Hospitals Scooping up Private Practices at Rapid Clip As Health Care Reform Looms

June 2-8, Vol. 5, Issue 23

10 Logistics

Gas prices are lower than

»

expected, but trucking companies remain wary about long-term projections of their biggest expense.

FEdEx on buYinG SprEE:

FriEndlY SkiES, unFriEndlY FacEbook GroupS:

Critics of Delta Air Lines Inc.’s rising airfares and diminishing service at Memphis International airport have taken to social media en masse

^{to air their grievances.}»page 7

Memphis-based company to purchase Brazilian shipper, its ﬁfth acquisition

^{since February 2011.}»page 8

SPECIAL EDITION : THE BUSINESS OF HEALTH CARE

mEdical

HospItals sCoopIng up

rEaliGnmEnt

prIvate praCtICes atrapId ClIp as

heALth cAre reform

looMs _{paGES 14-23}

photo: shutterstock

31 Innovation

Silicone Arts Laboratories’ dermaﬂage is a “topical perfecting ﬁller” that consumers can buy and then apply onto things like scars and wrinkles.

dailY diGESt: page 2

Education: page 11

Small buSinESS: page 12

Editorial: page 34

nEwSmakErS: page 29

A Publication of The Daily News Publishing Co. | www.thememphisnews.com

2 June 2-8, 2012

www.thememphisnews.com

weekly digest

Get news daily from The Daily News, www.memphisdailynews.com.

each under guidelines of aWells Fargo home Conditioning.While serving in the U.S. Ma- 12th-largest women’s professional organi-

ownership program.

rine Corps, he participated in the recovery zation in the United States. The Memphis

The program is similar to the Neigh- of Astronauts Walter M, Schirra Jr. and L. chapter was chartered in 1948.

Wells Fargo, City of Memphis Settle Mortgage Lawsuit

Wells Fargo & Co. has agreed to settle borhoodLIFT program Wells Fargo has Gordon Cooper after their space ﬂight.

a federal discrimination lawsuit the Mem- collaborated with the nonproﬁt Neighbor-

Moore Tech was founded in 1910 and

phis and Shelby County governments ﬁled Works America program on in nine other opened in 1939. It is the only private, non-

against the bank by setting a five-year U.S. cities.

proﬁt vocational college in Memphis and is

mortgage lending goal of $425 million here,

Also included in terms of the settlement located at 1200 Poplar Ave. Current enroll-

Council Member Fullilove Files Bankruptcy

including $125 million in home purchase is another $3 million for local grants with ment is 200.

lending to low- and moderate-income bor- the spending controlled by the city and

Memphis City Council member Janis

Fullilove has ﬁled bankruptcy.

rowers.

The city and county governments filed county.
TheWednesday, May 30, filing in federal bankruptcy court lists $22,218 in liabilities Fullilove owes in “taxes and certain other debts owed to governmental units.”
The liability is an unsecured priority suit in Memphis Federal Court in December 2009 against Wells Fargo Bank, Wells Fargo Financial Tennessee Inc. and Wells Fargo Financial Tennessee 1 LLC, alleging the company discriminated against its AfricanAmerican mortgage holders with refinanc-

WCR Memphis Chapter Receives National Award
Moore Tech Promotes

Director to First President

The Memphis chapter of the Women’s
Council of Realtors was recently recognized claim.

The ﬁling also listed $52,360 in secured

Don Smith, director and chief adminis- as the National Large Chapter of theYear for

ing that put the homes of those mortgage trative ofﬁcer of Moore Tech for the past 13 2012 at the National Association of Realtors claims held by creditors and another $29,760

holders at risk.

years, has been named by the college board mid-year convention in Washington.

in unsecured nonpriority claims.

FormerWells Fargo workers from Mem- of trustees to be the first president of the phis were among those alleging the com- vocational college in its 92-year history.
The Memphis Chapter earned points and reached benchmarks established by the income of $2,490.25, which comes to an
Fullilove claims a current monthly pany specifically targeted black customers for the refinancing.
Smith has been with the college since National Women’s Council of Realtors or- annual income of $39,880, a little bit more
1995 when he became an instructor in ganization in areas including: recruitment, than her annual salary as a City Council
The $425 million goal is part of a multi- Moore Tech’s air conditioning department. retention, media coverage, participation at member. part settlement announced Tuesday, May Hebecamedirectorandchiefadministrative state and national conferences, and docu-

29, that includes the dismissal of the lawsuit ofﬁcer in 1999.

mentation of minutes and meetings.

In addition, WCR Memphis donated

with Wells Fargo admitting no wrongdo-

ing.
Smith has 20 years experience in vocational education. He taught air conditioning money from this year’s membership drive

Megabus.com Announces Texas Service via Dallas

A Wells Fargo spokesman described the and electricity for Memphis City Schools and to St. Jude Children’s Research Hospital and agreement as a “dismissal,” making a dis- StateTechnical Institute (adjunct faculty) as itsfashionshowfundraiserinSeptemberwill tinction between that and a settlement.
Other parts of the settlement include

well as Moore Tech.

raise money for breast cancer research.

Megabus.com has added Texas to its

Prior to vocational education, Smith

WCR was formed in 1938 to promote schedulewithinitialfaresaslowas$1during

$4.5 million in mortgage down payment was a district manager for SunGas Liquids equality for female agents at a time when the ﬁrst week of sales.

and home renovation assistance grants.The and Suburban Propane and a technical many local real estate boards were resistant

The express bus company on Thurs-

grants are to be awarded for up to $15,000 representative and instructor in Rheem Air to offering memberships to women. It is the day announced service begins June 19 to

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June 2-8, 2012 3

weekly digest

and from Dallas, with seven cities on the Southwind.

schedule.

An afﬁliate of DRA also recently part-

The carrier, which only sells tickets on- nered with Memphis-based Poag Lifestyle

FROMTHE BLOG

line, says the direct schedule includes Hous- Centers on the $60 million purchase of The ton, Austin and San Antonio. Megabus.com Avenue in Collierville. will also serve some out-of-state cities: Little

Shelby County Trustee David Lenoir, And the Laﬀer Curve

Rock, Ark.; Memphis; and Norman, Okla.
Megabus.com will offer 21 daily departures from a designated stop in downtown Dallas.

Metropolitan Bank Releases New Smartphone App

Editor’s Note: “From the Blog” is a weekly feature that high- lights some of the enterprising work our staff and contributors post on The Daily News blog, blog.memphisdailynews.com.

Megabus.com describes itself as a low-

cost express bus line that offers tickets via

Metropolitan Bank has released its new-

the Internet. The vehicles have free Wi-Fi. est smartphone app, Xpress Deposit, which The fleet includes some double-decker allows clients to make a deposit by taking a

buses.

photo of a check on a mobile phone.

|

ANDY MEEK The Memphis News

Xpress Deposit is available on the iP- hone, Android and Blackberry platforms. It’s available via a download from the phones’ app store after completing a registration with a Metropolitan client services adviser and allowing one business day for registra-

hile addressing the Memphis Rotary Club earlier this month,
WShelby County Trustee David Lenoir told the crowd that “higher taxes don’t always equate to increased revenue.”
The county trustee – whose remarks came at a time when both the city and county governments are trying to wrap up their latest ﬁscal year budgets – was describing an economic concept known as the Laffer Curve.

DRA Advisors Closes on Two Shelby Drive Warehouses

New York-based DRA Advisors LLC has tion conﬁrmation.

closed on two Memphis warehouse prop-

Clients with the app can make deposits

erties for $12.3 million, as part of a larger 24 hours a day, seven days a week. Each deportfolio purchase from Houston-based posit is typically posted on the next business

Weingarten Realty Investors.

day if submitted before the cutoff deadline,

DRA Advisors acquired Southpoint I at and email notiﬁcations update clients on the
4715 Shelby Drive and Southpoint II at 4655 status of the deposit. Shelby Drive under the entity G And I VII Southpoint I And II LLC from Weingarten, which used the entity WNI Tennessee LP,

It can be illustrated in the form of a parabola. There are three important points on that parabola. Two of the points are at both the ends. Say a government decides to collect zero percent in taxes from its citizens. Now say that government chooses to collect 100 percent. At both of those rates, the government probably won’t be collecting any money. The reason why is obvious at zero percent. At 100 percent, no one would probably show up for work the next day, if all their money goes to the government.
Here’s the third important point on that parabola. Presumably, there is some mid-point on the curve where the government is collecting the maximum amount of money it can. Any rate past that point, and it starts becoming more and more counterproductive (people move, shift their income to avoid taxation, etc).

For the full blog entry, visit blog.memphisdailynews.com

according to the Shelby County Register of Deeds.

Earliest-Ever Detection Of Virus in Shelby County

Weingarten announced in April its plans

to sell its wholly-owned industrial portfolio

The mosquito-borne virus that causes

to DRA Advisors for $382.4 million in efforts West Nile Disease has now been detected in to strengthen its focus as a pure retail Real seven Shelby County ZIP codes.

Estate Investment Trust. The portfolio is

HealthDepartmentcoordinatorHeather

made up of 52 industrial properties, totaling Burton Reynolds said Wednesday that the 9.6 million square feet in Florida, Georgia, virus was initially detected May 8 — the ear-

Tennessee, Texas and Virginia.

liest it has ever been found in the county.

The department is spraying insecticide

Prior to the sale, Weingarten Realty

owned eight Memphis industrial buildings, from trucks to kill adult mosquitoes and all of which are managed by Brad Murchi- urging residents to make sure stagnant son of CB Richard Ellis Memphis. However, water doesn’t collect around their property. Southpoint I and Southpoint II were the only The virus was detected in mosquitoes that two properties being sold. The others are weretrappedandtested.Therehavebeenno owned by Weingarten in a partnership.
DRA Advisors specializes in real estate investment management services for institutional and private investors, including pension funds, university endowments, foundations and insurance companies.The firm in Memphis owns two office properties – Germantown Center and Mid-Memphis confirmed human cases of West Nile yet.
Dreyzehner spoke at a joint health summit gram Industries and Alcoa Inc. attended, in Nashville onTuesday and said businesses but the health chief said the business comneed to step up for the benefit of their munity overall hasn’t come to the table in a

Health Commissioner: Fight Obesity Like Addiction

employees.
Dreyzehner noted that most of those meaningful way.
Nashville Mayor Karl Dean, who has
Tennessee’s health commissioner says attending the meeting were representatives spearheaded walking and biking initiatives in his city, also spoke, saying workplaces are
Representatives of Advance Financial, critical in shaping how employees live, eat
According to The Tennessean, Dr. John Eastman Chemical, Clayton Homes, In- and exercise.
Tower – as well as four multifamily as- obesity is a relapsing disease that should be of health organizations. sets – Addison at Collierville, Bailey Creek, fought like a drug addiction. Madison at Schilling Farms and Preserve at

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4 June 2-8, 2012

weekly digest

ready for Madison Avenue to be an avenue grant from the Memphis-based H. W. announced its 2012 “Men of the Year,” and

again.”

Durham Foundation to assist MERI with for the ﬁrst time two “Women of the Year”.

Whartonsaidthecityhopestoreopenall disaster response training in long-term

City Hopes to Reopen Madison Avenue by Fall

This year’s recipients are: Fred Tillman,

CEO of Century Management; Shelby

The wall shared by two Downtown of Madison Avenue as well as the sidewalks care facilities.

buildings will be stabilized before one of between Main Street and Second Street by the structures is demolished by the city of early fall. Memphis.
The grant will help MERI begin training County District Attorney General Amy long-term care facility nursing and other Weirich; Memphis Police Director Toney direct care staff to care for the elderly in the Armstrong; and News Channel 3 Morning

event of disaster. The project will use hu- Anchor Markova Reed.

Part of the roof at 118 Madison Ave. col-

lapsed in March 2011 and since then part

man patient simulators in place of elderly

Previous recipients of the award have

of Madison Avenue, including the sidewalk, has been blocked by barriers to protect the public. patients to train all levels of nursing person- included U.S. Rep. Steve Cohen and Uninel in preparation, response and relief skills versity of Memphis men’s basketball coach to help care for residents before, during and Josh Pastner.

President Obama Signs Bankruptcy Judgeship Bill

The city of Memphis went to Environ-

President Barack Obama has signed HR after disasters.

mental Court in April to speed the demoli- 4967 a bill that extends certain temporary

Working in conjunction with local com-

tion process as the owners of the Madison federal bankruptcy judgeships around the munity partners in EMS, hospital safety and Avenue building and the owner of an adjoin- country. public health, MERI – a nonproﬁt medical

UT to Open Confucius Institute This Year

ing building at 119 S. Court Ave. reached an impasse over demolition.
The bill will have a local impact, because training and research school – says it has one of the five bankruptcy judges in the the capacity and expertise to develop and

James Meng, the owner of the Court Western District of Tennessee, which in- implement hands-on disaster training for

The University of Tennessee will open a

building, objected to sharing the cost of cludes bankruptcy courts in Memphis and long-term care facilities in Memphis and Confucius Institute to expand opportunities

shoring up the wall.

Jackson, is retiring soon. U.S. Bankruptcy Shelby County. to learn Chinese, China culture and travel

The national need for a care facility abroad.

workforce trained to respond in an emergen-

Such institutes are nonprofit public

Judge Larry Potter issued an order Tues- Court Judge G. Harvey Boswell is leaving the day, May 29, allowing a contractor to move bench effective July 8.

ahead with work on the shared wall.The city

The newly signed bill prevents that ju- cy will become more critical as the nation’s institutions run in cooperation with Chi-

will pay for the stabilization work and assess dicial position from lapsing and increasing elderly population grows. In Tennessee, the nese partner universities and overseen by the property owners through a tax lien. The the load of what would have been the four elderly population is expected to increase Hanban, a Chinese Ministry of Education city expects the work to be completed at the remaining judges who currently hear cases dramatically over the next two decades. end of July and the building on Madison in Memphis. subsidiary.
The University of Memphis has an in-

as well as three adjoining structures, also

stitute.

owned by BBB Investments, will be demolished. BBB Investments will be responsible for the demolition work.
“This situation began with the laws of gravity and has continued under the laws of men,” Memphis Mayor A C Wharton Jr.

School Board TEI Brieﬁng Postponed
Grant to Help MERI With Disaster Response Training
MBGH Announces Conference Speakers

Countywide school board members
The Medical Education and Research will get a brieﬁng later on the Teacher Ef-

said Monday in a written statement.“We are Institute in Memphis has received a $6,000 fectiveness Initiative, the Memphis City

Memphis Business Group on Health

Schoolsteacherprofessionalevaluation and has announced the lineup for its annual development program that is about to be conference, which will be held Sept. 6 at the expanded to include Shelby County Schools Holiday Inn University of Memphis, 3700

system teachers.

Central Ave.

The 2012 conference will focus on navi-

The board’s scheduledTuesday, May 29,

brieﬁng on TEI was postponed. TEI is the gating effective health beneﬁts in changing reform work being funded by a $90-million times.

grant from the Bill and Melinda Gates Foun-

The speakers are Bryan Jordan, president

dation over seven years. Both school systems and CEO of First Horizon National Corp.; recently announced they have applied to GaryShorb, presidentandCEOofMethodist continue the Gates Foundation funding for Healthcare; David Archer, CEO of Saint Frana TEI effort that would include both school cis Healthcare-Memphis; and Jason Little, systems.
Thetwo school systemsare scheduledto Baptist Memorial Health Care Corp. merge in the 2013-2014 school year. The conference will include topics such vice president and chief operating officer of
The board that governs both school sys- as how benefit design is used to more fully tems moves into a June that is scheduled to engage employees on their cost and quality include the board’s first formal discussions of health care, new tools to educate employabout who should be superintendent at the ees about their benefits, and how Memphis start of the merger.
And MCS leaders are about to make the impact employers’ benefit structures. first decisions about which Level 1 and Level Visit www.memphisbusinessgroup.org hospitals are changing and how that will
2 teachers will be dismissed from the school to register. system based on the first year of new teacher evaluations backed by the state.Teachers are graded at five levels on several factors, with a Level 5 teacher being the highest.