🔒Whelan leads Hospital for Special Care’s pension conversion

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Laurie Whelan admits the word “termination” is not usually associated with something positive. 

But at the Hospital for Special Care in New Britain, the term relates to a milestone not only for the institution, but for Whelan as the chief financial officer. 

Last September, the not-for-profit rehabilitation, long-term acute and chronic care hospital terminated its defined-benefit pension plan, paid off the pension fund's remaining balance, and distributed the assets to its employees, who were then able to endow their own retirements with an annuity. 

The move took about $20 million off the hospital's ledgers, Whelan said, allowing significant cost-savings now and in the future. It's an important move for a hospital, which, like the rest of the industry, faces declining government reimbursements putting pressure on the bottom line.

“It's a huge thing because you hear these stories about how companies' pension accounts are underfunded,” Whelan said. “Well, we were able to take care of our bottom line and those who work at the hospital at the same time.”

Whelan continued, “So take that $20 million in the pension account. We took this fully-funded pension fund, took it off the hospital's books and prioritized every employee with a purchased annuity. The employees got what they were due and there is no longer this huge liability on the books.”

Whalen said the task was arduous because the hospital had about 600 current and former workers on the pension plan. The transition was completed nearly a year ago. 

“It is not an easy thing to understand right away,” Whelan said. “So we did a lot of hand-holding to walk employees through the process.”

The hospital invited in every plan member, employees both past and present, and walked them through the transition step-by-step, she said. 

Overseeing the finances of a hospital, never mind a not-for-profit institution, is complicated enough, said Whelan, who also oversees information technology and health information management. 

“Every industry has its requirements one way or another, but hospitals are highly regulated,” Whelan said. “There are federal and state regulations that we have to be in compliance with and that is aside from all the HIPAA [confidentiality] regulations and sensitive employee and patient information.”

Whalen said as a not-for-profit hospital, she has to constantly monitor debt capacity and what rolls onto the balance sheets. She also has to balance constantly changing rules that have come from federal healthcare reform as well as fluctuating Medicaid reimbursement rates, which make a CFO's job more challenging.

“We have a brand new set of rules that we are constantly monitoring,” she said. 

Whalen has led numerous other systemwide initiatives over the past year including the implementation of an electronic medical record system.

But it's not all about balancing the books for the 48-year-old Whelan. There is a small matter of balancing both her feet on snow at her beloved Okemo Mountain Resort in Vermont, where she goes in her spare time.

She has a home near the mountain and can be found on favorite trails like Blind Faith and Stump Jumper just about every weekend during the winter snow season. 

“I love it up there,” she said. “Heading to Okemo is my relaxation. Vermont is my happy place.”

Her son, Patrick, has been her ski buddy for years, but he's attending Keene State College this fall. He will be a goalkeeper on the soccer team.  

Whelan has been the senior vice president and CFO at the Hospital for Special Care since 2003 after coming from Eastern Connecticut Health Network, where she was the vice president of finance and controller. She also relishes the combination of research, service and charity in her current position. 

One notable accomplishment in the charitable side is the establishment of a set of sports programs including creation of a nine-horse equestrian center in Middletown to supplement patients' rehabilitation. 

Whelan said the hospital has also been able to pay down “considerable” debt during her tenure. 

Whelan is also involved in a city of New Britain program that teaches students about finance at the college level. 

“I love the program. I love my job,” Whelan said. “I love the contributions I am able to make.” 

Laurie A. Whelan

The Basics

Name of organization: Hospital for
Special Care

Title: Senior Vice President Finance, CFO

Size of organization: $94 million in revenue

Education: Bachelor’s degree in accounting from Central Connecticut State University

Previous job(s): Vice President Finance, Eastern CT Health Network (ECHN); Finance Manager, Visiting Nurse and Home Care of Manchester; auditor for Coopers & Lybrand LLC 

On the job

Guiding business principle: Communication is critical.

Best way to keep your competitive edge: Stay connected with Industry and associations.

Best business decision: Terminating the hospital’s defined benefit pension plan 

Personal touch in your office: Pictures of my son

Personal side

City of residence: Windsor

Favorite way to relax: Cooking and heading to the mountains in Vermont

Hobbies: Skiing

Last vacation: South African safari and swimming in Devils Pool overlooking Victoria Falls, Zambia

Favorite movie: James Bond movies

The car you drive: Audi convertible

Currently reading: Enjoy reading cooking magazines including Bon Appetite and Food & Wine

Second choice career: Fashion industry, buyer for a clothing store

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