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Beaumont Hospitals 20101025-NEWS--0001-NAT-CCI-CD_-- 10/22/2010 5:22 PM Page 1 ® www.crainsdetroit.com Vol. 26, No. 44 OCTOBER 25 – 31, 2010 $2 a copy; $59 a year ©Entire contents copyright 2010 by Crain Communications Inc. All rights reserved Page 3 Pro and con-con: One side U.S. to Blues: Quid pro no has the edge in ballot battle agree to the most-favored-nation contracts. Hospitals pressured to deal, suit says Blue Cross also allegedly required 23 larger hospitals to charge more than 20 percent more BY JAY GREENE ers. It asks for the clauses to be removed. than Blue Cross rates. One hospital, Covenant CRAIN’S DETROIT BUSINESS Joy Yearout, the attorney general’s deputy di- Medical Center in Saginaw, was required to rector of communications, said the attorney gen- charge 39 percent more to other insurers. Blue Cross Blue Shield of Michigan’s failed pur- eral’s office became aware of the clauses during In an interview with Crain’s, Andy Hetzel, chase of a Lansing-based health maintenance its investigation of the proposed Blue Cross ac- Blue Cross’ vice president of corporate commu- organization earlier this quisition of Physicians Health Plan of Mid-Michigan. nications, said Blue Cross has used most-fa- LAWYERS SAY: year led to the antitrust law- The Blue Cross and PHP deal, proposed in Sep- vored-nation clauses in its contracts since 2007 suit filed last week by state tember 2009, fell apart in March after the federal only to negotiate the lowest price it can to keep Proving case Attorney General Mike Cox government threatened to challenge it. premiums low. won’t be easy, and the U.S. Department of Jus- “Following that discovery earlier this year, Hetzel denied that Blue Cross contracts re- Page 44 tice. our office issued subpoenas to other Michigan quire hospitals to charge competing insurers The lawsuit, filed Oct. 18 in hospitals to examine their contracts with Blue higher prices. U.S. District Court in Detroit, alleges the state’s Cross,” Yearout said. Greg Moore, health care practice leader Grocers’ dollars make largest health insurer pressured 23 of the In its investigation, the Justice Department with Clark Hill PLC in Birmingham, said he sus- change to state food aid state’s 131 hospitals to sign illegal “most fa- and Cox’s office found that in 2007 Blue Cross pects one of Blue Cross’ competitors could vored nation” contracts that required them to threatened to cut payments by up to 16 percent See Blue Cross, Page 44 Inside charge higher prices to competing health insur- to 45 small and rural hospitals if they did not First shot fired in 4G war, Page 43 Cleanup of “ All of the Focus: Real Estate prior contaminated administra- tions didn’t There’s a rising tide GM sites nears have a of delinquencies on $26 million slated serious commercial building business loans, Page 33 for metro Detroit BY AMY LANE model for Crain’s Lists CAPITOL CORRESPONDENT taking care LANSING — When it comes to Largest foundations, spending some $159 million to of the nonprofits and capital clean up former General Motors airport. Corp. sites in Michigan, Washing- ” campaigns, Pages 17-18 ton attorney Elliott Laws is posi- tioned to be the gatekeeper. Terrence King, city of Detroit The former DAVID DALTON This Just In U.S. Environmen- Boarded windows and a banner for a past event mark a terminal building behind Terrence tal Protection King, who oversees Coleman A. Young Municipal Airport for Detroit Mayor Dave Bing. Federal agency takes over Agency official is slated to head FormTech’s pension plan up an entity that will oversee ad- The federal government’s ministration of pension insurer last week City Airport lands new business funds in the said it assumed responsibili- $773 million en- ty for the pension plan of 570 vironmental former workers and retirees Laws trust that will Repairs, lower fuel costs help COLEMAN A. YOUNG from bankrupt Royal Oak- clean up and redevelop 89 proper- based supplier FormTech In- ties throughout the country — in- BY BILL SHEA and sparked the resignation of MUNICIPAL AIRPORT dustries. cluding 56 in Michigan — left be- CRAIN’S DETROIT BUSINESS longtime airport Executive Direc- Ⅲ The 264-acre airport, which The Pension Benefit Guaran- hind in the GM bankruptcy. tor Delbert Brown, which result- has runways of 5,090 feet and ty Corp. took on the pension Coleman Under a trust agreement an- Flights at city-owned ed in media and City Council 4,025 feet, opened in 1927. Its as FormTech is liquidating A. Young Municipal Airport nounced last week by the White have in- scrutiny. current name was adopted in in U.S. Bankruptcy Court in 2003. House and filed with federal bank- creased 15 percent to about 300 a There’s also been an uptick in Wilmington, Del., and won’t ruptcy court, an entity called day since a corporate, Open 24 hours a day, 365 days a year. EPLET LLC will be the trustee and new fuel recreational See This Just In, Page 2 BIZ AVIATION provider be- and cargo avia- Ⅲ Landing fees range from free to See Cleanup, Page 43 Pulling up: gan charging tion at the air- $60, and parking fees run from Corporate flying lower prices port, which $8 to $60. Both fees are based shows small and the city be- saw its reputa- on aircraft weight. uptick after gan improve- tion tumble plunge, Page 45 ments to the among flyers Airport) for a while,” said Rick facility com- amid com- Nini, majority owner of Corporate monly known as City Airport. plaints of poor Eagle Cos., which flies for 23 local The changes have come in the customer ser- companies and is based at Oakland past several weeks in the wake of vice, steep Nini County International Airport in Wa- NEWSPAPER an embarrassing internal city au- prices and general lack of upkeep. dit that revealed missing funds “We stayed away from (City See City Airport, Page 45 20101025-NEWS--0002-NAT-CCI-CD_-- 10/22/2010 5:21 PM Page 1 Page 2 CRAIN’S DETROIT BUSINESS October 25, 2010 Conference focuses on tax issues Michigan companies among Woman and Grand Rapids-based THIS JUST IN The way it was: 1986 Learning Interfaces LLC. A Novi conference on tax is- TiECon Midwest award winners Royal Oak-based Zferral LLC and sues affecting business and indi- ■ From Page 1 Throughout our 25th-anniversary Eleven Michigan entrepre- ERT Systems LLC, OntoMed LLC and vidual taxpayers is on tap Nov. 9- year, Crain’s will use this space neurial companies will be hon- Shepherd Intelligent Systems LLC, 10, sponsored by the Michigan be able to continue payments to the to look at interesting items from ored Friday with awards during all based in Ann Arbor, won in past issues. Association of Certified Public Ac- plan, PBGC said in a press release. the TiECon Midwest 2010 confer- the software category. countants in conjunction with the The plan was underfunded with ence at The Henry in Dearborn. Rochester Hills-based GoPoint Michigan Department of Treasury assets of $2.23 million and benefit More than 1,000 companies Technology Inc. was the only Just and the State Bar of Michigan. liabilities of $5.86 million. PBGC “ were nominated, with 20 winners Michigan company to win in the will cover $2.05 million of the because a guy The conference at Rock Financial from around the Midwest earn- mobile category. $3.63 million gap, with the maxi- Showplace will feature state offi- ing awards for being the most en- Winners will present their com- mum guaranteed benefit at $54,000 is bald, we’re cials, national and local experts in terprising startup companies in panies in a live showcase during per year for a 65-year-old retiree. accounting and law, business lead- four categories: Internet, media, the two days of the conference, FormTech filed for Chapter 11 not going to harass him to see ers, and sessions on topics that in- mobile and software. Thursday and Friday. protection in 2009 after defaulting clude state taxation, ethics, the au- Ann Arbor-based Bodega and The TiE20 award is presented on a credit agreement. Royal Oak- if he has Rogaine. dit process and a wrap-up of Ypsilanti-based Ergun Technolo- by Santa Clara, Calif.-based TiE, a based HHI Group Holdings LLC ac- ” Michigan’s Nov. 2 election. gies won in the Internet category. nonprofit fostering entrepreneurs quired FormTech’s assets in 2009 William Rearick, Registration is available at Winning in the media portion are across its international network for an undisclosed amount and de- www.michcpa.org. Ann Arbor-based DSLMi LLC, sponsored by top venture capital nied responsibility for the plan. Detroit-Windsor Tunnel — Amy Lane Grand Rapids-based Michigan Film firms and Fortune 500 companies. — Dustin Walsh From an Oct. 27, 1986, article Reel, Rockwood-based Metro —Shawn Wright about people smuggling Upjohn Event aims to connect biz Detroit-Ann Arbor rail planners Co.’s hair growth product from Canada to the U.S., where it had leaders, entrepreneurs CORRECTIONS wait for word on funding not yet received Food and Drug A new event aims to bring Administration approval. A one- Organizers of a Detroit-Ann Michigan business leaders, entre- Ⅲ Highland Capital Management LP is unrelated to Credit Suisse AG. Both month supply, prescription only, are holders on Marian Ilitch’s 2005 loan for the purchase and expan- Arbor commuter rail project ex- sold for $45-$50 at the time. preneurs, organizations and top- sion of MotorCity Casino.
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