get yourget ofthepie back. piece tions, thenthere’s achance you can publicans to restart budget negotia- Legislature: Ifyou can convince Re- gauntlet theGOP-controlled with afterthrew Whitmer last week downa gettinged from thegovernor’s o ce several special-interest groups report- ist whoattended themeeting. about roads,” said oneveteran lobby- put Republicans at thetable andtalk somehow we’ve the magic got dust to clients. to getting funding restored fortheir ernor’s aidesmade nocommitment strategy as unusual and said the gov- the dition ofanonymity, described out daywiped before. totaling $947 million that Whitmer to restore used be the147lineitems supplemental budget billthat could trol theLegislature to introduce a them to lobby Republicans whocon- pared talking points and encouraged the governor’s aidesread from pre- attendance. aides, according to four lobbyists in gubernatorialhuddle senior with governor’s o ce for a midafternoon vetoed spree were summoned to the axed by inanunprecedent- Whitmer theirline-item appropriationsgot senting interest special groups that just dissected. budget theDemocratic governor had corps to enlist theirhelpin the xing nior sta Lansing’s metwith lobby pressure GOP lobbyists to oce enlists Whitmer’s STATE BUDGET LIVENGOOD CHAD Antonio Luck’s next $100Mglobal Launching act: venture fund NEWSPAPER  iswas the general company line “ e governor’s o ce thinks  elobbyists, whospoke oncon- According intheroom, to those About 20 private lobbyists repre- SEE PRESSURE, PAGE crainsdetroit.com © Entire contents copyright 2019 by Crain Communications Inc. All rights reserved Tuesday, herse- press conference grams” a during ist-pitched pro- “lobby- spending for “pork barrel” Legislature’s the mer ripped Gretchen Whit- after Gov. A fewhours 25 Vol. 35No. 40 bed that can rotate to position thebeam for precise delivery of radiation. A proton therapy cancer room where patients are positioned onthetreatment HEALTH CARE McLaren’s 10-year cancer quest comes to anend [email protected] By AnnaliseFrank state asofSept. 27that have they municipalities have noti the ed 1,773 cities, townships andother takingstart business applications. Nov. — the date 1 looms the state will ational cannabis far, facilitiesso as munities have to ban opted recre- As application start date looms, cities say yes, no or maybe later to recreational marijuana Just over 50percent ofMichigan’s At least half ofMichigan’s com- PONDERING POT CANNABIS $5 acopy. $169 a year. OCTOBER 7-13, 2019|crainsdetroit.com SPECIAL REPORT! OUT ONCRAIN’S EACH MISS WEEK DON’T DELTA DENTAL OF MICHIGAN HEALTH CARE, Page 10 juana businesses —126have done forandallowrules medical mari- citiesmustWhile up optinto set want businesses upshop. to set but whetherthey to decide citiesget legalize recreational foradults, use and Taxation ofMarihuana Act. oftheMichiganportion Regulation opting facilities out ofthelicensed ordinancespassed orotherrules BROUGHT TO YOU BY Michigan voted inNovember to MCLAREN HEALTHCARE CORP.

that push thethree-room helped ProTomas-based International Inc., ofitspartner,the bankruptcy Tex- ran into ofdelays, avariety including its proton center in 2015, McLaren than 1,400visits. trekked to thecenter inFlint formore hasber treated 38patients who have Proton  erapy Center since Decem- for cancer has  as its nally arrived cutting-edge proton therapy beam cade-long quest to o er itspatients [email protected] By Jay Greene

After completing of construction McLaren Healthcare Corp.’s de- Michigan Municipal League, which Johnson, general counsel forthe vastly di erent,” said Christopher the reactions incommunities are issues that’s allover themap and fy thestate otherwise. businesses actandnoti- unless they matically legal become ground for recreational.with  auto- will ey so, asofSept. 27—it’s notthesame “ isreally has oneofthose been

Page 7 doses ofradiationdoses at tumors. rounding tissues whiledirecting high cause itcauses less damage to sur- prostate cancers andpediatric be- radiationbeam ise insome ective surers. physicians, patients andhealth in- steadily gaining acceptanceamong ing radiation treatment that is destroy cancerous cells, isan emerg- livers anarrow ofradiation beam to more than $65million. center’s total costs up25percent to pie bigger slices of the Smaller banks take sold within theirborders. within sold while others just don’twant weed may re-evaluate andoptinlater, ies leading thecharge fare.  ey rounding thelaw how orto see cit- are waiting formore sur- clarity opt-outs fornow, temporary and municipalities. creates programs andadvocates for Research isshowing that proton Proton therapy, beam which de- Many communities consider the KAT HILTON opened inthecity so far. It isamongtwo that have in Ferndale at 2625 Hilton Road. marijuana provisioning center LIV opened asamedical Page 3 SEE SEE MARIJUANA, PAGE PROTON , PAGE 28 29 2 CRAIN’S DETROIT BUSINESS // OCTO BER 7, 2019

MICHIGAN BRIEFS INSIDE From sta and wire reports. Find the full stories at crainsdetroit.com CALENDAR 24 CLASSIFIEDS 25 DEALS & DETAILS 24 health ocials say most of those inci- OPINION 8 Michigan vape ban dents revolve around black-market takes eect, marijuana vape products. OTHER VOICES 9 “For too long, companies have got- PEOPLE 24 challenges ten our kids hooked on nicotine by RUMBLINGS 30 marketing candy- avored vaping continue products as safe,” Whitmer said in a WEEK ON THE WEB 30 Gov. Gretchen Whitmer’s ban on statement last month. “at ends to- avored e-cigarettes started last d a y .” nation of indoor waterparks and hotel Wednesday after a pair of judges said Under the rules, selling a avored rooms proved popular with consum- they were not ready to decide wheth- vape product, excluding tobacco a- ers, spurring competition and attract- er to stop it. vor, could result in a misdemeanor ing interest from private equity. Michigan Court of Claims Judge charge, punishable by a $200 ne Centerbridge bought Great Wolf in Cynthia Stephens heard arguments and up to six months in jail. While the 2015 from Apollo Global Manage- Tuesday about an injunction sought ban is only eective for 180 days, it ment Inc. by Houghton tobacco vape retailer can be extended another six months 906 Vapor LLC and its owner Marc under the emergency rules. GREAT WOLF LODGE Grand Ventures Slis. e attorney general’s oce said “Today is the day that a lot of (vape Great Wolf Lodge’s resorts include water parks with a variety of amenties. raises $28 million the hearing will continue Oct. 8. business owners) are packing trucks Grand Ventures LLC has nished e lawsuit claims Whitmer’s of- to move their product out of the “We have a partner in the Chicago Great Wolf’s 18 family-oriented re- raising capital for its $28 million ag- ce lacked the legal authority to en- state,” said Andrea Bitely, spokes- area that is willing to hold our prod- sorts in the U.S. and Canada include ship fund intended to help startups act the emergency rule, which bans woman for the Defend MI Rights Co- uct for resale out of the state so we Great Wolf Lodge water resorts in Tra- based in Michigan and the Midwest. the retail sale and possession with alition, a group of around 12 actors may comply with the emergency verse City and Sandusky, Ohio. e e Grand Rapids-based venture intent to sell by a retailer of a- against the ban in Michigan, includ- rules,” Ames said. “Rather than risk properties include full-service hotels, capital rm announced Tuesday that vored-vape products for 180 days. ing aected businesses and associa- the criminal penalties, we have found indoor waterparks and recreational it made the nal close on its Fund I A separate but related lawsuit is tions. “ere are approximately 700 this is the only viable option for us activities such as bowling alleys and LP, which has invested about $5 mil- pending in federal court in western vape stores in the state ... Each of within the timeline granted.” ropes courses. lion in six companies so far and aims Michigan. Mister E-Liquid, a Grand them is, right now, guring out what It’s the second major resort in to provide capital to 15-20 over the Rapids company that makes liquids is next for them.” Traverse City’s Michigan to come under private equi- life of the fund, according to a news used in e-cigarettes, led suit arguing Joost Vapor, a vaping liquid manu- Great Wolf Lodge ty ownership in the past month. release. the ban violates the U.S. Constitu- facturer and retailer with corporate has new owner Mackinac Island’s Grand Hotel was “We continue to dierentiate our tion’s commerce clause. oces in Wyoming, Mich., packed Blackstone Group Inc. agreed to acquired by KSL Capital Partners from rm by focusing the majority of our Gov. Gretchen Whitmer an- up two 26-foot trucks to transport be- buy a 65 percent controlling interest its longtime owners, the Musser fami- deal-sourcing eorts on the greater nounced the ban on avored e-ciga- tween $2 million and $3 million of its in waterpark operator Great Wolf Re- ly. Midwest with portfolio companies in rettes Sept. 4 to combat growing products out of Michigan before the sorts Inc. from Centerbridge Partners Great Wolf opened its rst property Ann Arbor, Chicago, Cincinnati and health concerns, including deaths ban took eect, Michael Ames, chief and the two companies will form a in Wisconsin in 1997 and spent its ear- Indianapolis,” Tim Streit, Grand Ven- and hospitalizations around the administrative and compliance o- $2.9 billion joint venture to own the ly years expanding in cold-weather tures co-founder and managing part- country linked to vaping. Federal cer, said in an email. company. states across the Midwest. e combi- ner, said in the release.

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FINANCE REAL ESTATE Executive denies crimes in response to lawsuit; more investors sue

By Kirk Pinho [email protected] A Troy real estate executive says there were “no crimes committed” in his business dealings and that he doesn’t owe two former business partners money, but Viktor Gjonaj’s response to a civil lawsuit against him in Oakland County claiming he’s involved in a “multi-million dollar Ponzi-type scheme” does not deny he ed the country. It’s the latest development in a case that has the suburban real estate and legal community wondering what happened to Gjonaj, the 42-year-old long- time real estate broker and founder of the now defunct Troy-based rm Imperium Group LLC, which col- lapsed in the GETTY IMAGES/ISTOCKPHOTO Gjonaj middle of August after he stopped showing up to work. Filed Sept. 26, his response comes as lawsuits mount against him in Fueled by M&A, smaller banks Oakland County Circuit Court alleg- ing he took $700,000 from two new plaintis earlier this year. In the response to an Aug. 26 law- take bigger slices of the pie suit led by investors Kris Krstovski and Jerome Masakowski, Sterling By Kurt Nagl er banks and larger banks. Heights-based attorney Cecil St. [email protected] “It’s not these big ones “It’s not these big ones gobbling up little ones, Pierre, partner at Boyer, Dawson & St. e banking landscape of metro Detroit and gobbling up little ones, it’s these small and midsize banks coming to- Pierre PLLC and president of the the state is shifting as small and midsize rms it’s these small and gether to be able to handle and be compliant with Warren City Council, writes that Gjo- combine amid an absence of new competition. all these federal regulations that have come down naj has fully paid his debts allegedly JPMorgan Chase & Co. and Comerica Inc. still midsize banks coming since Dodd-Frank,” said Patricia Herndon, exec- owed to the two men, who say they command the most market share, but they have together to be able to utive vice president, government relations, at the invested with Gjonaj on real estate become less dominant in recent years, according handle and be compliant Lansing-based Michigan Bankers Association. deals in recent years. to annual data from the Federal Deposit Insur- New York City-based JPMorgan Chase is the Other portions of the response say ance Corp. Meanwhile, mergers and acquisi- with all these federal largest bank in the state and region by total de- Gjonaj “lacks knowledge or informa- tions are enabling other institutions such as TCF regulations that have posits. As of June, it had 26 percent of the De- tion sucient to form a belief” on the Bank and Level One Bancorp. to take a larger come down since Dodd- troit-Warren-Dearborn designated market area veracity of some of the allegations in slice of the pie. with $36.55 billion in deposits. Five years ago, it the August complaint, including: With just one new bank opening in the state Frank.” had 29.3 percent of the market with $30.8 billion J Whether there was a Ponzi since the Great Recession, community banks are Patricia Herndon in deposits. scheme. looking to combine for growth. e result is few- SEE BANKS, PAGE 26 SEE GJONAJ, PAGE 27

INSURANCE No-fault insurance changes begin to spark litigation By Chad Livengood tual Auto Insurance Co. was at the For about two years, hospitals, [email protected] Michigan Supreme Court battling a pain-management doctors and reha- As the sweeping changes Gov. lawsuit brought by Flint medical clin- bilitation centers were required to get Gretchen Whitmer and the Legisla- ic of neurosurgeon Jawad A. Shah each injured driver to assign their right ture made this summer to Michigan’s over a disputed medical bill for treat- to sue insurers to the medical provider. no-fault auto insurance start to sink ment of an injured motorist. Crain’s reported in March that the in, litigation from medical providers, State Farm’s lawsuit revolves Covenant decision caused a major insurers and injured motorists is around a case law dispute the Legis- shift in medical provider lawsuits starting to heat up. lature and Whitmer cleared up by against insurance companies from Two catastrophically injured mo- giving medical providers the right to Wayne County to Oakland County, torists and their guardians along with directly sue no-fault auto insurance where judges have been more recep- one of the state’s leading brain injury carriers over medical services ren- tive to hearing the lawsuits. In 2018, rehabilitation centers led the rst dered. State Farm was sued 440 times in major lawsuit last Wednesday asking A Michigan Supreme Court ruling Oakland County by injured motorists an Ingham County judge to declare in 2017 in a case involving State Farm and medical providers — more law- the new law’s medical care limita- and Covenant Medical Center in Sag- suits than were led against all insur- tions and price-control mechanisms inaw made it harder for medical pro- ers in Oakland County in 2011, court LARRY PEPLIN FOR CRAIN’S unconstitutional. viders to sue insurers for nonpay- records show. Gov. Gretchen Whitmer and the Michigan Legislature made sweeping changes to On the day before, State Farm Mu- ment for services rendered. SEE NO-FAULT, PAGE 26 the state’s no-fault auto insurance law. 4 CRAIN’S DETROIT BUSINESS // OCTO BER 7, 2019

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Our goal is to help you save money. Contact us today to find out how. [email protected] 313.821.3200 x 209 The vacancy rate in Detroit’s prime o ce buildings dropped this year, according to a new report from the Royal Oak o ce of JLL. SGRXhealth.com It’s harder to nd space in prime downtown o ce buildings, report says e 21 most JJOne Woodward Ave., 360,000 Occupancy: 80.8 percent in-demand of- square feet. Occupancy: 100 percent JJ e Fisher Building, 635,000 ce buildings in JJAlly Detroit Center, 1 million square feet. Occupancy: 92 percent and around square feet. Occupancy: 96.6 percent downtown De- JJ e Guardian building: 643,000 WeWork’s Cass space troit are more square feet. Occupancy: 97.9 percent moving forward than 92 percent JJChase Tower, 505,000 square feet. leased. Occupancy: 100 percent e Wall Street Journal reported Seasoned Connected Versatile at’s accord- JJFirst National Building, 850,000 on Sept. 27 that WeWork had thought KIRK ing to the annual square feet. Occupancy: 96 percent about suspending new leasing as it PINHO Detroit Skyline JJChrysler House, 416,000 square ramped up to the IPO that didn’t report from the feet. Occupancy: 97.3 percent happen, but the co-working space gi- CALL OUR TEAM Royal Oak oce of Chicago-based JJOne Kennedy Square, 247,000 ant is still moving forward with its brokerage rm JLL, which has been square feet. Occupancy: 100 percent lease at 6001 Cass Ave. in Detroit’s FOR A FREE compiling this data for a few years. JJ1001 Woodward Ave., 305,000 TechTown neighborhood. At 7.7 percent vacant, those build- square feet. Occupancy: 99 percent “While we will continue to sign PROPERTYP VALUATION ings have lled up a little bit since last JJOne Campus Martius, 1.08 million new lease agreements with our land- year, when their combined square square feet. Occupancy: 100 percent lord partners, we expect the pace to footage of nearly 10.8 million square (Note: is does not include the un- slow over the next several quarters as feet of the city’s primo oce space der-construction addition of 310,000 we focus on strategic expansion and Kevin Jappaya, CCIM was 8.8 percent empty. e vacancy square feet) protability,” the company said in a President rate was 7.5 percent in 2017. JJRenaissance Center, Tower 100, statement. Investment Sales Rents have also continued to be 588,000 square feet. Occupancy: 85 I sent questions about how much driven upward, now at $24.99 per percent is being spent on its new 91,000 Seller/Landlord Representation square foot, up a whopping $1.52 per JJRenaissance Center, Tower 200, square feet in the building owned by Buyer/Tenant Representation foot from last year, when they were 593,000 square feet. Occupancy: 48.4 Detroit-based e Platform LLC and $23.47. Even that was nearly a $1 percent when the space will open. ey were jump from 2017, when they were J Renaissance Center, Tower 300, not answered. kjcre.com 248.851.8900 $22.55 per square foot. 585,000 square feet. Occupancy: 100 A Platform spokesperson said in a 30201 Orchard Lake Road, Suite 100 Farmington Hills, MI 48334 In all, rent in those buildings has percent statement that WeWork “will bring a increased 10.82 percent in the last J Renaissance Center, Tower 400, great deal of energy to TechTown and two years, which has pushed some 576,000 square feet. Occupancy: 92.7 the greater New Center area,” adding nonprots and smaller operations percent that construction on the space is “al- out of the downtown core to the J Renaissance Center, Tower 500, ready in full swing.” north in areas like New Center. 307,000 square feet. Occupancy: 100 e Tech Town space more than “Downtown Detroit’s skyline re- percent doubles WeWork’s presence in De- mains very tight in 2019,” said Harri- J Renaissance Center, Tower 600, troit, after it took about 85,000 square son West, a research analyst for JLL. 307,000 square feet. Occupancy: 69.9 feet in a pair of Dan Gilbert-owned “With an evident shortage of quality percent buildings downtown. direct available space in the skyline, J Ford Field oce space, 331,000 CANNABIS everyone is keeping an eye on the square feet. Occupancy: 100 percent Royal Oak project Hudson’s and Monroe Blocks proj- J 1900 Saint Antoine, 99,000 square kicks o REPORT ects to see how much oce space feet. Occupancy: 100 percent will ultimately be included and when J Brewery Park, 371,000 square feet. A new townhouse development in Coverage of it will deliver. As of now, the only true Royal Oak is slated to bring 10 units large blocks of available space are in “With an evident to the market starting at $550,000. an emerging the Renaissance Center, where more e Oaks Residences, expected to industry than 60 percent of the skyline vacant shortage of quality cost more than $5 million, broke is situated.” direct available ground last month with construction in Michigan West said part of the rent increase space in the skyline, set to be nished next summer. was due to rents in the RenCen rising e Wirt-Rivette Group is the de- The state’s legalization in 2018 from $23.50 per square foot to $25.50. everyone is keeping veloper of the project at 700 E. Parent of recreational cannabis “Everything is pretty full,” West an eye on the St. and Royal Oak-based Alexander use marks its entry into the said. “ e large blocks available are in Hudson’s and Real Estate is marketing the units for the RenCen. If those spaces aren’t tak- sale. marketplace. Follow our coverage Monroe Blocks as activity in this emerging en up in the next year, this probably e general contractor is Royal eld heats up and as key isn’t going to change a lot” by the time projects to see how Oak-based Hudson Building Co. and the next Skyline report is released. the architecture rms working on the players look for roles in much o†ce space Here are the deets on those 21 project are Comprehensive Design the cannabis industry. buildings: will ultimately be Group Inc. and FX Architecture LLC, JJ211 West Fort St., 446,000 square included and when both based out of Royal Oak. Visit crainsdetroit.com/cannabis feet. Occupancy: 77.2 percent it will deliver.” JJ150 West Jeerson Ave., 500,000 Kirk Pinho: (313) 446-0412 square feet. Occupancy: 100 percent Harrison West Twitter: @kirkpinhoCDB HEALTH CARE DEGREES FOR EVERY STAGE OF YOUR CAREER

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CMU does not discriminate against persons based on age, color, disability, ethnicity, familial status, gender, gender expression, gender identity, genetic information, height, marital status, national origin, political persuasion, pregnancy, childbirth or related medical conditions, race, religion, sex, sex-based stereotypes, sexual orientation, transgender status, veteran status, or weight (see http://www.cmich.edu/ocrie). 3845767 9/19 6 CRAIN’S DETROIT BUSINESS // OCTO BER 7, 2019 Shank to be CEO of largest minority-owned investment bank following merger By Kirk Pinho bilities, talent and integrity in the corporate un- [email protected] derwriting space that we felt expanded our fran- A pair of major municipal and corporate bond chise and matched our work ethic and high rms are merging next month to create what’s be- standards of performance, and now, we have cre- ing called the biggest minority-owned investment ated a truly historic rm.” bank in the nation, headed up by Suzanne Shank Bond Buyer reported in January that Siebert from Detroit. Cisneros Shank was one of the top 25 municipal A press release says Sie- bond underwriters in 2018 with $5.64 billion bert Cisneros Shank & Co. based on omson Reuters data. LLC and e Williams Capi- A spokesman said the new rm has more than tal Group LP are merging to 50 percent more capital than Siebert Cisneros create Siebert Williams Shank had before the merger. Shank & Co. LLC, which will e release says the new company will have have its headquarters oces more than 15 oces and over 750 institutional in- in New York City and Oak- vestors. land, Calif. It will be headed In the last ve years, Siebert Cisneros Shank up by Shank, who will be has been involved in almost 2,000 municipal - president and CEO, and nancings, the press release says. It was lead Shank Christopher Williams, who manager on over 200 of those totaling almost will be chairman of the $30 billion. Williams Capital has worked on debt board. Henry Cisneros, a former U.S. Housing and equity nancing for more than 65 of the For- Affordable and Urban Development secretary, will remain a tune 100 and has worked on over 900 corporate principal of the rm and be vice chairman; the debt and equity oerings, according to the re- parent/holding company of the new rm is Shank lease. Williams Cisneros LLC, a spokesman said. Shank is active in Detroit business and philan- plans “By bringing together two rst-class rms, we thropic circles, serving on the CMS Energy (NYSE: will accelerate our collective success and greatly CMS) and Consumers Energy Inc. boards. She enhance our ability to serve our clients using a was named one of Crain’s 100 Most Inuential strong capital base that is now signi cantly larg- Women. At that time, Crain’s reported that she for every er,” Shank said in the press release. was involved in more than $1.2 trillion in munici- “We are creating the No. 1 ranked MWBE (Mi- pal bond transactions and $800 million in corpo- nority and Women Owned Business Enterprise) rate bond and equity transactions. investment banking rm in the country that will continue to compete with the best rms on Wall Kirk Pinho: (313) 446-0412 business? Street. Williams was the only rm with the capa- Twitter: @kirkpinhoCDB Michigan Supreme Court hears arguments in Honigman’s tax ght By Chad Livengood outside of the city shouldn’t be subject to the 2 [email protected] percent corporate income tax. Honigman de nes a client’s location by where LANSING — e law rm Honigman LLP was it sends the legal bills, Nieho said. in Michigan’s highest court last week ghting a Nieho said state law is ambiguous as to $1.1 million tax bill from the city of Detroit in a whether the corporate income tax applies to legal lawsuit that could have taxing implications for work created for clients outside of the city. other Detroit businesses with clients in the sub- “If the statute is indeed ambiguous, then we urbs and beyond. win,” Nieho said. “Because in the case of tax stat- e Michigan Supreme Court heard oral argu- utes, all ambiguities are construed in favor of the ments in Detroit’s appeal of a taxpayer.” Court of Appeals ruling that Justice Stephen Markman pushed back, noting certain revenue the Honig- “every statute coming before us is ambiguous by man rm earned was not that criteria.” subject to the city’s corporate “We always have conicts and disagreements income tax because they — that’s kind of the stu we do here at the court,” came from legal work done said Markman. for clients outside of the city. e income of corporations based in Detroit is For the tax years between taxed based on three equally weighted factors of 2010 and 2014, the Honig- real and personal property, payroll for employees man law rm has claimed 11 based in the city and revenue derived from goods Nieho percent of its gross revenues and services rendered within the city limits. were generated within the e Supreme Court’s justices lobbed multiple city, while about half of the rm’s 352 attorneys scenarios, probing what type of business activity work out of the First National Building in down- the rm would consider taxable. town Detroit. e law rm has other oces in Ann “If we ... were a partnership that sold widgets Arbor, Bloom eld Hills, Grand Rapids, Kalamazoo and we shipped them outside of the city of De- and Grand Rapids. troit, that wouldn’t be a revenue factor (subject to e dispute hinges on whether Honigman’s le- taxation) either,” Nieho said. gal services and work product is rendered com- Justice David Viviano said a manufacturer in plete when it’s delivered to clients outside of De- Detroit “with a couple of partners” who don’t troit or if it’s complete when the work is performed spend much time at the manufacturing plant inside the city limits. would be taxed dierently than the law rm. Charles Raimi, deputy corporation counsel for “It seems to me you guys have a lot of partners, Mayor Mike Duggan’s administration, argued so a lot of the work being done in the city is not Wednesday that an “eminently fair and reason- captured under any of these factors,” he said. able” estimate is that 50 percent of the rm’s reve- Nieho argued that’s justi ed. Just 7 percent of nue is generated from the Detroit headquarters. Honigman’s clients are based in Detroit, he said. “e phrase ‘services rendered’ in the city is Wednesday’s hearing took place on the rst synonymous with the phrase ‘services per- day of the court’s new term. e justices did not formed,’” Raimi said. indicate if or when they will rule on the appeal. Leonard Nieho, head of Honigman’s appel- late advocacy practice group, argued the law Chad Livengood: (313) 446-1654 rm’s pro ts from legal work delivered to clients Twitter: @ChadLivengood CRAIN’S DETROIT BUSINESS // OCTO BER 7, 2019 7 Antonio Luck’s next act: Launching $100M global venture fund By Kurt Nagl os who participated in the Endeavor Detroit pro- [email protected] gram. Count on it. Antonio Luck is departing Endeavor Detroit to Luck said he has several other soft commit- take his venture capital skills global. ments from investors elsewhere in the fund’s foot- Luck is helping launch a $100 million fund with print. He said $100 million in capital would pro- four other former leaders of Endeavor Global, a vide seed investment for 40 companies — two nonpro t organization that operates business companies in each geography per year — as well mentorship programs in 30 countries. His last day as follow-on support. He said he is looking to in- as managing director of En- vest in companies in Southeast Michigan but de- deavor Detroit is Oct. 31, clined to give names before conducting due dili- though he will help advise as gence. the job transitions to succes- ere’s nothing obvious linking Detroit, San sor Diana Callaghan. Francisco and the capital cities of Mexico and Co- Luck will carry the same lombia, but Luck believes entrepreneurs run in a title to the new fund, Matter- tight circle even across borders. Scale Ventures, formed this “We’ve been seeing the pipeline. We know the summer. e fund plans to entrepreneurs, we know the investors,” he said. “It focus on disrupting highly seemed obvious to give (the fund) a shot.” regulated industries such as Luck, included in Crain’s “20 in their 20s” in Luck nance, health care and 2008, has been Endeavor Detroit’s managing di- manufacturing by investing rector since its inception in 2015. Under his watch, in tech companies positioned to scale up. Luck it has helped 17 member companies generate will oversee the Midwest from his base in Detroit. $140 million in revenue and raise $83.5 million, e other managing directors are in San Francis- according to the organization. co, Mexico City, Istanbul and Bogota, Colombia. Prior to Endeavor, Luck served as director of “We have the connectivity in the ecosystem that business acceleration, entrepreneurship, innova- comes from Endeavor and our previous lives,” tion and venture capital at the Michigan Econom- Luck said. “We thought that continuing to do what ic Development Corp. we’re doing and adding a layer of capital on top Callaghan, who started with Endeavor Detroit was the next step.” last Wednesday with 15 years of experience in Luck said the new venture is in its early stages, business consulting, said she intends to take the and he did not want to put a time stamp on the baton and run. fundraising goal. Incorporated in Delaware, the “I’m looking to scale some of our services to fund is being marketed to high-net-worth inves- reach more entrepreneurs, and I’m excited about tors from around the world and will be adminis- going on a little bit of a learning journey,” she said. tered primarily from the West Coast. “I’m really going to be building o of what Antonio It has raised $2 million so far from more than a and his team have already created.” dozen venture partners, including Joe Hessling, CEO of Troy-based 365 Retail Markets, and Jason Kurt Nagl: (313) 446-0337 Wenk, CEO of Grand Rapids-based FormulaFoli- Twitter: @kurt_nagl United Way sets $40M goal for annual campaign

By Sherri Welch Way President and CEO Darienne Hudson said [email protected] ursday, following the annual campaign United Way for Southeastern Michigan has launch. “We want to see this number decreasing scaled back the amount it’s looking to raise substantially over the next three to ve years.” through its annual campaign to $40 million, from United Way will look for ways to bring more a $46 million goal set for last year’s campaign. agencies together to help families meet their ba- &RQÀGHQFHFRPHVZLWKHYHU\FDUG® At the same time, the Detroit-based nonpro t sic needs, Hudson said. has increased its target for e extra eort put behind basic needs will the number of hours the come in addition to continued support of two community volunteers to other community impact areas on which United 40,000 from 25,000 during Way is focused: nancial stability/economic the 2019-20 drive. prosperity and education, said Vickie Winn, di- Its volunteer and invest- rector of public relations. ment strategy for Wayne, United Way kicked o its “Forty-forty in Twen- Oakland and Macomb ty-twenty” drive ursday morning at the Ford counties will be focused on Resource and Engagement Center in Southwest Count on Blue Cross Blue Shield of Michigan and supporting households Detroit, a community resource center launched struggling to meet their ba- by Ford Motor Company Fund and 18 nonpro ts Blue Care Network for more choices in your coverage Hudson sic needs, United Way said. in 2013 to help break the cycle of poverty for fam- at a better value. Learn how Blue Cross can help your Joe Hinrichs, Ford Motor ilies living in the area. Co.’s president, automotive, is chairing the cam- e lower nancial target announced for this business at chooseconfi dently.com. paign for the second consecutive year, ful lling a year came amid news that United Way surpassed two-year commitment. its annual campaign goals last year, raising $47.4 “Every day, children and families in more than million and coordinating 36,000 volunteer 680,000 households across southeast Michigan hours. have trouble nding money for the basics — “During our previous campaign, we set ag- food, housing, health care, child care and trans- gressive nancial goals, anticipating the new portation,” he said in a news release. charitable giving laws and other factors impact- A March report released by the Michigan As- ing the nonpro t sector across the country,” sociation of United Ways found that 43 percent Hudson said. “is year, our goals are more con- or 1.66 million households statewide could not servative, while making sure the needs of people aord basic needs in 2017. in our communities and their families are met.” Blue Cross Blue Shield of Michigan and Blue Care Network are nonprofi t corporations and at baseline number “gives us more of a cata- independent licensees of the Blue Cross and Blue Shield Association. lyst and forces us to think very dierently about Sherri Welch: (313) 446-1694 how we help meet these basic needs,” United Twitter: @SherriWelch 8 CRAIN’S DETROIT BUSINESS // OCTO BER 7, 2019 OPINION

EDITORIAL Higher education is forgotten player in budget battle ost in the fury of last week’s state budget battle was a big part of Lthe state budget that will have rami- cations for decades. e loudest debate focused on roads and K-12 spending. It seemed the forgotten side in the discussion was higher education. Michigan saw a state funding in- crease of only an anemic 0.5 percent MICHAEL LEE for higher ed. at means the state’s [email protected] public colleges won’t even be keep- ing pace with ination in a state that keep pace with ination, continuing already ranks near the bottom — decades of disinvestment that has 44th in the nation — in public fund- put more and more weight on fami- ing for universities. lies to make up the dierence as tui- Michigan’s promotional eorts tion goes sky-high. tied to careers have emphasized the As an example, my tuition in 1990 value of skilled trades of late, and when I started college was just un- there’s no question the state needs der $100 per per credit hour — those workers. around $1,500 for a full class sched- But for long-term payo, bache- ule. My son’s tuition has been more lor’s degrees and beyond are where than quadruple that rate. it’s at. And I can tell you from experience Just ask Amazon, which didn’t that the cost of college — and an as- give metro Detroit a second look for tonishing fear of taking on crushing COMMENTARY its HQ2, because we didn’t have the debt to pay for it — is keeping kids talent. and their families from even trying. What does Amazon see in Detroit? And that’s even though the “out-the- A ripe site for its warehouses — a door” price after nancial aid is typ- New expungement package fourth is now planned at the Pontiac ically much lower for most families Silverdome site. ose ful llment than the full-freight sticker price. centers bring jobs, for certain, but Parents see that sticker price and jobs that pay a fraction of those at despair. And, Hurley says, studies will help thousands nd work any corporate headquarters or tech- show they overestimate the actual nical center. cost of college by some 40 percent. e talk to businesses every day selves for their past mistakes — Bank And the job growth of the future at overestimation keeps real peo- and they tell us the same of America has partnered with the isn’t in warehouse jobs, even if we’re ple from getting the education that Wthing: there are simply not enough Detroit Justice Center to provide a buying all our groceries from the on- will bene t them. quali ed, skilled workers to meet the place to get records clear, among line retail behemoth. Between now Younger people themselves are demands of the marketplace. many other services for formerly in- and 2026, jobs that require a four- starting to wonder if the value of a When thinking about workforce carcerated Detroiters; Cascade Engi- year degree are projected to increase college education is still there. I’ve development policies to address this neering helps give returning citizens 11 percent, but those that require had to talk to my own son, a junior crisis, we must consider expunge- a second chance for successful re-en- only a high school diploma a com- in college, about how it’s still worth ment reform legislation. Unfortu- try and provides opportunities to for- paratively weak 4.9 percent. it — literally going over the research nately, the current laws, and lack of OTHER VOICES mer inmates they may not otherwise An investment in college educa- — because he has freaked out over awareness of the expungement pro- Sandy Baruah and Rick Baker receive; and DTE Energy partnered tions pays o for state coers in the the amount of money it’s costing. cess, are keeping hundreds of thou- with the Michigan Department of long run, too. I’m still not sure he believes me. sands of Michigan residents unem- cent. With a stable career, returning Corrections last month to train in- Research published by the Lumi- One of the reasons for long-term ployed. citizens are able to support them- mates for careers after prison. na Foundation shows that increas- public disinvestment from higher State lawmakers recently intro- selves and their families while being What they have found is that an in- ing bachelor’s degrees saves states education is the belief that parents duced a six-bill legislative package productive members of society. dividual with a record typically per- money on things like incarceration and students will pay the dierence. addressed at expunging an individ- Additionally, clearance of public forms no dierently than other em- and human services, and brings in But I think we’re hitting a wall where ual’s criminal record. ese bills criminal records reduces recidivism ployees who do not have records. more tax money because college that is no longer true. have the opportunity to open up the rates and ghts crime, making com- Employers report that these employ- graduates make more money. Over Michigan’s employers and future expungement process to many munities safer. Employing someone ees are actually often more produc- the lifespan of college graduates, economy depend on knocking down Michigan residents who struggle to who is formerly incarcerated is the tive, sticklers for attendance and their increased value to states in those fears and bringing down that nd a job because of their past crim- best available recidivism-reduction timeliness, and have lower turnover terms of tax money saved and gen- sticker price. A state investment in inal records as well as open up eligi- tool. If a person stays out of trouble rates. erated totals $355,000 in time-ad- higher ed pays o down the road. bility for a number of low-level of- for ve years or more, they are no e expungement legislative pack- justed dollars. And we should be talking more fenses such as trac oenses that more likely to commit another crime age will help residents of all age Public university tuition even at about it. are ineligible under the current ex- than any member of the general pub- groups and across multiple demo- today’s rates starts to seem like a pungement law. lic. Past convictions do not predict graphics to take that rst step to a bargain, from the state’s point of Michael Lee is the managing editor Research shows that expanding future criminal conduct and should new beginning. Finding employment view. of Crain’s Detroit Business. expungement means massive eco- not be the basis for employment de- should be an easy process for people “Bottom line: State funding of nomic bene ts. Annually, the under- cisions. who are not a threat to public safety. public higher education is a smart, employment of formerly incarcerat- Michigan businesses are primed e time is now to modernize this scally conservative investment,” MORE ON WJR ed people costs the nation between and ready to support individuals who legislation and change the lives of so said Dan Hurley, CEO of the Michi- J Listen to Crain’s Group Publisher $78 billion and $87 billion in gross want to take advantage of the bene- many Michiganders. gan Association of State Universi- Mary Kramer and Managing Editor domestic product. Within two years ts of expungement and address the ties. Michael Lee talk about the week’s of receiving an expungement, a per- labor shortage. In fact, many employ- Sandy Baruah is the president and He’s got it right. stories every Monday morning at son’s likelihood of being employed ers already overlook criminal records CEO of the Detroit Regional Chamber e slim increase means that 6:15 a.m. Mondays on WJR 760 AM’s increases signi cantly and their per- to ll their talent shortages, giving and Rick Baker the president and higher-education funding won’t Paul W. Smith Show. sonal income increases by 25 per- workers a chance to prove them- CEO of the Grand Rapids Chamber. CRAIN’S DETROIT BUSINESS // OCTO BER 7, 2019 9 Michigan is ready to retool Manufacturing Day ince its introduction in 2012, shop oor can foster the kind of per- outcomes for our students? the national observance of ception shift that will make a real im- MFG Day has earned our con- Building on the SManufacturing Day has quickly pact on our economic future, at both dence as a constructive use of our current program’s grown to nearly 3,000 events last the community and regional levels. company’s time and resources, and foundation, we year, with over 275,000 people tak- It is also our hope that deci- we think the time is right for our ing part in tours and demonstra- sion-makers with the ability to inu- peers and our regional business in- believe that tions at manufacturing companies ence education policy at all levels stitutions to make a shared, coordi- creating ongoing and educational institutions across will take part in at least one MFG nated investment in its evolution, relationships with the country. Day event this year, and ask them- which will enhance this program’s students means e crowd is only expected to OTHER VOICES selves: Are we doing the best we can return on investment for companies grow in 2019, and several states have Robert Gruschow to prepare our students for this rap- that truly prioritize the attraction engaging not only gone so far as to designate October idly growing professional environ- and retention of great talent and with their schools as National Manufacturing Month, schools on a consistent basis, but ment? What would it take to match keep it right here in Michigan. adding multiple events in the weeks also, crucially, with their parents. our curriculum to the needs of this on a consistent following the traditional rst-Friday Expanding the current MFG Day diverse eld of careers? How can we Robert Gruschow is the president of basis, but also, “kick-o” tours. program with an ongoing series of build relationships with industry Deshler Group, a global Tier-1 crucially, with their With that momentum at our engagement events, mentorship op- leaders to create opportunities that automotive supplier based in backs, our company’s experience portunities and parent nights on the will increase our access to the best Livonia. parents. over the last few years tells us that we’re ready to take this to the next stage — to grow beyond a fall cele- bration, and to work together to de- velop a sustained campaign that maintains our connections with stu- dents throughout the year, beyond graduation and into the early days of their professional lives. e need addressed by programs like MFG Day is clear — Michigan’s prosperity is inextricably tied to the success of its manufacturing base, and the rate of predicted growth is cause for urgent concern. According to a study produced by Deloitte and e Manufacturing Institute in 2018, over 4.6 million manufacturing jobs will open up over the next 10 years, through a combination of attrition, baby-boomer retirements and natu- ral industry growth, but only 2.2 mil- lion jobs are expected to be lled by 2026. What can smaller companies and regional organizations do on a smaller scale that can actively move us in the right direction? Do we want to be up at Mackinac next May rede- ning the problem, or can we work together to make substantial prog- ress toward a sustainable solution? At Deshler Group, we’ve truly en- joyed the opportunity to host hun- dreds of middle and high school stu- dents at our manufacturing facilities in Michigan and Ohio through MFG Day events since 2017. We’ve grown and adapted our immersive and in- teractive MFG Day programs, from working directly with local high schools on our own to having active collaborations with the Livonia ACCELERATING Chamber of Commerce, the Oak- land County Executive’s oce, and a three-county vocational center in Ohio. However, as is expected in an in- dustry that requires constant inno- vation to remain competitive, the TOWARD A need for an updated strategy has be- come apparent. When Deshler Group approached partners this We’re accelerating year, we heard similar responses from almost everyone we talked to our carbon emission across two states and three counties: CLEANER FUTURE Why are you doing this in October? reduction goal, cutting emissions in half by 2030, High school seniors are months away from graduation, they can’t and by 80% a decade earlier than planned. And just apply for a job now. Can you get this moved to spring to maximize we’re doing it while providing affordable and the chances of hiring some of these seniors? reliable energy. Together, we can speed Michigan Our hope is that what began as project to raise visibility to change toward its cleaner energy future. perceptions can be retooled and up- graded to take on a more active and sustained campaign, a step-up made possible by the success of MFG Day’s early adopters. Building on the current program’s founda- Learn how you can get involved at journeyto80.com tion, we believe that creating ongo- ing relationships with students means engaging not only with their 10 CRAIN’S DETROIT BUSINESS // OCTOBER 7, 2019 FOCUS HEALTH CARE

ILL INTENT

Data breaches, records exposed by sector Health care is one of the most frequently targeted industries for hackers:

2019 (Jan.-Aug.) 2018

Records Records Industry Breaches Exposed Breaches Exposed Health care 363 36 million* 363 9.9 million 415.2 446 4.6 million 571 Business million*** Financial 63 100.4 million** 135 1.7 million Education 99 2.2 million 76 1.4 million Government 59 3.6 million 99 18.2 million Total 1,030 146.9 million 1,244 446.5 million

* American Medical Collection Agency, a medical billing collections company, was hacked and 20 million people had personal information accessed, including 12 million people who received services from Quest Diagnostics. ** Capital One data breach of credit card information in July that a ected 100 million people in the U.S. *** Marriott International had breach in November that a ected 383 million people worldwide. Passport details, date of birth and credit card information was exposed.

Source: Identity The‰ Resource Center GETTY IMAGES/ISTOCKPHOTO Health care organizations prepare, but many are unready for increasing threat of cyberattacks

By Jay Greene | [email protected] ansomware and other cyberattacks are expected to increase in the com- Hacking by the numbers ing years as criminals become more adept at breaking through protect- Hacking ed information systems to extract wealth or to simply create chaos. sources, RDozens of ransomware, phishing or malware attacks have already a ected targets Michigan companies, governmental bodies or organizations this year, most of  69 percent of attacks are which haven’t been reported in the press, experts tell Crain’s. perpetrated by outsiders  39 percent of all attacks Nationally, about 70 percent of ransomware attacks last year targeted small are perpetrated by organized businesses, with an average ransom demand of $116,000, according to a recent criminal groups report from Beazley Breach Response Services.  23 percent of bad actors are identi ed as nation-state BLOOMBERG Worldwide, the WannaCry ransomware attack in 2017, believed to originate or state a liated from North Korea, a ected more than 300,000 people in more than 150 coun- Certain factors decrease  43 percent of breaches Financial impact of hacking involved small businesses the cost of data breaches: tries and caused widespread problems with the United Kingdom’s National  Average total cost per care, pharmaceutical, victims  Creating an incident Health Service. U.S. companies were not targeted by WannaCry, although ex- organization was $7.9 million  nancial, energy, and response team can reduce data  52 percent of breaches in 2018, a 7.6 percent increase transportation, perts predict it is only a matter of time before something similar happens here. breach costs by $14 per record. involved hacking from $7.35 million in 2017 communications and  Use of encryption can save In Michigan, high-pro le cases include Brookside ENT and Hearing Center, a small  33 percent included social  Average cost per record of education have a higher per physician practice in Battle Creek that was hacked in a ransomware attack.  e prac- attacks hack in U.S. was $233 in 2018, capita data breach cost. $13.10 per record. up from $225 in 2017.   28 percent involved  Health care average cost Employee training can save tice’s computers were locked down, patient data and appointments frozen.  e two $9.30 per record. doctor partners refused to pay and announced they would close their o ce. malware  Heavily regulated per compromised record was Source: Verizon Data Breach industries such as health $408, up from $380 in 2017.  Insurance protection can SEE ATTACKS, PAGE 12 Report, 2019 Source: Ponemon Study, 2018 save $4.80 per record. CRAIN’S DETROIT BUSINESS // OCTO BER 7, 2019 11

Hospitals face complex web of risks By Jay Greene [email protected] Nonpro t hospitals face greater scal and credit risks from cyberattacks than any oth- er sector due to the increasingly intercon- nected nature of hospital operations and information technology, according to a re- cent report from Moody’s Investor Services. At Henry Ford Health System, Christine Wheaton, chief privacy and security ocer, said the ve-hospital system has taken steps in recent years to protect patient data, edu- Defending cate its workforce and prevent and contain against potential intrusions from ransomware at- ransomware tacks. “e whole purpose why my department attacks exists is to protect patient information pri- Experts advise the ILL INTENT vacy and provide security,” said Wheaton, following steps for who has been with the businesses seeking health system since to fend oŒ January and oversees a cybersecurity growing department of incidents: 50 security profession- A GOOD HEART CAN J Make sure als. “e health care in- employees are aware dustry, everything in of ransomware and this space, is trans- CHANGE EVERYTHING. how they can forming to improve pa- protect company tient safety” and ensure data. Max and Debra Ernst are two people with privacy is protected. “We take the Since 2010, Henry J Patch and update potential of kind and generous hearts. That’s why they Ford has reported four operating system, an attack possible data breaches. so‘ware, and very gave to create the new Max and Debra Like others in health rmware on all seriously. We care, Henry Ford is re- digital devices. regularly Ernst Heart Center, now open at Beaumont quired by federal priva- talk with J Ensure anti-virus cy laws to report leadership and anti-malware Hospital, Royal Oak. breaches and notify pa- so‘ware are set to and develop tients their personal in- automatically security formation may be used update and conduct This new state-of-the-art cardiovascular postures and inappropriately. regular scans. controls. We Wheaton said Henry outpatient center offers exceptional, are doing all Ford has learned and J Manage the use we can. ... improved from each in- of privileged comprehensive care for patients close Humans are cident, all of which have accounts. Limit the weakest been caused by human administrative to home – with a special focus on advanced link.” error. One of the rst access to systems to Christine Wheaton changes the De- those with denite heart failure. troit-based system needs and enhance made was to encrypt all its employee laptops training. and limit the use of ash drives, which are It’s part of Max and Debra’s unwavering J Congure access GETTY IMAGES/ISTOCKPHOTO also encrypted in case they are stolen or lost. permissions to les, commitment to heart health, starting in “We take the potential of an attack very directories and seriously,” Wheaton said. “We regularly talk networks appropri- 2009 with the launch of the Ernst Family with leadership and develop security pos- ately. If users only Health care organizations prepare, but many are unready for increasing threat of cyberattacks tures and controls. We are doing all we can. need read-specic Cardiovascular Center and their support ... Humans are the weakest link.” information, don’t Like other companies, Henry Ford has give them write-ac- of the life-saving Student Heart Check created a robust vendor risk-management Hacking by the numbers cess. program to ensure companies that it does program. In total, they’ve given more business with also take cybersecurity seri- J Disable macro ously. “We won’t go with suppliers that scripts from o–ce than $8 million to help communities lead won’t go through the process,” she said. les transmitted Another big change has been to move over e-mail. healthier, longer lives with Beaumont Henry Ford’s information privacy and secu- J Implement rity oce from the information technology cardiovascular care. so‘ware restriction department and into the general counsel’s policies to prevent oce, Wheaton said. programs from “We are completely partnering with IT, executing from but now I report to the general counsel. e Thank you Max and Debi for your kind common ransom- change creates independence, which is a ware locations. good thing and goes back to a risk-based ap- hearts and the lives you’ll help save. BLOOMBERG proach to security,” Wheaton said. J Back up data Henry Ford’s board of trustees, who have regularly to oŒsite or Financial impact of hacking Certain factors decrease elevated the risks of ransomware, malware cloud locations. the cost of data breaches: and hacking to a top board and manage- J Secure backups care, pharmaceutical, ment priority, are more closely overseeing JJCreating an incident and make sure they nancial, energy, and medical privacy and cybersecurity. response team can reduce data are not connected to transportation, “e board is concerned. We are not un- the computers and breach costs by $14 per record. like any other (large health care company). communications and networks they are JJUse of encryption can save We have bad actors coming at us all the education have a higher per backing up capita data breach cost. $13.10 per record. time. ... We see the data, the attempts. We see people responding. It’s a ght,” Wheaton Sources: Interviews, JJEmployee training can save J Health care average cost said. Verizon Data Breach beaumont.org/ernst-heart $9.30 per record. per compromised record was SEE RISKS, PAGE 14 Report, Ponemon Study $408, up from $380 in 2017. JJInsurance protection can Source: Ponemon Study, 2018 save $4.80 per record. 12 CRAIN’S DETROIT BUSINESS // OCTO BER 7, 2019

SPECIAL REPORT: HEALTH CARE

mation Institute data, Michigan was mends organizations focus on preven- ATTACKS ranked No. 1 in cybercrime complaints tion, educating employees and creat- FROM PAGE 10 with 201.89 per 100,000 population. ing a continuity plan in case of a Next was Florida at 176.37 and Dela- ransomware attack. Experts tell Crain’s, Health care is a particularly rich tar- ware with 175.61 per 100,000. however, each company must make get for cybercriminals, because patient In 2018, Michigan ranked eighth in decisions to pay or not to pay based on records are lled with information that the nation in victim losses in internet their own situation. can be used to steal identities, and crimes, including ransomware, at Derigiotis said cybercrime trends many health care practices are small $80.9 million, and 15th in the number show that Michigan is a top state for businesses that can’t aord to spend of victims at 7,533 in 2018, according to consumer identity theft complaints, massively on defenses. the FBI Cybercrime Report. FBI trends and Social Security numbers are prized Two other reported cases earlier this show Michigan has been has steadily possessions. And the health care in- year were the Lansing Board of Water & rising in the rankings. dustry is a trove of sensitive data: Light and Genesee County govern- e FBI also said there were 1,493 names, dates of birth, medical record ment, both of which were targets of reported ransomware crimes with $3.6 or account numbers, treatment and ransomware and experienced weeks of million in losses last year, a gure the clinical information. internal disruption of computer sys- FBI said was low because most crimes When attacked, Derigiotis said tems and problems with customer ser- go unreported and business losses many unprepared companies end up vice, costing hundreds of thousands of were not calculated. shelling out three or four times the dollars. Derigiotis said recent cyberattacks amount of money on correcting the Ransomware, a virus that locks in Baltimore and Atlanta resulted in problem than they would have spent to down computers and usually comes millions of dollars in costs to get sys- prevent the incursion in the rst place. with a demand that victims pay a ran- tems back up and running. Companies spend thousands of dol- som to get systems running again, is a “In Baltimore, the ransom was lars to hire consultants to investigate, serious business problem that many $76,000. e city didn’t pay. e fallout analyze databases closely to see what companies are unprepared to handle, was in the millions of dollars,” he said. was extracted, and ensure malware said David Derigiotis, corporate vice “Not paying could mean the dierence isn’t still present that could allow fu- president and national professional li- in staying in business or not staying in ture invasions, he said. ability practice leader with Burns & business.” “Most companies that have patient Wilcox, a Farmington Hills-based However, the FBI doesn’t recom- or customer information stolen will wholesale insurance broker and un- mend making payments in response to pay for one year of credit protection GETTY IMAGES/ISTOCKPHOTO derwriting manager. a ransomware attack. For one, paying services,” Derigiotis said. “at isn’t “We are seeing an increase in claims, doesn’t guarantee an organization will nearly enough. It hangs over your life. Data breaches, records quired to report when they have been absolutely,” Derigiotis said. “ere has get its data back. Second, paying ran- Oering 12-month credit monitoring hacked. been an increase in attacks in Michi- soms only encourages cybercriminals. is a Band-Aid. Credit monitoring just exposed by sector Ransomware legal exposure has its gan with business-interruption losses. Earlier this year, an infamous ran- lets you know your house is on re. It Health care is one of the most frequently targeted industries for hackers: own costs that usually include expens- Companies are not able to process or- somware gang announced they were doesn’t notify you if there is medical es to get computer systems unlocked, 2019 (Jan.-Aug.) 2018 ders, not access patient records and retiring because they had already fraud.” databases inspected to ensure mal- Records Records (there is a) potential for physical harm earned $2 billion from attacks. “We Derigiotis said personal information Industry Breaches Exposed Breaches Exposed ware has been removed and then lost to patients and (companies could face have proved that by doing evil deeds, like Social Security numbers ends up business revenue, Hindelang said. privacy) violations and nes. Every retribution does not come,” they said in on the “dark web” for years and goes Health care 363 36 million* 363 9.9 million “ere certainly have been disputes for a much higher price than credit 415.2 minute that goes by is a dollar lost.” a statement. 446 4.6 million 571 between companies” over hacking in- Based on FBI and Insurance Infor- Instead of paying, the FBI recom- card numbers that can be canceled. Business million*** cidents and data loss, he said. “If I had “Medical and insurance informa- Financial 63 100.4 million** 135 1.7 million to spend a signi cant amount of mon- tion can turn into fraudulent billings. ey buying identity theft products and Education 99 2.2 million 76 1.4 million EXPERTS FROM ACROSS THE GLOBE BEST PRACTICES Criminals can order prescription drugs spend time resolving problems, there or use it to buy durable medical equip- Government 59 3.6 million 99 18.2 million could be compensation for that.” EMERGING TRENDS THOUGHT LEADERS ment and sell that for a pro t,” Derigio- tis said. Total 1,030 146.9 million 1,244 446.5 million Blue Cross “I’ve seen cases where hospitals ab- * American Medical Collection Agency, a medical billing collections company, was hacked and 20 million sorb a doctor client base of someone people had personal information accessed, including 12 million people who received services from Quest In 2015, Anthem Blue Cross Blue Diagnostics. who is retiring and the paper docu- ** Capital One data breach of credit card information in July that aected 100 million people in the U.S. Shield in Indianapolis was the target of ments are discarded on the street or *** Marriott International had breach in November that aected 383 million people worldwide. Passport a cyberattack that exposed personal in- placed on a ash drive and stolen,” he details, date of birth and credit card information was exposed. formation of 80 million members, one said. “Most of the problems start with Source: Identity The‰ Resource Center of the most extensive attacks in the human error.” health care industry. Trevor Turner, sales and marketing developers are getting more sophisti- At the time, Blue Cross Blue Shield director with Advantage Technologies, cated in their attacks. of Michigan ocials said they were a cybersecurity rm in New Baltimore, “e next-generation security soft- treating the Anthem attack as if it were TCF CENTER said many small businesses don’t have ware is all (arti cial intelli- an attack on itself. While they are en- the resources to invest to keep infor- gence)-based. AI learns and analyzes tirely separate companies with distinct DETROIT MICHIGAN mation systems secure. He said com- behavior of what is running on the information systems, the Michigan OCTOBER 28, 2019 panies should spend money on simple computer and knows if software opens Blues and Anthem share data on cer- things like employee education in the up and looks for open documents,” Ab- tain members. use of emails. bott said. Bill Fandrich, chief information o- “Companies don’t have the basics Derigiotis Fandrich In some recent ransomware attacks, cer of Blue Cross Blue Shield of Michi- and are really vulnerable. ey should cybercriminals are seeding legitimate gan the past two years who worked at HOSTED BY THE STATE OF MICHIGAN have guidelines in place for employees, For example, a small physician of- websites with malicious code and Blue Cross in Massachusetts at the but they don’t,” Turner said. “... ey ce with ve doctors and 10 employees gaining entry because companies hav- time of the Anthem hack, said an in- don’t think they will be hacked until it recently was the victim of ransomware. en’t updated security software. vestigation showed no Michigan Blues’ The Summit will feature: happens.” “ey came to us for help after the fact Legal exposure from hacking, lost or member information was compro- • Internationally recognized speakers Chris Abbott, Adv-Tech’s director of and haven’t been hit since,” said Turn- stolen personal data can take various mised. client services, said computer systems er, who said the practice wants to re- forms, said Mike Hindelang, co-leader Still, “(the Anthem attack) made us • Experts from across the country should have strong anti-virus software main anonymous. of data security and privacy litigation realize we needed a more coordinated that could prevent ransomware and Turner said 80 percent of attacks are practice with Honigman LLP in De- eort across all Blues plans,” said Fan- • Presentations addressing cybersecurity other cyberthreats from compromis- caused by an employee clicking on troit. drich, who added that Massachusetts issues impacting the world ing systems. ey also should have something he or shouldn’t have. ey include nes for violating fed- Blues “scanned our environment” for backup systems in case of attack, he “Training is so important. We work eral or state privacy laws, costs to pro- potential malware that could have • Breakout sessions on emerging trends, said. with employees and management on vide data-monitoring services to cus- been transferred through the Anthem “A lot of companies are backing up education,” he said. tomers and lawsuits from aected attack. technology and best practices hard drives to an external hard drive. Experts say phishing campaigns — individuals or business partners, Hin- Last October, Anthem agreed to pay at doesn’t do any good because it where malicious e-mails are sent to delang said. a record $16 million settlement with can infect that as well,” Abbott said. employees of targeted companies — “Health care is highly regulated. You the Department of Health and Human Nowadays, “everything is going to the often succeed. For example, statistics have HIPAA (Health Insurance Porta- Services’ Oce for Civil Rights for al- For more information or to register visit cloud with osite backups. It is costly, show that there is a 90 percent chance bility and Accountability Act of 1996), leged privacy and security rules viola- www.michigan.gov/cybersummit but a good protection.” at least one person will open an e-mail and potentially each of the 50 states tions under HIPAA. Adv-Tech works with a variety of with malware for every 10 e-mails sent have noti cation requirements if the As a result of the Anthem hack, small businesses, including health out. Moreover, 23 percent of recipients wrong type of information is dis- Michigan Blues and other Blues plans care, energy, lawyers, landscaping, ho- will read the email and 11 percent will closed,” he said. adopted guidelines created by the #MiCyberSummit tels, restaurants and nancial compa- open the trouble-making attachment, While health care cyberattacks ap- Health Information Trust Alliance, a nies, to advise them how to minimize according to the Verizon Data Breach pear to be on the upswing, Hindelang health care data security collaborative risks. Each company has its own chal- Report. said the numbers may be skewed be- based in Texas. lenges, he said. Abbott said ransomware software cause health care companies are re- “HiTrust has a unique approach CRAIN’S DETROIT BUSINESS // OCTO BER 7, 2019 13

with standards, controls and measures and other health insurers are phishing that allows us to ensure that the con- and ransomware, Fandrich said. trols we have in place are eective,” “We have daily mock tests through- Fandrich said. “We have to demon- out the company. You can make some- strate (security), report, monitor and thing look legitimate,” he said. remediate issues” that happen during For example, a fake email from CEO attempted or successful hacks. Dan Loepp will purport to inform em- Fandrich said the Michigan Blues ployees that Blue Cross has changed have been implementing HiTrust over policies on compensation. e phony the past 18 months and expect to apply email will ask workers to open the for certication later this year. email for more information. “I am proud of our company. ese “We teach people not to open suspi- Norman A. Yatooma things are taken seriously. ere is not cious emails. ey are taught no (- ATTORNEY AT LAW a board meeting where (hacking) is not nancial or compensation) information a topic,” Fandrich said. like that would be sent in an email,” he In December 2018, the Michigan said. “If they open it, they get reported. Blues faced another cybersecurity is- It happens a couple times, they go sue when the laptop of an employee of through training.” a vendor company, COBX Co., was sto- ere are three types of phishing at- len. Blue Cross notied about 15,000 tacks. One is “blanket” attacks where Medicare Advantage members of a po- thousands of users within a network tential breach. receive malicious emails. A “We are very transparent and err on “spear-phishing” attack targets indi- the side of caution,” Fandrich said. viduals. e third type is a “whaling” Despite having laptop computers attack where a malicious email targets • NYA won MI’s largest judgment in 2018. encrypted and password-protected, C-suite or other high-value individuals. • NYA won MI’s largest legal malpractice Fandrich said the employee did not “Whales” are C-suite executives follow password protocols and there such as a chief medical ocer who will judgment of all time. was uncertainty on whether the laptop have greater access to medical records • NYA won the largest franchise settlement could be accessed. or a CFO who can authorize payments. in MI’s history. GETTY IMAGES/ISTOCKPHOTO “ e password could have been If a phishing attack can compromise compromised had (the hackers) in- two whales, the attacker could strike Data breaches, records quired to report when they have been tended to take action,” he said. “We gold. For example, a hacker could hacked. shut down and did a detailed analysis. make it appear that the CEO sent an exposed by sector Ransomware legal exposure has its No one tried to access our network and e-mail to a CFO requesting a conden- Health care is one of the most frequently targeted industries for hackers: own costs that usually include expens- no one got into our environment.” tial transfer of funds and access nan- es to get computer systems unlocked, Over the past several years, all Blue cial accounts. 2019 (Jan.-Aug.) 2018 databases inspected to ensure mal- Cross employee laptops have been en- Even in general phishing attacks, Records Records For Help Minding Your Own Business, Industry Breaches Exposed Breaches Exposed ware has been removed and then lost crypted and ash drives are not al- Derigiotis said small companies get business revenue, Hindelang said. lowed to be used, Fandrich said. In ad- locked down because a majority or all Contact Us for a Free Consultation. Health care 363 36 million* 363 9.9 million “ ere certainly have been disputes dition, third-party vendors must use users are connected in one system, (248) 481-2000 | normanyatooma.com 415.2 446 4.6 million 571 between companies” over hacking in- Blue Cross equipment. where malware can spread. Business million*** cidents and data loss, he said. “If I had Fandrich also said Blue Cross is en- Blue Cross has an emergency sys- Sources: Thompson Reuters Westlaw Edge Case Evaluator Report for Largest Legal Awards Financial 63 100.4 million** 135 1.7 million to spend a signicant amount of mon- couraging vendors to go through for- tem to prevent or slow malware from and Lexis Nexis Settlement and Verdict Analyzer ey buying identity theft products and mal security reviews with HiTrust. spreading. Education 99 2.2 million 76 1.4 million spend time resolving problems, there “If you do get hit by one (phishing Government 59 3.6 million 99 18.2 million could be compensation for that.” Vendor vector e-mail), we block them or stop them from spreading,” Fandrich said. “We Total 1,030 146.9 million 1,244 446.5 million Blue Cross One recent trend cybersecurity pro- have lots of segmentation in our sys- * American Medical Collection Agency, a medical billing collections company, was hacked and 20 million fessionals are seeing is that smaller tem. e worst case is one person’s PC people had personal information accessed, including 12 million people who received services from Quest In 2015, Anthem Blue Cross Blue companies are being targeted with the is locked down. We have buttons on Diagnostics. ** Capital One data breach of credit card information in July that aected 100 million people in the U.S. Shield in Indianapolis was the target of goal of accessing larger companies every computer. We can literally shut *** Marriott International had breach in November that aected 383 million people worldwide. Passport a cyberattack that exposed personal in- with which they have business rela- o, disconnect the computer from the details, date of birth and credit card information was exposed. formation of 80 million members, one tionships. network and alert security profession- Source: Identity The‰ Resource Center of the most extensive attacks in the “We are seeing a trend — smaller en- als.” health care industry. tities are being compromised as collat- Derigiotis said such mitigation can developers are getting more sophisti- At the time, Blue Cross Blue Shield eral damage in an eort to get to larger also help reduce insurance premiums. cated in their attacks. of Michigan ocials said they were more data-rich organizations,” Derigi- As an underwriter, Burns & Wilcox “ e next-generation security soft- treating the Anthem attack as if it were otis said. does an analysis of risk and exposures ware is all (articial intelli- an attack on itself. While they are en- For example, when Target Corp. was to come up with premiums, but also to gence)-based. AI learns and analyzes tirely separate companies with distinct hacked in 2013, cyber criminals got advise clients on how to protect them- behavior of what is running on the information systems, the Michigan into the corporate retailer through a selves. computer and knows if software opens Blues and Anthem share data on cer- much smaller vendor that provided “We want to make sure (the compa- up and looks for open documents,” Ab- tain members. services to Target. Hackers stole data ny is taking) preventive measures and bott said. Bill Fandrich, chief information o- on more than 40 million credit and planning for an attack as well,” Derigio- In some recent ransomware attacks, cer of Blue Cross Blue Shield of Michi- debit card customers. Target ended up tis said. “ e goal is to avoid intrusion, cybercriminals are seeding legitimate gan the past two years who worked at settling lawsuits for $18.5 million, but but when it happens we want to know websites with malicious code and Blue Cross in Massachusetts at the said it spent more than $200 million to what the response will be.” gaining entry because companies hav- time of the Anthem hack, said an in- x the data breach. Once a company has been hacked, en’t updated security software. vestigation showed no Michigan Blues’ “Smaller vendors don’t have the Derigiotis said the rst response should Legal exposure from hacking, lost or member information was compro- same budget to defend against attacks. be to contain the intrusion. “Make sure stolen personal data can take various mised. Once breached, they hold the keys to a the intruder is out of the system, make forms, said Mike Hindelang, co-leader Still, “(the Anthem attack) made us larger and much richer environment,” sure what data has been accessed, who of data security and privacy litigation realize we needed a more coordinated Derigiotis said. “Hackers work their you need to notify,” he said. “Next is to practice with Honigman LLP in De- eort across all Blues plans,” said Fan- way through systems, and companies evaluate how well the response was to troit. drich, who added that Massachusetts need to evaluate the partners they are the incident. Do an audit, what im- ey include nes for violating fed- Blues “scanned our environment” for working with much closer. is is a provements need to be made.” eral or state privacy laws, costs to pro- potential malware that could have huge soft spot for organizations.” But Derigiotis said Burns & Wilcox vide data-monitoring services to cus- been transferred through the Anthem Over the last three to ve years, Blue will not advise a client locked down in tomers and lawsuits from aected attack. Cross plans and most large companies a ransomware attack to pay or not to individuals or business partners, Hin- Last October, Anthem agreed to pay have improved cybersecurity, Fan- pay. delang said. a record $16 million settlement with drich said. For the criminals involved, the risks “Health care is highly regulated. You the Department of Health and Human “It is highly automated and articial are very low and the potential rewards have HIPAA (Health Insurance Porta- Services’ Oce for Civil Rights for al- intelligence is being used,” he said. “We are high. bility and Accountability Act of 1996), leged privacy and security rules viola- have people 24-7 monitoring. Five to “It is easy to carry out. ey can get and potentially each of the 50 states tions under HIPAA. eight years ago, we didn’t do it.” paid $1,000 or $10,000 and don’t need have notication requirements if the As a result of the Anthem hack, Other actions Michigan Blues have a high skill level to do it,” Derigiotis wrong type of information is dis- Michigan Blues and other Blues plans taken is to make sure security software said. “ ey go on the dark web, pay to closed,” he said. adopted guidelines created by the patches are installed regularly. “We launch a ransomware attack and wait While health care cyberattacks ap- Health Information Trust Alliance, a keep track of those updates and mea- to get paid or not.” pear to be on the upswing, Hindelang health care data security collaborative sure how much time it takes to do it,” said the numbers may be skewed be- based in Texas. he said. Jay Greene: (313) 446-0325 cause health care companies are re- “HiTrust has a unique approach e biggest dangers for Blue Cross Twitter: @jaybgreene 14 CRAIN’S DETROIT BUSINESS // OCTO BER 7, 2019

SPECIAL REPORT: HEALTH CARE Hospitals would take $171M-plus hit in vetoes of spending By Jay Greene pilots on autopilot toward statewide found in the budget. [email protected] Need to know J Gov. Whitmer vetoed $233.9 million implementation.” A source who asked to remain Michigan Gov. Gretchen Whitmer from state Department of Health and Gordon said it is more than state anonymous told Crain’s that the state vetoed $233.9 million in spending Human Services ocials envisioned. Legislature has reserved the $50 mil- from the state Department of Health “ e two greatest needs in behavior- lion in its balance sheet to insert and Human Services that included J Controversial Section 298 to consoli- al health are shortages on front lines; during budget negotiations. $79.3 million in general funds, nixing date physical and mental health under we need to nd ways to get (care to) “What I found shocking about the 48 line items of Republican-chosen Medicaid HMOs was vetoed people who need it,” he said. “ ere is budget is the Legislature put in work spending priorities. J MDHHS director: Republicans cut misappropriated money. It was disap- requirements for Healthy Michigan More than half of Whitmer’s cuts, essential services in health care, clean Gordon Sheehan pointing not to get the supplemental” (Medicaid) but doesn’t support it some $171 million, were targeted at water, services for families in crisis funds to nancially support at least with $10 million for outreach” to help hospitals, a decision that was criti- services ($555,000), child welfare three of 10 structurally bankrupt men- people understand how to comply cized by the Michigan Health and psychiatric evaluations ($593,000), tal health organizations. with the rules, said Gordon, adding Hospitals Association. director of the MDHHS, said state of- juvenile justice ($988,000), public as- Gordon said Whitmer’s budget that the department was not provid- “For too long, hospitals in Michi- cials are supportive of rural hospi- sistance and family independence proposal requested $50 million to ed with needed $2.5 million for sta- gan have operated with inadequate tals and want to ensure good access ($946,000). support several community mental ing to initiate the changes. Medicaid reimbursement rates, to health care services. In a brieng Monday on the bud- health organizations that have been Gordon said the executive branch which have continually moved fur- “For all the provider cuts in the get, Gordon said Whitmer needed to nancially struggling. He said restor- has done everything the state Legis- ther away from providing the full cost budget, there will be an opportunity x the state budget because Republi- ing that money is a priority in future lature requested to ensure a smooth of care,” said CEO Brian Peters in a for an orderly process to prioritize cans cut essential services in health negotiations with the state Legisla- transition to mandate healthy people statement. where the needs are the greatest,” care, clean water and services for ture. work 80 hours per week. If they don’t, “ e elimination of funding for Gordon said. “How we do it in a lim- families in crisis. Dominick Pallone, executive di- they lose coverage. hospitals further exacerbates the - ited budget (is the question).” “It was a lobbyist wish list,” Gordon rector of the Michigan Association of At least 40 of the boilerplate items nancial burden on Michigan hospi- Whitmer also asked the State Ad- said. “I say this with sadness because Health Plans, said the association re- the governor vetoed were unfunded tals, primarily those that are small or ministrative Board to approve inter- I have real respect with the appropri- mains committed to work with the mandates, Gordon said. rural, and threatens access to care in departmental transfers of $22.5 mil- ation committees of the House and state and legislators to develop an Here are some of the line-item ve- our most vulnerable communities,” lion in MDHHS funding. Senate.” integrated system that improves out- toes and the amounts: Peters said. “ e MHA will continue Transfers included adding money comes, reduces waste and expands J MiDocs Graduate Medical Educa- to work with elected ocials to se- to administrative hearing ocers Section 298 funding cut care for people. tion Consortium: $17.5 million cure critical nancial support to hos- ($180,000), workers’ compensation “We look forward to working with J Hospital payments, rural obstetri- pitals that provide access to timely, ($847,000), state community service While hospitals appeared to get the department and the Legislature cian pool: $8 million lifesaving services.” commission ($975,000), behavioral the short end of the stick, behavioral to address the nearly $90 million in J Hospital payments, rural and sole e health care cuts were part of health program administration health agencies and providers cost to the state associated with over- community hospital pool: $16.6 mil- 147 line-item vetoes totaling nearly ($593,000), oce of recipient rights cheered as Whitmer cut $3.1 million spending by select (prepaid inpatient lion $1 billion that Whitmer carved out of ($197,000), Medicaid mental health in funding for Section 298, a pilot health plans) as scal year 2019 J Hospital outpatient 7 percent rate a nearly $60 billion spending plan for services ($2 million), healthy homes program intended to integrate be- comes to a close,” Pallone said. increase: $95.2 million the scal year that began Tuesday. program ($1.5 million), Healthy havioral and physical health with Robert Sheehan, CEO of the Com- J Critical access hospital rate in- In a conference call with reporters Michigan plan administration ($6.1 Medicaid health plans managing the munity Mental Health Association of crease: $34.3 million Tuesday afternoon, Robert Gordon, million), child enforcement support two-year test. Michigan, said Whitmer’s veto of J Neonatologist rate increase: $5.2 “We are absolutely thrilled for the Section 298 funding gives an oppor- million people we serve, their family mem- tunity for the state to overhaul the J Private duty nursing rate increase: bers, and allies, that the governor mental health nancing system to $3.9 million heard their views on Section 298 and develop a holistic health care ap- J Pediatric psychiatric rate increase: responded appropriately,” Annette proach to align mental, physical and $10.7 million Downey, CEO of the Oakland Com- social outcomes under Medicaid. J Pediatric traumatic brain injury munity Health Network, said in a “We still believe that the public project: $1.5 million statement. mental health system and innovative J Private agency rate increase for “Decisions made about public and forward-looking private sector Family Preservation Programs: $2.1 mental health services should always partners can design a groundbreak- million be guided and directed by those ing behavioral health initiative that J Oral health assessment grant: $2 whom we are serving, making this could fundamentally redene the million conversation very simple; the people way local providers coordinate phys- J Child care funds indirect costs: have said no to privatization and ical and mental health care and $4.2 million therefore the push for Section 298 achieve sound health outcomes for J Autism navigator: $1 million needs to end.” our state’s most vulnerable and resil- J Child and adolescent training cen- Gordon said the Section 298 boil- ient citizens,” Sheehan said. ters: $1 million erplate language was too rigid in al- J University of Detroit Mercy dental lowing statewide integration to begin Unfunded mandates, clinics: $1 million after certain outcome criteria were health tax J Nursing facility current asset val- met at the end of the pilot projects. ue: $4.9 million On the future of Section 298, Gor- One of the biggest oversights in the J Michigan dental registry: $700,000 don said the department will have budget, Gordon said, was failing to J Oral health assessment grant: $2 more to say on how best to integrate include $50 million in state general million physical and behavioral health. funding to pay for the federal health J Pharmacy dispensing fee increase “It was always conceived as a pilot insurance tax. e $50 million gener- managed care: $7.6 million program, where the state tests out - ates a total of $180 million when fed- J New Beaumont Health psychiatric nancial integration with the health eral matching shares are factored in. training residency program: $8.4 mil- plans” and mental health agencies, “Without that money, we cannot lion Bertram L. Marks, Esq. Gordon said. “ e state could see pay actuarially sound rates, and the YOUR CORPORATE RESPONSIBILITY how it works and decide how to go state is on the hook,” said Gordon, Jay Greene: (313) 446-0325 AND DIVERSITY LEGAL EXPERT forward. ... e boilerplate puts the adding that the money needs to be Twitter: @jaybgreene

Former Michigan Civil Rights Commissioner are tempting targets because of the the hacking changes the patient’s RISKS intimate information they contain on electronic medical record in a way Validate your quality corporate citizenship FROM PAGE 11 patients. However, connected medi- that causes a doctor or nurse to mis- • Build bridges to the community cal devices also pose potentially pa- diagnose or prescribe the wrong • Increase Community morale In a December 2017 cyberattack, tient safety risks. medication, she said. Wheaton said an employee opened For example, connected medical “Medical devices are getting • Raise your brand equity an e-mail and clicked on a link with- devices such as insulin pumps, de- smarter, but there are vulnerabilities” out realizing the e-mail was part of a brillators, pacemakers and cardiac from hacking, she said. “ is is why I 248-737-4444 phishing attack. “ e user clicked on monitors are points where hackers talk about our priority of patient safe- something (he or she) shouldn’t can gain entrance into computer sys- ty. (When a device is hacked) there have. We have key security controls. tems, the classic “backdoor” inltra- can be denial of service or the device Litigation Associates, PLLC ... e security system contained it” tion. can’t communicate because it is Bertram L. Marks, Chairman & Chief Legal Counsel and kept the malware from infecting But Wheaton said an even more ooded with information.” 7375 Woodward Avenue Suite 2000 Detroit, MI 48202 the wider network. serious patient safety threat is if a de- [email protected] e Moody’s report says hospitals’ vice is hacked and instructed to turn Jay Greene: (313) 446-0325 electronic medical record systems o or to change how it functions. Or if Twitter: @jaybgreene Delta Dental is dedicated to being a leading partner in the prevention of opioid abuse.

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At right, Mitten Crate decided to move out of Mitten Crate Beau Bien Fine Foods on Riopelle Street moves out aer its six-month sublease ended. of Eastern At far right, Cory Wright is a co-founder of Market space Mitten Crate. MITTEN CRATE Company also ends subscription box service

By Anisa Jibrell [email protected] After a six-month stint in the brick- and-mortar world, gift box business Mitten Crate has left its space in East- ern Market, focusing instead on its on- line gift orders and corporate gifting service. e business, which sells gift boxes featuring Michigan-made products, was subleasing a space from Beau Bien Fine Foods LLC at 2478 Riopelle St. Between maintaining a full-scale re- tail presence, online orders and run- ning around to dierent vendors, Mit- ten Crate’s team was “stretched thin,” owner Cory Wright told Crain’s. How- ever, the company will continue to host pop-ups and participate in holiday markets, he said. Mitten Crate’s last day on Riopelle was Saturday. On Monday, the compa- ny moved its products to its central ful- llment center in Harrison Township. e company paid $2,000 per month to sublease 1,200-1,300 square feet of space, which included the storefront, a warehousing portion and ex space, according to Wright. Mitten Crate is also bidding adieu to its subscription box business, a shift triggered by sales that began to slip within the last one to two years, ac- cording to Wright. Most customers used the subscrip- tion service as a vehicle for gift-giving, but the business was receiving an in- ux of requests to tweak the content of the boxes that it wasn’t able to accom- modate, he said. e owners found that customers would much rather purchase a gift and have an ability to SOMETIMES, DATA IS THE BEST MEDICINE. personalize it, as opposed to receiving a subscription box and not having con- An emergency room is designed to treat immediate, often life- was first able to identify census tracts where blood pressure control trol over its contents, Wright explained. threatening conditions. Among all this chaos, Dr. Phillip Levy, appeared to be the worst. Remarkably, he was able to see that each e last round of subscription boxes assistant vice president of Translational Science and Clinical neighborhood had a unique constellation of underlying contributors will be shipped in December, Wright Research Innovation at Wayne State University, saw a hidden to this problem. Suddenly, it was clear: By identifying the patterns said. opportunity: A patient’s data offers clues into not only their hidden in data, he would be able to drive innovative solutions from Online orders account for around health, but into the overall health of the community. beyond the field of medicine to make a huge difference in the health half of Mitten Crate’s business, while corporate gifting, which includes of the people that live in our community. Project PHOENIX is born. themes such as employee appreciation and client retention, makes up the oth- As a resident, Dr. Levy was taught that an emergency room doctor Thinking beyond medical intervention. er half, Wright said. had to see beyond the emergencies. The patients represented Data is more than a patient’s vitals on a chart. It’s a diagnostic tool Established in 2013, Mitten Crate how the health care system was performing for the people of the that helps the health care community improve people’s lives for works with around 100 Michi- city. He learned that in most cases, there was a larger, longer- years to come. Car registration data may uncover an area where gan-based vendors throughout the term issue that was the root cause, and he was driven to imagine transportation is old and unreliable, making getting to a doctor year. Last year, the company generated a world where population health care was an effective way to practically impossible. Foreclosure data may indicate that a patient $268,000 in revenue; this year Wright improve overall health. is at risk of being homeless, and stress comes with that. “Patient said he expects sales to surpass data” in the near future is going to be completely reimagined to $400,000. PHOENIX — which stands for Population Health Outcomes and represent every person’s individual risk factors. And the effect Mitten Crate sells boxes packed with Information Exchange — is a shared database that identifies diseases products made by companies includ- of every intervention can be tracked and measured to see how affecting a particular area, the precise risk factors that cause them, ing Lush Gourmet out of Portage, Dex- effective it was. the opportunities to address them and the ability to track the health ter-based Mindo Chocolate Makers, outcomes after interventions have been put in place. It’s health that should be rising. Not the cost of it. Plymouth-based dessert shop e Blu Kitchen and more. When a patient is a symptom. PHOENIX shows how data can save lives and take costs out of the For the time being, Noelle Lotham- health care system. Instead of decades of treatment for high blood The health care world has many ways to treat patients, but Dr. Levy er, owner of Beau Bien, said the space pressure, lower-cost, proactive care could help us avoid having to wanted to treat the long-term issues that were causing large parts vacated by Mitten Crate will be used as treat it altogether. a tasting room on Saturdays, starting of the population of Detroit to be sick. He wondered why he saw so later this month. e hours are to be many relatively young patients with consequences of uncontrolled And that’s Warrior Strong. determined. hypertension. Using de-identified data from multiple sources, he Lothamer is putting out feelers for other businesses that might be a good t for the space. WARRIOR STRONG TO LEARN MORE ABOUT PHOENIX, VISIT MED.WAYNE.EDU/DATAMAPPING Anisa Jibrell: (313) 446-0495 Twitter: @anisajibrell CRAIN’S DETROIT BUSINESS // OCTO BER 7, 2019 17 Co-owner of Sindbad’s Detroit riverfront restaurant dies By Annalise Frank Need to know raised in Grosse Pointe was a hard Blancke is survived by his son, [email protected] JJBrian Blancke helped run iconic worker who also liked to have a good Matthew Blancke; mother, Noella Brian Blancke, a night owl popular nautical-themed restaurant time, his sister said. Blancke; and siblings Linda Salvade- with customers of the longtime fami- Customers often asked for mem- ro, Denise Blancke and Marc Blancke. ly-owned Sindbad’s Restaurant and JJBlancke's father co-founded Sindbad’s bers of the Blancke family, knowing He was preceded in death by his fa- Marina on the Detroit riverfront, died in 1949 someone was usually around and en- ther, Prudent “Buster” Blancke. Sept. 28. He was 61. JJNight owl, avid golfer was popular with joying the communal atmosphere — A memorial service is planned at e St. Clair Shores resident had customers but “I have to say, there was a lot of 11 a.m. Tuesday at St. Ambrose Cath- been dealing with cancer, according love for Brian” specically, she said. olic Church in Grosse Pointe Park, to his sister and Sindbad’s co-owner, changed about our customers is that e nautically minded restaurant according to an obituary from Kaul Denise Blancke. they are so diverse. You could sit oers docking stations for those who Funeral Home in St. Clair Shores. e east-side restaurant, a favorite down at the bar on a Saturday eve- come by boat. It has expanded over Memorial donations may be made watering hole and food stop for boat- ning and you will see every walk of the years, but its interior design and to the Capuchin Mission Association, ers, has been a family aair since the life ... and Brian would get along with decorations harken to the old days, 1820 Mt. Elliott St., Detroit, 48207. Blanckes’ father, Prudent “Buster” anybody that came in here. Brian as does its traditional menu, though Blancke, opened it in 1949 with liked people.” some salads and healthier options Annalise Frank: (313) 446-0416 brother-in-law Hillaire “Van” Van- e avid golfer born in 1958 and have been added. Twitter: @annalise_frank Hollebeke. Buster Blancke died in Brian Blancke died Sept. 28 at age 61. 1984 and VanHollebeke retired the year after. e rest of the Blancke family took up ownership and man- agement after that, according to De- nise Blancke: their mother, Noella Blancke; and siblings Denise, Brian, Marc and Linda Salvadero. “All us siblings, we’re very, very dif- ferent, and yet we worked together for all these years,” Denise said. “Brian was more of the night owl. Brian normally took the night shifts. And he enjoyed all the nighttime customers who would come by boat or by car. “ e one thing that has not

Awdish Bertolini And we’re here to help make Health summit YOU KNOW WHAT it happen. features former Whether you’re a company of one IT TAKES TO RUN or a large scale operation, running Aetna CEO, author a business is no small task. It takes Our health care system is beset by A BUSINESS. passion, drive and dedication. As gaps — gaps among patients, pro- your business evolves, we’re here viders and payers. ere are gaps in information: un- to o‚er experienced guidance and derstanding on all sides about dedicated support to help you. health coverage, communication among providers, gaps among peo- 53.com/CommercialBank ple in the social determinants of health. Crain’s 2019 Health Care Leader- ship Summit will focus on bridging these gaps in the eort to create a system that works for all sides of the health care equation and results in better care for all. e keynote speaker will be Hen- ry Ford Health emergency room physician Rana Awdish, M.D. Her Fifth Third Means Business book “In Shock” recounts the story of her own experience as a patient with a life-threatening condition who then returned to medicine. Another featured speaker at the summit helped put together a multi- billion-dollar deal that promises to disrupt some of the gaps in our mul- tilevel health care system: former Aetna Inc. CEO Mark Bertolini, who oversaw the insurer’s sale to phar- macy company CVS Health Corp. e summit will also feature pre- sentation of Crain’s Health Care He- roes awards along with breakout sessions focused on specialty topics. e summit runs 8:30 a.m.-1:30 p.m. Oct. 28 at e Henry hotel in Dearborn. Tickets are $185 or $2,000 for a table of 10 and are available at MEMBER FDIC crainsdetroit.com/hcsummit. 18 CRAIN’S DETROIT BUSINESS // OCTO BER 7, 2019 Nonprot group launches statewide census campaign By Sherri Welch from including the citizenship ques- [email protected] tion on the census form. But NBC e Michigan Nonprot Association News reported in late July that the has launched an eight-week, statewide question was still being asked as the media campaign to get historically un- U.S. Census Bureau was testing the dercounted populations thinking 2020 census online and on some of the about the 2020 census and the impor- printed forms sent to about 240,000 tance of getting a full count of resi- American households randomly cho- dents. sen for a test. e multime- Michigan’s local government lead- dia campaign will ers said they lacked condence in ac- run in rural and curate census counts this past spring, urban communi- according to the spring 2019 Michigan ties that are home Public Policy Survey released Tuesday. to the state’s un- e University of Michigan Center dercounted pop- for Local, State and Urban Policy sur- ulations. It will in- veyed local government leaders from clude ads on 1,364 Michigan counties, cities, town- social media, Gas ships and villages about their views on Station TV, the the 2020 Census. Gustafson Michigan Video MICHIGAN NONPROFIT ASSOCIATION Just 15 percent of local ocials said Network shown in An example of one of the bulletin boards running in the new census campaign. they were condent the census would 131 full-service provide an accurate population count Secretary of State oces, radio and troduce this to people (sooner),” she paign, next year’s campaign will in- lion eort led by MNA to increase cen- for their jurisdiction. Another 64 per- television through ads run on Com- said. clude advertisements in 140 non-tradi- sus participation in the state. cent said they were somewhat con- cast, Spectrum, Direct TV, Dish and Detroit-based Mort Crim Commu- tional, ethnic and minority media Census counts are critical because dent, while 12 percent were not very WOW in select Michigan communi- nications Inc. developed materials for outlets throughout the state coordinat- they provide demographic data that di- condent and 2 percent not condent ties. the media campaign. ey are avail- ed through New Michigan Media, and rectly inuences federal funding to at all. e $480,000 campaign, which runs able in multiple languages, including advertisements at events in those com- states for the next decade, the number Only 5 percent of the local leaders through Nov. 22, will also include bill- Spanish and Arabic. munities, Gustafson said. of congressional seats in each state and were condent the statewide count board advertisements in Detroit, Dear- e MNA-led fall census campaign e ad campaign will direct people where businesses choose to locate. would be accurate. born and Pontiac. will be followed by a 22-week cam- to visitMIVoiceCounts.org to learn the e outreach is equally important As of spring 2019, 41 percent of the e campaign is meant to introduce paign set to launch in January. importance and benets of complet- with a decreased number of U.S. Cen- local leaders surveyed indicated their the U.S. census, to make people aware e second campaign will focus on ing the census. sus Bureau sites in the state this year, jurisdictions haven’t yet started plan- it’s coming, and to understand the im- communities with large ethnic and mi- e microsite oers an opportunity and other challenges, including fears ning any actions to encourage resi- portance and how it impacts their nority populations and large popula- to see census questions ahead of time among Michigan’s immigrant popula- dents to ll out their census forms, and communities and families, said Joan tions of families with young children, to help ease fears and misunderstand- tions, sparked by White House policy 24 percent said they were unsure Gustafson, external aairs ocer for as well as rural communities that have ings. An additional page provides more and a question on citizenship posed to whether their jurisdictions were plan- the Michigan Nonprot Association. traditionally been undercounted in information, key dates and the ability respondents, as Crain’s reported in ning actions, according to the survey. “With so many competing messages previous censuses. to contact local nonprots for more in- May. and people leading busy lives, we In addition to the traditional media formation about the 2020 census. In late June, the U.S. Supreme Court Sherri Welch: (313) 446-1694 thought it was important to start to in- outreach included in the fall cam- e campaigns are part of a $10 mil- blocked the Trump administration Twitter: @SherriWelch Haven, TTI team up to oer transitional Birmingham, we’re housing to domestic violence survivors ® By Sherri Welch Need to know brings existing relationships with [email protected] J Emergency shelter brings domestic landlords in Oakland County — Pontiac domestic violence shel- violence, sexual abuse expertise to joint manages the new Transitional In Your Corner. ter Haven Inc. and Training and program Housing for Survivors program. It Treatment Innovations Inc. are also provided mental health, sub- teaming up to launch a new transi- J Training and Treatment Innovations stance use disorder and other ser- tional housing program with wrap- brings decades of housing assistance vices. around support services for Oak- experience, other support services “By assisting our clients in secur- land County survivors. J $400,000 federal grant will fund joint ing housing, they will be on a path A three-year, $400,000 grant program to put up to 24 women, families to economic stability, safety and from the U.S. Office on Violence into secure transitional housing independence,” Nimeh said. Against Women will fund the Tran- In operation for 44 years, Haven sitional Housing for Survivors pro- provides a 24-hour crisis line, gram, which will serve up to 24 in- emergency shelter for about 450 dividuals or families staying in women and children each year and Haven’s emergency residential forensic exams for survivors of do- shelter for up to 24 months. mestic and sexual abuse. Addition- The program will fill a critical ally, it provides services to help service gap, Haven President and those who have experienced such CEO Aimee Nimeh said. abuse get back on their feet, in- “Survivors ... are typically fleeing cluding counseling, job readiness 260 East Brown Street an abusive situation,” she said. Nimeh Wilson and placement, money manage- Suite 150 Some can go live with family or ment and food resources. friends, but others don’t have op- With the federal grant, Haven Birmingham, MI 48009 tions, Nimeh said. And it typically “By assisting our and TTI will hire a community re- Main 248/567-7800 | Fax 248/567-7423 takes some time to line up those clients in securing source advocate and a housing women and children with subsi- specialist who will use a joint case dized housing arrangements. housing, they will management framework to inte- Haven’s expertise in domestic be on a path to grate the services provided by each and sexual abuse crisis response economic stability, nonprofit. Staff will work with cli- and counseling, combined with ents on their housing needs while TTI’s expertise in housing assis- safety and coordinating supportive services tance and other services the two independence.” from Haven and TTI. agencies offer will help put women Aimee Nimeh “Our partnership with Haven ex- and families at Haven’s emergency pands housing resources and other shelter on a stable path, TTI Execu- skills, improve their credit and find vital behavioral health services in- www.varnumlaw.com tive Director Jacque Wilson said. permanent housing. tended to strengthen a survivor’s The new transitional housing Haven will provide case manage- sense of well-being, safety and em- will give those women and families ment and other supportive ser- powerment,” Wilson said. August 2019 a safe place to go with two-thirds of vices, while TTI — which provides Ann Arbor | Birmingham | Detroit | Grand Haven | Grand Rapids | Kalamazoo | Lansing | Novi the rent subsidized while they housing assistance programs for Sherri Welch: (313) 446-1694 work to obtain independent living the homeless and veterans and Twitter: @SherriWelch Being big on relationships is the only big that matters.

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COSTAR GROUP INC. Wayne County spent $26 million during the Robert Ficano administration putting infrastructure to the Pinnacle Race Course site to get the track open. Wayne County approves Pinnacle Race Course site sale for $40 million project By Kirk Pinho [email protected] e Wayne County Commission unanimously signed o last week on the sale of a failed former horse rac- ing track in Huron Township to a Tex- as-based developer that plans a $40 million project. e nearly $4.9 million purchase for about 650 acres that includes the former Pinnacle Race Course is not yet nal and Hillwood Enterprises LP, which is Ross Perot Jr.’s real estate From dedication to innovation company, is still doing due diligence as it explores a redevelopment. Clos- in the practice of law... ing is expected by Dec. 1 with con- struction on new light industrial and warehouse space beginning in the Celebrating 50 years spring. It would be the latest repurposing of property in Michigan’s horse rac- and looking forward to 50 more! ing industry, which in recent years Pinnacle Race Course in Huron Township closed in November 2010. has seen redevelopment plans emerge and begin to materialize for Pinnacle owner, had until March 31 Group Inc. the former Hazel Park Raceway and to redeem the property from proper- Rahal said two months ago New Northville Downs properties. ty tax foreclosure on approximately Era was “never able to provide proof e former race track on Vining $4.9 million in back-due taxes but of sucient nancing in order to Road between Sibley and Pennsylva- failed to do so. Rahal said a broker make the county comfortable to ex- nia roads is sandwiched between a opinion of value showed that all 650 ercise the right of rst refusal in the pair of county-owned properties to acres are worth between $2 million time we need.” the east and west, making the total and $4 million. e county wanted to avoid the 650-acre development area. e A Hillwood spokeswoman, Eliza- property going to a tax-foreclosure county has exercised its right of rst beth Carpenter, declined comment auction. refusal to purchase the property. e ursday morning before the 14-0 e race track was open 2008-10, state and township have already de- commission vote. and it had been listed for sale for $8 clined to purchase it. “Pinnacle has been a dicult million three years ago. e county Crain’s reported in July that Hill- chapter for Wayne County and Hu- spent $26 million during the Robert wood and Detroit-based Sterling ron Township, and there is a lot of Ficano administration putting infra- Group are working together on the work yet to do, but I’m excited about structure to the site to get the track development. e two companies the prospect of selling Pinnacle to open, Rahal said during an interview have worked together before on the people who are going to nally put it earlier this year. Shelby Township distribution center to productive use in a way that makes At the time of the 2016 property for Amazon.com Inc. on the site of a sense for this location,” Wayne Coun- listing, demolition on the site was former Visteon Corp. auto parts plant. ty Executive Warren Evans said in a taking place as a result of the county Khalil Rahal, assistant county ex- press release. “It’s a large tract of land threatening a nuisance abatement ecutive, said ursday morning that near a renowned international air- lawsuit. it’s not yet known how much of the port, and there’s a lot of potential for e property featured a 1-mile 650 acres is developable. development that will help expand horse-racing track, a 12,000-square- “We have a decent idea, but there our tax base and create jobs.” foot pavilion with restaurant and bar are signicant amounts of conserva- Rahal said in a July interview that a equipment, 15 horse stables and sig- tion easements, wetlands and right- January request for qualications for nicant paved parking space, ac- of-way issues,” he said. “We know the property was active for 49 days cording to the listing from South- there is a signicant market for light and sent to more than 900 compa- eld-based Signature Associates Inc., industrial and warehouse in the area nies in an eort to solicit oers. Just which had marketed the property. 5 1969 Kitch with two freeways, the airport, and two responses were received: one 2019 vacancy rates are tight right now.” from Hillwood and another from De- Kirk Pinho: (313) 446-0412 Attorneys & Counselors Post It Stables Inc., the previous troit-based New Era Community Twitter: @kirkpinhoCDB www.kitch.com 22 CRAIN’S DETROIT BUSINESS // OCTO BER 7, 2019

CRAIN'S LIST: HEALTH INSURERS/MANAGED CARE PLANS Ranked by 2018 Michigan revenue Michigan SE Mich. Mich. SE Mich. Mich. Mich. Mich. revenue revenue enrolled enrolled enrolled enrolled enrolled Company ($000,000) Mich. ($000,000) members members members in members members Mich. Address Top Local 2018/ percent 2018/ 2018/ 2018/ HMO/ in PPO in POS Other Phone; website Executive(s) 2017 change 2017 2017 2017 DHMO, plan plan plan members Types of health plans Blue Cross Blue Shield of Michigan/Blue Daniel Loepp $29,300.0 8.9% $29,300.0 4,713,493 4,713,493 1,120,636 3,427,815 0 165,042 PPO, HMO, HSA-eligible Care Network president and CEO $26,900.0 $26,900.0 4,623,292 4,623,292 1 products, Medigap, Medicare 600 E. Lafayette Blvd., Detroit 48226 Advantage, Medicare Part D, 1 (313) 225-9000; www.bcbsm.com commercial prescription drug plans, dental and vision bene ts, Medicaid HMO Priority Health Rick Morrone 3,840.8 5.3 543.3 NA NA NA NA NA NA HMO/PSO, Medigap, PHIC, 27777 Franklin Road, Suite SVP, employer 3,646.6 523.7 800,153 Medicare Advantage, 2 1300, South eld 48034 solutions Medicare PDP, Medicaid, (800) 942-0954; www.priorityhealth.com Self-funded Health Alliance Plan of Michigan Michael Genord, 2,016.3 -15.6 NA NA NA NA NA NA NA HMO, POS, PPO, EPO, EPA, 2850 W. Grand Blvd., Detroit 48202 M.D. 2,389.7 1,832.5 ASO, TPA 3 (313) 872-8100; hap.org interim president and CEO Delta Dental of Michigan Goran Jurkovic 1,988.7 0.3 940.6 5,672,521 2,610,020 0 4,584,248 0 1,088,273 Delta Dental Premier, Delta 4 4100 Okemos Road, Okemos 48864 president and CEO 1,983.1 939.6 5,637,122 2,605,679 Dental PPO (800) 524-0149; www.deltadentalmi.com Meridian Health Plan of Michigan Inc. Sean Kendall 1,934.3 -12.1 1,988.4 519,373 519,373 519,373 0 0 0 Medicaid, Medicare, 5 1 Campus Martius, Suite 700, Detroit 48226 president and COO 2,201.8 2,201.8 517,338 517,338 Marketplace (888) 437-0606; www.mhplan.com

Molina Healthcare of Michigan Inc. Christine Surdock 1,789.7 2 -8.2 NA 383,277 2 NA NA NA NA NA Medicaid, Medicare 6 100 W. Big Beaver Road, Suite 600, Troy 48084 president 1,949.3 2 NA 398,239 2 398,239 2 248-925-1700; www.molinahealthcare.com McLaren Health Plan Inc. Nancy Jenkins 836.1 -13.8 NA 262,446 NA NA NA NA NA Small Group; Rewards: G-3245 Beecher Road, Flint 48532 president & CEO 969.6 0.0 255,157 Platinum, Gold, Silver; (888) 327-0671; www.McLarenHealthPlan.org Standard: Platinum, Gold, 7 Silver, Bronze; HSA: Bronze ; HRA: Gold - Large Group; POS; HMO; HSA; HDHP - ASO UnitedHealthcare Dustin Hinton 447.0 4.4 447.0 NA NA NA NA NA NA UnitedHealthcareChoice, 26957 Northwestern Hwy., Suite CEO, 428.0 428.0 UnitedHealthcareChoice 400, South eld 48034 UnitedHealthcare Plus, UnitedHealthcare (800) 842-3585; uhc.com Michigan and Options PPO, HRA, HSA, 8 Wisconsin Dental PPO, Dental INO, Dental Select Managed Care, Dental Indemnity, vision, Medicare, Medicaid

Aetna Better Health Randy Hyun 293.6 2 -16.0 NA 45,032 2 NA NA NA NA NA Aetna Better Health of 1333 Gratiot, Suite 400, Detroit 48207 CEO 349.5 2 NA 50,421 2 50,421 2 Michigan and Aetna Better 9 (313) 465-1519; www.aetnabetterhealth.com/ Health Premier Plan Michigan

Upper Peninsula Health Plan LLC Melissa Holmquist 3 254.4 2 -13.1 NA 48,878 2 NA NA NA NA NA Medicaid, Medicare 10 853 West Washington St., Marquette 49855 CEO 292.8 2 NA 48,579 2 48,579 2 (906) 225-7500; uphp.com

Physician Health Plan Dennis J. Reese 199.6 2 9.4 NA NA NA NA NA NA NA NA 11 1400 E. Michigan Ave., Lansing 48912 president 182.4 2 NA 34,779 2 (517) 364-8400; www.phpmichigan.com

Total Health Care USA Inc. 4 Randy Narowitz 198.8 32.6 198.8 42,382 42,382 39,788 0 2,383 211 HMO, POS, HDHP 12 3011 W. Grand Blvd., Suite 1600, Detroit 48202 CEO 150.0 150.0 34,348 34,348 (313) 871-2000; www.thcmi.com Vision Service Plan VSP M. Scott Mitchell 147.0 5.8 NA 3,440,179 NA NA NA NA NA Vision insurance 13 2000 Town Center, Suite 1700, South eld 48075 market director 139.0 5 NA 3,672,713 (248) 350-2082; www.vsp.com Humana Inc. Ryan Zikeli 88.7 14.8 NA 212,600 NA NA NA NA NA NA 26600 Telegraph Road, Suite 220, South eld Market VP, employer 77.3 2 NA 48033 group sales 14 (800) 486-2620 ; www.humana.com Kathie Mancini president, East Central Medicare region

Michigan Complete Health Inc. (formerly Amy Williams 63.7 2 17.4 NA 2,417 2 NA NA NA NA NA Medicare, Medicaid, HMO Fidelis SecureCare of Michigan Inc.) 6 CEO 54.3 2 NA 2,478 2 2,478 2 800 Tower Drive, Suite 200, Troy 48098 15 (877) 373-8085; mmp.michigancompletehealth.com/ mmp.html

Trusted Health Plan Michigan Inc. Andrew Leonard 26.9 2 -39.7 NA 8,327 2 NA NA NA NA NA Medicaid, HMO (formerly Harbor Health Plan Inc.) 7 Miller 44.5 2 NA 9,337 2 9,337 2 16 3663 Woodward Ave., Detroit 48201 CEO (313) 578-2234; www.trustedhpmi.com

Paramount Care of Michigan Lori Johnston 22.9 2 5.3 NA 2,012 2 NA NA NA NA NA Medicare, Medicaid, 17 106 Park Place, Dundee 48131 president 21.7 2 NA 1,986 2 commercial (734) 529-7800; www.paramounthealthcare.com Want the full Excel version of this list — and every Crain's list? Become a Data Member: CrainsDetroit.com/data is list of leading Michigan insurers/managed care plans encompasses medical, dental, optical and other health care organizations. It is not a complete listing but the most comprehensive available. Unless otherwise noted, information was provided by the companies or the Michigan Oce of Financial and Insurance Regulation. Companies with headquarters elsewhere are listed with the address and top executive of their main Detroit-area oce. NA = not available. Health care plan types include: Exclusive Provider Organization (EPO) - Members must use the EPO provider network exclusively and medical services received outside of the EPO network are not covered except for emergencies. Exclusive Provider Arrangement (EPA) - Similar to an HMO. Members must choose a physician who authorizes referrals and arranges hospital admissions. Point of Service Plan (POS) - Members designate a primary care physician but can go outside the network for services. Administrative Services Only (ASO) - Oered by insurers to self-insured employers. 1 Does not include members who are part of Michigan-based groups but reside outside of Michigan. 2 From Department of Insurance and Financial Services. 3 Succeeded Dennis Smith in July. 4 Priority Health to absorb Total Health Care HMO in a merger. e deal is expected to be nalized later this year. 5 Company estimate. 6 Eective April 1, 2017, Fidelis became Michigan Complete Health Inc. 7 Harbor Health Plan Inc. was acquired by Trusted Health Plan (Washington, D.C.) in February 2017. LIST RESEARCHED BY SONYA D. HILL B:11.125” T:10.875” S:10.25”

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Media Type: Magazine MECHANICAL SPECS: COLORS: CD: None Publication: Crain’s Detroit Scale: 100% Cyan, Magenta, Yellow, Black AD: Chance Medder 120 Wall St, 2nd Fl, Due Date: 06/28 Bleed: 11.125” x 14.75” AM: Anthony Garvanic New York, NY 10005 Insertion Date: 07/08 Trim: 10.875” x 14.5” NOTES: CW: None + 1 917 237 8888 Color Profi le: SW3 Safety: 10.25” x 14” PDF X1-a Deliverable PM : Audrey Weber Viewing: 10.875” x 14.5” PP: Rose Mahan

Client: Chase Small Business FILE NAME: CHA1919_Sublime_LoC_Crains_Detroit_10_875x14_5_V1R.indd FONTS: IMAGE SELECTS: Campaign: LOC Print Ads FILE PATH: ChaseStudio:Studio:Projects:2019:...C_Crains_Detroit_10_875x14_5_V1R.indd Open Sans (Condensed Light, None Regular, Bold, Semibold Italic) LINK NAME: Color Mode: PPI: Job Number: CHA1919 CHA1916_190522DA_ATL_2070_V5_SWOP3_300DMAX_R.tif CMYK 373 ppi Round: 1R CHA_FB_MM_CMYK_KO_VERT_R_ENG.eps Page: 1 of 1 Creative Director Art Director Art Producer Copy Writer Copy Editing

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DEALS & DETAILS SPOTLIGHT

CONTRACTS EXPANSIONS NAME CHANGE ing and logistics company, acquired Lear promotes company two facilities in Venlo, Netherlands, veteran to CFO  Circle Power, Royal Oak, a renew-  Avalon, Buffalo, N.Y., provider of  dPOP, Detroit, a commercial in- and Rijkevorsal, Belgium, from Van Lear Corp. has promoted Jason able energy developer, has a partner- eDiscovery, digital forensics, cyber- terior design company, has re- Soest Coldstores, Netherlands, a Cardew as senior vice president and ship with an a liate of Hunt Compa- security, managed services and liti- branded as Pophouse as it looks to company that stores and transfers chief nancial of- nies Inc., El Paso, Texas, companies gation support services, opened diversify business and build from cooled and deep-frozen food prod- cer, replacing in the real estate and infrastructure two new offices in Michigan at its base of Bedrock projects. The ucts. Financial terms of the transac- Je rey Vanneste, market, to nance and develop two 24445 Northwestern Highway, Suite firm has added GM, DTE and Delta tion were not disclosed. Websites: who is retiring af- 20MW renewable energy projects in 208, Southfield, phone: (248) 955- as clients and also signed its first lineagelogistics.com, vansoest-be. ter more than 20 Michigan’s Upper Peninsula.  e 9200, and 678 Front Avenue NW, product design deal with Acoufelt eu years with the wind projects will be comprised of Suite 135, Grand Rapids, phone: LLC, Clawson, an acoustical con-  Best Life Brands LLC, Bloom eld company. four turbines each on two separate (616) 251-1212. Website: avalonle- sultant. Websites: dpopculture. Hills, a holding company, acquired Cardew, who sites. Websites: circlepowerco.com, gal.com com, acoufelt.com Blue Moon Estate Sales, Raleigh, has been with the huntcompanies.com N.C., an estate sales franchise. Web- Southfield-based MERGERS & sites: bestlifebrands.com, blue- Cardew automotive seat- ACQUISITIONS moonestatesales.com ing supplier near- Advertising Section ly 30 years, starts his new role Nov. 1,  Lineage Logistics LLC, Novi, a Submit Deals & Details items to according to a news release. Van- temperature-controlled warehous- [email protected] neste’s last day is Oct. 31, but he will continue in an advisory role through PEOPLE February. “I would like to thank Je for his CALENDAR leadership, dedication and commit- ON THE MOVE ment to Lear. He played a crucial role in the development and execution of To place your listing, visit www.crainsdetroit.com/people-on- fundamental business strategies for THURSDAY, OCT. 10 practice leader Tom Alongi and in- the company …” President and CEO the-move or for more information, please call Debora Stein at dustry thought leaders will discuss the Ray Scott said in the release. “I also (917) 226-5470 or email [email protected]. Great Lakes Digital Transformation changing landscape of the manufac- want to congratulate Jason, who Summit. 8 a.m.-5 p.m. WIT.  e turing space and how manufacturers brings deep knowledge of our com- speakers will include representatives will handle disruption. Detroit Athlet- pany’s global nances and strategy.” ACCOUNTING NONPROFIT from Greenpath Financial, Secure-24 ic Club. Free. Pre-registration is re- Vanneste, who also spent time in and Stant and keynote speaker Joe quired. Contact: Jessica Labut, email: the C suite at South eld-based IAC Chung of Amazon Web Services. Also a [email protected]; phone: (586) Group, became permanent CFO of Echelbarger Himebaugh The Children’s Foundation panel of tri-county CIOs comprised of 843-2507. Lear in 2012 when he took over for Tamm & Co., PC Phil Bertolini from Oakland County, Cardew, who had been in the posi- The Children’s Foundation Jako Van Blerk from Macomb County Women Who Fund Forum. 11 a.m.-4 tion on an interim basis. Cardew, David G. announced that Brian Calka of Echelbarger, CPA, and Carlos Perez from Wayne County p.m. Oct. 24. ACG Detroit Women’s Fo- who joined the company in 1992, DTE Energy and Donnell White CFF, CGMA has been will discuss the topic of “Digital Inno- rum and University of Michigan Cen- spent the past seven years as vice of TCF Bank have joined the elected chair of the vation: Connecting Citizens to the ter for Venture Capital & Private Equity president of nance in its seating and nonpro t organization as County.” Troy Marriott. $129. Contact: Finance, Ross School of Business. Mary e-systems businesses. He completed board of directors for members of the Board Erin Adair-Guy, email: eguy@witinc. Tolan, founder and managing partner his undergraduate and MBA studies the Michigan of Trustees. The com; phone: (800) 257-1490. of Chicago Paci c Founders, provider at Michigan State University. Association of Foundation is the of health care management services, Certi ed Public Accountants. state’s largest funder FRIDAY, OCT. 11 opens the forum with a perspective on Ann Arbor Symphony Echelbarger is a shareholder and dedicated solely to investing in health care and industry Orchestra names new the managing partner at opportunities.  e program includes advancing the health 2019 Entrepreneur & Small Busi- executive director Echelbarger Himebaugh Tamm ness Conference: Power Up Your lunch and features panels on “ e Rise  e Ann Arbor Symphony Orches- and wellness of & Co., PC of Grand Rapids, Calka Business. 8:30 a.m.-3 p.m. Oct. 11.  e of Investors Supporting Health Innova- tra has promoted its director of mar- children in Michigan. where he is responsible for the National Entrepreneurs Association. tors” and “ e Spectrum of Deal keting and com- To date, the Foundation has vision and direction of the rm.  e program will focus on ways to Sourcing and Post-Deal Governance.” munications to granted over $54 million to UM Golf Course Clubhouse, Ann Ar- With more than 19,000 leverage relationships, nances and executive director. more than 70 partners across the marketing to accelerate growth bor. $95. Contact: Mary Nickson, Tyler Rand, 28, members, the MICPA is the state. through tech.  e event will include: email: [email protected]; phone: will succeed Mary leading statewide professional Calka, the director of renewable keynote speakers, breakout sessions, (734) 615-4424. Ste ek Blaske, organization dedicated to energy solutions at DTE Energy, Google training, entrepreneur awards who plans to re- promoting and enhancing the with responsibility of exhibitors, breakfast and lunch. Speak- Forbes Under 30 Summit. Oct. 27- tire in December value of the CPA profession. ers include: Tommey Walker, owner 30. Forbes.  e summit includes: a pri- after 25 years with MIGreenPower, brings and creator of Detroit Vs. Everybody vate music festival, speakers, investor the nonpro t. nance, corporate and Paul Glantz, founder and chair- speed-pitching, industry-focused eld His role is ef- strategy and FINANCIAL SERVICES man of Emagine Entertainment. Mike trips, a pub crawl, a food festival and Rand fective Jan. 1, ac- operational Ilitch School of Business. $125. Con- community service. Masonic Temple. cording to a news knowledge to the tact: ZaLonya Allen, email: support- $595. Contact: Lexi Driscoll, email: release. Stout evolving board. [email protected]; [email protected] “After a months-long search with phone: (248) 491-3146. extensive input from sta , board Mark Abbott has White, the senior vice White Your Company’s Crisis: What You members, musicians, and community joined Stout as a president, chief Need to Know Now. 8-11:30 a.m. Nov. members, the board has overwhelm- Director in the diversity of cer and director of UPCOMING EVENTS strategic partnerships at TCF 12. Detroit Regional Chamber. Pro- ingly endorsed Tyler’s appointment to Investment Banking gram will include advice from human this position,” Geo Barnes, president Bank, brings vast leadership Lunch & Learn: Stay on the Path to Group. He brings Success with Sta­ Succession resources, legal and public relations of Ann Arbor Symphony Orchestra’s expertise and diverse strategies. extensive experience Planning. 11:30 a.m.-1 p.m. Oct. 22. experts to prepare for a crisis.  ree ex- board of directors, said in the release. providing M&A Michigan Manufacturing Technology amples of crises will be covered at this “Tyler has revitalized our marketing advisory to private equity rms, Center. Event will discuss the need for event: de-escalating disasters, protect- e orts and has brought a sophisticat- private businesses and public e ective succession planning through- ing an organization’s image and solu- ed level of musical knowledge to ev- companies in the diversi ed NEW HIRE? out an organization to sustain stability tions for cybersecurity crises. Compli- erything the A²SO does. He is com- and growth. Topics will include: Docu- mentary breakfast will be provided. mitted to the A²SO’s continued industrials, distribution, and PROMOTION? BOARD APPOINTMENT? menting job descriptions, executing  e Henry Hotel, Dearborn. $75 mem- musical excellence and extensive ed- automotive sectors, among e ective performance reviews, imple- bers; $95 nonmembers. Contact: An- ucational outreach in the communi- others. Before joining Stout, menting a capability database, con- drea Rayburn, email: arayburn@de- t y .” Abbott was with JSJ ducting a training needs analysis and troitchamber.com; phone: (313) In his new role, Rand will help over- Corporation where he led the following a nine-block leadership 596-0340. see the ongoing search for the strategy and investment team competency model. Michigan Manu- nonpro t’s next music director, the re- and earlier, he was with Piper facturing Technology Center, Plym- To submit calendar items visit lease said. Music director and conduc- Jaffray & Co. He will work out of outh. $20. Contact:  eresa Payne, crainsdetroit.com and click “Events” tor Arie Lipsky left his post in June due Stout locations in Detroit and email: [email protected]; phone: near the top of the home page. en, to health issues after serving in the po- Grand Rapids. (888) 414-6682. click “Submit Your Events” from the sition for nearly two decades. drop-down menu that will appear. Rand joined the organization as UHY LLP Annual Manufacturing Fill out the submission form, then marketing and public relations manag- Outlook: Lean into Change and In- click “Submit event” at the bottom of er in September 2018. He assumed the novation. 7:30-11:30 a.m. Oct. 23. the page. More Calendar items can role of director of marketing and com- UHY LLP. National manufacturing be found at crainsdetroit.com/events. munications in May. Crain’s People on the Move showcases industry achievers and their companies to the Detroit business community. Contact: Debora Stein at [email protected] October 7, 2019 CRAIN’S DETROIT BUSINESS Page 1

CRAIN’S DETROIT BUSINESS // OCTO BER 7, 2019 25

U Prep schools ‘pause’ pay Advertising Section raises aer Whitmer’s CLASSIFIEDS charter school funding veto To place your listing, contact Suzanne Janik at 313-446-0455 or email [email protected] www.crainsdetroit.com/classi eds By Chad Livengood Several of the Democratic gover- [email protected] nor’s spending vetoes appeared to be University Prep Schools is halting aimed at Republican constituencies, 3 percent pay raises the Detroit char- including for-prot and not-for-prof- ter school system planned to give its it charter school operators. Universi- 380 teachers at the end of this month ty Prep Schools is run by a not-for- after Gov. Gretchen Whitmer’s line- prot operator and was founded by JOB FRONT item vetoed a $240-per-student in- Doug Ross, one of Whitmer’s senior POSITIONS AVAILABLE ADMINISTRATIVE crease in state aid for charter schools. advisers. “ ey’re on pause until we gure “Like any line-item, we have an Application Development Manager (Multiple Positions) EXECUTIVE ASSISTANT this out,” University Prep CEO Mark opportunity to negotiate things back (Accenture LLP; Detroit, MI): Manage project execution to ensure adherence to The right candidate would possess ex- Ornstein told Crain’s. into the budget if the Legislature budget, schedule, and scope. Must have willingness and ability to travel domesti- cellent computer skills, be efficient With nearly 5,000 students en- avails themselves of that opportuni- cally approximately 80% of the time to meet client needs. with Excel and Word. Must also be rolled at its eight schools in Detroit, ty,” Whitmer said Tuesday when For complete job description, list of requirements, and very organized and strong work ethic. University Prep stands to lose about asked at a press conference about to apply, go to: www.accenture.com/us-en/careers (Job# 00758440). Equal Op- The position will report directly to the $1.2 million in additional state aid charter school funding veto. portunity Employer – Minorities/Women/Vets/Disabled CEO/President. from Whitmer’s veto of a $35 million Ornstein said the governor’s veto EXCELLENT BENEFIT PACKAGE line in the $15 billion School Aid of only additional aid for charter Business & Integration Architecture Associate Manager Please submit resume to: Fund budget designated for in- school students sends a message that (Multiple Positions) (Accenture LLP; Detroit, MI): Define, analyze, solve, Human Resources creased aid to public charter schools. “they’re not as valued as a traditional and document the business requirements and processes for Accenture or 5750 New King Dr. Suite 200 “ at’s huge,” Ornstein said of the public school student.” our clients’ program/project specifications and objectives. Must have willing- Troy, MI 48098 cut. “We had planned to give (teach- “You are literally using kids as ness and ability to travel domestically approximately 80% of the time to meet Fax: (248) 250-54704 client needs. For complete job description, list of requirements, and to ap- ers) the 3 percent raise on October pawns here,” Ornstein said. “Kids E-Mail: 30.” don’t care if they’re in charter or tra- ply, go to: www.accenture.com/us-en/careers (Job# 00760569). Equal Opportunity Employer – Minorities/Women/Vets/Disabled. [email protected] On Sept. 30, Whitmer made 147 ditional public — and they probably line-item vetoes amounting to $947 don’t even know.” million because of major disagree- Business & Integration Architecture Manager (Multiple Positions) ments over spending with the Re- Chad Livengood: (313) 446-1654 (Accenture LLP; Detroit, MI): Define, analyze, solve, and document the busi- publican-controlled Legislature. Twitter: @ChadLivengood ness requirements and processes for Accenture or our clients’ program/project specifications and objectives. Must have willingness and ability to travel domes- Visit our WEBSITE: tically approximately 80% of the time to meet client needs. But it might take a while. For complete job description, list of requirements, and to apply, www.crainsdetroit.com/ PRESSURE Payments will cease flowing this go to: www.accenture.com/us-en/careers (Job# 00758444). FROM PAGE 1 month from the Treasury Depart- Equal Opportunity Employer – Minoritie /Women/ Vets/D isabled classi eds ment to county sheriff’s depart- s “What’s the guarantee this won’t ments that patrol secondary roads POSITIONS AVAILABLE for more classi eds happen again? And the response and house low-risk offenders in was: ‘ ere isn’t one,’” said Melissa county jails as well as subsidies for advertisements, Roy, a Detroit-based public aairs nursing homes, rural hospitals, iso- NOW HIRING : INVESTMENT REAL ESTATE BROKERS consultant and registered lobbyist. lated public schools and medical Local, established investment real estate brokerage firm is now hiring new agents. Previous sales experience required. On average our agents earn contact Suzanne Janik at Roy was not present at the meeting of clinics on Beaver, Drummond and well into the six figures. Existing brokers may qualify for a substantial sign- multiclient lobbyists but said she Mackinac islands. ing bonus. We offer some of the most competitive split structures in the in- 313-446-0455 spoke with one of Whitmer’s policy And charter schools won’t get the dustry. To discuss further contact us: [email protected] advisers after the $1 million grant she same $240-per-pupil increase as lobbied lawmakers for got axed. traditional public schools thanks to Roy represents the Autism Alliance another Whitmer veto, causing of Michigan, which since 2014 has re- schools to halt planned pay in- ceived an annual state grant for its creases and trim other expenses autism navigators program, a hotline two months into the school year. for adults with autism and families of The veteran lobbyists summoned autistic children who need help navi- to the governor’s office said the LOOKING FOR THE NEXT MEMBER OF YOUR TEAM? gating government programs, health pain of Whitmer’s vetoes may need insurance and public education sys- to be felt outside the confines of the tems. Capitol complex before the gover- e autism program was not in nor and legislative leaders restart Whitmer’s budget plan introduced in budget talks. March, but her sta encouraged the Meanwhile, groups like the Au- Crain’s readers Autism Alliance and its board mem- tism Alliance are trying to figure out bers to lobby for the money “and if a path forward without the state aid the Legislature included it, the ad- they’ve come to rely on. are 75% more ministration would come to the table They are now emblematic of this as well,” Roy said. budget battle as Republicans have Despite laying waste to budget framed Whitmer as an unfaithful likely to be items Republicans and their out- ally for speaking at the group’s an- state constituents hold dear, there’s nual gala in April and then gutting no guarantee the GOP is coming one-fourth of its funding with a college back to the table to make amends. stroke of a pen in September. Senate Majority Leader Mike But the Autism Alliance’s lobby- * Shirkey and House Speaker Lee ist still can’t believe they’ve be- graduates Chateld essentially want Whitmer come entangled in a deeper stale- to publicly apologize for the vetoes mate between Whitmer and the and let the governor twist in the wind Legislature over road funding, taxa- and defend her cuts. tion and how big and expansive Whitmer’s decision to torpedo state government should be. parts of the $60 billion state budget “At this point, a $1 million Autism with the nearly $1 billion in line-item Alliance navigator isn’t the biggest Connect with Suzanne vetoes and $625 million of inner-de- leverage in the world,” Roy said. Janik at [email protected] partmental transfers has changed the “It’s not a program that belongs or for all your recruiting needs. dynamics of the already fragile rela- even fits in the negotiating table on tions of Michigan’s politically divided these larger budget issues. ... It’s leaders. just baffling to us as to why we’re *The Media Audit e governor’s vetoes were broadly here right now. There’s no logic as designed to inict pain on Republi- to why we’re in the position that cans back home and eventually force we’re in.” them back to the negotiating table so the governor can get her non-trans- Chad Livengood: (313) 446-1654 Suzanne Janik: 313-446-0455 [email protected] portation priorities funded. Twitter: @ChadLivengood 26 CRAIN’S DETROIT BUSINESS // OCTO BER 7, 2019

strategy that its CEO told Crain’s will local market as of June, down from BANKS How the banks rank continue as it looks for more growth. 51 in 2014 and 58 in 2009. e num- FROM PAGE 3 A comparison of the top banks in Michigan over the past decade. Chemical and TCF nalized a $3.6 bil- ber of branches in the area has de- lion all-stock merger on Aug. 1, creat- clined steadily, too, as how custom- e same pattern of more deposits Top 10 banks in 2009 ing a bank with $47 billion in assets ers do their banking has changed. but less market share also applies to Detroit area and $35 billion in deposits, the ere are 945 branches throughout Comerica, which is the second-largest Bank Deposits market share 27th-largest nationwide. the designated market area, com- bank in the market where it was once Work is underway on its new 20-sto- pared with 1,083 in 2014 and 1,195 headquartered. e Dallas-based Comerica $21.4 billion 22.4 percent ry headquarters at the corner of Wood- in 2009, according to the FDIC data. bank has $26 billion in deposits in met- Bank of America $20.5 billion 21.5 percent ward Avenue and Elizabeth Street in Consolidation and the digitiza- ro Detroit, representing 18.6 percent of downtown Detroit. tion of the nancial industry has led the market. at’s down 3.1 percentage JPMorgan $14.8 billion 15.5 percent to the closure of brick-and-mortar points from ve years ago when it had National City $8.5 billion 9 percent Other market locations across the country. Ex- $22.8 billion in deposits. In 2006, a year perts say that consumers in smaller, Flagstar $6.2 billion 6.5 percent share moves prior to its HQ move, Comerica had underserved cities might be nega- just under 23 percent of market share, RBS Citizens $4.8 billion 5 percent While JPMorgan Chase and Comer- tively impacted by the trend, but almost even with LaSalle Bank, which ica lost local market share, the larger markets still have plenty of Fi‡h Third $4.2 billion 4.5 percent was acquired by Bank of America. third-largest bank in the market by de- options and generally don’t feel a “When you have a dominant posi- Huntington $2.9 billion 3 percent posits, Bank of America, gained deciency in service. tion, it can be a little more challenging ground. It grew from $11.4 billion in Comerica has 130 branches in the TCF $1.3 billion 1.3 percent to grow with having only one way to go deposits and 10.8 percent of market local market, down from 153 ve but down,” Michael Moran, senior Citizens $1.2 billion 1.28 percent share in 2014 to $20.6 billion and 14.7 years ago, while JPMorgan Chase consultant with ProBank Austin, said. percent of market share as of June. It’s has 130, down from 171 in the same “ ey’re still gaining deposits, but still several paces behind a peak of 21.5 span. Moran said the shrinking foot- they’re losing market share — typically percent in 2009, when it had essentially prints could be costing them some attributable to competitive pressures the same amount of deposits as it does business, but branches are not as Top 10 banks in 2019 of local banks.” today. important as they once were. As with other large markets through- Detroit area Troy-based Flagstar Bank also grew Ten years ago, closing a location out the country, there’s been a urry of Bank Deposits market share its market share, to 7.3 percent with often meant losing customers, but M&A activity. Superior National Bank JPMorgan Chase $36.6 billion 26 percent $10.2 billion in deposits. Five years ago now, banks can retain most clients acquired Main Street Bank last month it had 4.9 percent of the market. through digital channels. for $42 million, and Level One ac- Comerica $26 billion 18.6 percent Flagstar is the fth-largest bank in “A branch now is someone’s quired Ann Arbor State Bank for $67.8 Bank of America $20.6 billion 14.7 percent the market, one place behind Pitts- phone or computer screen,” Moran million in August. burgh-based PNC Financial Services, said. e most high-prole deal — TCF’s PNC $11.2 billion 7.9 percent whose market share dropped from 10 As big banks pour money into merger with Chemical Bank — is ex- Flagstar $10.2 billion 7.3 percent percent in 2014 to 8 percent as of June. technology, community banks with pected to create a formidable player in Coming in at number six is Colum- far less capital nd themselves at a the market. Chemical’s $5 billion in de- Huntington $8.3 billion 5.9 percent bus-based Huntington Bank with 5.9 disadvantage. Joining forces with posits as of June, combined with TCF’s TCF/Chemical $7.7 billion 5.6 percent percent of the market share, a jump of other rms and pooling resources is $2.7 billion, would propel the com- 1.5 percentage points from ve years often the only way to stay competi- bined bank to the seventh-largest in Fi‡h Third $6.1 billion 4.4 percent ago. TCF rounds out the top seven. tive. metro Detroit with 5.6 percent market Citizens $5.5 billion 3.9 percent “ e face of banking is changing,” share. e rm has 8 percent market Fewer banks, Herndon said. share statewide. CIBC $1.3 billion 0.9 percent fewer branches e TCF of today was largely built Source: Federal Deposit Insurance Corp. Kurt Nagl: (313) 446-0337 through well-timed M&A deals — a ere are 43 banks operating in the Twitter: @kurt_nagl

NO-FAULT FROM PAGE 3

e two public acts Whitmer signed May 30 at the Mackinac Policy Conference in May restored the right of medical providers to sue without involving the patient starting June 11. But the legal battles are still clog- ging up the courts. State Farm, the state’s largest no- fault carrier, alone has 2,000 pending lawsuits across the state that are sub- ject to the Covenant decision, said The two public acts Whitmer signed May 30 at the Mackinac Policy Conference in Paul Hudson, an attorney for State May restored the right of medical providers to sue without involving the patient Farm and head of the appeals group starting June 11. at Miller, Caneld, Paddock and Stone PLC. “ e whole issue of assignments medical bills,” Hudson said. “Providers have to overcome an- was a creation of State Farm,” Green During Green’s oral arguments, ti-assignment provisions to have a said during oral arguments before Justice Megan Cavanagh ques- viable cause of action,” Hudson said the high court. “... ey made argu- tioned whether allowing injured during oral arguments Tuesday be- ments to this court knowing that this motorists to assign their claims to fore the Michigan Supreme Court. is what their policy was. ey didn’t any medical providers creates “in- Shah’s lawsuit against State Farm say, ‘Well, you can get assignments, creased costs to having to defend challenges a clause in the insurer’s but we’re not going to allow it.’” multiple provider suits in multiple contracts with motorists that prohib- In arguing that State Farm’s con- jurisdictions.” ited them from assigning their right tract wrongly denies the rights of “That is a cost to the insurance to sue to medical providers. Shah’s patients to give their doctor company to retain counsel and de- “All we ask the court to do is to en- the right to sue, Green cited a fend in multiple venues,” Cavanagh force State Farm’s assignment clause 139-year-old Michigan Supreme said. as written — and as written, it bars Court ruling over a property insur- Green noted multiple medical the plaintis’ assignments here,” ance policy involving a livery stable provider lawsuits can be consoli- Hudson told the justices. that burned down. In that case, the dated in one court docket. During the 2017 court ght in the livery stable’s owner had assigned “The other way to avoid the issue, Covenant case, State Farm’s attorneys its insurance policy to someone they frankly, is to pay the claim,” said had proposed a “solution” that in- owed a debt to make a claim against Green, whose client filed at least 30 jured drivers be allowed to assign the insurance company. lawsuits in Oakland County in 2018 their rst-party lawsuit rights to their e anti-assignment clauses in against 14 different auto insurance doctors without disclosing that the in- State Farm’s no-fault plans sought to companies. “... The objection seems surer’s policies has prohibited assign- “limit State Farm’s relationship to to be that they’re being called out to ment of rights since 2010, said Shah’s just our insured” motorist in an eort do what they were contracted to do attorney, Jonathan A. Green of Green to prevent multiple medical provid- — to pay the claim.” & Green PLLC in Farmington Hills. ers from ling multiple lawsuits over “If they’re not paying the claim, Shah’s lawsuit asks the Michigan the same injured driver’s medical they get sued,” Green added. Supreme Court to declare State care, Hudson said. Farm’s anti-assignment clause ille- “And that means, our insured Chad Livengood: (313) 446-1654 gal. won’t be able to piecemeal assigned Twitter: @ChadLivengood CRAIN’S DETROIT BUSINESS // OCTOBER 7, 2019 27

A pair of new complaints  led Dedvukaj and Fetahu, declined com- GJONAJ Sept. 18 and Sept. 30 in Oakland ment when contacted earlier this FROM PAGE 3 County Circuit Court by Deda Ded- month about Dedvukaj’s lawsuit. An vukaj and Kreshnik Fetahu, respec- email was sent to her Tuesday morn-  Whether Gjonaj was “preparing to tively, allege that he bilked them of a ing about the Fetahu lawsuit. and/or already left the country to combined $700,000. Jerome Morgan alleges in a lawsuit avoid prosecution.” Deda Dedvukaj claims he loaned  led in Oakland County in August  Whether he “fraudulently altered Gjonaj and two related businesses that he loaned Gjonaj $1.5 million to ... (real estate) purchase documents (Imperium Investments LLC and Im- buy the Monroe Center retail strip in order to ‘sell,’ really defraud, un- perium Group LLC) $500,000 to be mall housing a Staples o ce supply suspecting investors, interests in repaid by Aug. 7. Deda Dedvukaj says store, a Dunham’s sporting goods those and other properties” that Gjo- in the complaint that he “was not store and a Hobby Lobby. naj did not own or even exist. represented by counsel in the trans- In another complaint, Gjonaj is al-  Whether he, as described in the action or in memorializing it” and leged to have secured a $2.475 mil- lawsuit, “admitted to his crimes” to “expected that Gjonaj prepared the lion loan from Ded Dedvukaj in ex- Masakowski in late June when con- document comporting with applica- change for membership interests in fronted about them. ble legal standards, relying upon De-  ve limited liability companies, in- e complaint response says that KIRK PINHO/CRAIN’S DETROIT BUSINESS fendant Gjonaj’s years of extensive cluding two — Manchester Wilshire Gjonaj’s wife, Rose, a listed defen- FedEx noti cations are a xed to the glass doors of the o ces of Imperium. experience in real estate matters.” LLC and JVD I LLC — in which nei- dant in the August civil lawsuit along e money was to be invested in real ther Gjonaj or his companies had a with a slew of limited-liability com- case that’s before Judge James Alex- Masakowski did in Macomb, Gene- estate. membership interest, according to panies, has no knowledge of her hus- ander. see and Montcalm counties over the Fetahu in his Sept. 30 lawsuit says court documents. band’s business dealings and was not “ is kind of evasive responding to course of the last few years. e law- that in June, Gjonaj approached him It’s not known whether Ded Ded- a party to any loans. (A former busi- substantive allegations is not going to suit alleges Viktor Gjonaj doctored about a real estate investment and vukaj and Deda Dedvukaj are relat- ness partner was dismissed from the play well in front of Judge Alexander. purchase agreements to make it ap- said that he could purchase a 50 per- ed. complaint last month.) He does not appreciate that, in my pear to investors as if they were buy- cent ownership stake in 71.1 acres of Still another lawsuit,  led by con- Rose Gjonaj also  led a response experience. You better have a good ing ownership interests in properties vacant land on Baldwin Road in Lake tractor Dan Ivanovic, claims Gjonaj Tuesday in which she says she has explanation for why something is or around the state, when in fact they Orion for $200,000. e other 50 per- hasn’t paid for $197,000 worth of “no participation or knowledge” of isn’t true,” said Kenneth Neuman, were already owned by the plainti s, cent would be owned by Imperium work on a $2.25 million mansion that her husband’s business a airs and managing partner of Birming- Krstovski and Masakowski. Group, according to the complaint. was being built for him in Washing- that she didn’t accept money or agree ham-based law  rm Altior Law. He Imperium, which Gjonaj founded Gjonaj allegedly then told Fetahu to ton Township. Krstovski’s and Masa- to repay anyone. She also says she specializes in commercial and real in 2017, collapsed after Gjonaj transfer the $200,000 to Title Plus Ti- kowski’s lawsuit claims that Gjonaj “never received any loans” as part of estate litigation. stopped showing up to work and tle Services LLC, which the com- purchased the property on which it is Viktor Gjonaj’s business dealings. “In my opinion, it’s intellectually wasn’t heard from for weeks, a for- plaint calls “merely a shell limited li- being built with Masakowski’s mon- She is represented by Mount Clem- dishonest to claim lack of knowledge mer employee told Crain’s last ability company formed by Gjonaj ey. ens-based Fischer, Garon and Hoyu- on speci c allegations against the de- month. and owned and/or controlled by Gjo- Kelly Rossman-McKinney, com- mpa PLLC. Emails were sent to her fendant,” Neuman said. “ e defen- n a j.” munications director for Attorney and her attorneys Tuesday night and dant does know whether they altered New lawsuits  led e Fetahu complaint also says General Dana Nessel, said the o ce Wednesday morning. or manipulated or fabricated docu- No fewer than six lawsuits have Gjonaj “did not intend to return” the continues to look into the Gjonaj Emails were also sent to St. Pierre ments or whether there was a Ponzi been  led against Gjonaj in recent $200,000 and “did not intend to go case but has not opened an investiga- as well as an attorney from South- scheme.” weeks in Oakland and Macomb forward” with the purchase of the tion.  eld-based law  rm Ja e Raitt Heuer e Aug. 26 complaint centers counties alleging he owes at least Baldwin Road land. & Weiss PC, which is representing around a series of Michigan real es- nearly $5 million to a variety of inves- Julia Blakeslee, the Bloom eld Kirk Pinho: (313) 446-0412 Krstovski and Masakowski in the tate deals that Gjonaj, Krstovski and tors and contractors. Hills attorney representing Deda Twitter: @kirkpinhoCDB

HEAR TOP HEALTH EXECS AT CRAIN’S MONDAY OCT 28 8:30AM - 1:30 PM The Henry, Dearborn

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RESERVED TABLE OF 10: $2,000 FEATURED PANEL: YOUNG PROFESSIONAL TICKET: $129.50 Denise Brooks-Williams Available to attendees under the age of 35 SVP and CEO, Henry Ford Health System, North Market Dennis Reese CEO, Physicians Health Plan REGISTER at crainsdetroit.com/hcsummit Shannon Striebich President, St. Joseph Mercy Oakland Nancy Susick President, Beaumont Hospital, Royal Oak

TITLE SPONSOR BREAKOUT SESSION SPONSOR MAJOR SPONSOR PRINT SPONSOR PROMOTIONAL PARTNER 28 CRAIN’S DETROIT BUSINESS // OCTO BER 7, 2019

cluded Beaumont, McLaren, Henry PROTON Ford Health System, Ascension St. FROM PAGE 1 John Providence Health System and the University of Michigan. One of its chief advantages over A consortium of hospitals, led by X-rays, or photon beams, which pass Henry Ford and the UM Health Sys- through a patient, is that proton beams tem, even considered building a $300 deliver targeted radiation to the tumor million carbon ion therapy cancer and then stop without passing through center. Plans were tabled during the other tissue. 2008-2009 recession. In 2008, McLaren was one of the rst In July 2017, Michigan’s rst proton health systems in Michigan to indicate beam therapy center opened at Beau- an interest in building a proton beam mont Hospital. So far, 350 patients therapy center. In 2010, McLaren pur- have been treated at Beaumont’s sin- chased the Russian-made Radiance gle-room center. e rst year, the 330 synchrotron particle accelerator center treated more than 107 pa- machine that creates the protons. tients, far exceeding its 40-patient e high-energy protons are then projection, said Craig Stevens, M.D., directed with powerful magnets along Beaumont’s chairman of radiation a long metal tube to create a “pencil oncology. beam” scan that increases the accura- “Proton therapy oers targeted cy and eectiveness of the beam deliv- cancer treatments with fewer side ef- ered to the patient. fects than conventional radiation. Nationally, some 28 centers are op- is is especially true for patients erational in the U.S., including a sin- with brain tumors, head and neck gle-room proton center at Beaumont cancers, and left sided breast cancers. Hospital in Royal Oak that uses a cyclo- In addition, we have had numerous tron particle accelerator. ere are patients travel from other states to about four under development at costs seek treatment and consult with our that range from $30 million to more experts at Beaumont’s Proton era- than $100 million, according to the Na- MCLAREN HEALTHCARE CORP. py Center,” Stevens said in a state- tional Association for Proton erapy. Dr. Hesham Gayar chats with David Wood, an assistant post commander with the Michigan State Police in Marshall, who was ment to Crain’s. After completing nal testing and the rst patient treated at the proton center on Dec. 17. Beaumont uses the ProteusOne calibrations of the massive synchro- proton beam therapy machine, a cy- tron, Chad Grant, president of 458-bed the third year, 250 to 300 patients. use for most tumors. the beam. Doctors also use a cone clotron particle accelerator. It was de- McLaren Regional Medical Center in “We are really anticipating this tak- In a 2018 report, the Medicare Pay- beam CT imaging system to control veloped by Ion Beam Applications Flint, said proton center doctors, phys- ing o once we communicate to physi- ment Advisory Commission, or Med- the location of the beam to the milli- S.A. of Belgium. icists and engineers decided last fall to cians (and the public) that we’re actu- PAC, said Medicare’s payment rates meter. quietly open the facility in mid-De- ally doing this,” Grant said. are substantially higher for proton Wood said he wasn’t nervous when Research eorts cember. On an average day this year, Grant beam therapy than other types of ra- he arrived with his wife, Marsha, as Without public notice, McLaren said, the center sees about 20 patients diation therapy. the rst patient to be treated. Most vis- While Michigan’s interest in proton proton center oncologists began evalu- per day with an average treatment time MedPAC noted from 2010 to 2016, its were quick and non-eventful. How- therapy only started in 2008, proton ating potential patients to treat using a of 30 minutes. Once all three rooms are spending and volume for proton ever, one time he had to wait for 10 therapy has been used for treating pa- short list of cancer types, including operational, including the pediatric beam therapy in fee-for-service minutes while an engineer made a tients since the 1970s. In 1990, the prostate, kidney, head and neck, pan- room possibly later in 2021, the center Medicare grew rapidly, driven by a small adjustment in the movement of Loma Linda University Proton era- creatic, basal skull and chondrosarco- is expected to cycle through 60 to 70 sharp increase in the number of pro- the CT scanner. py Treatment Center opened in Cali- ma. patients per day. ton beam centers and Medicare’s rel- “I went in for an MRI beforehand fornia. Over the years, new technolo- “We wanted to make sure every- McLaren is projecting revenue for atively broad coverage of this treat- where they gave me the tattoos (to in- gies have lowered operational costs thing was ready” and that there would 2019 of $3 million, doubling in 2020 to ment. During that period, spending dicate where the beams will be direct- and improved eectiveness, but little be no false starts, Grant said. “We had $6 million and hitting the $10 million rose from $47 million to $115 million. ed),” Wood said. “I wasn’t nervous, comparative research has been per- three patients the rst day, but really mark in 2021. Despite Michigan now having two just excited about being the rst pa- formed, Gayar said. we started o intentionally slow, and it Since July, McLaren’s proton center proton therapy centers, Gayar said tient. I just go with the ow of things. I “We also have the responsibility to has been ramping up (to full schedule has been treating a wide variety of can- projections are that proton therapy is see too much happening in my job (as help de ne best utilization of proton for one room) since July.” cers, Gayar said. ey include solid tu- a low-volume option that is expected a state trooper) to be worried about it.” therapy,” Gayar said. “To help show David Wood, an assistant post com- mors of the head, neck and skull base, to grow to 3 percent to 5 percent of all Wood said he entered the treatment proof of clinical eectiveness, we are mander with the Michigan State Police breast, lung, bladder, brain, central radiation oncology treatments over room and lay down on the bed as opening randomized clinical trials for in Marshall, was the rst patient treat- nervous system, liver, pancreas, pros- the next 10 to 15 years. Right now pro- technicians lined him with the lasers. multiple body sites including lung ed at the proton center on Dec. 17. tate, spine and chest wall, and some ton therapy is used in less than 1 per- “(Dr. Gayar) said, ‘You are about to cancer, pancreatic cancer, prostate After nine weeks and 45, 30-minute pediatric, gynecological and gastroin- cent of radiation treatments, he said. make history.’ I said, ‘No, this is your cancer and others.” rounds of proton radiation therapy for testinal cancers. “At McLaren, we use proton thera- day. It’s a piece of cake.’ I felt nothing, Since the center opened, McLaren advanced prostate cancer, Wood said While the majority of patients so far py only when there is clinical advan- got o the table, and they gave me a has been collecting data on patients he feels great some seven months after have come from Michigan through the tage over X-rays,” Gayar said. tour of the building. e place was just treated and is participating in a num- nishing treatment. McLaren’s Karmanos Cancer Institute Gayar said McLaren checks with humming with excitement about the ber of research projects, including “I am amazed how easy it has been. network, Gayar said, about 40 percent health insurers before therapy begins rst patient going in.” one that will test the use of proton I will be ‘in remission’ the rest of my heard about it by word of mouth and to get coverage approved. He said the While Wood lay on the treatment beams to conduct high energy com- life. I will never get an all-clear because called for information. center works with every patient re- bed, a robotic patient-positioning sys- puted tomography scans. CT scan- it is a hormonal-driven cancer,” said “(For) about 20 percent of those pa- gardless of insurance and ability to tem moved him to the correct pro- ners now use X-ray images, but stud- Wood, a state trooper for more than 30 tients, proton was the only option,” said pay to ensure they have the care they grammed position to allow the proton ies in Europe show that proton beams years who plans to retire in April. Gayar. “When we have a candidate, we need. beams to be directed within a milli- could be more accurate. “Physically, I am feeling good. Fatigue discuss and agree that the type of tu- “We’ve had good success with meter of the target. e technology Under the Patient Centered Out- is the only issue because of the medi- mor and location” will make the thera- Medicare. And some insurers may allows for 360-degree rotation and un- comes Research Institute, Gayar said cine. It was pretty advanced. ... It was py a good choice. initially deny it, and then you have to limited treatment angles, Gayar said. McLaren will participate in several not metastatic and into bones and Beaumont and McLaren’s radiation appeal,” Gayar said. “We have to pro- “About six weeks in (of the nine- multi-institutional breast and pros- lymph nodes. God took care of it with oncology department, like other health vide a lot of information. Sometimes week treatment) I started to feel more tate cancer trials to compare out- the treatment.” systems, also oers a variety of other they just look at the comparison (be- fatigued. I exercised regularly until comes of proton beam therapy with Like Wood, all 37 other patients Mc- photon-based radiation treatments tween the dierent radiation ap- late January,” Wood said. “Fatigue was traditional photon, or X-ray, radiation Laren has been treating so far have not that include adaptive radiation thera- proaches).” just my body trying to heal. (e radi- treatment. PCORI was established by missed a day of therapy and the data py, image-guided radiation therapy, Gayar said he understands insur- ation was) disposing of the cancer as the Aordable Care Act of 2010. shows the proton beam scanning has high-dose rate brachytherapy and in- ance companies’ reluctance because protein and trying to repair healthy Medicare also will begin a study in hit its mark 100 percent of the time, traoperative radiation therapy — all proton beam treatment is new, but cells. e other good thing was a got 2020 to test a new episode-based pay- said Hesham Gayar, medical director intended to destroy cancer. emerging research is beginning to two nice tan marks on my hips (where ment model for radiation oncology of the McLaren Proton erapy Center. But Gayar said he believes the long- show a range of positive bene ts over the proton beam was directed). It was that could show proton therapy treat- “We are 100 percent accurate. We term costs are lower with proton beam traditional treatments. never painful.” ment, in some cancer cases, to be measured it and validated it. I am very therapy because of fewer treatments more cost-eective than other forms proud of that,” said Gayar, a radiation and lower radiation dosage. He also Patient experience Long road to proton of radiation treatment, Gayar said. oncologist at Karmanos Cancer Insti- believes cure rates are better for some treatments Gayar said some patients with tra- tute at McLaren Flint who treated cancers, including adult brain and spi- When patients like Wood arrive at ditional photon radiation treatment Wood. nal tumors and pediatric cancers. the McLaren Proton Beam Center In Michigan, proton beam therapy can’t complete their treatment be- By the end of the rst year, Grant Many comparative studies are under- they are greeted by nurses at the front — an alternative to traditional radia- cause of side eects. “e patients get projects about 100 patients will have way to prove eectiveness, he said. desk. ey already have been evaluat- tion treatment that precisely targets so sore, cannot swallow food, or they been treated, primarily because only ed by oncologists aliated with Mc- cancer cells and avoids healthy or- have nausea and vomiting that they one room is operational and the inten- Insurance coverage Laren at Karmanos’ 16 cancer centers gans and tissues — goes back to 2008 cannot go on,” he said. “We don’t tion was to go slowly the rst six across Michigan. when the state began to craft rules have that problem with proton beam.” months. Once the second treatment Proton beam therapy still is tough After patients enter the extra large that would allow hospitals to use the room is opened in late spring 2020, 150 to get some insurers to pay for, al- treatment room, they are positioned therapy. Hospitals competing to be Jay Greene: (313) 446-0325 to 200 patients will be treated and by though Medicare in 1997 approved its on the bed that can rotate to position the rst hospital to open a center in- Twitter: @jaybgreene CRAIN’S DETROIT BUSINESS // OCTO BER 7, 2019 29

MARIJUANA FROM PAGE 1

Michigan’s city involvement rate isn’t out of line with Colorado’s, said crainsdetroit.com Josh Hovey, spokesman for the Mich- Editor-in-Chief Keith E. Crain igan Cannabis Industry Association. Publisher KC Crain Around 100 Colorado municipalities Group Publisher Mary Kramer, out of 272 have informed the state (313) 446-0399 or [email protected] they’ll allow recreational pot busi- Associate Publisher Lisa Rudy, nesses, the Associated Press report- (313) 446-6032 or [email protected] ed. Colorado was among the rst two Managing Editor Michael Lee, (313) 446-1630 or [email protected] states to legalize recreational canna- Product Director Kim Waatti, bis. (313) 446-6764 or [email protected] e association isn’t overly con- Digital Portfolio Manager Tim Simpson, cerned, Hovey said, adding that 313-446-6788 or [email protected] while some rural areas tend to opt Creative Director David Kordalski, out, most “population centers” have (216) 771-5169 or [email protected] not. However, he said, opt-outs can Assistant Managing Editor Dawn Riˆenburg, hurt accessibility and encourage (313) 446-5800 or driˆ[email protected] black market sales. And Marijuana News Editor Beth Reeber Valone, (313) 446-5875 or [email protected] Business Daily wrote that local bans Senior editor, Chad Livengood, could impact its yearly sales estimate (313) 446-1654 or [email protected] of $1.4 billion to $1.7 billion once the Special Projects Editor Amy Elliott Bragg, Michigan industry “matures.” (313) 446-1646 or [email protected] “We’re focused on the communi- Design and Copy Editor Beth Jachman, ties that want to welcome these new (313) 446-0356 or [email protected] businesses and see the economic de- Research and Data Editor Sonya Hill, velopment opportunity and tax reve- (313) 446-0402 or [email protected] Newsroom (313) 446-0329, FAX (313) 446-1687, nue opportunity they oer and the TIP LINE (313) 446-6766 jobs,” Hovey said. Detroit’s law department is work- REPORTERS ing on new regulations to allow and Annalise Frank, breaking news. govern recreational marijuana sales, (313) 446-0416 or [email protected] city corporation counsel Lawrence Jay Greene, senior reporter, health care. García said in an emailed statement, (313) 446-0325 or [email protected] Anisa Jibrell, breaking news. while Grand Rapids also expects to ANNALISE FRANK/CRAIN’S DETROIT BUSINESS (313) 446-1612 or [email protected] adopt an ordinance soon, MiBiz re- Gage Cannabis Co. opened its ’rst provisioning center in September in Ferndale. The city has two medical marijuana retailers Kurt Nagl, breaking news. ported. Lansing City Council adopt- and a third is incoming. (313) 446-0337 or [email protected] ed rules allowing recreational mari- Kirk Pinho, real estate. juana businesses last week, start doing business, LARA spokes- cember, before the emergency rules Sept. 12, according to LARA, which is (313) 446-0412 or [email protected] according to the Lansing State Jour- man David Harns said. were released. responsible for administration and Dustin Walsh, senior reporter, economic issues. nal. e emergency rules will remain “What our City Council thought enforcement of the recreational act. (313) 446-6042 or [email protected] In metro Detroit, 21 out of 27 local in eect for six months and can be was, ‘Let’s stay opted out,’” Champ- An interactive Marijuana Regula- Sherri Welch, senior reporter, nonprošts and philanthropy. (313) 446-1694 or [email protected] units of government in Macomb extended for another six months. To ine said. “‘When (the state) gets a tory Agency map shows active licens- County have opted out of recreation- start, those getting licenses will be more ... permanent set of rules, we es. MEMBERSHIPS al, including Sterling Heights and businesses that have already re- can take a look at that and say yes or e medical industry raked in CLASSIC $169/yr. (Can/Mex: $210, International: Clinton Charter Township, according ceived medical licenses. no at that point.’” $69.9 million in sales in the second $340), ENHANCED $399/yr. (Can/Mex: $499, International: $799), PREMIER $1,299/yr. (Can/Mex/ to state data. Forty-one out of 62 Oak- ere is no opt-out deadline, Meanwhile, Ferndale’s City Coun- quarter of 2019 from 11,720 pounds International: $1,299). land County communities opted out Harns said. However, business appli- cil saw the emergency rules and in- of product, according to a quarterly To become a member visit www.crainsdetroit.com/ so far, including Auburn Hills, Bir- cations’ viability will be considered structed its sta to update the city’s report by the Marijuana Regulatory membership or call (877) 824-9374 mingham and Royal Oak; and 26 out based on the date they apply — so if a medical marijuana ordinance to add Agency under LARA. e state re- of 43 Wayne County cities decided to city decides to institute a ban after recreational, Ferndale planning corded $6.1 million in quarterly reve- ADVERTISING at least temporarily prohibit them, Nov. 1 and an enterprise has already manager Justin Lyons said. e Plan- nue. Sales Inquiries (313) 446-6032; FAX (313) 393-0997 including Dearborn and Grosse applied, the state will still issue them ning Commission recommended ap- When it comes to how much reve- Director, Program Content Kristin Bull, (313) 446-1608 or [email protected] Pointe. For comparison, ve com- a license if criteria are met. proval of the amended ordinance nue legal weed will generate, there is Senior Account Executive John Petty munities each opted in for medical As for any confusion: e state Wednesday night with minor chang- no consensus. Senior Account Manager/Political Specialist marijuana in Macomb, Oakland and gave municipalities months to ask es, and it could head to City Council VS Strategies, a Colorado-based Maria Marcantonio Wayne counties. questions about the emergency rules as soon as Oct. 28, Lyons said. cannabis consulting rm hired by the Advertising Sales Lindsey Apostol, Mark Polcyn, “I don’t think it’s unexpected to and form their responses, Harns Two medical provisioning centers Michigan ballot initiative’s organiz- Sharon Mulroy see so many (cities) opt out (of recre- said, and “didn’t leave any room for have opened in the approximately ers, estimated tax revenue from mar- People on the Move Manager Debora Stein, ational),” said Douglas Mains, head ambiguity.” LARA’s rules put “mus- 20,000-resident city, with a third in- ijuana sales would reach $53.7 mil- (917) 226-5470, [email protected] of Detroit-based law rm Honigman cles and skin” on the bones of the coming. e two in business, Gage lion in the rst year and $134 million Events Director Kacey Anderson LLP’s cannabis industry group. “With original, voter-initiated recreational Cannabis Co. and LIV, plan to pursue by 2023 as the market matures. e Director of Marketing Christina Fabugais-Dimovska medical, you saw a couple larger cit- marijuana statute, he said. But parts recreational licenses, according to state Senate Fiscal Agency estimated Senior Art Director Sylvia Kolaski ies go, like Lansing, which gave other of the act itself have been interpreted the companies. revenues at $77.1 million in 2019, Director of Media Services Joseph (Sam) Tanooki, (313) 446-0400 or [email protected] municipalities a comfort level and in varying ways. “Council’s opinion has been that growing to $262 million annually by Integrated Marketing Specialist Keenan Covington template to follow.” Benjamin Sobczak, a partner with we know this has been something the 2022, Crain’s reported last fall. Classi’ed Sales and Sales Support Suzanne Janik Cities that wait can copy best prac- Detroit-based Dickinson Wright community has been interested in State marijuana revenue will come tices and see the consequences be- PLLC, said he sees litigation as inevi- for a little while now and voted over- from a 6 percent sales tax and 10 per- CUSTOMER SERVICE fore experiencing them themselves, table over perceived lack of clarity in whelmingly (for it) last November, so cent excise tax, with 15 percent of the Single copy purchases, publication information, while cities that jump in get the ben- some details of the statute, such as their focus has been, ‘Where does it latter going to municipalities based or membership inquiries: Call (877) 824-9374 or [email protected] e t of attracting the businesses look- co-location between medical and make sense for these facilities to on how many establishments they Reprints: Laura Picariello ing to set up shop quickly, Mains recreational operations, businesses be?’” Lyons said. Now that medical have in their borders. (732) 723-0569 or [email protected] said. that submit applications before cities facilities have opened, “the city’s re- In California, where less than 20 While the act lets city governments opt out, or for cities that are regulat- ally been trying to collect data on percent of cities allowed recreational Crain’s Detroit Business is published by decide, residents can also petition for ing medical while banning recre- how this will aect areas around retailers as of late 2018 (under Michi- Crain Communications Inc. a vote to reverse those decisions. ational sales. these businesses, any safety con- gan’s approximately 50 percent) and Chairman Keith E. Crain Vice Chairman Mary Kay Crain cerns.” growers have complained of high President KC Crain Emergency rules Out and in taxes and complicated regulations, Senior Executive Vice President Chris Crain Recreational rush the industry hasn’t performed as well Secretary Lexie Crain Armstrong e state of Michigan released Center Line, a Macomb County as envisioned, the Los Angeles Times Chief Financial O–cer Robert Recchia emergency rules in July in order to city of fewer than 9,000 residents, has Ahead of the expected recreational reported in December. e state ex- G.D. Crain Jr. Founder (1885-1973) Mrs. G.D. Crain Jr. Chairman (1911-1996) implement the Michigan Regulation joined 125 other communities in opt- rush, Michigan governments and pected $471 million in revenue last and Taxation of Marijuana Act, with a ing for medical marijuana. But it businesses navigate the landscape of scal year, under the previously pro- Editorial & Business O–ces four-month cushion between the chose to not to partake in recreation- medical marijuana, which was legal- jected $630 million, according to the 1155 Gratiot Ave., Detroit MI 48207-2732; rules’ release and when the Michigan al, for now. ized through a 2008 ballot initiative. L.A. Times. (313) 446-6000 Marijuana Regulatory Agency under “e law, as it’s written, is vague e Legislature passed bills in 2016 “It will take some time for it to be Cable address: TWX 248-221-5122 AUTNEW DET the Department of Licensing and and does not allow for local control to regulate medical businesses. fully mature, and there will be bumps CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 is published weekly, except the last issue in December, by Crain Regulatory Aairs plans to start tak- as eectively as medical marijuana Michigan had 279,900 active med- in the road like all legalized states Communications Inc. at 1155 Gratiot Ave., Detroit MI 48207-2732. Periodicals postage paid at Detroit, MI and additional mailing ing business applications Nov. 1. It law does,” especially for a small town ical marijuana cardholders and have had, but Michigan’s market will o¨ces. POSTMASTER: Send address changes to CRAIN’S DETROIT could start issuing licenses the same with speci c needs, said Dennis 38,500 caregivers as of Sept. 1 and be strong,” Hovey said in an email. BUSINESS, Circulation Department, P.O. Box 07925, Detroit, MI 48207-9732. GST # 136760444. Printed in U.S.A. month. Champine, Center Line’s city manag- 298 medical marijuana grower, pro- Contents copyright 2019 by Crain Communications Inc. All rights reserved. Reproduction or use of editorial content in any manner e department could not yet esti- er, city clerk and DDA director. cessor, provisioning center and other Annalise Frank: (313) 446-0416 without permission is prohibited. mate when the rst licensees would e City Council opted out in De- licenses were issued and active as of Twitter: @annalise_frank 30 CRAIN’S DETROIT BUSINESS // OCTO BER 7, 2019

THE WEEK ON THE WEB RUMBLINGS SEPTEMBER 27-OCTOBER 3 | For more, visit crainsdetroit.com

Masco to sell Jack White, Alice Cooper to subsidiary for $725 million headline Gibson fundraiser ivonia-based Masco Corp. has made a deal to sell one of its win- fundraiser for the Kirk Gibson the team. Earlier this year, he added Ldow and door subsidiaries for $725 Foundation for Parkinson’s, fea- special assistant to the team to his million after exploring strategic al- Aturing Detroit music icons Jack White duties. ternatives for its business. and Alice Cooper and the former Ti- e event, which will take place in Masco (NYSE: MAS) entered an ger himself, will be held at the Shinola the Birdy Room of the Shinola Hotel in agreement to sell Washington-based Hotel later this month. downtown Detroit, will feature a short Milgard Windows and Doors to e Devil’s Night fundraiser, slated acoustic performance by White, along Pennsylvania-based MI Windows for Oct. 30, will feature a conversation with a silent auction with items in- and Doors, according to a news re- with the Detroit legends moderated cluding a limited-edition ird Man lease from Masco. e sale is expect- by WDET’s Ann Delisi. It will cover a Records turntable signed by White, a ed to close in the fourth quarter. range of topics including music, base- cooking class and dinner with San It comes shortly after the company ball and Detroit, according to spokes- Morello Chef Andrew Carmellini, as sold its UK Window Group. Masco woman Bridget Burns. well as chance to play in a table tennis completed that sale in September, MILGARD Established in 1996, the Kirk Gib- match with Cooper or Gibson. spokeswoman Sue Sabo said in an Masco has agreed to sell Washington-based subsidiary Milgard Windows and Doors son Foundation awards college schol- ird Man Records was launched email to Crain’s. It was sold to the for $725 million. arships to students at Waterford Ket- in 2001 by White, best known for his “current UKWG leadership team and tering and Clarkston High Schools. In role as lead singer and guitarist of the an outside equity investor.” Terms store at 8650 W. Grand River Ave. 2015 when Gibson was diagnosed White Stripes. were not disclosed. Detroit digits J A nearly 6,000-square-foot virtual with Parkinson’s disease, the organi- e fundraiser starts at 6 p.m., and Masco, whose brands include A numbers-focused look at last golf center is to open in the Wood- zation expanded its purpose to raise guests are encouraged to dress in cos- Behr, KraftMaid and Merillat, an- week’s headlines: ward Corners by Beaumont develop- awareness and funding for Parkin- tume. nounced in March that it was seeking ment in Royal Oak in December. e son’s research. All of the proceeds from ticket sales to divest from its cabinetry and win- indoor golf simulation and training Both White and Cooper are avid and the silent auction will go toward dow businesses, including Milgard, $725M facility will be Los Angeles-based baseball fans. Gibson, who played 12 the Kirk Gibson Foundation. Tickets Ann Arbor-based Masco Cabinetry Value of Masco’s window and door X-Golf America’s 10th facility in seasons with the Tigers, is an analyst are $350 and can be purchased at and UK Window Group. It said in subsidiary sale Michigan. X-Golf Royal Oak, led by for Fox Sports Detroit’s coverage of ow.ly/S22y50wAC5F. June that it was hoping to sell each of franchisees Ben Lubs and Charlie the subsidiaries within six to nine Krisfalusi, will boast a half-dozen months. 92 percent suites, a full bar and light food menu. Masco is shifting focus to the re- Space leased in downtown Detroit’s J Developers of a new ride service pair and remodeling segments of the most in-demand o€ce buildings say they will launch their rst nation- housing market, such as plumbing al test in metro Detroit in early Janu- and furnishings, as it divests from the ary. e Zoom Ride service will be more cyclical window and door $5M launched in a total of ve U.S. cities products. Amount BCBSM is committing to next year, the Dearborn-based com- In 2018, Masco’s cabinetry and Detroit’s East Warren/Cadieux area pany said in a news release. Zoom windows and other specialty prod- Ride Chairman Bilal Hashwi and ucts segments pulled in $1.7 billion CEO Basel Yasin say the service will in net sales, $120 million in operating ll gaps in the current marketplace prot and $161 million in adjusted ed declines in sales volumes for dominated by Uber and Lyft by im- EBITDA. e segments represented heavy trucks and trailers. e Troy- proving customer and driver safety 20 percent of net sales for Masco, based company said in a regulatory and increasing income for drivers. which reported total revenue of $8.4 ling that the plan was approved and J Forever 21 Inc. led for bankrupt- billion in 2018. it expected to incur about $20 million cy protection, the latest big fashion Shares of Masco (NYSE: MASZ) in severance costs. merchant who couldn’t cope with rose $1.15, or 2.8 percent, to $42.83 J Southeld-based metal parts sup- high rents and heavy competition as DUSTIN WALSH/CRAIN’S DETROIT BUSINESS after the deal was announced. plier Chassix Holdings Inc. is re- the shift to e-commerce cut a swath Longtime Detroit Economic Club President Beth Chappell will concentrate on Sabo said the company does “not branding itself to Aludyne to better through traditional retailers. e pri- building the AutoMobili-D mobility symposium speaking program. anticipate any immediate changes in reect the growth of its brand and vately held company based in Los the day-to-day operation of the busi- role in the shifting mobility land- Angeles said it will close up to 178 ness” following the sale of Milgard, scape. e new name, eective Oct. stores in the U.S. which employs 2,800 people. Includ- 1, reects the trajectory of an evolv- Auto show, longtime Econ ing Milgard employees, Masco em- ing industry that calls for lighter and REAL ESTATE NEWS ploys about 26,000 — 800 in Michi- safer vehicle components. Club president team up gan. J Now in its 11th year, the pa- J A 55,000-square-foot indoor ad- tient-centered medical home project venture park is opening this week in he North American International ing ways people BUSINESS NEWS sponsored by Blue Cross Blue Shield Sterling Heights, and is expected to Auto Show has linked up with get around. of Michigan has saved $626 million generate 120 jobs. e adventure Tsomebody with a long record of book- “ e NAIAS al- J Aptiv PLC is acquiring a German in health care costs in reduced hospi- park will boast attractions that are ing top speakers to direct program- ready attracts a micro duct supplier for $310 million tal admissions, emergency depart- geared toward keeping kids active, ming tied to the rst-ever summer global audience,” in the latest move to bolster its elec- ment visits, use of generic drugs and franchisee Wes Ayar said. show next June. Chappell said in a tric vehicle and autonomous driving fewer expensive radiologic exams, J wo women-owned businesses e show announced last week that statement. “En- business. Aptiv, whose North Ameri- the company said. Blue Cross pro- are planting their ags in the same longtime Detroit Economic Club hancing the Au- can base is in Troy, signed an agree- vides nancial incentives to primary building in Detroit’s Eastern Market. President Beth Chappell would serve toMobili-D ment to buy Systemtechnik GmbH, care physicians to work more closely On the third oor of 1337 Division St., as director of special programs to thought leader- commonly called gabocom, from pri- with patients and specialty doctors to which is owned by Sanford Nelson’s “drive the next level of speaker en- Chappell ship component vate equity rm Bregal Unterneh- coordinate their care. Firm Real Estate company, massage gagement.” will really up our merkapital. J More than $230,000 was raised at studio Fauna Holistic opened in Sep- “Beth is a proven leader and a game on the J Blue Cross Blue Shield of Michigan Arts, Beats & Eats in Royal Oak during tember as an alternative to luxury well-respected professional among world stage.” is committing $5 million to support Labor Day weekend for more than 60 spas. Joining Fauna Holistic in the executives in the industry,” said Rod Chappell was owner and co-found- the revitalization of the East Warren/ nonprots and community groups. building later this year will be Alberts, NAIAS executive director. er of RediMinds, a data strategy and Cadieux area on Detroit’s east side as e festival generated $233,049.26 co-working space Seat Detroit. Seat “With her decades of experience, Beth consulting company she recently part of Mayor Mike Duggan’s initia- for charitable organizations, a 12 per- Detroit bills itself as a co-working will help the show attract the top sold. tive to leverage private investments cent increase from last year. space for entrepreneurs, startups and minds and industry disrupters to De- Chappell retired in 2017 after 15 into community improvements. Blue J Residents in Brighton and sur- freelancers. troit in June. Our speakers and sym- years as president and CEO of the De- Cross is teaming with communities rounding areas have a new way to J A café with a fried chicken twist is posiums will be heard by thousands of troit Economic Club. e club is con- in the area through the Strategic travel to Detroit Metropolitan Air- being prepped at the space of a media and industry members from sidered one of the nation’s premier Neighborhood Fund and the Aord- port, thanks to a new stop operated Krispy Crunchy Chicken that wasn’t around the world, and Beth will help speaking venues and has hosted able Housing Leverage Fund with the by East Lansing-based luxury motor meant to be in Detroit’s Jeer- draw the best of the best.” world political leaders, CEOs and a investment that will be distributed coach company Michigan Flyer LLC. son-Chalmers neighborhood. Yellow Chappell will concentrate on build- wide variety of other leaders. through 2022. e Brighton service began last week Light Coee & Donuts is targeting ing the AutoMobili-D mobility sym- e auto show’s move to June coin- J Manufacturer Meritor Inc. said it and includes 14 round trips to and Jan. 1 for its debut at 1447 E. Jeer- posium speaking program, which cides with an expansion of the show has planned a global restructuring to from the airport per day. e stop is son Ave. after an estimated $150,000 aims to bring together speakers from a outside the walls of TCF Center. e cut labor costs because of anticipat- at the south parking lot of the Meijer build-out. variety of elds to examine the chang- show is scheduled to run June 9-20. B:11.375" T:10.875" S:9.875"

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CLIENT: BBDO AT&T PRODUCT: IPBB Round 2 bleed ad A Agency Job Number: None Cradle Job Number: 732366-10 JOB#: 732366-10 PUB LIST: SPACE: 4/C Proof #: 2 Path: EG-PLUS-NY:EGPlus_Departments:Print:A—F:BBDO:ATT:732366-10_IPBB_Round _2_Bleed_ Created: 8-29-2019 3:55 PM CRAINS CLEVELAND BLEED: 11.375" x 15.5" ad_A:732366-10_Mechanicals:732366-10_IPBB_Round _2_Bleed_ad_A_V2.indd Saved: 9-23-2019 8:07 PM LA BUSINESS JOURNAL TRIM: 10.875" x 14.5" Operators: Angelique.Perrian / Maria Barrios Printed: 9-23-2019 8:07 PM SAFETY: 9.875" x 13.5" Print Scale: None ORANGE COUNTY BUSINESS JOURNAL GUTTER: None SAN DIEGO BUSINESS JOURNAL PUBS: IBPP Magazine Ink Names: Cyan OOH Scaling Info: Fonts: ATT Aleck Sans Bold, CRAINS DETROIT ISSUE: None Magenta Build Scale: 100% Medium TRAFFIC: Donna Mendieta Yellow Final Safety : 13.5" H x 9.875" W TT Slug OTF Bold CRAINS CHICAGO ART BUYER: None Black Final Viewing Area : 14" H x 10.375" W ATT Aleck Cd Medium ACCOUNT: None Final Trim : 14.5" H x 10.875" W RETOUCH: None Final Bleed : 15.5" H x 11.375" W PRODUCTION: None ART DIRECTOR: None Ink Density: None Page: 1 of 1

IMAGES: 732336-1_Print_03_v7._V1_CMYK_HR.tif CMYK 298 ppi 732331-1_Print_03_v7_Hose_V1_CMYK_HR.tif CMYK 287 ppi att_biz_hz_alt_4cp_wht.eps Reliance Healthcare Now Offers A Medicare Advantage Plan An Organization of Thousands of Physicians in Six Counties

Physician Owned Physician Operated Physician Driven Physician organization (PO) • Accountable care organization (ACO) • Over $40 million in CMS savings

Reliance Healthcare is proud to announce it has been approved for a Medicare Advantage Plan for the following counties:

• Macomb •Wayne • Genesse • Oakland • St. Clair • Monroe

The Reliance Medicare Advantage Plan will be offered to members for the 2020 calendar year.

“A vast majority of healthcare delivery takes place in the community setting. It’s either in the primary care physician’s of ce or specialist’s of ce. These of ces are the most appropriate places where healthcare providers can make the maximum impact. We are striving to bring signi cant improvements in health care delivery.”

Nazmul Haque, M.D., MRCP, Chairman and CEO of Reliance Healthcare “I am personally enrolling in the Reliance Medicare Advantage Plan!”

Neil Belgiano, M.D., Physician An outstanding, innovative, dependable Organization (PO) President physician-driven and community-based and Director of the Reliance healthcare delivery platform. Medicare Advantage Plan

For more information, please visit www.reliancemedicareadvantage.org, or call Toll Free at 833-653-2041. Reliance Healthcare 23900 Orchard Lake Road, Suite 210, Farmington Hills, MI 48336 Reliance Medicare Advantage is a Medicare Advantage HMO plan with a Medicare contract. Enrollment in Reliance Medicare Advantage depends on contract renewal. H9861_RMA136_M