Automakers Balk at EV Fees

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Readers first for 30 Years For filmmaker- As IAC CEO turned- says goodbye, housing supplier may CRAIN’S investor, seek a Detroit is like good buy DETROIT BUSINESS Wild West ... or buyer PAGE 3 PAGE 3 JULY 20-26, 2015

The proposed fees — $30 for hybrids and $100 for electric vehicles — are Automakers balk at EV fees considered a tax fairness Alternative: Lawmakers should offer incentives to buyers differentiate advanced technology measure vehicles — such as electric and hy- By Lindsay VanHulle sidered a tax fairness measure since In a letter last month to Senate brid vehicles — discourage con- since Crain’s Detroit Business/Bridge Magazine alternative-fuel vehicles use less Majority Leader Arlan Meekhof, the sumers from adopting these new alternative-fuel LANSING — Automakers are gasoline and so their owners pay Washington, D.C.-based Alliance of technologies,” wrote Wayne Weikel, vehicles use pushing back against proposed fewer gas taxes. Automobile Manufacturers said law- the alliance’s state government af- less gasoline higher state registration fees for al- But automakers, racing to meet makers should be offering incen- fairs director. ternative-fuel powered cars. more rigorous federal fuel-econo- tives to buyers rather than raising “Consumer choice is the key fac- and so their The extra fees — $30 for hybrids my standards, have concerns the fees. The alliance represents a tor in driving competitiveness in the owners and $100 for electric vehicles — fees will discourage would-be buy- dozen global automakers, including marketplace, and state policy pay fewer gas taxes. would go toward a nearly $1.5 bil- ers of the fuel-efficient vehicles in a the Detroit 3. should not penalize residents of lion road funding plan and are con- still-developing market. “Public policies that negatively SEE FEES, PAGE 16 MIS drives toward sound investment Fata’s civil cases: Who will share the blame?

By Chad Halcom [email protected] Former oncologist Farid Fata may have taken responsibility at sentencing for an excessive chemotherapy treatment scheme that afflicted cancer patients for years, but who will share blame with him in upcoming civil court COURTESY OF LIVE NATION hearings is unclear. The success of the Faster Horses country music festival has Michigan International Speedway looking at concerts as a source of revenue that’s not from auto racing. Federal officials have collected about $10 million in various cash and By Bill Shea Track president wants Music festivals, beer and wine tastings, driving asset seizures [email protected] schools, vehicle testing, obstacle course runs and since Fata’s 2013 he success of the three-day Faster music festivals to be part private events such as weddings are elements of arrest to go to- Horses country music festival at of a more diverse – and the 1,180-acre track’s expanding nonrace ward satisfying a TMichigan International Speedway has calendar that helps it generate revenue. $17.6 million cri- prompted the track and the concert promoter lucrative – lineup The corporate business hurt by the minal judgment to begin plans for a rock festival that could be recession also has started to rebound. that was part of akin to Lollapalooza, Coachella and Bonnaroo. Pure Michigan 400 on Aug 14-16. “Entertainment, hospitality, suites and cor- his July 10 sen- The idea is still in the talking stage, but it Attendance at the races has fallen since the porate sponsorships have been very strong,” tencing. U.S. Dis- represents the track’s latest effort to boost recession. It used to top 80,000 yearly. said Curtis, who began working in motorsports Farid Fata: trict Judge Paul revenue outside of auto racing. “It kind of dawned on us we’ve got a great in 1991 and became MIS president in 2006. $10 million seized to Borman will de- MIS, which opened in 1968 in the Irish Hills facility, we’ve got a great team here, let’s start to What all that adds up to in revenue, track ex- pay $17.6 million cide at a restitu- area of Brooklyn, south of Jackson, is best expand our portfolio and look at becoming an ecutives will not say, but Crain’s estimates it at criminal judgment. tion hearing known for its two NASCAR Sprint Cup races, the entertainment destination,” MIS President within 90 days Quicken Loans 400 in June and the upcoming Roger Curtis said. SEE MIS, PAGE 17 how much of the judgment will go to the government — because Med- © Entire contents copyright 2015 icare and Medicaid paid millions for by Crain Communications Inc. All rights reserved. his fraudulent treatments — or to crainsdetroit.com Vol. 31 No 29 $2 a copy. $59 a year. benefit his victims. But Fata also faces 27 pending civil lawsuits from victimized patients and their families before Oak- land County Circuit Judge Rudy Nichols, plus a whistleblower law- suit in federal court from his former

NEWSPAPER SEE FATA, PAGE 18 20150720-NEWS--0002-NAT-CCI-CD_-- 7/17/2015 1:04 PM Page 1

2 CRAIN’S DETROIT BUSINESS // JULY 20, 2015

Michigan officials also recom- rectional Services a year after the com- MICHIGAN mend requiring an independent pany, hired to feed state prisoners, INSIDE analysis of alternatives to the came under scrutiny for lack of THIS ISSUE pipelines and ensuring Enbridge has cleanliness, unapproved menu sub- BANKRUPTCIES ...... 17 BUSINESS DIARY ...... 14 adequate liability coverage in the stitutions and other issues, The Asso- ciated Press reported. Oldsmar, Fla.- CALENDAR ...... 14 case of a “worst-case-scenario spill.” CAPITOL BRIEFINGS ...... 7 based Trinity Services Group will Many environmental groups want CLASSIFIED ADS ...... 15 BRIEFS the pipelines shut down, fearing a transition to becoming the new ven- OPINION ...... 6 spill similar to one from another En- dor under a three-year, $158 million OTHER VOICES ...... 6 Shepler’s adds 1st boat in increase” in business during the bridge pipeline that severely pollut- contract. PEOPLE ...... 14 Ⅲ 30 years; demand on rise past three years, something Shepler ed the Kalamazoo River in 2010. The construction project to RUMBLINGS ...... 19 attributes in part to the state’s Pure build Michigan State University’s WEEK ON THE WEB ...... 19 Chris Shepler and his family are Michigan tourism campaign. The Davenport restructuring Grand Rapids Research Center will celebrating the 70th anniversary of company also won business from campuses across Michigan create 728 jobs, generate $55 mil- their Mackinac Island ferry compa- the Grand Hotel, which uses Shep- lion in wages and create an eco- COMPANY INDEX: ny with their first new boat in nearly ler’s as its official ferry service. Davenport University is restructur- nomic impact of $95.6 million, SEE PAGE 17 three decades. Shepler’s Mackinac Is- The contract for the Miss Margy ing several campuses across Michi- MLive.com reported, citing re- land Ferry has seen as much as 25 was given to Onaway-based Moran gan, The Grand Rapids Press report- search conducted for MSU by An- Ⅲ Grand Rapids-based Kindel Fur- percent higher passenger demand Iron Works Inc. The boat is named for ed. The changes will see locations in derson Economic Group. Ⅲ niture Co., which makes niche, de- for ferry service to the island in the Margaret Shepler, wife of Shepler’s Flint and Kalamazoo close and then Niles-based Delta Industrial signer furniture, acquired the assets past three years. founder William Shepler. She died reopen as part of community col- Valves Inc., a manufacturer of knife of Denton, N.C.-based Councill Co. With the christening July 12 of in 2004. leges in those cities. gate valves for the mining, oil sands LLC, a luxury-brand residential and the new Miss Margy — a $3.8 mil- Lindsay VanHulle In addition, the private, nonprof- and other industries, was acquired contract furniture manufacturer, lion, 85-foot vessel that will reach it school said its Battle Creek cam- by the global engineering firm Weir MiBiz reported. top speeds of 42 mph and carry up pus will close and the Saginaw cam- Group PLC of Glasgow, Scotland, for Strait talk from state: No Ⅲ Kalamazoo-based Zeigler Auto to 281 passengers — Shepler’s will pus will merge with its Midland $47 million, MiBiz reported. Delta heavy oil in Great Lake pipe Group Inc. acquired M&M Motorsports have a fleet of six boats ferrying campus. The university said it will employs 70. Birmingham-based Inc., also of Kalamazoo, MiBiz re- people between the island, Macki- The state will ban heavy crude oil look at creating a new campus to Quarton Partners LLC was the finan- ported. Zeigler now has more than naw City and St. Ignace. from being transported along a serve the Midland, Bay City and cial adviser for Delta. Ⅲ U.S. Environ- 20 dealerships in West Michigan, The Miss Margy may not be pipeline running beneath the Saginaw region. After 31 years, the mental Protection Agency Bur- Illinois, Indiana and New York. ready for its first voyage until Labor Straits of Mackinac, The Associated President Richard Pappas said removed rows Sanitation Ⅲ Authorities are looking for a Day as crews finish the last of the Press reported. Attorney General that in recent years enrollment has , a former waste dis- man who robbed the Sturgis Party painting, sanding and welding. The Bill Schuette and Dan Wyant, direc- dropped or shifted online at some posal site about 15 miles from South Store while wearing trash bags to U.S. Coast Guard also has to run the tor of the Michigan Department of campuses — especially among adult Haven, from the Superfund list of the nation’s most polluted places, The disguise his identity. It was not clear boat through a series of safety tests Environmental Quality, said carrying students. Enrollment has grown at Associated Press reported. whether the man was hefty. Ⅲ before it can carry people. heavier oil would “unreasonably” its Lettinga campus in Caledonia The family started serious dis- put the Great Lakes at risk. Township near Grand Rapids. CORRECTION cussions about construction two Calgary, Alberta-based Enbridge years ago, Shepler said. Eventually, Energy Partners LP said only light MICH-CELLANEOUS Ⅲ On Page 30 of the July 13 issue, a Rumblings item about an Automa- “it was quite evident that we need- crude currently moves through its Ⅲ The state of Michigan terminat- tion Alley event misspelled the last name of Ronald Staley, senior vice ed to do this now,” he said. two side-by-side pipes beneath the ed a three-year, $145 million contract president of the Lansing-based Christman Co. That was due in part to a “huge straits. with Philadelphia-based Aramark Cor-

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CRAIN’S DETROIT BUSINESS // JULY 20, 2015 3 IAC’s next play: Buy or sell?

CEO change may be pointing to new strategy for supplier the automotive interiors business in 2014 after it By Dustin Walsh But is the Wilbur Ross-controlled IAC in trou- spun off its $3 billion unit [email protected] ble? Is it a buyer or seller? into a joint venture with With the exit of CEO James Kamsickas to Sales don’t indicate struggles — IAC reported Shanghai-based Yanfeng Au- Dana Holding Corp., International Automotive Com- revenue of $5.9 billion in 2014, up from $5.2 bil- tomotive Trim Systems Co. JCI ponents Group may be seeking a new direction. lion in 2013 — but experts say the low-margin holds a 30 percent stake. Special IAC, with its corporate headquarters in interiors business is ripe for consolidation and The supplier also said earli- Southfield and incorporation in Luxembourg, Ross needs a play to improve returns. Steve Miller: er this year it was seeking Report hired Robert “Steve” Miller to replace Kam- “Interiors has been on the M&A front for Brings restructuring options to ditch its seating sickas, effective Aug. 7. some time,” said Alicia Masse, managing part- experience to IAC. business, exiting automo- Leslie Rocher,M.D. , says Miller, former executive chairman and CEO ner at Southfield-based advisory firm Alderney tive all together due to the payments from federal, state of Delphi Automotive plc during its Chapter 11 Advisors LLC. “In interiors, companies are decid- capital-intensive nature of the industry. and health insurance sources bankruptcy last decade and board member at ing to get out of the business, and who sits in IAC maintains it’s in grow mode. Federal-Mogul Corp., is known for restructuring that CEO’s chair can make the difference.” barely cover the cost of SEE IAC, PAGE 18 struggling suppliers. Milwaukee-based Johnson Controls Inc. exited Beaumont Health’s residency program. Other hospitals say they subsidize their programs, Page 9 State to hospitals: Training data – stat By Jay Greene [email protected] Michigan’s 60 teaching hospitals dodged a financial bullet in June when the state Legislature passed the 2015-2016 budget that included con- tinued funding for graduate medical education training programs. It wasn’t easy, though. Gov. Rick LARRY PEPLIN Snyder’s four-year effort to end state Robin Scovill owns or manages about 40 units throughout Detroit, has started a multifamily redevelopment in Midtown and has under contract this warehouse on Custer Street. funding for graduate medical education — commonly known as GME — nearly became reality before a compromise was reached be- Housing investor: City is Wild West tween legislators and the Michigan Health & Hospital Association. The compromise, which required ‘Ragtag bunch’ sets its sights on affordable developments out in neighborhoods like Corktown, East hospitals to pay an additional $93 English Village, Morningside and Southwest million in provider taxes upfront to By Kirk Pinho the song’s title as he acquires low-income Detroit. garner federal matching dollars for [email protected] rental properties and expands into other types But he expects to grow that number as he the Medicaid program, will help pre- ursing a beer at the Cutter’s Bar and of real estate throughout the city that he has embarks on his first multifamily serve more than 5,200 medical resi- Grill rail on Orleans Street in Eastern come to love in the past eight years. redevelopment: the Traymore Building on dents and fellows at the teaching N Market, Robin Scovill looks nothing As investors and developers scour Brainard Street west of Cass Avenue in hospitals. like the wave of out-of-state investors downtown and Midtown for market rate Midtown, a $6.2 million project now under But, at the last minute, hospitals purchasing Detroit real estate on the cheap. multifamily deals, Scovill is keeping his eyes construction that is expected to morph the also had to swallow another bitter The Los Angeles filmmaker by trade has focused largely on affordable housing units for vacant 43-unit building into 28 low-income pill. Boilerplate language, inserted chin-length hair, a flowing beard and sports a city residents. units in 12 months. into the budget by Sen. Mike Shirkey, tight black T-shirt as Kid Rock’s “Cowboy” plays He has about 40 units in single-family And he is also turning his sights to the R-Clarklake, chairman of the Senate over the jukebox. homes, duplexes and fourplexes in his In some ways, the 46-year-old epitomizes ownership and management portfolio spread SEE HOUSING, PAGE 16 SEE TRAINING, PAGE 15

MUST READS OF THE WEEK Crain’s has a navy ...sort of Freelance writer Gary Anglebrandt took a 27-mile kayak trip on the Rouge River — and into the heart of metro Detroit’s industrial economy. Read Despite boom,Detroit still needs rooms at the inn and see what he saw on his 14-hour tour, crainsdetroit.com/kayak LOOKING BACK: A graphical view of how the hotel scene has changed since 1985, PAGE 5 20150720-NEWS--0004-NAT-CCI-CD_-- 7/17/2015 1:09 PM Page 1

4 CRAIN’S DETROIT BUSINESS // JULY 20, 2015 UAW,Detroit 3 to talk about wages,not jobs,this time

By David Barkholz 2017, the center estimated. CEO Sergio Marchionne said last Crain News Service The combined UAW workforce in week that Fiat Chrysler is open to With stable auto production and 2011 was 114,000, CAR said. The bringing additional jobs in-house flat factory employment predicted new jobs since went to lower-paid that are now being done by suppliers. through 2018, jobs and future prod- tier-two workers. But the number of jobs for se- uct commitments will assume a Now, the UAW and Detroit 3 will quencing parts arriving from sup- secondary role, industry experts say. spend a good portion of this year’s pliers, subassembly and, perhaps, “Job security was a big deal in prior talks bargaining about whether to maintenance are modest, said Art years,” said Dave Cole, chairman equalize pay. Schwartz, a former GM labor nego- emeritus of the Center for Automotive That means jobs, a key bargain- tiator and president of Labor and Research.“Not so much this year.” ing chip in prior negotiations, will Economics Associates in Ann Arbor. So the UAW will use its negotiat- take a back seat to pressing wage “Companies can’t promise jobs ing muscle to press for higher demands, Cole said. growth independent of industry wages. But that will collide head-on Also, Detroit 3 assembly plants growth,” Schwartz said. with the Detroit 3’s desire to keep are running above 90 percent of ca- Marchionne said last week that labor costs at the inflation rate. pacity, so there isn’t much room for FCA US would attack the pay dis- A key friction point will involve so- new workers. parity between longtime and entry- called tier-two entry-level employees, And many future product plans level workers. who earn about half what veteran through 2018 have already been an- He said there’s better than a 50 UAW members make, experts say. nounced. percent chance tier two can be Over the previous two contract cy- A notable exception is what will ended in the current round of bar- cles, job and product promises were be produced at Ford Motor Co.’s gaining. Entry-level workers today crucial to winning rank-and-file ap- Michigan Assembly plant in Wayne. start at $16 an hour and top out at a proval for concessionary contracts. Ford announced on the eve of little more than $19. In 2007, for instance, General Motors the negotiations that it will move Tier-one workers earn wages of ended a 40-hour UAW strike called the next-generation Focus compact $28.50. The Detroit 3’s current four- over the off-loading of retiree health and C-Max out of Michigan in 2018. year contracts with the UAW expire care into an independent trust and The UAW said production could Sept. 14. other concessions by promising in its move outside the U.S. But Marchionne did not say how UAW contract a detailed laundry list Last week, GM CEO Mary Barra the two sides could end the pay dis- of job and future products. went out of her way to assure the parity and not trample a company Many of those job prospects were union that GM has no plans to goal of keeping raises pegged to lost when the Great Recession hit in move production of the Chevrolet profit-sharing and other flexible 2008. But neither side knew that in Sonic out of its Orion Assembly compensation rather than straight 2007. plant. wage increases. In the approach to this year’s ne- In fact, GM has announced $5.4 His counterpart, UAW President gotiations, the Ann Arbor-based billion in new U.S. plant investment Dennis Williams, repeated that tier- Center for Automotive Research es- over the next three years, much of one workers, who haven’t had a timated the Detroit 3 won’t create which already has been detailed by wage increase in 10 years, should net new jobs. Total hourly employ- factory. In other words, GM has al- share in the newfound prosperity of ment will drift down slightly from ready laid out its future product FCA, Ford and GM. Ⅲ 147,000 later this year to 145,000 by plans outside the UAW negotiations. From Automotive News Crain’sJob Connect a new way to hire

This week marks the launch of a nity Foundation for Southeast Michi- new resource for hiring in metro gan and the W.K. Kellogg Foundation. Detroit — Crain’s Job Connect. In the process of working on In- This is not just another job tern in Michigan, Balasia said it be- Turn your board. The data-driven approach came apparent that the process of ’ created by Detroit-based Digerati Need a worker? A job? matching profiles can also fill a Lets Talk Trash Inc. trash to cash to support Job Connect uses al- need in the overall labor market. Go to: crainsdetroit.com/JobConnect gorithms to match candidates to The key to the system is blind If you pay to have recyclable waste hauled away, such as plastic, paper, or metal Match.com Mon- Cost for employers is $39 to post a you are missing a great opportunity to increase your net income. jobs. Think meets matching. ster.com. job opening. For job candidates, it’s Employers fill out a profile about In short: employers and job can- free. the traits they seek,with questions didates fill out profiles, and if they tailored to the industry and job are compatible, they are intro- references from employees’ net- category. Job-seekers fill out a produced. works of friends and family, he file tailored to work they seek. “Almost every growing company said, because job boards have be- Both see only the seven best in this region is having the same come increasingly difficult for em- matches. problem: finding talented people,” ployers to wade through. Overall, “It’s taking biases out of the said Mary Kramer, publisher of just 20 percent of all jobs are posted process,” Balasia said. “It’s exposing Crain’s Detroit Business. “We saw on job boards, Balasia said. companies to the candidates that this as a unique approach to a hir- “The end result is that most of they might overlook otherwise.” ing process that’s clearly broken.” the jobs in America are practically So far, 6,000 companies are Job Connect’s platform is pow- invisible to the labor market,” he posting and the system has 3,000 ered by WorkFountain, a product said.” active job-seeker profiles, growing Schedule your FREE Waste Audit To See How Much You Can Save that’s the end result of six years of WorkFountain is the continua- by 25 new users a day. research by Digerati. tion of a Digerati project called In- The cost to employers is $39 to Servicing the Entire State of Michigan The project is based on a clear tern in Michigan that matched in- post a position; it’s free to post an in- Email [email protected] need by business, said Digerati terns with employers. ternship. For job candidates, it’s free. Call Robert, Rick or Stu (248) 668-0800 CEO Brian Balasia. The project was funded by the To sign up, go to the website Most companies are relying on New Economy Initiative, the Commu- crainsdetroit.com/JobConnect. Ⅲ RECYCLING SOLUTIONS FOR BUSINESS SINCE 1917 20150720-NEWS--0005-NAT-CCI-CD_-- 7/17/2015 1:03 PM Page 1

CRAIN’S DETROIT BUSINESS // JULY 20, 2015 5 More firms misclassify workers to cut costs, feds say

By Judy Greenwald Crain News Service An increasing number of work- places are misclassifying employees as independent contractors, says the U.S. Department of Labor in guidance issued last week that is generating significant concern among employer representatives. The guidance issued by David Weil, administrator of the DOL’s wage and hour division, says some employees are being intentionally misclassified as a means to cut costs and avoid compliance with labor laws. The guidance says employers should use the Fair Labor Standards Act’s definition of employ as “to suf- fer or permit to work” in applying an “economic realities test” in deter- mining whether workers are employees. Factors to be considered under this test, which is now being used by courts to evaluate this issue, are: the extent to which the work perform- ance is an integral part of the employer’s business; the worker’s opportunity for profit or loss depending on his or her managerial skill; the extent of the relative investments of the employer and the worker; whether the work performed requires special skills and initiatives; the permanency of the relationship; and the degree of control exercised or retained by the employee. “In undertaking this analysis, each factor is examined and analyzed in relation to one another, and no single factor is determinative,” says the guidance. “The guidance can be categorized as not necessarily totally new, but pushing the interpretation of court decisions to the broadest extent possible in order to obtain coverage for more workers under federal wage and hour laws,” said Matthew Dis- brow, a partner with Honigman Miller Schwartz and Cohn LLP in Detroit. “The guidance has gone about as far as you take it when relying on court decisions.” “The DOL believes most work should be performed by employees, so business should be cautioned to use independent contractors spar- ingly,” Disbrow said. The 7th U.S. Circuit Court of Appeals in Chicago held in a ruling earlier this month that FedEx Corp. drivers in Kansas are employees, not independent contractors. On a related issue, observers say the DOL may issue a final proposal that will change the highly litigated, so-called “white-collar exemptions” for overtime without giving employers the opportunity to comment. From Business Insurance 20150720-NEWS--0006-NAT-CCI-CD_-- 7/17/2015 1:07 PM Page 1

6 CRAIN’S DETROIT BUSINESS // JULY 20, 2015 CRAIN’S Group effort changing the face of Pontiac DETROIT BUSINESS OPINION

OTHER VOICES: Community colleges’ Bill Pulte Bill Pulte is the founder of the Detroit Blight Authority. He is also the managing partner of Bloomfield Hills- degree reach too far? based Pulte Capital Partners LLC. hat does an eclectic mix of he movement to allow community colleges to offer four-year de- WOakland County politicians, grees in nursing is getting another shot through Senate Bill 98, private investors and community T now pending in that chamber. KIRK PINHO/CDB advocates have in common? They And with that arises the public policy discussion of where the proper are all working together to funda- The city of Pontiac is working to eradicate scenes like this. dividing line is between community colleges and Michigan’s 15 four- mentally transform Pontiac into a year public universities. blight-free, prosperous community that of Pontiac’s politicians and like — fundamentally removing all The topic has been much discussed over the past several years as once again. leaders working together to solve of the blight and working together community colleges have lobbied to offer more and more four-year de- Evoking substantive change and the problem and put the credit to produce value, not just demo grees. That can make sense in cases where there is a workforce need for transforming neighborhood com- aside. From the beginning, the numbers. baccalaureate degrees that aren’t offered by Michigan universities. munities takes more than just dollars question in Pontiac has been: How Not only are neighborhoods re- But nursing doesn’t fall under that umbrella. Baccalaureate programs — it takes putting aside individual do we quickly and completely re- bounding, Pontiac’s business com- are offered at most of the state’s public universities, and agreements that interests and political careers to move all blight from our neighbor- munity is responding as well. With- allow community college students to earn associate degrees and finish focus on what is best for the greater hoods and our city to create a in the past 18 months, 95 their final two years at four-year universities are also available. good. Property blight-free, truly prosperous city? commercial properties have So is there a gap in availability and need that can best be filled by values across The mayor and her team have changed hands, according to community colleges? Pontiac’s worst found a way to get the most out of CoStar Group Inc. That question needs to be decided on the basis of what’s best for the neighborhoods every dollar while remaining focused And many of those properties will state as a whole. That discussion needs to include research that defines have grown re- on the end game — a blight-free Pon- undergo redevelopment, some of the need for more nursing baccalaureate degrees and the most cost-ef- markably be- tiac. which is a radical reinvention of the fective way to provide them. cause of this self- With support from key state and city. The Strand Theatre’s $20 million It also includes evaluating the costs of starting new programs versus less culture, led county leaders, Pontiac has removed renovation has Slow’s Bar BQ as an expanding existing ones, opportunities for distance learning and ways by Mayor Deirdre 320 of the 905 homes deemed blight- anchor tenant. Wessen Tennis Club of controlling student costs to obtain degrees. Waterman and ed from the citywide blexting effort has transformed 38 acres of blight. Community colleges and state universities were designed to be com- Deirdre Waterman: many other com- conducted in 2014 and is expected to The M1 Concourse will replace 87 plementary parts of the public higher education system. Mission drift or Mayor of Pontiac munity and busi- achieve total blight elimination by acres of barren gateway property, internecine competition for students and dollars is not likely to serve the helps lead recovery. ness leaders. the end of 2016, according to the which was once an auto plant. state well. Today, mortgage loans are much city’s July report. More than 100 new loft apart- more readily available in Pontiac According to MLS/Realcomp ments and condos are replacing because there is a real element of data, when strategic blight removal empty office space downtown. Show caution on toxin rules collateral in the city’s housing stock. work started in Pontiac in early Dozens of new companies have In the last year alone, Pontiac’s 2014, Pontiac’s median home price committed to join the downtown The Michigan Department of Environmental Quality is considering a housing stock has appreciated 9 was $20,126, with an average of 99 business community. All of these sig- plan to reduce the number of automatically regulated pollutants by percent in value. days on the market. nificant signs of recovery and rebirth more than a third when companies seek air-pollution permits. I have been invited to visit great In April 2015, with a significant are seeded by the removal of blight. The goal is to reduce the proverbial red tape by defining fewer substances cities, large and small, across the amount of blighted buildings down, Pontiac’s public and private as toxins. The department says the substances in question are low in toxicity United States to present time-tested the data showed the median home stakeholders may be fighting a and Michigan’s regulations still will be more rigorous than federal rules. experience, guidance and solutions price was $36,000, with an average tough, uphill battle, but the future is While we agree that regulation can go overboard and sometimes scal- for their blight challenges. When I of just 33 days on the market. That’s bright for any team that is selfless, ing back is needed, we still would advise careful consideration and cau- am there, I always share the Detroit $16,000 more per home and 60 days has momentum and has one goal in tion. Environmental and public health implications should be thor- success stories from the original pi- less of being stuck on the market. mind: a blight-free, universally oughly evaluated before making the move. lots, but the story that I tell most is This is what real change looks prosperous city. Ⅲ Price-fixing probe of auto suppliers may be on the wane fter scouring metro Detroit in a division is shifting focus. But that’s $1.9 billion in fines collected as of pared with 10 companies charged Afive-year crackdown on price- not to say some new discoveries or late 2013 — but the auto industry in 2014 and 14 in 2013. fixing in the auto supply chain, has straggling reviews of single compa- prosecution that began in 2011 offi- While there’s usually some overlap the U.S. Department of Justice nies couldn’t ramp up the automo- cially overtook it in size by early in prosecutions, it’s very typical for found something else to do? tive prosecution again, before the 2014. To date, 35 auto supplier com- one industry review to wind down as It’s probably not that simple, but case is completely over. panies and 29 executives have another antitrust case gets started, some local legal experts think recent “Auto parts is probably on the pleaded guilty or agreed to do so attorneys have said of the price-fixing reports of a new Antitrust Division in- CHAD HALCOM wane. I don’t think you will see and have accepted more than $2.5 cases. But in passenger airlines, vestigation into commercial airlines is many new proceedings, and you billion in combined criminal fines. where four companies control about another sign its automotive price-fix- [email protected] might not see any all-new parts seg- But nearly all of the more than 22 80 percent of all seats flown in the doing prosecution may be nearly over. TWITTER: @chadhalcom ments or conspiracies being al- air transportation and freight com- mestic market, it’s possible the new Published reports earlier this leged,” he said. “There will be some panies and 20-plus executives to investigation won’t be as time-con- month revealed the division lines Group Inc., Southwest Airlines cleanup to do, with companies that become defendants since 2007 suming for Justice. launched a new investigation about Co. and Delta Air Lines Inc. have con- did not originally settle, but overall were convicted before the automo- “Not nearly as many people are two months ago into possible un- firmed receiving subpoenas. it is winding down.” tive prosecution got its formal start going to be involved in this case, be- lawful coordination among domes- A longtime antitrust attorney If so, that would track with the in September 2011. cause you have a lot fewer compa- tic passenger airline companies to who practices in the automotive in- government’s historical pattern. And the automotive case is show- nies involved and only so many ways artificially keep airfares high, industry and asked not to be identi- Justice’s largest single-industry ing signs of deceleration in court, to collude,” the antitrust expert said. cluding keeping a tight hold on ca- fied, told Crain’s last week the airline prosecution for collusion was previ- with just four new charges brought “But it’ll still be a full-time job for lots pacity or seat-miles flown each year. investigation and the historical ously in air cargo transportation in courts nationwide against auto of antitrust lawyers in Justice for United Airlines Inc., American Air- trend in prosecutions is a sign the and freight companies, with about companies thus far in 2015, com- weeks or months, if not for years.” Ⅲ 20150720-NEWS--0007-NAT-CCI-CD_-- 7/17/2015 10:28 AM Page 1

CRAIN’S DETROIT BUSINESS // JULY 20, 2015 7 Community colleges seek state OK to give bachelor’s degrees

LANSING — Two He doesn’t plan to ciate degrees to roughly 240 nursing Even with a small tuition bump, Ross Abraham has been promoted to metro Detroit com- raise tuition, which students each year, could increase Jensen said, a nursing bachelor’s de- digital director at the Michigan Re- munity colleges say this fall will be $96 tuition slightly for upper-level gree at Henry Ford would cost less publican Party. they are ready to offer per credit hour for courses because of the need for than at a university. Anderson, 35, was the party’s re- bachelor’s degrees in residents of the Livo- more doctorate-qualified instruc- search and communications direc- nursing. All they nia, Clarenceville, tors, President Stan Jensen said. Comings and goings tor from 2005 to 2007. She also has need is permission. Garden City, Ply- The college this fall will charge been research director for the state Schoolcraft College LINDSAY mouth-Canton and $92 per credit hour to residents of Ⅲ Ashley Ligon has been hired at House Republican Caucus and the in Livonia and Henry Northville school the Dearborn school district and a Detroit-based Clark Hill PLC’s Lans- House Republican Campaign Com- Ford College in Dear- VANHULLE districts and a por- portion of the Dearborn Heights ing office as a government rela- mittee. born are among the Capitol Briefings tion of the Novi district. More than 70 percent of tions consultant. Ligon, 28, previ- Abraham, 28, joined the leaders championing [email protected] school district. Henry Ford’s students come from ously worked as legislative affairs statewide GOP for the 2014 election an effort in Lansing to TWITTER: @LindsayVanHulle Nonresident stu- outside the district — namely De- coordinator for the Lansing-based and was the Michigan digital direc- allow Michigan’s two- dents will pay $139 troit or Downriver communities, Michigan Credit Union League. tor for the 2012 campaign of former year schools to award bachelor’s de- per credit hour. Jensen said — and they will pay Ⅲ Sarah Anderson has been hired Republican presidential candidate grees in more fields, something now Henry Ford, which awards asso- $158 per credit hour. as communications director and Mitt Romney. Ⅲ limited to four-year universities. Both schools support Senate Bill 98, which is pending in that chamber and would authorize community colleges to award bachelor’s degrees in nursing and four other technical fields. “If this happened this afternoon, I’d be ready tomorrow,” Schoolcraft President Conway Jeffress said. Should legislation be approved, he “CAN DTE ENERGY said, it would take at least a year before the program could start because of accreditation requirements and other preparations. HELP MY BUSINESS Colleges say their bachelor’s degrees in nursing would target students who have earned enough credits for an associate SAVE MONEY?” degree and want to finish their four-year degree at home, in- DTE Energy wants to help your business manage your energy usage to save money. We cluding those who want to work full time or can’t move for classes offer all kinds of energy efficiency information and tools, plus easy tips to help you be more or afford university tuition. efficient. For instance, you’ll cut heating and cooling costs by simply adding insulation More than that, however, propo- where there isn’t any, especially along piping and ductwork. Install a programmable nents of the bill say they’re motivat- ed by a health care industry that in- thermostat to automatically lower heating and raise air conditioning temperatures during creasingly desires nurses with off hours. Seal doors and windows to prevent air leaks. You’ll find even more ways to save four-year credentials. using our Interactive Business tool. And you can find a certified contractor with our Energy “We wouldn’t be interested in the baccalaureate if Efficiency Directory. It’s easy. Just go to dteenergy.com/savenow and start saving today. the nursing pro- fession hadn’t changed,” Jef- fress said. “It’s so inevitable, you know, that whether it hap- pens this season, ConwayJeffress: next season or Four-year nursing two seasons degree “inevitable.” down the road, it’s coming. The question is whether Michigan is going to be a leader or a follower or an also-ran in the pack.” Universities are their main chal- lengers, arguing that new programs would cost taxpayers more and that existing agreements with community colleges to allow students to transfer credits to complete their degrees would be threatened. Most community colleges say that they would offer completion programs for students who earn enough credits for an associate degree and that upper-level classes are mostly lecture-based rather than clinical practice. At Schoolcraft, Jeffress said he Start saving today, visit: would expect to hire at least one dteenergy.com/savenow full-time faculty member to teach upper-level classes, while the rest could be filled with part-time in- structors. DBpageAD_DBpageAD.qxd 7/16/2015 10:48 AM Page 1 20150720-NEWS--0009-NAT-CCI-CD_-- 7/17/2015 11:40 AM Page 1

CRAIN’S DETROIT BUSINESS // JULY 20, 2015 9 PEOPLE IN SPECIAL REPORT: HEALTH CARE Send news items and photos to [email protected]

Marya Drygalski, L.M.S.W., has joined Care of Southeastern Michigan in Fraser as clinical director. HEALTH CARE Kongkrit Drygalski Chaiyasate, M.D., a Leslie Rocher,M.D.(center),chief academic officer of Beaumont reconstructive Health,with residents Aaron Fisher and Sara Karnib.Money that microsurgeon at Beaumont Royal Oak received in 2013 from federal,state and Beaumont health insurance sources barely covers costs for the residency Children’s program,Rocher said. Hospital in Royal Oak, has been awarded the Best Case of the Year Award by the Chaiyasate American Society for Reconstructive Microsurgery. Reyna Colombo, M.A., P.T., director of rehabilitation services at Beaumont Hospital in Troy, received the spring 2015 Scholar Award from the World Confederation of Physical Therapy. Barry Rosen, M.D., head of the division of gynecologic oncology at University Health Network and a professor of obstetrics and Rosen gynecology at the University of Toronto, has been appointed section head for gynecologic oncology at Beaumont Hospital in Royal Oak. Linda Fitzgerald-Mays, GLENN TRIEST R.N., has been promoted to vice president of quality and clinical Hospitals say they subsidize graduate medical training, but outcomes at Botsford Hospital, the overall cost-benefit accounting has yet to be done Fitzgerald-Mays Farmington Hills. ceived about $96 million from fed- Nancy By Jay Greene count such things as savings or dents’ salaries, benefits, medical eral, state and health plan sources Schlichting, CEO of Henry Ford Health [email protected] lower medical bills for patients from malpractice premiums, administra- for its 569 residents funded by System, has been appointed raduate medical educa- the use of lower-paid residents in- tive costs and stipends for supervis- Medicare. The hospital paid for an chairperson of the Commission on tion at teaching hospitals stead of practicing physicians isn’t ing physicians. The remainder con- additional 12 residents to cover Care, established by Congress to traditionally has fulfilled done. sists of indirect payments to cover examine how to best deliver health care service demands. G two goals: training thou- Barely covers costs teaching hospitals’ higher costs to “We have to pay for faculty, pro- to military veterans. sands of young doctors and provid- treat the sicker patients they typically gram directors, resident salaries. Theodore ing lower-cost, front-line daily pa- Leslie Rocher, M.D., chief aca- have. Everything is going up. The benefits Schreiber,M.D., tient care as part of a medical team demic officer of Southfield-based Hospitals are limited in the num- don’t remain flat, but Medicare has been that includes higher-paid practicing Beaumont Health, said the $57 mil- ber of residents they can have, doesn’t recognize that,” Scher said. appointed chief of physicians and nurses. lion Beaumont Hospital in Royal Oak based on the 1996 Balanced Budget Steven Minnick, M.D., a residen- the Wayne State The goals are still important, but received in 2013 for its 395 residents Amendment. St. John Hospi- University despite more than $1 billion annu- from federal, state and health insur- Michigan hospitals also receive cy program official at tal and Medical Center Physician Group’s ally in graduate medical education ance sources barely covers the costs $163 million annually from in De- division of funds supporting those programs, of maintaining its residency pro- state general funds and troit, said GME funding still cardiology. some of the state’s 50 teaching hos- grams. Medicaid and another covers his costs, but in- Schreiber pitals say they’re subsidizing the “It is pretty close; sometimes we $100 million from Medic- creasing regulations have Gloria Kuhn, programs. are a little shy,” Rocher said. aid health plans. (See story, cut into margins the past D.O., Ph.D., a Changes in accreditation regula- Of Beaumont Hospital’s 395 resi- Page 11.) decade. The hospital also professor of tions over the past 15 years have re- dents, 91 are not covered by At Henry Ford Health Sys- pays for 75 residents over emergency duced work hours for residents, in- Medicare and so are paid for by tem, Eric Scher, M.D., vice and above the 158 paid for medicine at the creased their outpatient training Beaumont. The $57 million for president of medical edu- by Medicare to help cover Wayne State opportunities, increased supervi- GME represents 4.73 percent of cation and chairman of in- Steven Minnick: University School patient care and increase sion by teaching physicians and Beaumont’s net patient revenue in ternal medicine, said direct Regulations have of Medicine, has the number of practicing added higher osteopathic accredi- 2013, or about $189,368 per resi- GME funding does not trimmed margins. received the physicians. tation costs. dent. support the 687 residents Kuhn Advancement of “Whatever the numbers Whether the programs are ulti- Medicare is the main source of across all of its hospitals. Women in (GME funding) are, they will be dif- mately costs or moneymakers for GME funding, about $853 million “For more than 10 years, I have Academic Emergency Medicine Award ferent next year,” he said. “We need hospitals is mostly unknown. Ex- for Michigan in 2013, and comes in been dipping into (indirect pay- from the Society for Academic to maintain quality, and it becomes penses tied directly to the programs two pots. ments) to cover” GME programs, Emergency Medicine. more difficult.” are tracked, but overall cost-benefit The smaller portion, about 30 per- Scher said. accounting that would take into ac- cent, is direct payments to cover resi- In 2013, Henry Ford Hospital re- SEE GME, PAGE 10 20150720-NEWS--0010-NAT-CCI-CD_-- 7/17/2015 10:19 AM Page 1

10 CRAIN’S DETROIT BUSINESS // JULY 20, 2015

SPECIAL REPORT: HEALTH CARE

GME FROM PAGE 9 “We don’t do a profit and GME programs: loss (statement) on our Profit or loss? residency programs. ... It But do GME programs make money for hospitals? will be relatively difficult.” The short answer is nobody knows. That is because a complete Patrick McGuire, CFO, St.John Providence Health System accounting of total payments received by and expended by teaching hospitals from federal, state direct payments may be $3.5 billion Medical Colleges, said there is a feel- and insurance sources has never higher than actual indirect costs. ing by some policymakers that hos- been conducted, said Patrick Overall, federal spending for GME pitals make money on GME. McGuire, CFO of St. John Providence has been increasing for decades and “They don’t. We don’t do a good Health System. now is at about $10 billion for direct job to show that the services resi- McGuire said direct payments and indirect payments. dents provide, that are getting billed can be tracked within a hospital to But McGuire is concerned about a for, would cost more if hospitals had show expenses paid to residents, pending state regulation in 2016 that to replace them with someone else teaching physicians and benefits. will require teaching hospitals that to do that service,” Grover said. But indirect payments have not accept GME state general funds to The AAMC, which represents been accounted for because they conduct cost-accounting of revenue 129 U.S. and Canadian allopathic freely flow through the entire hos- and expenses of residency programs. medical schools and dozens of pital, he said. (See story, Page 1.) large teaching hospitals, has called GLENN TRIEST “We don’t do a profit and loss “It will be relatively difficult, de- for GME programs to provide Eric Scher, M.D., vice president of medical education and chairman of internal medicine at (statement) on our residency pro- pending on what the state is look- greater financial transparency and Henry Ford Health System, said large academic medical centers depend heavily on grams,” McGuire said. “Our mission ing for,” he said. “It is producible, for the adjusting of the GME pay- residents for daily care, particularly the “very vulnerable patient populations” who (for residency programs) is to provide but will be more difficult on the in- ment formula to include perform- probably would not be treated under current hospital staffing levels. good patient care and to offer the direct side because our residents ance-based measures. In exchange, community” fully trained doctors. (and teaching doctors) provide AAMC wants Congress to increase Overall, teaching hospitals re- Reliant on residents However, the Medicare Payment Ad- whatever care is necessary” with- Medicare GME funding to add ceive about $125,000 to $200,000 visory Commission, or MedPAC, which out concern for billing or tracking 3,000 residents at a cost of $1 billion from state and federal sources for Scher said large academic medical advises Congress, has estimated in- expenses. to help future physician supply and GME programs, said Leah Gassett, centers like Henry Ford and Detroit Atul Grover, chief public policy care for new Medicaid and insured a consultant with ECG Management Medical Center are heavily reliant on officer for the Association of American patients under Obamacare. Consultants in Boston. residents for daily patient care. With average resident salaries at “Much of that (resident work) is $50,000, benefits and perks averag- taking care of very vulnerable pa- ing another $50,000 and adminis- tient populations that wouldn’t re- trative expenses adding another ally be possible to do” based on $25,000 to $50,000 per resident, the current hospital staffing levels, said average cost to train a single resi- Scher. dent is $120,000 to $145,000, Gas- Depending on the hospital serv- sett said. ice, residents contribute 40 percent Medicare direct payments “ab- to 60 percent of direct care of pa- solutely do not cover the costs,” tients, estimated Tom Gentile, a Gassett said. “What we find is some residency program consultant and hospitals do not account for all fac- former hospital GME official based ulty and other costs.” in Southeast Michigan. But Gassett acknowledged that if Minnick said residents are a indirect payments are added, some major part of medical safety nets hospitals are close to breaking even for underprivileged populations at or making money, Gassett said. teaching hospitals. “We see lot more people getting “If you start to cut those, you will into the GME than not,” she said. weaken those programs,” Minnick “They believe there is a strategic said. “As part of the team, they in- benefit with or without” positive teract with nurses and allied health GME profit margins. professionals.” If residents were reduced or removed from the patient care equa- tion, hospitals would have to hire additional hospitalist physicians, nurses, physician assistants, nurse practitioners and licensed practical nurses, which would increase costs, Minnick said. In a larger sense, Scher said, hospital residency programs also are used to recruit top physicians for teaching, patient care and research. Another practical benefit of training residents at hospitals is the challenge “to stay on top of your game,” Scher said. “You have residents or fellows question you every day.” “My dilemma is how you replace (residents’) curiosity, their intuition and the extra things they do with great patient care,” Minnick said. The bottom line, said Rocher, is residents are “core parts of the medical team.” Ⅲ Jay Greene: (313) 446-0325 Twitter: @jaybgreene 20150720-NEWS--0011-NAT-CCI-CD_-- 7/17/2015 11:32 AM Page 1

CRAIN’S DETROIT BUSINESS // JULY 20, 2015 11

SPECIAL REPORT: HEALTH CARE Medicare provides most funding for grad medical education Outdated formula? By Jay Greene Michigan has the seventh- the 15 hospitals in Southeast Michi- [email protected] gan based on the number of Medic- Experts like Gentile and Gassett Graduate medical education fi- highest number of aid patients each hospital treats. have noted that GME funding for- nancing for Michigan’s 60 teaching residents with Other revenue, financial mulas are outdated and should be hospitals and residency training pro- benefits linked more closely to actual costs grams is a complicated mix of federal, 4,438 and receives of training residents and the needs state and health insurance payments. the fourth-highest While private insurance pay- of states to increase physician sup- Medicare accounts for the bulk of ments are not tracked, Michigan’s ply. GME funding — 73 percent — re- amount in Medicare teaching hospitals also generate For example, New York receives ceived by the top 15 Southeast GME payments. some revenue from inpatient care $2 billion of Medicare’s $10 billion Michigan teaching hospitals that services provided by residents and in annual GME payments, which were reviewed by Crain’s in this re- fellows and billed by supervising amounts to $103.63 per person for port. Overall, the state’s 60 teaching Here’s how the money breaks Michigan, said the payments are physicians, said Maria Abraham- New York compared with $1.94 for hospitals received more than down: based on a formula that includes sen, a health care attorney at Dykema Wyoming. Average payments per $850 million from Medicare — about Medicare the number of residents, beds and Gossett PLLC in Bloomfield Hills. medical resident are, for example, 8.5 percent of the $10 billion paid to Medicare patients treated. The hospital billings, which sever- $63,811 in Louisiana compared 1,100 teaching hospitals nationwide. Medicare payments come in two State of Michigan al hospitals said they could not pro- with $155,135 in Connecticut. But Michigan’s teaching hospi- streams. vide to Crain’s, are tightly regulated Several proposals have been tals also receive another $263 mil- First, there are indirect payments The state supplies GME payments and charged to payers only by super- made to lower federal contributions lion from the state’s Medicaid pro- that reimburse for the sicker patients through the general fund and federal vising physicians for patients they to GME. In 2010 the National Commis- gram, including federal matching and additional tests associated with Medicaid matching payments. see face-to-face, Abrahamsen said. sion on Fiscal Responsibility and Reform, shares, and from the state’s 13 resident physician training and teach- In 2013, Michigan provided $57 Besides GME reimbursement, or the Simpson-Bowles Commis- Medicaid HMOs. ing hospitals. They represent about 70 million in general funds, an amount Abrahamsen said, the economic ben- sion, recommended reducing both Overall, GME payments to teach- percent of Medicare funding. that has been slowly declining over efit to hospitals from residents also direct and indirect GME payments. ing hospitals in Michigan totaled The remaining 30 percent the years as legislators seek to trim should include savings by not having The commission recommended about $1.1 billion in 2013. comes from direct payments, state budgets. However, state dollars to hire hospitalists and other higher- direct GME payments be reduced to “Michigan does well nationally which are to pay residents are multiplied nearly three-fold by paid physicians or midlevel support equal 120 percent of the national compared with other states” in salaries, stipends and malpractice federal Medicaid matching funds. staff to provide direct patient care. average of a resident’s salary. Indi- GME payments, said Leah Gassett, insurance, and contributes to the Medicaid HMO revenue But over the years, Gassett said, rect GME payments would be cut to a consultant with ECG Management costs of hiring supervising physi- teaching hospitals also have ab- reflect actual costs more accurately. Consultants in Boston. Michigan has cians and staff to administer the Another source of revenue sorbed more costs for GME pro- Total savings in direct and indirect the seventh-highest number of resi- programs. comes from the state’s 13 Medicaid grams because an increasing num- GME costs would be $6 billion in dents with 4,438 and receives the Tom Gentile, a residency pro- health maintenance organizations, ber of physicians have reduced the 2015 and up to $60 billion by 2020. Ⅲ fourth-highest amount in Medicare gram consultant and former hospi- which annually contribute $100 amount of volunteer hours they Jay Greene: (313) 446-0325 GME payments. tal GME executive in Southeast million. Some $61 million goes to offer to train residents. Twitter: @jaybgreene

Online: A searchable database of graduate medical education payments for hospitals throughout Michigan: crainsdetroit.com/gme 20150720-NEWS--0012-NAT-CCI-CD_-- 7/17/2015 10:20 AM Page 1

12 CRAIN’S DETROIT BUSINESS // JULY 20, 2015

SPECIAL REPORT: HEALTH CARE Residents form the ‘front line’of hospital care By Jay Greene Hassan and Di Rezze start out have more regular eight- to 12-hour [email protected] with a good breakfast and coffee, shifts because of the fast pace of ERs. The usual workday starts before then they review any overnight ad- Each resident has several pa- 7 a.m. for internal medicine resi- mits and begin the day’s first round tients he is responsible for during dents Ali Hassan and Justin of their patients on the wards. his stay. But they are not alone. Be- Di Rezze and emergency medicine Emergency medicine residents sides nurses and specialists, super- resident Dan LaLonde at St. John Hos- like LaLonde, who just completed vising doctors, such as internist pital and Medical Center in Detroit. his third and final year last month, Oliver Dimitrijevic, are always close by to answer questions, provide ad- vice and monitor their training. For Di Rezze, who is just starting his second year, a 66-year-old African-American female patient he has seen before was admitted over the weekend suffering from short- ness of breath, dizziness and ab- dominal pain. Presenting her case in the hall- way just outside her door to Hassan and Dimitrijevic, Di Rezze methodi- cally goes over her medical history, MARIA ESQUINCA/CDB symptoms, lab work, family support Internal medicine residents Ali Hassan (left) and Justin Di Rezze (right) are supervised and probable diagnosis. by internist Oliver Dimitrijevic at St.John Hospital and Medical Center in Detroit. “She has rapidly progressing end-stage renal failure and will loved it. It is a friendly environment. solve the puzzle of their treatment.” need dialysis in the hospital and We all wanted to be like them (sen- LaLonde, the son of Tom then outpatient dialysis” for the rest ior residents and attending physi- LaLonde, a cardiologist at St. John, of her life, Di Rezze said. Dimitrije- cians),” Hassan said. was born in Grosse Pointe, went to vic and Hassan concurred as they Dimitrijevic said the work hour medical school at Wayne State and also have reviewed the latest reports rules — which limit residents to 80 did clinical clerkships at St. John on her medical chart. hours a week averaged over a Hospital. Dimitrijevic, month instead of After he applied to 15 hospitals 39, who has been In their own words the previous and went on 12 interviews, his ex- at St. John since See and hear Justin Di Rezze and Ali near-unlimited periences at St. John Hospital made 2007, said he has Hassan go about their rounds at hours — require it his first residency choice. to be “at the top www.crainsdetroit.com/video hospitals to have “We serve the underserved com- of our game” nearly twice as munity, and some have no insur- when making many residents ance. We give many primary care rounds with residents because they on staff to complete all necessary and hand them over to resident-run ask so many questions. Residents patient care duties. clinics,” said LaLonde, 29, who also are there more hours than most Di Rezze said he doesn’t feel over- plans to join Detroit-based Indepen- practicing physicians. worked with the 80-hour rule, but dent Emergency Physicians PC and “It’s good we have residents to residents are asked to go home after work primarily at St. John Providence follow up for care if patients don’t their shifts, even if they wish to stay Hospital in Southfield. have a primary care physician,” said and help out. LaLonde said he is always busy Dimitrijevic, who graduated from “The mind only takes in so much and works eight- to 12-hour shifts. the University of Nis Medical School in in terms of mental exhaustion,” said ER residents are divided into zones, Serbia. Di Rezze, noting what could hap- with one attending ER physician Di Rezze, 27, was born in Detroit, pen if residents work longer than a monitoring care in two zones. graduated from Wayne State Univer- 16-hour shift. “It is a benefit to us “My hours are very strict. I have sity’s School of Medicine and spent and also for patients. We need ade- 10 hours in between shifts to sleep,” two years as a medical student at St. quate rest. More mistakes are made he said. “We work our butts off. It is John Hospital in clinical rotations. when residents are tired.” very hard training, hard on your “I wanted a good patient popula- Hassan said residents are expect- wife and family. There is a sacrifice tion with lots of different condi- ed to provide good handoffs, or you make.” tions,” said Di Rezze. transitions in care. Like most residents and hospital “We are the front line, the first “We can’t be here all the time. physicians, LaLonde said he uses GHDForensicsLLC person to see the patient. We have a Things get missed if you don’t have his laptop computer to check on senior resident to guide us, make good handoffs,” he said. “We are con- patients he admitted to the hospital sure we don’t miss anything or stantly working on communication or are still waiting in the ER. Experience Expertise. make mistakes.” because you don’t want mistakes to “I have made a lot of decisions and ‘Huge transition’ in year 2 happen on the next shift.” never had a grave mistake. We deal Hassan said the electronic com- with life and death all the time. If we Hassan, who is starting his third munication system is still evolving, have questions, attendings are always • Accounting work as it pertains to year, has reviewed hundreds of lab using wireless computer tablets a phone call away,”LaLonde said. litigation matters tests, analyzed variations in patients’ linked to hospital electronic health One memorable case LaLonde re- vital signs, diagnosed symptoms and records. calls involved a 17-year-old who • Representing plantiffs and defendents in rendered treatment decisions over overdosed in a car and was trans- civil and criminal cases Emergency rounds his previous two years as an intern ported to the St. John ER. He was one and then as a senior resident. Gunshot wounds, auto accidents of a 15-member treatment team. A wholly owned David J. Hammel, CPA, CFE, CFF “There is a huge transition in the and overdoses are common for an “He presented DOA. It is hard to subsidiary of: President second year,” Hassan said. “You have inner-city hospital like St. John, bring someone back from that con- additional responsibilities, but you which has an emergency depart- dition, maybe a 1 percent chance. For information regarding the services provided by GHD Forensics, LLC, contact always have support of senior resi- ment with 130,000 visits each year. We brought him back and he ended +,( David J. Hammel, CPA, CFE, CFF at dents and (attending physicians).” LaLonde has treated many such up walking out of the hospital with '4%7 %(:-7367 [email protected]. Hassan, 30, was born in Dear- emergency cases. full brain power,” LaLonde said. born, graduated from St. Georges “I have to figure it out within sec- It is those kinds of cases that keep University Medical School in Grenada onds. I enjoy that aspect of the job,” LaLonde, Hassan, Di Rezze and and also spent two years as a med- he said. “I love seeing someone in Dimitrijevic going. Ⅲ 21420 Greater Mack Avenue | St. Clair Shores, MI 48080 ical student at St. John’s. their sickest moments and to help Jay Greene: (313) 446-0325 586-772-8100 | www.ghdcpa.com “I came here as a student and them, talk with their families, and Twitter: @jaybgreene 20150720-NEWS--0013-NAT-CCI-CD_-- 7/17/2015 11:41 AM Page 1

CRAIN’S DETROIT BUSINESS // JULY 20, 2015 13 CRAIN'S LIST: LARGEST MICHIGAN BIOTECH COMPANIES Ranked by 2014 revenue

Company Revenue Revenue Address Top local ($000,000) ($000,000) Rank Phone; website executive 2014 2013 Type of business

Stryker Corp. Kevin Lobo $9,675.0 $9,021.0 Manufactures medical 1 2825 Airview Blvd., Kalamazoo 49002 chairman and devices and equipment (269) 385-2600; www.stryker.com CEO Perrigo Co. plc Joseph Papa 4,061.0 3,539.8 Pharmaceuticals 2 515 Eastern Ave., Allegan 49010 chairman, (269) 673-8451; www.perrigo.com president and CEO B Diplomat Pharmacy Inc. Phil Hagerman 2,215.0 1,515.1 Specialty pharmacy 3 4100 S. Saginaw St., Flint 48507 CEO (888) 720-4450; diplomatpharmacy.com Neogen Corp. James Herbert 247.0 207.0 Develops and markets 4 620 Lesher Place, Lansing 48912 chairman and products dedicated to food (517) 372-9200; www.neogen.com CEO and animal safety Autocam Medical John Kennedy 82.0 43.0 Manufacturer of engineered 4152 East Paris Ave SE, Kentwood 49512 president and implants and instruments for 5 (616) 541-8080; www.autocam- CEO surgical applications medical.com Medcart Specialty Pharmacy Eddie Abueida 73.0 52.0 Specialty pharmacy services 32131 Industrial Road, Livonia 48150 and Ed Saleh 6 (877) 770-4633; co-CEOs www.medcartpharmacy.com InfuSystem Holdings Inc. Eric Steen 66.5 62.3 Supplier of infusion services 31700 Research Park Drive, Madison CEO to oncologists and other 7 Heights 48071-4627 outpatient treatment settings (800) 962-9656; www.infusystem.com Rockwell Medical Inc. Rob Chioini 54.2 52.4 Biopharmaceutical company 30142 Wixom Road, Wixom 48393 founder, targeting end-stage renal 8 (248) 960-9009; www.rockwellmed.com chairman, disease and chronic kidney president and disease CEO Cayman Chemical Co. Kirk Maxey, M.D. 43.0 40.8 Manufacturer of biomedical 9 1180 E. Ellsworth Road, Ann Arbor 48108 president and research chemicals (734) 971-3335; www.caymanchem.com CEO Ash Stevens Inc. Stephen Munk 20.4 22.7 Makes active pharmaceutical 10 18655 Krause St., Riverview 48193 president and ingredients (734) 282-3370; www.ashstevens.com CEO Asterand Bioscience John Canepa, 20.0 20.0 Supplier of human tissue and Tech One Suite 501, 440 Burroughs, Detroit CFO; Peter human tissue-based research 11 48202-3420 Ferrigno, CCO services to drug discovery (313) 263-0960; www.asterand.com scientists RTI Laboratories Inc. Jerry Singh 7.1 5.4 Specializing in chemical, 12 33080 Industrial Road, Livonia 48150 president and materials and environmental (734) 422-8000; www.rtilab.com CEO testing Custom Biogenic Systems Inc. John Brothers 7.0 7.0 Life science equipment 74100 Van Dyke Road, Bruce Township president and manufacturer 13 48065 CEO (586) 331-2600; www.custombiogenics.com Kalexsyn Inc. David 5.4 5.2 Provides medicinal 4502 Campus Drive, Kalamazoo 49008 Zimmermann, chemistry services to (269) 488-8488; www.kalexsyn.com CEO; Robert pharmaceutical and biotech 14 Gadwood, companies worldwide president and chief scientific officer Innovative BioTherapies Inc. H. David Humes 1.7 2.8 Develops implantable/ 15 650 Avis Drive, Suite 300, Ann Arbor 48108 president and extracorporeal devices in (734) 997-7055; innbio.com chief science field of regenerative officer medicine Oxford Biomedical Research Inc. Denis Callewaert 1.0 1.3 Biotechnology 2165 Avon Industrial Drive, Rochester Hills president 16 48309-3611 (800) 692-4633; www.oxfordbiomed.com Detroit R & D Inc. Hyesook Kim 0.6 0.4 Specializes in environmental 2727 Second Ave. MCHT Building, Suite president and health, hypertension and 17 4113, Detroit 48201 CEO cancer-related research (313) 961-1606; www.detroitrandd.com BioSavita Inc. (formerly ApoLife) Nalini Motwani 0.3 0.2 Biotechnology, R&D Michigan Life Science & Innovation president and developing cost-effective 18 Corridor, 46701 Commerce Center Drive, founding manufacturing platform for Plymouth 48170 scientist Ebola antibodies and Ebola (734) 233-3146; www.biosavita.com vaccine Versicor LLC Christie Coplen, 0.2 0.7 Electronics, controls, and 628 E. Parent Ave., Suite 600, Royal Oak president;Tom software development for 19 48067 Sawarynski, CTO medical device (248) 219-5450; goversicor.com manufacturers

This list of Michigan biotech companies is an approximate compilation of the largest companies involved in the research and development or manufacture of products designed to improve the health and well-being of humans. It is not a complete listing but the most comprehensive available. Unless otherwise noted, information was provided by the companies. Companies with headquarters elsewhere are listed with the address and top executive of their main Michigan office. B Inc.

LIST RESEARCHED BY SONYA D. HILL 20150720-NEWS--0014-NAT-CCI-CD_-- 7/17/2015 10:21 AM Page 1

14 CRAIN’S DETROIT BUSINESS // JULY 20, 2015

SPOTLIGHT KATHERINE COCKREL, PEOPLE associate vice president, DEALS & Finn Partners

ON THE MOVE Katherine “Katy” Cockrel has joined the Finn DETAILS ENGINEERING Derek Adolf to Partners Rob Wagner to shareholder, agency as as- ACQUISITIONS Fe Springs, Calif.; Kimberly LED Light- project manager, Dean & Fulkerson sociate vice & MERGERS ing LLC, Clarkston; Nextek Power Sys- land develop- PC, Troy, from president of Superior Capital Partners LLC, De- tems Inc., Detroit; and RemPhos ment, Midwest- partner, Adolf & its Detroit of- troit, a private equity firm, has Technologies LLC, Danvers, Mass. ern Consulting Swoish PLLC, fice. completed an add-on acquisition Website: toggled.com. LLC, Ann Arbor, Farmington Cockrel, 29, for its Rostra Precision Controls from project Hills. platform. Vehicle Safety Manufacturing EXPANSIONS Cockrel will work manager, Engi- Adolf closely with LLC, Newark, N.J., a division of Ros- GKN Automotive, part of GKN plc, neering Associ- Finn Partners’ Detroit-based and tra Precision Controls Inc., Laurinburg, opened its new regional head- Wagner ates Inc., Howell. MANUFACTURING national clients, providing public N.C., has acquired the turn signal quarters for the Americas at 2200 Michael Koltuniak to manufactur- and community relations coun- switch product line from Grote In- N. Opdyke Road, Auburn Hills. FINANCE ing operations sel. dustries Inc., Madison, Ind. Websites: The facility is home to the compa- Sandra Staffne to regional man- manager, Milco Cockrel, a native Detroiter, superiorfund.com, rostra.com, ny’s GKN Driveline and GKN Sin- ager, Lakeside Region, Fifth Third Manufacturing previously worked at Ignition vehiclesafetymfg.com, grote.com. ter Metals divisions, as well as em- Bank, Eastern Michigan, Shelby Town- and Welform Media Group. She also has held ployees for GKN’s Land Systems ship, from retail sales coach, Grand Electrodes Inc., public relations and marketing CONTRACTS and North American Services Blanc. Warren, from positions at Intermix, the Detroit Jervis B. Webb Co., a Farmington groups. Website: gkn.com. product line Regional Chamber, and Duffey Pet- Hills subsidiary of Daifuku North Re/Max of Southeastern Michigan LAW manager-weld rosky. America Holding Co. and a provider , Francyne Stacey Re/Max Defined to member, guns, Comau In addition, Cockrel is the vol- of airport baggage handling sys- Troy, and , Hooper Hathaway PC, Ann Arbor, Koltuniak Inc., Southfield. Rochester, owned and managed unteer PR director for the De- tems, announced a $17 million from shareholder, Butzel Long PC, Greater Toronto by broker/owner Andrea Esse, has troit-based voter awareness ini- contract with the Ann Arbor. REAL ESTATE Airports Authority, Toronto. Webb opened a Re/Max Defined office tiative Vote Detroit and a member Ashley Lanagan to marketing co- will modify and add to the bag- at 1301 W. Long Lake Road, Suite of the Detroit Riverfront Conser- ordinator, Lutz Real Estate Invest- gage handling system to reduce 195, Troy. Websites: vancy’s active professionals com- People on the Move ments, Birming- transfer time and congestion. definedrealtors.com, mittee, Riviere 28; and the adviso- announcements are limited to ham, from Website: daifukuna.com. remax-semichigan.com. Detroit Soup management positions. Email director of mar- ry board of , a micro-granting dinner that funds [email protected]. keting and com- Maxion Wheels, Novi, and All Seasons of Birmingham, inde- creative projects. In June 2015, Include person’s name, new title, munications, ThyssenKrupp Carbon Components pendent senior living apartments, Cockrel was recognized as a company, city in which the person Campus Village GmbH, Kesselsdorf, Germany, developed by Beztak Cos., Farming- Crain’s Detroit Business 20 in will work, former title, former Communities, agree to develop and market new ton Hills, with Etkin LLC, Southfield, company (if not promoted from Rochester. Also, their 20s winner. ultra-lightweight aluminum and opened at 111 Elm St., Birmingham. within) and former city in which the Jacob Timmis to She earned a bachelor’s de- carbon fiber hybrid wheels for the Telephone: (248) 737-6123. Website: person worked. Photos are Lanagan analyst, from in- gree in public relations and polit- premium vehicle OEM market. allseasonsbirmingham.com. welcome, but we cannot guarantee tern, ValStone ical science from Wayne State Websites: maxionwheels.com, they will be used. Partners LLC, Birmingham. University in 2007. thyssenkrupp-carbon- MOVES components.com. Garan Lucow Miller PC, has moved from 1000 Woodbridge St., Detroit, Toggled, Troy, developer and to 1155 Gratiot Ave., Suite 200, De- producer of next-generation solid troit. Website: garanlucow.com. state lighting technology and a subsidiary of Altair Engineering Inc., Deals & Details guidelines. has added key sellers of LED light- Email [email protected]. ing products to its roster of li- Use any Deals & Details item as a censees in the first half of 2015, in- model for your release, and look for cluding Light Engine Limited, Hong the appropriate category. Without Kong; ELB Electronics Inc., Arcadia, complete information, your item will Calif.; 1Source LED Inc., Livermore, not run. Photos are welcome, but we Calif.; Espen Technology Inc., Santa cannot guarantee they will be used.

Nominate best-managed nonprofits Crain’s Best Managed Nonprofit Contest this year will focus on actions local nonprofits are taking to execute and/or adapt their missions and operations to the trends they foresee for their own sectors. Examples include, but are not limited to, greater ethnic diversity, new generations of leadership, rapid technology change, and social and new models for organizing around projects and causes. Possible Applications are due Aug. 24. Finalists will be interviewed by judges the morning is everything. of Nov. 10. Today, more than ever, global competition, new technologies, and corporate Applicants for the award must be a 501(c)(3) with headquarters in Wayne, streamlining require innovative thinking and leadership abilities. Continuing your education can Washtenaw, Oakland, Macomb or Livingston counties. Applications must include an entry form, a copy of the organization’s code of ethics, a copy of the most LTU ranks fifth among U.S. be key to your success. From biomedical and robotics engineering to recent audited financial statement and a copy of the most recent IRS 990 form. colleges and universities for premedical programs and psychology, Lawrence Technological University boosting graduates’ earning offers innovative degrees and fast-track certificate programs to prepare Previous first-place winners are not eligible; neither are hospitals, HMOs, medical power. – Brookings Institution you for the careers of the future. clinics, business and professional organizations, schools, churches or foundations. Architecture and Design | Arts and Sciences | Engineering | Management The winners will be profiled in the Dec. 7 issue, receive a “best-managed” logo 2015 2015 2015 from Crain’s for use in promotional material and will be recognized at Crain’s BEST COLLEGES AMERICA’S BEST TOP 100 in the Midwest UNIVERSITIES UNIVERSITY Newsmaker of the Year lunch early next year. Highest Alumni Princeton U.S. News & Salaries Review® World Report® PayScale For an application form, please email YahNica Crawford at Lawrence Technological University [email protected] or visit www.crainsdetroit.com/nonprofitcontest. For 21000 West Ten Mile Road, Southfield, MI 48075-1058 | 800.225.5588 | [email protected] | www.ltu.edu information about the contest itself, email Executive Editor Cindy Goodaker at [email protected] or call (313) 446-0460. 20150720-NEWS--0015-NAT-CCI-CD_-- 7/17/2015 1:06 PM Page 1

CRAIN’S DETROIT BUSINESS // JULY 20, 2015 15

TRAINING chairman of the System in Warren, said hospitals novation and talent to states.” Health System, has testified in Lans- FROM PAGE 3 Senate appropri- historically have not accounted for But did Massachusetts’ elimina- ing before the Senate health policy ations subcom- all GME funding because funds tion of state GME payments in 2010 committee. health policy committee, requires mittee on com- freely flow through hospital depart- hurt those teaching hospitals? “They have grilled us about our hospitals that accept state general munity health, ments as residents and faculty take “No, the hospital members are margin,” Scher said. “They want to funds to conduct cost accounting on also supports re- care of patients, many times with- doing OK,” said Atul Grover, M.D., follow the money. It is not easy to do. their GME programs to show legisla- quiring hospitals out billing for services. chief public policy officer with the It is all lumped into different things. tors how total dollars are spent. to provide for fi- Shirkey said, “Just because it is AAMC. “They are able to plow clinical The money goes to the hospitals, the Hospitals that fail to submit the Mike Shirkey: “We nancial trans- hard doesn’t mean it can’t be done.” revenue back into education and re- sponsors of the institutions, and it is reports will have their fourth-quar- ask for taxpayer parency for GME. He added that hospitals once com- search.” difficult to separate out.” ter state GME funds withheld. accountability and “With the plained they couldn’t define or Leslie Rocher, chief academic offi- Scher said legislators asked him One of the problems, say hospital get blank stares.” amount of mon- measure quality. “Now we have cer of Beaumont Health, said Beau- and other GME directors how much officials, is no one had ever asked or ey we spend on many quality metrics,” he said. mont is working to devise an account- money hospitals make on teaching required them to account for all dol- GME, we need to ensure that hospi- But Shirkey said he hasn’t made ing system to track residency costs. programs. lars coming into teaching hospitals tals are accountable for a high qual- up his mind yet if state general funds Rocher said Beaumont Royal Oak “(State) funding is small compared from Medicare, Medicaid, state gen- ity training program,” said Marleau, should be cut to teaching hospitals pays for 91 residents that Medicare with Medicare, but it is not small eral funds and insurer payments. former chairman of Senate health in the future, as Snyder wants. doesn’t fund. But if state GME fund- when it comes to a hospital margin. Shirkey told Crain’s the reporting policy. “How can we have good “If GME is a significant part of ing were cut, would Beaumont re- You can’t take that margin away and requirement will give hospitals lati- physicians if they are trained in a how hospitals maintain positive duce the number of residents? expect no impact to other services,” tude in how they report GME revenue low-quality environment?” margins, they shouldn’t be ashamed Rocher said Beaumont would Scher said. “It would mean expense and expenses. He said if the data is in- How many stay? of it. We should know about it to not save money by cutting resi- reductions. There is only so much that sufficient to conduct an analysis on make decisions (on state spending) dents. State payments to support can be done with top-line revenue.” return on investment of taxpayer dol- The legislators also want more in- in the future,” Shirkey said. Beaumont residents amounted to Steven Minnick, the residency lars for GME, report requirements will formation on how many residents Janis Orlowski, M.D., chief health $3.8 million in 2013. overseer for St. John Hospital and become more specific. stay in Michigan after their three or care officer with the Association of “Patients still need to be served. Medical Center in Detroit, said po- “This is primarily related to trans- four years of training. National sta- American Medical Colleges, said 40 Who would you hire to do the work? tential GME funding changes force parency. Taxpayer spending for GME tistics show half of all doctors stay states now fund GME programs. … It would be more expensive to physician and hospital GME leaders funding has become expected” by within 50-100 miles of their residen- States dropping out include Alaba- backfill.” to look closely at their programs. hospitals without direct information cy program. ma, California, Illinois, New Hamp- Rocher said losing residents also “Unless we keep GME healthy on how Michigan taxpayers benefit “There is no reason to spend shire, New York, Wyoming and would diminish the quality of care. and if the physician shortage hits, from helping to financially support Michigan taxpayer dollars to train Massachusetts. “Residents save lives. They are part of we aren’t going to have enough doc- residents, Shirkey said. doctors only to have them leave in a “States are looking for opportu- the team,” he said. “Fewer residents tors and we aren’t going to be able “We ask (hospital officials) for few years to practice elsewhere,” nities to cut their budgets. These are would jeopardize patient care.” to turn that aircraft carrier around taxpayer accountability and get Marleau said. short-sighted decisions,” Orlowski Eric Scher, M.D., vice president of in time,” Minnick said. Ⅲ blank stares,” he said. Patrick McGuire, CFO of five- said. “Academic medical centers medical education and chairman of Jay Greene: (313) 446-0325 Sen. Jim Marleau, R-Lake Orion, hospital St. John Providence Health and medical schools bring new in- internal medicine at Henry Ford Twitter: @jaybgreene

REAL ESTATE MARKET PLACE JOB FRONT

WATERFRONT PROPERTY BUSINESS OPPORTUNITIES REQUEST FOR PROPOSALS POSITIONS AVAILABLE

FORESTVILLE - 660 Ft. on Lake Huron, 20 Acres ADVERTISING & SALES REQUEST FOR PROPOSAL FOR Lakeside, 20 Acres Behind. Majestic Overlook, Very OPPORTUNITY ASSISTANT DIRECTOR/PUBLIC RELATIONS Private, Secluded. Beautiful Ravine at N. End. Treed ARCHITECTURAL SERVICES Throughout Property, Natural Walk Down to Un- for Entrepreneurs in the Detroit Metro Area University Communications. As a member of the team, this position plays a key role in advancing the touched Shoreline. Call 248-645-5340. DIRECT MAIL AND DIGITAL. Be in control of River House Cooperative, Inc. is a residential awareness and reputation of CMU and the engagement of faculty, staff, students, alumni and friends. Will your schedule and time. Help your clients grow. cooperative in the City of Detroit. Soils and collaborate with faculty, staff, students and university leaders to capture stories that fuel the educational Work from home. Have graphics and mailing Materials Engineers, Inc. prepared a report dated experience that sets CMU apart from its peers. Using multiple communication platforms, this position will support from a national company. Have an November 8, 2013 that identifies problems with tell these stories and communicate key issues to internal and external audiences. The successful exclusive territory. Purchase your own territory the steel lintels and windows systems on the 15th candidate must stay on top of cutting-edge technology and play a role in evaluating and recommending Harbor Springs and be an entrepreneur with unlimited potential. floor and provides recommendations for new strategies that will improve CMU’s brand and broaden our reach. Required: Bachelor’s degree, corrective actions. preferably in Journalism, Public Relations or related Communications field and three years related Call 248-659-8856 for additional information Investment Property We are requesting proposals to provide River experience. For a complete list of requirements and to apply online please visit www.jobs.cmich.edu House with architectural services for this project CMU is an AA/EO institution, providing equal opportunity to all persons, including minorities, MISCELLANEOUS as follows: females, veterans, and individuals with disabilities (see www.cmich.edu/ocrie) Phase I - Design & Bidding: Prepare appropriate construction drawings/ POSITIONS AVAILABLE POSITIONS AVAILABLE NEED WAREHOUSING? specifications and bidding documents based on Space available in Plymouth, Mi. the SME Report, professional experience and any required site visits. Solicit/Advertise Request SAP SUPPLY CHAIN CONSULTANT • Cross-Dock Services • Pick & Pack PRODUCT ENGINEER II for Bid and respond to bidders questions. A RAYNET AMERICAS, INC. • Sorting • S.E. Michigan LTL Services minimum of three (3) competitive bids must be Hutchinson FMS, Inc. seeks Product Engineer • Diverse Supplier • Reasonable Rates received. Schedule with Owner and conduct one ROCHESTER HILLS, MI. II to work in Auburn Hills, MI, to provide (1) on-site pre-bid meeting for prospective engineering leadership with prototype support, • 4 Bedroom 3 Bath house Duties: Implement & improve SAP-based supply Call 810-701-0833 bidders if needed. Prepare and issue any chain processes & flows, inc’l disseminating sales support, product development, and • + 2 Apartments addendums necessary. Evaluate bids and funct’l & dev specs; gather reqs & analyze manufacturing support to assigned automotive • $52,080 potential gross income WEDDING SERVICES provide Owner a recommendation for award. existing ERP sys capabilities, & act as SAP app customer platform and vehicle programs. Subsequent to an award, prepare and assist in Requires Master’s in Mechanical Engineering • Walk to Downtown and Marina specialist in Materials Mgmt (MM) & Warehouse execution of appropriate AIA Contract between Mgmt (WM), inc’l defining & implementing plus 3 years relevant experience in mechanical • Just renovated $349,000 Owner and successful bidder. associated business & logistics processes; 15% engineering, including automotive or relevant Waterfront Weddings industry experience with hose and tube products; Phase II - Construction Administration: travel, both domestic & int’l. Full duties at Northern Michigan www.araymond.com. Req. Bach Deg in Comp OR Bachelor’s in Mechanical Engineering plus 5 Joe Blachy Provide Owner with construction administration Sci/IT, Business, or an Eng’g discipline, or for’gn years progressive, relevant experience in (231) 409-9119 DestinationWeddingsUpNorth.com services for duration of the project. Services equiv; 5 years of exp in SAP supply chain analyst mechanical engineering, including automotive or included, but not limited to: Review and approval or consulting pos’n. Exp must inc’l: end-to-end relevant industry experience with hose and tube Email: [email protected] Website: joeblachy.com of project submittals, review and approval of SAP project implementation, inc’l configuring & products. Call anytime between 7am & 10pm 7 days a week! 906-643-8621 contractor’s applications for payment, site visits to customizing SAP MM & WM modules, and Submit resume with reference to 420 Howard St., Petoskey, MI 49770 observe contractor progress and conformance to providing post-project support; integrating SAP job code 6024480 to: specifications as deemed appropriate, frequent MM/WM modules w/ SAP SD, QM, LE, & PP Melissa Kripl, Director HR coordination and communication with Owner’s modules; change mgmt & organizational dev for Hutchinson FMS, Inc. Board of Directors once per month during SAP-based logistics sys, inc’l providing training & 1060 Centre Road construction to provide updates, review any audit compliance; data conversion w/ LSMW, & Auburn Hills, Michigan 48326 contractor requests for extra and provide external app interfacing w/ IDOC; root cause The Crain’s reader: recommendation to the Owner, and recommend analysis of automotive logistics-related issues, any additional work or contract modifications inc’l value stream & process mapping of supply based upon conditions discovered during chain ops w/ lean principles. Exp can be acq’d MISCELLANEOUS construction. Detailed invoicing to be submitted concurrently. 29.2% are with companies monthly based upon personnel hourly rates. Please Send Resumes to: Please submit signed proposals by close of [email protected] contemplating moving/ business on July 31, 2015. We request SURVEY proposals also include a list of hourly rates to be EOE used in Phase II, a list of references for expanding. Help them restoration/repair work of similar nature and POSITIONS WANTED ANALYZE resumes of personnel that will be associated with ﬁnd you by advertising in the project should your firm be selected. If you wish to visit the site prior to submitting û WANTED û MATCH a proposal and receive a copy of the SME ASSEMBLY WORK Crain’s Real Estate section. report, please contact the General Manager at (313) 821-2700 to schedule. ISO 9001-2008 certified company seeks assembly &20,1*6221 work. We assemble over 16,000,000, but not limited to, plastic parts per year. We will pick up 313.446.6086 • FAX: 313.446.034 7 Advertise your and deliver. CALL JOHN @ 586-741-8493 E-Mail: cdbclassif [email protected] Products and Services in Crain’s Detroit Business Crain’s Classifieds Gets Results Stay tuned to CrainsDetroit.com | 20150720-NEWS--0016-NAT-CCI-CD_-- 7/17/2015 2:15 PM Page 1

16 CRAIN’S DETROIT BUSINESS // JULY 20, 2015

If the bill is adopted, the nonpar- tric vehicles at home. more in fuel than they will pay in FEES tisan House Fiscal Agency estimates Automakers like incentives be- higher fees. But he said the state FROM PAGE 1 the extra fees on alternative-fuel ve- cause they can boost demand for hy- should not arbitrarily determine hicles could annually generate be- brid and electric vehicles at a time buyer behavior. Michigan who purchase one vehicle tween $764,000 and $2.5 million — when many customers still question “We are the car capital. We want over another.” a wide gap explained in part be- their range and the availability of to be pro-innovation and we want What’s fair? cause the Michigan Department of charging stations, among other infra- to be pro-technology,” Leutheuser State doesn’t know how many pas- structure hurdles, said Stephanie said. “We don’t want to be known The argument in some ways is senger vehicles would be covered. Brinley, a senior analyst with IHS. Gas for having the highest fees in the over a relatively small amount of As of April 2014, the state depart- prices also have been lower, sending country.” potential revenue — up to about ment counted more than 25,000 ve- buyers back to trucks and SUVs in Other states have taken similar $2.5 million annually, at least initial- hicles powered at least in part by greater numbers. steps. For example, Idaho charges ly. electricity by searching model And manufacturers need people owners of plug-in electric and hybrid But Rep. Eric Leutheuser, R-Hills- names such as the Honda Insight, to buy the new technology to help vehicles annual fees of $150 and dale, sponsor of House Bill 4612, Nissan Leaf, Toyota Prius or Chevro- them comply with federal average $100, respectively, on top of standard said the fees are a way to ensure let Volt, the agency said. fuel economy standards that will registration fees, according to the fairness in a system in which every- If all of those were considered reach 54.5 mpg fleetwide by 2020. federal energy department. one would have to pay more. passenger hybrids, that would raise Higher registration fees won’t dis- Georgia, which eliminated its pur- “You don’t want to discourage in- $764,000, compared to $2.5 million suade serious customers, Brinley chase incentives for plug-in electric novation. You don’t want to discour- if all were electric, the agency esti- said. But if adopted everywhere, it vehicles, added an annual license fee age early adopters,” said mated. could become a disincentive to pur- of $200 for passenger EVs and $300 Leutheuser, who owns Buick and Call for lower fees chase. for commercial vehicles. GMC dealerships in Hillsdale. “(In) trying to address it through Toyota, in submitted testimony “I just circle back to the notion The automakers’ alliance, in the this road bill, we’re trying to answer a to the House, proposed an “access that even though those are true letter to Meekhof, recommended a question legislatively that hasn’t been fee” that would replace the state’s statements, we pay for our roads lower fee structure of an additional handled in the market yet,” Brinley gas tax with a flat fee determined by with two things — (fuel taxes and $25 for plug-in hybrids and $75 for from Southfield-based IHS Automotive. said, adding that lawmakers should the state. That could be an average registration fees),” he added. “I want battery-powered electric vehicles, But Michigan pales in comparison wait at least five years for the market of $140 per vehicle. to make sure I’m applying those as should the Legislature move for- to nation-leading California, which to settle. “I would almost say any an- Toyota said the fee would be fairly as possible.” ward with the plan. registered more than 29,500 new swer is wrong right now. We just don’t technology-neutral, wouldn’t pun- HB 4612 is pending in the House It also urged that the higher fees electric vehicles and nearly 145,500 know how it’s going to play out yet.” ish adopters of new technology and after being returned from the Sen- be paid when renewing a vehicle hybrids last year, according to IHS. Add the fact that Michigan has doesn’t raise privacy concerns the ate this month. yearly, not at the time of purchase. California also offers incentives such a small fleet of hybrids and way a vehicle-miles-traveled fee The Senate’s version added high- “The Senate should carefully to encourage buyers to consider hy- electric cars on the road that any would. er registration fees for commercial consider whether increased fees brids or electric cars, according to revenue generated will be small, she Leutheuser said he understands vehicles that weigh more than 8,000 paid by the purchaser of a vehicle at the U.S. Department of Energy’s Alter- said, and “it’s also a nice little politi- the industry’s position. But, he pounds, should they adopt alterna- the time of sale will act as an obsta- native Fuels Data Center. cal throwaway.” added, states have to do something tive fuel technology — $100 for hy- cle to that sale,” Weikel wrote. “The The federal government also of- Leutheuser said he intentionally to combat lower fuel tax revenue brids and $200 for electric. more upfront costs that state policy fers income tax credits of up to proposed conservative fee increases that is an offshoot of better fuel effi- Other pieces of the Senate plan adds to a vehicle purchase, the $7,500 for the purchase of electric or based on the average number of ciency reducing gasoline use. include raising diesel and gasoline more money that consumers will plug-in hybrid vehicles. miles driven in Michigan per year “We do our roads with fuel taxes taxes from 19 cents to 34 cents per need to have in hand to make that Michigan does not offer any such and the average fuel economy of ve- and registration fees. It may not be gallon by 2017 and tying them to in- purchase.” credits, although some utilities, in- hicles that would be considered hy- the best system, but it’s the one flation, as well as cutting $700 mil- In 2014, Michigan registered 337 cluding Detroit-based DTE Energy brid or electric under the bill. we’ve got,” he said. Ⅲ lion from unspecified state depart- new electric vehicles and nearly Co., offer incentives to residential The idea, he said, is that drivers Lindsay VanHulle: (517) 657-2204 ments. 12,400 hybrids, according to data customers who charge plug-in elec- of hybrids or electric cars will save Twitter: @LindsayVanHulle

think anybody has anything to here, a 1,200-square-foot bungalow nis Kefallinos’ Detroit-based Boydell without its challenges. HOUSING bring to Detroit because everything on Fairmount Drive northeast of Development Co., who is one of Par- Just one of those is tenant turn- FROM PAGE 3 is already here.” Gratiot and East State Fair avenues in adise Valley’s property managers, over. Milwaukee Junction area, where last The beginning the city’s northeast corner. along with Evelyn Harris, another “That costs money,” said Scovill, week, on top of a 45,000-square- That was Halloween 2007. Paradise Valley property manager adding that his rental units are foot warehouse building on Custer Scovill’s journey into real estate But just 14 months later, Mag- who is also CEO of Detroit-based Ear more than 90 percent occupied. Street he has under contract, he began with conversations about giore died of what a coroner Housing Property Management Inc. “Then you’re turning properties looked across the city that he is con- money he had with his late wife, deemed as AIDS-related pneumo- Sitting outside the Custer Street and things tend to be damaged. sidering making his permanent Christine Maggiore, beginning in nia, although there was no autopsy. building last week, Novack said he People, when their hope is lower, home after he marries next month 2005. She had been a key figure in a small manages Scovill’s properties in they treat things differently.” and his son graduates from high For Scovill — a graduate of the but vocal group of people who Corktown and southwest Detroit, Another challenge in the afford- school next year. California Institute of Arts whose questioned whether the human im- while Harris manages those in the able housing market is finding the If the deal closes in September as 2004 documentary, “The Other Side munodeficiency virus, or HIV, caus- remaining Detroit neighborhoods. right property and project to work expected, the building, he says, with of AIDS,” won the Special Jury Prize es AIDS. Those questions were the Both have small ownership inter- on, said Andy $1 million or $2 million in renova- at the American Film Institute’s Los focus of “The Other Side of AIDS.” ests in Paradise Valley. Daitch, execu- tions, could turn into workspace for Angeles International Film Festival Investment money Robert Zinser, housing consult- tive director of people like high-end furniture arti- — money was something he didn’t ant for the Cass Corridor Neighborhood Southfield- sans as well as space for such events particularly see as a high priority. To build a real estate portfolio Development Corp., is consulting on based Affordable as weddings and corporate parties. For Maggiore, an activist and au- and thereby personal wealth, how- the Traymore Building project. He is Housing Advisors, And a 1-acre Horton Street lot next thor, it was something that wasn’t dis- ever, Scovill needed money. also one of the consultants on a a subsidiary of to the building could become the site cussed openly during her childhood. Enter Robert Leppo. $16.7 million plan to redevelop Marcus & Mil- of another new endeavor for Scovill “It’s almost like sex in this cul- Now 71, he had built a successful greater downtown buildings at 3350 lichap. — a ground-up development with 60 ture,” Scovill said. “And we came to venture capital career targeting start- Cass Ave. and 149 Davenport St. into Andy Daitch: But beyond to 80 residential units on two-thirds the conclusion that we were finan- up and early-stage companies, pri- 47 low-income housing units. Think long term those ordinary of the site, with the rest of it possibly cially illiterate.” marily those focused on the Internet. “We are kind of a ragtag bunch,” about real estate in challenges of the being used for urban farming. So Scovill started reading about And he was sympathetic to Mag- Scovill said. “I’m here to make Detroit. sector, Novack “Detroit is the most desirable city how to accumulate personal wealth giore’s work as an activist and author. money. I really am. I have obliga- said, Detroit real in the country right now for the and talking with people well-versed He bankrolled the production of tions, desires and things I want to estate investment isn’t for the faint right people,” he said. in the subject. and was executive producer of the do, but I guess I’m sort of discover- of heart. “It’s the Wild West, man. If you’re The common denominator? AIDS documentary. And he is now ing that I want to make money in “It isn’t short term. It’s long term,” a young entrepreneur with very lit- That real estate investment is a way largely financing Scovill’s real estate ways that are really … fulfilling and he said. “You have to invest time, tle experience, you can come here to build and maintain wealth. deals. fun and to work with people who energy and money, and in the long and hustle and work your way Scovill had his answer. Aside from The investments are made are good people.” term, it pays off. But you have to be through it and find a way. If you’re a Detroit, he looked for investment op- through Paradise Valley Investment The affordable challenge ready to take it on. If you’re on Wall Japanese rock band that wants to portunities in Kansas City; Charlotte, Group LLC, of which Leppo owns Street flipping stocks, stay flipping own your own studio, come here. If N.C.; Indianapolis; and Atlanta. But it about 70 percent. Scovill is a minor- Scovill said Paradise Valley had stocks. If you’re looking for assets in you’re a young family looking to was while midair in a cross-conti- ity partner. about $1.8 million in revenue — the long term, though, Detroit is the start over in a way that feels more nental flight from Los Angeles to the Others partners in Scovill’s real es- coming from rental cash flow and place to be.” Ⅲ meaningful, you’re surrounded by Motor City that his attorney closed tate developments are Eric Novack, property sales — last year, but af- Kirk Pinho: (313) 446-0412 people creating meaning. I don’t on his first low-income rental house the senior project manager for Den- fordable housing investment is not Twitter: @kirkpinhoCDB 20150720-NEWS--0017-NAT-CCI-CD_-- 7/17/2015 1:23 PM Page 1

CRAIN’S DETROIT BUSINESS // JULY 20, 2015 17

The Faster Horses purchasing race tickets. CRAIN’S MIS festival has had a “We took that insight from Faster FROM PAGE 1 DETROIT BUSINESS greater economic Horses, to replicate that on a small www.crainsdetroit.com between $40 million and $50 million. impact on the area scale on a NASCAR weekend to Editor-in-Chief Keith E. Crain MIS is one of 13 speedways owned surrounding convert some of these kids right Group Publisher and Editor Mary Kramer, (313) 446-0399 or [email protected] nationwide by Daytona Beach, Fla.- Michigan then,” Curtis said. “We can market Associate Publisher Marla Wise, (313) 446-6032 based International Speedway Corp. International that music festival completely inde- or [email protected] Executive Editor Cindy Goodaker, (313) 446-0460 MIS’ June and August NASCAR Speedway than pendently of NASCAR.” or [email protected] races, which are three-day week- NASCAR races Curtis said there’s been some Managing Editor Jennette Smith, (313) 446-1622 or [email protected] ends, account for 85 to 90 percent of because the skepticism within the racing industry Director, Digital Strategy Nancy Hanus, (313) 446- the track’s annual revenue, Curtis millennial audience about MIS’ decision to devote re- 1621 or [email protected] Managing Editor/Custom and Special Projects said. Before Faster Horses, the races buys stuff instead sources to the event, but there’s been Daniel Duggan, (313) 446-0414 or were 99 percent of business. of bringing it, says a much larger positive reaction. [email protected] Assistant Managing Editor Kristin Bull, The race percentage could fur- MIS President “I think everyone is watching to (313) 446-1608 or [email protected] ther shrink with a successful rock RogerCurtis. see how ours goes,” he said. Senior Editor/Design Bob Allen, (313) 446-0344 festival using the Faster Horses tem- COURTESY OF LIVE NATION The first Keloorah suffered be- or [email protected] Senior Editor Gary Piatek, (313) 446-0357 plate because music festivals have cause of rain that plagued the entire or [email protected] exploded in popularity in the past head to town for breakfast and lunch. of Palace Sports & Entertainment LLC Quicken Loans 400 weekend, Curtis Research and Data EditorSonya Hill,(313) 446-0402 or [email protected] couple of decades. From Jackson to Ann Arbor to Adrian, in Auburn Hills. said. Still, he counts it as a success. Web Producer Norman Witte III, (313) 446-6059 the restaurants are packed,” he said. Promoters like festivals because “We had 12,000 on Saturday or [email protected] Taming horses Editorial Support (313) 446-0419; YahNica Craw- This year’s they can be cash cows: The Coachel- night, the vast majority who would ford, (313) 446-0329 Faster Horses attracts about three-day pass la festival, which has expanded to not otherwise have been at a Newsroom (313) 446-0329, FAX (313) 446-1687 , 40,000 attendees each day, and this was $185, and consecutive three-day weekends NASCAR weekend,” he said. TIP LINE (313) 446-6766 year’s event was this past weekend. sold out. So did with 150 acts, last year drew 579,000 Other efforts REPORTERS Beverly Hills, Calif.-based Live Na- $335 and $785 attendees and grossed $78.3 million, Jay Greene, senior reporter Covers health care, insurance, energy, utilities and the environment. tion Entertainment is the event’s or- premium passes. according to Billboard.com. The track is investing in technolo- (313) 446-0325 or [email protected] ganizer and promoter, and leases The event, with Such numbers are why Live Na- gy upgrades, such as bolstering wire- Chad Halcom Covers litigation and the defense industry. (313) 446-6796 or [email protected] the track for the festival. nearly 40 acts, tion and MIS want a second event less Internet access and cellular con- Tom Henderson Covers banking, finance, tech- How much it spends to rent the featured stars at the track. nectivity, Curtis said. It was the first nology and biotechnology. (313) 446-0337 or [email protected] track hasn’t been disclosed. Curtis RogerCurtis: such as Brad “I think there’s definitely a market NASCAR track to offer free Wi-Fi. Kirk Pinho Covers real estate, higher education, said fees can range from a few hun- Making tracks to Paisley, Carrie for it. I think there’s pent-up de- MIS also offers FanVision hand- Oakland and Macomb counties. (313) 446-0412 or [email protected] dred dollars for a wedding to near- attract millennials. Underwood, mand,” Curtis said. held devices that rent for $54.99 for Bill Shea, enterprise editor Covers media, advertising and marketing, the business of ing $1 million for a longer lease of Dwight Yoakam One bonus not available at every the NASCAR weekend. The small sports, and transportation. the entire facility. Live Nation is and Florida Georgia Line. festival venue: MIS has 8,500 camp- devices, which come with headsets, (313) 446-1626 or [email protected] using all of MIS except for the sites available, which range from have a screen with multiple chan- Lindsay VanHulle, Lansing reporter. (517) 657- Festival growth 2204 or [email protected] media facilities and suites. $155 to $320 for the NASCAR races. nels that show live race feeds, in-car Dustin Walsh Covers the business of law, auto MIS offers a variety of on-site Multiday music festivals with cameras, real-time statistics, replays suppliers, manufacturing and steel. (313) Chasing millennials 446-6042 or [email protected] services, from concessions to sign- major headliners trace their roots to and other race content. Sherri Welch, senior reporter Covers nonprofits, services, retail and hospitality. (313) making to website creation, and events such as the Monterey Interna- The track hasn’t sold out either Additionally, MIS’ August race 446-1694 or [email protected] those options increase the rental tional Pop Music Festival in 1967 and NASCAR weekend since 2006, a will be a trial run for FanVision’s lat- ADVERTISING fee, Curtis said. The track and Live Woodstock in 1969, and their mod- phenomenon blamed on weather est offering, a small device that clips Sales Inquiries (313) 446-6032; FAX (313) 393-0997 Nation have a revenue sharing deal ern incarnations that feature signifi- and the recession, but also on a fail- onto a fan’s smartphone to turn it Sales Manager Tammy Rokowski for the festival, he said, that is based cant corporate and music industry ure to market racing to millennials. into a wireless FanVision device. Senior Account Executive Matthew J. Langan Advertising Sales Christine Galasso, Catherine on all the revenue streams. backing stem from the launch of “In NASCAR, we lost a genera- The track also generates revenue Grace, Joe Miller, Sarah Stachowicz Live Nation also will retain the Lollapalooza in 1991. tion. With all the growth through by renting out all or some of the site Classified Sales Manager Angela Schutte, (313) majority of any future festival at MIS, Lollapalooza is in Chicago’s the ’90s and early 2000s, the sport for vehicle testing by OEMs (often 446-6051 Classified Sales Lynn Calcaterra, (313) 446-6086 but the track will get a nice payday. Grant Park on July 31-Aug. 2 this didn’t reach out to millennials. We competitors), government agencies Audience Development Director Eric Cedo Faster Horses was born of the MI year. Among other notable festivals, just thought dad brought the kids, and the military, Curtis said. Con- Events Manager Kacey Anderson Fest festival, which featured Mitch either fixed or traveling, are the Bon- and it got passed down. There were nected cars and autonomous vehi- Creative Services Director Pierrette Dagg naroo Music and Arts Festival Senior Art Director Sylvia Kolaski Ryder, Jeff Daniels, the Romantics, in Ten- changes in society, and we didn’t cle testing are increasingly common Marketing Coordinator Ariel Black Sheryl Crow and the Raconteurs, and nessee and the Coachella Valley Music adapt, didn’t notice. Now, we’re at the track, he added. Special Projects Coordinator Keenan Covington was locally produced by a third party, and Arts Festival in California. backtracking,” Curtis said. “We’ve been a nice, neutral sand- Sales Support Suzanne Janik, YahNica Crawford Editorial Assistant Nancy Powers Curtis said. The organizer got in over “People have understood the “To get a millennial interested in box where everyone can come play Production Manager Wendy Kobylarz his head, he said, and MIS stepped in power of live music, but it has been NASCAR, we can’t go out and mar- at the same time,” Curtis said. Production Supervisor Andrew Spanos to ensure the event would go on. very fragmented,” Live Nation Chair- ket Jeff Gordon and green flag The track and its grounds also are CUSTOMER SERVICE Word circulated through the con- man Greg Maffei told Reuters in Oc- changes,” he said. “That’s not even rented for a Tough Mudder skills con- Main Number: Call (877) 824-9374 cert industry that MIS was able to tober. “The common experience of in their vocabulary.” test, the state high school cross coun- or [email protected] Michi- Subscriptions $59 one year, $98 two years. Out of handle such an event, and Live Na- the new album release has disap- NASCAR and its tracks have been try championships, the annual state, $79 one year, $138 for two years. Outside tion eventually approached the track peared. But the shared experience of experimenting with ways to attract gan Wine and Beer Fest, driving U.S.A., add $48 per year to out-of-state rate for sur- face mail. Call (313) 446-0450 or (877) 824-9374. about creating a festival, Curtis said. concerts has only grown in power younger fans. As part of that effort, schools from racers such as Rusty Single Copies (877) 824-9374 Faster Horses debuted in 2013 and scale. This is the best place in MIS launched the Coachella-style Wallace, and the Big Mitten Fair, which Reprints (212) 210-0750; or Lauren Melesio at [email protected] and has had a greater economic im- music to be.” “Keloorah” at the Quicken Loans 400 is a nonagricultural, tech-focused To find a date a story was published (313) 446- pact on the surrounding area than A local entertainment executive race in June. spinoff of the state fair, Curtis said. 0406 or e-mail [email protected] Crain’s Detroit Business is published by NASCAR races, Curtis said, because echoed that. Keloorah — the phonetic spelling The track’s rural location hasn’t Crain Communications Inc. the primarily millennial audience “Festivals provide amazing value of a Celtic word for celebration, Curtis hurt MIS. Chairman Keith E. Crain doesn’t do events like race fans do. and target very specific demo- said — is a mini-live music festival fea- “Detroit is still our largest market President Rance Crain Treasurer Mary Kay Crain “They pack nothing, so they go out graphics, offering extended oppor- turing rock, alternative and country for everything we do,” he said. Executive Vice President/Operations and buy everything. Underwear and tunities to bond within a mini com- acts in a branded area at the track set “We’re just a facility, we’re not a William A. Morrow Executive Vice President/Director of Strategic phone chargers. They don’t cook, ei- munity and listen to genre-specific aside Friday and Saturday for food team, but we’re trying to get people Operations Chris Crain ther. They’re not grilling out. They music,” said Dennis Mannion, CEO and drinks, games and parties. A near- to think of us like a fifth hometown Executive Vice President/Director of Corporate Operations KC Crain by Keloorah-only camping area allows team. It’s not that far to come out to Vice President/Production & Manufacturing partying until 3 a.m. rather than the really big events.” Dave Kamis INDEX TO COMPANIES midnight “quiet hours” curfew. Bill Shea: (313) 446-1626 Chief Financial Officer Thomas Stevens Chief Information Officer Anthony DiPonio These companies have significant mention in this week’s Crain’s Detroit Business: Entrance to Keloorah requires Twitter: @Bill_Shea19 G.D. Crain Jr. Founder (1885-1973) Affordable Housing Advisors ...... 16 Honigman Miller Schwartz and Cohn ...... 5 Mrs. G.D. Crain Jr. Chairman (1911-1996) Alderney Advisors...... 3 IAC Group ...... 3 Editorial & Business Offices AlixPartners ...... 18 IHS Automotive ...... 16 1155 Gratiot Ave., Detroit MI 48207-2732; (313) 446-6000 Beaumont Health ...... 9, 15 Labor and Economics Associates ...... 4 BANKRUPTCIES Cable address: TWX 248-221-5122 AUTNEW DET Beaumont Hospital ...... 9 McKeen & Associates ...... 18 CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 is Center for Automotive Research ...... 4 Michigan Health & Hospital Association ...... 3 The following businesses filed for Fame Industries Inc., 51100 published weekly, except for a special issue the Conway Mackenzie ...... 18 Michigan Hematology-Oncology ...... 18 protection in U.S. Bankruptcy Court in Grand River Ave., Wixom, voluntary third week of October, and no issue the fourth Dykema Gossett...... 11 Michigan International Speedway ...... 1 week of December by Crain Communications Inc. Fiat Chrysler ...... 4 Olsman, MacKenzie and Wallace ...... 18 Detroit July 10-16. Under Chapter 11, Chapter 11. Assets: $187,317.15; lia- at 1155 Gratiot Ave., Detroit MI 48207-2732. Peri- odicals postage paid at Detroit, MI and additional Foley, Metzger, Baron & Juip ...... 18 Paradise Valley Investment Group ...... 16 a company files for reorganization. bilities: $1,797,938.43. mailing offices. POSTMASTER: Send address Ford Motor ...... 4 St. John Hospital and Medical Center .. 9, 12, 15 Chapter 7 involves total liquidation. Integrated Health Group PC, changes to CRAIN’S DETROIT BUSINESS, Circula- tion Department, P.O. Box 07925, Detroit, MI General Motors ...... 4 St. John Providence Health System ...... 10, 15 Extreme Fun Family Entertain- 11650 Belleville Road, Suite 105, Henry Ford College ...... 7 Schoolcraft College ...... 7 48207-9732. GST # 136760444. Printed in U.S.A. 9, 15 ment LLC, 1686 Sanctuary Circle, Belleville, voluntary Chapter 7. As- Entire contents copyright 2015 by Crain Commu- Henry Ford Health System ...... nications Inc. All rights reserved. Reproduction or Henry Ford Hospital ...... 9 Howell, voluntary Chapter 7. Assets sets and liabilities not available. use of editorial content in any manner without and liabilities not available. Natalie Broda permission is strictly prohibited. 20150720-NEWS--0018-NAT-CCI-CD_-- 7/17/2015 2:28 PM Page 1

18 CRAIN’S DETROIT BUSINESS // JULY 20, 2015

surance carrier for Fata as ment will waive its claims, Wilbur Ross FATA well as McLaren and Crit- take part in the facilitation FROM PAGE 1 tenton as hospitals that process or try to resolve its practice business manager, George had an association with own claims via the crimi- Karadsheh, and a dispute with him. nal restitution hearing be- creditors against his Michigan Hem- “There’s been some in- fore Borman. atology-Oncology PC practice cen- dication as we’ve been Randall Juip, partner at ters. preparing that the insur- Livonia-based Foley, Baron, The victim suits were put under ance carrier may try to Metzger & Juip PLLC and at- a stay last month pending an out- claim an exemption from Brian McKeen: torney for Michigan Hema- of-court facilitation that has yet to covering (Fata) because Fata’s insurance tology in the civil suits, said begin, but attorneys hope to know this is outside the scope of carrier may seek all sides in the lawsuits have by late August if it will yield any re- malpractice coverage, be- coverage agreed on a facilitator and exemption. sults. cause it’s fraud or another are working on a schedule BLOOMBERG Those cases from various law kind of (mis)conduct,” to discuss settling the cases. firms also name several co-defen- said Brian McKeen, president of “Nearly everyone wants to get “Miller, the dants, including Crittenton Cancer Detroit-based McKeen & Associates started as soon as possible, and I’m consummate Center, St. Joseph Mercy Health Sys- PC, which is handling about eight pleased that we were able to agree tem and McLaren Regional Medical other victim suits. to get all these cases on hold to deal guy, is Center and several physicians who “But he’s covered for claims of allow us to productively discuss a coming in to allegedly made referrals to Fata’s malpractice, and we allege mal- reasonable settlement,” he said. IAC FROM PAGE 3 cancer centers or collaborated practice. This is treatment well “But there is a good deal of com- make a deal, … with him on treatment. Fata leased outside the standard of care. Is an plexity built into the process.” “We have been described as a con- look for a sale or office space from McLaren in insurer allowed to simply rechar- Juip also said all the health care solidator in the interiors segment look for a Clarkston and Crittenton in acterize our allegations? I don’t companies and the government are with a total of 17 acquisitions since Rochester Hills. think so.” “aware of the facilitation we were established in 2006,” David merger, trying to Fata, 50, pleaded guilty last Sep- MacKenzie also told and can use that process in Ladd, executive director of marketing find a way for tember to 16 of more than 20 crim- Crain’s via email last week resolution of their own and communications at IAC, said in inal charges including fraud, that the facilitation process concerns,” but would not an email. “The role we play going for- Wilbur (Ross, money laundering and conspiracy could take up to three be specific on who has ward will be determined by Mr. who controls in a federal indictment alleging he months, and if it succeeds, agreed to participate or Miller in the months ahead.” administered medically unneces- an arbitrator would deter- give any further details Ross even sought to quell the IAC) to exit this sary chemotherapy and other can- mine how a court award about it. idea that IAC might be in turn- investment cer treatments and billed Medicare gets divided among the var- John Toth, partner at around mode. and private insurers for tens of mil- ious victims. If those talks Donna MacKenzie: Sullivan, Ward, Asher & Pat- “Steve’s corporate roles often have the best way lions of dollars. The government break down, however, the Her firm is handling ton PC in Southfield and drawn upon his turnaround experi- he can.” identified 553 victims, along with cases will return to court. 13 victim lawsuits. an attorney for Fata in the ence, but that is not the case here,” insurance companies, in treat- The federal govern- victim cases, and attorney Ross said in a written statement last Fred Hubacker, ments going back to at least 2007. ment and state of Michigan have Bruce Bigler, of Giarmarco Mullins & week. “Our interest is in his automo- Conway Mackenzie Inc. Donna MacKenzie, partner at previously asserted liens on several Horton PC in Troy representing Crit- tive experience and relationships.” Berkley-based Olsman, MacKenzie & of the victim lawsuits, where tenton, did not return phone calls IAC failed to launch a planned Last week, Auburn Hills-based Wallace PC, which is handling 13 Medicare or Medicaid was a payer seeking comment. Ⅲ $115 million initial public offering BorgWarner Inc. said it entered a de- victim lawsuits, said the firm is try- for the patient — but attorneys Chad Halcom: (313) 446-6796 in 2011 and delayed it again in 2013 finitive agreement to acquire ing to pursue the malpractice in- said it is not yet clear if the govern- Twitter: @chadhalcom during market turmoil in Europe. Pendleton, Ind.-based Remy Interna- The supplier planned to relaunch tional Inc. for $29.50 a share, or the IPO last year, but never followed roughly $950 million. through. Magna also announced last week Fred Hubacker, executive direc- it would buy Germany’s Getrag tor of Birmingham-based turn- Group, the world’s largest supplier of around and advisory firm Conway transmission systems, for $1.9 bil- Mackenzie Inc., said Ross is looking at lion. Getrag operates its North DOES YOUR AD all strategies to exit the auto busi- American headquarters in Sterling ness. Heights and also operates a joint “Wilbur is frustrated that he venture with Ford Motor Co. MEASURE couldn’t launch that IPO or other- Kamsickas, as the incoming CEO wise cash out of IAC since margins of Maumee, Ohio-based Dana, has a haven’t gotten better,” Hubacker clear mandate from the board to said. “Miller, the consummate deal boost revenue and make acquisitions. UP? guy, is coming in to make a deal, … In a July 13 statement, company look for a sale or look for a Chairman Joseph Muscari merger, trying to find a way approvingly noted his new for Wilbur to exit this invest- CEO’s “successful integra- ment the best way he can.” tion of a number of strate- IAC made its last acquisi- gic acquisitions” in his job tion in July 2013, when it as president and CEO of took a stake in South African IAC. Advertise in our Aug. 3 issue (Real Estate joint venture IAC-Feltex “We’re seeing consolida- special feature) to take part in Crain’s (Pty) Ltd., a maker of auto- tion in the supply space,” ® annual Signet AdStudy to measure the motive flooring, acoustics James Kamsickas: Masse said. “There have effectiveness of your marketing - and trim components. Departing IAC been several deals lately FREE OF CHARGE. Under Kamsickas, IAC CEO passed on where companies are fill- passed up opportunities to making acquisitions. ing gaps in their lineup and ADVERTISING DEADLINE acquire interior trim opera- saving on significant devel- JULY 23 tions sold by Magna International Inc., opment costs.” Visteon Corp. and JCI. While it remains unclear what di- If IAC is now looking for deals, it’s rection Miller will take IAC, a new a good time to do it, Mark Wake- strategy will be taken, Masse said. RESERVE YOUR SPACE! field, a managing director of con- “(Ross) clearly made a move to Contact Marla Wise sulting firm AlixPartners LLP in find someone with incredible expe- 313.446.6032 • [email protected] Southfield, told Crain’s sibling pub- rience,” Masse said. “He wants lication Automotive News. someone that will devise a very “Money is cheap, and (investors) strategic end game … and that *Ads must be 1/4 page or larger and are incremental to current schedule. are interested in autos,” Wakefield could make all the difference.” Ⅲ said. “Companies are getting pretty Dustin Walsh: (313) 446-6042 good cash flow.” Twitter: @dustinpwalsh If recent deals are any indication, Crain’s sibling publication Automotive the market is ripe. News contributed to this report. 20150720-NEWS--0019-NAT-CCI-CD_-- 7/17/2015 2:58 PM Page 1

CRAIN’S DETROIT BUSINESS // JULY 20, 2015 19 ON THE WEB RUMBLINGS WEEK JULY 13-17

programs at the Samuel Zell and Detroit Digits Work on Rouge River Huntington microloan Robert H. Lurie Institute for Entrepre- program comes to neurial Studies at the Stephen M. Ross A numbers-focused look at the School of Business. The remaining week’s headlines: Pontiac with $5M $10 million will support a new bridge moves a smidge he $25 million Pure fund to invest in new student business ventures. or two years, businesses in Michigan Micro Lending Ⅲ $169M TInitiative, unveiled in Thirteen staffers were laid off southwest Detroit and envi- The value of the University of November 2013 with $5 million at CBS Radio Inc.’s Detroit stations as Frons have complained about Michigan athletic department’s 15- for Detroit small businesses, is part of the company’s 200 job cuts the slow, or nonexistent, pace of year contract with Nike Inc. The expanding to the Oakland County nationwide, according to industry bridge repairs on the Rouge River. deal includes cash payments and seat. Huntington Bank and the reports. CBS owns oldies station Some sign of hope came last the value of apparel and equipment, Wayne County Commis- Michigan Economic Development WOMC 104.3 FM, sports station WXYT week as the which total $80.2 million. sion Corp. are offering microloans 97.1 FM, news-talk WWJ 950, country unanimously approved a $16.7 Anlaan Corp. ranging from $1,000 to $250,000 station WYCD 99.5 FM and top 40 million contract for , a station WDZH 98.7 FM. bridge repair company based in to small businesses in Pontiac. Ⅲ More details on the program are Ford Motor Co. and MGM Grand Grand Haven, to fix the drawbridge Detroit have each signed three-year 4,225 at West Jefferson Avenue. available at the Small Business The number of manufacturing jobs Development Center at the sponsorship deals with Freedom Hill Work is set to begin in August. Amphitheatre in Sterling Heights, Wayne County added in 2014, Anlaan has one year to complete Oakland County’s One-Stop Shop according to a report by Headlight Business Center. amphitheatre officials announced. the project. Terms were not disclosed. Data. The researcher ranked the The bridge has been out of serv- Ⅲ General Motors Co. said it will county as the top manufacturing ice since May 2013 when an opera- ON THE MOVE continue sponsorship of Kid Rock’s economy in the country. tor, later fired amid allegations of Ⅲ Domino’s Pizza Inc. announced summer concert tour despite a re- having been intoxicated, lowered it the appointment of Jeffrey quest by a Detroit activist group onto a passing freighter. For the Lawrence as CFO, replacing Michael that the automaker cut financial $825M past two years, local businesses ties with the musician if he dis- have been cut off from a major ar- Lawton, who will retire from the The value of Oakland County’s A bridge too far: The Rouge River plays the Confederate flag onstage, tery. Few signs of work prompted Ann Arbor-based company. proposed budget for the upcoming crossing at Jefferson Avenue has been at AP reported. Kid Rock said he has- them to form a group that has ral- Lawrence, 41, is treasurer and will fiscal year — a figure that calls for a a virtual standstill for two years. n’t used the flag for several years. lied behind the slogan “Fix the become CFO at the end of August. property tax cut. The 0.05-mill cut Ⅲ damn bridge!” GARY ANGLEBRANDT The Methodist Children’s Home and levy reduction would save The lack of a cross-river path has Society in Redford Township taxpayers $75 million over the next OTHER NEWS been compounded by the needed mation session July 27 at Automa- named Kevin Roach CEO, effective decade, County Executive Ⅲ The Michigan State Housing De- replacement of the bridge at Fort tion Alley. For members, the cost is Aug. 17. Roach, who will succeed L. Brooks Patterson said. the retiring Beth Tarquinio, has been velopment Authority awarded more Street one mile upstream, leaving $20 in advance and $30 at the door; president and CEO of Whaley Chil- than $3.3 million to six affordable- the I-75 bridge as the only option $40 and $50 for nonmembers. dren’s Center in Flint for five years. housing development projects in three years — for the upcoming for street vehicle passage over the Last year, Hannover Messe attract- Oakland and Wayne counties, AP seven-game schedule. Rouge in the immediate area. ed more than 6,500 exhibitors from reported. Detroit projects include Ⅲ Paul Mitchell, a Republican The Fort Street bridge also has 70 countries and was attended by COMPANY NEWS Ryan Court Apartments, the Architects businessman from Dryden Town- been out of commission since 2013. 200,000 visitors. For the first time Ⅲ A $10.3 million plan to turn a Building project, the Bonita Lofts proj- ship who spent about $3.5 million The Michigan Department of Trans- since the fair opened in 1947, the vacant Capitol Park building ect and another affordable-apart- of his own money in a failed con- portation said the completion date U.S. has been designated as a part- owned by Dan Gilbert into 5,500 ment complex. Others are the gressional bid last year, an- has been pushed back again, this ner country, meaning greater display square feet of first-floor retail Adams Senior Village rehabilitation in nounced he is running to fill the time to September or October. and promotion of U.S. products. space and 25 residential units on Westland and the Unity Park Phase III 10th Congressional District seat the top five floors was approved construction in Oakland County. open for 2016 after Rep. Candice Discount Days on tap in Former Ford collaborator Ⅲ for $1 million in financing in a Graffiti artist Shepard Fairey was Miller decided not to seek re-elec- northwest Detroit sues company for $1B Michigan Community Revitaliza- arraigned after turning himself in tion, AP reported. tion Program grant announced by on charges that he tagged build- Ⅲ Canton Township-based More than 60 businesses in An Austin, Texas-based company the Michigan Strategic Fund. ings in Detroit, AP reported. Fairey pharmacist Dineshkumar Babulal northwest Detroit have agreed to has launched a public campaign to Gilbert’s Bedrock Real Estate Ser- was charged in a warrant last Patel lost his license to practice offer discounts July 24-26 go with its $1 billion law- vices LLC will provide upfront fi- month with malicious destruction after fraud and conspiracy convic- as part of the second annu- suit against Ford Motor Co. nancing; construction of the of property after police said he tions in federal court in Detroit, the al D1 Discount Days event. Versata Software claims building, at 1215 Griswold St., is caused about $9,000 in damage to Michigan Department of Licensing and That’s up from 22 busi- Ford stole its trade secrets set to be complete by fall. buildings while completing com- nesses that participated by creating a copycat ver- Regulatory Affairs said. Patel was Ⅲ Auburn Hills-based auto missioned works on other struc- last year, said James Tate, a sion of a proprietary vehi- sentenced to 30 months in prison supplier BorgWarner Inc. an- tures. Detroit City Council member cle development program. and ordered to pay $4.85 million in nounced it had entered into a de- Ⅲ Plans to restore the Highland who represents District 1 Mike Richards, a Ford em- restitution with other convicted finitive agreement to acquire Park Ford Plant have been given a and organizes the event. ployee of 27 years before co-defendants. Pendleton, Ind.-based alternator boost with a new mural at the Ⅲ The event is meant to James Tate: Even being let go in 2008, told and starter supplier Remy Interna- nearby Michigan Department of Trans- State Democrats proposed a raise awareness of busi- locals forget to Crain’s sister publication tional Inc. for $950 million. portation building. The nonprofit $530 million business tax increase nesses in the district. shop locally. Automotive News that Ver- Ⅲ Auburn Hills-based De-Sta- Woodward Avenue Action Association as part of a new road repair plan, Even for local residents, sata’s software helped Co, which makes clamps and as- spearheaded the online competi- while House Republicans huddled it’s easy to overlook nearby business- boost Ford profits after the two sembly line products for the auto- tion for a mural design that will to consider a Senate-passed pro- es, Tate said. companies began working together motive, aerospace and food cover the building. posal with a 15-cent-a-gallon gaso- “We talk to entrepreneurs who say, in 1998. processing industries, said it will Ⅲ The Detroit Sound Conservancy line tax increase, AP reported. ‘You know what? We’re not getting Richards now is president of move manufacturing operations and Detroit Historical Society are try- Ⅲ Michigan’s unemployment any love from anybody,’ ” he said. global automotive business for Ver- from Auburn Hills, Charlevoix ing to salvage items belonging to rate held steady in June at 5.5 per- More information is available at sata’s parent company, Trilogy. and Wheeling, Ill., to Mt. Juliet, the former Graystone Internation- cent, 1.6 points lower than a year facebook.com/districtonedetroit. Ford denies the claim, saying it Tenn. Corporate offices for the al Jazz Museum collection left earlier. has a license “to create derivative Dover Corp. subsidiary will not abandoned inside the vacant works” of the software. Automation Alley seeks move; roughly 50 jobs in Auburn downtown Book Building since OBITUARIES Versata has hired Lanny Davis, a Hills will be affected. 2009, AP reported. trade mission travelers former White House special coun- Ⅲ The Chicago-based Zell Family Ⅲ The University of Michigan will Ⅲ Claudia Alexander, a pioneer- sel to President Bill Clinton, to publi- Foundation made a $60 million officially open Mcity, its new 32- ing scientist who helped direct Troy-based Automation Alley is cize the allegations. grant to the University of Michigan to acre testing site for connected and NASA’s Galileo mission to Jupiter looking for companies to take on a Davis said the battle could drag support entrepreneurial efforts. Of driverless cars, on Monday. Mean- and the international Rosetta trade mission to the world’s largest on for a couple of years and that the amount, $50 million will pro- while, UM said it has halted foot- space exploration project, died industrial fair, Hannover Messe, next Versata intends to take it to trial, vide endowed support for the stu- ball season ticket sales after reach- July 11. The University of Michigan April in Germany. though he didn’t rule out the possi- dent and alumni entrepreneurship ing nearly 90,000 — the most in graduate was 56. Businesses can attend an infor- bility of a settlement. DBpageAD_DBpageAD.qxd 7/14/2015 3:48 PM Page 1

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