20120702-NEWS--0001-NAT-CCI-CD_-- 6/29/2012 6:05 PM Page 1 ©Entire contents copyright 2012 by Crain Communications Inc. All rights reserved www.crainsdetroit.com Vol. 28, No. 27 Chinese automaker setsPage up 3 headquarters in Birmingham Advanced manufacturing 3-D process takes manufacturing to new levels, Page 9 Crain’s Largest OEM parts suppliers, Page 12 Agreement may be near on Belle Isle C Aquarium YOUR reopening RAIN share your views on the Detroit River — literally. Crain’s Lists ’ D S Detroit River, photos of out-of- the-way hangouts and bars by the river or photos of ETROIT interesting spots to fish, play or stories to go with them. WANTS TO SEE relax. Be sure to include an We’re looking for views of the explanation and story with your photos. river photos and the would like you to be part of a contest for the best photo. Prizes will be given to Investing in the D the top photos, picked by submitting your favorite Crain’s Business’ Living and 20 special publication Submit photos by July 27 to of others, will be used in print and Be part of the Aug. online as part of this annual publication. Crain’s Detroit The winning photo, and many electronically, go to R detroit.com/riverviews. Deputy Managing Editor IVER PICS To submit a photo Duggan @crain.com or (313) 446-0414. For questions, contact Employers’ deadlines editors. for decisions now loom NEWSPAPER State delay on health exchange muddies waters at dduggan has ruled, employers can be ex- by pected to begin to moving forward with plans to comply with regula- tory requirements of the Patient Now that the Protection and Affordable Care Act. insurance agents, brokers, con- CRAIN’S DETROIT BUSINESS sultants, insurers and business associations, as employers seek help to meet compliance dead- That could be a boon for health lines over the next three years as B www.crains Y J the health care law moves to AY Daniel G U.S. Supreme Court REENE State must decide whether to expand Medicaid add about 32 million maintenance organizations, in- surers, physicians and other providers are likely to lobby the Legislature during the next year Michigan’s hospitals, health to add 500,000 people to the state’s Medicaid program in the wake of the JULY 2 – 8, 2012 last week allowing states the op- CRAIN’S DETROIT BUSINESS tion of expanding Medicaid cover- age in 2014. B U.S. Supreme Court But Gov. Rick Snyder said it’s Y Mark Van Den Branden, Advancedin ... Insurance health Underwriters care consulting. J AY uninsured to Medicaid and pri- vate insurance plans. “ G L exchange will be OOKING AHEAD created, REENE requirements Business is booming through 2014, Speaker says Page 18 Association right and who is wrong. People Employer want to know how to navigate this, get this implemented with the least amount of impact.” Page 18 ’s decision . “Now it is not who is a little disap- pointment and frustra- too early to make a decision tion” with the “There was whether to ex- 5-4 decision, pand the state’s said Jennifer 1.9 million- Kluge, CEO of member Medi- the caid program to Business & follow one of Professional the provisions of the newly up- held Patient Protection and Affordable Care Act. impact and will be working with Michigan “We’re closely analyzing the with 50 or more employees to pro- vide health insurance by 2014 or face penalties of $2,000 per em- ployee. The first 30 employees are The act requires employers exempt. fine, most employees would be re- quired to buy health insurance through the individual market or state health exchanges with sub- If companies choose to pay the Hire a sidies available based on income. ” Vet! Snyder large number of employees were Helping Veterans Re - Enter the Michigan Workforce eligible for federal subsidies in a state health insurance exchange. But now that the Supreme In a survey of em- ployers this year, health benefits if a the Legislature to evaluate our op- tions and determine the best course of action that provides pro- the association tection and security for Michigan- ders,” Snyder said in a statement likely to drop their to See Health Care, Page 18 found that 26 can be made immediately or light- Advertise in this must-read issue of ly.” ruling Thursday said states could Crain’s not be penalized for deciding percent against expanding their Medicaid Contact Marla Wise at 313.446.6032 or [email protected] somewhat programs — as the act had man- Part of the Supreme Court’s Henry Ford would be aims to sow very or green space . “It’s not a decision that into upgrade JEFF JOHNSTON/CDB Paths, ponds $2 a copy; $59 a year Issue Date: in $500M plan Detroit flagship hospital has grown over the past 100 years — a recently completed $300 million upgrade See Medicaid, Page 19 and face-lift features 80 private While rooms and new operating-room suites — green space was some- thing the 33-acre hospital campus had more of in the 1920s than now. CRAIN’S DETROIT BUSINESS rectify that in a project that could add $500 million in development at its main campus to the previously announced $1 billion in hoped-for The hospital system hopes to B projects on 300 acres the system July 23 owns or wants to develop south of West Grand Boulevard in Mid- Y town. Henry Ford Health System ment. John Popovich Jr., CEO of Henry Ford Hospital J ly would include a six-story build- The plan is still early in develop- ing, a parking AY structure and de- molition of some buildings to cre- ate more green space at an early cost estimate of more than $500 G million. ® Closing Date: square-foot building could include REENE replacement operating and proce- dure rooms, advanced radiological imaging, replacement intensive The 100,000- care units and private patient rooms and an expanded emer- gency department, Popovich said. Crain’s Detroit Business create a healing environment med- ical campus with plenty of green space, ponds and walkways for pa- tients and staff. But he said his larger goal is to with more green spaces and ponds around it. It was built in over time” as the hospital slowly expanded to the 802 beds it now has, Popovich “The old hospital was designed , said it most like- July 12 ’s Popovich See Henry Ford, Page 20 . 20120702-NEWS--0002-NAT-CCI-CD_-- 6/29/2012 5:45 PM Page 1 Page 2 CRAIN’S DETROIT BUSINESS July 2, 2012 MICHIGAN BRIEFS Capitol Bancorp set to sell than thrilled when federal budget concerns threatened funding. But Lansing bank, SEC filing hints Auction over drilling rights digs up collusion allegations last week, a National Research Coun- Last week, Crain’s reported on cil report said “timely completion” Calgary, Alberta-based Encana Corp. has been ex- vestigation of his personal financial transactions. should be a priority, calling the the ambitions of the Farmington panding in Michigan’s shale exploration region State records show that the company didn’t partici- Hills-based Bank of Michigan now project “a major new strategic in- since former rival Chesapeake Energy Corp. decided pate in last month’s lease sale. “It was the combina- vestment in nuclear science.” Sup- that it has bought out its majority to leave after spending $400 million on its own devel- tion of disappointing well results and falling commod- owner, Lansing-based Capitol Ban- porters say the project would cre- opment. Now, Encana is exploring allegations that ity prices that made the whole play uneconomic from ate about 5,000 construction jobs corp Inc. Crain’s noted that Capitol it colluded to rig land auctions. Chesapeake’s standpoint,” James Sullivan, an ana- Bancorp “has been selling off and 400 permanent jobs. Encana paid about $185 an acre for the rights to lyst at Alembic Global Advisors in New York City, told Ⅲ The Frederik Meijer Gardens & banks in its portfolio to keep regu- drill oil and natural-gas wells on 2,156 acres at an auc- Bloomberg. lators from shutting it down.” Sculpture Park plans to start con- tion last month conducted by the Michigan Department Encana, Canada’s largest gas producer, and U.S. struction in mid-July on a $22 mil- The next bank to be sold looks to of Natural Resources, Bloomberg News reported last competitors such as Chesapeake and Devon Energy be Capitol National Bank, based on a lion Japanese garden. The Grand week. That’s 88 percent less than the average paid two Corp. began amassing drilling rights four years ago Rapids attraction said last week Capitol Bancorp filing with the years ago in the area. On June 25, Encana said it be- in a geologic formation known as the Collingwood that it exceeded its fundraising U.S. Securities and Exchange Com- gan looking at emails from 2010 between Encana and Shale, which lies beneath more than a dozen coun- goals for the Richard and Helen DeVos mission. The filing shows Capitol Chesapeake executives about bidding strategies. ties in northern Michigan, including Cheboygan, Japanese Garden, named for the Bancorp has an agreement pend- This month, Oklahoma City-based Chesapeake re- Charlevoix and Kalkaska. Amway Corp. co-founder and his ing to sell its stake in Capitol Na- placed more than half its directors and stripped CEO An Encana spokesman declined to comment. wife, who are helping fund the pro- tional, which has branches in Aubrey McClendon of the chairman’s role amid an in- Chesapeake denied collusion with Encana.