salary and fringe benefits exceeding $1 million last fiscal year, according to new state data showing the 10 highest-paid officials in each category. Marna Borgstrom, president and CEO of Yale New Haven Health Services Corp. and Yale New Haven Hospital, led the state at $3.8 million, which includes a salary of $2.8 million and fringe benefits of $1 million, according to figures from the state Office of Health Care Access. She had a pay package worth $3.6 million in fiscal 2015. Tops among Hartford executives was Hartford HealthCare Corp. CEO Elliot Joseph at about $2.6 million, which includes a salary of $2.2 million. His fiscal 2015 pay package was $2.4 million. The state released the top 10 pay packages for each acute-care hos- pital and its respective parent corporation for the fiscal year ended Sept. 30, 2016. Yale New Haven Health Services Corp. had at least 10 people in the $1 million-plus category. Hartford HealthCare had eight people earning more than $1 million. At Trinity Health-New England Inc., parent company of St. Francis Hos- pital and Medical Center, President and CEO Christopher Dadlez topped the list at $1.8 million, which includes a $1.7 million salary. At Connecticut Children's Medical Center Corp., Dr. Fernando Ferrer, former chief physician executive of Connecticut Children's Specialty Group, topped the list at almost $1.5 million, including $1.2 million in salary. At UConn Health Center, Dr. Hanspaul Makkar, a Mohs surgeon and surgery chief of pediatric dermatology, topped the pay list at nearly $1.2 million, including $1 million in salary. ECONOMIC DEVELOPMENT Riverfront fireworks, arts festivities get private funding Riverfront Recapture's annual fireworks display will return this summer on July 8 after being snuffed out last year, thanks to private funding support. Mike Zaleski, CEO of Riverfront Recapture, said "numerous" unnamed companies and corporations "stepped up" to help fund the riverfront fire- works. The event website also says the newly branded "Summer in the City" program is providing support, though it didn't specify how. The event last year would have cost approximately $100,000, which the city and Riverfront Recapture typically shared. In addition, this year, Farmington-based United Technologies Corp. is providing an undisclosed amount of funding to help the Capital City brand and promote arts festivities as a "Summer in the City" program. The partnership between the city, UTC and the Greater Hartford Arts Council, which will manage the series, will pay for costs associ- ated with hosting a series of existing regional events. It will promote events through an online event calendar, community engagement campaign and neighborhood events, said Mayor Luke Bronin. Hartford's Propark acquires L.A. parking operator Hartford-based Propark Inc. has purchased a Los Angeles parking operator for an undisclosed sum, the company announced. Propark bought the operations of Express Park, which includes locations in Hollywood, Studio City, Santa Monica and Huntington Park, Propark's Chief Investment Officer David Schmid said. "This acquisition is part of Propark's growth strategy to purchase small to medium sized parking companies in a variety of markets across the country," Schmid said. Besides its corporate headquarters in Hartford, Propark has offic- es in New York, Texas, California and Boston. ECONOMY & LABOR GE CEO Jeff Immelt stepping down Jeff Immelt, who has led General Electric since 2001 and spear- headed the decision to move the company's headquarters from Fair- field to Boston, is stepping down. The company last week named John Flannery, the president and CEO of GE Healthcare, as the new CEO, effective Aug. 1. Immelt will remain as chairman through the end of this year. Immelt, 61, succeeded legendary CEO Jack Welch, who led the company for 20 years and vastly increased its size and scope. Immelt took over on Sept. 7, 2001, four days before the terrorist attacks. He also led the company through the 2008 financial crisis. BY THE NUMBERS $59.4M UConn Health's projected deficit for the coming fiscal year, driven by a current-year shortfall and rising retiree costs. $39.26 The average total hourly compensation and benefits cost per employee paid by the private sector in New England as of March. 16 The number of years Jeff Immelt was at the helm of General Electric. The CEO announced last week that he would step down. $50M The amount of an investment round, led by Cigna, in California-based digital behavioral health company Omada. TOP 5 MOST READ on HartfordBusiness.com ■ UConn bookstore being redesigned as 'social hub' ■ Jeff Immelt stepping down as CEO of GE ■ Report: SS&C in early talks seeking buyout ■ Centerplan: Talks at 'impasse' in Hartford ballpark case ■ DMV phasing in more secure drivers licenses, ID 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, CT Health Care Weekly www.HartfordBusiness.com/subscribe WEEK IN REVIEW P H O T O | H B J F I L E UConn Health CEO Andrew Agwunobi said retiree benefits costs are a fiscal threat.

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