Despite financial pressures from a consolidating healthcare market and uncertain government funding, Connecticut Children’s Medical Center is determined to remain independent, its leader says.
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Despite financial pressures from a consolidating healthcare market and uncertain government funding, Connecticut Children's Medical Center is determined to remain independent, its leader says.
Connecticut Children's CEO Jim Shmerling disclosed in a recent interview that CCMC's board of directors earlier this year rejected a proposed merger with Yale New Haven Health that would have created the U.S.' eighth-largest children's hospital.
The problem for CCMC's board, Shmerling said, was that the newly created hospital would have been a Yale affiliate, meaning Connecticut Children's would have lost its independent governance.
“There was a strong belief that [CCMC] should remain independent and self-governing,” Shmerling said.
Cynthia Sparer, executive director of Yale New Haven Children's Hospital, confirmed that the merger talks had been tabled in January and that governance structure had been a main sticking point.
“While certainly we were disappointed we didn't achieve a goal we set out to achieve, that doesn't prevent us from continuing to work together and also not ruling out what might happen in the future,” Sparer said.
The two sides announced they were talking about a possible partnership last year. CCMC and Yale, which operate a joint cardiac program together and collaborate on other services, held several unsuccessful rounds of affiliation talks in the past. The most recent deal talks fell apart in January.
“I think our respective boards agree that this is the great concept, it's the right thing to do,” Shmerling said. “Until we can develop a governance structure we can agree on, we're at an impasse.”
Now, Shmerling is on the hunt for other hospital partners and he said he prefers as many as possible.
CCMC already has varying arrangements with Hartford HealthCare, UConn, St. Mary's Hospital and Baystate Medical Center.
Shmerling said he doesn't want to be tied to working exclusively with any one system.
“We're trying to be Switzerland and partner with anyone who is caring for children,” he said.
He said there are many hospitals that want to outsource pediatrics or beef up their own departments, and it's becoming an increasingly competitive space, with CCMC finding itself competing for contracts against hospitals like Yale and Boston Children's.
Shmerling said he's met with most or all of the area players, and his message has been: “We want to partner and be your pediatric provider.”
His search comes amid financial pressure. CCMC ran $17.1 million deficits in both 2013 and 2014. Its had surpluses the last two years, but there is much funding uncertainty with the state budget.
Shmerling said CCMC is being conservative and preparing for a state funding cut.
