Spring Break
UConn should look within for cheaper solutions to UCHC's problems
Bryan Carroll
Issue date: 2/16/09 Section: Commentary
It is not realistic to believe the John Dempsey Hospital will not need state assistance after the mergers between the UConn Health Center in Farmington and Hartford Hospital is complete.
I imagine the request from the UConn Health Center will want to cover outstanding costs not absorbed by the partnership. Building a new 250-bed hospital to replace the current John Dempsey facility could cost Connecticut's taxpayers easily $475 million. Other costs will include $13 million dollars in state payroll, fringe benefits, new equipment acquisitions and monetary concessions given to the unionized Health Center workers. Hartford Hospital would assume theoretical responsibility for the Health Center's finances (i.e. their debt), which means that the Health Center would not once again ask the state legislature to help pay off its debts. Even with that in mind, there are still costs, ones that not have been articulated in the collaboration agreement, that might fall to the state.
According to the Hartford Courant, "the proposed partnership is intended to financially stabilize the UConn Health Center, which has relied on cash infusions from the state legislature to stay afloat in recent years, and could significantly change the health care landscape in the region."
However, this partnership still does not provide enough security to allow for a "plan B" of sorts if the combined health care corporation does not turn a profit within three years. The same Courant article comments that, "Between that [labor costs] and the bonding costs for the new hospital, the state would pay $605 million dollars over 10 years. Hartford Hospital would spend between $425 million and $565 million in that time for academic support, technology, research and building a new patient tower in downtown Hartford."
The Health Center will probably still need cash donations from the state even after everything is squared away. For example, the merger requests that the state essentially pay for the fringe benefits of Health Center employees, including a full tuition waiver to the University of Connecticut. Moreover, UConn President Michael Hogan said some cost to taxpayers will be unavoidable and could not be reduced until the agreement is solidified.
I imagine the request from the UConn Health Center will want to cover outstanding costs not absorbed by the partnership. Building a new 250-bed hospital to replace the current John Dempsey facility could cost Connecticut's taxpayers easily $475 million. Other costs will include $13 million dollars in state payroll, fringe benefits, new equipment acquisitions and monetary concessions given to the unionized Health Center workers. Hartford Hospital would assume theoretical responsibility for the Health Center's finances (i.e. their debt), which means that the Health Center would not once again ask the state legislature to help pay off its debts. Even with that in mind, there are still costs, ones that not have been articulated in the collaboration agreement, that might fall to the state.
According to the Hartford Courant, "the proposed partnership is intended to financially stabilize the UConn Health Center, which has relied on cash infusions from the state legislature to stay afloat in recent years, and could significantly change the health care landscape in the region."
However, this partnership still does not provide enough security to allow for a "plan B" of sorts if the combined health care corporation does not turn a profit within three years. The same Courant article comments that, "Between that [labor costs] and the bonding costs for the new hospital, the state would pay $605 million dollars over 10 years. Hartford Hospital would spend between $425 million and $565 million in that time for academic support, technology, research and building a new patient tower in downtown Hartford."
The Health Center will probably still need cash donations from the state even after everything is squared away. For example, the merger requests that the state essentially pay for the fringe benefits of Health Center employees, including a full tuition waiver to the University of Connecticut. Moreover, UConn President Michael Hogan said some cost to taxpayers will be unavoidable and could not be reduced until the agreement is solidified.
Viewing Comments 1 - 1 of 1
Dr. Dave
posted 2/17/09 @ 10:04 AM EST
Who is this guy? Carroll -- PLEASE do some research! Stop writing about topics you know nothing about and embarrassing UConn. There is one after another from you -- all an advertisement to your lack of journalistic integrity. (Continued…)
Post a Comment