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Attevo's Problems Are Mounting 20130204-NEWS--1-NAT-CCI-CL_-- 2/1/2013 4:48 PM Page 1 $2.00/FEBRUARY 4 - 10, 2013 INSIDE Attevo’s problems are mounting In the palm of his hand Leon Polott, firm or deny whether the depart- right, and his Former employees have complained to Labor Department ment is investigating the situation. Sterionics Inc. The complaints to the Labor De- are working to that tech consultant mishandled retirement contributions partment are the latest in a string of commercialize problems at Attevo. a pen-shaped By CHUCK SODER ended up in those accounts, ac- firmed that it had “received com- The company employed about device they [email protected] cording to Matt Wienke, who led plaints from members of the public 100 people, including about 20 con- believe will the Cleveland technology consult- about possible mishandling of 401(k) tractors, in May 2011, but since then transform the Former Attevo employees have ing company’s data analysis prac- contributions” at Attevo, according many employees have left, includ- way health care providers treat sent complaints to the U.S. Depart- tice until April 2011, and four other to a statement from Scott Allen, who ing several in management. Mr. wounds. The product is being test- ment of Labor stating that money ex-employees who did not want is the department’s director of public Wienke listed 10 mid- and upper- ed at Akron General and Kent State. deducted from their paychecks for their names printed. relations for the Midwest. level managers, including himself, PAGE 3 their retirement accounts never The Department of Labor con- Mr. Allen said he could not con- See ATTEVO Page 23 Nonprofits could be IG HANGE uniting for ABIG CHANGE city’s sake Three groups are in talks to form alliance that would save money and improve efficiency By JAY MILLER [email protected] Just as businesses and even communi- ties are looking for ways to collaborate and be more efficient, three nonprofit organiza- tions that play key roles in economic devel- opment in the city of Cleveland are moving toward consolidating their efforts. Cleveland Neighborhood Development Coalition, LiveCleveland and Neighborhood Progress Inc. are in talks to bring their orga- nizations and their missions under a single Hospitals are spending millions to meet diagnostic coding requirement umbrella organization that would work to fund, promote and revitalize commercial set by the government; transition must be complete by October 2014 and residential development in Cleveland’s neighborhoods. The groups have not yet By TIMOTHY MAGAW timillion-dollar initiatives to train thou- and patients aren’t likely to notice much committed to an alliance, though. [email protected] sands of their employees and upgrade of a change. However, hospitals are in- Consolidation is partly a realization that their information technology infrastruc- vesting heavily to ensure the conversion it’s time to sharpen the focus of the non- orget the Jackson 5 song. For ture to cope with ICD-10, an arduous new goes smoothly, because any stumbles in profit groups that are working to build the Northeast Ohio’s hospitals, ABC is diagnosis coding requirement — one that the transition could affect their billing cy- central city. But it is also a recognition that not as easy as 123. injects more alpha characters into what cles and could jeopardize their already- money is tight — and getting tighter — and was a mostly numeric code. sensitive revenue streams. that the groups need to be more efficient. FLocal hospitals are in the midst of mul- Sure, it all sounds like alphabet soup, See CHANGE Page 26 See NONPROFITS Page 8 SPECIAL SECTION 05 6 LEGAL AFFAIRS NEWSPAPER Law firms shorten their names in an effort to be Entire contents © 2013 74470 01032 more memorable ■ Pages 13-21 by Crain Communications Inc. Vol. 34, No. 5 0 PLUS: ADVISER ■ THE SWITCH FROM PUBLIC TO PRIVATE ■ & MORE 20130204-NEWS--2-NAT-CCI-CL_-- 2/1/2013 5:21 PM Page 1 2 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM FEBRUARY 4 - 10, 2013 COMING NEXT WEEK THE LONG ROAD DOWN Organized labor continues to struggle, with union members comprising just 11.3% of the U.S. work force in 2012, down from 11.8% in 2011. Less than Yes, please and thank you three decades ago, union members accounted for more than 20% of the country’s labor force. There now are more public-sector union members — 7.3 700 W. St. Clair Ave., Suite 310, Next week’s Small Business section will million — than in the private sector, 7 million. The union membership rate for Cleveland, OH 44113-1230 look at the importance of knowing — public-sector workers in 2012 was 35.9%; for the private sector, it was just Phone: (216) 522-1383 Fax: (216) 694-4264 — 6.6%. A look at the union affiliation of U.S. workers at various years from 1983 and the business of teaching proper www.crainscleveland.com etiquette, especially in the age of to 2012: Publisher/editorial director: smart phones and high-tech gadgets. Year Total union members Share of U.S. work force Brian D. Tucker ([email protected]) The section also will include our Editor: 2012 14,366,000 11.3% Mark Dodosh ([email protected]) monthly Tax Tips feature, an expert Managing editor: 2007 15,670,000 12.1% Scott Suttell ([email protected]) adviser column and much more. Sections editor: 2002 16,145,000 13.3% Amy Ann Stoessel ([email protected]) Assistant editor: 1997 16,110,000 14.1% REGULAR FEATURES Kevin Kleps ([email protected]) 1992 16,418,000 15.7% Sports Senior reporter: Big Issue .....................10 Going Places ...............12 1987 16,913,000 17.0% Stan Bullard ([email protected]) Real estate and construction Classified ....................26 Reporters’ Notebook....27 1983 17,717,000 20.1% Reporters: Editorial ......................10 What’s New..................27 SOURCE: U.S. BUREAU OF LABOR STATISTICS; WWW.BLS.GOV Jay Miller ([email protected]) Government Chuck Soder ([email protected]) Technology Dan Shingler ([email protected]) Energy, steel and automotive Tim Magaw ([email protected]) Health care and education Michelle Park ([email protected]) Finance Research editor: Deborah W. 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For subscription information and delivery concerns send correspondence to Audience Development Department, Crain’s Cleveland Business, 1155 Gratiot Avenue, Detroit, Michigan, 48207-2912, or email to custom- [email protected], or call 877-812-1588 (in the U.S. and Canada) or (313) 446-0450 (all other locations), or fax 313-446-6777. Reprints: Call 1-800-290-5460 Ext. 125 Audit Bureau of Circulation 20130204-NEWS--3-NAT-CCI-CL_-- 2/1/2013 2:30 PM Page 1 FEBRUARY 4 - 10, 2013 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 3 INSIGHT Diebold head isn’t afraid to shake things up vestors; they But anyone familiar with the lat- Wallace’s history at Ford suggests big changes are ahead sent Diebold’s er stages of Mr. Wallace’s 30-year stock down career at Ford Motor Co. shouldn’t By MARK DODOSH “The company has a lot of poten- Just three days later, Mr. Wal- have been surprised by the swift ac- [email protected] tial for greater value creation, and I lace would be quoted prominent- more than 8% tion of Diebold’s board under his look forward to making a signifi- ly in another Diebold news release on Jan. 24, the headship. The man born in Edin- On the day Diebold Inc. an- cant contribution to the company’s — this one revealing that Thomas day the compa- nounced that he had been elected leadership and hope to build upon Swidarski, its CEO of the last sev- ny announced burgh, Scotland, 67 years ago has- to lead the company’s board of di- Diebold’s rich history,” Mr. Wallace en years, suddenly was out of a that the 17-year n’t been afraid to be an agent of rectors, Henry D.G. Wallace sig- stated in Diebold’s Jan. 21 news re- job. veteran also had Wallace change, nor has he shied away from naled that he would be no caretak- lease about his new role on the The abrupt exit of Mr. Swidarski stepped down a challenge.
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