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Page 3 Turnaround UM center may get millions on the rise as Awrey Funds would expand depression treatment Bakeries BY JAY GREENE “Michigan suffers from 900 to looks to CRAIN’S DETROIT BUSINESS STATE PUSH 1,000 deaths by suicides each year, most attributable to depres- mark 100 The University of Michigan Depression Center may Health care: sion,” said Greden, a psychia- Two lawmakers Wallace become one of the nation’s first federally designat- trist. “One in five people have a ed depression centers of excellence, making it eligi- say Michigan needs its own form of depression. Most are ble for $5 million in annual funding beginning in Drop in home sales reform plan, treated in non-psychiatric set- COURTESY UM DEPRESSION CENTER expected as credit ends 2011. Page 4 tings, so centers of excellence The UM Depression Center, the first While federal health care leg- must have strategies to work comprehensive center in the U.S., gets islation authorized $1.2 billion in with primary-care groups and other providers.” 50,000 patient visits annually. Four counties kick in funds funding for 30 depression cen- The federal bill proposes $100 million annually ters nationally over the next 10 for 20 depression centers the first five years, and WHAT’SNEW years, Congress must still ap- for new jobs portal another $150 million for up to 30 centers the next New federal health care legislation prove an appropriations bill to five years. authorized $1.2 billion for 30 depression fund the program. Greden said Sen. Debbie Stabenow, D-Mich., pro- centers nationally over 10 years. Policy “We feel it deserves to be fund- posed the depression funding and worked to keep ed because clinical depression is the amendment in the final bill. Greden the second most-costly disorder of Manuel Tancer, M.D., chairman of psychiatry at THE REACH OF HEALTH CARE REFORM all medical diseases we face in the U.S.,” said John Wayne State University School of Medicine, said UM’s A look at six areas impacted by health Greden, M.D., executive director of the UM Depres- designation as a federal center of excellence could reform legislation, including Medicaid, sion Center and founding chairman of the National Medicare, chronic disease treatments Network of Depression Centers. See UM center, Page 21 and health centers. Pages 10-12. Airport, The pros and cons of a state W.Y. Campbell & Co. founders constitutional convention, Page 8 leave after buyback talks end manager talk This Just In new contract U.S. treasurer to speak BY TOM HENDERSON at Marygrove graduation AND RYAN BEENE CRAIN’S DETROIT BUSINESS No suggestion Marygrove College has an- nounced that U.S. Treasurer William Campbell has left the Rosie Rios will deliver the firm that bears his name — De- of any barriers keynote address at its com- troit-based W.Y. Campbell & Co. — as has his co-founder, William mencement ceremonies on BY BILL SHEA McKinley. May 15. CRAIN’S DETROIT BUSINESS Rios became treasurer of Two other investment bankers the United States last year. also have left to form their own The manager who led Detroit Rios also serves on Presi- firm after discussions to buy the Metropolitan Airport to its “best dent Barack Obama’s White company back from Comerica Inc. large airport” ranking by J.D. Pow- House Council on Women ended in late March. er and Associates is near the end of and Girls. W.Y. Campbell was founded in his contract, and it’s unclear what David Fike, Marygrove 1988 and was the first investment barriers may stand in the way of a president, said the college banking firm in the city. Until new one. was honored Rios agreed to then, companies looking to do NATHAN SKID/CRAIN’S DETROIT BUSINESS The airport’s governing board deliver the address. “As a mergers or acquisitions had to use William Campbell co-founded W.Y. Campbell & Co. in 1988. It was the first has extended investment banking firm in Detroit. key federal official with firms in New York or Chicago. Lester Robin- broad experience in econom- Comerica bought the company son’s contract a ic development issues, I in 1995 for an undisclosed sum. the next few staff by the end of the year. month while ne- know her message will be Cliff Roesler, a former managing weeks. ON VIDEO Roesler joined W.Y. Campbell gotiations on a director at W.Y. Campbell, and Roesler, in 1996 from Coopers & Lybrand. one our graduates, their In his words: new deal contin- friends and family will re- Kevin Marsh, a former director, managing di- Marsh, a director at the new ue. rector of the Campbell talks firm, joined W.Y. Campbell in member,” said Fike. left the firm March 29 to start their about his first Robinson, — Brett Callwood own company, Angle Advisors-Invest- new firm, deal at 2007 after doing M&A work for who became air- ment Banking L.L.C., and hope to said he ex- crainsdetroit.com J.P. Morgan Chase in Chicago and port manager in See This Just In, Page 2 open an office in Birmingham in pects at least /williamcampbell New York, and for Southfield- 2000 and CEO in Robinson some of the 13 based Questor Management Co. charge of day-to- investment bankers still at W.Y. L.L.C. day operations when the Wayne Campbell to join Angle. “We don’t discuss personnel County Airport Authority was created He said Comerica has been in matters or comment on any ru- by the Legislature in 2002, has had discussions with the 13 to keep mors or speculation,” said his contract renewed, with them working on current pro- Wayne Mielke, Comerica’s vice changes, four times. jects and that he hopes to land president for corporate commu- His current contract, which some or all of them after they nications. “That being said, W.Y. pays him $215,000 annually, ex- wind down their current deals. Campbell & Co. clients continue pires April 30. The authority, at its He said he hopes to have 12 to 15 to be served in the most effective NEWSPAPER investment bankers on his new See Campbell, Page 20 See Airport, Page 20 20100412-NEWS--0002-NAT-CCI-CD_-- 4/9/2010 5:53 PM Page 1
Page 2 CRAIN’S DETROIT BUSINESS April 12, 2010
its share of ticket sales receipts weekend, for Pittsburgh-based the statement, “many states are THIS JUST IN The way it was: 1985 from five concert performances. PNC Financial Services Group, which finding it more difficult to con- The lawsuit also alleges Hill- closed on its acquisition of NatCi- tinue to fund their share of the ■ From Page 1 Throughout our 25th-anniversary side has sought for Live Nation ty in December 2008. cost.” Peters has introduced leg- year, Crain’s will use this space to produce additional shows at The name change affects 119 islation that would reduce the UM medical school gets grant to look at interesting items from Freedom Hills in order to re- branches and 150 ATMs in cost share. past issues. ceive payment. Southeast Michigan. — Nancy Kaffer for oncology research — Chad Halcom — Tom Henderson Ann Arbor-based Southwest In terms of Detroit leads U.S. in sales Oncology Group and the University “ Livonia insurance firm Rep. Peters, Commerce official of Michigan Medical School have production, of bank-owned homes received a $63 million grant that put into reorganization to meet with small-biz owners The Detroit area topped the na- is the largest in school history, technology, Ingham County Circuit Court U.S. Rep. Gary Peters, D-Bloom- tion in January with 48 percent said Dr. James Woolliscroft, dean Judge William Collette on Thurs- field Hills, and U.S. Deputy Sec- of residential transactions being of the medical school. directors, writers, with the day issued an order that placed retary of Commerce Dennis High- bank-owned sales, according to a The UM grant from the Nation- Livonia-based American Commu- tower will meet with local report issued by Santa Ana, al Cancer Institute is part of a possible exception of sound nity Mutual Insurance Co. into re- small-business owners and state larger $120 million NCI grant Calif.-based research firm First reinforcement, there is noth- habilitation. officials today in Farmington American CoreLogic. that will be distributed over six Hills to talk about the future of a Rehabilitation is corporate re- Riverside, Calif., was the years to Southwest’s other mem- small-business support pro- ing we don’t have (in organization under Chapter 81 leader in the total number of dis- ber institutions. gram, according to a statement. of the Michigan Insurance Code. — Jay Greene Funding for the U.S. Depart- tressed sales, though Detroit Detroit). Collette named Commissioner ment of Commerce’s Manufactur- ranked six in that category. ” Ken Ross of the Michigan Office of Nationally, distressed real es- Plaintiff moves lawsuit over ing Extension Partnership, John Hammond, Financial and Insurance Regulation which provides technical and tate sales — such as short sales concerts to federal court Detroit Producers Association as the health insurance compa- business assistance to small and bank-owned sales — repre- ny’s rehabilitator. sented 29 percent of all real estate Live Nation Entertainment Inc. From a March 11, 1985, article manufacturers, is shared by the The order allows OFIR to eval- federal government, state gov- transactions, the highest since moved its lawsuit against Ster- about metro Detroit’s healthy film uate American Community’s fi- ernments and local businesses. April 2009. ling Heights-based Hillside Pro- and video production industry, mostly centered on commercials nancial condition and imple- In recent years, according to — Daniel Duggan ductions Inc. from state to federal and training films. Michigan’s ment steps to protect court last week, seeking com- film tax credit package that policy-holders and creditors. CORRECTIONS pensation from concert revenue took effect in 2007 has helped — Jay Greene last season at Freedom Hill Am- bring feature films into the mix. Ⅲ A headline on Page 24 of the April 5 edition had an incorrect loca- phitheatre. tion for the Tullymore golf course community being developed by a The Beverly Hills, Calif.-based day after dismissal of a similar PNC completes rebranding group of Shelby Township investors. The project is in Stanwood, concert promoter brought a law- case at Macomb County Circuit The 235 National City Bank northeast of Grand Rapids. suit alleging fraud, conversion, Court. branches in Michigan and its 325 Ⅲ An item in the Rumblings column on Page 30 of the April 5 edition breach of contract and unjust Live Nation alleges Hillside, ATMs take on a new identity to- listed an incorrect name for one of the two artists exhibiting through enrichment before U.S. District which manages the county- day.They were all to be rebranded May 14 at the Paramount Gallery in the Ferndale branch of Paramount Judge Denise Page Hood — the owned theater, owes $321,959 for with the letters PNC over the Bank. The artist’s correct name is Fran Seikaly.
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April 12, 2010 CRAIN’S DETROIT BUSINESS Page 3
Inside Post-credit home sales fall feared Online retailer Look In The Attic finds a solution to poor president of bro- Economy hurts, but year likely to beat weak ’09 kerage services Web site visuals, Page 4. at Real Estate BY DANIEL DUGGAN The number of sales increased 6 eral program, a home must be un- One. CRAIN’S DETROIT BUSINESS percent, to 13,000 in the first quar- der a sales contract by April 30, Bankruptcy may not be best “We are antic- ter of 2010, in Livingston, Macomb, though the sale can close by the Many in the residential real es- ipating the year Oakland, Wayne and Washtenaw end of June. option for Detroit in looking tate industry hope the growing to be a roller counties compared with 12,216 in First-time homebuyers get a tax momentum in sales will survive coaster: furious to solve its budget crisis, 2009, according to data from South- credit for 10 percent of the pur- after the federal homebuyer tax activity the first chase price up to $8,000. Existing credit programs end April 30. field-based Real Estate One. six months and Page 17. homeowners can get a credit up to However, the current climate of Increases are attributed, in part, Elsea a pretty good high unemployment and difficult to the government stimulus — $6,500. slowdown the second half,” he lending guidelines poses a threat leaving questions as to whether Expect a drop for the second half said. “(The second half) will be to the regional market, prompting the level of sales will drop signifi- of the year as a result of losing the slower, since the core economy forecasts of a second-quarter dip in cantly when it is lifted. tax credit, but still a year that’s sales. Under the guidelines of the fed- better than 2009, said Dan Elsea, See Home sales, Page 20 Company index These organizations appear in this week’s Crain’s Detroit Business: Alternative Revenue Development ...... 18 Amherst Partners ...... 21 Four counties Angle Advisors-Investment Banking ...... 1 Awrey Bakeries ...... 3 Blue Cross Blue Shield of Michigan ...... 4 Business Leaders for Michigan ...... 17 help fund new Byrum & Fisk Advocacy Communications ...... 8 Center for Healthcare Research and Transformation 11 Charles Reinhart ...... 20 Chelsea Milling ...... 21 Citizens Research Council of Michigan ...... 9 jobs portal Citizens Research Council of Michigan ...... 17 Clark Hill ...... 17 Coldwell Banker Weir Manuel ...... 20 Comerica Bank ...... 1 Global firms sought Detroit City Council ...... 17 Detroit Metropolitan Airport ...... 1 to offer remote work Eastern Market ...... 18 Eastern Michigan University ...... 18 BY SHERRI WELCH Epic-MRA ...... 9 Hantz Farms ...... 18 CRAIN’S DETROIT BUSINESS Henry Ford Health System ...... 10 Kelly Services ...... 19 Four Southeast Michigan counties NATHAN SKID/CRAIN’S DETROIT BUSINESS are contributing $370,000 in stimulus When CEO Bob Wallace began at Awrey Bakeries, he consolidated warehouses, streamlined distribution and cut Look In The Attic ...... 4 money to launch a new Web portal to back product offerings to keep revenue steady. MichBio ...... 12 try to put thousands of unemployed Michigan Association of Health Plans ...... 10 Southeast Michigan designers, engi- Michigan Chamber of Commerce ...... 9 neers and project managers back to Michigan Dept. of Natural Resources & Environment 8 work. Michigan Education Association ...... 9 The company that developed the Web- Michigan Land Use Institute ...... 18 Turnaround on rise as Michigan Manufacturers Association ...... 9 based project-management system, WorkingHabitat Group Michigan Primary Care Association ...... 12 L.L.C., is based in Ma- Michigan Psychiatric Association...... 21 Oakland University ...... 19 comb Township and Oakwood Heritage Hospital ...... 21 is the brainchild of Awrey marks its 100th Oakwood Hospitals ...... 18 Tim Calkins, founder Real Estate One ...... 3 and president of the BY NATHAN SKID owned company with a North American head- Right Management ...... 19 former Advanced De- CRAIN’S DETROIT BUSINESS quarters in Quebec. Bridor produces frozen bak- R.L. Polk ...... 19 sign Resources Interna- ery products, croissants and baguettes. Seneca Partners ...... 20 tional. The venerable Awrey Bakery brand has weath- When Wallace started at Awrey, he set to work Society of Automotive Engineers International . . . . 19 Calkins shifted an ered family tragedy, financial crisis, and owner- finding ways to reduce costs while keeping rev- Southgate Community School District ...... 18 online project-man- ship and management changes. enue steady. He consolidated the company’s Stroh Brewery ...... 21 Calkins agement system he Now, with a streamlined warehouses, streamlined Troy School District ...... 18 developed for ADR’s auto-supplier roster of products and heavy- distribution and pruned University of Michigan ...... 10 clients to his new company to help em- duty cost-cutting behind it, product offerings. University of Michigan-Dearborn ...... 18 ploy engineers and designers. ADR Livonia-based Awrey Bakeries “When you take over a University of Michigan Depression Center ...... 1 closed in 2009 when its automotive busi- L.L.C. is positioned to mark 100-year-old company, there Warner Norcross & Judd ...... 8 ness dried up. Wayne County Airport Authority ...... 1 its 100th year in business is a lot to be done,” Wallace By the beginning of April, more than Wayne State University School of Medicine ...... 1 with a recipe for a turn- said. “The first year is where 3,000 professionals had registered on WorkingHabitat Group ...... 3 around. you get the most changes the new WorkingHabitat Group jobs W.Y. Campbell ...... 1 In 2005, Awrey was sold to made, and we were able to portal and posted their résumés, Northbrook Ill,-based Hilco establish a new base for the Calkins said. Equity Management L.L.C. and company.” Use of the site is free to any unem- New York-based Monomoy Awrey now has 300 em- ployed professional who registers. COURTESY OF AWREY BAKERY Capital Partners for $25 mil- ployees at its Livonia site But those registered from the four The first Awrey location was on Tireman near Department index lion, forming the company West Grand Boulevard. producing about 4 million counties providing funding — Macomb, BANKRUPTCIES ...... 19 ABI Holdings Inc. cases of goods, or 40 million Oakland, St. Clair and Livingston — Hilco now owns 60 percent of the company and pounds of baked goods, each year, generating $78 CALENDAR ...... 16 will rise to the top of searches, he said. Monomoy owns 40 percent. million in revenue. CAREERWORKS ...... 15 The state on March 22 sent letters or The company also brought in Bob Wallace, Awrey is well-known for its Long John Coffee CLASSIFIED ADS ...... 16 e-mails to alert unemployed profession- Awrey’s CEO for the past 14 months, who is a Cake and windmill cookies, but its best-sellers als in the four counties. KEITH CRAIN...... 6 proven industry veteran. are fruit bars and brownies. To help debut the portal, at www. LETTERS...... 6 Wallace previously served as chairman of the In June 2009, ABI Holdings acquired No- workinghabitat.com, those counties are Canadian National Flour Millers Association as well MARY KRAMER ...... 7 See Jobs portal, Page 19 as president of Bridor North America, a French- See Awrey, Page 21 OPINION ...... 6 OTHER VOICES ...... 6 Interested in health care news? Get a tweet of CDB PEOPLE ...... 15 THIS WEEK @ Get the latest health care news in your inbox Be among the 4,100 people getting news RUMBLINGS ...... 22 the first and third Monday each month. Sign when it happens. Follow Crain's on Twitter! STAGE TWO STRATEGIES ...... 4 WWW.CRAINSDETROIT.COM up at craindetroit.com/section/health twitter.com/crainsdetroit WEEK ON THE WEB ...... 22 20100412-NEWS--0004-NAT-CCI-CD_-- 4/9/2010 3:54 PM Page 1
Page 4 CRAIN’S DETROIT BUSINESS April 12, 2010
StageTwo Strategies A weekly look at problem-solving by second-stage companies. StageTwoStrategies is a weekly $1 million-$50 million and about 10- For more second-stage coverage, go feature that analyzes a recent 100 employees. Such firms provided to crainsdetroit.com/secondstage. business decision by a second-stage 35.7 percent of Michigan jobs in To sign up for the twice-monthly e- company. These companies are led 2007, more than any other company newsletter, go to crainsdetroit.com by growth-focused entrepreneurs with category. Crain’s is focusing on /getemail. The Second Stage print market-ready products or services. these poised-for-growth companies section will appear in Crain’s on the They generally have revenue of because of their enormous impact. third Monday of each month.
LOOK IN THE ATTIC & CO. Location: Ypsilanti questions customers had could all weren’t able to answer the right Description: Look In The Attic is an have been answered easily and questions?” online retailer of vintage and an- quickly with the proper pho- Expert opinion: Paul Bensman, tique reproduction hardware for tographs.” president of Southfield-based re- doors, lamps and other household Solution: Cole- tail consulting firm Details in Re- items. man built a 8- tail Inc., said consumers are dri- President: John Coleman by-10-foot pho- ven by information in today’s Founded: 1997 tography studio market. Employees: 10 at the compa- “They want all of the informa- Revenue: $1.1 million in 2009, ny’s Ypsilanti tion possible at their fingertips,” projected $1.3 million in 2010. location and he said. “It’s a world of informa- Problem to be solved: Look In hired a staff tion, and we’re not just in the The Attic receives daily calls via photographer to sales business anymore.” its toll-free assistance line about shoot all of the Attic made the right move in the products it sells. Coleman retailer’s prod- photographing the products in For instance, a customer want- ucts. house, but Bensman suggested ing to buy a fluted passage crystal “We felt we had to rebuild what the company use video and 3D door knob set with a tubular latch customers wanted to see,” he said. imaging to further its service. may want to know whether the at- “I feel it’s more important that a “It’s all about informing your tachment bolt is removable or photo of a product answers the customer,” he said. “If your cus- part of the assembly. For this, customer’s questions rather than tomer can see how it’s installed he’d call the assistance line. displaying it in the best light (like and almost feel the product, John Coleman, president, said the manufacturer does).” they’ll be more apt to buy it.” one out of 10 customers call with Look In The Attic has seen a Retailers in niche markets, like 1,000 BONUS Points, questions about the products. 15 percent increase in sales on the Look In The Attic, are beginning But online shoppers make deci- products it has photographed in to grow, he said. Further online Every Night. sions quickly, and this left Cole- house. There’s also been a de- investment will facilitate growth man wondering if others with the crease in customer questions, and create larger market share. That’s earning at Bonus Speed. same questions simply moved on Coleman said. “Everyone under the age of 35 to a competitor. Risks: The initial studio invest- uses Google as their Yellow Pages,” Look In The Attic began track- ment was $25,000. Coleman wor- he said. “When the customer is ing customer questions and ried that he would build it and comfortable with the information quickly realized that the problem hire a staff photographer, but cus- and product, sales are made,” he was related to stock photographs tomers would still have the same said. “Web sites are the heart of provided by manufacturers. questions. small niche retailers, and market- “Stock photographs don’t show “We were investing a lot of time ing their products effectively on- everything the customer needs to and money and people into this line is key.” know,” Coleman said. “All of the project,” he said. “What if we — Dustin Walsh If your second-stage company has recently made a tough business decision, contact Michelle Darwish, entre- preneurship editor at Crain’s Detroit Business, at [email protected]. Register at Staybridge.com/1000bonus and book at 1-877-512-8796.
“Highest in Guest Satisfaction Among Extended Stay Hotel Chains.” – J.D. Power and Associates Bill seeks state health care reform plan
BY JAY GREENE tee. “This expands the safety net.” CRAIN’S DETROIT BUSINESS Under a four-bill package intro- This bill puts us duced last month in the state Senate Despite Congress’ approval last “ and House — Senate Bills 1242-1245 month of a comprehensive health out front of any and House Bills 6034-37 — insurers care reform package, Michigan’s could not rescind, cancel or limit ex- top two health policy legislators state. isting policies unless the subscriber contend the state can benefit by ap- ” intentionally provided false infor- proving its own version of health Tom George, Michigan senator mation in the application. care reform this spring. Under current law, Blue Cross is Must be a Priority Club® Rewards member and must register member number in advance to participate in this promotion. To register or to obtain a list of participating airlines, complete offer details, and Priority Club Rewards Membership By using an estimated $82 mil- required to take all applicants as Terms and Conditions, visit www.Staybridge.com/1000bonus or call 1-877-512-8796. Staybridge Suites received the highest months. This bill puts us out front numerical score among extended stay hotels in the proprietary J.D. Power and Associates 2009 North America Hotel Guest lion annual payment in lieu of tax- the state-designated insurer of last Satisfaction Index StudySM. Study based on responses from 66,557 guests measuring 11 extended stay hotels and of any state in health care reform.” measures opinions of guests who stayed in a hotel May 2008–June 2009. Proprietary study results are based on experience es from Blue Cross Blue Shield of resort. Other carriers may refuse and perceptions of consumers surveyed June 2008–May 2009. Your experiences may vary. Visit jdpower.com. Corriveau said the bills could © 2010 InterContinental Hotels Group. All rights reserved. Most hotels are independently owned and/or operated. Michigan and millions of dollars in complement and enhance federal people coverage because of med- expected federal dollars to ensure legislation that, in some cases, ical conditions, a practice known high-risk individuals, Michigan won’t be implemented for several as medical underwriting. can provide subsidies for up to years. The bills also would create the 1.2 million uninsured residents to For example, the federal bill al- Michigan Catastrophic Protection purchase customized private lows states to set up health insur- Plan Board, or MI-CAPP, which health insurance policies, said ance exchanges that would allow would be created in the state Office Sen. Tom George, R-Kalamazoo individuals to purchase health of Financial and Insurance and Rep. Marc Corriveau, D- policies at affordable rates. But the Regulation. Northville. exchanges won’t be in place until The six-member board would The two have been working on 2014. oversee the newly created Michigan legislation to reform the individ- “Our plan allows all carriers, Claims Fund, which would use the ual health insurance market and commercial insurers, HMOs and Blue Cross funds and other assets, add consumer protections for Blue Cross, to offer standard and to reimburse commercial carriers more than a year. enhanced benefit plans where con- and HMOs for eligible claims of “Our plan has no new taxes and sumers can choose and cannot be high-risk individuals and those no mandates,” said George, chair- rejected for pre-existing condi- with pre-existing conditions. man of the Senate’s health policy tions,” said Corriveau, chairman Jay Greene: (313) 446-0325, committee. “We can do this … in six of the House health policy commit- [email protected] DBpageAD.qxd 4/8/2010 3:14 PM Page 1
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Page 6 CRAIN’S DETROIT BUSINESS April 12, 2010 OPINION OTHER VOICES What’s holding up a CON is good for Michigan We’re concerned about the ing centers. More have been ap- views expressed by a consultant in proved by CON since tighter 2008 a March 8 Crain’s Detroit Business CT standards, mostly with doctor article, “Doctors confront state ownership (but some sponsored by Metro manager deal? hurdles to operate medical cen- hospitals), but not the prior un- ters,” that mischaracterize Michi- needed costly number. an Detroit’s international airport go from “worst to gan’s Certificate of Need program, The data on ambulatory surgery and CT imaging centers has first”? referring to “CON as a burden.” In fact, CON is a state program demonstrated that CON is flexible C That’s the question Crain’s posed in 2002 when De- in approving new centers, when that balances cost, quality and ac- troit Metropolitan Airport’s midfield terminal opened. cess issues and ensures that only Larry Horwitz Spencer Johnson there is demonstrated need in the Travelers hated the old Metro experience. The terminals were needed health care services and fa- General Motors found lower per- local area to be served. old, dirty, outdated and unfriendly to travelers. For millions of cilities are developed in Michigan. capita 2006 imaging costs in au- These and other experiences have shown that CON helps keep business travelers, it was their first impression of the region. In addition, it should be clari- tomaker states that had CON pro- fied that Michigan’s CON rules ap- grams versus those that did not. costs lower and ensures that high- Just eight years later, the esteemed J.D. Power and Associ- ply not only to physicians, but Michigan’s CON program rec- quality health care services are ates customer-satisfaction survey rated Detroit Metro highest they are the same for any person ognizes that, as the needs of the widely available to all residents, in overall customer satisfaction. or organization that wishes to es- population shift, so must the whatever their geographic region So why is the airport authority so slow to renew the contract tablish a new health care facility. quantity and types of available or socioeconomic status. The Economic Alliance for Michi- health care facilities and services, The EAM and the MHA join nu- of Lester Robinson, the CEO who led the team who made Metro gan and the Michigan Hospital and including ambulatory surgery merous other consumer, provider No. 1? Robinson has had five contracts since the authority’s cre- Health Association know that and CT imaging centers, whether and purchaser groups in support- ation in 2002. CON rules are in place to benefit owned by physicians, hospitals or ing CON because it has con- We are not privy to the current negotiations; the authority Michigan patients. others. tributed to Michigan’s ability to For 30 years, the program has For example, there are now 102 has made no statement on Robinson’s future. Curiously, when lead the nation in providing safe, helped keep cost increases moder- ambulatory surgery centers in high-quality health care at lower the J.D. Power award was announced, there was little authori- ate and assured access to high- Michigan approved by CON. That costs to families and businesses. includes 13 such centers approved ty-led fanfare. quality care throughout the state Larry Horwitz is president of the while restraining the proliferation subsequent to tighter 2006 surgery Government watchdogs and business groups with an inter- Economic Alliance for Michigan, a of unnecessary facilities and ser- standards, mostly with doctor statewide business-labor coalition. est in the airport’s welfare should be asking: How independent vices. An MHA 2009 report on hos- ownership. That is less than the is this seven-member, state-created authority? Who’s calling pital efficiency found that hospital prior rate of annual approvals, but Spencer Johnson is president of the the shots on the airport’s future? Is it the board or Wayne Coun- costs are lower in Michigan than reflecting the finding that current Michigan Health & Hospital Asso- centers were over-stretched. ciation, the state trade association ty Executive Robert Ficano, who appointed four of the authori- in neighboring states, some of which do not have CON. Also, a There has been a similar experi- representing Michigan’s communi- ty’s current members? joint study by Chrysler, Ford and ence with freestanding CT imag- ty hospitals. Robinson originally was an appointee of the late Ed McNa- mara, whose tenure as a county executive was marred by cor- ruption investigations into contracting practices at Metro. Dogged by years of those investigations and accusations of cronyism at the county-run airport, McNamara agreed in the LETTERS last days of his final term to then-Gov. John Engler’s plan to cre- ate an independent authority to manage airport affairs. The governor, executive and Wayne County commission would ap- point its members. Disputes hurt DPS students The authority staved off Republican-led efforts to launch a Editor: promise was on the horizon for Crain’s Detroit Business state takeover of the airport. I took part in the Detroit Public our children. This new union con- Schools/Detroit Federation of welcomes letters to the editor. tract really had some legs to it. Robinson survived the transition to the independent author- All letters will be considered for Teachers Joint Labor/Manage- The same day David Hecker publication, provided they are ity and, by many measures, has removed the taint of those con- ment Committee for Professional wrote a letter to the Detroit Free signed and do not defame tract scandals. Development on April 1. The com- Press saying the union reluctantly individuals or organizations. mittee participated in a dialogue supports Teach for American team But recent authority appointees, though having strong ties Letters may be edited for length to Wayne County Democratic politics, offer business creden- about working with children and and clarity. teaching with DFT members. preparing teachers with profes- Huge! Foundations would fund tials that are a little light compared to their predecessors, in- sional development for the fall. Write: Editor, Crain’s Detroit TFA candidates 100 percent. No Business, 1155 Gratiot Ave., cluding business figures like Wayne Doran, Jim Nicholson, The discussion was open, and DPS union jobs would be lost. Children Detroit, MI 48207-2997. whose term expires this fall, and David Treadwell. came well prepared with an innov- would have two adults monitoring E-mail: [email protected] If the new majority on the authority plans to make a leader- ative program designed around their achievement all day, every teaching and learning. The district day. Expert teachers would men- ship change at the airport, it should be clear about its reasons was open to critiques, and it gram right as we sat there at the why. Public confidence demands it. changed components of the pro- table. I left the New Center feeling See Letters, Page 7 KEITH CRAIN: It’s time to start the very painful journey There are a lot of people who It’s a real catch-22. eliminated, then the reality, and it’s going to be very be increasing at a rapid pace. It’s a aren’t going to like it. Detroit needs to get on message isn’t going to painful all across the country contradiction that is going to con- It’s time for the mayor and the its feet so it can grow its get through to anyone. when cities and states large and fuse many of Detroit’s people. You city of Detroit to start to tighten tax base. It can’t do any- That’s when the cries small have to start making mas- simply can’t have more services their belts. Tight enough so it thing these days to im- will begin. And they sive cuts in their payroll and their forever; the money has run out in hurts. And it will hurt. prove its tax base. will be loud and long. services or simply go bankrupt, There are far too many people Mayor Dave Bing has There is no simple so- which would be an even tougher Detroit. who think that all things from the been doing a good job lution to fixing the solution. From now on, as Mayor Bing government are free and that there trying to explain to the problems that Detroit It’s been a very long time since starts to implement his rightsizing is a never-ending access to unlim- people of Detroit that got into over the last any major city has had a budget of government, it’s going to be dif- ited amounts of money. It’s simply they are going to have to half century. There is surplus. Today cities are strug- ficult for a lot of people. not true. lower their expecta- not much point in blam- gling to try and stay afloat. Many But the mayor has made no se- Even with the most benevolent tions. Cutting jobs ing the companies and are on the brink of sinking. cret that it has to be done, and he government in Washington, there among city workers is the people and the gov- The reality is that we are going simply isn’t enough money to afford necessary, but until the residents ernments that have long since dis- to see fewer and fewer services has been candid and frank. all the programs that Detroit’s resi- start to see their services and pre- appeared. from our cities, while the size of But sooner or later, the time dents would like to have in place. vious entitlements reduced or Now is the time to face the new the federal government seems to must come. Now is the time. 20100412-NEWS--0007-NAT-CCI-CD_-- 4/9/2010 4:38 PM Page 1
April 12, 2010 CRAIN’S DETROIT BUSINESS Page 7 MARY KRAMER: Detroit needs to learn the power of ‘and’
Detroit sure could use a “win,” Hantz, creator of one, could he not put all taking polarities and extremes and but obstacles blocking wins came Hantz Farms, was one the land he already putting them together can be pow- through loud and clear last week of five panelists at the purchased or planned Detroit needs erful. at a forum on urban agriculture UM forum that also in- to purchase in a land Detroit is an either/or town. sponsored by the University of cluded Eastern Market trust and still operate investments to Philanthropist Bob Thompson Michigan Dearborn with Crain’s. Corp. President Dan his farm? What com- learned that when he offered to Too many Detroiters — or peo- Carmody, Detroit city mittee of residents did survive, let alone contribute $200 million for badly ple who position themselves as planning executive Al you convene to advise thrive. We have needed schools. Since they were speaking for Detroiters — view Fields, the Michigan you on your plans, charter schools, they weren’t wel- for-profit enterprise as evil incar- Land Use Institute’s asked another. room for both for- come. nate. Patty Cantrell and Carl- Hantz kept his cool But Detroit needs investment to That’s a problem for a city ton Flakes, a social under a steady assault, profits and survive, let alone thrive. We have starved for investment. worker who has helped using statistics that are room for both for-profits and non- Anti-business voices are emerg- ex-offenders find work on commu- staggering: Detroit has 30,000 nonprofits. profits. Maybe it’s time we learned ing in the nascent fight to block nity gardens. acres available in Detroit — va- to be less of an either/or town and the sale of the Detroit Medical Cen- I can’t remember a forum that cant or blighted. That represents learn the power of “and.” ter to the for-profit Vanguard generated as many questions as 200,000 parcels. “We have 30,000 tion push to create a “national ur- Mary Kramer is publisher of Health Systems. this one did. The stack of question acres,” he said, “but we act like we ban food system research park” to Crain's Detroit Business. Catch her Similar voices came through cards — which I hope we can treat have five.” test all types of farming models, in- take on business news at 6:10 a.m. from some attendees who actually in future stories on agriculture — With numbers like that, Car- cluding Hantz’s, in Detroit. Mondays on the Paul W. Smith show booed plans by financial services was 4 inches high. mody suggested, there’s plenty of Two years ago, I heard a consul- on WJR AM 760 and in her blog at executive John Hantz to invest $30 Some folks seemed to be deeply room of everybody — for-profit or tant, Margaret Seidler, speak at a million in a for-profit commercial suspicious of Hantz’s plans for nonprofit. He suggested that the publishers conference on the pow- www.crainsdetroit.com/kramer. farming enterprise in Detroit. commercial farming. Why, asked Michigan congressional delega- er of “and.” She counseled that E-mail her at [email protected].
TALK ON THE WEB Re: Michigan’s economy will improve in a condition of employment is wrong. And for some, possibly dead 2011, UM economists predict: wrong. What we need is for Lansing to Supplier geek quit trying to pick the businesses of the future and leave that to free If we let government tell us we enterprise. Give every business the can take guns onto a business same deal that the movie industry property over the owner’s objec- gets and then get out of the way. tions, how long before the govern- LAST YEAR, 100,000 PEOPLE JG ment will want to tell homeowners that gun owners can bring guns onto This will happen if Michigan gives a their property? SWITCHED TO PRIORITY HEALTH. tax credit to small businesses that Fred Akers are still in Michigan. We need to bring back manufacturing jobs to Re: As cities battle to balance our state, and we need more tax credits and not more tax increases. budgets, more may turn to tax hikes: Donald Rose In the private sector, we tighten our belts and deal with it. In the public sector, they raise taxes on Re: Michigan State Fair unlikely to people already hurting. If local gov- ernment were forced to act like a pri- return this year: vate business, it would be out of busi- I say turn it into a farm with a race- ness. track, slot machines and nice middle- Roseville class housing, all connected with a used light-rail system purchased on the cheap from Mexico City. Re: Granholm faults Mike Cox for Timothy Dinan fighting health overhaul: What is Mike Cox’s legal basis Re: Bills seek to legalize guns in for the lawsuit? If it is that the gov- ernment can’t force us to buy in- employee vehicles: surance, when can I cancel my no- Prohibiting one from exercising fault car insurance? their Second Amendment rights as TS Galloway Yesterday’s same-old, same-old health plans just aren’t measuring up. Look to Priority Health for a variety of innovative products and funding options, so you can manage your costs and LETTERS CONTINUED provide benefits your employees will value. Call your agent or Priority Health at 800 471-2504 or ■ From Page 8 is a layoff list. TFA also struggles visit priorityhealth.com to learn more. tor young TFA candidates. True with allowing its candidates the collaboration between the experi- opportunity to team with veteran enced and novice would afford DFT members. Their philosophy many opportunities for everyone does not incorporate teaming. in the classrooms. Adult disputes supersede the All this on April Fools’ Day? needs of DPS children once again. There was some promise and there Promise then disappointment. The was some fooling. The promise: struggle continues to make quality The district continues to plan for education the number-one priority summer and fall and is open to cri- in DPS classrooms. (See Nancy tiques from teachers. The fooling: Kaffer’s blog, “Detroit doesn’t need Teach for America will service Teach for America. Clearly,” June children in DPS. It seems the 18, 2009.) union is pulling back from its sup- Ann K. Crowley Detroit Children First port of team teaching while there Detroit 20100412-NEWS--0008-NAT-CCI-CD_-- 4/9/2010 11:48 AM Page 1
Page 8 CRAIN’S DETROIT BUSINESS April 12, 2010
REPORTER’S NOTEBOOK
Amy Lane writes about business issues at the Capitol, telecommunications and utilities. Call (517) 371-5355 or write alane @crain.com
Amy Lane New director gets down to business LANSING — Soon after she was appointed in January to head the new Pros and cons Michigan Department of Natural Resources and Environment, Director Rebecca Humphries made the rounds to meet with business associations. The former Michigan Department of Natural Resources director was well known to the environmental and natural of state con-con resources community, but somewhat less so to businesses that would be looking to her to oversee such issues as permitting and regulation. Need, cost, effect on business are all questioned Humphries, 53, said she wanted business groups to BY AMY LANE hear her views, but CAPITOL CORRESPONDENT VIEWPOINTS more important, she wanted to ANSING — The first proposal listed on A constitutional convention question automatically goes before Michigan voters every 16 years — “hear from them … Michigan’s November ballot may not including this year. Here are arguments on both sides of the question: what were issues, L yet be on a lot of voters’ radar screens. Is the price right? be done to fix the mess we’re in,” said former how could we work But it will be. Ⅲ Grand Rapids Mayor John Logie. together?” Opposing sides are gearing up to argue Nay: Cost has been estimated at $45 million. In a February poll, voter support for a The outreach got On hold or on track? the merits of convening delegates to revise con-con dropped from 49 percent to 23 good marks. Michigan’s constitution — a “constitution- percent when the dollar figure was cited. Ⅲ Nay: Until its completion, a con-con would place in limbo issues such as tax policy and “She just al convention” question Ⅲ Yea: Only $10 million in state funds would be Humphries seemed very in that automatically goes be- government structure, which could delay needed to operate a con-con, says Clarkston business expansion or investment decisions. tune with the balance that’s needed in a fore voters every 16 years. attorney and financial adviser Henry Woloson, lot of ways, between business and Robert LaBrant, senior vice president and What’s at stake for busi- who also suggests pursuing foundation and general counsel at the Michigan Chamber of environment,” said Sarah Hubbard, ness? Opponents say a con- private funding, and says voters could decide Commerce, said a convention would “put senior vice president of government vention’s ability to delve proposed constitutional changes in a 2012 Michigan on a 24-month hold.” relations, Detroit Regional Chamber. into such issues as tax poli- primary election, saving money. Some say reforms enacted by a con-con could offset costs. Ⅲ Yea: The state needs a con-con to help It’s a balance that both sides will cy and government struc- alleviate its structural budget deficit, such as watch in the DNR/Michigan Department ture spells uncertainty that Best tool for the job? through extending Michigan’s sales tax to of Environmental Quality consolidation. could put business expan- services. It could also review layers of local The Michigan Environmental Council sion or investment deci- Ⅲ Nay: It’s overkill. The Legislature can effect governments such as townships, villages and is among supporters of Humphries’ Byrum sions on hold. needed changes in state government. intermediate school districts — all of which appointment and sees her as someone “We will not grow, there Ⅲ Yea: The Legislature has had its chance. affect the business climate, according to state “These people are not going to do what must Sen. Tom George, R-Kalamazoo. who has “the understanding of the will not be investments importance of the state’s natural brought into this state, we resources, both to the economic future will literally be treading of the state and to the health of the stability that’s now lacking. For example, to law firm Warner Norcross & Judd L.L.P. in citizens,” said Hugh McDiarmid Jr., water,” said former Democ- a con-con could address options to help the Grand Rapids. “Do you think the state is council communications director. He ratic lawmaker Dianne state’s finances and alleviate its structural moving in the right direction? I don’t think said she’s seen as a “pragmatic Byrum, partner with Byrum budget deficit, such as through extending people do.” decision maker” who “listens to all the & Fisk Advocacy Communica- Michigan’s sales tax to services — a step And he said the Legislature has not disparate voices.” tions in East Lansing. designed to help modernize an outdated proven itself capable of making needed But those supporting the tax structure but a thorny issue for law- change. One test may come with issues the Logie council is raising over the state air convention — or con-con, as makers. “These people are not going to do what quality program. The council has asked it’s known — say Michigan needs an over- “The rhetorical question is, how do you must be done to fix the mess we’re in.” the U.S. Environmental Protection haul of government structure to reflect the like things now?” said former Grand Agency to investigate deficiencies it state’s economic changes and to provide Rapids Mayor John Logie, now of counsel See Con-con, Page 9 says stem from program underfunding — a move that could prompt discussion MICHIGAN STATE UNIVERSITY ARCHIVES of fee increases. Delegates last convened for a Michigan constitutional convention in 1961-62. Randy Gross, director of environmental and regulatory policy at the Michigan Manufacturers Association, said the MMA will be watching to see if Humphries can find efficiencies within the program first. The MMA worked with the previous DEQ to craft a formula that would have resulted in a fee increase, but the Legislature “didn’t have the political will to move a fee package,” Gross said. “If we can get some efficiencies, we would be willing to look at it again.” Humphries said she plans to examine a number of environmental permitting processes and see how they can be stripped down and rebuilt to eliminate duplication of effort and steps that cost time, resources and money. Some “low-risk” permitting and regulation may be eliminated, and Humphries said she hopes to make processes “as efficient as we possibly can.” 20100412-NEWS--0009-NAT-CCI-CD_-- 4/8/2010 3:39 PM Page 1
April 12, 2010 CRAIN’S DETROIT BUSINESS Page 9 Policy Con-con: Need, cost, effect questioned ■ From Page 8 If voters approve Proposal 1, a Townships Association, the Michigan fund spending and $11 billion for special primary and general elec- State Medical Society, the Michigan the state School Aid Fund. tion would be held to select con- Association of Realtors and the “If we can spend that much vention delegates, who would con- Michigan Catholic ($45 million) over vene in Lansing in October 2011 Conference. two years and get a unless the Legislature moves up The Michigan Edu- The cost — constitution that fix- the date. The delegates would draft cation Association, of- “ es our systemic a revised constitution or proposed ten on opposing that’s the great problems, then I call changes to the current document sides of issues from that a good invest- that would eventually go to voters the state chamber, is equalizer. ment,” Logie said. for approval or rejection. now, as it was in the ” He hopes to raise The process could address a host last con-con vote in Bernie Porn, Epic-MRA Corp. $1 million to help of issues, such as allowing a gradu- 1994, on the same win passage of the ated income tax or local sales tax- page. con-con proposal, es, revising Michigan’s term limits Logie called that “an unholy al- but said he expects raising money for elected officials, adopting a liance” that “ought to be a warning will be difficult and that opponents part-time or unicameral Legisla- signal to everyone.” will spend much more to try to de- ture, and altering judicial selec- But MEA’s director of communi- feat the measure. tion. cations, Doug Pratt, said the MEA Clarkston attorney and finan- It could also review layers of lo- doesn’t see the need “to throw out cial adviser Henry Woloson, a sup- Cedar Point is the perfect place for a company outing. cal governments such as town- our constitution, which is still a porter of the con-con, said he had It’s fun, affordable, and we do all the work for you! ships, villages and intermediate good document.” He said changes last year been given an $8 million school districts — all of which “af- can instead be made through to $10 million cost estimate by a fect the business climate in a cou- amendments. member of the Michigan secretary of No matter how big your group is, we’ll plan an awesome ple of ways,” said state Sen. Tom Pratt said the fact that the MEA state’s office. day for everyone. Plus, Cedar Point offers groups a George, R-Kalamazoo, a con-con and the chamber share views on However, that person deferred a proponent. the issue should “add to people’s response to Crain’s to a Michigan wide variety of tasty meal options. And you only pay for “One is, oper- understanding of how critical an Department of State spokesman group members that show up. ating all those issue this is — and how bad of an who said the department does not layers of govern- idea a con-con is at this time.” have estimates on the cost of con- ment takes re- Beyond the merits of the con- ducting an entire con-con. We also offer a Good Any Day Program, where sources, and vention, there’s the question of Department of State communi- those resources cost. Opponents cite cost estimates cations specialist Ken Silfven said employees can purchase a discounted ticket to use any might be used reaching $45 million — a figure a statewide special election gener- day all season long. Set this up online for free! for other that changed minds in February ally costs about $10 million, and things,” he said. polling on voters’ support of a con- based on that the cost of a 2011 pri- “The second vention. mary and general election to elect Pick something everyone will love George thing is, those The poll of 600 Michigan voters, convention delegates could total and come to Cedar Point. layers of government may be, in by Lansing-based Epic-MRA Corp., $20 million. But that does not re- certain settings, an impediment to initially found 49 percent would flect other costs associated with a business growth.” vote or were leaning toward voting convention nor does it account for A constitutional convention, he in favor of holding a constitutional any additional election that might said “affords the opportunity to re- convention. But when told of esti- be involved, he said. structure Michigan government … mates that it could cost taxpayers Woloson, owner and president make it more affordable and effi- $45 million, support dropped to of Security Financial Management cient, and make Michigan open for 23 percent and the number of those Inc., said only two elections would business.” who would or were leaning toward be needed, and any proposed But business interests say just voting against the idea climbed to changes to the constitution could the opposite would occur. 71 percent. be presented to voters at an Au- Mike Johnston, vice president of Bernie Porn, president of Epic- gust 2012 primary election, saving government affairs at the Michigan MRA, said that even if the cost fig- money. Manufacturers Association, said a ure were lower, like $35 million, He suggests budgeting $10 mil- con-con “destabilizes the Michigan he’s not sure that would have lion of state funds for the opera- Sandusky, OH business climate because busi- made a difference. tion of a con-con, requiring dele- nesses need cer- He said people need to be con- gates to live within the budget, and Go to cedarpoint.com/groups for details and pricing info tainty and pre- vinced of the reasons it would also pursuing funding from foun- or call 1-800-448-2428. dictability to make sense to spend the money. dations and private sources. He make invest- “The cost — that’s the great equal- also believes a substantial amount ments.” izer,” he said. “It just turns people of convention business can be con- “While Michi- around.” ducted via webcasts and use of the gan needs to Porn said that, in general, ballot Internet. make changes proposals that fail to show polling Woloson is founder of a group in its spending support in the 60 percent range called Energize Michigan, which habits, tax poli- face difficulty. The job that con- through its Web site seeks to serve cy and regulato- con proponents face, he said, is as an outlet for disseminating in- Johnston ry environment “difficult at best.” formation on the con-con and its to become more competitive, those George said he thinks cost esti- potential benefits. changes can be made statutorily or mates are exaggerated and that it’s Another con-con supporter is even constitutionally on a targeted also possible that private founda- Gov. Jennifer Granholm, whose basis.” tions concerned about “good gov- press secretary, Liz Boyd, said “be- Robert LaBrant, senior vice ernment” could bear some of the lieves it is time for a better, more president and general counsel at cost. He said some work could be efficient constitutional framework the Michigan Chamber of Commerce, done electronically and save mon- that reflects the 21st century world said a convention would “put ey, such as committee meetings in which we must compete.” Michigan on a 24-month hold.” and work occurring in Web-based Jeff Guilfoyle, president of the “Decisions regarding Michi- format, although LaBrant ques- nonpartisan Citizens Research Coun- gan’s governmental structure and tioned potential conflicts with the cil of Michigan, said the proposal tax policy will all be on the line, at Michigan Open Meetings Act. will be interesting to watch. Citi- a constitutional convention,” he “I don’t buy it that it’s prohibi- zens Research is publishing a se- said. If a business is considering tively expensive,” George said. ries of papers on the issue. location or expansion decisions, “And if you went to a part-time “The constitutional question is LaBrant said, “why would you Legislature, the savings could a big question for the state. It’s want to make that decision when probably pay for it in one year. So I asking voters if they want to you don’t know what the outcome think the cost is more not to do it.” rewrite the most important docu- would be?” Logie said that even if the cost is ment in terms of the organization The chamber is spearheading an $45 million, that’s small in the face of government in the state of opposition ballot coalition that of the state’s budget, which is pro- Michigan,” Guilfoyle said. LaBrant said includes the manu- posed at $47.1 billion for fiscal 2011 Amy Lane: (517) 371-5355, facturers association, the Michigan and includes $7.9 billion in general [email protected] 20100412-NEWS--0010-NAT-CCI-CD_-- 4/8/2010 4:12 PM Page 1
Page 10 CRAIN’S DETROIT BUSINESS April 12, 2010 Extra NURSING HOME PROJECTS GET OK Six of seven proposed nursing home projects led by a Franklin-based investor win Department of Community Health approval, Page 13
People