Transcript University of Connecticut Health Center & The Town of

The University of Connecticut Health Center: A Time of
Transformation & Affiliation, A Vision of Excellence
Cato T. Laurencin, M.D., Ph.D.
September 23, 2009
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I am pleased to address the Town of Farmington’s Business
and Breakfast meeting and to be asked to provide an update
on the Health Center’s activities and plans.
As you all are aware, a little over 12 months ago I stepped
into a role containing an inherent set of challenges;
challenges I prefer to characterize as opportunities that bode
well for our mutual future.
I look forward to a long and productive relationship with the
Town of Farmington, its business community and the entire
Farmington Valley.
Farmington and the Farmington Valley are extremely
important to us. More than 800 of our employees live in the
Farmington Valley and valley residents accounted for nearly
147,000 visits to the UCHC.
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UCHC’S Primary Mission:
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Education and Research
3 Schools:
◦ Medical School (346 students)
◦ Dental School (170 students)
◦ Graduate School in bio-medical sciences (344students)
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Research: More than $90M per year of innovative research is conducted and
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Residency Training: For 675 residents (medical and dental) per year who
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John Dempsey Hospital (JDH) and UConn Medical Group (UMG),
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UCHC represents
discoveries are translated into advances in patient care, e.g. cancer vaccines,
hormone therapies for Osteoporosis, new materials for Dental Implants, and
Stem Cell research
train in local hospitals
the multi-specialty faculty practice, are sites for learning and represent key
elements in attracting talented faculty who want to teach, do research and
provide patient care.
½ of the University of Connecticut, ½ of its budget, ½ of
its employees and ½ of its research portfolio. We contribute to the health and
vitality of the state’s flagship university.
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We are in the midst of significant transformation
◦ UCONN 21st Century projects are literally changing the
landscape by
 Upgrading our education and teaching areas:
Massey Auditorium
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Construction of the Cell & Genome Sciences Building
◦ Scheduled to open in the summer of 2010
Schematic Design Rendering by Goody Clancy Architects
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 Enhancing our environment
Landscape rendering by Flad & Associates
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Clinical growth has required relocation of our
Dermatology program to new space at 21 South Rd.
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John Dempsey Hospital Emergency
Department Renovations
◦ Construction work is currently ongoing with a
target completion date of 12/1/2009.
But - no amount of renovation can hide the
fact that JDH is a 30 yr old facility with no
major upgrades since opening. It is
undersized and inadequate to accommodate
today’s evolving standards of care and
technologies, privacy concerns and patient/
provider expectations.
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1. John Dempsey Hospital (JDH) is a hospital that was never
built as planned. The contractual, obligated fringe
benefits are higher than market and the payor/ service
mix is particularly challenging.
116 of 224 beds are low reimbursement, specialty beds
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NICU
Newborn
High-risk maternity
Psychiatry
Corrections
Fewer than half of our licensed beds are available for
medical/surgical care.
The now aging physical plant was originally planned to have
400 beds.
2. JDH has been running a $22.2 million deficit annually
and this is expected to increase.
3. This is why we seek state support and the partnership
with Hartford HealthCare.
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It should be noted that only 22.5% of the Health Center budget is
state supported.77.5% comes from other revenues (clinical, tuition,
research, philanthropy.)
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Securing the Future of UCHC and Transforming Health
Education, Research and Clinical Care in the Region
DATE
February 2007
June 2007
March 2008
ACTION
UCHC proposes a new hospital
General Assembly requires a needs-based analysis of the plan; retains the Connecticut
Academy of Science & Engineering (CASE)
CASE issues its report to the General Assembly
May 2008
General Assembly requires that UCHC implement CASE plan
June 2008
UCHC issues Solicitation of Interest (SOI)
August 2008
UCHC receives Expressions of Interest (EOI)/affiliation proposals
November 2008
UCHC announces a principal partnership with Hartford Hospital and creation of the
Connecticut Health Collaborative
December 2008
UCHC announces plans for a new hospital
January 2009
March 2009
Currently
CASE issues its monitoring report to the General Assembly
UCHC presents replacement hospital and proposed partnership with Hartford Healthcare to
the General Assembly
Discussions are ongoing with members of the Executive and Legislative branches
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Affiliation discussions continue with Hartford Hospital
and elected officials.
This region is prime to become a “Medical
Destination.”
◦ The goal is to provide a clinical trial base to attract significant
industry interest
◦ In so doing, awareness is raised about the good things being
done in the Farmington medical community
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We’ve created a Research and Education Collaborative
linking UConn, Hartford HealthCare Corporation, St.
Francis Hospital and Medical Center, The Hospital of
Central CT and CT Children’s Medical Center, thereby
raising the quality of healthcare in the area.
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We will create an economic powerhouse with
UCHC, and therefore the Town of Farmington, at
its core.
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Economic drivers exist in the areas of biomedical
research, including stem cells, and medical devices
The Connecticut Academy of Science & Engineering
(CASE) study was very clear that we have room to grow
in this area.
The one area in our state growing jobs is healthcare.
The UConn/ Hartford Hospital proposal provides a
chance to enhance our health care system and an
opportunity to turn around our struggling economy
by generating new jobs, increasing personal income,
adding research funding and providing a significant
net economic impact to the state and region.
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The partnership would create one University
Hospital on 2 campuses (Hartford and Farmington)
with no increase in licensed beds in the region.
This calls for the replacement of JDH on the
Farmington Campus with the state contributing
$475M in bond funds to fund the hospital. The
hospital remains a state asset. The state would
also pay the fringe benefit differential for state
employees of JDH.
Once vacated, the old JDH would be repurposed for
research/ lab/ academic use.
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Hartford Hospital would contribute financially to
UCHC over the next 10 years, including:
◦ $60 M for the Schools of Medicine and Dental Medicine
◦ $65 M in working capital (transition dollars) and tech
transfer
◦ Up to $100M in research support.
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The continued presence of a hospital and continued access to
essential healthcare services for Farmington residents
Clinical programs are protected at the Farmington campus
◦ One short-term acute care hospital maintained at each site in Farmington and
in Hartford
◦ Any changes in services at Farmington site require approval by the University
Hospital Board, where UConn is represented
◦ Most changes would require review and approval by the Office of Health Care
Access.
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The state gains predictable financial stability at its academic
hospital , with Hartford HealthCare absorbing the financial risk
going forward.
The academic health center moves into top tier status among the
nation’s medical schools.
Expansion of class size, mitigating the state’s upcoming shortage
of doctors and dentists.
Not only are 1,300 state jobs at JDH secure, but by 2040 18,000
new jobs will be created, generating over $3 billion annually in
new personal income. (Verified in report by the CT Center for Economic Analysis)
The operations of UCHC and University Hospital will generate
over $1.3 billion in new spending each year and over $1.9 billion
in new tax revenue by 2035.
This amounts to a return on the $475M investment of over
$900 M.
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Connecticut is caught in an economic “perfect storm.” The
traditional economic engines – defense, manufacturing, financeare areas losing jobs.
Between 2/2008 and 2/2009, CT lost over 50,000 jobs, a
number equal to the population of New London and Farmington.
The question becomes whether CT is poised to participate in a
recovery that will build a better long-term future for our citizens.
The health services sector, including the biosciences, is the only
area of state economy to experience job growth in the last year.
We know that every $1M in NIH sponsored research generates
approximately 18 jobs.
As we look to the future, immediate and long term, it is clear that
the healthcare sector, biomedical research and UCHC have the
potential to be a means to economic recovery in the short term
and a major building block in the state’s long term economic
future. The UCHC is the mechanism for that to occur.
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We’re developing a vision of School of Medicine
(SOM) to be in the top 30 nationally.
The plan is to catapult the SOM from the 2nd
smallest academic medical center hospital to one of
the largest.
To achieve this we need to grow our research portfolio
from $93 million to $300 million. This requires
significant resources and space.
This ties back to the Hospital Affiliation discussion,
since the affiliation will allow an increase in class size
in both the School of Medicine and the School of
Dental Medicine. This will help with replacement of
aging practitioners in the state.
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1. I am both a realist and an optimist
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As a realist I recognize that these are tough times and we
must make difficult decisions
However, the optimist in me knows that our vision is
great and our opportunities are even greater
2. I look forward to working with each of you to
achieve our vision.
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