HEALTH CARE - Crain`s Detroit Business
Transcription
HEALTH CARE - Crain`s Detroit Business
DETROIT BUSINESS MAIN 08-11-08 A 1 CDB 8/8/2008 5:54 PM Page 1 ® www.crainsdetroit.com Vol. 24, No. 32 AUGUST 11 – 17, 2008 $2 a copy; $59 a year ©Entire contents copyright 2008 by Crain Communications Inc. All rights reserved THIS JUST IN Auto supplier plants work around Olympics in Beijing Locally based auto suppliers with factories in the Beijing area are making some temporary changes for the 2008 Olympics. Van Buren Townshipbased Visteon Corp. halted production at a climate control products plant in Beijing Aug. 4-7 and shuttered its Yanfeng Visteon Beijing facility on Friday. That plant will reopen Aug. 18. Visteon spokesman Jim Fisher said the company is following the production schedules of its customers and was not asked to close by the Chinese government. Troy-based Delphi Corp. said the company’s plants in Beijing have not been affected by the Olympics. But because of Olympicrelated road closures and traffic reductions, the supplier has had to reroute and consolidate its parts shipments, according to Lindsey Williams, corporate restructuring, financial communications, labor and manufacturing spokesman for Delphi. “It’s been strictly some logistical changes,” Williams said. Auburn Hills-based BorgWarner Inc. said a company plant in Beijing was expected to be closed from last Friday through this Saturday. “The Chinese government suggested we do this to improve traffic conditions in Beijing,” Dave Peterson, BorgWarner manager of global branding and media relations told Crain’s in an e-mail. “Our facility made a plan back in April (as many other companies did) to shut down during the Olympics.” Peterson added that because this closure was planned, it would not affect August sales figures. He also noted this type of a shutdown was not unusual, as many companies have summer shutdowns. — Ryan Beene NEWSPAPER See This Just In, Page 2 Storms cost utilities $48M DTE, Consumers earnings take 2Q jolt BY AMY LANE CAPITOL CORRESPONDENT LANSING — June storms that knocked out electricity to more than 760,000 customers of Michigan’s two largest utilities hit the electricity providers with a combined cost of some $48 million to restore power. Detroit Edison Co. spent $36 million when storms struck in early June, while Consumers Energy Co. spent at least $12 million, company officials said last week. The costs bit into second-quarter earnings for the utilities’ parent compaPSC studies nies and are another imresponse, pact from the series of Page 32. thunderstorms that crossed Michigan’s lower peninsula and knocked out power to homes and businesses. Storm-response costs reduced DTE Energy Co.’s second-quarter earnings by about $20 million, compared with a $13 million PROBE See Storms, Page 32 PHOTO COURTESY OF DTE ENERGY Repair costs for storms this year have hammered utilities. Where’s the cash? Born for a mission Exec’s childhood in foster care drives push for clinic Mistaken donor still waiting for money BY SHERRI BEGIN BY TOM HENDERSON CRAIN’S DETROIT BUSINESS CRAIN’S DETROIT BUSINESS im McElya didn’t always talk much about his childhood. But the chairman of Cooper-Standard Automotive has reason to now. Left on the doorstep of the Salvation Army in West Chester, Pa., when he was just 6 weeks old, McElya has made it his mission to help raise $1 million to open a medical clinic for homeless and uninsured children and their mothers. Cooper-Standard and its employees have chipped in $150,000. McElya and his team have raised another $250,000 through donations from the supplier’s private equity owners, its vendors and peers, including Lear Corp., BorgWarner Inc., Continental Inc., Excel Polymers, Marimba Automotive, GKN Sinter Metals, Yazaki North America Inc., Deloitte & Touche L.L.P., Ernst & Young L.L.P., Foley & Lardner L.L.P., Watson Wyatt Worldwide and in-kind or product support from IBM Corp. and Microsoft Corp. “My mother couldn’t support me and my older sister,” said McElya, who grew up in nearly a dozen foster homes with families who depended on assistance from safety net organizations such as pantries and the Livonia business owner Ross Bates Jr. hopes that with Mayor Kwame Kilpatrick’s legal defense fund running on empty, there’s enough money left to make good on a promise to return a donation of $1,500 he said he made after being told the money would go to a youth organization. Ross is president of Advanced Air Services Inc., a heating and air conditioning contractor that was listed on an IRS form filed in July as having made a donation of $1,500 on May 14 to the mayor’s Detroit Justice Fund. But when contacted by Should Mayor a Detroit Free Press re- Kwame porter last month, Bates Kilpatrick denied he was a support- resign? Page 30. er of the mayor. On July 16, Chris Garrett, a Washington-based member of the mayor’s legal team, said the fund was returning Bates’ money as well as $3,000 donated by S.A. Restaurants Inc. Its listed address, 20771 W. Eight Mile Road, is occupied by a topless bar, the Penthouse Club. See McElya, Page 31 See Fund, Page 29 J Jim McElya, chairman of Cooper-Standard Automotive, is helping raise $1 million to open a clinic for homeless and uninsured children and their mothers. HEALTH CARE REACTION Crain’s honors industry heroes, Page 11 DETROIT BUSINESS MAIN 08-11-08 A 2 CDB 8/8/2008 5:46 PM Page 2 Page 1 CRAIN’S DETROIT BUSINESS THIS JUST IN ■ From Page 1 Database for cancer care Blue Cross Blue Shield of Michigan is working with more than 180 oncologists in eight physician groups in Southeast Michigan and three other groups in the state to gather quality data to improve care for cancer patients in Michigan. With Blue Cross funding, the oncologists are submitting information to a database set up by the American Society of Clinical Oncology to help physicians identify what works best in cancer care. The groups also will be eligible to receive additional incentive payments from Blue Cross for participating and implementing improvements that lead to improved quality, coordination and efficiency in treating cancer patients. Michigan’s oncologists treat an estimated 16,000 cancer patients annually, one of the largest numbers of any state participating in the data collection. The eight area groups are: University of Michigan Health System, Faculty Group Practice, Ann Arbor; United Physicians, Bingham Farms; United Oakwood Providers, Dearborn; Henry Ford Medical Group, Detroit; Oncology Physician Resource and Quality Partners of Michigan, Royal Oak; St. John HealthPartners, Warren; Oakland Physician Network Services, Waterford Township. — Jay Greene Dart leases Sears facility Sterling Heights-based real estate company and luxury residential property manager Dart Properties II L.L.C. has leased the former Sears Holdings Corp. customer appliance repair center and hardware store on Mound Road for a warehouse and office. The 35,000-square-foot building south of 15 Mile Road, which has stood vacant since early 2006, was sold in December for $1.1 million to The Macomb Group, a supplier and distributor of pipe and fittings. The Macomb Group had originally planned to expand into the site. Instead, the company’s real estate entity, Flint Acquisitions L.L.C., changed its plans and offered a lease this summer to Dart. Real estate broker Grubb & Ellis represented The Macomb Group in the deal. Dart’s representative was Colliers International in Southfield. — Chad Halcom Papa Joe’s to open in Novi Papa Joe’s will open its metro Detroit store in Novi as part of the reconfigured retail development 12 Mile Crossing at Fountainwalk. The lease was signed last week for a 30,000-square-foot store, said Tony Curtis, a partner in the venture, Papa Joe’s Novi L.L.C. It will include a 10,000-square-foot mezzanine to be used for wine-tasting and entrances facing 12 Mile Road and the courtyard of the open-air retail center. CB Richard Ellis, Southfield, brokered the deal. — Daniel Duggan French vodka to be distributed in area After navigating a myriad of applications and forms, East Lansing-based RGI Brands L.L.C. co-CEOs Jared Rapp and Moti Goldring have brought Dragon Bleu, a premium vodka distilled in Grande Champagne, France, to Michigan and will base its North American headquarters in Bloomfield Hills. “Importing alcohol is so heavily regulated that you even have to apply to apply for label approval,” Rapp said. RGI Brands is relying on local businesses such as Ann Arbor-based Brett Mountain Photography for photo work, Birmingham-based Direct Media Concepts for graphic design, Evans Distribution Systems in Melvindale for logistical support and is storing its inventory at Central Detroit Warehouse, also in Melvindale. — Nathan Skid Mayor’s aide goes to DTE Al Fields, who served Kwame Kilpatrick in a variety of key posts including deputy COO for special projects and Fusion Center director, has left the city to return to DTE Energy Corp. as manager of economic development. Fields was credited with successfully coordinating city of Detroit efforts with the private sector in preparation for Super Bowl XL in 2006. He previously was a vice president at Comerica/Manufacturers Bank. — Robert Ankeny August 11, 2008 CRAIN’S SEEKS BEST MANAGED NONPROFITS This year has seen continued challenges in the nonprofit arena that have included changes in United Way funding in addition to a weak economy. Therefore, this year’s Best Managed Nonprofit Contest will continue to look at nonprofits that have taken specific steps to improve operations and delivery of services. We are looking at the following categories: 䡲 Collaborations, including mergers. 䡲 Finding ways to do more with less. 䡲 Strategies for diversifying funding. 䡲 Launches of new programs that help the organization better meet objectives. Please focus on only one of the above in your application. As always, documentation of results is important. Applications for the contest are due Sept. 17. Finalists in this year’s contest will be interviewed in person by judges the morning of Dec. 2. Applicants for the award must be a 501(c)(3) with headquarters in Wayne, Washtenaw, Oakland, Macomb or Livingston counties. Each application must include a completed entry form, a copy of the nonprofit’s most recent audited financial statements and a copy of the nonprofit’s most recent IRS Form 990. Previous first-place winners are not eligible; neither are hospitals, HMOs, medical clinics, business and professional organizations, schools, churches or foundations. The winning nonprofits will be profiled in the Dec. 22 issue, receive a cash award, a special “bestmanaged” logo from Crain’s for use in promotional material, and will receive recognition at the Crain’s Newsmaker of the Year lunch in February. For a copy of the application form, please send an e-mail request to [email protected] or visit www.crainsdetroit.com/nominate. For more information, call (313) 446-0329. Within each of us is the ability to inspire others. To expand horizons. To lead. At Northwood University, we know leadership is a quality that isn’t simply taught, it’s instilled. It requires a faculty who are role models. Men and women who are successful entrepreneurs and executives – who have directed the course of companies in many industries. It demands a relevant curriculum that goes beyond textbook learning with real world case studies, group projects, and small interactive classes that teach you how to motivate others. If you have what it takes to be a leader, shouldn’t you get your master’s degree at Northwood University? “ “ 800.MBA.9000 www.northwood.edu My experience at DeVos redefined leadership for me and exponentially elevated my ability to inspire others. Fadi Baradihi Senior Vice President and General Sales Manager HantzGroup DETROIT BUSINESS MAIN 08-11-08 A 3 CDB 8/8/2008 4:55 PM Page 1 CRAIN’S DETROIT BUSINESS August 11, 2008 Page 3 Heart care staffing debated 24-7 not critical, some doctors say BY JAY GREENE CRAIN’S DETROIT BUSINESS Cardiologists at several hospitals in Southeast Michigan have raised questions about the suggestion made last week by the Detroit Medical Center that having an on-site cardiology team around the clock at two of its hospitals is the magic bullet to significantly improve the quality of care of heart attack patients. Several area hospitals, including Henry Ford Hospital in Detroit and William Beaumont Hospitals in Royal Oak, considered and rejected hiring on-site cardiologists because they were able to reduce potentially lifesaving “door-to-balloon” procedure times without spending additional funds to staff their cardiac catheterization lab 24 hours a day, seven days a week. Considered a gold standard of heart attack care, door-to-balloon time refers to the number of minutes it takes for a patient who enters the hospital with chest pain symptoms until a cardiologist opens an artery and begins an emergency angioplasty. Dr. Aaron Kugelmass, Henry Ford’s director of the cardiac catheterization lab, said the hospital looked into staffing a cardiologist around the clock but decided against it. On-call cardiologists are required to be at the hospital within 30 minutes. “Having an onKugelmass site cardiologist is the least-effective way to optimize door-to-balloon time,” said Kugelmass. “It is one factor, but not most important. We have in-house doctors who are not interventional cardiologists but who can get the ball rolling.” Like most top cardiovascular hospi- tals, Henry Ford has been implementing a number of process improvements to reduce door-to-balloon time to less than 90 minutes in more than 80 percent of the cases, Kugelmass said. The hospital has cut times in half since 2003, he said. “We have achieved a lot without doing that (24-7 cardiologist),” he said. “We concluded we would be better off investing in other areas.” After an Aug. 5 press conference to announce its new cardiac care program — called Cardio Team One — DMC officials have been unavailable for comment. Dr. Theodore Schreiber is director of DMC’s Cardio Team One. BY RYAN BEENE AND CHAD HALCOM CRAIN’S DETROIT BUSINESS As local auto suppliers feel the squeeze of increased economic pressure on their industry, some are shaking up operations and laying off workers. Others are heading to court. Even a standout second-quarter performance by Auburn Hills-based BorgWarner Inc. was not enough to stem staffing cuts. BorgWarner said in its second-quarter earnings report released July 31 that it planned to cut 1,000 people from its North American workforce during the third quarter, including about 80 from the company’s five Michigan facilities. ON THE WEB An interview with Bill Fetterman from Advanced Manufacturing Group, www.crainsdetroit.com. Those cutbacks are coming despite net income that increased 16 percent to $87.5 million on record revenue of $1.5 billion, up 11 percent from the same period a year ago. The company also had strong sales in Europe and Asia, and increased sales of such fuel-saving technologies as turbochargers. “We’re a very diversified company, but we do have a healthy-sized business with the Detroit 3,” said David Peterson, BorgWarner manager for global branding and media relations. “It’s like the old adage: When GM gets a cut, the rest of us bleed.” BorgWarner’s retrenchment is in response to what the company called a continuing, fundamental market shift in the U.S. auto industry away from pickup trucks and SUVs to smaller, more fuel-efficient cars. BorgWarner’s announcement is evidence of the strain on suppliers in North America, a reality noted by CEO Tim Manganello in the company’s earnings conference call when he said “even our global success does not make us immune.” U.S. car and truck sales through July totaled 8.55 million vehicles, down 10.5 percent from a See Suppliers, Page 33 More than having right last name Roncelli president 1st outside family BY DANIEL DUGGAN CRAIN’S DETROIT BUSINESS NATHAN SKID/CRAIN’S DETROIT BUSINESS Tom Wickersham (left back row) is being asked by the Roncellis — Gary (right rear), David (front left) and Scott – to lead the family-owned company into the next decade. When Skip Roncelli started his concrete-pouring business in 1966, revenue was roughly $200,000. In recent history under his son Gary’s leadership, the construction company built the $300 million Technology Center for General Motors Corp., 23 Showcase Cinemas movie theaters across the country and the new $142 million Pinnacle Race Course in Romulus. The company has grown to 2007 revenue of $236 million. But an evaluation of the highlevel business expertise it would take for the company to compete with the other firms in town led the Roncelli family to hand operations of the company to Tom INDEX Taking Stock: Twilight book series may help Borders Group’s bottom line. Page 4. Bumpy round: Most of the 117 applications for 21st Century Jobs Funds lacked full compliance. Page 6. Income in advice: Financial planning is one reason why Michigan Financial Cos. is thriving in hard times. Page 24. See Staffing, Page 32 Pinched suppliers cut staff, file suits Rising costs, changed market spur moves CRAIN’S Wickersham in March. It marked the first time someone outside the family has led the company. “I’m a high school graduate who went to work for his father and built a career in the field,” said Gary Roncelli, 57, former president of the company. “As life gets more complex, the need for seasoned professionals around you becomes clear.” Wickersham brings a financial background to the company. As an accountant with Troybased Doeren Mayhew & Co. P.C., he was assigned to the Roncelli account until he was hired on as controller in 1987. A client now expects a construction firm to be a consultant on the finances behind a development as much as the construction, Roncelli said. Wickersham’s presence means the person handling day-to-day operations of the company will have a handle on the complex financial structures of the deals the See Roncelli, Page 33 Revving up: Work crews are leading the race to prepare Belle Isle for the Grand Prix. Page 26. These organizations appear in this week’s Crain’s Detroit Business: Advantage Health Centers . . . . . . . 31 Alcos . . . . . . . . . . . . . . . . . . . . . . 18 Barbara Ann Karmanos Cancer Institute . . . . . . . . . . . . . 14 Baseball Heroes. . . . . . . . . . . . . . . 27 Biggby Coffee . . . . . . . . . . . . . . . . 26 Borders Group Inc. . . . . . . . . . . . . . 4 BorgWarner Inc. . . . . . . . . . . . . . . . 3 Cannella Patisserie and Creperie . . 26 Center for Automotive Research . . . 28 Charter Equals County Executive . . 28 Charter One . . . . . . . . . . . . . . . . . 26 Children’s Health Initiative Program 12 Chrysler L.L.C. . . . . . . . . . . . . . . . . 28 Chrysler Financial L.L.C. . . . . . . . . 28 Citation Corp. . . . . . . . . . . . . . . . . 33 Consumers Energy Co. . . . . . . . . . . . 1 Cooper Standard Automotive . . . . . . 1 Co-op Network . . . . . . . . . . . . . . . . 18 Delphi Corp. . . . . . . . . . . . . . . . . . 33 Detroit Belle Isle Grand Prix . . . . . . 26 Detroit Edison Co. . . . . . . . . . . . . . . 1 Detroit Institute for Children . . . . . 12 Detroit Rescue Mission Ministries . 30 DMC-Children’s Hospital . . . . . . . . 12 FormTech Industries L.L.C. . . . . . . . 33 GMAC Financial Services . . . . . . . . 28 Health Alliance Plan . . . . . . . . . . . 19 HealthMedia . . . . . . . . . . . . . . . . . 19 Henry Ford Health System . . . . . . . 13 Homeless Action Network . . . . . . . 31 Johnson Controls Inc. . . . . . . . . . . 33 J.S. Clark Agency . . . . . . . . . . . . . . 24 Kickhaefer Manufacturing Co. . . . . 33 LaFontaine Automotive Group . . . . 28 MEDC . . . . . . . . . . . . . . . . . . . . . . . 6 Macomb County Chamber . . . . . . . 28 McGraw Wentworth . . . . . . . . . . . . 18 MichBio . . . . . . . . . . . . . . . . . . . . . 6 Michigan Financial Cos. . . . . . . . . 24 MPS Group Inc. . . . . . . . . . . . . . . . 28 National Center for Manufacturing Sciences . . . . . . . . 6 Oakland Hills Country Club . . . . . . 26 Penske Corp. . . . . . . . . . . . . . . . . . 26 Priority Health . . . . . . . . . . . . . . . . 19 Roncelli Inc. . . . . . . . . . . . . . . . . . . 3 St. John Health . . . . . . . . . . . . . . . 18 Sterling Heights Dodge . . . . . . . . . 28 Tumaini Center . . . . . . . . . . . . . . . 13 University of Michigan Health Management Research Center . . . . 18 UM Health System . . . . . . . . . . . . . 14 Voices of Detroit Initiative . . . . . . . 15 Walbridge Aldinger Co. . . . . . . . . . 33 Wellco Corp. . . . . . . . . . . . . . . . . . 18 BANKRUPTCIES . . . . . . . . . 6 BUSINESS DIARY . . . . . . . 22 CALENDAR . . . . . . . . . . . . 23 CAPITOL BRIEFINGS . . . . . . 6 CLASSIFIED ADS . . . . . . . . 26 KEITH CRAIN . . . . . . . . . . . 8 LETTERS . . . . . . . . . . . . . . 8 MARY KRAMER. . . . . . . . . . 9 OPINION . . . . . . . . . . . . . . 8 PEOPLE . . . . . . . . . . . . . . 23 RUMBLINGS . . . . . . . . . . . 34 WEEK IN REVIEW . . . . . . . 34 DETROIT BUSINESS MAIN 08-11-08 A 4 CDB Page 4 8/8/2008 4:56 PM Page 1 August 11, 2008 CRAIN’S DETROIT BUSINESS TAKING STOCK NEWS ABOUT DETROIT AREA PUBLIC COMPANIES Blockbuster book series may help the bottom line for Borders BY NANCY KAFFER CRAIN’S DETROIT BUSINESS www.kpiscorecard.com Borders Group Inc. (NYSE: BGP) reported slipping same-store sales in its last quarterly earnings report — but the nation’s secondlargest bookseller may get a boost from the publishing industry’s latest phenom. Breaking Dawn, the fourth and final installment of author Stephenie Meyer’s Twilight series, was released at 12:01 a.m. Aug. 2 at parties at bookstores across the country, including Borders stores and Borders-owned Waldenbooks. The Ann Arbor-based bookseller said it sold more than 250,000 books on the first day of sales, with preorders rivaled only by the Harry Potter septet. Borders declined to give the number of preorders for either series. “The book industry will never see another Harry Potter,” said Michael Norris, senior analyst at Maryland-based market research firm Simba Information. “But for now, Stephenie Meyer is the next best thing.” The popularity of the youngadult-oriented Twilight series, which tells the story of teenager Bella Swan and her romance with a handsome vampire, has grown exponentially — the initial press run for Twilight, the first book in the series, was 75,000; 3.2 million copies of Breaking Dawn were printed, according to trade publication Publishers Weekly. A film version of the first installment is due in December. Sales of the highly anticipated final volume in the Potter series contributed to a 4.6 percent bump in same-store sales in Borders’ second quarter last year, but it didn’t increase the bookseller’s profits for the quarter. Borders’ second quarter closed Aug. 2; an earnings report is expected at month’s end. Borders CEO George Jones has implemented a number of cost-cutting policies this year, including executive layoffs, and the first quarter saw the launch of Borders’ in-house ecommerce site. Online sales formerly were handled by Internet competitor amazon.com. Jones has said that such measures will save money and have improved Borders’ cash flow. But the popularity of book series like Harry Potter or Twilight can do more for Borders than just increase sales, Norris said. Savvy marketing campaigns like midnight sales, in-store parties and email can point readers to book selections in the same vein. “It’s about using a blockbuster book to bring people into the store,” he said. Meyer’s series has sold briskly, Norris said, but Potter remains the gold standard in book sales. “Breaking Dawn sold about 1.3 million copies on the first day. … but Harry Potter (and the Deathly Hallows) sold something like 8.3 million copies on day one,” he said. “In some ways, Meyer will never be in the same area code as (Harry Potter author) J.K. Rowling, but it’s certainly a big deal.” Big enough for Borders to feel the impact? Borders stock has been falling for the past year. The company’s 52-week high of $16.66 was on Aug. 9, 2007; it’s 52-week low was $3.87 was four weeks ago on July 14. The stock closed Friday at $5.66. Nancy Kaffer: (313) 446-0412, [email protected]. Cost-cutting helps Noble beat expectations BY RYAN BEENE CRAIN’S DETROIT BUSINESS Shares of Troy-based Noble International Ltd. rallied in heavy trading Thursday as the company’s secondquarter financial results beat analysts’ expectations. The supplier of laser-welded steel blanks used by the auto industry saw its share price shoot up about 98 percent, or $3.15, from its Wednesday close to hit a daily high of $6.34 about an hour after the opening bell Thursday. Noble’s stock cooled during the day to close at $5.40, up 69 percent on the day. The 809,900 shares traded Thursday was the company’s secondhighest volume day since June 22, 2004, when Noble’s stock was worth $16.60 per share. The stock closed Friday at $5.05. The company’s 52-week high was $22.74 on Aug. 9, 2007. “(I was) extremely surprised at how they blew away my or anybody else’s expectations,” said Christopher Bamman, an analyst and vice president with Morgan Jones & Co. Inc., a New York investment banking firm. Noble posted net income of $9 million, or 34 cents per share, on revenue of $315 million in the second quarter, up 385 percent from net income of $1.8 million, or 13 cents, on revenue of $183 million in the same quarter a year ago. The company focused on cutting North American costs by reducing scrap rates, closing a plant in Holt, making progress on a South Haven plant closure, and gearing up to consolidate its outsourced stamping operations into an in-house facility, CFO David Fallon said in Noble’s Aug. 7 earnings conference call. Fallon noted that the company managed its variable manufacturing costs in North America to match the company’s 21 percent sales drop in the region from decreasing vehicle production, calling it “a very significant accomplishment.” Noble’s cost-cutting efforts helped the company increase its free cash flow for the quarter by 169 percent to $31.2 million from $11.6 million a year ago. Ryan Beene: (313) 446-0315, [email protected] STREET TALK THIS WEEK’S STOCK TOTALS: 40 GAINERS, 20 LOSERS, 9 UNCHANGED CDB’S TOP PERFORMERS 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Amerigon Inc. Rofin-Sinar Technologies Inc. Credit Acceptance Corp. ArvinMeritor Inc. Caraco Pharmaceutical TRW Automotive Holdings Corp. ITC Holdings Corp. Pulte Homes Inc. BorgWarner Inc. Masco Corp. CDB’S LOW PERFORMERS 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. TechTeam Global Inc. First Mercury Financial Corp. Energy Conversion Devices Inc. Asset Acceptance Capital Corp. Rockwell Medical Technologies FNBH Bancorp Inc. Saga Communications Inc. Valassis Communications Inc. Perceptron Inc. General Motors Corp. 8/08 CLOSE 8/01 CLOSE PERCENT CHANGE $8.00 41.48 19.05 15.22 15.51 20.01 54.82 12.96 43.31 17.92 $6.45 33.85 16.80 13.71 14.05 18.17 50.40 12.01 40.18 16.64 24.03 22.54 13.39 11.01 10.39 10.13 8.77 7.91 7.79 7.69 8/08 CLOSE 8/01 CLOSE PERCENT CHANGE $8.33 12.41 62.99 10.89 5.44 6.75 5.63 8.36 7.94 10.03 $9.84 14.31 68.41 11.81 5.87 7.25 5.90 8.65 8.18 10.23 -15.35 -13.28 -7.92 -7.79 -7.33 -6.90 -4.58 -3.35 -2.93 -1.96 Source: Bloomberg News. From a list of publicly owned companies with headquarters in Wayne, Oakland, Macomb, Washtenaw or Livingston counties. Note: Stocks trading at less than $5 are not included. DBpageAD.qxd 5/8/2008 10:15 AM Page 1 Maureen Sisco Human Resource Director Nino Salvaggio International Marketplace, Troy A bold new approach to health coverage: Healthy Blue LivingSM When it launched back in 2006, Healthy Blue Living was the first health plan of its kind. Rewarding employees who chose to work toward healthier lifestyles represented a bold step in a new direction. Two years later, the results speak for themselves: lower costs, higher productivity and healthy new cultures at businesses across Michigan. “Healthy Blue Living is really in line with who we are as a company,” said Maureen Sisco, Human Resource director at Nino Salvaggio International Marketplace. “We work hard to offer the healthiest and freshest foods, so it makes a lot of sense. And the benefit is so rich that I knew it would be a popular choice.” Blue Care Network’s industry- leading expertise is already paying off for nearly 75,000 people in Michigan. What can it do for you? Ask your Blues agent or visit MiBCN.com/HealthyBlueLiving to find out. Blue Care Network of Michigan is a nonprofit corporation and independent licensee of the Blue Cross and Blue Shield Association. DETROIT BUSINESS MAIN 08-11-08 A 6 CDB 8/8/2008 2:10 PM Page 1 Page 6 August 11, 2008 CRAIN’S DETROIT BUSINESS Many Jobs Fund applications sent in with errors LANSING — The cording to the MEDC. state’s latest round of The National Center for 21st Century Jobs Fund Manufacturing Sciences on competition has had a Aug. 20 is scheduled to bumpy start. submit a list of proposals A majority of the 117 that should advance to applications received by an interview round, said the Michigan Economic Bridget Beckman, public Development Corp. lacked information officer at the full compliance with the MEDC. state’s request for proShe said initial review posals, leaving the of the applications found agency conducting peer numerous issues, due in Amy Lane review of the proposals part to apparent ambiguto reconcile differences between ity over what the state’s RFP wordthe RFP’s requirements and infor- ing required of applicants and mation that was submitted, ac- what applicants thought were sim- Capitol B r i e fi ng s ply recommendations. In addition, some applicants submitted proposals that exceeded a 25-page limit, did not indicate a required thirdparty financial match, failed to outline conflicts with the board that will make funding decisions, or had other discrepancies with the state’s requirements. Even the total number of applications and amount of money sought has shifted. The MEDC initially said it received 112 proposals seeking more than $475.7 million from Jobs Fund, compared with the maximum $30 million in awards that the fund can give out in this year’s competition. But that announcement didn’t reflect applications progressing through the system that had not yet been logged in. Inclusion of those applications boosted the final number of applicants to 117, Beckman said. In responses to the RFP, a few applicants entered their entire operating budget in a section asking the amount of money they were requesting from the state. 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Individual health plans (SOLO) are offered through Alliance Health and Life Insurance Company, Inc. Health Alliance Plan and Alliance Health and Life Insurance Company each have a Medicare contract with the federal government. rate. She said the amount of money sought by applicants now won’t be finalized until interviews are completed. She said the state will make whatever changes are necessary to ensure that next year’s RFP is very clear. “There will be no ambiguity for the applicants.” Stephen Rapundalo, executive director of MichBio, an Ann Arborbased organization that drives growth of the life-sciences industry, said he was not aware of any major issues with the current RFP, but he said that in general, specificity, clarity and consistency in such a process is important. Of the proposals submitted to the MEDC, 52 are in life sciences, 30 are in advanced automotive, manufacturing and materials, 19 are in homeland security and defense, and 16 are in alternative energy. This year’s competition targets awards at for-profit companies that can provide matching funds and demonstrate viable, sustainable business opportunities in the four sectors. The Ann Arbor-based NCMS is conducting peer review of most proposals and declined to comment for this story. A separate firm has been hired by the state to review six proposals from applicants that are either members of NCMS or that are collaborating with an NCMS member, Beckman said. She said Business Engines, of Ann Arbor, will be paid $24,999 by the state and was hired to avoid any potential conflict of interest. NCMS is scheduled to make funding recommendations on Oct. 8 to the state Strategic Economic Investment and Commercialization Board, which will select winners and announce final awards, in the form of loans or convertible loans. Comings & goings ■ Stephen Geskey, former chairman of the Michigan Employment Security Board of Review, has become director of the Michigan Unemployment Insurance Agency. He replaces acting director Chris Peretto, who resumed his previous position as the agency’s director of customer service. ■ Eric Restuccia, former appellate division chief in the Michigan Department of Attorney General, has become the state’s solicitor general. He succeeds Tom Casey, who retired in late July. Amy Lane: (517) 371-5355, [email protected] BANKRUPTCIES The following businesses filed for Chapter 7 or 11 protection in U.S. Bankruptcy Court in Detroit Aug. 1-7. Under Chapter 11, a company files for reorganization. Chapter 7 involves total liquidation. Lowe Enterprises Inc., d.b.a. The Fish Tank, 35114 Bock Road, Westland, voluntary Chapter 7. Assets and liabilities not available. Reed Law Group, P.C., 1151/2 E. Liberty St., Ann Arbor, voluntary Chapter 11. Assets and liabilities not available. Valentin Co. L.L.C., 4259 S. Corrine St., Canton Township, voluntary Chapter 11. Assets and liabilities not available. — Compiled by Bernadine Stallings DBpageAD.qxd 8/5/2008 11:57 AM Page 1 DETROIT BUSINESS MAIN 08-11-08 A 8 CDB 8/8/2008 4:29 PM Page 1 Page 8 August 11, 2008 CRAIN’S DETROIT BUSINESS OPINION Granholm: Time for you to do your job he chorus of voices calling for Detroit Mayor Kwame Kilpatrick to resign grew in volume and size last week. But as we went to press, the mayor did not appear to be heeding the call. So it’s up to Gov. Granholm to use the power granted to her by law and the state constitution to remove the mayor from office. She can remove the mayor for “official misconduct” or “willful neglect of duty.” Surely the new assault charges and the jailing for a bond violation can give her the latitude to proceed. We’re not sure the city — and the region — can afford to wait until the governor’s scheduled hearing on Sept. 3. T Plan better for power outages A series of storms this summer in June and July cost the companies providing electricity nearly $50 million to restore service. Of course, that sum doesn’t include the toll on businesses and residents affected by the power outages. As Amy Lane reports on Page 1, Detroit Edison has already spent $62 million for storm recovery; it budgeted $72 million for all of 2008. Recovery costs could climb higher if the Michigan Public Service Commission requires utilities to invest in new outage remedies. The PSC staff will file a report by Aug. 22 on the utilities’ response to the recent storms. In its defense, Edison already is blaming the emerald ash borer for some of the problems. Diseased trees were partly responsible for some of the damage to power lines during the storms. Mother Nature can’t be controlled, but how the state and its energy companies respond can be. A plan to reduce the impact of power outages should be a priority before the next high-impact event happens. McElya’s money needs leverage Jim McElya, CEO of Cooper-Standard Automotive, wants to raise $1 million for a new medical clinic for homeless and uninsured children and their mothers. The story of this one-time foster child, told on Page 1, shows how a successful executive can use business skills and connections to make a difference. To leverage the charity dollars even further, sponsors of the new clinic might explore how it might eventually become a federally qualified health center. Detroit has fewer such clinics than most large cities, but the clinics get federal operating dollars and higher Medicaid reimbursements in exchange for providing primary care for the uninsured. The clinics can help reduce the patient load seeking care through hospital emergency rooms. LETTERS Use the new media to inform Editor: It’s sad to watch The Detroit News struggle, though it’s happening to local newspapers across the country. To simplify Bill Shea’s excellent July 7 article (“More bad news for The News”), Internet sites such as Craigslist are starting to dominate the market for local classified advertising. Publishers have to make up for the losses by decreasing news and increasing advertising within the paper. The resulting degradation of the news product fosters a vicious negative cycle that depresses the valuation of the asset and creates financial jeopardy. Such a course of events in local news is particularly damaging here because good, deep coverage is the life-blood of a desperately needed, vibrant civic culture. Now here’s the rub: The countertrend to the demise of the newspaper is the rise of the Internet. The shift in power from one to the other Crain’s Detroit Business welcomes letters to the editor. All letters will be considered for publication, provided they are signed and do not defame individuals or organizations. Letters may be edited for length and clarity. Write: Editor, Crain’s Detroit Business, 1155 Gratiot Ave., Detroit, MI 48207-2997. E-mail: [email protected] is the primary reason that clumsy media companies such as Gannett are in trouble in the first place. The problem in Michigan is greater than elsewhere because, for whatever reason, innovation in local news and information over the Internet using the Web, blogging, YouTube, and social networking sites like Facebook lags other states and metropolitan areas. Because a vibrant civic culture is critical here, those that care about Michigan can and must make a major push to enable and encourage citizens to inform one another through “self-generating content” platforms such as blogs and social networking sites. Investment of time, energy and resources by civic, political and business leaders into this sector will foster the critical new media ecology for our state. Such investment will pay off by spurring on a vibrant civic culture that serves the information needs of our local democracy despite the unfortunate demise of competitive markets for local newspapers. Scott Aikens Birmingham Thoughts on recycling Editor: I agree with store owner spokespersons like Ed Deeb (Michigan Food and Beverage Association) that in the process of changing our state’s returnable See Letters, Page 9 KEITH CRAIN: Will Detroit’s soap opera ever end? We were all supposed to enjoy the national publicity of the PGA golf tournament. National television was showing the wonderful course at Oakland Hills Country Club in the shadow of the city of Detroit. Instead, we were subjected to national ridicule once again caused by the inappropriate actions of our mayor. The mayor was fighting to get out of jail Friday — just in time to learn that he was being indicted once again. This time on an assault charge, which they say may go to trial within a few short weeks. I was out of town for some of last week and will be out of town for some of this week as well. The amount of ridicule that is being heaped on Detroit and its people is quite substantial. It is long past the time for the mayor to resign. I don’t know how much it’s go- ing to take for Mayor Kilpatrick to understand just how devastating his actions are for the image of his city. He has single-handedly made this city into a laughing stock around the world. That will be his legacy. He may feel that he is being accused unjustly and that the world is out to get him, but the truth is that he simply has brought all of this on himself. It may take a long time for him to understand that he alone is responsible for his actions. It is time for him to acknowledge that he must step down for the good of the community as well as the good of his family. It would be impossible for him to do anything other than resign. The time is long past for any consideration of stepping aside during all of his court cases. He must leave office. Then due process can take its time without further damage to our city. We have watched this charade too long; it gets worse with every passing day. Our sadness has turned to frustration, and our frustration has turned to anger. We cannot let our city burn while Nero plays. Our governor seems to hold the only key that will give us the opportunity to adjudicate some of the issues. She must act. And our civic leaders, who have remained silent, have to speak out. Their voices have been silent far too long. DETROIT BUSINESS MAIN 08-11-08 A 9 CDB 8/8/2008 11:45 AM Page 1 CRAIN’S DETROIT BUSINESS August 11, 2008 Page 9 MARY KRAMER: The mayor isn’t our only problem A lot of ink and online chatter have been expended on the continuing soap opera of Detroit and its mayor. But as we went to press last Friday, my thoughts focused on two issues not directly related to the current mayor’s troubles. First is the major roadblock to acting regionally: suspicion of corruption in city-related contracts. Last week, Lou Pavledes, former director of Cobo Center, and Karl Kado, the contractor Pavledes says paid him kickbacks in exchange for work at Cobo, were indicted. Kado has held many contracts at Cobo, for food service, electrical and janitorial services, among others. LETTERS CONTINUED ■ From Page 8 bottle-deposit laws we should put in place a total recycling program to include steel, aluminum, plastic, glass, paper, newspapers, paper and other recyclables (“Retailers, trade groups fight expansion of bottle deposit rules,” June 30; Letters: “Give sellers more for unreturned containers,” July 14; and Letters: “Don’t expand deposit law,” July 21). And rather than burdening store owners with having to process all of these additional returnables, let’s set up reclamation centers in each community that would handle all these items. Let’s allow existing nonprofit agencies to be the sites for these centers and in the process earn some money and create some additional jobs in the process. I would add two dimensions: 1. At each of the reclamation centers, provide a special room, with built-in safety features, where, for $5, a person could come in and smash a few glass bottles against a wall as a means of letting off steam, a stress reduction exercise. Many cultures over the centuries have had similar “rituals” to relieve stress, and God knows we have a lot of stress in our lives today. And today, also, persons go to a psychiatrist and the patient is told to beat on a pillow to relieve stress and often at a cost of $150 an hour. And, hey, if the person brings his/her own glass bottles, there would be a discount. 2. Water for the arts. Our cultural institutions are scrambling to find steady sources of funds to support our cultural arts treasures and resources. Keeping in mind that Detroit’s water is probably as pure and healthy as 70 percent of all bottled water, why can’t we work out some mechanism whereby Detroit water is bottled, with buy-in from perhaps Pepsi Cola and Coca-Cola, and a decent portion of the profits go to the arts? This means that when you go into the gas station, convenience store or supermarket, you have an easy way to support the arts by buying a product labeled “Water for the Arts,” or another catchy name. If groups like the Michigan United Conservation Clubs and ArtServe Michigan could join forces, it just could happen. I’m serious. Richard Thibodeau Waterford Township Transparency of contracts — criteria, who gets them and where the companies are based — is an issue in everything from regional talks on expanding Cobo to working regionally on water and sewage operations. The Cobo case — as well as the Synagro corruption probe related to Detroit City Council or the text messages showing the help Christine Beatty gave contractor Bobby Ferguson — provide plenty of ammo for suburban leaders not to work regionally. The second issue is more troublesome: Where will the next generation of leaders for mayor and council in Detroit come from? Detroit voters have the chance to elect new faces to council and the mayor’s office in 2009. I’m a fan of electing council members by districts or wards. In most major cities, candidates with good track records at a neighborhood or district level can run successfully. In Detroit, though, you need citywide name recognition, so the sys- tem favors family dynasties or even notoriety for the wrong reason. Remember Alonzo Bates? He’s in prison for fraud during his City Council tenure, but he was elected to City Council after achieving notoriety on the Detroit school board for booking first-class air tickets for school board junkets and being found by a TV crew lounging at home when he was supposed to be working as a recreation department employee. He won a council seat after that. Unfortunately, a petition drive to create a ward system has languished. The Detroit chapter of the League of Women Voters couldn’t find enough volunteers to circulate petitions to collect the necessary 34,000 signatures. As a Detroit resident, I’m embarrassed I didn’t pay enough attention to that drive, which is due Aug. 12. Democracy is not a spectator sport. You have to get involved. So in that respect, we may, in fact, be getting the leadership we deserve. Mary Kramer is publisher of Crain's Detroit Business. Catch her take on business news at 6:50 a.m. Mondays on the Paul W. Smith show on WJR AM 760 and in her blog at www.crainsdetroit.com/kramer. E-mail her at [email protected]. DBpageAD.qxd 3/26/2008 11:58 AM Page 1 We’ve go . s t the Plu More and more businesses are turning to the Plus that adds up to better health care for their employees – HealthPlus. With HealthPlus, you’re able to offer a PPO, an HMO, even Health Savings Accounts, all from one source. That makes things easier and more efficient for you. And by offering HealthPlus, your employees know they’re getting the best. That does great things for employee retention. For almost 30 years, HealthPlus has worked to keep Michigan businesses healthier. Find out what they can do for your business. 1-800-332-9161 healthplus.org HealthPlus PPO is a product of HealthPlus Insurance Company, a wholly owned subsidiary of HealthPlus of Michigan, Inc. DETROIT BUSINESS MAIN 08-11-08 A 11 CDB 8/8/2008 10:22 AM Page 1 CRAIN’S DETROIT BUSINESS August 11, 2008 Page 11 A CONVERSATION WITH Wellness programs: Good investment? Success of company wellness programs depends on worker buy-in and patience for return on investment. Page 11. Dr. Ronald M. Davis, American Medical Association Halfway into his term earlier this year as president of the American Medical Association, preventive medicine specialist Dr. Ronald M. Davis, 52, was diagnosed with pancreatic cancer. As director of the Center for Health Promotion and Disease Prevention at Henry Ford Health System in Detroit, Davis became a patient while he continued his AMA duties. He is undergoing chemotherapy to halt the spread of the cancer, now in his liver. Reporter Jay Greene spoke with with Davis, now immediate past president of the AMA. What is the biggest challenge facing physicians who want to provide high-quality care? The nation must have a fair and affordable health system that provides access to high-quality medical care. Preserving and improving access to care is at the center of the American Medical Association’s strategic vision. … Our long-term view includes working with government and private payers so that every American has health insurance and can choose their doctor and health plan. How do physicians deal with sometimes overwhelming needs of treating the poor in economic down times? Nearly 70 percent of American physicians provide charity care, but for many patients without health insurance, the sad truth is that they simply won’t come in for a doctor’s appointment until they are in a health crisis. The AMA is pushing for national reform. Physicians refer poor and low-income uninsured patients to a variety of programs that, if they qualify, will offer them assistance with medical bills or get them signed up for insurance. What are the important new developments or trends that have the greatest chance of improving medicine? Advancements in molecular biology and vaccinology will have an enormous impact on medicine over the next decade. Individual genetic profiles will improve the ability to identify and treat those who may be at risk for diseases. Putting more focus on preventive care and healthy lifestyle counseling, and developing and implementing clinical performance measures are key. Has your view of medicine changed since your diagnosis of pancreatic cancer? I have a greater appreciation for team care. I’ve had wonderful care from physicians representing many specialties, and from oncology nurses, registered dieticians, genetics counselors, and many others. Some teams work well, and others do not. We must ensure that teams operate within a framework based on good communication, coordination and cooperation. If you know someone interesting you would like Jay Greene to interview, call (313) 446-0325 or write jgreene@ crain.com Health care OUTSTANDING PHYSICIAN ACHIEVEMENT Crain’s honors industry heroes Winners lead fight against cancer, child obesity, care for the uninsured nnovation and compassion are the common qualities in this year’s group of Health Care Heroes. One directs new cancer drug research, providing new hope to some patients. One tirelessly works to increase access to care for the uninsured. Another is leading the fight against childhood obesity. And yet another provides much-needed hands-on care to Detroit’s homeless. The winners were chosen in four categories: Outstanding Physician Achievement; Allied Health (honoring exemplary work by a nonphysician caregiver); Corporate Achievement; and Advancement in Health Care. This year’s judges were: Vernice Davis Anthony, president and CEO of the Greater Detroit Area Health Council. Dr. Manuel Valdivieso, chief medical officer and associate director, clinical affairs, Barbara Ann Karmanos Cancer Institute. Dr. James Forshee, chief medical officer, Molina Healthcare of Michigan. Mary Jo Hollebrands, nursing supervisor at Macomb Oakland Regional Center. Judges abstained from voting on candidates from their employer. I PHOTOS BY NATHAN SKID/CRAIN’S DETROIT BUSINESS Dr. Paul Ehrmann, Family Health Care Center of Royal Oak. Page 12. OUTSTANDING CONTRIBUTIONS IN ALLIED HEALTH Dean Carpenter, Tumaini Center. Page 13. CORPORATE ACHIEVEMENT Lucille Smith, Voices of Detroit Initiative. Page 15. ADVANCEMENT IN HEALTH CARE CELEBRATE HEALTH CARE HEROES SEPT. 4 Join us as we celebrate the fifth annual Crain’s Health Care Heroes featured in this section. The Sept. 4 luncheon is from 11:30 a.m. to 1:30 p.m. at the MSU Education Center in Troy and is to include a panel discussion with the winners. The presenting sponsor is Fifth Third Bank. Tickets are $40 before Aug. 22; $55 after. Register at crainsdetroit.com/events. Dr. Patricia LoRusso, Barbara Ann Karmanos Cancer Insitute. Page 14. DETROIT BUSINESS MAIN 08-11-08 A 12 CDB Page 12 8/8/2008 11:10 AM Page 1 August 11, 2008 CRAIN’S DETROIT BUSINESS FOCUS: HEALTH CARE OUTSTANDING PHYSICIAN ACHIEVEMENT Fighting childhood obesity JAY GREENE CRAIN’S DETROIT BUSINESS ALL SIGNS point TO KITCH. In the business of healthcare, you want lawyers who know your industry from the ground up. At Kitch, you’ll find that full-service firm you’re looking for. Respected lawyers dedicated to listening to their clients. Experienced in solving the most difficult issues. Prepared to handle everything from sophisticated joint ventures to complex professional liability disputes. Successfully and cost-effectively. When it’s expert advice you need, let a proven leader show you the way. 313.965.7900 www.kitch.com Childhood obesity is a problem Dr. Paul Ehrmann has seen firsthand in 27 years as a primary care physician at his Family Health Care Center of Royal Oak. It isn’t just the likelihood of diabetes or hypertension later in life that concerns him, there also are problems such as low self-esteem and behavior problems. In 2002, Ehrmann founded the Children’s Health Initiative Program, a wellness initiative that encourages children to eat healthier and exercise. CHIP brings together schools, health care providers, businesses and municipal governments. In two pilot programs, CHIP has taught about 60 children in the third, fourth and fifth grades in Royal Oak and Southfield how to buy healthy groceries, make nutritional meals and exercise. Ehrmann recruits health care providers and professionals such as dietitians, trainers, chefs and sometimes professional athletes to work with kids in school settings. “We are trying to work with school districts to get healthier choices in vending machines and in school lunches,” Ehrmann said. His new book, Generation XL — The Childhood Obesity Pandemic: A Community Based Solution, is to be released this fall. “The book lays out how organizations can develop this kind of program and how to sustain it,” he said. Conquering childhood obesity would have a huge impact on behavior as well. At least one study has shown “it is more painful for kids to be overweight than go through chemotherapy,” Ehrmann said. A 2003 survey in the “Journal of the American Medical Associa- Dr. Paul Ehrmann leads a program to encourage healthy lifestyles for kids. tion” found that obese kids had slightly greater behavioral problems than children with cancer. With the rise of the Internet, the growth of single-parent families and the de-emphasizing of physical education in schools, the numbers of obese kids also have more than doubled over the last 25 years. “There are more socioeconomic barriers today to exercising and eating nutritious foods,” Ehrmann said. “Those who live in impoverished areas may not have access to healthy food, and the environment is unsafe for fitness.” Parents need to be role models to their kids, he said. Otherwise, he fears, the number of obese kids will continue rising. The Atlanta-based Centers for Disease Control and Prevention says the number of overweight children age 6-11 rose to more than 20 percent in 2007 from 7 percent in 1980. The rate among adolescents age 1219 more than tripled to 16 percent from 5 percent during this period. Jay Greene: (313) 446-0325, [email protected] HONORABLE MENTION: PHYSICIAN ACHIEVEMENT Caring for developmentally disabled children Pediatric neurologist Dr. David Benjamins has helped children with developmental disabilities in the Detroit area for more than three decades, and in 2009 he’ll open Detroit’s only developmental clinic for children with neurological impairments. The neurodevelopmental clinic is still in the planning stages, but BenBenjamins jamins sees it as a refinement of what he does at Detroit Institute for Children. “It would be a clinic to both diagnose the problem, if we can, and to treat it and then follow up,” he said. “(Disabilities we treat) could be retardation, cerebral palsy, attention deficit disorder, or autism.” Benjamins and the institute are working to secure funding for the clinic. The more than $250,000-per- year project awaits pending grants. As the only pediatric neurologist at the institute, Benjamins will run the new clinic. He’ll lead a team of nurse practitioners, and maybe other doctors, toward providing comprehensive health care for children with developmental disabilities. He also will be able to train interns and residents — a part of his job he says is his favorite. “He could have gone anywhere he wanted,” said Dr. Eileen Donovan, institute medical director. “His service in Detroit is the best testament to how he’s helped make health care available (in the city).” Benjamins, 67, began at the DMCChildren’s Hospital of Michigan and worked at the nonprofit institute through a charitable arrangement between the department of pediatrics and a Wayne State University program. Now he’s contracted at the institute full time, and the nonprofit has provided a platform for his neurodevelopmental clinic. — Christiana Schmitz DETROIT BUSINESS MAIN 08-11-08 A 13 CDB 8/8/2008 10:23 AM Page 1 CRAIN’S DETROIT BUSINESS August 11, 2008 Page 13 FOCUS: HEALTH CARE OUTSTANDING CONTRIBUTIONS IN ALLIED HEALTH Nurse practitioner helps the homeless, head to toe Bank where ONE-on-ONE care is standard business practice We’ll help you nurture a healthy business At Level One Bank we know how to care for the financial well-being of your business. Because like you, we built ours from scratch. From free consultations to greater account protection, our complete business banking services are wholly committed to your success. BY JAY GREENE CRAIN’S DETROIT BUSINESS Dean Carpenter was puzzled when a 42-year-old woman appeared at the Tumaini Center in Detroit complaining about her feet. She said they were painful and described the sensation as tingling. Carpenter, 51, a registered nurse for 24 years who for the last five has specialized as a family nurse practitioner, examined her feet. They were pale, wrinkly and waxy. “She got caught in a freezing rain and her socks and boots got wet. She had been walking around in them for three days,” he said. “I knew it wasn’t frostbite because it hadn’t been that cold. I researched it and was surprised what I found.” It was trench foot; the same trench foot U.S. soldiers in World War I came down with by the thousands. Severe cases developed gangrene and required amputation. “It could have been prevented with dry socks,” he said. In the summer of 2006, Carpenter started to collect spare socks to hand them out at the clinic. He put a “socks box” on his porch and collected 100 pairs the first year. Last year, Carpenter enlisted the support of a local businessman in his home town of Chelsea. That effort garnered 400 pairs. “We pass them out to people who need them at the clinic,” said Carpenter, who noted he has diagnosed four other people with trench foot. • Our business bankers make "house calls.” They bring the bank to you, so you can stay focused on your business • One-on-one personal attention with direct access to senior bank management • Best-in-class technologies, including Remote Capture Dean Carpenter began collecting socks for patients at the Tumaini Center after treating a woman with trench foot. “They love it.” The Tumaini Center, at 3430 Third St. in Midtown, is operated by the Detroit-based nonprofit Neighborhood Service Organization. Carpenter also works three days a week in the chest pain center in the emergency department at the University of Michigan Health System in Ann Arbor. He works two 10hour shifts at the Tumaini Center on Tuesdays and Thursdays. “We see a host of pathologies endemic to the homeless population,” he said. “Lice and scabies, also complications from gunshot wounds, simple lacerations I sew up, and a lot of victims of violent crimes.” Jay Greene: (313) 446-0325, [email protected] Learn more about our complete business banking services at www.levelonebanking.com - or call 248-737-0300 or 888-880-5663 Dr. Issac Grinberg Southfield, MI “Our group of physicians wanted to start a new venture. Level One invested a lot of personal time to help us put together a financial forecast. They worked with us as a team more than a lender and a borrower.” Dr. Issac Grinberg- Cardiologist THE ONE BANK for the one and only you. 30201 Orchard Lake Rd., Farmington Hills, MI 48334 www.levelonebanking.com HONORABLE MENTION: ALLIED HEALTH A nurse who mentors, inspires Ana Lawrence has a passion for mentoring and inspiring fellow nurses. In her own words, she’s “done the gamut.” She’s been a hospital nurse at DMC Sinai-Grace Hospital. She’s worked in public health nursing at the Ann Arbor VA Medical Center, the Community Health and Social Services Center of Detroit, and the Oakland County Health Department. She now is clinical manager of home health care at Henry Ford Lawrence Health System. Her work is mostly behind the scenes, but she has been recognized with several awards. Lawrence heads the maternalchild and wound and ostomy (a surgical procedure that creates an opening for waste) programs, in addition to the infusion and transplant team and the intake team in the home and health care division. “She’s got a trap door mind for remembering things that I want to do and goals (that I have) for my- self,” said Laura Lenihan, a supervisor of the specialty infusion and transplant team. When Lenihan went to work on a new program called SITT, a still-developing transplant- and infusioncare training program, Lawrence was behind her 100 percent. Despite hiring mishaps and extra work, Lawrence never gave up, Lenihan said. The program has been running at Henry Ford for three years. She has earned a Henry Ford Health Systems Outstanding Leader award, a HFHS Shadow of a Leader award, a HFHS Shadow of Influence award, and a Wayne State University Michigan Top Nurse award. She also won an award for work on the hospital’s inpatient redesign team. Lawrence, 59, also interprets for doctors with Spanish-speaking patients, and has helped translate hospital documents. While at the Community Health and Social Services Center, she taught Spanish-language nursing classes, and she has volunteered at the Covenant Community Health Care Clinic in Southwest Detroit to nurse and translate. — Christiana Schmitz In Detroit, there’s one way to face down risk... 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About 15 percent of patients who apply for trials are eligible based on medical criteria, such as having adequate blood counts and functioning organs. Patients who volunteer for Phase I clinical trials have failed traditional cancer treatment. “It takes us three hours to do the workups on patients to see if they are eligible, and six hours of tests before they see us,” she said. While LoRusso has saved the lives of many suffering from cancer, she said the toughest job is telling someone they have no more options. “I have to tell them their only other option is supportive care or hospice.” But LoRusso lives for the time during the trial when patients begin to respond to the drugs. “It is pretty amazing. Many of the new drugs in development today are targeted, more focused on the pathways,” she said. While controversial to some, one development is the use of embryonic stem-cell therapy. Early data indicates stem cells can be used to combat such cancers as leukemia, breast and prostate. Jay Greene: (313) 446-0325, [email protected] JAY GREENE CRAIN’S DETROIT BUSINESS Dr. Patricia LoRusso, chief researcher at Barbara Ann Karmanos Cancer Institute, lost both parents to cancer during her youth. “My mother had what is now a curable lymphoma,” said LoRusso, 52, who has been with Karmanos for more than 20 years. “Since I was a teenager, I wanted to develop anti-cancer drugs.” As director of Phase I clinical trials at Karmanos, LoRusso manages a department of about 40, including another research physician, a pharmacologist, several medical scientists and support staff. The program tests drugs in humans and makes sure they are “safe in combination with other drugs, what the food effect is, how the body responds to the drug,” she said. LoRusso has been involved in the early clinical development of five of the past nine anti-cancer drugs to become commercially available. Two include Ixempra, an antibreast cancer drug approved by the U.S. Food and Drug Administration last year, and Tykerb, another drug used for metastatic breast cancer. “Ixempra works by itself as a Dr. Patricia LoRusso has been involved in the clinical development of drugs such as Ixempra and Tykerb, used to fight breast cancer. mono-therapy use, and others work in combination to shrink tumors and improve a patient’s quality of life,” she said. Zometa, a drug LoRusso’s team worked on, does not shrink cancer, but it improves quality of life by delaying or reducing bone complications. On average, anti-cancer drugs are tested for eight years in clinical trials before they receive approval A University of Michigan Health System innovation gives doctors’ offices a hand in keeping tabs on patient immunization schedules and chronic care needs. UM Drs. Donald Nease, Michael Klinkman and Lee Green developed ClinfoTracker, now renamed Cielo Clinic, a software package and tracking system used for clinical reminders. “When we Nease started in fall 1998, all the guidelines at that time were getting so numerous that it was difficult to keep track of each patient’s schedule,” said Nease, associate professor at the UM Department of Family Medicine. Cielo Clinic is used to alert doctors when Medicaid patients under the age of 2 are due for mandatory lead screenings. The system also reminds doctors to give vaccines for pneumococcus, a form of pneumonia, to older adults to prevent infection. Offices can use the system to mail reminders to patients and create phone lists for nurses to contact those in need of screenings or vaccinations. “It is easy to forget. Most of the time, primary care physicians are seeing patients at least every 15 minutes and addressing all medical issues plus other chronic diseases,” said Nease. Cielo Clinic is also used to recommend and administer services for chronic diseases such as diabetes, asthma, congestive heart failure and depression. UM licensed the system to Cielo MedSolutions L.L.C., in Ann Arbor, through its technology transfer program. St. John Health System and practices of the Oakland Southfield Physicians Group have already upgraded their offices with the technology. The original developers of the software remain paid consultants on Cielo’s advisory board, advising the company on the future direction of the software. — Bernadine Stallings , Y L L A FIN E V A H YOU E C I O H AC Introducing an easier health plan. 0RIORITY¬(EALTH¬HAS¬COME¬TO¬%ASTERN¬-ICHIGAN¬BRINGING¬YOU¬A¬BROAD¬PORTFOLIO¬OF¬INNOVATIVE¬EMPLOYEE¬HEALTH¬PLANS¬ TO¬CHOOSE¬FROM¬AND¬A¬VARIETY¬OF¬AWARDWINNING¬SERVICES¬¬-ICHIGANBASED¬0RIORITY¬(EALTH¬HAS¬RANKED¬AS¬ONE¬OF¬THE¬ NATIONS¬BEST¬FOR¬MORE¬THAN¬¬YEARS¬¬(OW¬CAN¬WE¬HELP¬YOU¬¬#ALL¬YOUR¬AGENT¬OR¬0RIORITY¬(EALTH¬AT¬¬¬¬OR¬ VISIT¬priorityhealth.com¬¬&IND¬OUT¬HOW¬YOU¬CAN¬GET¬MORE¬OUT¬OF¬YOUR¬EMPLOYEE¬HEALTH¬PLAN¬EASILY SM Life just got a little easier. 0 0 / ¬ s ¬ ( - / ¬ s ¬ 0 / 3 ¬ s ¬ ( 3 ! ¬ s ¬ ( 2 ! ¬ s ¬ & 3 ! ¬ s ¬ $ % . 4 ! , ¬ s ¬ 6 ) 3 ) / . DETROIT BUSINESS MAIN 08-11-08 A 15 CDB 8/7/2008 4:25 PM Page 1 CRAIN’S DETROIT BUSINESS August 11, 2008 Page 15 FOCUS: HEALTH CARE CORPORATE ACHIEVEMENT HONORABLE MENTION: CORPORATE ACHIEVEMENT Advocate offers a voice for the uninsured Alternative cure for back pain JAY GREENE CRAIN’S DETROIT BUSINESS As executive director of the Voices of Detroit Initiative the past 10 years, Lucille Smith is most proud of the collaborative relationships she has built among the city’s safety-net providers. “We have been able to convince the federal government to increase the primary care delivery capacity in Detroit,” said Smith. “We have the second-largest population in the region after Chicago, and we have fewer federally qualified health centers than cities smaller than us, like Cincinnati and Indianapolis. “We started with six clinics (in 1998), and now we are up to 17,” she said. “We have made good progress, but our coordination isn’t as cohesive as we’d like because we have capacity issues at the federally qualified health centers.” Of Wayne County’s 1.9 million residents, there are an estimated 300,000 people without health insurance and another 390,000 in the state Medicaid program. To help address rising numbers of the uninsured and underinsured, Voices of Detroit was Lucille Smith works to foster cooperation among agencies that provide care to the uninsured. formed in 1998. The organization now includes the Detroit Health Department, the Wayne County Health Department, Detroit Medical Center, Henry Ford Health System, St. John Health System, Oakwood Healthcare and several of the federally qualified health care centers. One of the chief goals of the initiative is to link uninsured people with primary care providers. It does this by working with hospi- tal ERs to enroll them in the initiative’s database for follow-up on primary and preventive care. Its current project is to create electronic medical records for the 40,000 uninsured and underinsured people it has enrolled. Through an $817,000 federal grant, the initiative is providing electronic medical record information systems to clinics and primary care physicians who are participating in the program. Earlier this year, Smith, 62, coauthored a book, Taking Care of the Uninsured: A Path to Reform, with several other Detroit primary care advocates. The book describes how a Voices of Detroit-led project in Detroit helped provide more than 33,000 low-income uninsured people with access to health care. Smith has served as senior vice president for the now-defunct Southeast Michigan Health & Hospital Council, program director with the Greater Detroit Area Health Council and director of hypertension services for the Michigan Public Health Department. Jay Greene: (313) 446-0325, [email protected] Chrysler L.L.C., Henry Ford Health Systems and Health Alliance Plan of Michigan developed a pilot program to help employees and patients with chronic back pain. The pilot program, called “We’ve Got Your Back,” was created by Dr. Robert Levine, director of the Center for Integrative Wellness at Henry Ford. Levine developed the concept and researched patient benefits and cost savings of using alternative medicine to treat back Levine pain. Levine began in 1994 researching cures for his own back pain, which seemed to resist standard treatments. “Traditional medicine was not offering any good solutions,” he said. “Often times, it doesn’t always cure people’s pain. Medicine needs to eliminate pain, not only manage it.” Chrysler, based in Auburn Hills, began trying holistic group muscle therapy in 2007. Championed by Dr. Teresa Bartlett, senior manager of Chrysler’s disability and health care medical programs, and Matt Walsh, associate vice president of purchase initiative for HAP, nearly 100 employees enrolled in the program. Over six months, participants learned somatic movement re-education routines that teach the brain to release muscle tension. Somatics centers on learning new patterns of muscle control. Levine also instructed participants on home healing activities and guided relaxation. The program is meant to be an alternative, or a next step, to physical rehabilitation or prescription drugs. Over the course of the therapy, program staff collected data to monitor stress levels, sleep quality and any reduction of depressive symptoms that can also cause pain. Fifty-five percent of participants reported eliminating discomfort completely, while 86 percent reduced pain, according to Levine. National figures provided by HAP show that “these results could translate into $1,500 or more in annual medical cost savings for each employee who remains painfree.” — Bernadine Stallings ANpageAD.qxd 8/6/2008 11:54 AM Page 1 R JO ER G M M M C BA N Needing cancer surgery can make you feel all alone. S MD MD III,M R JO ER G M M M ANpageAD.qxd 8/6/2008 11:56 AM Page 1 RAHUL VAIDYA, MD • JOHN M. BARNWELL, MD • JOHN R. JACOBS, MD • HO-SHENG LIN, MD • ROBERT H. MATHOG, MD • DAVID L. BOUWMAN, MD • GEORGE H. YOO, MD • FRANK A. BACIEWICZ, JR MD • CASSANN N. BLAKE, MD • CHARLES LUCAS, MD • SHANNON BONGERS, MD • DAVID BROWN, MD • MADHU PRASAD, MD • ANDRE NUNN, MD • CHRISTOPHER P. STEFFES, MD • LUCILA ORTIZBARRON, MD • DONALD W. WEAVER, MD • JOHN N D. WEBBER, MD • MICHAEL L. CHER, MD • HAZEM ELTAHAWY, MD • MURALI GUTHIKONDA, MD • UnlessMITTAL, you surround yourself with the people. JR., SANDEEP MD • JOHN M.right MALONE, D • ROBERT T. MORRIS, MD • J. EDSON PONTES, D • ISAAC J. POWELL, MD • WILLIE UNDERWOOD ,MD • MICHAEL L. CHER MD • GUNTER DEPPE, MD • MARY A. KOSIR, MD • JEFFREY A. TRIEST, MD • Every surgeon here is a cancer surgeon. Each one is on the faculty Wayne State University School, giving them access to the RAHULofVAIDYA, MD Medical • JOHN M. BARNWELL, MD • latest technology and techniques. So when you need expertise, ask doctor for a referral, 800 -Karmanos or visit LIN, karmanos.org JOHN R.your JACOBS, MDcall•1-HO-SHENG MD • ROBERT H. MATHOG,Hear MDcancer. • DAVID L. BOUWMAN, MD • Think Karmanos. GEORGE H. YOO, MD • FRANK A. BACIEWICZ JR. MD • CASSANN N. BLAKE, MD • CHARLES LUCAS, MD • SHANNON BONGERS, MD • DAVID BROWN, MD • MADHU PRASAD, MD • ANDRE NUNN, MD • DETROIT BUSINESS MAIN 08-11-08 A 18 CDB 8/7/2008 4:26 PM Page 1 Page 18 August 11, 2008 CRAIN’S DETROIT BUSINESS FOCUS: HEALTH CARE Wellness programs’ savings depend on participation BY JAY GREENE CRAIN’S DETROIT BUSINESS Companies now have two choices if they want to offer wellness programs to their employees — convenient workplace programs or health insurance products that promise lower costs if healthy habits are followed. But which approach is best for employers? Both approaches have pluses and minuses, said Dee Edington, director of the University of Michigan Health Management Research Center in Ann Arbor. The center contracts with employers and insurers to offer online health risk assessments, and it provides return-on-investment assessments. Edington said success often depends on employee participation and what an employer wants to accomplish — save money quickly with premium reductions, or offer employees convenience and save money over time with lower medical costs. Health insurers can offer employers immediate savings on premiums — 10 percent to 13 percent — with the potential of reducing future medical costs through improved health, said Karen Alter, associate director with McGraw Wentworth, a Troy-based employee benefit firm. However, employee participation rates typically are lower with the insurance products than the more convenient workplace wellness programs, said Edington. Lower participation rates can limit long-term health and business cost savings, he said. “Employers should share premium savings with employees, give them half of the savings, as an incentive to participate,” he said. “This can help bring up participation rates” to that of workplace wellness programs. Alter said workplace wellness programs offer savings that are measured over time. “In most cases, it is two to three years before an employer can begin to measure the impact of a wellness program on health care claims,” she said. Workplace wellness programs have an advantage because they are on-site and can offer convenient health risk assessments and screening tests, including cholesterol and blood pressure, Edington said. “The downside is there can be high startup costs, and the savSee Wellness, Page 19 Companies see value, but can’t say how much BY JAY GREENE CRAIN’S DETROIT BUSINESS While a majority of employers in a recent survey said they could not identify return on investment for their wellness programs, three Southeast Michigan employers said they have achieved positive results. In a 2008 survey of 376 area employers, 43 percent said they felt wellness programs offered value, but just 14 percent of companies said they could identify ROI, said McGraw Wentworth, a Troy-based employee benefit firm. Four percent felt costs exceeded savings. From 2003 to 2006, St. John Health in Warren used a wellness program designed by Wellco Corp., a Troybased vendor, with 1,000 employees identified as having high-risk medical conditions. The seven-hospital system saved 62 percent on medical costs for a 3-to-1 ROI, said Darlene Ephraim, the system’s corporate director. St. John paid Wellco about $50,000 annually for the program. In 2006, St. John brought the wellness program inhouse, opened it to all employees and got similar positive results. “The program is designed to get them whatever services they need to optimize their care,” said Dr. Andrew Vosburgh, St. John’s corporate medical director for wellness and occupational medicine. “We work with them with health coaches to break down the barriers to care.” While many companies are investing in workplace wellness activities such as discounted health club memberships, wellness programs can be expensive with financial payoffs taking at least three years, said Hans Brieden, a vice president in charge of wellness with Alcos, a Sterling Heights-based employee benefits and financial services company. “People in HR are hesitant to push these programs ... because of the tremendous expense and the difficulty in establishing return on investment,” he said. During the first year of its wellness program in 2004, Co-op Network, a Southfield-based credit union service organization, saved $22,833 in health care costs for a 162 percent ROI, said Michele Langley, Co-op’s manager of human resources. Co-op paid Wellco Brieden $1,200 per month for the program. Employees improved their health in a number of areas by signing up for Weight Watchers, joining walking programs and participating in nutrition and stress management programs, Langley said. While the program saved money and was popular among employees, Langley said, the company terminated the program in 2006 for budgetary reasons. “We noticed absenteeism and health plan costs went up in 2007. I would like to bring the wellness program back,” she said. Co-op’s experience is not uncommon. Ten percent to 20 percent of companies will drop out during the first year because they don’t get immediate benefits, said Scott Foster, Wellco’s corporate wellness expert. Jay Greene: (313) 446-0325, [email protected] THE PATIENT CENTERED MEDICAL HOME INTERNAL AND EXTERNAL RESTRUCTURING CONTINUOUS QUALITY IMPROVEMENT HEALTH CARE TRANSFORMATION A PASSION TO BE THE BEST WILLINGNESS TO CHANGE VISIONARY LEADERSHIP REALǦTIME LEARNING TEAMWORK PRACTICE TRANSFORMATION INSTITUTE PROVIDES UNIQUE TEACHING AND LEARNING SOLUTIONS FOR HEALTH CARE ORGANIZATIONS OF ANY SIZE TO LEARN MORE VISIT: WWW.TRANSFORMCOACH.ORG OR CALL: 248Ǧ519Ǧ2337 DETROIT BUSINESS MAIN 08-11-08 A 19 CDB 8/7/2008 4:27 PM Page 1 CRAIN’S DETROIT BUSINESS August 11, 2008 Page 19 FOCUS: HEALTH CARE Wellness: Companies’ savings depend on workers’ participation ■ From Page 18 ings accrue over time,” he said. But the key to success for both approaches is ongoing employee participation coupled with financial incentives. “It is important to have appropriate incentives that encourage employees to participate in these programs,” Alter said. Incentives could include premium savings with employees or $25 to $100 cash bonuses to take risk Alter assessments. In October 2006, when Blue Care Network began offering a specialized insurance product — Healthy Blue Living — that featured a wellness program to promote and offer financial incentives for healthy behaviors, other Southeast Michigan insurers took notice. Within 15 months, Priority Health in Farmington Hills and Health Alliance Plan in Detroit followed suit with similar products. The three health plans said enrollment for the wellness products are higher than expected and will continue to grow as more employers offer the programs as part of their benefit package. Blue Care’s Kevin Klobucar, vice president of products and marketing, said the HMO developed Healthy Blue Living on a request from the Detroit Regional Chamber. Within the first six months, Healthy Blue had signed up 48,000 members. By May, 73,000 members had joined the HMO plan. The product is designed to give employers a 10 percent reduction in health insurance premiums and cut employees’ co-payments by about 20 percent. In July 2007, Priority Health began offering HealthbyChoice Incentives to give employers an opportunity to save 13 percent on premiums under a combined rate, dual-benefit design, said Leon Lamoreaux, vice president of product development. “The insurance product has grown very successfully over the past year,” Lamoreaux said. “We have 500 employers making it available to the employees.” By May, HealthbyChoice Incentives had signed up 18,000 members, and it expects that number to double this summer, Lamoreaux said. Employees who choose healthy habits can cut their copayments in half, he said. Begun earlier this year as a pilot project with Ford Motor Co., HAP’s Health Engagement program offers members a wellness insurance product in which they can save on out-of-pocket expenses by agreeing to adopt a healthy lifestyle, said Michael Flasch, vice president of product development. Premium savings can range from 5 percent to 12 percent from the standard HMO group plan deFlasch sign, Flasch said. By May, Health Engagement had signed up five employers with 20,000 members, he said. “We always offered health improvement initiatives through the base HMO core product,” Flasch said. “The HMO product engages the employee, our member, in improving their health. It also requires the employer to be involved with having a smoke-free work environment.” Under all three plans, members are automatically enrolled in the benefit plan, which offers lower copays and deductibles as incentives to stay healthy or become healthy. The plans also offer financial incentives to encourage their members to take online health assessments. But members must register for mandatory health risk assessments online and then, if recommended, register for specific wellness programs. Experts say participation rates range from 50 percent to 80 percent for the online health risk assessments, but 30 percent to 40 percent for the online wellness programs. “There is only so much the online vendors can do on the phone,” said Edington. “Some health plans make one phone call to coach the member. I question whether that will change a person’s lifestyle.” During the first 90 days, members must complete an online health risk appraisal, see their doctor and agree to adopt a healthy lifestyle. If members don’t complete the requirements, they are bumped to the standard plan and pay higher co-payments and deductibles. “This is not a program where you will see dramatic results the first year,” Flasch said. “Employers will get immediate results through premium reductions, but it takes time to reap the benefits of healthy lifestyle choices and lower medical costs.” Employers that want to offer wellness programs at the job site can contract with vendors who offer wellness programs or who help companies develop their own programs. HealthMedia in Ann Arbor contracts with employers and insurance companies to offer online health risk assessments and health coaches. If the assessment identifies a high-risk medical condition, that employee is flagged for intervention. “We emulate the health coaching session on the Web, but there is no coach. We do it in an automated fashion,” said CEO Ted Dacko of HealthMedia. “We appeal to those interested in privacy and convenience who don’t want to call the personal coach.” Whatever strategy employers choose, studies show that employers with effective wellness programs can expect to see 500 percent lower absenteeism, 400 percent fewer disability claims and 350 percent lower health care costs, according to Watson Wyatt, a New York-based human-resources consulting firm. Jay Greene: (313) 446-0325, [email protected] AND THE DIFFERENCE BETWEEN MY PRACTICE FLYING OR FLOPPING. While other banks just kept saying, “We’re great at cash management,” my Citizens banker took the time to explain exactly what cash management was. Now, I know I do need it. I also needed a sweep account, remote deposit capture and so much more. DETROIT BUSINESS MAIN 08-11-08 A 20 CDB 8/7/2008 4:28 PM Page 1 Page 20 August 11, 2008 CRAIN’S DETROIT BUSINESS CRAIN'S LIST: LARGEST GROUP HEALTH CARE PLANS Ranked by 2007 revenue Rank Company Address Phone; Web site Top executive Blue Cross Blue Shield of Michigan/ Blue Care Network 1. 8. American Community Mutual Insurance Co. NA NA NA NA NA 1,611.5 1,677.5 -3.9 537,689 568,711 -5.5 358,980 129,301 2,098 47,310 638.4 595.8 7.1 1,311,259 1,250,513 4.9 0 0 0 560.3 468.6 19.6 209,111 NA NA 209,111 0 0 0 Medicaid, Medicare 414.0 261.9 58.0 160,502 142,619 12.5 160,502 0 0 0 Medicaid HMO 397.0 332.6 19.4 170,000 172,800 -1.6 NA NA NA NA 345.0 343.2 0.5 146,596 44,467 229.7 0 132,594 NA 14,002 310.8 204.7 51.8 133,250 119,149 11.8 133,250 0 0 0 244.0 306.4 -20.4 60,000 NA NA NA NA NA NA 181.7 140.0 29.8 66,059 63,840 3.5 66,059 0 0 0 HMO 166.7 122.2 36.5 64,487 64,000 0.8 64,487 0 0 0 HMO 42.4 29.1 45.4 NA 998,500 NA NA NA NA NA Vision insurance 36.0 35.6 1.1 402,000 442,053 -9.1 NA NA NA NA SVS Vision Managed Care 18.5 17.7 4.4 805,653 NA NA 600,000 NA NA 205,653 Co/op Optical Vision Plan Delta Dental Premier, Delta Dental PPO, DeltaCare, DeltaVision HMO, PPO, POS, EPO, Self-Funded, Medicare plans 1,311,259 Prescription drug plans PPO and Medicare plans HSA, HRA and other consumer-directed health insurance products Medicaid HMO, PPO, POS, Medicare, HRAs, HSAs, and HealthbyChoice 2000 Town Center, Suite 725, Southfield 48075 (248) 350-2082; www.vsp.com M. Scott Mitchell, account executive 140 Macomb, Mt. Clemens 48043 (586) 468-7370; www.svsvision.com Robert Farrell, president Co/op Optical Vision Designs 15. NA 5050 Schaefer, Dearborn 48126 (313) 581-3700; www.midwesthealthplan.com Mark Saffer, CEO SVS Vision Managed Care Inc. 14. NA 3011 W. Grand Blvd., Suite 1600, Detroit 48202 (313) 871-2000; www.totalhealthcareonline.com Lyle Algate, Executive director Vision Service Plan VSP 13. 1.8 34605 12 Mile Road, Farmington Hills 48331 (800) 852-9780; priorityhealth.com Michael Koziara, vice president eastern regional office Midwest Health Plan Inc. 12. 1,939.0 777 Woodward Ave, Detroit 48226 (313) 324-3700; www.hpmich.com David Cotton, president and CEO Total Health Care Inc. 11. 1,974.4 39201 W. Seven Mile Road, Livonia 48152 (734) 591-9000; www.american-community.com Michael Tobin, CEO and president Priority Health 10. Traditional Blue Cross Blue Shield, Blue Preferred PPO, Community Blue PPO, Healthy Blue Incentives PPO, Blue Care Network of Michigan HMO, BCN Healthy Living, Flexible Blue plans compatable with health savings accounts, MyBlue products in the under-65 individual market, Medicare Advantage, Part D Prescription Drug plans 3150 Livernois, Suite 175, Troy 48083 (248) 680-8920; www.humana.com Denise Christy, president, Humana, Michigan Health Plan of Michigan Inc. 9. 670,915 17117 W. Nine Mile Road Suite 1600, North Park Plaza, Southfield 48075 (800) 903-5253; www.glhp.com Chris Scherer, president and CEO Humana 7. 62,211 100 W. Big Beaver Road, Suite 600, Troy 48084 (888) 898-7969; www.molinahealthcare.com Jesse Thomas, president Great Lakes Health Plan 6. 3,247,693 30200 Telegraph Road, Suite 401 Bingham Farms 48025 (866) 864-9600; www.caremark.com Jason Klein, vice president, sales Molina Healthcare of Michigan Inc. 5. 648,278 D No. of members in other plans Name of group health care plans/types 2850 W. Grand Blvd., Detroit 48202 (313) 872-8100; www.hap.org Patricia Richards, interim CEO CVS Caremark Corp. L.L.C. 4. $19,400.0 B $16,300.0 B 19.0% 4,629,097 C 4,570,981 C 1.3% No. of enrolled members in POS plan Farmington Hills and Lansing (517) 349-6000; www.deltadentalmi.com Thomas Fleszar, president and CEO Health Alliance Plan 3. Revenue ($000,000) 2006 No. of enrolled members in PPO plan 600 E. Lafayette Blvd., Detroit 48226 (313) 225-9000; www.bcbsm.com Daniel Loepp, president and CEO Delta Dental of Michigan 2. Revenue ($000,000) 2007 No. of Total Total enrolled enrolled enrolled members in Percent members members Percent HMO/DHMO change year-end 2007 year-end 2006 change plan 2424 E. Eight Mile Road, Detroit 48234 (313) 366-5100; www.coopoptical.com Jackee Smith, CEO and president This list of leading Detroit-area group health care plans encompasses medical, dental, optical and other health care organizations. For companies with headquarters in Wayne, Oakland, Macomb, Washtenaw or Livingston counties, the figures are for the entire business. For companies with headquarters elsewhere, the figures are for business in Southeast Michigan only. NA = not available. B Total of premiums and premium equivalents that include both fully insured and self-funded business. C Does not include members that are part of Michigan-based groups but residing outside of Michigan. D Includes members belonging to Blue Care Network subsidiaries. LIST RESEARCHED BY ANNE MARKS AND JOANNE SCHARICH DBpageAD.qxd 8/4/2008 10:27 AM Page 1 DETROIT BUSINESS MAIN 08-11-08 A 22 CDB Page 22 8/7/2008 4:29 PM Page 1 August 11, 2008 CRAIN’S DETROIT BUSINESS BUSINESS DIARY ACQUISITIONS Modern Professional Services, a Troybased technical staffing service, has acquired Quality Technical Services Inc., a Mobile, Ala.-based staffing and recruiting service. Quality Technical Services will continue to operate as Quality Technical Services L.L.C. with offices in Houston, New Orleans, and Greenville, S.C. CALL FOR APPLICATIONS The Delta Dental Foundation, Okemos, encourages nonprofit oral health programs in Michigan to apply for grants through its third annual Community Mini-Grant program. Up to $70,000 will be awarded in 2008 with a maximum of $5,000 per grant. Special consideration will be given to applicants whose programs focus on improving the oral health of low-income children. Application deadline: Sept. 30. For applications and more information, visit www.deltadentalmi.com or call (517) 347-5333. CONTRACTS It’s not easy being green.. Be a part of WKH*5((1 0RYHPHQW ZLWKDQDGLQCRAIN’S 6HSWHPEHULVVXH As companies throughout Southeast Michigan step up their efforts to be greener, DGGPRUHJUHHQWR\RXUSURÀWOLQH 7KLVLVVXHZLOOJLYHCrain’s 492,600* print and ZHEUHDGHUVWLSVDQGLQIRUPDWLRQRQJURZLQJDGREENER business: 8VLQJOHVVHQHUJ\UHGXFLQJFDUERQ 6PDUWJUHHQHIIRUWVWKDWFXW HPLVVLRQVDQGZDVWH RSHUDWLQJFRVWV 5HF\FOLQJRSWLRQV +RZWRFUHDWHDVXVWDLQDEOHEXVLQHVV 7KHXVHRIUHQHZDEOHHQHUJ\ :DVWHWRHQHUJ\LQLWLDWLYHV Who should advertise? 7KLVLVVXHFRXOGEHLPSRUWDQWWR\RXLI\RXDUHLQYROYHG ZLWKFRQVWUXFWLRQHQHUJ\DOWHUQDWLYHHQHUJ\ELRIXHOV UHF\FOLQJGHYHORSPHQWFRPSDQLHVFRPPHUFLDOUHDO HVWDWHHQYLURQPHQWDOUHKDELOLWDWLRQHQYLURQPHQWDOODZ HGXFDWLRQUHVHDUFKHQYLURQPHQWDODFFRXQWLQJDQG HQYLURQPHQWDOEDQNLQJ 3ODFH\RXUDGWRGD\E\FDOOLQJRU HPDLOXVDWDGYHUWLVLQJ#FUDLQFRP S3 Entertainment Group, a Ferndalebased film services production company, has retained the services of Identity Marketing & Public Relations, Bingham Farms, to provide marketing and public relations support. Kirco Construction, Troy, has awarded Soil and Materials Engineers Inc., Plymouth, a contract to provide construction materials services for Village Lakes in White Lake Township. H.V. Burton Co., a Livonia manufacturer’s representative firm, announced a sales partnership with the Joseph M. Day Co., a Saginaw-based firm that serves customers in central and northern Michigan. The companies will promote and represent boiler products, waste heat recovery products, water treatment programs and related equipment and services. Ensure Technologies Inc., Ypsilanti, announced PC Mall Inc., of Torrance, Calif., will include Ensure’s XyLoc Solo product on the PC Mall Web site and in its catalog. Spin Advertising Inc. of Ann Arbor has been retained by Elias Cummings Development of New York to create the Web site for 11 Spring, a historic restoration and condominium project in Manhattan. Hobbs + Black Architects, Ann Arbor, announced the design and completion of Oakwood Healthcare System’s Southshore Medical Center. NLM, a Detroit logistics company, renewed an agreement with Ford Motor Co., Dearborn. NLM will remain a provider for Ford’s critical shipments (excluding air charter) and truckload deviations for North America. Global LT, a language and cultural services company headquartered in Troy, and Mango Languages, an online language learning software company, jointly announce the appointment of Global LT as an authorized marketer of Mango Languages’ proprietary Web-based language training programs. Web sites: www.globallt.com or www.mangolanguages.com. Tanner Friedman, Farmington Hills, has chosen to offer The Designate, a Birmingham-based on-call professional chauffeur service as a new employee benefit. The public-relations agency is enrolled in The Designate’s corporate program, which allows a company-paid ride home in an employee’s own car after an evening out. Wagner Design Associates, an Ann Arbor advertising and graphic design firm, completed a new Web site, capabilities brochure and industry proposals for Krieghoff-Lenawee Co., an Adrian-based commercial construction company. EXPANSIONS ,VVXH'DWH6HSW $G&ORVLQJ$XJ Federal-Mogul Corp., Southfield, is -DQ0DUFK0HGLD$XGLW now producing pistons at its new Powertrain Energy business segment facility in Araras, Brazil. The 10,300square-meter “greenfield” facility produces pistons, camshafts, and valve seats and guides for several vehicle manufacturers. The National Center for Manufacturing Sciences, Ann Arbor, has formed The Robotics Technology Consortium, a nonprofit subsidiary to speed the development and deployment of innovative defense ground robotics technology. Verizon Wireless, Southfield, has opened at 17370 Hall Road at the Partridge Creek Mall in Clinton Township. Telephone: (586) 228-4977. Tri-County International Trucks Inc., an international commercial truck dealership, has opened a new parts and service facility in Ypsilanti. The 21,033-square-foot building features shop space for 12 trucks with expanded work areas, a paint booth, an extensive parts showroom and an on-site technician training room. LITERATURE The Livingston County Convention and Visitors Bureau, Howell, has launched its interactive online visitors guide to the county’s attractions. The technology allows visitors to flip through the pages of the guide online. Other technologies are to be added to the bureau’s Web site in the future. Web site: www.lccvb.org. MOVES Bossdev, an interactive company that develops social media and online applications, has moved its headquarters from St. Clair Shores to Troy. LaFontaine Buick, Pontiac, GMC and Cadillac, to 4000 W. Highland Road in Highland Township. Tipping Point Inc., an advertising, marketing and public-relations agency, from Birmingham to Rochester. Telephone: (248) 955-0007. Web site: www.tippingpoint.us. Wynne-Jones Associates to the South Adams Square, Birmingham. WynneJones Associates are QuickBooks Advance ProAdvisors and a QuickBooks point-of-sale provider. NAME CHANGES Michigan Orthopaedic Specialty Hospital in Madison Heights has been renamed DMC Surgery Hospital. Saleen Inc., Troy, announced its Racecraft brand has become the Racecraft Division of performance vehicles. NEW PRODUCTS Controlled Power Co., a Troy manufacturer of commercial, industrial and medical electrical power solutions, announced its “NetMinder” UPS management and monitoring software suite. The suite is compatible with the company’s uninterruptible power supply products,as well as its centralized emergency lighting inverters. STARTUPS Peek-A-Bootique, a children’s clothing and gift boutique, has opened in the Boardwalk Shopping Center on Orchard Lake Road near Maple Road in West Bloomfield Township. Owners and sisters Marla Bednarsh and Alisa Berke feature more than 50 designer names. The boutique also has a special area to entertain children while their parents shop. Telephone: (248) 935-4503. DIARY GUIDELINES Send news releases for Business Diary to Joanne Scharich, Crain’s Detroit Business, 1155 Gratiot Ave., Detroit, MI 48207-2997 or send e-mail to jscharich@crain. com. Use any Business Diary item as a model for your release, and look for the appropriate category. Without complete information, your item will not run. Photos are welcome, but we cannot guarantee they will be used. DETROIT BUSINESS MAIN 08-11-08 A 23 CDB 8/8/2008 11:13 AM Page 1 CRAIN’S DETROIT BUSINESS August 11, 2008 PEOPLE CONSTRUCTION Debi Patrick to business development manager, specialty contracting division, Barton Malow Co., Oak Park, from business development manager, TIC-The Industrial Co., Ann Arbor. Patrick DISTRIBUTORS Gary Hibbler to corporate controller, Atlas Oil Co., Taylor, from controller, Metaldyne Corp., Plymouth. EDUCATION Jane HammangBuhl to dean of professional studHibbler ies, Marygrove College, Detroit, from chairperson of the business and computer information systems department. Also, Karen Wood to director of communications and marketing, from vice president, manager of editorial services, Comerica Bank, Detroit. FINANCE Chet Mowrey to partner, PricewaterhouseCoopers, Detroit, from director. Ron DiCicco to retail senior vice president for the Troy area, Independent Bank, Troy, from regional president, Citizens First Bank, Farmington Hills. Aaron Buck to IT operations manager, Burns & DiCicco Wilcox, Farmington Hills, from director of IS operations and technical services, Genesys PHO, Flint. HEALTH CARE Sven Gierlinger to administrator, hospitality services, Henry Ford West Bloomfield Hospital, West Gierlinger Bloomfield Township, from vice president of museum operations, the Detroit Institute of Arts, Detroit. Daniel Frattarelli to director of pediatrics education, Oakwood Hospital and Medical Center, Dearborn, from assistant professor of pediatrics and clinical pharmacology, Wayne State University, Detroit; and senior staff Frattarelli physician of pediatrics and emergency medicine, Henry Ford Hospital, Detroit. MANUFACTURING Brian McGuire to president of Monogram Aerospace Fasteners, TriMas Corp., Bloomfield Hills, from president of Norris Cylinder. Also, Jerad Van Auken to president of Norris Cylinder, from general manager. NONPROFITS Robert Bartlett to president, Michigan Colleges Foundation, Southfield, from senior management consultant to colleges, universities and other nonprofit organizations, Memphis, Tenn. Elliott Broom to vice president, museum operations, The Detroit Institute of Arts, Detroit, from hotel manager, the Page 23 CALENDAR IN THE SPOTLIGHT M. Safwan Badr has been named executive vice president and chief medical officer of the Detroit Medical Center, effective Aug. 26. Badr, 49, will retain his position as a professor of internal medicine at Wayne State University Badr School of Medicine and division chief for pulmonary, allergy, critical care and sleep medicine. He’ll step down as associate chair of the department of internal medicine. Badr replaces Thomas Malone, who was recently appointed president of DMC-Harper Hospital and DMC-Hutzel Women’s Hospital. Badr attended medical school at the University of Damascus in Syria and completed his residency at Cook County Hospital in Illinois. He completed a fellowship in pulmonary and critical care medicine at the University of Wisconsin in Madison. Badr is board certified in internal medicine, pulmonary medicine, critical care medicine and sleep medicine. WEDNESDAY How to Become a Government Contractor. 9 a.m.-noon. Procurement AUG. 13 Technical Assistance Center of Schoolcraft College. A class on doing business with the state and the federal government. Schoolcraft College, Livonia. $40. Contact: (734) 462-4438. American Business Women’s Association. 6:15 p.m. Meeting of the Novi Oaks Charter Chapter. Meets every second Wednesday of the month. Crowne Plaza Hotel, Novi. Contact: www.abwa-novi.org. p.m. Eastern Michigan University Michigan-Small Business & Technology Development Center. Designed to discuss the sources of funding including personal savings, family, friends, second mortgages, credit cards, nonbank microloans, special government loans, grants from government, angel investment, and venture capital. Eastern Michigan University MI-SBTDC, Detroit. $30. Contact: (313) 967-9295. THURSDAY AUG. 14 Third Thursday Networking. 4-6 p.m. Aug. 21. The city of Southfield, Southfield Chamber of Commerce and The Engineering Society of Detroit. Pi Restaurant, Southfield. Free. Contact: Rochelle Freeman, (248) 796-4161. MONDAY AUG. 18 How to Finance Your Business. 6-8 lister, (248) 855-7799. Java/Grub Events. 5:30 p.m. Java/Grub & Community, Re/Biz Net, and Community/Urban Transition Ltd. Real estate, business, and entrepreneur networking events on various financial topics. Java/Grub events are held every Monday except holidays. The JavaExchange Cafe, TechOne Building, Detroit. Free. Contact: (313) 832-4211. COMING EVENTS Alfred P. Sloan Awards. 11:30 a.m.-2 University of Michigan After-hours Networking. 5:30-7:30 p.m. Aug. 20. p.m. Detroit Regional Chamber. The Alfred P. Sloan Awards recognize businesses with 10 or more employees which exhibit exceptional workplace flexibility and employee effectiveness programs. MGM Grand Detroit. Free. Contact: Robert Troutman, (313) 5960478. UM Greater Detroit Alumni Chapter and Oracle. David Olivencia, an Executive Insight Program director and member of last year’s class of Crain’s Detroit Business 40 under 40; and Soojin Kwon Kho, director of admissions at the Ross School of Business. OracleTroy, Troy. Free. Contact: Dana McAl- How to Market Your Business. 8:45 a.m.12:45 p.m. Aug. 27. Service Corps of Retired Executives. Southfield Public Library. $45. Contact: (313) 226-7947. Detroit Lions Kickoff Luncheon. 11:30 a.m.-1:30 p.m. Aug. 27. Detroit Economic Club. Rod Marinelli, head coach, the Detroit Lions. A portion of the proceeds benefit Think Detroit PAL. Cobo Center, Detroit. $55 members, $60 guests of members and nonmembers. Contact: (313) 963-8547. CALENDAR GUIDELINES More Calendar items can be found on the Web at www.crainsdetroit. com. Please send news releases for Calendar to Joanne Scharich, Crain’s Detroit Business, 1155 Gratiot Ave., Detroit, MI 482072997, or e-mail jscharich@ crain.com. You also may submit Calendar items in the Calendar section of crainsdetroit.com. Hotel Palomar, Dallas. Petie Davis to business unit manager, sustainability programs, NSF, Ann Arbor, from business unit manager of environment, health and safety services. REAL ESTATE Geoffrey Linden to director of finance, Agree Realty Corp., Farmington Hills, from senior financial analyst, Brookdale Senior Living, Chicago. William Robinson Jr. to president, Attorneys Title Agency L.L.C., Farmington Hills, from Michigan manager, Talon Group, Okemos. SERVICES Gerie Greenspan to director of community relations, Glacier Hills Inc., and director of annual fund, communications and Glacier events, Hills Foundation, Ann Arbor, from associate director of development, Greenspan University of Michigan Museum of Art, Ann Arbor. Steve Dion to president, Droste Group, Troy, from chief human resource officer, Credit Acceptance Corp., Southfield. PEOPLE GUIDELINES Announcements are limited to management positions. Nonprofit and industry group board appointments can be found at www.crainsdetroit.com. Send submissions for People to Joanne Scharich, Crain’s Detroit Business, 1155 Gratiot Ave., Detroit, MI 48207-2997, or send e-mail to [email protected]. Releases must contain the person’s name, new title, company, city in which the person will work, former title, former company (if not promoted from within) and former city in which the person worked. Photos are welcome, but we cannot guarantee they will be used. Introducing David Yurman to Tapper’s Twelve Oaks Join us for a launch party on Saturday, August 16th . . West Bloomfield . 248.932.7700 Novi . 248.465.1800 www.tappers.com DETROIT BUSINESS MAIN 08-11-08 A 24 CDB Page 24 8/8/2008 11:36 AM Page 1 August 11, 2008 CRAIN’S DETROIT BUSINESS Strategy set up Michigan Financial for growth in hard times BY JAY GREENE CRAIN’S DETROIT BUSINESS In a thriving economy, many people don’t often think about their long-term investments and retirement planning. But when economic times turn sour, they are more inclined to seek financial advisers as they worry their nest egg won’t sustain them in an uncertain future. While most financial planners bemoan this phenomenon, a down economy in Southeast Michigan is one reason why Southfield-based Michigan Financial Cos. is flourishing. On the Grow is a Over the past feature that will four years, Michiappear in most issues gan Financial’s highlighting growing revenue growth companies, large and small. Know of a increased 211 percompany you think cent, to $8.1 milCrain’s should write lion in 2007 from about? Contact $2.6 million in Managing Editor 2004. Andrew Chapelle at The company is [email protected]. an insurance agency specializing in financial planning and wealth management. It also has offices in Sterling Heights, Dearborn, Birmingham and two in Ohio. But there is another reason why Michigan Financial is doing well: The growth strategy that CEO Nick Valenti implemented in 2004. “Our business plan was to grow by hiring OntheGrow experienced (insurance sales) reps and add more services that would be appealing to them,” Valenti said. Since 2004, the company has grown from 29 to 49 reps with 55 total employees, he said. Aside from hiring additional reps, Valenti said three of the company’s Valenti key growth strategies included hiring a financial planning coordinator, Bryan Mulvihill, to advise the representatives; a vice president of marketing and operations, Kim Stine, to promote the business; and a vice president of new business development, Kevin Kneip, to coordinate growth Stine strategies. Financial planning at the company is a process that begins with an analysis of an individual’s investment portfolio and economic situation. The analysis includes several meetings to evaluate the client’s specific financial goals and objecKneip tives, Kneip said. “We are the quarterback,” said Kneip. “Our approach is to help you and give you great ideas.” Besides insurance, Michigan Financial offers a variety of other services, including employee benefit design, asset management, individual money management and estate planning. About one-third of the company’s revenue comes from insurance and the remainder from asset management services, Kneip said. But the growth strategy required a major capital infusion, and a business affiliation name change. For eight years, Valenti headed the Farmington Hills office of W.S. Griffith Securities Inc., a broker-dealer based in San Diego. At the time, Michigan Financial was affiliated with Phoenix Life Insurance Co. But in May 2004, Phoenix Life decided to sell W.S. Griffith and leave the investment brokerdealer business. “It was difficult for a few months simply trying to decide who we wanted to affiliate with and the uncertainty,” Valenti said. “In our business, you have to be affiliated with someone to stay in business.” Several suitors quickly materialized, including New York Life Insurance Co. and John Hancock Life Insurance Co. of Boston. “We chose John Hancock because of their stability and they helped us with access to capital,” Valenti said. The company signed the agreement with John Hancock in June 2004. The growth strategy now employed by Michigan Financial has caught the eye of competitor Kathy Elston, COO of J.S. Clark Agency, a Southfield-based broker-dealer specializing in life and health insurance. “We are just getting to understand what they are doing with financial planning,” Elston said. “Generally, agencies focus on health and life. There also is the financial side and the property casualty line. It is not unusual for an agency to expand into any one of those three.” Elston said one reason Michigan Financial may have decided to expand into financial planning is because of the competitive market in Southeast Michigan. “It is very difficult to acquire new business with companies downsizing and going out of business,” she said. “It all comes down to service. We are doing more customer service than before. We have 99 percent retention rate with our clients.” With the automobile industry contracting, another growth line has been offering career transition services, Stine said. Family-business succession planning also has been a key growth area, said Kneip. For example, Valenti said a former client in his 50s, who was the founder of a manufacturing business, died unexpectedly. “Four years before we did a financial, business and estate plan for him. This allowed the business to stay in the family because he had thought about who his successor would be,” Valenti said. Without a succession plan that included a life insurance policy, the 25-employee business could have closed, Valenti said. “The insurance money allowed them to pay their bills and buy them time to work through the change,” he said. Jay Greene: (313) 446-0325, [email protected] Everyone needs a place to call home. The same applies to health care. The key to good health is working with primary care physicians who know you and your family and can help you make choices that will fit your needs. It’s a place that coordinates all of your care from regular checkups to specialized treatment. It’s a place that uses the newest technology while providing individualized health care. Medical Network One primary care physicians believe everyone should have a medical home. Better for Michigan health care. Better for Michiganians! 4986 Adams Rd. Rochester, MI | 248.475.4880 miteam.org | mednetone.net DBpageAD.qxd 8/6/2008 4:11 PM Page 1 -AKESUREYOUR WORKINGCAPITALIS ACTUALLY WORKING The Sweep Option for your practice. )TGETSMONEYTHATSJUSTSITTINGINYOURCHECKING ACCOUNTWORKINGAGAIN!DDTHE3WEEP/PTIONTO"USINESS#HECKING%LITEANDEARN INTERESTONYOURIDLEBALANCESWHILEKEEPINGYOURMONEYLIQUID4HE3WEEP/PTIONIS JUSTONEOFTHEMANYCASHmOWTOOLSAVAILABLETOHELPYOUMANAGEYOURPRACTICE,ETUS CUSTOMIZEABUSINESSCHECKINGACCOUNTFORYOUTODAYANDSTART EARNINGINTERESTTONIGHT *USTSTOPBYANY.ATIONAL#ITYBRANCHVISIT.ATIONAL#ITYCOMBUSINESSCHECKINGORCALL ONEOFTHEFOLLOWINGHEALTHCAREBUSINESSBANKINGSPECIALISTS *EFF$IAZ $ARRIN-ACKMIN %D0LETZKE 0ERSONAL"ANKINGs Business Bankings)NVESTMENTSs-ORTGAGE,OANS .ATIONAL#ITY"ANK-EMBER&$)#sÚ.ATIONAL#ITY#ORPORATION® DETROIT BUSINESS MAIN 08-11-08 A 26 CDB 8/8/2008 11:13 AM Page 1 Page 26 August 11, 2008 CRAIN’S DETROIT BUSINESS Crews lead race to prep Belle Isle for Grand Prix BY BILL SHEA CRAIN’S DETROIT BUSINESS While crews today are repairing the well-trod fairways and greens at Oakland Hills Country Club in Bloomfield Township, site of last week’s 90th PGA Championship, others are hastily preparing Belle Isle for metro Detroit’s next big sporting event. The Detroit Belle Isle Grand Prix is set for Aug. 29-31, and everything is ahead of schedule, said Bud Denker, race chairman and a senior vice president for Bloomfield Hillsbased Penske Corp. His boss, Penske Corp. founder Roger Penske, brought the open-wheel auto race back to Detroit last year after a sixyear hiatus. “We’re ahead of plan, about four or five days, in terms of getting things set up on the island,” Denker said. “We learned a lot from last year.” Crews have been setting up 2,000 concrete barrier walls, 10,000 tires for barriers and 50,000 feet of temporary fencing along the 2.07-mile, 14-turn street circuit track. The old race, run from 1982 to 2001, used downtown streets. Six grandstands to hold some of the 100,000-plus people expected for the races already are up. Denker Penske ordered the seats increased from 18 to 21 inches wide, Denker said. Corporate sponsorship also has grown, despite the PGA Championship’s presence earlier in the month and Michigan’s tough economy, Denker said. Just a single 50-person corporate hospitality chalet remains available out of the 45 on the island. Construction is already com- MARKET PLACE ANNOUNCEMENTS & SERVICES BUSINESS SERVICES PART TIME CONTROLLER. Make or keep your business financially profitable at less than half the cost. [email protected]. LEGAL SERVICES WE COLLECT MONEY JUDGMENTS! and Commercial/Consumer Bad Debts Experts in Locating Assets Contingency Fee Basis LAW OFFICES OF L.J. FRANK, P.C. (248) 424-9777 or [email protected] collectionlaw-firm.com INVESTIGATIONS – CORPORATE Conducted by Retired FBI Agents RK International, Inc. 100 Kercheval Avenue, Suite A Grosse Pointe Farms, MI 48236 www.rkinternationalinc.com Phone: (313) 886-4492 FILE STORAGE Large scale (MAXI) storage units. Great for RV’s, boats, cars, warehousing. 14 x 14 door, heated, 24/7 entry, secured. Buy/Lease - I-94 & 26 Mile Area 800-945-5816/www.stclairstoragecondos.com FINANCIAL SERVICES CAPITAL AVAILABLE VIDEOCONFERENCE SERVICES Complete Videoconference Services Job Interviews, Legal Depositions, Business Meetings Convenient Troy Location, 3 Rooms, 1-200 Capacity Midwest Video 248-583-3632 www.midwestvideo.com EQUIPMENT & MERCHANDISE OFFICE FURNITURE MUST SELL, OFFICE CLOSED Desks $99, Chairs $39, Files $49, Partitions $50, Lateral Files $99, Cubicles, Office Phone Systems Call (248) 548-6404 or (248) 474-3375. TELECOMMUNICATIONS If you have an opportunity that requires funding but does not fit traditional banking parameters - contact us. We do not fund senior/mezzanine debt or working capital. We focus on special situations with investment size ranging $500K to $10 million. Total committed capital of $100 million. We have an in-house legal team, can think "outside the box" and act quickly. LUCENT . . . AVAYA. . . PARTNER. . . MAGIX. . . VOIP. . .LEGEND . . . MERLIN. . .SPIRIT Systems/Parts New/refurbished. Omnicall Equipment Corp. (248) 848-9282 WE HAVE USED PHONES Nortel, Lucent, phone systems. Almost any new or used phone available. Expert installation available. Call (248)548-6404 Please refer to www.etccapital.com or call 248-560-0203 ext. 101 for more information. Advertise your goods and services in Crain’s Detroit Business plete on 35 chalets. Chalet rentals range from $27,500 to $105,000. This year’s races will have 69 corporate sponsors, up 10 over last year, Denker said. “It’s amazing, especially with the PGA right in front of us,” he said. “Companies have stepped up and helped this year.” He declined to offer a specific revenue projection, but did say revenue is up 9 percent over last year. As for the wider economic impact, the races should bring $60 million to $75 million into the area, he added. It was estimated last year at $53 million by the Detroit Metro Convention and Visitors Bureau. One significant Grand Prix sponsor is Charter One, which has 119 branches in Michigan and has teamed with parent Royal Bank of Scotland to use both the Grand Prix and PGA Championship as marketing opportunities. “We were always planning on being involved in both,” said Sandra Pierce, president of Charter One. “The Grand Prix further solidifies Detroit as a host of world- renowned sporting events. We’re going to be in front of hundreds of millions of households over a three-week period.” The race and golf tournament are good for the area, which Pierce said helps the bank beyond just marketing efforts. “It’s another initiative that helps us in regional revitalization,” she said. “Our organization wanted to support that. Yes, it’s branding and great marketing, but frankly, it drives our local economy.” Ticket sales are ahead of last year. Seventy-five percent of the 27,000 daily tickets have been sold, Denker said. Race officials declined to give an attendance number for last year’s races, which included American Le Mans Series and open-wheel IndyCar Series, but did say it was more than 100,000 for the three days. A new attraction for fans this year is the addition of a SCCA Pro Racing SPEED World Challenge GT Championship race on Sunday. The race features Cadillacs, Vipers, Mustangs, Corvettes and Porsches. Denker said another reason sales are up is because Toronto and Cleveland won’t have openwheel auto racing for the first time in 20-plus years, and fans will be taking special trains to Detroit from Ontario. Rock bands Sugar Ray and Everclear will be performing on the island, too. Ticket information is available at detroitgp.com. After spending $5.5 million on infrastructure and aesthetic improvements on the island in 2007, Penske is laying out $500,000 for further upgrades this year, Denker said. “After the race, we’re going to repave the back of Belle Isle. We’re going to fix the drainage system there.” The Albert Kahn-designed casino is getting spruced up, and there will be more lighting added and landscape work done. Penske and DTE Energy Corp. are working together to repair the vandalized Scott Fountain to the tune of $100,000. Denker said the fountain will be operating in time for the race. Bill Shea: (313) 446-1626, [email protected] Even big-name coffee shops need good locations to thrive BY NATHAN SKID CRAIN’S DETROIT BUSINESS Seattle-based Starbucks Corp.’s recent decision to close eight stores here as part of a nationwide retrenchment was a reminder that location still matters, even when you have one of the nation’s bestknown brand names. Matt Knio, owner of Birmingham-based Cannella Patisserie and Creperie, knows that lesson well. Knio is a graduate of the Academie de Versailles in France and began his career as a pastry chef for the Ritz-Carlton in Paris. In 2002, six months after moving to the Dearborn Ritz-Carlton, he decided to open a pastry and coffee shop in the Applegate Square Shopping Center at 29681 Northwestern Highway in Southfield. “Honestly, I believed in my product to the point that I thought people would continuously buy my product if they just tried it,” Knio said. “The reality is that location is the most important factor. You can’t just trust your product, you have to trust your location.” The site wasn’t very visible from the road, which meant he couldn’t take advantage of the heavy traffic that passes by each day. By the end of 2004, just 1½ years after opening, Knio had drawn only $110,000 in total revenue. He considered returning to the RitzCarlton or leaving Michigan to reopen in France. “The only reason I didn’t make the move was because a customer came to me and said, ‘This needs to be in Birmingham.’ ” Knio opened at 300 Hamilton NATHAN SKID/CRAIN’S DETROIT BUSINESS Matt Knio of Cannella Patisserie and Creperie found out the hard way that location is critical to survive in business. Row and last year generated $580,000 in revenue and expanded operations to include selling pastries wholesale. This year, he expects to surpass $600,000 in revenue. He has opened an industrial kitchen in Hamtramck, and a second store at 711 S. Main St. in Royal Oak is due to open in January in a joint venture with Cloverleaf, a premium wine seller. “Our previous location had no foot traffic. It would have taken a lot of advertising to succeed there,” he said. “Honestly, I did not have enough money for that.” Tom Butz, vice president of operations for East Lansing-based Biggby Coffee, has a somewhat different view. “Location is important, but we have a store in Kalamazoo that is not on the best piece of real estate,” he said. “However, word of mouth marketing, great operators, and a great product can make a B or a C property perform like an A site.” Biggby continues to double in size every two years. Its 100 stores in nine states generate $40 million in revenue; 66 more are in some stage of completion. And even Starbucks plans more stores here. Joe Dallacqua, regional vice president of Starbucks’ Great Lakes and New England regions, said the company will open two new stores in metro Detroit by the end of the year. “Real estate is a lot more art than science. When looking for a location, a most educated guess is made,” Dallacqua said. “But sometimes markets move and economics change. Many factors go into the sales life of an individual store.” Nathan Skid: [email protected], (313) 446-1654 DETROIT BUSINESS MAIN 08-11-08 A 27 CDB 8/8/2008 10:27 AM Page 1 CRAIN’S DETROIT BUSINESS August 11, 2008 Page 27 Plans for Waterford Twp. baseball team round second, head for third BY CHRISTIANA SCHMITZ SPECIAL TO CRAIN’S DETROIT BUSINESS Plans for a minor-league baseball team are coming together for Baseball Heroes of Oakland County L.P., a group formed in January to bring a $9.5 million ballpark to Waterford Township. Baseball Heroes purchased the Midwest Sliders, a Frontier League team, in January. They’re operating the Sliders as a travel squad during the 2008 season. Come opening day 2009 — scheduled for mid-June — the Midwest Sliders will become the Oakland County Cruisers. They’ll be based at the new stadium, called Diamond at the Summit, next to the Summit Place Mall, according to the plans. A financial package to fund the stadium and team is in progress. Baseball Heroes hired Leonard Capital Markets of Troy and Dickinson Wright P.L.L.C.’s Ann Arbor office to work on an equity and debt financing package. Rob Hilliard, president and COO of Baseball Heroes of Oakland County, said that the package will make up the difference between the cost of the $9.5 million stadium and the $4 million that Baseball Heroes has already invested. Baseball Heroes also hired Dave Miller as a part-time consultant, Hilliard said. He retired in 2004 after 37 years with the Hilliard Detroit Tigers. Miller had been director of baseball administration and senior adviser of minor leagues for the Tigers. The effort will bring 15 full-time and 60-80 part-time jobs to Oakland County, Hilliard said. Stadium construction is expected to begin this month or in September. In the off-season, the Cruisers’ manager and some players will staff a baseball academy across from the team’s retail outlet in Summit Place Mall. Baseball Heroes signed a 10year lease for the 14,576-square-foot space in July. The business is to open in November. A shared parking agreement for the stadium was finalized last month. Baseball Heroes made a deal with Timina L.L.C., which owns Summit Place Mall, for 800 spaces, and with Summit West Investments REAL ESTATE COMMERCIAL PROPERTIES AUCTIONS Real Estate Auction Your Chance to Vacation Year Round! Lake Front Living...this resort home could be yours. Located on Lake Erie. 4049+/- Sq. Ft., 4 Bedrooms, den, home theater room, views of the lake from every room. 2 Private bedroom balconies, exquisite decor, in-ground heated pool, 2 docks for 40+ Yachts plus private marina, the amenities are endless! For weekends, Call today for a brochure! weeks on end or an eternity, it’s your 2078 Driftwood Ln, Oregon, OH 43618 chance for an endless vacation! Rose Auction Company, LLC On-site Saturday Sept. 14th at 1pm Beth bethroseauction.com Preview & Registration at 11:30am Beth Rose Call 419-534-6223 for a Private Showing! CAI Auctioneer Greater Detroit Real Estate AUCTION Homebuyers, Investors, Speculators 100 New Homes BUSINESS OPPORTUNITIES Modern Car Wash in Capac for sale. Owner moving. Must see! Reduced to $585,000. Liquor store, smoke shop, dollar store or other, Mt. Clemens traffic light location, beautiful clock tower architecture, 13,000 SF. Only $779,000, L/C terms. Clinton Twp redevelopment. Traffic light site, 1 - 5 acres. Formerly Parkway Chrysler Plymouth. Priced to sell. and Summit North Investments for 500 spaces. Additional shared parking will come from Oakland County Schools. The agreement will mean shared parking and shared cost of maintenance, Hilliard said, and will allow stadium signs along Telegraph Road, Hilliard said. Baseball Heroes hired Royal Oak-based FX Architecture for design and Farmington Hills-based McCarthy and Smith as construction manager. Construction bids will be awarded over the next few weeks, Hilliard said. COMMERCIAL PROPERTIES DOWNTOWN ROYAL OAK PRIME OFFICE/RETAIL 400 sq. ft. – 5,200+ sq. ft. Historic Washington Square Plaza Located in Downtown Royal Oak Oakland County’s Most Vibrant Retail – Restaurant – Business Destination INVESTMENT OPPORTUNITIES Apartment complex, New Baltimore, 31 units. $869,000. Grosse Pointe Class A office building. 90% leased. 11,170 RSF total. 9.5% Cap. $1,425,000. Mt. Clemens, for sale, Class A high tech flex space. 2 free standing adjacent buildings, 5,100 SF each, partial seller lease back available. $995,000. Ideal health club location. 13,000 SF sale or lease on Gratiot, Mt. Clemens/Clinton Twp. border. • • • • • • Architectural Excellence Walkable High-visibility Retail Location Conference Center Outdoor Deck Many Amenities COMMERCIAL OPPORTUNITIES THE GOLDEN CORRIDOR SE corner M-59 & Gratiot, join WalMart, Ford & banks. 7 acres. $3,900,000. Port Huron, 17,500 sq. ft. Fully occupied industrial multi-tenant. 10%+/- Cap. $595,000, L/C terms. Romulus, corner site, 18 acres, 980 ft Merriman frontage at Beverly. Possible re-zoning. Only $630,000! Reduced. Traffic light site, 22 Mile & Gratiot, Chesterfield. 8.4 acres, 686 ft of frontage, C3 zoning. Only $979,000, L/C possible. Chrysos Development & Management Co. (248) 548-9900 WATERFRONT PROPERTY A U C T I O N Lakeside Estate on Mackinac Island Mackinac Island, Michigan Bidding starts at $100,000 Originally Priced From $100,000 – $450,000 Opening Bids from $30,000 August 21 r4R'U ! 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DETROIT BUSINESS MAIN 08-11-08 A 28 CDB 8/8/2008 11:40 AM Page 1 Page 28 August 11, 2008 CRAIN’S DETROIT BUSINESS Auto sales slow down after rush for lease deals BY NANCY KAFFER CRAIN’S DETROIT BUSINESS Following a rush in sales at the end of July, some metro area auto dealers say August is shaping up to be slow. Chrysler Financial L.L.C., the financial services arm of Chrysler L.L.C., announced last month that it would end its leasing program Aug. 1, and GMAC Financial Services said it would restrict its lease offerings, reducing the number of below-standard-rate leases in the U.S. and ending GMAC-financed leasing in Canada. At Sterling Heights Dodge, Chairman Tony Viviano says he attributes slow traffic in part to a late-July rush of customers eager to snag a deal before the leasing program ended. “It hasn’t been a rip-roaring week,” he said. “But it’s not surprising, coming from doing 15 to 20 a day, that you’d drop to one or three or four.” Viviano said he’s confident that a healthy package of Chrysler incentives will lure lease customers into purchase agreements. “We’re still doing leasing,” Viviano said, with lease financing through banks. But the low interest rates and lease incentives Chrysler Financial offered are absent from bank-financed leases. “We took one car, ran a lease, and ran the same car as buying it,” he said. “It was almost identical. We can sell you a truck at 50 percent off right now.” Chrysler is offering zero percent interest for 72 months on select vehicles, steep discounts off sticker prices, cash back and lease loyalty incentives toward purchase, while GMAC is offering cash incentives on GMC trucks and on some new crossovers and cars. Such discounts should drive business from leasing to buying, said David Cole, executive director of the Center for Automotive Research, an Ann Arborbased nonprofit automotive think tank — but Cole cautions that such prices won’t be the new norm. “The buys on new vehicles right now are unbelievable — why lease when you can buy for the Cole same monthly payment?” he said. “But you can count on prices going up once we get better balance between market and capacity.” Matt LaFontaine, general manager of Dearborn-based LaFontaine Automotive Group, said sales at the dealer’s Chrysler shops have been slow, but he’s not sure that’s tied to the end of Chrysler-backed leasing. “I think it’s consistent with early-month traffic,” LaFontaine said. “Typically, regardless of what happens over last 30 days, you’re busy at the end of the month and always slow to get started. There are still a lot of customers out there.” LaFontaine said dealers will have to work hard to keep customers. “One of the most important things leasing did over the last 15 to 20 years was disconnect a lot of people from their loyalty,” he said. “They’re just loyal to their monthly payment, not a car, manufacturer or dealer. … We’ve done a real good job of keeping customers loyal to us, but it’s going to make it important for dealers to work hard.” Look for used car sales to increase, Viviano said. “When you could get leases at ridiculously low prices, who would buy a used car? But now used car business is going to perk up,” he said. Chrysler’s announcement came the week before Viviano launched a new 14,000square-foot truck and fleet commercial center, a three-year, $6 million investment. “It was a long half-hour drive from (a meeting where Viviano learned of the change),” he said. “I thought. ‘Wow, you dummy, what are you doing now? Three years of planning, and your work is for nothing.’ ” But once the smoke cleared, Viviano said he expects his dealership’s renewed emphasis on commercial sales to bear fruit — commercial vehicles are often business necessities, not discretionary spending, he said. Cole said the Detroit 3 are well-positioned to move forward. “The domestics have taken so much of the costs out, that once the new labor contracts kick in they should be profitable,” he said. “It’s a much more robust business model for the longer term. With the cost-down that is occurring, they’re positioning themselves finally to be profitable on everything.” Viviano, who estimated that 90 percent to 95 percent of his monthly business had been leasing, said there’s a re-education element involved in shifting back to buying — similar to the introduction of leasing programs. “When they came in with leasing, nobody wanted to lease, then everybody started thinking this is the way to go,” he said. “We didn’t get into this overnight, and you don’t get out of it overnight.” Nancy Kaffer: (313) 446-0412, [email protected]. CAREER MOVES Broad range of candidates advance to GENERAL Fundraising Director general election for Macomb charter panel BY CHAD HALCOM Working with the President and CEO, the Fundraising Director is responsible for building revenue with minimal supervision. It is expected that the individual that assumes this position will increase revenue, develop new sources of income and maintain current revenue streams through successful fundraising. The Director will coordinate fundraising efforts with Roundtable staff and volunteer staff. The Director will work closely with program directors to understand the Roundtable’s mission and programs and develop strategies for funding such programs. The Director will also assist the staff in other fundraising and public relations activities as needed. Position requirements include: Degree from an accredited university or the equivalent of 3-5 years of work experience related to fundraising, strong and proven ability to relate with individuals and institutions, excellent verbal and written communications skills, and a passion for the Michigan Roundtable’s Mission and humanitarian causes. Send Resume to: Executive Coordinator Michigan Roundtable for Diversity and Inclusion 525 New Center One 3031 W. Grand Boulevard Detroit, MI 48202 fax: (313) 870-1501 ADMINISTRATIVE SALES Portfolio Administrator GROUP HEALTH INSURANCE SALESPERSON Growing Troy agency seeks group health producer, preferably with an existing book of business. Exciting opportunity for a self-motivated individual. Respond confidentially with resume to: [email protected]. Ambassador Capital Management is an institutional investment advisory firm located in Downtown Detroit and dedicated exclusively to the fixed income investment management business. We are seeking an experienced Full-Time Portfolio Administrator to participate as a member of our support team to service our clients and business associates. The ideal candidate must be organized, detail-oriented, and able to work in a small office environment. We have fewer than 15 employees and the right individual will get a broad range of experience and be a part of a vibrant and growing company. A positive, responsible attitude is essential. Proficiency with the Microsoft Office applications is required and experience with Advent Axys software is a plus for this position. A Bachelor’s Degree is preferred, but not required. This position requires strong written and verbal communication skills, the ability to deal with multiple and diverse tasks, some general office and basic research background. Compensation is commensurate with experience Please submit Cover Letter and Resume to: [email protected] No phone calls please. POSITIONS SOUGHT Sales, Executive Management, Business Development, Marketing I have 21 years experience in above areas. Family man looking to secure long-term, stable position. Reliable, professional, team oriented, proven track record. Contact: [email protected] Call Us For Personalized Service: (313) 446-6068 CLOSING TIMES: Monday 3 p.m., one week prior to publication date. Please call us for holiday closing times. FAX: (313) 446-1757 E-MAIL: [email protected] INTERNET: www.crainsdetroit.com/classifieds Confidential Reply Boxes Available PAYMENT: All classified ads must be prepaid. Checks, money order or Crain’s credit approval accepted. Credit cards accepted. See Crainsdetroit.com/Classifieds for more classified advertisements CRAIN’S DETROIT BUSINESS Macomb County politicos may have to collaborate on a charter commission to create an executive form of government, since no single group managed to dominate primary elections last week. Candidates with support from business and labor leaders in the ballot action committee Charter Equals County Executive met with mixed results among the field of 151 candidates seeking the 26 commission seats. So did a group of local attorneys, some officials and members of a few prominent political families in the same race. “I definitely think we need a commission that involves every one of those groups in the process — and based on the election results it seems maybe we’ll have that,” said attorney Carrie Fuca of Carrie Fuca P.L.L.C. and Democratic primary winner of District 18 in Harrison Township. “We’ve got a little bit of everybody advancing to (the general election), and that’s great.” Fuca, a former chairwoman of the Macomb County Bar Association Young Lawyers Section, advances with 1,261 votes to face Adam Wit, the Republican primary winner and Harrison Township deputy supervisor, who enjoyed some backing from the charter group members. Turnout was low in the primaries. Of the 151 candidates vying for commission seats, not one garnered more than 2,500 votes and just 18 claimed more than 1,000. The election winnowed the field of candidates to one Republican and one Democratic nominee for every district. Winners face off in the Nov. 4 general election. The commission, when elected, will craft a charter to define the structure and duties of the government, including creating a county executive, after voters passed the ini- Davis tiative by ballot action committee in May. Melanie Davis, president of the Macomb County Chamber, edged out three other Republicans for District 7 in Sterling Heights with 482 votes. She will face off against Democratic winner Elisabeth Sierawski, who also defeated three other contenders with 1,125 votes. “Running for a political office is unlike anything I’ve ever done, in that you are putting in a lot of activ- ity and investment and you don’t know until the ballot box what effect or return there is on that,” Davis said. “In private sector activity, you sometimes get at least incremental results from your work. But I’m pleased at (these) results.” Out of contention following Tuesday’s primary are the charter committee’s two co-chairs — Grace Shore, CEO-COO of the Macomb County Chamber, and Ronald Robinson, owner of Ronald E. Robinson CPA Inc. in Clinton Township. Shore was among seven candidates eliminated in District 15 for Macomb and Ray townships. Robinson finished second to Clinton Township Fire Marshal Robert Smith Jr., a Democrat who will face Republican winner and Clinton Township Supervisor Robert Cannon. Other candidates with charter committee support who succeeded in the primaries included: Vincent Viviano, community development officer for Warren Bank, who edged out five other Republicans in Shelby Township’s District 12; and Donna Cangemi, president of the American Federation of State, County and Municipal Employees Local 411 and Democratic winner for Sterling Heights’ District 8. Lawyers who advanced to the general election included Fuca, attorney and former county commissioner Tom Rombach, former bar association president Gary Anthony, Jacob Femminineo Jr. of Femminineo Attorneys P.L.L.C. and defense attorney James Maceroni. Fuca and Rombach both said the opportunity to craft a legal document like a charter was an obvious lure for many attorneys. Lawyers eliminated last week included George Constance, former Warren city attorney and current human resources director; J. Russell LaBarge Jr., partner, Johnson Rosati LaBarge Aseltyne & Field P.C. in St. Clair Shores; and retired Warren district Judge Robert Chrzanowski. Alisha Baker, a customer service director for DuPont Automotive who had support from charter committee members, lost to Femminineo in District 17 by 897-848 votes, in one of the closer races. Baker said she now expects Femminineo as the Democrat to easily defeat Republican winner Lyle Koch. Davis said the chamber is arranging interviews with all the primary winners and will release a list of contenders the organization recommends or deems qualified for the commission before the Nov. 4 election. Chad Halcom: (313) 446-6796, [email protected] DETROIT BUSINESS MAIN 08-11-08 A 29 CDB 8/8/2008 5:55 PM Page 1 CRAIN’S DETROIT BUSINESS August 11, 2008 Fund: Where’s the cash? ■ From Page 1 As of Friday, though, Bates hadn’t got his money back. “I have not. It did not happen,” he told Crain’s. Bates said when he heard he had donated to the mayor’s fund instead of to a children’s organization, “I felt like an idiot. How would you feel?” He declined to elaborate about how the donation came about but said that the solicitation to him was not made by anyone on the mayor’s staff. “I live in Detroit and I want good things to happen for the city, but he’s not one of them,” said Bates, referring to the mayor. “I don’t think he’s done anything for the city.” As Kilpatrick’s bills accelerate — now that he has two felony assault charges to fight in addition to his Textgate perjury, obstruction of justice and misconduct in office charges — the money coming into his legal defense fund has slowed to a trickle. The fund, announced on March 27, had raised $185,600 by the end of June, according to the form filed with the IRS. But it raised only $800 in June and didn’t collect a dime in the last three weeks of the month. In April, the fund raised $101,300. The fund reported raising $83,500 in May, although that total is in dispute. July figures aren’t available. By the end of June, the fund listed payments to attorneys of $165,000 — $10,000 to the James C. Thomas Client Trust of Detroit, $75,000 to James C. Thomas P.C. of Detroit and $80,000 to the Cochran Law Firm of Farmington Hills. Not listed were any payments to the mayor’s highest-profile and reportedly highest-paid attorney, Chicago-based Dan Webb, who supposedly bills $700 to $750 an hour. If the mayor wants to know who to blame for his fund’s shortfall, he can look to its membership committee. Of the original 11 members of the committee, only two have made contributions. Gregory Eaton, a co-owner of the Metro Cars passenger service and a lobbyist with the Lansing firm of Karoub & Associates who is listed as the fund’s custodian of records, donated $5,000 on May 14, and Donald Davis, chairman of Detroit-based First Independence National Bank, is listed as having made contributions of $25,000 on April 4 and $25,000 on May 22. But Davis told the Detroit Free Press in July that he didn’t make the second contribution and had resigned from the membership committee because fundraising was too difficult. Thursday, Davis and his partner in Queen Lillian L.L.C., Chris Jackson, sued the city of Detroit after officials decided to sell a section of Tolan Park to the Detroit Medical Center instead of to their development company. The city’s Planning and Development department had said recently that it had brokered a deal to have DMC and Queen Lillian share the land for their projects. But Davis and Jackson say there was no deal. The DMC wants the land for a parking lot next to its proposed Children’s Hospital Pediatric Center. Davis’ bank and two other minority-owned banks, City National Bank of New Jersey and Liberty Bank & Trust of New Orleans, own West Bloomfield Township-based Minority Alliance Capital L.L.C., which in May was awarded a $4.5 million contract by the city of Detroit to provide software and services for a new cashmanagement system. Original membership committee members whose names don’t show up on the IRS form among the 31 who made donations are: The Rev. Horace Sheffield III, pastor of New Galilee Baptist Church in Detroit; Reginald Turner, past president of the National Bar Association and State Bar of Michigan; David Baker Lewis of the prominent Detroit law firm of Lewis & Mundy P.C., which by the time the defense fund was formed had already run up a bill of more than $300,000 defending the mayor; S. Martin Taylor, retired executive vice president of DTE Energy Co.; Donald Watkins, a banker based in Alabama; Willie Brown, the former mayor of San Francisco; Marianne Spraggins, president of Buy Hold America, a New York consulting company; Michael Eric Dyson, a radio talk show host and professor at Georgetown University; and Danny Bakewell, a California real estate developer. When the fund was formed, Detroit native and TV personality Judge Greg Mathis was briefly listed as a committee member, but his name was taken off the Web site when he denied participation and called for Kilpatrick’s resignation. Turner is also no longer a member of the committee. The biggest donations were $50,000 from Clinton Townshipbased Medici Homes Inc., on April 29; the nondisputed $25,000 from Davis; $10,000 each from Brian Jeffries, president and CEO of Detroit-based Ambassador Capital Management, PricewaterhouseCoopers partner Darrell Burks of Bloomfield Hills and the Waste Management Service Center in Houston. Conspicuous by their absence were donations from prominent leaders of the local business community who have been past supporters of the mayor, including Jim Nicholson, president and CEO of Detroit-based PVS Chemicals Inc.; Penske Corp. Chairman Roger Penske and Peter Karmanos Jr., chairman and CEO of Detroitbased Compuware Corp. In March, following the formation of the defense fund, Jason Vines, a senior vice president at Compuware, told Crain’s that he’d talked to his boss, who was on vacation in the Bahamas, and “Peter did not give any money to the mayor’s defense fund, and Compuware didn’t give any money. But if we would have been asked, we would have.” On May 16, during a Compuware celebration in downtown Detroit, Karmanos told the Free Press that Kilpatrick “certainly should not resign because he’s the best we have.” Sheffield, Davis and Lewis did not return calls Friday. Tom Henderson: (313) 446-0337, [email protected] A bad week for the mayor Detroit Mayor Kwame Kilpatrick’s legal troubles continued to mount Friday when he was charged with two counts of assaulting or obstructing a police officer in the furtherance of his duties on Friday. The charges came in conKilpatrick nection with a confrontation between the mayor and Wayne County Sheriff’s Detective Brian White last month, who was attempting to serve a subpoena on Kilpatrick’s friend Bobby Ferguson. Each count is punishable by up to two years in prison or a fine of $2,000, the Associated Press reported. Kilpatrick was arraigned via closed-circuit video Friday afternoon from the Wayne County Jail. Bond was set at $25,000, and he must pay 10 percent. The day before, Kilpatrick was sent to jail by 36th District Court Judge Ronald Giles, who said Kilpatrick had violated terms of his bond concerning the text-messaging scandal July 23 when he traveled to Windsor without getting the court’s permission. After spending the night in jail, the terms of Kilpatrick’s bond were changed by Wayne County Circuit Court Judge Thomas Jackson, who said Giles had overstepped his bounds when he sent the mayor to jail without considering other options. Jackson said the mayor had to post a $50,000 cash bond, was banned from travel outside the state and had to wear an electronic tether. Kilpatrick was released from jail at about 2 p.m. Also: 䡲 Gov. Jennifer Granholm says she would preside over the tentatively scheduled Sept. 3 hearing on the request to remove Kilpatrick from office if such a hearing is deemed necessary, the Associated Press reported. Granholm said the hearing would be in the Detroit area. 䡲 Detroit City Council on Friday unanimously approved rules to be followed during upcoming hearings designed to force Kilpatrick from office, the Associated Press reported. The rules include allowing him legal representation and crossexamination of witnesses. The forfeiture hearings begin Aug. 18. The council accuses Kilpatrick of violating the city charter by not revealing a confidentiality agreement tied to a council-approved $8.4 million whistle-blowers’ settlement. Page 29 Ideal Security For Hospitals Worried About Unauthorized People In Unauthorized Places? Audit Records Lost Key Deactivation User Schedules Access Control On Cabinets Call us today for a full security assessment. (&("*(*"%)%%lll#gZY[dgYadX`#Xdb we bet... you are spending more than 4 cents per color copy or print. call 800.799.5377 5 GAS S CARD WIN a $25 for the first 25 who can beat that bet! plus, for every HP Edgeline Technology purchase we will give $500 back to autism, a cause we are dedicated to. a radical change in printing HP Edgeline Technology Just when you think HP imaging and printing can't get any better, it does... in just about every way you can think of. CORPORATE PRINTER CARE | simplified p r i n t e r r e p a i r . c o m | 8 0 0 . 7 9 9 . 5 3 7 7 DETROIT BUSINESS MAIN 08-11-08 A 30,31 CDB Page 30 8/8/2008 5:58 PM Page 1 August 11, 2008 CRAIN’S DETROIT BUSINESS Reader comments on Kwame range from anger to sadness Mayor Kwame Kilpatrick’s cascading legal troubles continue to baffle and anger metro Detroit businesspeople, many of whom are calling for his resignation. Others are mostly saddened. “It is a tragic, unfolding story that we couldn’t write if we were writing fiction,” said N. Charles Anderson, president of the Detroit Urban League and chairman of Health Alliance Plan, a 546,000-member health plan owned by Henry Ford Health System. “At some point we will have to see what decision he makes to bring relief to him and the community.” Anderson said he won’t advocate for a resignation, saying that’s a conclusion Kilpatrick has to come to on his own. “I think he is thinking about it. This morning in my staff meeting, we chatted about it for 10 minutes. Everybody is shaking their head.” The issue also is distracting in Lansing. Sarah Hubbard, vice president of government relations for the Detroit Regional Chamber, said if a resolution urging the governor to remove the mayor gets attention, that could “consume a lot of energy from the Legislature that should be directed at improving Michigan.” One such measure, House Resolution 362, was introduced in May by Rep. David Law, R-Commerce Township. Another, House Bill 5923, introduced in March by Rep. Brian Calley, R-Portland, would allow the city to sue Kilpatrick to recover the $8.4 million settlement in the whistle-blower trial involving former police officers if he is convicted of a felony and it’s determined the felony led to the financial loss. Readers who responsed to a Crain’s e-mail query on Friday were mostly in the “resign now” camp. The mayor did have a handful of supporters, and there was this from an anonymous reader: “If Kwame Kilpatrick was GM’s CEO, he would be getting a multimillion-dollar bonus.” Following are some representative comments: “There is such hope and promise for the city of Detroit and the state of Michigan, but … no other city would tolerate the mayor to still be employed after having multiple criminal charges brought against him. … How can we expect new businesses to put faith in a city run by a felon?” Jody Jenkins, account manager, Avis Budget Group “This has dominated the news the past couple of days and brought great embarrassment and further negativity to our state. Little, if any, leadership is coming from the governor. … Just when we thought we had seen the bottom, the bottom moves.” Phill Orth, Lansing “It’s a sad day for Detroit. The mayor should take the high road and do what’s right, which is step down and allow the city to move forward with some dignity intact. He’s made some poor decisions, though he’s also done some good things for the city. ... He should acknowledge the embarrassment he’s causing the city, realize his situation is hopeless, and exit with as little fanfare and as much grace as he can muster.” Timothy Mistry, second vice president-wealth management, The Mistry Group, Smith Barney-Citigroup Global Markets “I do not believe that the Kilpatrick story will hurt business in Detroit unless he is let go without any consequences. If the business world sees that our courts will not be influenced by the irresponsibility of the mayor … we will be able to help Detroit grow and prosper to its full potential.” Connie Carr, account executive, Red Level Networks, Novi “It is my contention that Kwame Kilpatrick has done enormous harm. ... Detroit’s resurgence has been put back quite a few steps by all of the negative publicity which has made Detroit a target for slander, teasing, and all-out verbal abuse.” Melanie Markowicz, marketing assistant, Redico, Southfield “Kilpatrick needs to step down and prevent any additional damage to the city of Detroit and the great state of Michigan. I think these legal concerns are definitely hurting both current and future business in Detroit and Michigan.” Craig Ireland, executive director, ACS Healthcare Solutions “The charges will greatly affect the image of an already troubled city. His emperor attitude has set this city back years. I appreciate the hardworking people from the city and they deserve better.” Craig Minolette, Re/Max in the Hills, Bloomfield Hills “Business leaders who were tenuous about investing in the city will now pause and wait to see what happens. And while they wait, other opportunities will arise and divert their attention and money away from Detroit and its problems. … The mayor needs to resign from office, clean up the positive face that Detroit is trying to present to the investment community and let us start to rebuild investor confidence in the city.” Kenneth Meskin, CPA, Bloomfield Hills “It’s time for Kwame to text in his resignation. For the good of the city, for the health of his family, for crying out loud, just quit!” Curt MacRae, president, Midwest Leasing Group Inc., Livonia “I don’t believe his case would hurt business in the city if the media wasn’t sensationalizing every little tidbit. Everyone deserves their day in court, but the media and suburbia have already convicted him.” Franklin Walker Jr., engraving director, Motor City Creative Design L.L.C. DETROIT BUSINESS MAIN 08-11-08 A 30,31 CDB 8/8/2008 5:47 PM Page 2 CRAIN’S DETROIT BUSINESS August 11, 2008 McElya: Pushes for clinic ■ From Page 1 Salvation Army. “Those were tough times in the ’40s,” he said. “But the good news is there were resources around — people willing to give food, clothes and their time. … That’s what got me through.” Something clicked last fall when McElya, reading an in-flight magazine, came across an article that mentioned Super All Year Detroit, the charity started by Detroit Free Press columnist Mitch Albom in 2006 during Super Bowl XL to help Detroit’s homeless. McElya called Albom. The Novibased supplier and its employees pick a charity to support each year, and this year, McElya said, they wanted it to be SAY Detroit. McElya knows “what’s it like to be put aside in society. … I think, particularly with the kids, this is like a straight line of him looking back to his childhood,” Albom said. In January 2007, there were approximately 18,000 homeless in Detroit, Highland Park and Hamtramck, according to the Homeless Action Network of Detroit. But the organization’s biennial count did not include a breakout of how many were women or children. By offering immunizations, the new clinic will be a first step toward getting homeless kids into school, said Chad Audi, CEO of Detroit Rescue Mission Ministries and a member of SAY Detroit’s board. And need for other preventive care and medical treatment for those children and their mothers is high. But the center has a long-term objective, too, Audi said. “We’re hoping through this clinic to … find a permanent solution to their problems,” he said. The clinic “will be like a triage area for us to find out why they are homeless and to try to help get them back on their feet.” Case managers will offer referrals for addiction treatment, housing assistance, and job training and placement. Detroit Rescue Mission is offering space for the clinic on the first floor of a former St. John Health System medical building in Highland Park it purchased five years ago. The outpatient counseling program for people who have completed treatment is also in the building, along with continuing education in areas such as computer programming and repair and Web design, offered through Wayne County Community College. Four physicians also lease space. The nonprofits hope to open the 24-hour clinic before the end of September and plan to include 12 beds nearby so people who are under care can rest for up to a week and then be seen again by a doctor. With $400,000 in hand, there is enough to open now, McElya said. But opening the clinic and giving hope, then closing it for lack of ongoing funding, is “almost more cruel than not having it at all,” he said. The clinic will need $1 million for its first two years of operation, which will include a shuttle to bring the homeless and the uninsured to the clinic, Audi said. For his part, Albom makes pleas for donations through his radio show on WJR 760 AM. He also is raising money through a number of oth- JAMES MCELYA, 61 Title: Chairman, Cooper-Standard Holdings Inc. and Cooper-Standard Automotive Inc., Novi, which had sales of $2.8 billion last year. Background: CEO of both CooperStandard companies from 2004 McElya through June this year; former vice president of Cooper Tire & Rubber Co.; president of Cooper Tire & Rubber Co. and Handy & Harman. Education: Attended West Chester (Pa.) University er initiatives. According to its IRS Form 990, SAY Detroit collected $287,697 in 2006 and made grants of $130,100 to nonprofits that include Capuchin Soup Kitchen, Cass Community Social Services, Neighborhood Service Organization, Michigan Veteran Foundation and New Day Multi Community Center. SAY Detroit and Detroit Rescue Mission plan to hire four nurses and contract with a pediatrician, an obstetrics-gynecology physician and an internist to start, Audi said. That should give the clinic the capacity to see about 30 people daily. The groups are also in talks with the Wayne State University Medical School, William Beaumont Hospital and Oakland University — which are in the process of developing a new medical school — about providing interns or volunteer physicians and physician assistants. They also plan to approach the Detroit Medical Center to establish a referral process for patients who need surgery or trauma care, Audi said. It’s critical to have a medical home for children to make sure they are developing properly and to provide preventive care, including hearing and vision testing, immunizations and monitoring of lead levels, said Patricia Soares, interim executive director of Detroit Health Care for the Homeless, which does business as Advantage Health Centers. Children with undetected high levels of lead, for example, can develop learning disabilities, Soares said. But with detection, those conditions can be treated and abated. Overall, homeless children are sick more often, have more emotional problems and more likely to repeat a grade than other kids. The organization provides care through a clinic on West Grand Boulevard and a mobile clinic that goes to church soup kitchens, drug treatment centers and Latino Family Services in Southwest Detroit. McElya said he is asking several automakers for grants and plans to go to foundations for help next. Unfortunately, not everyone gets it, he said. One tier-one automotive supplier McElya approached for help wrote a letter asking if McElya realized how poor the economy was. “If it’s tough for us CEOs, imagine how it is for the homeless people,” McElya said. Sherri Begin: (313) 446-1694, [email protected] Page 31 DETROIT BUSINESS MAIN 08-11-08 A 32 CDB 8/8/2008 4:57 PM Page 1 Page 32 August 11, 2008 CRAIN’S DETROIT BUSINESS Staffing: Some docs say 24-7 cardio staffing may not be needed ■ From Page 3 DMC officials have said its Cardio Team One program can cut average response time to between 45 and 60 minutes, depending on the type of case, at DMC’s Harper University Hospital and Detroit Receiving Hospital. “This is a significant investment in the program that will deliver significant results,” said Tonita Cheatham, Harper’s director of public relations and marketing. For optimal care, the American College of Cardiology and the American Heart Association recommend that 75 percent of emergency heart attack patients should have what is called a percutaneous coronary intervention, or PCI, within 90 minutes of arrival at the hospital. Studies indicate most hospitals’ average time is 100 to 150 minutes. Commenting on DMC’s claim that it can be ready to cut into an artery in less than 60 minutes, Kugelmass said, “I am not sure they can do that.” But having a 24-7 cardiologist may allow DMC to improve door-to-balloon times, several cardiologists said. In 2006, Detroit Receiving reported that 61 percent of 23 Medicare patients had begun treatment for heart attack within 90 minutes; 56 percent of nine similar cases began treatment within 90 minutes at Harper, according to the federal Centers for Medicare and Medicaid Services. The numbers were based on a small number of cases and were not considered statistically significant. Beaumont reported to the centers that 82 percent of its 71 Medicare patients in 2006 were under the 90-minute mark, while St. John Hospital reported 69 percent of its 64 Medicare patients were. Those numbers were considered statistically significant, CMS said. SPEEDING UP CARE In a Nov. 30, 2006, study published in the New England Journal of Medicine, which is cited often by cardiologists, six key strategies were found to reduce door-toballoon time. They are: 䡲 Having emergency medicine physicians activate the cardiac catheterization laboratory (saves 8.2 minutes). 䡲 Having a single call to a central page operator activate the cath lab (saves 13.8 minutes). 䡲 Having the emergency department activate the cath lab while the patient is on the way to the hospital (saves 15.4 minutes). 䡲 Expecting staff to arrive in the cath lab within 20 minutes after being paged compared with more than 30 minutes (saves 19.3 minutes). 䡲 Having an attending cardiologist always on site (saves 14.6 minutes). 䡲 Having staff in the emergency department and cath lab use real-time data (saves 8.6 minutes). — Jay Greene But generally less than 20 percent of angioplasty procedures are considered emergencies. For example, 10 percent to 20 percent of Henry Ford’s heart attack cases require emergency angioplasty with a reaction time of less than 90 minutes, Kugelmass said. These emergency heart attack cases are called acute myocardial infarction with ST-segment elevation. In a press statement, DMC said it is the only hospital in the nation with an on-site cardiac team of cardiologists, nurses and Storms: Earnings hurt ■ From Page 1 to $16 million impact that spring storms usually have in the second quarter. For the three months ended June 30, DTE posted earnings of $28 million, or 17 cents a share. At CMS Energy Corp., storm costs had a $4.5 million impact on net income. CMS’ second-quarter earnings were $46 million, or 19 cents a share. Both companies say they build storm costs into their budgets and are looking internally to absorb the expense, through cost-cutting or operational efficiencies. Consumers Energy also has insurance coverage for catastrophic storms that enables it to submit claims for costs above $10 million, said Jeff Holyfield, CMS director of news and information. Still, large storms pose a strain. Consumers Energy annually budgets about $20 million for storm-related restoration costs and reached that level with the June storms. The company faces an additional $12 million to $13 million tab from early July, when 240,000 Consumers customers lost power when a major storm hit the Ludington area and brought nearly a foot of rain in 12 hours, washing out roads and causing heavy damage. Detroit Edison budgets for around $76 million annually in storm costs and has already spent $62 million through 2008’s first six months, which included a large ice storm in January, said Vince Dow, DTE vice president of distribution operations. The June storms had the fifth- largest customer impact in Detroit Edison’s history, cutting power to more than 400,000 of Edison’s 2.2 million Southeast Michigan customers. The storms brought down about 5,000 power lines in Edison’s territory and prompted 14,000 restoration jobs, many stemming from trees that blew over and downed power lines. “We ended up having to rebuild neighborhoods,” Dow said. Edison installed nearly 400 new poles, more than 250 new transformers and more than 70 miles of power lines. Labor costs, including about 600 line workers who came from other utilities in Michigan, Ohio, Indiana, Illinois and Missouri, represented the majority of the utility’s storm expense, Dow said. At Consumers Energy, about 360,000 of Consumers’ 1.8 million electricity customers were affected by the June storms. Damage was widespread throughout Consumers’ territory and included about 6,500 downed wires. Factors were direct lightning strikes to power lines, equipment and trees and high winds that damaged poles, pole cross arms and wires and sent tree limbs onto wires. Restoration efforts used 181 multiperson Consumers Energy repair crews, 62 Consumers teams to identify the extent of damage to circuits, 167 crews of outside contractors and 85 crews from out-ofstate utilities, Holyfield said. Amy Lane: (517) 371-5355, [email protected] technicians at the hospital 24-7. That’s apparently not quite true, but it is unusual. The NEJM study indicated that 14 of 365 hospitals surveyed have on-site cardiologists 24-7. The median door-to-balloon time of the 365 surveyed hospitals was 100 minutes. The 14 hospitals with on-site cardiologists averaged 92 minutes, the study said. Dr. David Haines, Beaumont’s chair of the department of cardiovascular medicine, said he is concerned that DMC’s claim could confuse patients into thinking having a cardiologist on site saves significant time and offers optimal care. “It is a good marketing ploy,” Haines said. “If you have a problem in getting cardiologists in promptly for cardiac cases, you need to have people in-house. Maybe they live in the (suburbs) and can’t get in within 20 minutes of a phone call.” Beaumont’s on-call policy is having a cardiologist at the hospital within 20 minutes, Haines said. The hospital averages 74 minutes in door-to-balloon time, he said. “We have been under 90 minutes for three years,” Haines said. Beaumont averages about 20 emergency heart attacks each month in which the cardiac cath lab is activated, Haines said. “Onethird of those cases we are in that 45- to 60minute window,” he said. The hospital performs about 250 angioplasties each month. Beaumont also closely tracks the time it takes patients who enter the hospital until they arrive in the cardiac catheterization laboratory. “The first component is recognition by the initial caregiver (emergency medical Lower electricity sales cited in energy-reform debate With action potentially looming on Michigan energy reforms, a coalition calling for more legislative review is pointing to Michigan electricity companies’ second-quarter sales declines as another indication why neither legislation nor new plants should be rushed. DTE Energy Co. and CMS Energy Corp. reported electricity sales down about 4 percent from the same quarter a year ago, reflecting the slower economy, the effects of the American Axle and Manufacturing Holdings Inc. strike, and other factors in addition to weather. Dave Waymire, spokesman for the Customer Choice Coalition, a collection of business groups, consumer interests and alternativeelectricity suppliers, said that beyond the second-quarter reWaymire sults, “growth rates have not been extremely high in Michigan.” He said the state overall, through the most recent data year of 2006, “is using less electricity than we were in 2000, when our needs were being met adequately. “There doesn’t seem to be a huge increase in demand going on today, and it’s important for the Legislature to stop, look and analyze these bills and listen to what people other than utilities are saying.” But energy company officials said analysis and projections remain valid. Lorie Kessler, DTE director of external relations, said a combination of factors propels the need to build new sources of power generation, including the replacement of aging generating plants and expected growth in demand. Jeff Holyfield, CMS director of news and information, said “that there are extremely long lead times to build new power plants, and the issue is not 2008 or 2009 but the issue is whether Michigan will have the power it needs in 2015 and beyond.” He said quarterly results are not a sound basis for deciding long-term energy policy. Kessler said that also applies to projecting long-term demand. — Amy Lane technician, emergency physician or cardiologist),” Haines said. The next step is to take an EKG, or heart test, on the patient, to help diagnose whether the problem is a heart attack and to rule out other medical problems, he said. Haines said Beaumont’s door-to-EKG time is 6.5 minutes, door-to-activating acute myocardial infarction (heart attack) team is 14 minutes and door-to-activating the cath lab is 40 minutes, Haines said. “We never have an acute patient waiting for a cardiologist to get to the lab,” Haines said. Most top hospitals strive to have emergency medical technicians take EKGs and forward the information electronically to physicians for evaluations, said Dr. Tom LaLonde, chief of cardiology at St. John Hospital & Medical Center in Detroit. LaLonde said St. John’s average door-toballoon time is less than 90 minutes. “A key to this is our use of a communication system that makes it possible for paramedics to send real-time medical information to the hospital emergency department,” LaLonde said. The EKG data can help doctors determine if a patient is having a heart attack, LaLonde said. St. John averages about 1,800 annual angioplasties, but only about 125, or 7 percent, are considered emergencies in which the 90minute time is crucial, he said. Cardiologists at the University of Michigan Hospital and Health Centers in Ann Arbor are required to be at the hospital within 30 minutes, said Kara Gavin, a media relations specialist. Jay Greene: (313) 446-0325, [email protected] PSC investigates storm response The Michigan Public Service Commission is investigating the utilities’ response to the June storms. No early findings or comments were available last week, but in June PSC Chairman Orjiakor Isiogu said that “reports of telecommunications breakdowns and prolonged power outages raise serious concerns that must be fully investigated.” The PSC’s staff is looking at a variety of issues, including the storms’ effect on the utilities’ distribution systems, the utilities’ response and whether any changes are needed to reduce future power outages of similar magnitude. Commission staff will file a report by Aug. 22, and the utilities have until Sept. 22 to file responses. One issue raised by Detroit Edison regarding the June (and other) storms is the emerald ash borer. Dow said Edison would like to join with the PSC to increase public awareness of utility problems caused by the beetle. Dow said ash trees weakened and killed by the borer are becoming a serious problem. Ash trees 50 feet high may be outside the 10-foot range allowed for line clearance, but they can still bring down lines and cause outages, he said. “They’re out of range for us to clear, and we need homeowners to clear them,” Dow said. “They can improve their service and their neighbors’ service to have these dead trees removed, before they become a problem.” Judy Palnau, media and public information specialist at the PSC, said both Edison and Consumers have in the past brought concerns about the ash tree problem to the commission’s attention. She said commission staff last week was not aware of any Edison request for an educational program and said the commission does not yet have an opinion on the matter. — Amy Lane DETROIT BUSINESS MAIN 08-11-08 A 33 CDB 8/8/2008 4:29 PM Page 1 CRAIN’S DETROIT BUSINESS August 11, 2008 Page 33 Suppliers: Rising costs, market spur cuts, lawsuits ■ From Page 3 year ago. Truck sales decreased 19.3 percent to 3.92 million vehicles, down 19.3 percent from the same period a year ago. “We have to right-size our North American business,” Peterson said. “Everything is in a tumble-down situation. We are just trying to make sure we don’t end up like our peers — in the red.” Novi-based Citation Corp. made a similar move Aug. 4 when it said it was shaking up its North American operations. The supplier of forged and cast metal components said it plans to cut production at its metal foundry in Lufkin, Texas, and reduce the workforce there by 128 employees. Those cuts, expected to be completed by September, closely follow the closure of a brakeand suspension-component plant in Butler, Ind., completed in July, where Citation had employed 144 workers. Citation CEO Doug Grimm said the cutbacks were in response to sharp declines in North American truck sales and production, which, coupled with sharp cost increases in raw materials, have creGrimm ated problems for the company. Citation has filed for Chapter 11 bankruptcy protection twice since 2004. Grimm says the first reorganization was filed because the company did not have a means to recover steel cost increases from its customers. The company made another Chapter 11 filing in April 2007 because its first reorganization plan in 2005 did not account for the 20 percent drop in North American pickup and SUV production and the increase in oil prices seen in 2006. The company emerged from Chapter 11 shortly thereafter. Now, it’s a different story. “We buy steel scrap … and we get recovery properly from our customers,” Grimm said. The company also has a stronger balance sheet, he said, with debt levels much below the more than $100 million the company owed at its second filing in April 2007. Citation has agreements with all its customers to recover at least some of its increasing raw-material costs monthly, Grimm said. But other companies, typically tier-two and tier-three suppliers, don’t have such frequent pass-through agreements with customers. One example is a lawsuit filed July 30 by Troy-based Delphi Corp. against Wisconsinbased Kickhaefer Manufacturing Co. L.L.C., a maker of metal stampings used in Delphi-made wiring harnesses. Delphi said Kickhaefer threatened to stop shipping parts to Delphi factories if it was not given a 20 percent price increase to recover steel costs. Kickhaefer told Delphi its steel costs grew as much as 81 percent since January, and fuel surcharges were up 800 percent since 2004, according to a note attached to Delphi’s lawsuit written by Jeff Hubert, Kickhaefer executive vice president of sales and marketing. Because Kickhaefer is Delphi’s single source for the wiring harness stampings, and Delphi operates on a just-in-time basis, an interruption would force Delphi to shut down its wire harness operations immediately. Delphi countered that it was forced to give Kickhaefer the increase, calling the demands “unilateral and baseless.” Delphi is asking a U.S. District Court judge in Detroit to make Kickhaefer continue to deliver the parts at the original contract price, without the 20 percent increase, and pay Delphi’s attorney fees. The case is ongoing. Crain’s sister publication Automotive News reported June 30 that Johnson Controls Inc. in Plymouth sued three of its suppliers in May for seeking price hikes to recoup rising steel costs. In other litigation, Royal Oak-based FormTech Industries L.L.C. was able to avoid a court injunction to compel shipments of its steel forgings to Canadian supplier Linamar Corp. FormTech CEO Michael Ryan and Crystal Roberts, Linamar corporate communications manager, confirmed last week their companies will soon enter a consent agreement at U.S. District Court in Detroit in lieu of a hearing on Linamar’s Aug. 1 request for an injunction to compel shipments. “Basically, these are just procedural steps. We’ve agreed to (resolve) one step in the process,” Ryan said. “Linamar is a very good customer to us, and this is all very complicated, as I’m sure you can appreciate.” The FormTech litigation, as well as the Delphi and Johnson Controls cases, are directly linked to steel prices, which in some cases have nearly doubled since January. James Mallak, former CFO of Novi-based Tower Automotive Inc. and now a managing director at Alvarez & Marsal L.L.C. in Detroit, said the just-intime delivery model is essential to spare suppliers a loss from leftover inventories when production stops or a product’s specifications change. He noted that several of his clients also are voicing concerns about materials costs. But he contends the benefits of the just-intime system to the industry as a whole far outweigh any risks, including the recent litigation. “It (just-in-time) gives the material suppliers a point of leverage when they have a dispute on pricing, and it gives labor a leverage when there’s a contract dispute, because a work stoppage can cause shutdowns for other companies very quickly,” he said. “I would call that (the litigation) a risk, but these are generally (incidental) compared to the overall benefit of the practice.” Ryan Beene: (313) 446-0315, [email protected] Chad Halcom: (313) 446-6796, [email protected] Roncelli: The last name doesn’t always matter ■ From Page 3 client is working with, going beyond the bricks and mortar. “I’m thinking first of how to finance the projects and I understand how to manage the financial side of the business,” said Wickersham. However, it was a difficult decision for Roncelli, because the company has always been run by someone in the family. In addition, he has two brothers, Scott and David, who work for the company as executive vice presidents. Roncelli had been ruminating about succession for five years, but it was during the company’s 40th anniversary in 2006 that he started putting things in perspective. “That was a time to pause and reflect,” he said. “But this has been on my mind for years. Every week, every month, projects get more complicated, responsibilities grow.” It came down to the sophistication needed to run a company with more than $200 million in revenue. “Family-owned companies, traditionally, just don’t always make it beyond the second, third generation. We’re not gonna be one of those companies, we won’t allow it to happen,” he said. Wickersham will run day-to-day operations. Roncelli, still chairman, will focus on the company’s real estate holdings and his strong suit over the years: business development. Succession issues are never easy, HISTORY TO THE WEST, FUTURE TO THE EAST The 600-square-foot office where Skip Roncelli started Roncelli Trenching Co. in 1966 still stands today as part of Patrico Transit Mix — which started Skip’s business — on Metropolitan Parkway in Sterling Heights. Immediately to the east is the 1,100-square-foot building that was Roncelli Inc.’s first home. In 1987, the company moved again, roughly 100 feet to the east. The building started as 5,400 square feet, and a 20,000square-foot addition was added several years ago. “In 42 years, we’ve moved 100 yards to the east,” said Chairman Gary Roncelli. And to the east of the current headquarters? Roncelli owns the land, just in case. — Daniel Duggan said John Rakolta Jr., CEO of Detroit-based Walbridge Aldinger Co., who inherited his position from his father, who bought the company. Rakolta took the post in 1970 when revenue was $22 million. In 2007, revenue hit $1.1 billion. While Rakolta said he’d love to see his 27-year-old son, John III, take over the post, it won’t be something handed down. John III works for the company and will have the chance, like others in the company, to earn the top position. “This business is so competitive and the complexity is so broad that your succession has to be the best person,” he said. “Not just the person with the right last name. “It’s a testament to Gary’s leadership to make that decision. That’s what you have to do.” Rakolta said the Roncellis have created a company that puts people in positions to do quality work. “They’ve got the right culture there to get things done,” he said. Like most companies, Roncelli Inc. has depended on long-term relationships. Roncelli has built the company on several key relationships made over the years. One started with Sam Walton in Gary Roncelli’s garage. “The phone rang, and it was Sam Walton on the other end,” he said. “It took me about a minute and a half to figure out if it was really him, since I have a lot of earthy friends who might like to pull a prank like that on me.” Walton’s request: Build a 175,000-square-foot Sam’s Club in 66 days, rather than the five months normally needed. “It’s a simple choice when someone makes a request like that,” Roncelli said. “You can not do the job and never get any business from that company again. You can try to do the job and fail, then never get any business from the company again. Or you can succeed.” The Southgate store was completed on time, in less than half the time it would normally take. Since then, Roncelli has built eight Wal-Mart stores and one other Sam’s Club for the company. Similarly, the company’s relationship with media mogul Sumner Redstone made Roncelli a niche player in the construction of cinemas. Redstone is majority owner and chairman of Dedham, Mass.based National Amusements Inc., parent company of Showcase Cinemas. Simple gestures are important, Roncelli said. When a GM executive visits the offices, all employees who own GM cars park them in front. But even bigger gestures come from the wallet. Roncelli has become an investor in jobs the company has built. Gary Roncelli is a co-owner of Freedom Hill Amphitheatre with restaurant owner Joe Vicari. Roncelli recently took a small equity position in the Pinnacle Race Course. “We like to have a little skin in the game,” Roncelli said. “And people who hire us like it because we have skin in the game.” The future of the company could involve other Roncellis. Gary’s sons are ages 19, 17 and 16. “I’d ideally like to see my children come and run the company,” he said. “But they’re too far downstream to even think about it.” Daniel Duggan: (313) 446-0414, [email protected] www.crainsdetroit.com EDITOR-IN-CHIEF Keith E. Crain PUBLISHER Mary Kramer, (313) 446-0399 or [email protected] EXECUTIVE EDITOR Cindy Goodaker, (313) 4460460 or [email protected] MANAGING EDITOR Andy Chapelle, (313) 4460402 or [email protected] ASSISTANT MANAGING EDITOR/FOCUS Jennette Smith, (313) 446-1622 or [email protected] BUSINESS LIVES EDITOR Michelle Darwish, (313) 446-1621 or [email protected] COPY DESK CHIEF Gary Piatek, (313) 446-0357 or [email protected] GRAPHICS EDITOR Nancy Clark, (313) 446-1608 or [email protected] COPY EDITOR Vic Doucette, (313) 446-0410 or [email protected] DATA EDITOR Anne Marks, (313) 446-0418 or [email protected] WEB GENERAL MANAGER Alan Baker, (313) 4460416 or [email protected] WEB EDITOR Christine Lasek, (313) 446-0473, [email protected] WEB DESIGNER/PRODUCER Ai-Ting Huang, (313) 446-0403, [email protected] RESEARCH ASSISTANT Joanne Scharich, (313) 446-0419 EDITORIAL SUPPORT Anita Duncan, (313) 446-0329 NEWSROOM (313) 446-0329, FAX (313) 4461687 TIP LINE (313) 446-6766 REPORTERS Robert Ankeny: Covers the city of Detroit, Wayne County government, and law. (313) 446-0404 or [email protected]. Ryan Beene: Covers auto suppliers, steel. (313) 446-0315 or [email protected] Sherri Begin: Covers nonprofits and services. (313) 446-1694 or [email protected] Daniel Duggan: Covers real estate and hospitality. (313) 446-0414 or [email protected] Jay Greene: Covers health care, insurance and the environment. (313) 446-0325 or [email protected]. Chad Halcom: Covers education, non-automotive manufacturing, defense contracting and Oakland and Macomb counties. (313) 446-6796 or [email protected]. Tom Henderson: Covers banking, finance, technology and biotechnology. (313) 446-0337 or [email protected]. Nancy Kaffer: Covers small business and retail. (313) 446-0412 or [email protected]. Bill Shea: Covers media, advertising and marketing, entertainment, the business of sports, and transportation. (313) 446-1626 or [email protected]. Nathan Skid: Multimedia reporter. Also covers the food industry. (313) 446-1654, [email protected]. 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DETROIT BUSINESS MAIN 08-11-08 A 34 CDB 8/8/2008 5:48 PM Page 34 Page 1 August 11, 2008 CRAIN’S DETROIT BUSINESS RUMBLINGS 3 file to run for trustee slots at OCC hree candidates were Trustee Janice Simmons, running for three who died while in office. seats on the oft-contentious Oakland Community College Board of Trustees as of Friday — though none so far are the incumbents. Add “Republican” and Filing paperwork last possibly “university goverweek to run for the two seats nor” to the list of Danialle Karoffering complete six-year manos’ latest public avocaterms were Shirley Bryant, retions. tired director of community Karmanos, 35, chairrelations for Birmingham Comwoman of the Museum of Conmunity Schools, and Carlyle temporary Art Detroit board Fielding Stewart, pastor of and founder of nonprofit Hope United Methodist Church children’s organization Dain Southfield. Currently nialle Karmanos Work It Out, reholding those seats are cently launched a Web site, Trustees Phillip Abraham and www.dkforwsu.com, to deSandra Ritter. clare her interest in the Re“I went to the board’s July publican nomination to run meeting and I was appalled,” for the board of governors of said Bryant, who also sits on her alma mater, Wayne State the OCC Foundation board of directors and worked at Birmingham schools for 28 years. “I know how boards are supposed to work, and none of the others I’ve worked with are anything like this.” The OCC board was admonished earlier this year for contentious behavior and “ac“Exiderdome” visits Detroit. tivity that goes beyond the scope” of University, in November. its duties by the Higher Candidates from the two Learning Commission of the major political parties for North Central Association of board of governors seats Colleges and Schools during have to be nominated at an accreditation review. state conventions — the Filing last week for the Michigan Republican Party partial term now held by hosts its convention Aug. 23 appointed trustee and CFO and the Michigan Democratic Dale Cunningham of the OakParty convention is Sept. 6. land County Sheriff’s Office is Diane Dunaskiss, wife of Christopher Maloney, of former State Sen. Mat Northville. Dunaskiss, is currently the Cunningham has been only Republican on the serving since last year as board. All candidates in Noan interim replacement for T Danialle Karmanos seeks seat on the WSU board WEEK IN REVIEW FROM WWW.CRAINSDETROIT.COM, WEEK OF AUG.2-8 vember will run for the seats held by Jacquelin Washington and Paul Massaron. Floating technology exhibit docks in Detroit Georgia-based Siemens Energy & Automation Inc.’s floating, two-story exhibit and learning laboratory pulled into Detroit late last week on the second stop of its U.S. tour. Mounted on a Hannah Marine Corp. barge, the 10,000square-foot Exiderdome, also dubbed the World of Automation, is designed to show companies Siemens’ latest technologies. Siemens kicked off a series of events and seminars with a Thursday night automotive summit with the design leaders of two U.S. automakers about the challenges facing the automotive industry and the latest technologies for factory automation. During the event, the company presented Focus: Hope with a $30,000 check to fund scholarships for students pursuing math, science and engineering. On Friday morning, Siemens hosted a Science Day at the Exiderdome for fourth- and fifth-graders in Focus: HOPE’s program. The Exiderdome, which launched its tour in Chicago last month, will remain docked at the Talon/Omni complex on the Detroit River through Friday before moving on to Boston, New York, Charlotte, Orlando, Los Angeles, Denver and Houston. The exhibit is not open to the public, but engineers and manufacturers can schedule visits or register to attend any of the seminars and events focused on the automotive and glass industries by clicking on the Detroit tab at www. exiderdome.com/us. Video and more on ‘Living and Investing in the D’ By now, you’ve probably seen our “Living and Investing in the D” special supplement. Deal-makers of Detroit are still getting it done, and our stories show the vitality that’s still here. We’ve added a new dimension to our coverage this year. On our Web site, you’ll find video and exclusive additional content for “Living and Investing in the D.” We also have an interactive map showing the growth of city neighborhoods. You can find it all at www.crainsdetroit.com/livingd. We know it’s hard to run a small business by yourself. Crain’s Small Talk has guest bloggers who are attorneys, entrepreneurs, and small-business advisers. They know what they’re talking about, and they’re not afraid to share. Go to www.crainsdetroit.com/smalltalk for more. While you’re there, sign up for our Small Talk e-mail newsletter, so WEB WORLD you can get updates on smallAlan Baker business news three times a Web General Manager month. Tiger Stadium group gets more time ossible preservation of part of Tiger Stadium got an extension until March 1 on Wednesday, as the Detroit Economic Development Corp. forwarded to City Council a proposed agreement with the Old Tiger Stadium Conservancy, with possible help from the Ernie Harwell Foundation. The latest tentative agreement with the conserHarwell vancy calls for an escrow deposit of $150,000 by Aug. 8, another $119,000 by Sept. 8 and a final payment of $100,000 by Dec. 8. On Friday, City Council postponed a vote on the issue until September, the Associated Press reported. P OTHER NEWS 䡲 Detroit has begun to notify city employee unions that layoffs are planned after an agreement to raise $65 million by selling the city’s half of the DetroitWindsor Tunnel stalled, the Associated Press reported. 䡲 Bernard Kilpatrick, father of Detroit’s mayor, won’t have to testify in a lawsuit Wayne County has brought against Jon Rutherford, a former homeless shelter operator and president of Metro Emergency Services Inc., who was indicted in 2006 by a federal grand jury on conspiracy, tax evasion and fraud charges, The Detroit News reported. Kilpatrick’s consulting firm was on Rutherford’s payroll. 䡲 Lou Pavledes, head of Cobo Center 1996-2004, on Thursday pleaded guilty to a charge related to receiving nearly $100,000 from a contractor, the Associated Press reported. The U.S. attorney’s office also filed a charge against Karl Kado, who had contracts at Cobo Center, accusing him of making false statements on tax returns in 2003 and 2004. 䡲 Dexter-based ReCellular Inc., a cell phone recycling company, plans to add 40 employees over the next three months as it expands its Michigan operation. 䡲 Greektown Casino L.L.C. plans to open its expanded gaming floor on Aug. 29, weeks ahead of schedule, NATHAN SKID/CRAIN’S DETROIT BUSINESS TOURNAMENT AN ECONOMIC BOOST Tiger Woods’ absence notwithstanding, the 90th PGA Championship last week at Oakland Hills Country Club in Bloomfield Township played host to golf’s elite and throngs of spectators. The 90-year-old south course, nicknamed “The Monster” by Ben Hogan after his 1951 victory there, saw 156 of the world’s best professional golfers compete for the $7.5 million purse and the Wanamaker Trophy (and $1.35 million check) as the winner of the season’s final major tournament. It was the third PGA Championship for the private country club and first since 1979. The tournament was expected to bring from $40 million to $60 million into the region’s economy. More than $12 million was spent at the tournament on corporate hospitality, where chalets for the four-day event cost up to $500,000. For full Crain’s coverage of the event, see www.crainsdetroit.com/pga. the Associated Press reported. Its new hotel is scheduled to open early next year. 䡲 The Michigan Economic Development Corp. is spending $300,000 to promote Michigan as a business destination on WDIV-Channel 4 during the Beijing 2008 Olympic Games. 䡲 Henry Ford Health System in Detroit and Flintbased McLaren Health Care both had their certificate of need applications for a proton-beam therapy center approved by the Michigan Department of Community Health. 䡲 Tightening credit markets and auto industry turmoil in North America led to a 55 percent drop in the value of supplier mergers and acquisitions in the first half of 2008 compared with the same period last year, according to a PriceWaterhouseCoopers L.L.P. report released Wednesday. There were 121 merger and acquisition deals worth $3.1 billion signed in the first six months of the year, compared with 149 deals worth a total of $7.1 billion during the same period in 2007. 䡲 UFP Technologies Inc. will close its compression molding plant in Macomb Township and consolidate its Michigan operations in Grand Rapids, Plastics News reported. Workers will be offered transfers. 䡲 Marathon Oil Corp. has made a $2.4 million grant to the Detroit Science Center to fund the “Future Fuels Gallery,” scheduled to open in 2010. 䡲 Warren-based MSX International Inc. has acquired the Japanese training operations of Carter and Carter Group P.L.C. Terms were not disclosed 䡲 Passenger traffic for the first six months of 2008 set a record at Detroit Metropolitan Airport with 18,532,811 travelers, up 3.1 percent from 17,973,756 in 2007, according to the Wayne County Airport Authority. 䡲 Richard Dugas Jr., president and CEO of Bloomfield Hillsbased builder Pulte Homes Inc., said Monday his company would ofDugas fer a $7,500 discount on new purchase agreements with home buyers for Pulte, Del Webb and DiVosta homes bought from Aug. 5-Sept. 15. 䡲 The nonprofit Detroit Youth Foundation is changing its name to YouthVille Detroit effective today. OBITUARIES 䡲 James O’Connor, former president and co-owner of Markline Fuel Oil in Troy, died from complications of Alzheimer’s and Parkinson’s diseases Aug. 2. He was 80. DBpageAD.qxd 8/1/2008 9:19 AM Page 1 BVSbVW\UaeSR]T]` E3/:B6>:/<<7<5 4WTbV BVW`R >`WdObS 0O\Y UWdSa OTÀcS\b Qcab][S`a OQQSaa b] O eWRS `O\US ]T ¿\O\QWOZ a]ZcbW]\a b] VSZ^ g]c `SOQV g]c` U]OZa O\R [OfW[WhS OaaSba BVSg W\QZcRSeSOZbV ^ZO\\W\U b`cabaS`dWQSa W\dSab[S\bORdWQS O\RQ]\acZbW\U/\R PSQOcaS bVS ¿\O\QWOZ e]`ZR QO\ USb ^`Sbbg Q][^ZSf g]c OZa] USb O bSO[ ]T RSRWQObSRW\dSab[S\b^`]TSaaW]\OZa eV]eWZZ VSZ^RSdSZ]^OaW[^ZW¿SR¿\O\QWOZ ^ZO\bVOb¸aSOagb][O\OUSO\Rc\RS`abO\RB] O``O\USOQ]\acZbObW]\eWbVO 4WTbVBVW`RESOZbV;O\OUS[S\b/RdWa]`QOZZ( DWb]5W]WO "&$!!# 8W[>]ZZO`R "&$!%## B`OQg<Wf]\ "&$!$" 4WTbV BVW`R >`WdObS 0O\Y Wa O RWdWaW]\ ]T 4WTbV BVW`R 0O\Y ]TTS`W\U PO\YW\U W\dSab[S\b O\R W\ac`O\QS ^`]RcQba O\R aS`dWQSa 4WTbV BVW`R 0O\Q]`^ ^`]dWRSa OQQSaa b] W\dSab[S\ba O\R W\dSab[S\b aS`dWQSa bV`]cUV dO`W]ca acPaWRWO`WSa 7\dSab[S\ba O\R 7\dSab[S\b AS`dWQSa( /`S<]b42717\ac`SR =TTS`<]0O\Y5cO`O\bSS /`S<]b7\ac`SR0g/\g4SRS`OZ5]dS`\[S\b/US\Qg ;Og:]aSDOZcS /`S<]b/2S^]aWb 7\ac`O\QS^`]RcQba[ORSOdOWZOPZSbV`]cUV4WTbVBVW`R7\ac`O\QS /US\Qg 7\Q DBpageAD.qxd 7/28/2008 3:17 PM Page 1 Big business capabilities for your small business needs. 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