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Hmos Seek Mental Health Bids Health Plans Group Lobbying to Get State OK to Pursue Exclusive Contracts

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Hmos Seek Mental Health Bids Health Plans Group Lobbying to Get State OK to Pursue Exclusive Contracts 20160118-NEWS--0001-NAT-CCI-CD_-- 1/15/2016 5:05 PM Page 1 Birmingham gallery does brisk business in Bowie artwork after rocker’s death, PAGE 5 JANUARY 18-24, 2016 HMOs seek mental health bids Health plans group lobbying to get state OK to pursue exclusive contracts By Jay Greene potentially lucrative contracts that managing medical care, behavioral health plans to take over the state’s [email protected] now are exclusively in the public health, substance abuse and devel- mental health system. A move is underway in Michigan health sector. opmentally disabled in other states. “This budget is pretty attractive to further privatize the public non- “Is it feasible for health plans to They include Illinois, California, to the health plans,” said Bob Shee- profit mental health system by contract with networks as behav- Florida, New Mexico, South Caroli- han, CEO of the mental health turning over $2.4 billion in state ioral providers? It certainly makes na, Washington, Wisconsin and board association. “They see that funding to Medicaid HMOs, some sense,” said Rick Murdock, MAHP’s Texas. market, and they believe they can of which are owned by for-profit in- executive director. “Should the state On the other side, officials for the do quite well” financially. SPECIAL REPORT surers. of Michigan look at ways to contin- Michigan Association of Community Sheehan said the health plans Heart scan, battery of other tests The Lansing-based Michigan As- ue to improve the effectiveness of Mental Health Boards have warned underestimate the difficulty in car- bring some eye-opening results, sociation of Health Plans has mount- the Medicaid program? Absolutely, state officials about the dangers ing for a complex population and Page 9 ed a lobbying effort to gain state ap- we think they should.” that could face a vulnerable and their plans’ ability to earn high prof- proval next year to bid for the Murdock said health plans are needy population by allowing SEE HMO, PAGE 18 Lending grows as commercial mortgage market stabilizes By Kirk Pinho bad loans from the 2005-07 lending [email protected] heyday are wiped off the books, said Some real estate finance experts local industry experts. predicted turbulent seas ahead two Overall, those factors have years ago, expecting a wave of de- helped lead to lenders being more faults on commercial mortgages is- willing to issue debt on Detroit-area sued during the free-lending hey- properties — particularly stable of- day in the mid-2000s. fice properties with good tenant But it appears as though the rolls — as occupancy rates rebound choppier waters have subsided. and the region’s delinquency rate The 90-day delinquency rates for nears the national average. commercial mortgage-backed se- “You’re seeing improvement in curities borrowers for buildings in the lending activity because proper- The new Clean Planet line of meat and around Detroit have fallen con- ties have been able to increase their dishes aims to take advantage of siderably in the past three years as cash flow and occupancy levels,” consumers’ interest in protein. the local real estate market has im- said Anne Galbraith Kohn, senior proved, lenders agree to workout vice president of the Capital Mar- MIKE RAFFIN agreements with borrowers, and SEE MORTGAGES, PAGE 16 Aronson’s next act Garden Fresh founder launches line of healthy entrées By Sherri Welch patties in stores including Meijer and [email protected] Costco. Garden Fresh Gourmet founder Jack Minority investors in Great Fresh in- Aronson is taking the fresh approach that clude two with ties to Garden Fresh: made his salsa the country’s top brand to Dave Zilko, who was vice chairman, and another food segment with the launch of Mike Griffin, who is serving as chief mar- a new line of refrigerated meat entrées keting officer for Great Fresh. aimed at health-conscious eaters. The company’s general manager, He’s projecting the Clean Planet line of Mike Skinner, and local chef Brian Pol- refrigerated, fully cooked beef, chicken cyn, who helped develop the recipes for © Entire contents copyright 2016 and turkey dishes, and full meals expect- both the Fresh Planet chicken patties “No one by Crain Communications Inc. All rights reserved. ed to launch in the coming months, will and new Clean Planet meat line, are also has done crainsdetroit.com Vol. 32 No 3 $2 a copy. $59 a year. generate $8 million in revenue the first minority partners. year. Like the salsa Aronson and his part- anything Clean Planet Foods LLC officially opened ners expanded into the top-selling refrig- like this for business last week as a subsidiary of erated brand in the country before sell- Clinton Township-based Great Fresh ing it to Campbell Soup Co. last summer, before.” Foods LLC, a company Aronson, his wife, the new “chef-inspired, center of the Annette, and minority investors founded plate proteins” sold under the Clean JackAronson, in 2012 to sell Fresh Planet (previously Planet label will last up to 60 days in the Great Fresh Foods NEWSPAPER Jack’s Special Grilled) stuffed chicken SEE FRESH, PAGE 16 founder 20160118-NEWS--0002-NAT-CCI-CD_-- 1/15/2016 3:14 PM Page 1 2 CRAIN’S DETROIT BUSINESS // JANUARY 18, 2016 ing, a vacant former bank building ship of the moving company has MICHIGAN and multiple empty lots. The prop- fully moved outside of its founding INSIDE erties are within blocks of ongoing family, the Lansing State Journal re- THIS ISSUE significant institutional investment ported. Wesley, CFO for seven years, BANKRUPTCIES . 4 CALENDAR . 13 led by Muskegon Community College replaces Brig Sorber, whose family CAPITAL BRIEFINGS . 4 Baker College and . The city will most had run the company since 1985 CLASSIFIED ADS . 15 likely redevelop the two existing and who had previously stepped DEALS & DETAILS . 13 BRIEFS buildings on the site and leave the down as president. Last month, Two MARY KRAMER . 6 vacant parcels to be developed at a Men and a Truck ranked first in the OPINION . 6 Snyder asks Obama for Schuette announced that his of- later date by private developers, moving company category of Entre- PEOPLE . 14 disaster declaration in Flint fice would investigate to determine City Manager Frank Peterson said. preneur Magazine’s Franchise 500 RUMBLINGS . 19 what, if any Michigan laws were vio- “Our interest is taking our down- list, and 162nd overall. WEEK ON THE WEB . 19 Gov. Rick Snyder asked President lated. Federal prosecutors said town a step further,” he said. “It’s Ⅲ Michigan State University is of- Barack Obama to issue an emer- they’re working with the U.S. Envi- not profit-making. We see the value fering a new resource to cities want- gency and major disaster declara- ronmental Protection Agency. being our long-term investment.” ing help with managing finances COMPANY INDEX: tion amid a drinking water crisis in State and federal health officials and budgets, The Associated Press SEE PAGE 18 Flint, and state Attorney General Bill also said last week there has been MICH-CELLANEOUS reported. The MSU Extension Ser- Schuette announced Friday that his an increase in Legionnaires’ disease vice’s Center for Local Government Fi- dance were divided on their sup- office would investigate how the sit- cases over the past two years in Ⅲ Detroit-based law firm McKeen nance and Policy, which is being for- port or opposition to the mine. uation was handled. Genesee County, where Flint is lo- & Associates, which focuses on mally unveiled after it quietly Aquila plans to invest more than Snyder’s office said it is seeking cated, but said they can’t conclude medical malpractice, said it will started in November, will hold $300 million to extract gold, copper, additional federal aid for individu- that the increase is related to the open a Kalamazoo-area office to workshops, research municipal fis- zinc and silver from the site. als and public agencies involved in water crisis. Legionnaires’ disease is capitalize on growth opportunities, cal trends, consult local govern- Ⅲ West Michigan businessman the effort to provide Flint residents a type of pneumonia caused by bac- the Grand Rapids Business Journal ments and issue an annual report and philanthropist Ralph Hauen- with clean drinking water, The As- teria that infect the lungs. reported. It will be the second office on the financial health of each stein died Jan. 10 at age 103. Hauen- sociated Press reported. Tap water for the firm, which according to its Michigan municipality. stein was owner of Werner Lehara, a became contaminated with too Muskegon jumps into website has 16 attorneys. Ⅲ A Canadian company has re- Grand Rapids food equipment much lead after the city switched its development biz Ⅲ Grand Rapids-based office newed interest in developing an manufacturer, and established the water supply in 2014 to save money technology dealer Applied Imaging open pit mine at an Upper Peninsu- Hauenstein Center for Presidential while under state financial manage- With developers facing compli- acquired a Cascade Township office la site not far from the Wisconsin Studies at Grand Valley State Universi- ment; local officials declared a pub- cations in creating a sustainable building for its new corporate head- border, according to the Milwaukee ty and the Grace Hauenstein Library at lic health emergency in October. housing market in downtown quarters, MiBiz reported. According Journal Sentinel. Aquila Resources Aquinas College. Snyder’s request will be reviewed Muskegon, the city has decided to to a statement, the company cited Inc. recently filed an application to Ⅲ Frederik Meijer Gardens & Sculp- by the Federal Emergency Manage- jump into the business of commer- recent and projected growth as ne- build a mine along the Menominee ture Park in Grand Rapids saw the ment Agency.
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