The University of Connecticut Health Center will be running a $55.3 million deficit in fiscal year 2025 and the state is looking to hire a consultant to develop a strategic vision for the future of its clinical operations.
The state’s only public hospital and medical school will work collaboratively with all parties to assess the healthcare marketplace in Connecticut and identify potential opportunities, including its clinical, research, academic and public service mission.
It’s unclear how much money will be spent on the consulting contract, but state officials said it’s a recognition of the pivotal role that UConn Health plays in the state.
Gov. Ned Lamont said he wants to encourage a rigorous evaluation of all options that will help UConn Health thrive, continue to provide the highest quality care, educate the next generation of Connecticut’s healthcare providers, maintain their important role in the healthcare safety net, and advance cutting-edge research and innovation, while also achieving greater fiscal independence over the long term.
“UConn Health is one of the leading medical centers in the northeast, and the research and developments being performed there are transforming modern healthcare,” Lamont said. “The formation of this strategic vision will help this institution successfully thrive and lead in this field for another generation.”
State operating support to UConn Health for FY24 is $202.6 million, or 13.3% of its total revenues. Of this support from the state, $70 million is allocated to the clinical enterprise, or 7% of total clinical revenues (clinical revenues are expected to reach $895 million in FY24, which is an approximately 240% increase since FY14). UConn Health has implemented extensive cost savings and strategic growth initiatives totaling more than $121 million over the last six years.
Nevertheless, a healthcare investment consulting firm will be engaged to evaluate the market and capitalize on this achievement, as well as to broaden the center’s research, academic, and public service endeavors.
University of Connecticut President Radenka Maric said the university has been getting new research awards to the tune of $84.2 million in the past year.
“I am proud of the dramatic strides UConn Health has made over the past several years to grow revenues and improve our fiscal outlook,” Maric said. “We are confident we can meet the state’s objective to operate with increasing efficiency while continuing to successfully carry out our core missions. We will work cooperatively to inform the consultant’s work, and we are always open to ways to enhance and grow the enterprise while also ensuring long-term fiscal sustainability.”
UConn Health said the state will choose the consulting firm.
