Hartford HealthCare Investment Advisors Resign Over Staff Layoffs, Outsourcing Operations – Hartford Courant
Five of the seven members of the group overseeing Hartford HealthCare’s $4.3 billion investment portfolio resigned abruptly last week after being told by management that investment staff had been laid off and their work would be carried out. by New York-based investment management giant Morgan Stanley.
David Roth, chair of the investment subcommittee of Hartford HealthCare’s finance committee, said he was shocked by the announcement made by senior management in a phone call Tuesday. He said he doesn’t know how many investment staff are affected by the decision.
“We recognize the council’s right to do so, but we don’t know why,” he said in a phone interview on Friday.
Hartford HealthCare said in a statement that it reorganized its investment department and related functions after “careful consideration” and with board approval to select a full-time investment firm to manage its portfolio.
“We are confident that Morgan Stanley, a respected multinational investment management and financial services firm that manages $6.5 trillion in client assets, will be a valuable partner,” said Hartford HealthCare.
The sprawling healthcare organization, which operates Hartford Hospital and six other acute care hospitals, behavioral health and physician organizations and other outlets, did not provide any details. Roth said management gave no reason for its decision.
He criticized the process in which the investment oversight subcommittee was not consulted or informed. He said he wrote to CEO Jeffrey Flaks on Thursday, telling him the process was unacceptable. He said he didn’t get an answer.
“We were not engaged, informed or consulted,” Roth said. “I can only guess at things, and I don’t want to do that.”
The Investment Sub-Committee, a group of volunteers, meets quarterly to review the performance of Hartford HealthCare’s investment portfolio, meets occasionally at other times, reviews market analysis and should become familiar with alternative assets and other details, Roth said.
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Roth, a trained lawyer who first became involved in finance with then-state treasurer Francisco Lopes Borges, who served from 1987 to 1993, was a member of the Hartford HealthCare Advisory Board for nine years and President for three years.
He said the decision to lay off staff is particularly difficult to understand because Hartford HealthCare is the top performing health care organization in the United States. Over the past five or six years, it has generated up to $750 million in additional revenue from its investments. , said Roth.
Hartford HealthCare said “the insight of its investment team has earned it national recognition from investment industry experts.”
“We are grateful for their many contributions to these colleagues and will support them through this transition, either into new roles within the organization or into positions outside of Hartford HealthCare,” he said. in a press release.
Roth, who has been active in numerous organizations including the Jewish Community Foundation, the Connecticut Children’s Medical Center, the Hartford Symphony Orchestra and the Bushnell Center for the Performing Arts, will have no shortage of civic activities.
“I have a million things going on,” he said.
Stephen Singer can be reached at [email protected]