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Connecticut Post (Sunday) - - Business - Alex. Soule@ scni. com; 203- 842- 2545; @ ca­soul­man pschott@ scni. com; 203- 964- 2236; Twit­ter: @ paulschott

got to do.”

‘ An ef­fort to hold the line’

What La­m­ont can do will be lim­ited by a bud­get that is pro­jected by state Comptroller Kevin Lembo to run a $ 158 mil­lion sur­plus for the fis­cal year that ends next June be­fore hit­ting ma­jor deficits in coming years; and a Gen­eral As­sem­bly that did not back Mal­loy’s ini­tia­tives across the board.

La­m­ont said he will phase out Con­necti­cut’s

busi­ness en­tity tax that gen­er­ated $ 45 mil­lion in rev­enue in the 2017 fis­cal year, which amounts to only $ 125 a year but is ma­ligned by many busi­ness own­ers for its ap­pli­ca­tion re­gard­less of whether a com­pany turned a profit.

The in­com­ing gover­nor would also re­duce Con­necti­cut’s cap­i­tal stock tax — at 0.37 per­cent of a com­pany’s as­sets last year the high­est of 16 states that charge one, ac­cord­ing to the Tax Foun­da­tion — with­out say­ing by how much. Like New York, which is cur­rently phas­ing out its own cap­i­tal stock tax, Con­necti­cut levies the tax

only if the rev­enue would ex­ceed that it would col­lect from taxes on busi­ness in­come.

And La­m­ont would waive taxes on per­sonal prop­erty for busi­nesses with less than $ 10,000 in qual­i­fy­ing as­sets. The gover­nor- elect ac­knowl­edges the state would lose lit­tle rev­enue but main­tains it is a headache for small busi­nesses.

“We’re go­ing to hold the line on the in­come tax … ( and) I will re­duce the prop­erty tax, just enough to let your peo­ple know that we’re mak­ing an ef­fort to hold the line there,” La­m­ont said

dur­ing an Oct. 30 de­bate at Fox­woods Re­sort Casino. “I’m go­ing to be ruth­less when it comes to look­ing at our health care ex­penses, look­ing at pen­sion re­form, look­ing at the big- ticket items that al­low us to get this state go­ing again.”

‘ One step at a time’

Asked at a mid- Septem­ber de­bate in New Haven on his pol­icy re­gard­ing fi­nan­cial in­cen­tives for busi­nesses — a ma­jor leg of Mal­loy’s eco­nomic de­vel­op­ment ef­forts rang­ing from “First Five” grants for cor­po­ra­tions to Small Busi­ness Ex­press loans — La-

mont sug­gested Con­necti­cut will re­place hand­outs with high- touch en­gage­ment to land grow­ing com­pa­nies. His busi­ness ad­vi­sory team in­cludes fel­low Green­wich res­i­dent and for­mer Pep­sico CEO Indra Nooyi, who had been cred­ited with open­ing a chan­nel to the CEO of the in­for­ma­tion tech­nol­ogy out­sourc­ing com­pany In­fosys, which will re­ceive at least $ 14 mil­lion in in­cen­tives if it hits a tar­get of 1,000 jobs in Hart­ford.

With Mal­loy hav­ing mixed suc­cess with in­cen­tives to spur job growth — ma­jor vic­to­ries in­clude Char­ter Com­mu­ni­ca­tions

with my fa­ther. She was the one who re­ally con­nected with him, and she met many times with him and me. That re­la­tion­ship re­ally so­lid­i­fied the trust we have in the hospi­tal’s lead­er­ship.”

Fi­nan­cial pres­sures

Phi­lan­thropy’s im­por­tance to hos­pi­tals has grown as ma­jor reg­u­la­tory and tax changes in the past 10 years have strained spend­ing plans.

The 2010 Af­ford­able Care Act led to lower Medi­care pay­ments to hos­pi­tals, as an off­set­ting move to fi­nance the Med­ic­aid ex­pan­sion. En­su­ing re­im­burse­ment rates to treat the grow­ing ranks of Med­ic­aid pa­tients have cre­ated on­go­ing bud­get chal­lenges.

In the 2017 fis­cal year, Stam­ford Health’s re­im­burse­ment rate ran at 48 per­cent. Med­ic­aid- in­sured in­di­vid­u­als con­sti­tuted 16 per­cent of its pa­tient pop­u­la­tion.

For WCHN, the re­im­burse­ment level rate last year ran at 64 per­cent. Med­ic­aid pa­tients ac­counted for 16 per­cent of the to­tal.

Yale New Haven Health of­fi­cials were not able to im­me­di­ately pro­vide sta­tis­tics on their sys­tem’s Med­ic­aid re­im­burse­ment and par­tic­i­pa­tion rates.

Sep­a­rate from the ACA, the state in­tro­duced in 2012 a gross re­ceipts tax on hos­pi­tals’ net rev­enues. The levy was de­signed to help Con­necti­cut qual­ify for more fed­eral match­ing funds, but hos­pi­tals have re­ported only par­tial re­funds for their tax bills.

“Times are chang­ing, and re­im­burse­ments are not what they used to be,” Lin­hard said. “Pres­sures have grown from state and fed­eral gov­ern­ments. If we’re go­ing to build and bring­ing its head­quar­ters to Stam­ford — La­m­ont said he hopes to rely more on the power of per­sua­sion.

“We lead with a bribe, and it’s the wrong way to go,” La­m­ont said in midSeptem­ber at the New Haven de­bate. “The First Five pro­gram was a dis­as­ter for the state of Con­necti­cut, ( with) the gover­nor pick­ing and choos­ing. … You do it one step at a time go­ing for­ward: not bribes, not in­cen­tives, not give­aways, not herky- jerky tax pol­icy — con­sis­tency and re­li­a­bil­ity.” en­hance any­thing, we’re look­ing to the com­mu­nity to help make it hap­pen.”

Long- term strat­egy

Hos­pi­tals’ need for pri­vate fund­ing likely will not di­min­ish any­time soon.

Yale New Haven Hospi­tal would need be­tween $ 120 mil­lion and $ 150 mil­lion next year just to cover cap­i­tal ex­pen­di­tures, in­clud­ing fa­cil­ity main­te­nance, es­ti­mates Kevin Walsh, the hospi­tal’s vice pres­i­dent of de­vel­op­ment.

“Phil­an­thropic sup­port is crit­i­cal now,” Walsh said. “And it’s go­ing to be even more im­por­tant as we go for­ward,”

Two years af­ter open­ing its flag­ship build­ing, Stam­ford Health’s next fundrais­ing ini­tia­tive could fo­cus on pro­grams and ser­vices such as those at the Ben­nett Cancer Cen­ter or oth­ers sup­port­ing women and chil­dren’s care and nurs­ing ed­u­ca­tion.

“We built this won­der­ful ves­sel, with the new build­ing, and now we have to sup­port the pro­grams, peo­ple and ser­vices in it,” Rien­deau said. “We want to take a broader view of what in­no­va­tion means in health care.”

At the same time, hos­pi­tals gar­ner many small do­na­tions. WCHN pa­tients and fam­i­lies of pa­tients fre­quently give con­tri­bu­tions be­tween $ 25 and

$ 100, as ex­pres­sions of grat­i­tude for their care, ac­cord­ing to Lin­hard.

“You don’t have to give a $ 10,000 or $ 100,000 gift to make a dif­fer­ence,” Lin­hard said. “We love that we have donors at ev­ery level. It all makes a dif­fer­ence in help­ing us to make ma­jor in­vest­ments and serve our com­mu­ni­ties.”

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