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Home Health Services Company Lured Across River By State $$

by Hugh McQuaid | Jun 28, 2012 4:43pm
(1) Comment | Commenting has expired
Posted to: Business, Town News, East Hartford, Hartford, Health Care

Hugh McQuaid photo

Gov. Dannel P. Malloy

Gov. Dannel P. Malloy announced Thursday that home health services company CareCentrix will become the fifth company to participate in the First Five program as it relocates from East Hartford to Hartford.

Under the program, CareCentrix will receive a total of $24 million in state grants for creating 290 jobs over five years. The company will get one $12 million grant, if it retains its current 213 jobs for the five-year period, and another $12 million, if it adds close to 300 positions. CareCentrix is investing around $62 million in the project, according the governor’s office.

“This is a great day to be talking about American health care in so many, many ways,” Malloy said, referring to the Supreme Court ruling upholding the national health care reform law. “... The reality is that more Americans will in fact have the kind of coverage that will then turn to companies like CareCentrix to make sure that they’re providing the highest level of care at the best possible price.”

The company helps its customers manage and optimize home-based care. CareCentrix CEO Eric Reimer said the company had outgrown its East Hartford offices and said their decision to stay in Connecticut was due to the ‘First Five’ deal.

“I just want to be frank, without the governor’s program we wouldn’t be here today. We wouldn’t be able to retain these jobs and we certainly wouldn’t be able to grow these jobs,” Reimer said.

The company had considered relocating to Florida or Kansas, where it already has personnel, as well as one other state, which Reimer declined to name.

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posted by: perturbed | June 28, 2012  9:04pm


Three questions:

1) Since state employees have contributed ~$25M so far to their own health care trust fund, an irrevocable trust fund that by law can’t be used for anything except the contributors’ own health care, but that the State Treasurer has admitted isn’t in a trust fund at all but is in a general cash pool with a negative balance, does this mean Malloy might have paid CareCentrix with state employees’ own 3% wage contribution?

2) Does this mean SEIU gets more members and more dues?

3) Is this why SEIU isn’t complaining that their own state employee members’ wages that are supposed to be dedicated to a trust fund are instead going to fund the general operating expenses?