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UM Aim: Set Pace in Year of Health Care Mergers

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UM Aim: Set Pace in Year of Health Care Mergers 20101108-NEWS--0001-NAT-CCI-CD_-- 11/5/2010 7:22 PM Page 1 ® www.crainsdetroit.com Vol. 26, No. 46 NOVEMBER 8 – 14, 2010 $2 a copy; $59 a year ©Entire contents copyright 2010 by Crain Communications Inc. All rights reserved Inside Snyder readies appointments Gale looks to hire 40 after reorganization tion. “I’m just a retired partner help- Taps CPA network ing an old friend. I have no role,” he ELECTION ROUNDUP said by email. Is she for Ⅲ Capitol Briefings: for help, advice However, Baird, whose expertise is Amy Lane looks at what real? DIA talent and human resources, is said by the lame-duck session BY TOM HENDERSON some close to Snyder to be key in sort- may hold, Page 6 hopes pulling AND AMY LANE ing through candidates. Ⅲ High expectations: back curtain CRAIN’S DETROIT BUSINESS Chris DeWitt, a longtime worker on Business hopes to Democratic campaigns who joined the achieve goals with will pay off It’s not quite the revenge of the CPAs, Snyder campaign as senior adviser Snyder, Page 30 but Gov.-elect Rick Snyder has been this fall, said Baird “has a great deal of Ⅲ Been there: Bing’s 10 tips on switching drawing on a longtime network of asso- GLENN TRIEST experience that will be very useful to ciates as he prepares to take office. Interviews are under way for Gov.-elect governor-elect Snyder, as far as from biz to politics, Page 30 Inside Chief among them may be longtime Rick Snyder’s team. putting together staff as well as how Ⅲ New leaders: Meet PricewaterhouseCoopers LLP executive things operate.” Richard Baird, who in 1982 hired a 23- good deal of time in Michigan despite three from the E-records help hospitals Bill Nowling, spokesman for Sny- Legislature, Page 31 year-old Snyder into predecessor ac- living in Chicago. der, described Baird as “a trusted Ⅲ To do: Events focus He declined to be interviewed about save money – study, Page 7 counting firm Coopers & Lybrand. Baird friend and confidant of the governor- on reshaping state’s recently retired and was active in Sny- Snyder but said he would not be part of future, Page 31 der’s campaign, reportedly spending a the transition team or the administra- See Snyder, Page 31 Crain’s List Largest automotive Economy 2011 suppliers, Page 21 This Just In Slow, steady growth marks Retailers must sell ‘alcohol energy’ drinks in a hurry long haul out of recession Liquor stores and other shops have less than 30 days to sell off their inventories of New, revived sectors give push “alcohol energy” drinks. the sectors where the state has But it’s the distributors BY MARTI BENEDETTI SPECIAL TO CRAIN’S DETROIT BUSINESS been trying to build up its pres- who are feeling the pinch of ence,” said Dana Johnson, chief Thursday’s decision by the General Electric Co.’s new Ad- economist for Comerica Bank. Michigan Liquor Control Com- vanced Manufacturing and Soft- He said that the process of the mission to ban the beverages ware Technology Center in Van state redeveloping itself and creat- starting Dec. 4 Buren Township will hire up to ing new sources of commerce will The drinks contain alcohol 350 people next year. The new jobs continue. With the auto sector and stimulants such as caf- are higher-level information tech- having a lower profile, other in- BOB CHASE feine. They typically come in Doug Strong, CEO of University of Michigan Hospitals and Health Centers, said nology posts. dustries will have a chance to gain packaging that might bring UM needs to keep up as other medical systems in the state merge and expand. Meanwhile, more prominence. to mind the word “extreme.” PSCU Holding Ser- Still, the state’s overall econom- Industry execs say the dead- TO THE CORE vices, a financial ic status remains a “mixed pic- line challenges distributors services ture,” said Robert Dye, senior who have more than 30 days of AND BEYOND provider for economist for PNC Financial Ser- UM aim: Set pace in year inventory to work through. Outlook: credit unions, vices Group Inc. in Pittsburgh. The Stores probably can sell off Sizing is planning state’s potential to grow high-tech their inventories of the drinks up 115 hires at and new-economy jobs is promis- by the deadline, said Mike 2011 in M&A, its offices in ing, while it continues to reel from of health care mergers Lashbrook, president of the lending, Auburn Hills an enormous loss of jobs in recent Michigan Beer and Wine Whole- transit, and Southgate. years. He said gross state product BY JAY GREENE lines. We have to develop more of salers Association in Lansing. nonprofits, real Economists should grow about 2 percent by CRAIN’S DETROIT BUSINESS a statewide presence.” The ban follows negative estate and say this kind of mid-2011. Strong said only one-third of its headlines about the drinks, manufacturing, slow and steady Unemployment is dropping Once it was enough to be the 44,000 patients admitted each year including ties to a Melvindale Pages 11-18 job creation — by faster in Michigan than national- state’s premier academic medical are considered local. Nearly two- rape case. emerging industries or industries ly, which has been helped, in part, center. Now, the University of Michi- thirds of its patients come from Two of three liquor com- that are coming off economic life by the flow of unemployed people gan Hospitals and Health Centers physicians who make referrals mission members present support — will help lead to a more out of the state, he said. plans to expand its influence be- from outside Ann Arbor. supported the ban, including stabilized economy and mild eco- Nationally, unemployment, yond simply seeking referrals for “It has been a successful recipe Chairwoman Nida Simona. nomic growth for Michigan in which was 9.6 percent in early No- advanced medical cases — it and formula,” said Strong. But the wants to grow through acquisi- See This Just In, Page 2 2011. vember, should fall to 8.5 percent growing interest of hospitals and “Hiring will come from some of next year, Johnson said. Michigan tions, mergers or affiliations with physician organizations to merge will continue to see improvement hospitals and physician organiza- into larger health systems for in the manufacturing sector, but it tions. managed care contracting threat- will be quite a while before its un- “We are the only health care ens UM’s business model, he said. employment rate gets to the na- system that truly has a statewide Experts predict that 2011 will be tional level — at least a year. Sta- draw of patients,” said UM CEO the year of the health care merger, tistics from the University of Doug Strong. “We admit patients acquisition and innovative affilia- Michigan point to the state creating from every county in the state.” tion. more than 80,000 new jobs in the But Strong said the growing In Southeast Michigan, a recent next two calendar years. consolidation of hospitals and study predicted an increase in NEWSPAPER physician organizations in Michi- See Economy, Page 32 gan “is a threat to our referral See Health care, Page 33 20101108-NEWS--0002-NAT-CCI-CD_-- 11/5/2010 5:31 PM Page 1 Page 2 CRAIN’S DETROIT BUSINESS November 8, 2010 ders, with 51 percent of respon- holder and regulatory approvals. is expected to close by Dec. 31. THIS JUST IN The way it was: 1990 dents saying production expand- — Sherri Welch — Marti Benedetti ed during October and 49 percent ■ From Page 1 Throughout our 25th-anniversary seeing an increase in new orders. Zoning change sought to make Indiana Metal buys ex-Ford site year, Crain’s will use this space Despite the improved produc- Two members were absent. to look at interesting items from tion, more than 61 percent of pur- way for skilled nursing home A 1.8 million-square-foot build- — Gary Anglebrandt past issues. chasing managers believe the busi- The future of the St. John De- ing in Shelby Township has been ness environment will remain the troit Riverview Center in Detroit sold by a holding company created United American Healthcare If you must same for the next six months. continues to be debated by neigh- to sell former Ford Motor Co. plants. However, the Southeast Michi- borhood groups and the city Plan- The industrial building, at picks new execs, new hometown make a gan PMI is higher than the nation- ning Commission. 50500 Mound Road, and 203 acres al average of 56.9, Chicago’s PMI of was sold to Indiana Metal LLC. The Detroit-based United American The commission plans to make 59.5 and China’s PMI of 54.7. asking price was $4.8 million, but Healthcare Corp. on Friday named telephone call, a rezoning recommendation at its — Dustin Walsh the sale price was not disclosed. a new CEO and CFO and an- Nov. 18 meeting that will go be- Indiana Metal is an Oakbrook nounced it is moving its head- always try to find a public fore the City Council for a vote in Terrace, Ill.-based investment quarters to Chicago. TechTeam keeping management January. phone — don’t ask to use the company led by Syed Arif, accord- United American’s new senior Under consideration is changing lineup intact after acquisition ing to state records. The company management team will manage the zoning so the former hospital, phone in someone’s office. plans to demolish oudated parts of the company’s operations from The management team of South- which closed in 2007, can become a the facility, making the remaining Chicago, according to a statement.
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