20090119-NEWS--0001-NAT-CCI-CD_-- 1/16/2009 5:52 PM Page 1

®

www.crainsdetroit.com Vol. 25, No. 3 JANUARY 19 – 25, 2009 $2 a copy; $59 a year

©Entire contents copyright 2009 by Crain Communications Inc. All rights reserved

Inside Who’s in line to succeed Epolito at MEDC? United Way may cut funding Page 6 given the cur- Agency awaits final revenue figures for ’08 rent economic Shipping ban pours grief on climate.” wine retailers, BY SHERRI BEGIN WELCH the various funding cut scenarios firmer idea of the degree to which United Way CRAIN’S DETROIT BUSINESS it is assessing while it waits to get pledges will likely be collectible, could not say Page 3 a firmer idea of how much money she said Friday in an e-mail. It late last week Six months after making initial it raised last year. doesn’t expect to be able to “call how much it Small Business Monthly grant commitments under its new “We’re trying to shore up where the revenue picture” until early raised through community impact model, United we stand from a revenue stand- March rather than this month or workplace cam- Way for Southeastern Michigan is point … (and) communicating to next as in the past. paigns and indi- considering funding cuts. our partner agencies that we don’t “But that is not a justification to Green vidual, founda- The agency met with the lead ex- know what the situation is,” said do nothing or plan for nothing,” tion and corporate giving in 2008, ecutives of many of its local non- Kelly Major Green, vice president Green said. Green said. profit grantees in mid-December of marketing and strategy at Unit- “We think it’s prudent for every And subsequently, it could not to discuss the current economic ed Way. organization, particularly every comment on the magnitude of pos- climate, service gaps arising from The agency still is talking with nonprofit organization, to be look- sible funding cuts to its member the historic level of demand and the domestic automakers to get a ing at ways it may have to adjust See United Way, Page 24 Chinese firm ■ Real-world advice from of the business peers, Page 17 shops local 2008 Newsmaker Year ■ How to tell if it’s time to sell, Page 19 suppliers Dingell honored for This Just In BY RYAN BEENE years standing up for SBA loans plummet CRAIN’S DETROIT BUSINESS U.S. Small Business Adminis- Detroit-area automotive suppli- tration-backed lending con- ers might soon be merger or acqui- automakers, workers tinued to fare poorly in De- sition targets of a Chinese automo- tive supplier looking to gain a cember, according to the BY ROBERT ANKENY most recent numbers from stronger footprint in the U.S. auto industry at bargain-basement AND NANCY KAFFER Detroit’s SBA office. CRAIN’S DETROIT BUSINESS Loans made through the prices. popular 7(a) program are “As for the size, it may be a very t was a bad week for John Dingell. down 64 percent for the fiscal small firm, up to a very large firm” The 53-year Democratic veteran of the year to date, said SBA Michi- said Jeff Zhao, general manager of I U.S. House of Representatives was back on gan District Director Richard Summitech Engineering Inc., not rul- the job but still recuperating from knee re- Temkin. The SBA reported 195 ing out publicly traded tier-one placement surgery, using a wheelchair or loans worth $38 million, a 55 suppliers. “It depends on what cane to get around. percent decline in year-to- kind of company and the core val- Dingell’s congressional colleagues were date dollars. ue of the company.” drubbing the Detroit 3 execs, who’d come to At the end of October, the Chinese investment was the fo- Washington, D.C., in search of bridge loans first month of the SBA’s fis- cus at a recent meet-and-greet and left portrayed as arrogant spendthrifts, cal year, lending had plum- event Tempo International Group, the out of touch with the American market and meted from 240 loans made parent company of Summitech, the American worker. in October 2007 to 81 during hosted at the Henry Ford Museum on And a liberal Democrat from California, the same month last year. Jan. 9. Rep. Henry Waxman, was challenging Din- Small-business owners In attendance was Beijing’s vice gell’s chairmanship of the powerful House En- point to a tightening of credit mayor, who expressed his city’s in- ergy and Commerce Committee. standards by banks; banks terest in supporting Chinese in- The timing couldn’t have been worse. The au- say the number of creditwor- vestment in Detroit companies. tomakers went to Capitol Hill on Nov. 18, a Tues- thy loan applicants has de- Also attending was Wayne day. On Friday, the House Democrats voted. County Executive Robert Ficano, NEWSCOM clined. U.S. Rep. John Dingell has served Michigan for 53 Dingell lost. Express Loans, a type of local economic development lead- years. Despite losing his chairmanship of the House “It was a bad time for me,” said Dingell, loan made through the 7(a) ers, Beijing municipal officials Energy and Commerce Committee, he’s not slowing whose 15th District includes Dearborn, home and area auto industry executives. down. to Ford Motor Co. “There was a definite back- See This Just In, Page 2 See Chinese, Page 24 lash against the auto industry — that was the HELP HONOR DINGELL nastier hearing the companies had. That nasty hearing had an impact on me and you can’t re- Luncheon: Noon to 1:30 p.m. Feb. 18 ally gainsay that.” Where: Ritz-Carlton Dearborn It’s a setback for Dingell, 82, who was first Tickets: $50. Tables of 10 are $450 each appointed to the committee in 1975 and has Registration: Visit www.regonline.com/ held the position of chair or ranking Democrat 09newsmaker. Also 11:30 a.m. on Feb. 18 since 1981. But he’s not slowing down. For his long service to the people of the state For questions and group reservations, call (313) 446- 0300. See Dingell, Page 25 NEWSPAPER 20090119-NEWS--0002-NAT-CCI-CD_-- 1/16/2009 5:48 PM Page 1

Page 2 CRAIN’S DETROIT BUSINESS January 19, 2009

Olson and co-defendant Lorezno story is kitchen/home goods store in separate civil lawsuits filed such as grip, production assis- Garrisi, both members in Clinton and gift shop Acorn Farm L.L.C., Dec. 28 and Jan. 5 in Macomb Coun- tant, set building and design, film THIS JUST IN Township-based Marquee Invest- which moved into a space on ty Circuit Court. makeup and screenwriting. ments L.L.C., were facing separate Main Street vacated by The Village Neither company president Meisner said he’s investing ■ From Page 1 lawsuits from New Baltimore- Peddler months earlier, said DDA Robert Thiede nor his attorney, $20,000 to launch the school, and based Citizens State Bank and from Executive Director Ann Barnette. Charles Bullock of Southfield based expects first-year revenue of program in which 50 percent of Warren Bank, for defaulting on — Chad Halcom Stevenson & Bullock P.L.C returned $400,000 to $500,000. He founded the loan is guaranteed, are bank loans for residential devel- calls. Huntington Woods-based Mort down 72 percent since the opments in Macomb and Chester- Rock Tops owes $1.2M The Dwyer case is set for a Meisner Associates in 1997, a pub- SBA’s fiscal year began. Hunt- field townships that never materi- hearing Jan. 26. lic-relations firm and a specialist ington Bank continues to be De- alized. A shuttered Macomb Township — Chad Halcom in training and managing talent troit’s top SBA-backed lender, “The cross-complaint by Mr. Ol- business that makes and installs for television news. making 11 loans in December, son against (Garrisi) has been granite countertops for residen- — Bill Shea Temkin said. withdrawn, which we commend tial customers owes at least $1.2 Wayne County gets a new — Nancy Kaffer since that allegation was base- million to suppliers according to development head less,” said Benjamin Aloia, an attor- Macomb County court records. Airline buying 15 planes Wayne County has named ney for Garrisi in the case. Involuntary bankruptcy could Memphis, Tenn.-based Pinnacle Ex-Olson president defaults J.M. Olson closed its doors in be an option for liquidating Rock Turkia Awada Mullin as the new di- Airlines Corp. subsidiary Colgan Air The former president of a Macomb County on May 9, and Tops Inc.’s assets and reimbursing rector of economic and neighbor- Inc., which is based in Manassas, closed St. Clair Shores con- John Olson personally faces three its creditors, one attorney said. hood development. Va., inked a $432 million deal to struction firm is in default for lawsuits in Oakland and Macomb “Three or more creditors are Mullin, formerly an assistant $5.5 million in two pending law- counties for allegedly defaulting needed to begin involuntary Wayne County executive, filled buy 15 74-seat Bombardier Q400 suits after failing to appear for on bank loans totaling more than bankruptcy. I know we have at the vacancy created by the Dec. 31 NextGen turboprop airliners that deposition in Michigan or the $5.25 million. least that many based on the com- resignation of Mulugetta Birru. Bir- will operate as part of Continental Bahamas. Steve Braun, president of J.M. panies that have contacted me,” ru is working on-site with the Airlines commuter fleet. John Olson, 63, formerly of Olson for its last 18 months in op- said Norman Yatooma, president of county as a private consultant on Detroit Metropolitan Airport is one Grosse Pointe Park and ex-pres- eration, opened Braun Construction Birmingham-based Norman Ya- China and international business of Pinnacle’s hubs. ident of the now-defunct J.M. Ol- Group Inc. in Farmington Hills, tooma & Associates P.C. development. It hasn’t been determined if son Corp., had been under a which has most of Olson’s former Rock Tops Inc., incorporated in — Ryan Beene Houston-based Continental will court order to return to the U.S. staff and is continuing some of his Roseville in 2000 and based in Ma- use the planes to add Detroit or or to pay for attorneys to fly to construction projects by subcon- comb Township since at least Meisner to open film school Michigan routes as part of its Con- Nassau for his deposition by tractor agreement. 2006, closed its doors Dec. 19 with tinental Connections commuter ser- December. To date, he has done — Chad Halcom some alleged outstanding bal- Television talent-placement vice operated by Colgan, Conti- guru Mort Meisner plans to open a neither. ances, but has not filed for bank- nental said. That decision is Macomb County Circuit Court ruptcy according to records at U.S. film school next month with expected later this year. Judge Edward Servitto signed a Downtown Milford is full Bankruptcy Court in Detroit. buildings in Troy, Farmington The aircraft which will double default judgment against Olson The village of Milford achieved The company is accused of fail- Hills, Detroit and Warren. last week against Olson for $4.4 a zero retail vacancy rate among ing to pay Farmington Hills-based The Center For Film Studies will the Colgan fleet, will be delivered million and Judge Diane Druzins- its approximately 75 downtown Dwyer Marble & Stone Supply Inc. for consist of 20 students per class, between August 2010 and April ki imposed a separate default retail spaces during fourth-quar- $890,395 worth of materials and with two classes per day taught by 2011. judgment two days later ter 2008, according to the Milford taking some $323,998 in equip- film-industry professionals, Meis- Pinnacle also took options on against Olson in another case, Downtown Development Authority. ment for Tucker, Ga.-based ner said. an additional 15 Q400s for 2013. for $1.1 million. The most recent retail success GranQuartz L.P. without payment, Classes will focus on careers — Bill Shea Did You Get the Message? First Tech Direct named to 2008 Microsoft Dynamics® Inner Circle Top 1% of Microsoft Dynamics® Partners Worldwide

first tech direct more than software

® Microsoft Dynamics Presidents Club First Tech Direct specializes in selecting, implementing, deploying and 2008 managing Microsoft Dynamics CRM (Customer Relationship Management), Microsoft Dynamics AX, Microsoft Dynamics GP and Microsoft first tech direct

Dynamics SL. First Tech Direct offers extensive Microsoft Dynamics more than software experience and proven methodologies that will increase your GROW YOUR BUSINESS business’ efficiency, productivity and profitability. MICROSOFT DYNAMICS >ĞƚDŝĐƌŽƐŽŌLJŶĂŵŝĐƐΠZDƐŚŽǁ WITH LJŽƵŚŽǁƚŽŐĞƚƚŚĞŵŽƐƚŽƵƚŽĨĞǀĞƌLJ® ŽƉƉŽƌƚƵŶŝƚLJ͘ƐLJŽƵŐƌŽǁ͕ǁŝůůLJŽƵƌ CRM ƉĞŽƉůĞďĞĂďůĞƚŽĞīĞĐƟǀĞůLJƐŚĂƌĞŬĞLJ ŝŶĨŽƌŵĂƟŽŶƚŽƐƚĂLJƉƌŽĚƵĐƟǀĞ͍ƩĞŶĚ 2008 ƚŚŝƐFREE DŝĐƌŽƐŽŌLJŶĂŵŝĐƐZDĐĂŶŐƌŽǁĞǀĞŶƚĂŶĚůĞĂƌŶŚŽǁ Top Killer VARS by ǁŝƚŚLJŽƵƌĐŽŵƉĂŶLJĂŶĚŬĞĞƉLJŽƵƌ ƉĞŽƉůĞĐŽŶŶĞĐƚĞĚĂŶĚƉƌŽĮƚĂďůĞ͘ Accounting Technology :ĂŶƵĂƌLJϮϮ͕ϮϬϬϵ ^ŽƵƚŚĮĞůĚ͕D/ or &ĞďƌƵĂƌLJϭϭ͕ϮϬϬϵ 'ƌĂŶĚZĂƉŝĚƐ͕D/ 2482910138 *MUST REGISTER FOR

CONTACT Your Microsoft Dynamics www.firsttechdirect.com/GROW.htm 2482910138 ® THIS EVENT AT: Partner

26622 Woodward Ave., Suite 105, Royal Oak, MI 48067 p: 248.291.0138 f: 248.281.0406 [email protected] 20090119-NEWS--0003-NAT-CCI-CD_-- 1/16/2009 5:39 PM Page 1

January 19, 2009 CRAIN’S DETROIT BUSINESS Page 3 Will Carolyn bring the bacon? Health Care Extra Kilpatrick returns to transportation-funding panel in Congress

BY BILL SHEA couldn’t come at jects,” he said. positions in Congress. CRAIN’S DETROIT BUSINESS a better time,” It was quietly announced Jan. 8 The transportation-HUD sub- said transit czar that Kilpatrick, D-Detroit, would committee appropriated $103.6 bil- Metro Detroit’s mass-transit John Hertel, serve on the U.S. House appropri- lion in total spending for fiscal community is celebrating U.S. who is oversee- ations subcommittee for defense year 2008, according to a statement Rep. Carolyn Cheeks Kilpatrick’s ing two of the re- for the first time and return to the from Kilpatrick’s office. return to the powerful House gion’s major transportation-Housing and Ur- “She’s been on this committee before and she understands how transportation appropriations mass-transit ban Development subcommittee. Washington works and hopefully Hospitals retool for more subcommittee and hopes her re- projects. She sat on the transportation that will work to our advantage in newed influence will ensure mon- “To be in a subcommittee previously before getting as much money as we can,” reliable payments, Page 11. ey from the Obama administra- Kilpatrick key position in switching to the homeland securi- said Carmine Palombo, director of tion’s infrastructure stimulus a key time is fortunate for us. ty appropriations subcommittee in transportation planning for the comes this way. She’ll have access immediately to 2006 — a move that baffled transit “(Kilpatrick’s appointment) what’s going on and what’s avail- Company index insiders because it took her out of See Kilpatrick, Page 24 couldn’t be more helpful and able for funds for transit pro- one of the most influential funding Accuri Cytometers ...... 3 American Axle & Manufacturing ...... 24 Amerigon ...... 24 Amherst Partners ...... 24 Arbor Photonics ...... 23 Arvin Meritor ...... 24 Ascension Health ...... 11 Front-runner Blue Cross Blue Shield ...... 22 Children’s Hospital ...... 14 Cielo MedSolutions ...... 23 Commercial Alliance ...... 19 in MEDC race Delta Dental ...... 6 Detroit Renaissance ...... 4 Everyday Wines ...... 25 Federal-Mogul ...... 24 gloStream ...... 16 balks at rules, Fisher Coachworks ...... 23 Guardian Angel Home Care ...... 15 Hayes Lemmerz ...... 24 Henry Ford Home Health Care ...... 15 Henry Ford Hospital ...... 14 may lose loan Henry Ford Medical Group ...... 16 HMS Products ...... 18 BY TOM HENDERSON Incept Biosystems ...... 23 CRAIN’S DETROIT BUSINESS Lear ...... 24 MEDC ...... 3, 6 There’s good news and bad news for Jen- Merchant’s Fine Wine ...... 3 nifer Baird, president and CEO of Ann Ar- Michigan Commercial Credit ...... 19 bor-based Accuri Cytometers Inc. State eco- Mich. Liquor Control Commission ...... 25 nomic officials still like her company, but Michigan Manufacturers Association ...... 4 NATHAN SKID/CRAIN’S DETROIT BUSINESS they may lend money originally announced McLaren Visiting Nurse & Hospice ...... 15 John Lossia, owner Merchant’s Fine Wine in Dearborn, said the new law will essentially eliminate his ability to deliver gift baskets that contain wine. for her to someone else, instead. Nephrion ...... 23 Baird is the poster Oakland County Business Center ...... 19 child of new technology Oakwood Healthcare ...... 11 development for the Pediatric Care Corner ...... 16 state’s Michigan Economic Pixel Velocity ...... 23 Development Corp. Accuri SEMCOG ...... 24 Shipping ban pours grief is a manufacturer in a Solidica ...... 23 state desperate to re-es- Summitech Engineering ...... 1 tablish itself as a manu- Trinity Health ...... 11 facturing center, making Trinity Home Health Services ...... 15 an analytical scientific TRW Automotive ...... 24 over many wine retailers tool about the size of a mi- Baird United Way for SE Mich...... 1 crowave that sells for the Univ. of Mich. Health System ...... 14 price of a Lexus. Both hiring and revenue Visiting Nurses Association ...... 15 BY DANIEL DUGGAN my own backyard,” Mueller said. “I wasn’t are taking off, and the company is making Visteon ...... 24 CRAIN’S DETROIT BUSINESS planning on that.” inroads into Europe. Walsh College ...... 17 Those in the wine industry are adjusting to Baird’s photo is often the centerpiece of Wayne State University...... 14 Over the past two years, Martin Mueller and the new regulations that come with House Bill the MEDC’s home page. She’s the star of the William Beaumont Hospitals ...... 11 his five business partners crafted a business 6644, trying to assess what the impact to their MEDC’s print and radio ad campaigns. The Winebuys.com ...... 25 plan to sell wine from the eclectic wine lists at bottom lines will be. MEDC invested $2 million in Accuri in 2006 Wine Junkies ...... 3 restaurants to consumers looking for high-end For John Lossia, it will be significant around and granted it a tax abatement of $1.4 mil- wines through a Web site. the holidays. lion in 2007. In October, the agency an- Mueller was expecting the usual challenges Owner of Merchant’s Fine Wine in Dearborn, nounced it was awarding Accuri $1.95 mil- of marketing and finding capital, but he wasn’t he considers the sale of gift baskets to be a lion to create 88 new jobs, the firm easily Department index expecting a new state law to cripple the busi- steady profit center around the holidays. Gift scoring as the No. 1 company of the 112 that ness before it started. baskets, assembled at his store, typically con- entered the 2008 21st Century Jobs Fund busi- BANKRUPTCIES ...... 4 A bill signed into law Jan. 9 now makes it ille- tain a few bottles of wine paired with some pas- ness plan competition. BUSINESS DIARY ...... 20 gal for retailers to ship wine to anyone in the Despite all that, Baird now doubts she ta and other food items. CALENDAR ...... 20 state of Michigan. Under the new law, the wine can only be de- will get any of the $1.95 million. CAPITOL BRIEFINGS...... 4 So while Mueller’s budding business, Wine livered by an employee, not shipped by a third A company that didn’t rank high enough Junkies L.L.C., can ship wines to Ohio residents, party. to be named as one of the 17 that qualified CLASSIFIED ADS ...... 18 it can’t target those in Michigan. “Do you know how much it would cost me to for a total of $29.6 million in October may KEITH CRAIN...... 8 “It’s still viable, but it’s ironic that I can sell get her funding instead. LETTERS...... 8 to people all over the country but not folks in See Wine, Page 25 See Accuri, Page 23 MARY KRAMER ...... 9 OPINION ...... 8 PEOPLE ...... 20 HIS WEEK Comment on our stories Coming Jan. 26: CareerWorks RUMBLINGS ...... 26 T @ Join the CDB community. See Web Post your resume. See job SMALL BIZ SOLUTIONS...... 19 World, Page 26. listings. WWW.CRAINSDETROIT.COM WEEK IN REVIEW...... 26

Xxxxxxxxxxx xxxxxxx xxxxxxx xxxxxx 20090119-NEWS--0004-NAT-CCI-CD_-- 1/16/2009 5:21 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS January 19, 2009

Wishing you could MBT under renewed scrutiny LANSING — Michigan’s busi- the job growth, that’s where it is,” den as compared with the prede- ness tax is coming under renewed Rothwell said. cessor Single Business Tax. remove the stress scrutiny, with leading lawmakers “Just getting rid of the sur- The MBT did see some notable and business officials targeting the charge … it would not be enough to change in the final days of the 2008 tax for change. make a big difference. We need to legislative session, through a bill House Speaker Andy do it, it never should that among other things removed from distressed ? Dillon, D-Redford Town- have happened, but it’s certain taxes, fees, interest in- ship, is looking at the Capitol not the silver bullet.” come, royalties, dividends and oth- Michigan Business Tax Briefings Detroit Renaissance er elements from inclusion as as a part of comprehen- last year hired nonparti- gross receipts under the MBT. sive tax reform that san think tank Public Sec- However, exclusions are phased could go before Michigan tor Consultants Inc. for a in over five years, which some Look no further. voters. report that laid out state business officials said was disap- And on the Senate spending reforms that in pointing and will be confusing to side, the first bill to be in- 10 years could produce taxpayers. troduced in the new leg- $800 million in annual In addition, the bill was tied to As real estate and receivership experts, we know distressed real islative session was a savings. It has also re- another measure that “decouples” estate. We understand how to maximize investments and we reintroduced measure to tained Public Sector the MBT from provisions of the advise you on the right plan for your property, whether it’s to sell phase out the nearly 22 Amy Lane again to this time look at 2008 federal stimulus package that now or stay the course. percent surcharge on the governance reform, such as op- MBT, sponsored by Sen. Mark allowed businesses to use an accel- tions to encourage school districts Jansen, R-Gaines Township near erated write-off of equipment pur- and local governments to either know Grand Rapids. chases, providing businesses both We real estate. consolidate or combine opera- In an interview with Crain’s, a state and federal tax reduction Senate Majority Leader Mike Bish- tions, Rothwell said. for equipment investment. James Becker Kristin Mueller op, R-Rochester, said rolling back He hopes to have recommenda- Amanda Radaz, assistant direc- [email protected] [email protected] the MBT surcharge is Senate Re- tions on both tax and governance tor at the National Federation of Inde- +1 313-967-4100 +1 404-995-6453 publicans’ “No. 1 issue.” reforms later this year. pendent Business-Michigan, said In the state House, Dillon last One area of tax reform that the many businesses made investment www.us.joneslanglasalle.com week called for tax reforms that in- Michigan Manufacturers Association decisions based on both the federal clude improvements to the MBT, will be pushing is Michigan’s per- and state tax incentive, and the de- repeal of the surcharge, and reduc- sonal-property tax. coupling measure pulls “the rug tions in property taxes. The MBT partly addressed man- out from under them.” What in the World? He has not publicly specified ufacturers’ concerns with the per- how fast he would like the tax-re- sonal property tax, in that it al- lows them to take Granholm signs battery, tuition bills Today, she plays with a beach form proposal crafted but told Crain’s that he sees the timing as personal-property tax credits Gov. Jennifer Granholm on ball. Tomorrow, the weight of the against their MBT liability. “urgent. The condition of our econ- Wednesday signed a bill offering world will be on her shoulders and But Mike Johnston, vice presi- omy is under great stress.” up to $335 million in tax credits to the shoulders of all our children. dent of government affairs at the Doug Rothwell, president of De- encourage the development of ad- MMA, said Michigan needs to What sort of world will it be? troit Renaissance Inc., said the CEO vanced battery technology in eliminate the levy altogether. There are men who are committed group is working with both Dillon Michigan, the AP reported. and Bishop on options for tax re- “To be competitive with other to building a world that values the states, we can’t continue to just Also, Granholm on Tuesday form, as well as ways to reduce the signed a bill aimed at starting worth of the individual, that will cost of running government. give credits for personal-property allow every child to reach his/her tax, when other states don’t … partnerships to provide college tu- In terms of tax reform, he said, ition for students in high-unem- potential. There are men who are Detroit Renaissance has not yet de- charge it at all,” Johnston said. “What we’re going to do is put the ployment areas, modeled some- committed to building a world in veloped specific ideas but has what after the Kalamazoo hired Anderson Economic Group issue on the table … we’ve got to which morality, character and get that discussion started.” Promise, which guarantees free traditional values matter. L.L.C. to study options and develop college tuition to graduates of Kala- recommendations. He said that with the exception mazoo Public Schools. “We’re really not going into this of the MBT surcharge, the manu- Who are these men? Locally, Pontiac could be among with any preconceived notions, facturing community overall is They are Scottish Rite Masons. the first communities to use the other than to say to have it im- pleased with the MBT. The MBT new law. prove the competitiveness of contains employment and invest- Amy Lane: (517) 371-5355, Michigan,” Rothwell said. ment tax credits and it reduced Scottish Rite Masonry He said eliminating the sur- manufacturers’ business tax bur- [email protected]. charge would be a step in the right Making a Real Difference! direction, but there are problems with the overall structure of the www.32ndDegreeMasons.org 877.320.6432 MBT in that it discourages some of STREET TALK the sectors that are growing the THIS WEEK’S STOCK TOTALS: 15 GAINERS, 49 LOSERS, 8 UNCHANGED fastest to come here. “Folks would say that it’s raised CDB’S TOP PERFORMERS 01/16 01/09 PERCENT the tax on the service sector fairly CLOSE CLOSE CHANGE dramatically, and as a result, it’s 1. Oxford Bank Corp./MI $9.49 $6.05 56.86 really sent a negative message to 2. Somanetics Corp. 16.19 14.75 9.76 those sectors that Michigan wants 3. Credit Acceptance Corp. 18.17 17.03 6.69 them to be here. And if you look at 4. Syntel Inc. 26.37 24.84 6.16 5. Eagle Capital Growth Fund Inc. 5.80 5.70 1.75 6. Domino's Pizza Inc. 6.22 6.13 1.47 7. TRW Automotive Holdings Corp. 3.86 3.82 1.05 8. CMS Energy Corp. 11.26 11.18 0.72 BANKRUPTCIES 9. Perceptron Inc. 3.85 3.83 0.52 10. Meadowbrook Ins. Group Inc. 6.59 6.57 0.30 The following businesses filed CDB’S LOW PERFORMERS 01/16 01/09 PERCENT for Chapter 7 or 11 protection in CLOSE CLOSE CHANGE U.S. Bankruptcy Court in Detroit 1. Detrex Corp. $3.00 $3.80 -21.05 Jan. 9-15. Under Chapter 11, a com- 2. Caraco Pharm. Laboratories Ltd. 5.01 6.20 -19.19 pany files for reorganization. 3. BorgWarner Inc. 18.89 22.87 -17.40 Chapter 7 involves total liquida- 4. Ramco-Gershenson Prop. Trust 5.72 6.92 -17.34 tion. 5. Penske Auto Group Inc. 7.43 8.94 -16.89 Onyx Entertainment L.L.C./Mari- 6. TechTeam Global Inc. 5.16 5.91 -12.69 lyn’s on Monroe, 419 Monroe St., vol- 7. Federal Mogul Corp. 4.30 4.82 -10.79 untary Chapter 7. Assets and lia- 8. Agree Realty Corp. 13.69 15.14 -9.58 bilities not available. 9. Energy Conversion Devices Inc. 26.05 28.73 -9.33 Laptop Design USA L.L.C., 22731 10. Kaydon Corp. 28.27 31.10 -9.10 Newman, Dearborn, voluntary Source: Bloomberg News. From a list of publicly owned companies with headquarters Chapter 11. Assets and liabilities in Wayne, Oakland, Macomb, Washtenaw or Livingston counties. not available. — Compiled by Mark Lewis DBpageAD.qxd 12/31/2008 10:55 AM Page 1

Five is the new one. Some of us need phones with guts, backbone and Nextel Direct Connect.® Lucky for us, we can get up to four free i576 by Motorola phones when we buy one at just $69.99. It’s time your workers had the nation’s fastest push-to-talk network at their calloused fingertips. It’s time to get work done now.

Connect in less than a second. Only on the Now Network.™

Buy 1, get up to 4 free. i576 by Motorola® $69.99 Limited-time only for your business account. Offer available only in company-owned stores. See stores for availability. Requires eligible upgrade (or new-line activation) with a two-year agreement.

1-800-NEXTEL9 sprint.com/nextel

May require up to a $36 activation fee/line, credit approval and deposit. Up to a $200 early termination fee/line applies. Available on corporate-liable accounts only. Phone Offer: Offer ends 4/18/09 or while supplies last. Upgrade: Existing customers in good standing with service on the same device for more than 22 consecutive months currently activated on a service plan of $34.99 or higher may be eligible. See in-store rebate form or sprint.com/upgrade for details. Buy 1 Get 4 Offer: Activation required at the time of purchase for all five phones on the same account in one sales transaction. Not available in all channels. Other Terms: “Fastest” claim based on initial call setup time. Coverage not available everywhere. Sprint Mobile Broadband reaches over 248 million people. Offers not available in all markets/retail locations or for all phones/networks. Pricing, offer terms, fees and features may vary for existing customers not eligible for upgrade. Other restrictions apply. See store or sprint.com for details. ©2009 Sprint. Sprint and the logo are trademarks of Sprint. Other marks are the property of their respective owners. 20090119-NEWS--0006-NAT-CCI-CD_-- 1/16/2009 5:38 PM Page 1

Page 6 CRAIN’S DETROIT BUSINESS January 19, 2009 Who will succeed Epolito? The speculation begins

BY TOM HENDERSON tenure as MEDC president. but the executive committee will CRAIN’S DETROIT BUSINESS Snyder did not return two calls negotiate and determine his re- placed Friday morning and mid-af- placement’s salary and contract. When James Epolito announced ternoon. Rothwell, now president of De- last week he would step down as Epolito’s goal for Finney is president and CEO of troit Renaissance Inc., said his ad- President and CEO of the Michigan Spark and also has a history with vice to the MEDC is “to put some- Economic Development Corp., two the MEDC, having served as its body in there who’s already from prominent names began to be vice president of emerging busi- Michigan, keep whatever momen- Delta Dental: Grow bandied about as possible replace- ness sectors in 2000-2002. tum we have going, (and) not have ments — Michael He then moved to New York as a big learning curve.” Finney and Rick CEO of Greater Rochester Enterprise, He said leading local economic James Epolito, newly appoint- and Australia. In Michigan, Snyder. an economic-development organi- developers could be candidates, al- ed CEO of Lansing-based Delta Delta has offices in Okemos and Snyder is a zation, before being recruited to though they may make more money Dental of Michigan, said his five Farmington Hills. former COO and Spark by Snyder in 2005. in their current posts and could be years leading Once he assumes duties at president of “I prefer not to speculate,” Finney looking at taking on a job potential- the Michigan Delta Dental later in April, Gateway Comput- told Crain’s Friday when asked ly lasting less than two years and “a Economic De- Epolito said his main responsi- ers who helped velopment bility will be to guide growth in about replacing Epolito. “No one lot of headaches for less money.” take that compa- Corp. “was the Michigan and to provide sales has contacted me about the job. I He said people within the MEDC ny public before most chal- assistance for Delta’s expansion have not contemplated making a should also be considered. returning to lenging job in plans. Finney change from what I’m doing here. Top leaders and MEDC names Ann Arbor in my life.” “I am going to work hand-in- “I respect what Jim and his mentioned include: Lisa Dancsok, 1997 to found But Epolito glove with COO (and CFO) Lau- team were up against in these chal- Avalon Invest- senior vice president of marketing said he is ex- ra Czelada,” Epolito said. lenging times. He made progress, ments Inc., a ven- and communications; Debra Dans- cited about In a statement, Fleszar said and I would have loved to see him Epolito ture-capital by, senior vice president and COO; taking over Epolito’s “extensive back- stay another year or so, quite company with a and Jeff Mason, senior vice presi- Delta Dental’s top spot in Michi- ground in health care, insur- $100 million frankly.” dent and chief business develop- gan. His last day at MEDC will ance and government make him fund. In 2000, he Epolito said he will help the ment officer. be April 1. an ideal choice for this impor- co-founded board screen potential replace- In response to Crain’s query as “Now I come to Delta and tant leadership position.” Ardesta L.L.C., ments and stay on for awhile after to whether they would be interest- (CEO Dr. Tom Fleszar) has got Prior to coming to the MEDC, another VC firm the new CEO is hired. ed in Epolito’s post, the three said Snyder this company going great guns,” Epolito was CEO of the Accident that invests in Bridget Beckman, public infor- in statements and comments that Epolito said. “This company is Fund Insurance Co. of America, a micro- and nanotechnologies. mation officer at the MEDC, said they were dedicated to carrying very advanced culturally and for-profit workers’ compensa- In 2005, Snyder co-founded Ann the MEDC executive committee in- out the strategic plan developed from a customer-service stand- tion subsidiary with Blue Cross Arbor Spark, an economic-develop- tends to look for a replacement for under Epolito’s leadership and are point.” Blue Shield of Michigan. He also ment organization, and serves as Epolito “internally and externally, committed to working at the With 7.6 million enrollees, was an executive with Blue Care its chairman. He was also chair- and not just within Michigan but MEDC. Delta Dental also operates in In- Network. man of the MEDC’s executive com- also nationally.” Reporter Amy Lane contributed diana, Ohio, Illinois, Tennessee — Jay Greene mittee during Doug Rothwell’s Epolito’s base salary is $200,000, to this story.

ow may we help your business grow?

Huntington has proudly helped the business community successfully manage their banking since 1866. We’ve been recognized by the SBA as the top lender in Ohio, Indiana, Kentucky and Michigan and as a repeat National Top 20 lender. We’ve also been recognized by Greenwich Associates with numerous awards for exceptional service to businesses in 2007 and 2008. We’re grateful to our customers for the honor. So stop by or call a Huntington banker today. We’re not just ready to be the bank you can count on for your business needs. We’re ready to be the best.

1-800-480-1626 | huntington.com

Greenwich Associates is a leading worldwide strategic consulting and research firm specializing in financial services. Excellence award selection was based upon the results of the 2008 Middle Market Business Banking Study, of firms $10-500 million in annual sales, conducted by Greenwich Associates. Banks selected for an award had to have a significantly different percentage of excellent ratings than the mean for all banks at a 90% confidence level. Small Business Administration ranking is based on the 2008 Coleman Report 500 for Top 50 7(a) Lenders by Number of Loans and Loan Volume.

The Huntington National Bank is an Equal Housing Lender and Member FDIC. ,® Huntington® and A bank invested in people® are federally registered service marks of Huntington Bancshares Incorporated. ©2008 Huntington Bancshares Incorporated. DBpageAD.qxd 1/13/2009 2:04 PM Page 1

Wherever in the world you compete, Michigan can give you the Upper Hand. 342 IN A SERIES OF THOUSANDS

How the world’s hottest online promotion company was able to net more in Michigan.

Think you need a West Coast zip code for a successful web business? Think again. ePrize chose Michigan, where they found a large pool of creative talent and great lifestyle advantages. It paid off. Today, they’re the #1 interactive promotion company in the world.

There’s never been a better time to move your business to Michigan. Visit MichiganAdvantage.org to learn about all the advantages we offer, including aggressive fi nancial and economic incentives available right now. Because wherever in the world you compete, Michigan can give you the Upper Hand.

Josh Linkner Founder and CEO ePrize

MichiganAdvantage.org

MICH01932_ePrizeCrains.F1.indd 1 1/13/09 1:14:47 PM 20090119-NEWS--0008-NAT-CCI-CD_-- 1/16/2009 4:27 PM Page 1

Page 8 CRAIN’S DETROIT BUSINESS January 19, 2009 OPINION Obama may help Detroit 3 go green arack Obama makes history this week when he’s in- augurated as this country’s 44th president. B The symbolism — that the United States is still a nation whose values include opportunity for all — is staggering. More pragmatically, Obama’s forward thinking can mean more federal dollars invested in the Detroit 3’s greener auto- motive future. Stimulus-plan dollars could also mean dollars for infrastructure and new public transit. At the same time, based on his interview last week with The Washington Post, the 44th president is sounding more like a fiscal conservative every day. He even threw a bone to busi- ness: Though he favors much-feared legislation to make it eas- ier for workers to unionize, “If we’re losing half a million jobs a month, then there are no jobs to unionize, so my focus first is on those key economic priority items.” Those priorities include convening a “fiscal responsibility summit” before delivering his first budget to Congress, and he also hopes to create a new “bargain” with the American people to rein in costly entitlement programs like Social Security and Medicare. “What we have done is kicked this can down the road. We LETTERS are now at the end of the road and are not in a position to kick it any further,” he told the Post, adding he’s willing to spend some of his considerable political capital to make tough deci- Newsmakers: Where’s Worthy? sions. Re-elected Democratic House Speaker Andy Dillon sound- Editor: certainly made), the bigger news ed similar calls in Michigan. He wants to balance the state I am an avid reader and paid Crain’s Detroit Business in my opinion is that the truth fi- budget by summer and overhaul the state’s tax system. subscriber, a 2008 host of your cel- welcomes letters to the editor. nally prevailed and justice was in- All letters will be considered for That’s good news. The numbers show consumers are tight- ebrated “Crain’s Detroit Business deed finally served under the lead- publication, provided they are ening their financial belts and saving more while spending House Party” event, an enthusias- ership of Ms. Worthy. tic attendee of Crain’s Detroit Busi- signed and do not defame less. They want government to do the same thing. individuals or organizations. F. Masha Olaniran ness events and, of course, a busi- Managing partner and senior consultant Letters may be edited for length Saving versus spending is bad for the auto industry, of ness leader in our community. MacroStrategy L.L.C. and clarity. course, but only when people feel confident about the future However, as I excitedly reached Detroit will they start buying cars again. in my mailbox to pull out my Write: Editor, Crain’s Detroit GM managers sacrifice Crain’s (as is my weekly routine), I Business, 1155 Gratiot Ave., was quite perturbed to read about Detroit, MI 48207-2997. Editor: the selections that you made for E-mail: [email protected] I am disappointed in the “Shar- Dingell has earned our thanks ing the pain” blurb in your Jan. 5 your “2008 Newsmakers of the issue highlighting what Crain’s re- Year” front page article. Christine Beatty from office and fi- Speaking of political courage, we proudly announce U.S. gards as “absurdities” in 2008. While such names as L. Brooks nally saved us all after 10 long The item paints a picture that Rep. John Dingell as the Crain’s 2008 Newsmaker of the Year. Patterson, Mary Sue Coleman, months of unprecedented political the GM managers have not shared Dingell’s support of this region’s most important industry Richard Dauch, John Dingell, Dan wrangling. in the pain to downsize GM. If you is well-known. But he’s also been a supporter of other key ini- Gilbert, etc., represent household Wayne County Circuit Judge check your facts, managers have tiatives that benefit Southeast Michigan’s economy, such as names in our community for their Timothy Kenny said it best when business or governmental acumen shared in that pain for years the Detroit River International Wildlife Refuge that has he described the Kilpatrick-Beatty and accomplishments, I think while the UAW stood by and perjury case as the “triumph of spurred a cleaner waterway and eco-tourism. there was a glaring omission on watched. The companies, nonprofits and individuals who have bene- your list: Wayne County Prosecu- truth over political power.” The salaried forces have taken cuts to benefits that the UAW did fited from his leadership can thank him in person at the Feb. tor Kym Worthy. So while you chose to select Kwame Kilpatrick as one of your not have to take because of their 18 Newsmaker luncheon in his honor. Details are on Page 1 In my humble opinion, Worthy and her team worked tirelessly to 10 newsmakers of the year for ob- contract. The GM managers saw and in an advertisement on Page 21. remove Kwame Kilpatrick and vious reasons (a lot of news was See Letters, Page 9

KEITH CRAIN: You’ll really like the auto show this year For all sorts of obvious reasons, year. It’s a lot easier to take advantage of this show. This one is without a doubt jeopardizing this most important there have been some financial see all the new cars, of wonderful opportunity. the most important automobile activity for Southeast Michigan. cutbacks at the North American which there are plenty. It’s well worth the trip show in North America. Last This show contributes somewhere International Auto Show at Cobo If you have an urge to downtown. week, there were well over 5,000 between $350 million and $500 mil- What people tend to Center this year. look at all the new elec- journalists visiting the show from lion to our economy. tric cars, this is the forget is that although Ironically, they have all turned all over the world, a staggering It is simply idiotic that anyone out for the better. place. We’re probably there is a dramatic number to visit our city. would want to delay or stop this No more waterfalls. The number not really going to be in- falloff in car and truck And don’t forget that this show important reconstruction effort. of double-decked displays is con- terested in electric cars sales in the past few brings hundreds of millions of dol- You’ve got a week to share in the siderably fewer. for quite a while, partic- months, plenty of folks lars to our local economy. People “greatest show of earth,” to bor- It makes for a much nicer show. ularly as long as gaso- are still buying vehicles. from all over our five counties ben- If you come for the cars — and line is hovering at And if you’re inter- efit greatly. That’s why it’s so im- row a line from a circus of another what other reason could there be? around $2 a gallon. ested in buying a new portant to expand and renovate kind. You’ll be glad you did. — you will be pleasantly surprised. But we’re lucky to have this car or truck, there is no better use Cobo Center right now. We can’t This show is bigger and better The show is much more open this magnificent show. All of us should of your time than a trip to the auto wait till tomorrow or we’ll risk than ever. 20090119-NEWS--0009-NAT-CCI-CD_-- 1/15/2009 5:13 PM Page 1

January 19, 2009 CRAIN’S DETROIT BUSINESS Page 9 MARY KRAMER: Detroit’s ‘obituary’ is being rewritten The New York Times ran an in- naissance and the De- the one-time steel capi- ments in and around Detroit, he Bob has an encyclopedic teresting story earlier this month troit Regional Chamber tal where you could lit- told Sorge: “My story is going to knowledge about Detroit and ter- that has made the rounds via e- recognize that this re- erally see the air you be harder to write now because of rific anecdotes on people he has mail: “For Pittsburgh, there’s life gion could market itself were breathing (ugh). what you’ve shown me.” covered over the years, from after steel.” as a health care destina- The promotion office That’s the point. Writing Detroit’s Dearborn’s Orville Hubbard to It’s about that city’s reinvention tion because of the top- identified specific key obituary is easy. Writing about the Detroit’s Coleman Young and no- of itself as a health care center, an rated hospitals and the media and then pitched complexity and contrasts in this re- torious figures in between, like education center and a city teem- academic-medical re- editors and reporters on gion is much, much harder. John DeLorean. ing with software companies and search going on in our a visit to experience the Bob will continue to write on other “new economy” startups. own backyards. “new” Pittsburgh. the legal beat for Focus sections So can Detroit learn from Pitts- I’ve written in the past That’s what Marge Ankeny is retired, but not gone in Crain’s. You can still reach burgh? about DNews, the new Sorge, the newly hired Last week, we reported in Rum- him at [email protected]. Actually, many of the initiatives media relations effort created as director of DNews in Detroit, did blings that one of our newsroom Mary Kramer is publisher of that are going on now — including part of Detroit Renaissance’s last week. Targeted media includ- veterans, reporter Bob Ankeny, Crain's Detroit Business. Catch her Detroit Renaissance Inc.’s “Road plans. Well, a model for that idea ed journalists in town for the auto retired. Bob had worked for take on business news at 6:50 a.m. to Renaissance” plan — are focus- came from — ta-da! — Pittsburgh! show from Germany and China. Crain’s Detroit Business for 13 Mondays on the Paul W. Smith show ing on just those things. The city created a promotion of- After a German reporter spent years, coming to us from The De- on WJR AM 760 and in her blog at And everyone from Brooks Pat- fice in the 1980s to tell a new and four hours immersed in TechTown troit News in 1995 in the wake of www.crainsdetroit.com/kramer. terson in Oakland County to Re- different story about Pittsburgh ... and tours of other major invest- the daily newspapers’ strike. E-mail her at [email protected].

LETTERS CONTINUED ■ From Page 8 between 30 percent and 50 percent of their pay cut by suspension of all pay raises and bonuses long be- fore GM participated in govern- ment loan discussions. Every manager pays a monthly amount toward the lease of his or her vehicle and until recently was Smaller footprint. required to buy or lease a second vehicle every two years to partici- pate in the company car program. In many cases it would be better to opt out of the car program and buy Bigger attitude. a car and be able to hang on to it for five years or more. The comparisons could go on Introducing the all-new GLK. Starting at $33,900.* and on. The bottom line is every- one has been asked to sacrifice. On the street, it is more compact than the average SUV. But as it fills your rearview mirror in the passing lane, there’s Just because the salaried people nothing small about it. With its self-adjusting sport suspension, the GLK plants its 19" tires firmly on any surface. don’t have Ron Gettelfinger out A traction-control system that monitors wheel slip 6,000 times a minute helps make it impervious to most any weather there detailing their sacrifices doesn’t mean they don’t exist. condition. And its interior delivers the utmost in technology, including an available Multimedia Package with a 600-watt I am a new subscriber and am multichannel surround-sound system. The all-new GLK. Great engineering is great engineering at any size. MBUSA.com disappointed in your not-very- carefully disguised divisiveness. It is really counterproductive at this time when we need unity. Julie Killian MRPR Group CPAs & Advisors Southfield ‘Absurdities’ addendum Editor: There was one absurdity not mentioned by Tom Henderson: the Kid Rock-Wayne State University “Made in Detroit” scholarship. A few boxes of donated T-shirts and outerwear apparel do not add up to an endowment. What’s also alarming are media reports that Kid Rock has abusive- ly challenged the Atlanta judge who presides over his 2008 court sentence, which calls for 80 hours of community service and anger management training. This action certainly doesn’t bode well for the reputation of Wayne State Univer- sity. His actions certainly indicate that he is not the academic role model that should be associated with WSU. Hopefully, WSU Board of Gover- nors member Debbie Dingell will discuss the pattern of alarming be- havior that Kid Rock exhibits at an upcoming board meeting and the Mercedes-Benz of Bloomfield Hills Mercedes-Benz of Novi Mercedes-Benz of Rochester board will then encourage WSU 36600 N. Woodward Ave. 39500 Grand River Ave. 595 S. Rochester Rd. Vice President of Alumni and Community Affairs David Ripple (248) 644-8400 (248) 426-9600 (248) 652-3800 to consider rescinding the WSU- Kid Rock scholarship. GLK 350 shown in Mars Red paint with optional running boards and Appearance, Lighting and Premium 1 Packages. *MSRP for a 2010 GLK 350 2-wheel drive, available in approximately April. Excludes all options, taxes, title, regis., Kenneth Hreha transportation charge and dealer prep. GLK 350 4-wheel drive is currently available starting at an MSRP of $35,900. Excludes all options, taxes, title, regis., transportation charge and dealer prep. ©2009 Authorized Mercedes-Benz Dealers Dryden For more information, call 1-800-FOR-MERCEDES, or visit MBUSA.com. DBpageAD.qxd 1/13/2009 12:08 PM Page 1 20090119-NEWS--0011-NAT-CCI-CD_-- 1/15/2009 3:47 PM Page 1

January 19, 2009 CRAIN’S DETROIT BUSINESS Page 11 Extra Physician practice managers are steeling themselves for rocky times, Page 16.

People

Bruce Hill has been appointed interim CEO at Flint-based Tightening the revenue cycle HealthPlus of Michigan to replace David Crosby, who left to become CEO of HealthAmerica’s Hospitals seek central Pennsylvania Hill region. Hill is a to turn patients, HealthPlus vice president. Chairman Gerald Piesko credited Crosby with improving HealthPlus’ insurers into more growth and profitability, including the creation of a PPO and expansion into Southeast Michigan. reliable payers Crosby said he was recruited for the HealthAmerica job. Ⅲ Curtis Hertel and John Schwarz, BY JAY GREENE M.D., have been named community-at- CRAIN’S DETROIT BUSINESS large members of the Wayne State University Physician Group. Hertel is ith the jobless rate in Michigan hit- executive director of the ting levels not seen in two decades Detroit/Wayne County Port Authority and people losing their health in- and a former speaker of the Michigan surance or reducing coverage to House of Representatives. Schwarz is W a former U.S. Representative and save on premium dollars, hospitals are over- state legislator. hauling their billing and collection systems to Ⅲ Kenneth Pienta stem the rising tide of bad debt and charity care has been named that is chipping away at already slim and declin- associate dean ing profit margins. for clinical and Most hospitals in Southeast Michigan have translational the same goal: improve cash flow, enroll more research at the eligible people for Medicaid or other charity University of programs, increase customer satisfaction and Michigan Medical help patients pay their bills. School and Trinity Health in Novi and Ascension Health, the director of the Michigan Institute parent company of Warren-based St. John Health, are developing a systemwide method to plug for Clinical and Pienta Health Research. leaks and enhance billing and collection, other- Pienta is a professor of internal wise known as the revenue cycle process. medicine and urology; director, Oakwood Healthcare Inc. in Dearborn and Royal urologic oncology program, University Oak-based William Beaumont Hospitals also are of Michigan Comprehensive Cancer tweaking revenue cycle processes to improve Center; among other titles at UM. cash flow and customer satisfaction, and to help Ⅲ Children’s Hospital of Michigan patients manage out-of-pocket expenses. pediatric surgeon Michael Klein has The revenue cycle process at hospitals starts left his long-time post as surgeon-in- when patients register to be admitted or to un- chief to become director of the dergo a procedure and insurance eligibility is Advanced Surgical Technology verified. If a patient is uninsured, hospitals seek Institute, a collaboration between the Detroit Medical Center, Barbara Ann to determine method of payment. Karmanos Cancer Institute, Wayne As the patient receives services, employees NATHAN SKID/CRAIN’S DETROIT BUSINESS State University and Center for Smart record charges and then submit bills to insurers At Oakwood Healthcare, Lynn Flynn (standing), corporate director of rev- Sensors and Integrated Microsystems. and patients for reimburse- enue, says one way the hospital system is improving its revenue cycle is Ⅲ Kathleen ment. The cycle ends after the by telling patients how much they will owe before undergoing a procedure. Yaremchuck, head bill is sent out and collection of otolaryngology- is sought. Bad debt occurs head and neck when patients or insurers fail surgery at Henry to pay and hospitals write off A NEW CYCLE FOR REVENUE Ford Hospital in uncollected revenue. Detroit, has been “We are shifting some of How hospitals are designing the new appointed to the revenuerevenue cyclecycle process:process: National Quality our revenue cycle staff to the Forum’s steering front end (registration) from 1 PatientsPatients areare referredreferred oror scheduledscheduled forfor anan committee for a the back end (collections) to electiveelective procedure,procedure, surgerysurgery oror admission.admission. project seeking to Vitale check eligibility and collect 2 Registration staff verifies insurance Yaremchuck identify top revenue up front,” said Nick Vitale, Beaumont eligibilityeligibility oror methodmethod ofof payment.payment. ambulatory care practices using senior vice president for financial operations. 3 IfIf insured,insured, staffstaff determinesdetermines overalloverall costscosts electronic clinical data. Like other area hospitals, Beaumont has de- ofof thethe admissionadmission oror procedureprocedure andand thethe Ⅲ Carol Bradford has been named the cided to improve its patient registration process amountamount ofof thethe patient’spatient’s co-paymentco-payment oror new chair of the University of Michigan by doing a better job at checking insurance eligi- deductible.deductible. SomeSome hospitalshospitals areare collectingcollecting this amount before services begin. Medical School Department of bility and then collecting unpaid cash balances this amount before services begin. Otolaryngology. Bradford had been or negotiating payment arrangements for sched- 4 IfIf aa patientpatient isis uninsured,uninsured, hospitalshospitals seekseek director of the University of Michigan to determine a method of payment and uled procedures. to determine a method of payment and Head and Neck Surgery Division, suggestsuggest alternatives,alternatives, includingincluding MedicaidMedicaid among other titles. “We are evaluating the best way to collect up- oror charitycharity carecare discountdiscount programs.programs. front for elective procedures,” Vitale said. “We Ⅲ John Greden, executive director of 5 Patients are charged for services through the University of Michigan have to be sensitive because patients are dealing medical coding procedures. Comprehensive Depression Center, with health care issues.” 6 Bills are sent out and collection is has joined the national board of Hospitals also are enhancing their revenue sought.sought. directors for the American Foundation for Suicide Prevention. See Revenue, Page 12 20090119-NEWS--0012-NAT-CCI-CD_-- 1/15/2009 3:45 PM Page 1

Page 12 CRAIN’S DETROIT BUSINESS January 19, 2009 Health Care Extra Revenue: Getting paid ■ From Page 11

cycle to comply with ever-chang- revenue.” ing federal billing regulations and Based on the success here, As- a cornucopia of different insur- cension is using Accretive to assist ance company reimbursement sys- most of its 66 hospitals nationwide. tems. More than 18 months ago, Trini- For example, Medicare is ex- ty Health also began a systemwide pected to begin this year its Recov- project to modernize and central- ery Audit Contractor program. ize the revenue cycle process for RAC, as it is known, allows third- its 44 hospitals in seven states. party auditors hired by the Centers Twelve of Trinity’s hospitals are for Medicare and Medicaid Services in Michigan. to keep 9.4 percent to 12.4 percent Paul Sahney, Trinity’s chief rev- of payments they flag as improper. enue officer and vice president of Providers are required to repay finance, said the health system Medicare for overbilled services. created a shared services organi- Michigan hospitals were sched- zation to centralize coding and uled to be audited starting last No- billing services. vember, but the program was post- Last July, Trinity’s Unified Rev- poned because of legal challenges. enue Organization began to stan- Hospitals also are facing pres- dardize software and revenue cy- sure by bond rating agencies to re- cle processes across the system, he duce costs and increase revenue. said. For example, last fall Moody’s In- “We believe it will ensure full vestors Service downgraded the out- compliance and bring $500 million look to negative from stable for non- in economic value over five profit and investor-owned hospital years,” Sahney said. “We believe companies because of the weaken- our patient experience will be ing economy. much better.” The economic value Moody’s said increasing bad includes reduction in bad debt, debt and weak patient volumes charity care and insurance compa- created the dim reimbursement ny claims’ rejections, he said. outlook. The agency recommended Some 2,500 to 3,000 employees hospitals cut costs and capital ex- work in revenue cycle depart- penditures to boost cash flow. ments at Trinity’s hospitals. The increasing amount of bad “Some of these people will work debt and charity care at Beaumont from home, some at the hospitals In-House Hospice was named a Detroit Free Press 2008 Top Work Place. Hospitals is fairly typical for oth- and some we will move to a region- ers in Southeast Michigan. al center and the central office in Over the past four years, Beau- Farmington Hills,” Sahney said. mont’s uncompensated care has “This is not intended to save mon- more than doubled to $33.2 million ey on labor.” in 2008 from $16.9 million. Uncom- Sahney said the process will pensated care includes charity also help reduce the number of re- care and bad debt. jected insurance claims by more “We expect an increase of 3 to 4 closely following each insurer’s re- percent (this year),” Vitale said. imbursement rules. Bad debt has increased, in part, be- “Insurance companies make cause insured patients have re- mistakes, so we are setting up a duced coverage, leading to higher central office to identify common deductibles and co-pays, amounts problems so we can pick up the some cannot or do not pay, he said. phone and call Aetna and deal Vitale said the economy also is a with the 1,000 claims that have factor. Michigan’s unemployment Patients know them as some of the similar issues,” he said. rate grew to 9.6 percent last No- Trinity also is working with a vember, compared with 7.4 per- world’s best physicians and nurses. national insurance company to cent a year earlier. lower administrative costs of pro- I know them as my co-workers. To collect more revenue, St. cessing claims between insurers John began a pilot project in 2004 and the hospitals, Sahney said. to outsource its revenue cycle “We each spend 4 percent to 5 Welcome to my dream job. process to Accretive Health, a Chica- percent in managing our revenue. go-based management company. We can reduce that,” he said. St. John’s parent, St. Louis-based Sahney said another large Ascension, has partial ownership health care system also is piloting of the company, officials said. a similar program with another “Accretive identifies those pa- national insurer. tients when they “We want to integrate our ef- come in as to Imagine a health and wellness center that not education, peer mentoring and advancement. If forts with insurance companies whether they only saves, but also changes lives. Imagine a you’re interested in making a difference – to your and the other system and have a should apply for model for the industry,” he said. hospital that provides high-quality care in a true patients and your career – consider joining the charity care pro- Oakwood’s Lynn Flynn, corpo- healing environment. Imagine an opportunity to team at HENRY FORD WEST BLOOMFIELD HOSPITAL. grams or other rate director of revenue, said the shape your career while also shaping the future payment sources,” St. four-hospital system also is im- of health care. YOUR DREAM JOB IS JUST AROUND proving its revenue cycle in a vari- THE CORNER WITH: John CEO Patri- cia Maryland ety of ways, including by inform- ing patients how much they will HENRY FORD WEST BLOOMFIELD HOSPITAL is s#OMPETITIVEBENElTSANDPAY said. Maryland owe before their procedures. s#ONTINUINGEDUCATIONOPPORTUNITIES Accretive also looking for outstanding individuals who desire Typically, patients enter the s&LEXIBLESCHEDULES provides preregistration, schedul- to be part of the next evolution in medicine. ing, admissions, contractual com- hospital not knowing how much You’ll have the opportunity to work alongside s!NDMORE pliance, billing and collection ser- their service will cost. They are sometimes surprised by the a team of leading physicians and nurses vices. “It has improved our ability to amount they are billed, she said. and to expand your career through training, be reimbursed for the care we pro- “Patients want to know up front vide,” Maryland said. “It is keep- what they owe,” said Sahney. “The ing our hospitals viable. We are health care system is so complex, For more information or to apply, log on to henryfordcareers.com seeing a significant increase in patients have no idea as they get people coming into the ER. We are hospitalized, and they have worry Henry Ford Health System is an AA/EEO employer. able to get some type of coverage about it.” for them and it has stabilized our See Page 13 20090119-NEWS--0012,0013-NAT-CCI-CD_-- 1/15/2009 4:27 PM Page 2

January 19, 2009 CRAIN’S DETROIT BUSINESS Page 13 Health Care Extra

■ From Page 12 co-pays or deductibles up front, cent discount to admitted pa- Sahney said. tients who don’t have insurance Beaumont gets OK to transfer CON Sahney and Flynn said the in- “If you owe us $20 or $50, we but have jobs and ability to pay. dustry has an obligation to give will ask them if they can pay One of the keys to Beaumont Beaumont West Bloomfield Ambula- patients an estimate — like con- ahead of time,” Sahney said. Hospitals’ financial turnaround tory Surgery Center L.L.C., a for-profit tractors or auto repair shops do CON Roundup “They will be able to write a program is improving its rev- joint venture with William Beaumont — of how much they will owe for check, take out a low-interest enue cycle, Vitale said. In No- Hospitals which has 17 surgeons on Levan Internists P.C., Livonia: elective medical procedures. loan or go to a payment plan.” vember, Beaumont announced its medical staff, has received state Add CT scanner, $1.7 million. Informing patients of health Another way to improve col- certificate-of-need approval to layoffs of 165 employees and a Filings approved: care costs led Oakwood last No- lections is to enroll more eligible transfer the surgical services CON plan to cut costs by $46 million. Maple-Drake Real Estate L.L.C., vember to develop a financial in- patients in the state Medicaid from the Royal Oak-based hospital. Beaumont is using a recently West Bloomfield: New 180-bed nurs- formed consent form, Flynn said. program. The surgery center is at the Beau- installed Epic Systems Corp. elec- ing home, $11.6 million. “For scheduled and elective “Once you qualify the pa- mont Medical Center at 6900 Orchard tronic medical record system Waltonwood at Twelve Oaks, cases like cardiology, orthope- tients, get them insured, they are Lake Road in West Bloomfield that includes a system that inte- Novi: New 96-bed nursing home, dics (and surgery), five days pri- better served. There is better sat- Township. grates scheduling, admitting, $8.9 million. or to it being performed we talk isfaction and our revenue goes Beaumont Hospital owns 60 per- St. Mary’s Nursing & Rehabilita- with patients about their finan- up,” Sahney said. billing and eligibility data. cent of the partnership; the sur- tion, St. Clair Shores: Replace nurs- cial liability,” Flynn said. “We Oakwood saved $1 million an- During tough economic times, geons own the rest. ing home, add 80 beds, $11.5 mil- say, ‘here is the insurance, here nually when it ended a contract hospitals always look to do point- The partnership has entered into lion. is the co-insurance, the 20 per- in 2007 a vendor that conducted of-service cash collection and a 35-year capital lease worth $59.3 Rainbow Rehabilitation Center, cent you owe after insurance Medicaid eligibility applica- ways to improve coding and doc- million for the surgery center, said Ypsilanti: New 40-bed nursing pays, and this is what you will tions. umentation, Vitale said. Eric Hunt, vice president of opera- home, $16.6 million. owe.’” “We in-sourced that and edu- “What is new is using the elec- tions for Beaumont’s ambulatory Rainbow Rehabilitation Center, Flynn said Oakwood then cated our registration staff to tronic medical record method to centers. Annual lease payments are Farmington: New 40-bed nursing gives patients the option to pay look for patients who might qual- capture the ordering of tests, pro- $1.69 million. home, $16.6 million. immediately or pay when they ify for Medicaid and charity care viding services and procedures In June, Beaumont spent $40 mil- Brighton Senior Care, Genoa check in. programs,” Flynn said. to more accurately bill what we lion to expand services at the med- “This satisfies patients,” she Township: New 88-bed nursing In 2008, Oakwood enrolled 33 do,” Vitale said. ical center, including outpatient gen- said. “They would rather pay it home, $11.9 million. percent more patients into Med- On Feb. 1, Vitale said the EMR eral surgery and plastic surgery before they receive the bill.” icaid than the previous year, Fly- St. Anthony Nursing. Add 105 system will go live at its Royal along with ophthalmology, orthope- Some patients will defer the nn said. beds, $8 million. Oak and Troy hospitals. Later dics, gastroenterology and podiatry. medical procedure for financial Last August, Oakwood out- Karmanos Cancer Center, Novi: this year, Beaumont will deter- — Jay Greene reasons, she said. “If they have sourced its collections depart- Add second MRT, $12.8 million. mine how much up front to col- bad-debt dollars, we will work on ment to Flint-based Client Finan- Following are selected filings Filings disapproved: a payment schedule,” she said. cial Services. The 10 former lect for scheduled services. and decisions from November and Heartland Health Care Center, Since last summer, Flynn said, collections’ employees now work “We have had a lot of discus- December. Brighton: New 120-bed nursing Oakwood has seen a reduction in in patient registration to identify sion about the financial impact Letters of intent: home, $15 million. bad debt and an improvement in non-emergency patients who of the new systems. We call it our Henry Ford Hospital-West Bloom- Medilodge of Howell. Add 140 accounts receivables, although need financial assistance and IT dividend,” he said. “We expect field: Add MRI service, $3.5 million. nursing home beds. figures are not yet available. then provide cost estimates. a good return on investment.” Wil-Mar Convalescent Home, Ma- Livingston Care Center, Howell: Trinity also plans to ask pa- Through its OakAssist pro- Jay Greene: (313) 446-0325, comb County: Replace nursing New 144-bed nursing home, $7.6. tients later this year to pay their gram, Oakwood offers a 25 per- [email protected] home and add 71 beds, $11.6 million. million. 20090119-NEWS--0014-NAT-CCI-CD_-- 1/15/2009 3:42 PM Page 1

Page 14 CRAIN’S DETROIT BUSINESS January 19, 2009 Health Care Extra UM tests child seizure drugs; WSU reports on war disorders Doctors at the University of Michigan Health ployed farther away. ence. Henry Ford funded the study. System, Children’s Hospital, and nine other Research Roundup The study concluded that Iraqi soldiers Henry Ford neurologist Peter LeWitt hospitals around the country will compare face many of the same mental health disor- writes that the drug levodopa should be Lorazepam (often known as Ativan) and Di- Lead researcher: Arul Chinnaiyan, director of ders as their Allied counterparts and had used not only for its traditional application azepam (often known as Valium) to deter- the Michigan Center for Translational Pathology many more mental disorders than civilians. in treating Parkinson’s disease, but also for mine the best emergency treatment for chil- and S.P. Hicks Endowed Professor of Pathol- Those closest to Kuwait were at a higher confirming a suspected diagnosis. Published: dren who suffer severe, prolonged, possibly ogy. risk, which researchers believe suggests a New England Journal of Medicine, Dec. 4. life-threatening seizures. Additional authors: Christopher Maher, re- link to war-specific environmental expo- Researchers at the University of Michi- Both drugs are used to treat the seizures, sures such as oil well smoke and aerial search fellow; Chandan Kumar-Sinha, re- gan Comprehensive Cancer Center found but the study seeks to determine which drug bombings. search assistant professor of pathology; that men who lived alone are less likely to is more effective and safe by randomly as- Sustained stress from the war and post-war Xuhong Cao, research specialist; Shanker get screened for prostate cancer than men signing children to one or the other. Kalyana-Sundaram, data architect; Bo Han, hardships such as oppression, unemploy- who were married or lived with a signifi- The hospitals have spent several months research fellow; Xiaojun Jing, Lee Sam, Ter- ment and lack of food also are contributors. cant other. Lead author: Lauren Wallner, grad- obtaining families’ permission in advance be- rence Barrette, systems analysts; and Nallasi- Lead researcher: Bengt Arnetz, professor of uate research associate, UM. Published: Can- cause the drugs must be administered within vam Palanisamy, research assistant profes- family medicine and public health sciences cer Epidemiology, Biomarkers and seconds of a child’s arrival at a hospital and sor of pathology. in the School of Medicine. Prevention, a journal of the American Associa- there is not time to get informed consent from Funding: National Institutes of Health, Depart- Additional authors: Thamer Hamdan, Basrah parents. ment of Defense and Early Detection Research Medical College; Mary Grzybowski, Department tion for Cancer Research, December. Lead researchers: Rachel Stanley, assistant Network. of Emergency Medicine, WSU; Rick Severson professor of emergency medicine and pedi- and Hikmet Jamil, Department of Family atrics, UM; Prashant Mahajan, vice chief of the Medicine and Public Health Sciences, WSU; Grants emergency department, Children’s Hospital. War mental health Sawsan Shukri, Associated Surgery Center, A team of researchers from Wayne State Dearborn Heights. The University of Michigan’s Southwest Cancer research University, working with Basrah Medical Col- Oncology Group has received a $2.5 million Researchers at the University of Michigan lege in Iraq, released a study published in Other research grant to form the Bill & Melinda Gates Founda- Comprehensive Cancer Center have identified The New Iraqi Journal of Medicine on war- tion to research the most effective way to a series of genes that become fused when related mental health disorders among A Henry Ford Hospital study shows that eradicate a common bacterial infection as- their chromosomes trade places with each Iraqis 10 years after the Gulf War. the number of heart attack patients admit- sociated with two-thirds of cases of stomach other. These recurrent fusions are thought Previous studies had been confined to Al- ted to state hospitals could be reduced by cancer. to be the driving mechanism that causes cer- lied forces. 3,340 annually if a statewide public smoking Enrique Ostrea Jr., professor of pediatrics tain cancers to develop. The researchers aimed to determine ban were implemented. Researchers used a in Wayne State University’s School of Medi- The fusions could potentially serve as a whether mental health disorders differ be- statistical method called meta-analysis to cine, recently received a grant for more than marker for diagnosing cancer or as a target tween Iraqi soldiers deployed during the calculate the impact of a smoking ban. Lead $2.8 million from the National Institute of Child for drug development. Gulf War and Iraqi civilians. It also studied author: Mouaz Al-Mallah, director of cardiac Health and Human Development to investigate The study was published online at whether soldiers deployed closer to combat imaging research. Presented: Nov. 11 at the the damages to fetal neurological develop- www.nature.com. DOI: 10.1038/nature07638. exhibited more disorders than soldiers de- American Heart Association’s annual confer- ment caused by pesticides. 20090119-NEWS--0015-NAT-CCI-CD_-- 1/15/2009 3:41 PM Page 1

January 19, 2009 CRAIN’S DETROIT BUSINESS Page 15 Health Care Extra Home health agencies prepare for performance plan

BY MARTI BENEDETTI Pekar said the 111-year-old VNA SPECIAL TO CRAIN’S DETROIT BUSINESS MEDICARE PAYMENTS MEDICARE MEASUREMENTS of Southeast Michigan has always been strong in home health quality Several home health agencies in Growth in Medicare payments to Michigan home health agencies Measurements that Medicare uses improvement. Southeast Michigan are taking to track quality improvement of 2005 2006 Increase home health agencies: “In addition to getting reports steps to boost quality of care in from (CMS) on how we are doing Expenditures: $564 million $600 million 6.4 percent Ⅲ Incidence of acute care case a home health pay-for-perfor- on quality measures, we actually mance program under Medicare Patients served: 141,460 146,020 3.2 percent hospitalization: Looks at percentage of patients admitted to have contracts with outcome ven- becomes a reali- Avg. reimbursement: $3,985 $4,328 8.6 percent the hospital. dors that help us break down our ty. Avg. visits per patient: 22 26 18.2 percent Ⅲ Incidence of emergency care: business further by using technol- “We’ve been Source: Centers for Medicare and Medicaid Services, Home Health Agency utilization data Looks at the percentage of ogy — so we know where we fare preparing for patients who need urgent, well and where we could im- this for a couple unplanned medical care. prove,” she said. years. It should Ⅲ Improvement in bathing: For example, outcome vendors agencies ... and we’ll all be kept on home health nurses back to school improve quality Indicates if patients are able to could show the agency is doing of care,” said our toes.” to become certified in wound osto- take care of themselves. Aside from pay-for-perfor- my and incontinence care. That well in reducing hospitalizations Linda Pekar, di- Ⅲ Improvement in ambulation and for orthopedic patients, “but heart mance, another way to improve gave the agency a total of three locomotion: Patient gets better at rector of organi- failure is a patient group we need quality is for Michigan to license specially certified nurses, which walking or moving around in a zational quality to work harder on to reduce hospi- Pekar for Oak Park- agencies. Michigan is one of only improved the quality of wound wheelchair safely. nine states that do not require it. care, he said. Ⅲ Improvement in transferring: talizations,” she said. based Visiting Nurses Association of Pekar said that in the last couple Southeast Michigan. Rayrat said the home health as- “We’re 6 percent above the state Refers to patients who improve at getting in and out of bed. Being of months the organization has Pekar is talking about the sociation will lobby this year for average on this,” Solecki said. able to get in and out of bed is an started using quarterly scorecards demonstration program being test- such a licensure bill. “The certified nurses have men- important first step in patients for its clinicians and nurses to see ed in seven states by the Centers for Dan Gillett, director of quality, tored other nurses causing our being able to care for themselves. how well they stand on quality Medicare and Medicaid Services, the education and compliance for scores to go up dramatically — 2 Ⅲ Improvement in management of measures. federal agency that administers McLaren Visiting Nurse & Hospice in percent in just the last year.” oral medications: Indicates a “Scorecards are innovative for Medicare and Medicaid. The seven Mt. Clemens, said the 104-year-old The home health nurses also patient is becoming more us. You can look at your whole states are Connecticut, Massachu- organization has been analyzing helped Henry Ford cut the cost of independent. agency’s clinical outcomes, but the setts, Illinois, Alabama, Georgia, the CMS demonstration project its wound care supplies by finding Ⅲ Improvement in status of surgical scorecards allow us to drive it Tennessee and California. with a focus on chronic care initia- the best wound care products at wounds: An important marker of down to a specific clinical team or The goal of the demonstration is tives. the lowest price. good overall care. clinician,” Pekar said. “We see to determine whether paying fi- “We’ve had specific quality im- Meanwhile, Melissa Myers, di- rector of nursing for Rochester Source: Centers for Medicare and (which) one has better outcomes nancial bonuses to home health provements on our teams,” he Medicaid Services, Outcome and Hills-based Guardian Angel Home keeping patients home.” agencies improves care of Medi- said. Assessment Information Set measures. Care Inc., said the for-profit compa- The scorecard system helped care beneficiaries. The program Some nonprofit home health ny is tracking its outcomes VNA of Southeast Michigan cut its started a year ago and is expected systems that care for high volumes through OASIS with an eye toward “In the future, with acute nurs- hospitalization rate 5 percent over to continue through year-end. of Medicare and Medicaid patients the pay-for-performance program. ing shortages and an aging popula- the past year, Pekar said. But the program will not be im- predict it won’t be easy to deliver Solecki and Pekar said their tion, we’re going to have to figure “Whether pay-for-performance plemented if the demonstration high-level care that yields the fed- agencies use Telehealth Services, a out how to see more patients with comes to fruition, we are ready,” fails to increase quality and cut eral incentive payments. Raleigh, N.C.-based provider of in- less staff,” Solecki said, adding Pekar said. “When we have to im- costs, said CMS officials, who de- “The patients teractive health care television for that using Telehealth is one way to prove our care, it benefits the clined to be quoted for this story. in our system patient education. manage costs. whole industry in the end.” Under the plan, home health are, in general, agencies will be paid bonuses out an (acutely ill) of savings Medicare generates by population,” reducing costly events such as said Greg Solec- Let Weight Watchers Help Your Employees Have a Healthy 2009 avoidable hospitalizations or ki, vice presi- emergency care. dent of home Home health agencies will be health care for tracked by how well they do in sev- Henry Ford Home Be a Part of en quality areas under CMS’ Out- Health Care in Solecki come and Assessment Information Detroit. Set, called OASIS. (See chart, above Solecki would like to see Henry right.) Ford Health System’s Medicare and NEW For example, agencies that rank Medicaid patients stay healthy in the top 20 percent for quality enough so they don’t need repeat- will share 75 percent of the incen- ed urgent home health care or tive pool savings, said CMS. The readmissions to the hospital. other 25 percent of the pool will be But Solecki knows that hospital- Program shared by the top 20 percent of izations or emergency care are a those making the biggest improve- reality for many of the patients it ments in patient care as measured serves. by the seven OASIS measures. As the largest Medicare-certi- Better employee health leads to If there are no savings, there fied home health provider in a healthier bottom line - and will be no incentive payments, Michigan, Henry Ford has a large Medicare officials said. number of low-income patients Weight Watchers can help. Mary Ann Rayrat, executive di- that need a high level of care. He rector of the east region for non- projected the organization will ad- profit Trinity Home Health Services in mit 16,000 Medicare home health Our Workplace Wellness Initiative: Livonia and past president of the care patients this year and provide s SAVESYOUMONEYONHEALTH Michigan Home Health Association, 250,000 home visits. care premiums said the jury is still out on whether “We’re not doing anything spe- the program will become fully im- cific for pay-for-performance,” s REDUCESABSENTEEISM plemented. Solecki said. “We’re (already) do- s INCREASESPRODUCTIVITY But she sees a need for it be- ing things like process improve- cause ‘“our health system is such a ment teams to improve our mess right now.” scores.” Over the past several years, For example, Henry Ford’s Rayrat said, there has been sub- scores on home health patients stantial growth in home health with surgical wounds improved 5 Call: Sheryl Fellows, agencies, especially in Southeast percent over the past two years, he Director of Corporate Communications & Marketing at 248.479.1356 Michigan. The state has 482 certi- said. or e-mail: [email protected] fied home health agencies, many “Over 40 percent of our patients of those with offices in Wayne, have wounds, so it became impor- Oakland and Macomb counties. tant to look at this (OASIS) mea- | 888-3-florine.com Pekar said, “We think pay-for- surement more carefully,” he said. 888-3-FLORINE ©2009 Weight Watchers International, Inc., owner of the WEIGHT WATCHERS registered trademarks. All rights reserved. performance will weed out the bad In 2007, Henry Ford sent two 20090119-NEWS--0016-NAT-CCI-CD_-- 1/15/2009 3:41 PM Page 1

Page 16 CRAIN’S DETROIT BUSINESS January 19, 2009 Health Care Extra Practice managers’ dilemma: Cut costs, not quality

BY ELIZABETH GARDNER Sappington, CEO of gloStream, a SPECIAL TO CRAIN’S DETROIT BUSINESS Bloomfield Hills-based practice ADMINISTRATOR COMPENSATION management consulting compa- Penny Murphy, manager of Pedi- ny. “They’re turning to a set of Total compensation for administrators of physician practices: atric Care Corner in West Bloom- tools and technology and people to 26 or more 7 to 25 6 or fewer field Township, often feels like one make their practices more effi- FT physicians FT physicians FT physicians of those jugglers on the old “Ed cient.” National mean: $138,959 $116,678 $89,640 Sullivan Show” who kept a dozen Practice managers are found in plates spinning at once. all sizes of physician practices, ac- Midwest mean: $194,123 $117,600 $92,537 With 60 patients coming cording to the Medical Group Manage- Single specialty mean: $171,437 $116,032 $90,062 through the five-physician prac- ment Association of Englewood, Colo. Multispecialty mean: $133,114 $116,702 $85,904 tice every day, she has to cope with In the Midwest, those who ad- such financial puzzles as insur- minister practices with 26 or more Source: Medical Group Management Association, Englewood, Colo. ance payments for vaccinations physicians made a median salary that don’t even cover the cost, or of $169,669 in 2008, while those in employees and handles an annual Insurance uncertainty is giving patients who are paying $10 a groups of seven to 25 physicians budget of $630 million. The prac- some patients a sense of urgency month on a bill that’s in the thou- made $112,500, MGMA said. Those tice sees 10,000 patients a day, and sands. that could be dangerous. in practices with six or fewer an increasing number of them fear “Our doctors have found that “When I sit down and look at physicians had a median salary of for their jobs. not only are some people losing costs, there isn’t anything that is- $81,000. The group has recently institut- their insurance, but others are an- n’t on the table,” she said. “I re- About 30 percent of physicians ed extended hours in the evenings ticipating losing it, and they want evaluate our number of employees NATHAN SKID/CRAIN’S DETROIT BUSINESS in the U.S. are in practices with and on Saturdays. Penny Murphy, manager of Pediatric their surgeries done sooner rather regularly, as well as what vendors more than one physician, accord- “We find that Care Corner, said her business than later,” said Jim Long, who we’re using, which phone compa- ing to the U.S. Centers for Disease people who are experience gives her an edge as she manages Family Orthopedic Associ- ny. I look at all that at least once a Control and Prevention. currently em- tries to cut costs and juggle expenses ates in Flint, a 12-physician prac- year, and figure out whether at the five-physician practice. Of those, 43 percent practice in ployed and have there’s a better, more efficient way groups of three to four physicians, insurance are tice that sees 4,000 patients a to do something.” meltdown causes their patients to 36 percent in groups of five to nine, reluctant to month. A nurse with a bachelor’s degree either lose their insurance entire- 18 percent in groups of 10 to 49, and leave work dur- “The surgeons want to make in business and a master’s degree ly or become more reluctant to 2.6 percent in groups of 50 or more, ing the day,” sure the patients are ready, be- in human resources, Murphy feels fork over those co-pays and de- according to the latest data from Nantais said. cause knee and hip procedures are for practice managers who started ductibles. the American Medical Association. During the significant surgeries with signifi- as nurses or physician assistants The professionals responsible Henry Ford Medical Group, with first 10 weeks of Nantais cant risks. It’s scary.” and were promoted with no extra for managing those practices are more than 1,000 physicians the extended With costs rising and reim- business training. guarding expenses closely, trying throughout the metropolitan area schedule, the medical group in- bursement stuck, or even decreas- “I have an edge in understand- not to hire unless absolutely neces- and a reputation for cutting-edge creased its visit volume by 8,000, ing, Long doesn’t know where ex- ing the numbers that I’m seeing sary and hoping that computer treatment and research, is in as and half were patients new to the tra income is going to come from. and figuring out ways to get them technology will help them cut good a position as any practice to practice. “The people who generate the down,” she said. costs and improve care. ride out the storm. Because the group employs its revenue are the doctors,” he said. Physician practices, historically “Practices are struggling with But even its COO, Tom Nantais, physicians, it has more flexibility “They start at 7 a.m. and work long recession-resistant, are steeling the whole concept of making mon- is looking at the coming year with to make such changes. Unlike hours. I don’t know how much themselves for rocky times in 2009 ey and providing high-quality apprehension. He oversees more practices structured as partner- harder these doctors can work.” as Southeast Michigan’s economic care in the process,” said Mike than 20 clinics and 4,000 full-time ships, Henry Ford is able to assign Long negotiates hard with the its physicians to cover those ex- practice’s vendors, for everything tended hours. from supplies to computer systems Nantais, a 26-year veteran of to health insurance for its own 74 Henry Ford Health System who previ- employees. ously served as the medical The practice’s location in Flint group’s CFO, estimates that he’s makes it particularly vulnerable going into his third year of dealing to the fortunes of General Motors with a recessionary climate. Corp., and Long already has seen a “We’re careful about our hiring decline in the number of GM em- rate and began right-sizing ployees and retirees visiting the through attrition a number of practice. months ago, so we are not current- “The challenges that the Big ly planning on laying anyone off,” Three are facing could be cata- he said. He’s also looking at payer strophic for the health care indus- relationships. While some, like try here,” he said. “We wouldn’t federally funded Medicare for pa- have enough work for our doctors, tients over 65, are paying the and patients would go without group adequately for now, others care and live in pain.” need to be rethought. Long is trying to recruit a new The medical group has recently surgeon to replace one who’s retir- signed a new contract with the ing, but the doom and gloom sur- Blue Care Network, and it expects rounding the area makes it diffi- Meetings by Doubletree this contract will boost both the cult. practice’s patient load and its re- To increase productivity and imbursement. L]Zi]ZgndjgZkZci^haVg\ZdghbVaa!Vii]Z9djWaZigZZ;dgiH]ZaWn$9Zigd^i9dlcidlc!lZ]VkZi]ZhZgk^XZh![VX^a^i^ZhVcY improve care, Family Orthope- The medical group also is break- ZmeZg^ZcXZidbV`Z^iV]j\ZhjXXZhh#L^i]ildaZkZahVcYdkZg'&!%%%hfjVgZ[ZZid[Xdc[ZgZcXZheVXZ!i]ZcZl9djWaZigZZ dics is putting in an electronic ing new ground by opening a clinic d[[ZghVkVg^Zind[hZi"jedei^dchidbZZindjgWjh^cZhhcZZYh#BZZi^c\gddbh^cXajYZ^cY^k^YjVaXa^bViZXdcigdah!iVWaZh medical records system, a step at Chrysler headquarters that l^i]]VgYlg^i^c\hjg[VXZh!*)^cX]A89eVcZahVcYl^gZYVcYl^gZaZhh>ciZgcZiVXXZhh#6aa^cXajh^kZ8dbeaZiZBZZi^c\ that only about one in five physi- competes with the retail clinics EVX`V\ZhbV`ZeaVcc^c\ndjgZkZciZVh^Zgi]VcZkZg#Ndj»aaZc_dni]Zhjeedgid[djgZmeZg^ZcXZYVcYViiZci^kZiZVbbZbWZgh cian offices have taken, according springing up in area stores. l]dVgZYZY^XViZYidbV`^c\ndjgZkZci[aVlaZhh#L]Zcndj]VkZVcZkZciVii]Z]^hidg^XVa to the CDC. Chrysler chose Henry Ford, even 9djWaZigZZ)-''+ “One doc I know compares get- GZhZgkVi^dch/&"-%%"'''"IG::=diZa9^gZXi/(&(.+("-.%% ly doesn’t have exclusive relation- ting an EMR to going from out- lll#YZigd^ihj^iZh#YdjWaZigZZ#Xdb ships with specialists or hospitals. door to indoor plumbing,” he said. ® ® Hilton HHonors membership, earning of Points & Miles , and redemption of points are subject to HHonors Terms and Conditions. We can deliver the same services “It makes a huge difference even- ©2008 Hilton Hotels Corporation and also offer more complex care tually, but there’s a mess for a down the road if needed.” while.” 20090119-NEWS--0017-NAT-CCI-CD_-- 1/15/2009 4:26 PM Page 1

January 19, 2009 CRAIN’S DETROIT BUSINESS Page 17

Monthly What are retailers doing to bounce back from slow holiday sales? See Wednesday’s SmallTalk e-newsletter and a video at www.crainsdetroit.com/smalltalk.

A CONVERSATION WITH

Chris Affinity for Holman, Michigan Economic Development Corp.

Chris Holman is the Michigan Economic Development Corp.’s small-business advocate. He small business spoke with Crain’s reporter Nancy Kaffer about state priorities for small business, the credit crunch and other hot topics. Peer-to-peer groups give biz owners real-world advice As you travel around the state, what are you hearing from small- BY NANCY KAFFER business owners ? We do forums CRAIN’S DETROIT BUSINESS and networking things around the state — last year we did seven in ammé Quinn Grzebyk knew different areas, and even went all a lot about the corporate the way to Marquette — and we T world when she launched solicit what the challenges are for her business, Plymouth-based Ver- small business. The top balWise L.L.C., in 2006, but she had lit- challenges are consistent pursuit tle experience with small business and retention of customers, which or entrepreneurialism. you would expect small business “A lot of starting a business is to say, but this year something finding the right resources, whether else cropped up — pursuit of capital and unavailability of it be the right person who does good capital. The other thing is people Web sites, someone who does great feel that Michigan needs to foster marketing, or having someone help a more entrepreneurial culture. you hone and clarify a strategy,” she That has come up over the last said. three years. They’re saying, we’re So Grzebyk joined an affinity out here struggling, but the group at Walsh College geared toward majority of us are doing OK and emerging entrepreneurs. we’re the ones supplying the She’s one of a growing number of jobs, but no one has given small business much respect. small-business owners and entre- preneurs who are turning to peer-to- How have business owners’ PHOTOS BY NATHAN SKID/CRAIN’S DETROIT BUSINESS priorities or concerns changed? peer groups for advice, counseling One of the big issues a year ago and support. Gathered for an affinity group meeting at Walsh College was fuel costs. Today, fuel costs The groups are evolving with are (top, from left) Judy Perry, The Staffing Co.; Susan are at a low ebb. The Michigan more specific focuses that allow Poppert, Genworth Financial; Jan Hubbard, Walsh Business Tax was talked about a business peers to better share ideas College; Tammé Quinn Grzebyk, VerbalWise; Susan Gibson, MBPA; Laura Jannetta, InPro Insurance; and reasonable amount, but when we and real-world advice — which they survey people, obviously no one’s Denise Bahs, The Payments Authority. Attendees were say is more important than ever in using the book Showing Our True Colors (left), by Mary paid it yet so they don’t really tough economic times. know the ramifications of it. … Miscisin. Walsh started its first group five Two years ago, health care was a preneurs’ Organization, support huge issue, premiums were years ago. The college now hosts six growing exponentially and people active groups with four to 10 mem- groups called Forum are a central were seeing double-digit bumps in bers meeting monthly. The first facet of membership, said Dan health care. That has slowed and meeting of its most recent addition, Glisky, president and CEO of South- had taken a backseat to fuel a group for CFOs or controllers of field-based Compsat Technology Inc. costs. But the latest thing is the nonprofits, drew 24 attendees, al- and a former president of the Michi- credit crunch, that is what is most twice the number of the aver- gan EO chapter. really impacting business right age group. “The main thing is knowing that now. “Coming from a you’re not the first person to go into Small business has to borrow to corporate back- business for yourself,” he said. expand, to get more inventory, ground, I didn’t “That there are people who have ex- offer new products or hire people, periences, who have done similar and if they don’t have the know small-busi- availability of cash, it’s difficult to ness providers, bard said. things, who have learned things and expand. And we want expansion but someone from “This is not networking,” she that will hopefully avoid the pitfalls because that’s bringing the jobs. the group was al- said. “They’re not there to give each and some of the mistakes you might What else have you learned about ways able to pro- other leads. They’re only there for make on your own.” the credit crunch? You used to be vide a referral,” education, and that’s what separates Each forum has about 10 mem- able to go to a traditional lender. Grzebyk said. “It our groups from other groups.” bers, Glisky said, and members are Grzebyk You were a performing borrower, was great to have Groups focus on areas such as hu- expected to attend 10 monthly meet- See Holman, Page 18 a group of experienced people to man resources, females in family ings a year. Currently, about 88 bounce ideas off. It was almost like businesses, sales and marketing and members meet in 10 groups in the If you know someone having a board of directors, in a second- or third-generation business Detroit area. in small business or owners. Competing businesses can’t “Having a group of non-judgmen- Detroit or Wayne way.” tal individuals who are in the same County government Troy-based Walsh launched its join the same group. Nancy Kaffer affinity groups about five years ago, Walsh’s groups generally tackle a place you’re in to discuss business should interview, said Jan Hubbard, the school’s di- specific topic during their meetings. issues is really critical to making call (313) rector of corporate relations. Each group has a professional facili- good business decisions that impact 446-0412 or write The idea was to provide an oppor- tator who is there to ensure that the company and keep you on task,” nkaffer@ tunity for small-business owners to members get equal talk time. he said. crain.com share experiences and ideas, Hub- For members of the national Entre- See Affinity, Page 18 20090119-NEWS--0018-NAT-CCI-CD_-- 1/15/2009 4:25 PM Page 1

Page 18 CRAIN’S DETROIT BUSINESS January 19, 2009 Small Business Monthly Affinity: Peer-to-peer groups give biz owners real-world advice ■ From Page 17 “As an entrepreneur, you’re not “I learned this But members At an upcoming session, the facing a lot of the critical business reporting to a boss, so having a business by osmo- are quick to say group will tackle strategies for issues a lot of us face, it’s very peer group that says you should be sis, but I feel I can If a person is the cost is worth selling to people you just don’t get challenging,” Glisky said. doing more, you could be doing hold my own. “ it. along with, and how to work with “You can’t really go to family, more … the reason our forum We’ve been just looking to “It’s the best someone whose personality because they don’t really under- works so well is there isn’t a lot of through some dif- $500 I spend grates. stand. And it’s tough to talk to a preaching that’s going on. It’s ficult times in our exchange business every year,” Ne- Folks shouldn’t join a support girlfriend or a spouse, because all based on a theory of Gestalt, which business and our gohosian said, is only speaking from experience,” family, and (the cards and build adding that mem- group if they’re not there to learn, you’re going to do is scare them to Glisky said. group members) bership gives her she said. death, and it’s difficult to talk to Members aren’t allowed to have learned from sales with each other access to Walsh’s “If a person is just looking to ex- other employees.” bloviate, Glisky said, but must of- my experiences. training semi- change business cards and build Negohosian concurs. fer real-world advice. “I have said, ... this isn’t a good nars and lec- sales with each other — and that’s “I knew a few other women in It’s satisfying to share hard ‘Whoa, you’re place. tures. their only goal — this isn’t a good business (before joining), but not lessons with others, said Nancy heading for this, “If you’re going place,” she said. “This is focused many because I’m in manufactur- Negohosian, vice president of maybe you should ” to run a business, Tammé Quinn Grzebyk, VerbalWise on education and helping each oth- ing, which is typically a male-dom- Troy-based HMS Products Co. look out for this you have to in- er be successful. Do they share inated business,” she said. “But to Negohosian is a longtime mem- because that’s vest in making business? Yes, but this isn’t a net- be able to talk to other women that ber of a Walsh group geared to- what’s going to happen …’ and it the best business decisions,” working group.” are in traditionally male-dominat- ward women in family businesses. feels good to help somebody.” Glisky said. Her father was the founder of Membership in such groups is- Grzebyk, who started as a new Aside from advice and tips, ed businesses, it’s very comfort- HMS, a manufacturing company. n’t cheap. Walsh’s annual fee is business owner years ago, now fa- members say there’s a less tangi- ing.” “I have a degree in hospitality $500, and EO costs $2,050 each cilitates Walsh’s sales and market- ble benefit. Nancy Kaffer: (313) 446-0412, services administration,” she said. year. ing group. “I truly believe that when you’re [email protected].

MARKET PLACE Holman: CAREER MOVES LEGAL SERVICES - IMMIGRATION ANNOUNCEMENTS & CRAIN’S CAREER MOVES MANAGEMENT WORK! SERVICES To Place Your Ad Call Antone, Casagrande & Adwers, P.C. Priorities Mercy High School, a Catholic college preparatory (313) 446-6068 school for young women in Farmington Hills, is BUSINESS SERVICES AV-rated Immigration Law Firm or ■ From Page 17 Fax (313) 446-1757 seeking a Director of Institutional Advancement. Visit Firm’s Principal is an Adjunct Immigration Law mhsmi.org for job description. LBC Manpower LLC Licensed and insured Professor at MSU you paid your bills, and you had Get the 5 Star Service you desire. Call about our Farmington Hills, MI 48334 collateral that would cover your GENERAL Quality Commercial Business and Home Clean - Phone (248) 406-4100, www.antone.com loans. But now with the devaluation ing Services. Ask for the five star guarantee. of property, collateral has shrunk and LBC Manpower, serving the Detroit Metro area. The State of Michigan, Department of Management and Budget, Purchasing Oper- Call 517-410-3157 or e-mail Ron Harris at auditing is much tighter on banks, so [email protected] BUSINESS & they tighten their parameters. What ations is recruiting to fill 4 positions: INVESTMENTS was good credit a year ago is no Business Development Manager (State Administrative Manager 15) — This position will over- WE SELL BUSINESSES longer good credit on paper. That see the Buy Michigan First and Supplier Diversity programs as well as the marketing of the MiDEAL BUSINESSES FOR SALE doesn’t mean the individual doesn’t program for the State of Michigan. Confidential & Professional Service. pay their bills, they just don’t look Supplier Diversity Coordinator (Departmental Specialist 13) — This position will have the re- Specialize in Manufacturing, Distribution & Established Oakland County Children’s Boutique good on paper. sponsibility for coordinating the development of a supplier diversity program for Purchasing Operations Business -To-Business Service Industries. in upscale downtown community. Owner willing to Credit card borrowing has gone up, and departments/ agencies. Confidential Business Sale, Inc. assist buyer. Email for Confidentiality Agreement to: www.ConfidentialBusinessSale.com [email protected] and that’s a source of concern. Buy Michigan First Coordinator (Departmental Specialist 13) — This position will have the re- Detroit Metro Office 313-221-9378 JET’S PIZZA FRANCHISES IN NORTHERN OHIO What are the top small-business sponsibility for coordinating the Buy Michigan First initiative for the State of Michigan. Three operating stores with future territorial concerns you plan to take to the agreement. Call 586-412-0010 governor in the next few months? Our Buyer Specialist 13 — This position will perform a variety of complex purchasing functions and relat- FOOD SERVICE SUBURBAN DETROIT MOBILE FLEET SERVICE BUSINESS. ed work in the Services Division with the specific responsibility for the specialty areas of medical, Sales of 700K + net 30% all accounts, equipment, job is making small business aware dental, and vision benefits for active employees and retirees as well as employee insurance programs. service vehicles. Turn key 650K. Reply to: of the MEDC toolbox and promoting LOSE WEIGHT [email protected] With Our 100% Fresh Gourmet Meals what we do. Beyond that, with the Candidates interested in applying for any of these positions must possess a bachelor’s degree and 4 credit circumstances, last year we years of professional experience in the preferred areas of procurement, marketing or supplier diversi- BUSINESS OPPORTUNITIES • Prepared Locally By Top Chefs thought we should have a clearer ty fields. Professional managerial experience in the preferred areas is highly desired for the Business • Delivered To Your Door! SEEKING TO PURCHASE I.T. STAFFING FIRM picture about credit. We wanted to Development Manager position. The positions are located in Lansing with an annual salary of $66K to • Guaranteed Fresh Taste! Looking to purchase small, well-established IT see if banks lent at the same level in $95K for the managerial position and $45K to $68K for the specialist positions depending on experi- staffing firm based in Southeast Michigan. Michigan as across the U.S. We www.GourmetEverydayDelivery.com Serious inquiries only. Please contact ence and includes a liberal fringe benefit package. [email protected] found that Michigan banks are not only competitive but as or more Additional information on this position can be found on the State Job Postings site at Call Us For Personalized EQUIPMENT & aggressive than banks nationwide. www.michigan.gov/mdcs/. Candidates must submit a cover letter, resume, and copies of college The real problem was venture transcripts. Send information to: Department of Management and Budget, Office of Human Resources, Service: (313) 446-6068 MERCHANDISE capital. Attention: Mary Beth Seppala, Stevens T. Mason Bldg., P.O. Box 30026, Lansing, MI 48909. Please ref- FAX: (313) 446-1757 We’ve been talking with a coalition of erence 2009-0025 and the position title that you are applying for no later than January 30, 2009. OFFICE FURNITURE E-MAIL: [email protected] people at MEDC and the Michigan Civil Service Rule 1-7 requires that all persons who are not currently state employees must submit to INTERNET: MUST SELL, OFFICE CLOSED Bankers Association to see what could and pass a pre-employment drug test prior to their actual appointment to the classified service. The www.crainsdetroit.com/section/classifieds Desks $99, Chairs $39, Files $49, Partitions $50, be done (and exploring options that DMB is a drug-free, alcohol free, equal employment opportunity employer. Lateral Files $99, Cubicles, Office Phone Systems could include) a separate See Call (248) 548-6404 or (248) 474-3375. entrepreneurial fund outside of that industry that would not hurt the banks’ Crainsdetroit.com/Section/Classifieds Advertise your goods and services in for more classified advertisements Crain’s Detroit Business rating because (it would be outside the traditional banking operation). Associations that survey members say LEGAL SERVICES the mood among business owners is more pessimistic than at any time in EXECUTIVE SEPARATION PACKAGE REVIEW recent history. Does this matter? Does mood matter? It does. They Separation package review by expert employment law specialist including potential say: “You know what, let’s not buy benefit enhancement or wrongful termination case evaluation quite as much inventory in the next Office or telephone/internet appointments within 48 hours of call or email six months. Let’s not add that new Flexible fee arrangements person.” It’s mood that dictates progress rather than supply and Reviews conducted or supervised by 4 Senior Counsel listed in Best Employment demand, so you can artificially put Lawyers of America and Super Lawyers with more than 100 years of combined em- yourself into a recession. Small ployment law experience handling employee issues involving every major employer business is notorious for being in Southeast Michigan. upbeat, even in the worst of times, Pitt McGehee Palmer Rivers & Golden-117 W. Fourth St., Suite 200, and this is probably the lowest ebb Royal Oak Mi, 48067. they have had in my recollection. Call, email or fax Elaine Hesano for an appointment or more information at But when you’re the only one 248.398.9800, fax 248.398.9804, [email protected]. Please visit our website standing on an island and you’re at www.pittlawpc.com feeling pretty dry, you think, “I may be getting wet here pretty soon.” 20090119-NEWS--0019-NAT-CCI-CD_-- 1/15/2009 4:24 PM Page 1

January 19, 2009 CRAIN’S DETROIT BUSINESS Page 19

Small Business Monthly Is it time to sell? Shelve emotion, crunch numbers Let’s say you’re one of ure — should be based should be a time to identify oppor- ries down the road.” the hundreds of Michi- on finances and logic. tunity for change. ADVICE FROM THE INSIDERS Depending on the structure of gan business owners who Small Biz If you’re thinking of “If the numbers say you’re going payment, Migliazzo said, tax law Don’t go from the gut. have been hit by the Solutions closing your business, to be bankrupt in six months, may favor a sale, if the payment is slumping economy, who it’s time to crunch some you’re going to have to do some- Identify trends that could affect lengthy and can qualify as long- are struggling to stay numbers, said Ed King, business performance in weeks or term capital gains. thing to change,” King said. “If months. open as sales fall and director of small busi- you continue doing what you’re Finding a buyer can be difficult. profits plummet. Or ness programs at Wayne Seek financial advice before the “The problem with selling a busi- doing right now, you lose. The deal’s on paper. maybe you’re reaching State University’s School of question is, what can we do to ness is, from a seller’s standpoint, retirement age and Business Administra- If closure is looming, consider a who are you going to sell it to?” change your assumptions, change drastic course change. there’s no heir apparent tion. your procedures, change your King said. “How are you going to go to take over the family “Most people are management?” about selling it?” Nancy Kaffer banker to help you, (he) can pro- business, but closing probably allergic to If bankruptcy is inevitable, a lot A lot of presale prep can prove shop seems too heart- (spreadsheet program vide a lot of pre-transaction advice, advantageous to a business, depends on how the business was know the industry, have a good idea breaking. Microsoft) Excel, but if someone formed, he said: A business that whether a sale materializes or not, For business owners, it’s tough sat in my office and said, ‘When of some valuations.” Migliazzo said. formed as a corporation or L.L.C. to know when to say when, should I give up?’ I would say, For a sale to prove financially ad- “Make sure you have a strong has limited liability, but a busi- whether it’s a sale or a business ‘What have your sales and expens- vantageous, Migliazzo said, a plan management team. Work with a ness owner who pledged personal closure, insiders say. es been for the last six months, for should be laid beforehand. credible auditing or accounting assets or signed personally for “It’s certainly a tough question, the last couple of years. Let’s put “If you’re doing some financial team, make sure all your intellectu- transactions is vulnerable to more and typically a very emotional de- these into the computer and find planning and retirement planning, al property that’s critical to your cision,” said Frank Migliazzo, se- out, if these trends continue on, than the loss of the business. you can do some modeling and look company is under some type of con- nior vice president and private how long before we have to throw If you’re selling, Migliazzo advis- at what your expenditures can be, tract,” he said. “Clean up some is- wealth adviser in Auburn Hills for in the sponge?’ ” King said. “I es seeking professional counsel, an what are return scenarios, to see if sues like look at your overhead ... Merrill Lynch & Co.’s private bank- would probably take a look and see investment banker or an attorney. there is enough money to live on Some small- or medium-sized com- ing group. if there are any cycles or trends “We clearly are under the belief over your lifetime,” he said. panies have created a business plan And it’s not a decision that that are available, but it actually that you need to have some kind of “Then there’s the structure as- — but maybe they haven’t got an should be made from the gut. Ex- comes down to grinding out the plan and get the right adviser to pect, the best way to format your as- exit strategy.” perts say that a gauge of a busi- numbers, which is not too sexy.” help you do it,” he said. “If you get sets so it maximizes not only your Nancy Kaffer: (313) 446-0412, nkaf- ness’ chances of success — or fail- Reviewing the numbers, he said, an industry-savvy investment returns but benefits your beneficia- [email protected]

Programs hook up small biz REAL ESTATE COMMERCIAL PROPERTIES WATERFRONT PROPERTY WATERFRONT PROPERTY

Commercial Office Building For Sale-City of LARGE 1 ACRE LAKEFRONT LOTS - 15 min from 48 Acres with 250 feet of Lake Frontage Marlette, MI. Approximately 17,240 square feet Novi/Ann Arbor on all sports lake in Brighton. ALSO, Investment/Hunting/Equestrian/Estate/Develop to cash, credit counseling two story building with current lessees occupying 4100 sf new Lakefront home ready for move-in 90 50 Min from Detroit (Linden, MI) No motors lake close to 75% of available square footage. Con- days. Discounts Available.Call 810-220-8060 $392,000 - motivated. (810)444-3510 tact 989-635.4237 or [email protected] for details and showing appointment. ON ORCHARD LAKE BY ALEXA STANARD Credit unions can offer another 4 bedroom ranch, 3 1/2 baths on SPECIAL TO CRAIN’S DETROIT BUSINESS ready source of credit support. Ter- Crain’s Classifieds Gets Results 1.4 acres premium lot. 248-335-0104 INDUSTRIAL PROPERTY ry McHugh, president of Commercial www.5081commerce.com From government credit pro- Alliance L.L.C. in Troy, said the solu- AVAILABLE NOW RETAIL SPACE grams to credit unions and short- tions are developed on a case-by- term loan specialists, a variety of case basis. Sometimes small busi- 4,000 to 100,000 sq. ft. : outfits stand ready to help small- ness financial reporting isn’t good. Also 10,000 & 25,000 sq. ft. OFFICE - RETAIL - VACANT business owners get their hands Owners sometimes let dollars fall Free Standing Bldgs w/truckwells. on needed resources or credit through the cracks in collections. 1 Mile from Metro Airport 110 Parkland Plaza, Ann Arbor counseling. Another resource is the Michigan REA CONSTRUCTION Many business owners might Small Business and Technology Devel- Almost Class A 21,000 SF office building. find the best option is a trusted ex- (734) 946-8730 opment Center, which is rolling out Original section is a 2-story, richly fi nished pert who can help them tailor indi- Also Heavy Industrial Fiscal Fitness for the Growing Busi- vidual solutions to stave off insol- Land Available building with each floor consisting of 7,000 SF, ness, a program sponsored by Fifth vency. www.reaconstruction.net and newer 1 story addition of 7,000 SF. Can be Third Bank. The $25 half-day work- “Lines of credit have been split or expanded. Original site plan showed an shop helps owners identify ways to trimmed back or frozen,” said Lola approved 6,400 SF building with 45 additional improve their cash positions, espe- Aré, director of the Oakland County INVESTMENT PROPERTY cially through improved collections parking spaces. Lots of offi ces, 10 bathrooms, Business Center. “Now (businesses) and inventory management, and of- LYON TOWNSHIP/BANK OWNED 2 showers, flex space with overhead door, have these orders outstanding and 12-unit rental townhouse project available. fers free one-on-one counseling. beautifully appointed conference rooms and an they’re in a tight spot because Get a great deal on this investment opportunity. “They start to see very new Contact Karen Shepherd at 248-290-5300 ext. 311 there’s nothing they can do.” elevator. Plenty of parking. things in their financial state- Money Partners Wanted The county offers programs for WE HAVE EARNED 20% to 50% in the foreclosure LEASE OR SALE entrepreneurs to help with plan- ments,” said Richard King, the cen- business. 12 to 48 mo Term. 12% guaranteed. Call now. Mid-City Real Estate 800-826-2517 ning, training and loans for fixed ter’s regional manager for Wayne, Oakland and Monroe counties. FOR SALE OR LEASE assets. The center connects busi- A large variety of gas stations, restaurant, bar, Buckingham Shopping Center ness owners with lenders. Business- The next Fiscal Fitness workshop investment retail and office properties es, especially new ones, must often is 5-9 p.m. Jan. 29. LA Hood Realty 313-885-5950 Former Franks Nursery site and Buckingham For companies that can’t qualify agree to participate in planning and Call Us For Personalized Shopping Center at Schoolcraft and Inkster training workshops before gaining for a government or credit union Road, Livonia. High traffi c count, very loan, private operations like access to any loans. Service: (313) 446-6068 visible signage on I-96. Priced right for rehab. “If they need working capital, Brighton-based Michigan Commercial then we’ll work with them to do Credit can provide short-term loans CLOSING TIMES: Monday 3 p.m., SALE: $900,000 & $1,400,000 their cash flow projections and against a company’s receivables. one week prior to publication date. Please call us for holiday closing times. their business plan. Then we should MCC pays 80-90 cents up front for be able to introduce them to a every outstanding dollar a compa- FAX: (313) 446-1757 SALE - Vacant Land lender, but not before they do all ny is waiting to collect. The interest E-MAIL: [email protected] > 25.80 Acres in Howell, wooded, slightly rolling site offers great campus rate is typically prime plus four to that,” Aré said. INTERNET: setting and the area required for a variety of commercial uses. Existing businesses can partici- six percentage points, plus a main- www.crainsdetroit.com/section/classifieds pate in Venture Forward, a 10-week tenance fee . Confidential Reply Boxes Available >12 residential lots just 20 minutes west of downtown Ann Arbor. A company that makes a part for workshop that guides business PAYMENT: All classified ads must be Enjoy the charm of country side living and convenience to cultural, owners through the county’s loan a customer and then must wait 60 prepaid. Checks, money order or educational and employment opportunities of a university town. programs and helps them see where days for payment is the kind of Crain’s credit approval accepted. Can be purchased separately or individually. they might get more cash from their businesses that might use the pro- Credit cards accepted. business. The next Venture For- gram. “If they’ve got your money, See ward series is scheduled for Friday how do you start your next project? Crainsdetroit.com/Section/Classifieds Jim Chaconas, CCIM mornings, 8:30-11:30 a.m., begin- We bridge that gap,” said MCC (734) 995-1807 ~ [email protected] ning March 6. President Brian Jenks. for more classified advertisements 20090119-NEWS--0020-NAT-CCI-CD_-- 1/15/2009 4:23 PM Page 1

Page 20 CRAIN’S DETROIT BUSINESS January 19, 2009

CALENDAR PEOPLE WEDNESDAY CONSULTING Defender Association Inc., Detroit. CHANGES TO CDB CALENDAR Juergen Reers to managing partner IN THE SPOTLIGHT JAN. 21 for North American operations, PROFESSIONAL ASSOCIATIONS Dearborn-based Team Detroit, the Positioning You and Your Business in Crain’s Detroit Business can no Roland Berger Strategy Consul- Robert Holland to president, TEC De- tants, Troy, from partner. coalition of advertising agencies troit, St. Clair This New Economy. 11:45 a.m.-1 p.m. longer guarantee that we will use whose main client is Ford Motor National Association of Career telephone, mail or e-mail Shores, from Women. With ENGINEERING Co., has promoted Brad Audet to chairman. contributions for our weekly the newly created position of Michael Finney, calendar print and online William Case to principal and director president and executive vice president, managing SERVICES calendar listings. of technology and support services director. CEO, Ann Arbor group, Peter Basso Associates, Troy, Karen Katko to Spark. Weber’s If you want to ensure listing Audet, who previously was group online and be considered for from senior associate. vice president of Inn, Ann Arbor. account director for JWT-Team business develop- $20. Contact: (734) print publication, please use the Detroit, will be responsible for online calendar listings section FINANCE ment, Medical 439-2904. seeking out new business for the Care Coordinators of www.crainsdetroit.com. Here’s Kathleen Zaracki to CEO, National As- consortium and will manage its Inc., Roseville, sociation of Investors Corp., which how to submit your events: non-automotive accounts. from director of Should I Start My does business as Better Investing, Holland Own Business? From the Crain’s home page, Team Detroit is the joint venture of marketing. click “Detroit Events” in the red Madison Heights, effective Feb. 1, 8:45 a.m.-12:45 from oversight of marketing activities London-based advertising holding p.m. Service bar near the top of the page. company WPP’s metro Detroit ad Finney Then, click “Submit Your Events” for voice and data services, AT&T EOPLE GUIDELINES Corps of Retired Corp. houses JWT, Young & Rubicam, P from the drop-down menu that Executives. Michigan Business & Pro- Wunderman and Ogilvy & Mather; Announcements are limited to fessional Association, 27700 Hoover will appear and you’ll be taken to and GroupM media companies our online submission form. Fill HEALTH CARE management positions. Nonprofit Road, Warren, $10. Contact: (586) 393- Mediaedge:cia and MindShare. and industry group board 8800. out the form as instructed, and Dr. Paul LaCasse then click the “Submit event” to president and Mark Frentrup, Jessica Sachs and appointments can be found at button at the bottom of the page. CEO, Botsford Michael Doerr to principal, Harness, www.crainsdetroit.com. Send THURSDAY That’s all there is to it. Health Care, Dickey & Pierce P.L.C., Troy, from submissions for People to Farmington Hills, associate. Departments, Crain’s Detroit JAN. 22 remaining CEO of Business, 1155 Gratiot Ave., Botsford Hospital. Recovery Starts Here Career Recep- stitutes will also provide program and MARKETING Detroit, MI 48207-2997, or send registration information. Rock Finan- tion and Workshop. 5-9 p.m. Detroit Michael Ebert to vice president and di- e-mail to cdbdepartments@ Regional Chamber, the Michigan cial Showplace, Novi. $30 members, LAW crain.com. Releases must contain $35 others. Contact: (248) 353-0735, ext. rector of sales, Creative Solutions Chamber of Commerce, Detroit Re- Jennifer Grieco to Group Inc., Warren, from director of the person’s name, new title, naissance Inc. and others. A career 112. shareholder, company, city in which the person Maddin, Hauser, sales, Phoenix Formations, Phoenix, networking reception for displaced LaCasse Ariz. will work, former title, former workers with college degrees, not lim- Inforum Networking & New Member Wartell, Roth & company (if not promoted from Heller P.C., Southfield, from associ- ited only to Lawrence Tech students Welcome. 7:30 a.m. Jan. 29. A network- NONPROFITS within) and former city in which the and alumni. Designed to provide em- ing and welcome breakfast with Info- ate, insurance defense group. person worked. Photos are ployers and job-seekers with a face-to- rum board and staff members. Come Michael Starrs to COO, Bodman L.L.P., Alicia Skillman to executive director, Tri- welcome, but we cannot guarantee face experience in a professional and ready with a 30-second “elevator” Detroit, from COO, Dykema Gossett angle Foundation, Detroit, from direc- they will be used. personal environment. Lawrence speech to introduce yourself to the P.L.L.C., Detroit. tor, Fair Housing Center, Legal Aid and Technological University, Southfield. group. Westin Book Cadillac Hotel, De- Free. Contact: (248) 204-4100. troit. Members $20, nonmembers $25. Add $10 to registrations received after Jan. 25 and at the door. Members who Write a Business Plan. 9 a.m.-noon. join Inforum at this event or who be- Oakland County Business Center. For came members in the last six months small-business owners who are devel- BUSINESS DIARY contact Inforum to attend this event for oping a plan to serve as their work- free. Contact: (877) 633-3500. CONTRACTS MERGERS arborchronicle.com. shop to success. Oakland County Ex- Element-e, Brighton, is a new market- ecutive Office Building, Waterford Fisher/Unitech, Troy, has partnered Amherst Partners L.L.C., Birmingham, ing and communications consulting Township. $40. Contact: (248) 858-0783. “Nonsensical Marketing — Moose- with Stratasys, Eden Prairie, Minn., has merged with CMM Engineering jaw’s Madness.” Noon-1:30p.m. Feb. to sell its full product line of high-end L.L.C., Waterford Township. organization focused on environmen- 2. Detroit Regional Chamber. With: FDM machines along with the Dimen- tal sustainability and organizational Robert Wolfe, president, Moosejaw sion 3D Printer. The company was MOVES alignment. Telephone: (866) 567-9560. FRIDAY granted the contract based on its suc- Web site: www.element-e.biz. Mountaineering and Backcountry Franklin Property Corp., from 32255 JAN. 23 cess with the Dimension Printer. Travel Inc. Discussion on how the Northwestern Highway to 31700 Mid- Evans Distribution Services, Melvin- company became successful at build- Fisher/Unitech is now the exclusive dale, has launched Evans Resource Five-Minute Networking. 8-10:30 a.m. dle Belt Road, Suite 135, Farmington ing an online community that fosters reseller for the Stratasys FDM line in Services, a professional staffing ser- Detroit Regional Chamber. Features a Hills. Telephone: (248) 539-3332. Web sales. Detroit Zoo, Royal Oak. $20 De- Michigan. vice that places logistics workers in series of five-minute, one-on-one site: www.franklinpropertycorp.com. troit Regional Chamber members, $40 Picometrix, LLC, Ann Arbor, an Ad- temporary positions, including as- meetings with potential clients from nonmembers, $65 for a Maverick Mar- vanced Photonix Inc. company, has targeted companies you select based NAME CHANGES sembly, inventory control, inspection, keting season one pass (available to signed a multiyear agreement with an on your business interests. Automo- quality testing, shipping and receiv- chamber members only). Contact: optical subsystem manufacturer to Victoria Insurance Co., Farmington ing, material chandelling, hi-lo opera- tive Hall of Fame, Dearborn. $30 Hills, a wholly owned subsidiary of (313) 596-0392. supply 40 Gbps optical receiver com- tion, packaging and repacking, and chamber members, $50 nonmembers. ponents to be incorporated into sub- Michigan-based USF Insurance Co., to truck driving. Contact: (313) 596-0392. systems installed in next generation Cranbrook Insurance Co. Biggby Coffee, East Lansing, is to Fundamentals of Starting a Business. telecommunication networks. Auburn Hills-based Plexus Systems open a 24-hour café Jan. 19 inside Chil- 6-9 p.m. Feb. 4. Eastern Michigan Uni- Southfield-based TechTeam Global, a Inc. has renamed itself Plex Systems versity College of Business, U.S. provider of information-technology Inc. and has renamed its flagship dren’s Hospital of Michigan, 3901 COMING EVENTS Small Business Administration. To services, has won two contracts worth product, the Plexus Online software Beaubien Street, Detroit. help aspiring entrepreneurs assess more than $20 million over three system, Plex Online. InvestWise Financial L.L.C., their abilities to lead and manage a Bloomfield Hills, a financial planning Employer Forum on Internships. 8- years. One contract is with a global ac- company, as well as evaluate market counting and business-consulting and investment services firm, has 11:30 a.m. Jan. 27. Detroit Regional NEW PRODUCTS and sales potential for their products. firm; the other with a producer of alu- opened at 3883 Telegraph Road, Suite Chamber. Learn how internships can , Fraser, now offers the The basics of business ownership are minum and fabricated aluminum Fixtureworks 204. Rick Jehn, Dean Thurman and full lineup of carrying, lifting and be a successful talent-management introduced, along with resources products. Mike Thurman are senior partners. strategy for your company. Engineer- available to help launch new ventures open/close pull handles from Kipp, Telephone: (866) 321-6228. Web site: BorgWarner, Auburn Hills, has signed ing Society of Detroit, Southfield. Germany. With the inclusion of the 11 www.investwisefinancial.com. in Michigan. One Stop Business Re- a contract to establish a joint venture Free. Contact: (313) 596-0432. source Center, Detroit. $30. Contact: styles of pull handles, featuring over with China Automobile Development 180 different sizes, materials, finishes (313) 967-9295. United Investment Co. Ltd., a company OTHER Fiscal Management Tools for the Non- and configurations, the Kipp units owned by 12 Chinese automakers. To complement Fixtureworks’ extensive Anderson, Eckstein and Westrick Inc., Financial Manager. 1 p.m. Jan. 28. Business Over Breakfast: Increase En- be called BorgWarner United Trans- offering of workholding, clamping, Shelby Township, has achieved con- Fifth Third Bank, Michigan Small trepreneurship in Michigan. 7:30-9:30 mission Systems Co., the operation gripping and operational products for struction staking prequalification sta- Business & Technology Development a.m. Feb. 10. Crain’s Detroit Business. will be located in Dalian, China, and a wide range of applications. tus as a service provider with the Center. For CEOs of businesses with With: Robert Fowler, president and will produce dual clutch transmission Michigan Department of Transporta- at least three years of financial histo- modules beginning in 2011. Borg- TRW Vehicle Safety Systems Inc., tion. CEO, Small Business Association of Livonia, has introduced a new active ry who want to have a better under- Michigan; and Mark Clevey, vice presi- Warner holds a 66 percent stake in the standing of how financial statements joint venture. head restraint that is lighter, less com- dent for entrepreneurship, Small Busi- plicated and uses fewer components can inform their business decisions. ness Association of Michigan and exec- than competing systems. Oakland County Business Center, utive director, Small Business EXPANSIONS DIARY GUIDELINES Waterford Township. $25. Contact: Foundation of Michigan. DoubleTree Tanner Supply Co., Temperance, has NEW SERVICES Send news releases for Business www.misbtdc.org/region9. Guest Suites Fort Shelby, Detroit. $35. opened a branch at 2135 Bishop Circle Diary to Departments, Crain’s Registration deadline: Feb. 6. Contact: E. in Dexter. The branch will serve as EEI Global, Rochester Hills, has a new Detroit Business, 1155 Gratiot Alternative Careers for Engineers & (313) 446-0300 or www.crainsdetroit. a sales and service center. Web site, www.eeiglobal.com. Ave., Detroit, MI 48207-2997 or Technical Professionals. 8-11 a.m. Jan. com/events. Battery Giant, Sterling Heights, send e-mail to cdbdepartments@ 28. Engineering Society of Detroit. STARTUPS has opened at 24508 12 Mile Road, crain.com. Use any Business Diary More than 20 presenters from various Southfield and 40250 Mound Road, Stellar Logistics, Royal Oak, is a new industries and careers will discuss Sterling Heights. Web site: www. delivery services company. Tele- item as a model for your release, and look for the appropriate what it would take to make a transi- MORE CALENDAR ITEMS batterygiant.com. phone: (248) 310-7362. Web site: tion; what skills/training are re- www.stellar-logistics.com. category. Without complete More Calendar items can be Con-way Freight, Ann Arbor, has information, your item will not run. quired; what job titles to look for; opened a service center in Rockford, The Ann Arbor Chronicle is a new on- found on the Web at Photos are welcome, but we what salary ranges are; and where to Ill., offering less-than-truckload deliv- line daily news publication covering find important resources. www.crainsdetroit. com. ery throughout Illinois and within a the Ann Arbor area. Telephone: (734) cannot guarantee they will be Colleges/universities and training in- 600-mile radius. 645-5368. Web site: www.ann used. DBpageAD.qxd 1/15/2009 3:01 PM Page 1 20090119-NEWS--0022-NAT-CCI-CD_-- 1/16/2009 5:21 PM Page 1

Page 22 CRAIN’S DETROIT BUSINESS January 19, 2009 Blue Cross seeks double-digit rate hikes, layoffs Detroit’s low rating to raise bond costs BY JAY GREENE cember to reform the individual offs could have been averted. cluding $210 million in medical CRAIN’S DETROIT BUSINESS health insurance market. He said “Blue Cross Blue Shield has underwriting losses. As Detroit’s bond rating sinks, passage of the bills was crucial to been sounding the alarm on the Hetzel said an audit to be com- the cost of doing business is grow- In the wake of last week’s an- Blue Cross’ financial stability. dangers of allowing the individual pleted soon for fiscal 2008 will an- nouncement of up to 1,000 layoffs, ing. But a number of competing insurance market to continue on swer how badly the company In the last two weeks, all three officials at Blue Cross Blue Shield of health insurers and coalitions its current path without reform,” fared as a whole. In 2007, Blue Michigan also said it will seek dou- major ratings services have down- that opposed the Blues’ legislative Dillon said in a statement. “Urgent Cross reported a 27 percent drop graded Detroit’s investment sta- ble-digit average rate increases on package question action is needed in net earnings to $152.2 million many of the company’s individual tus. That has raised concerns the connection. to prevent more from $210 million in 2006. It was about the city’s outstanding debt health insurance policy lines. “If the Blue job losses and the third consecutive year of de- — with its bond rating in junk ter- While Blue Cross did not speci- Cross bills had (These cuts) will higher rates for clining earnings, Blue Cross said. ritory, creditors could call for im- fy when the rate increases would passed, then more “ Michigan resi- “It is premature to make a com- mediate repayment of about $400 be filed with the state Office of Fi- people would have not get us all the dents. We can- ment on specific gains or losses” million in outstanding debt. nancial and Insurance Regulation, it been laid off at dif- not allow politi- for 2008, Hetzel said. “We project The lower ratings also will make said it will seek average rate in- ferent (health in- way there, which is cal games to to be very close to zero for 2008.” it more expensive for the city to creases of 55 percent for individ- surance) compa- threaten the via- To save $300 million to $400 mil- why we need the rate sell $263 million in bonds that it’s ual plans, 42 percent for group nies because those bility of Michi- lion in expenses, Blue Cross plans asking voters to approve in Febru- conversion plans and 32 percent bills crushed com- increases. gan’s insurer of to eliminate 400 jobs over the next for Medicare supplemental plans, petition,” said last resort.” 60 days, cut senior executive pay ary’s special election. or Medigap. ” The bonds would finance acqui- David Waymire, of Andrew Hetzel, Blue Cross vice Waymire said by an unspecified amount, freeze Those three individual plans sitions, improvements and mainte- Lansing-based Mar- president for corporate a coalition of wages and reduce spending on ad- represent about 418,000 members. nance that are part of a five-year, tin Waymire Advoca- communications consumer vertising and lobbying by 25 per- Blue Cross officials said the in- cy Communications groups and in- cent. Blue Cross froze executive $4.9 billion capital improvement creases are needed to reduce loss- and a spokesman surers are de- pay in 2007. agenda presented by Mayor Ken es estimated to total $1 billion for Put Michigan People First, a coali- veloping ideas to reform the indi- Other cost-cutting actions by Cockrel Jr. in December and OK’d over the next three years. tion of competing health insurers. vidual market. Their goal is to the Blues include: by City Council last week. Andrew Hetzel, Blue Cross’ Debbie Lantzy-Talpos, Aetna’s reduce the number of uninsured Ⅲ A freeze on salaries for The city relies on roughly $50 vice president for corporate com- Michigan market head, said and increase consumer protec- nonunionized workers. million in bond sales a year to fi- munications, said the company tough economic times are driving tion. Ⅲ A request of Blue Cross nance such projects, said Irvin did not have an estimate for how job losses in many industries. “We want to do it in a fair way workers who are members of the Corley Jr., council fiscal analyst. much revenue the rate hikes “It is difficult to understand and not to the detriment of other United Auto Workers to delay a 3 Daniel Cherrin, Cockrel’s press could generate. how Blue Cross can say this is insurers,” Waymire said. percent pay increase. secretary, said the city is review- “(These cuts) will not get us all being driven by losses in the indi- Blue Cross contends it is dis- Ⅲ A 25 percent reduction in dis- ing the matter with legal counsel. the way there, which is why we vidual market,” she said. “Layoffs proportionately affected by prob- cretionary spending. Detroit hasn’t been able to sell need the rate increases,” he said. in all companies, including insur- lems in the individual market. Ⅲ Cuts to programs funded by bonds in recent months because Hetzel said the layoffs and rate ance companies, are common In 2008, Blue Cross said it lost Blue Cross in local communities two state-required comprehensive increase proposals are directly re- right now for many reasons.” $140 million on individual poli- across Michigan. annual financial reports are over- lated to the Michigan Legislature House Speaker Andy Dillon, D- cies. For 2009, Blue Cross esti- Jay Greene: (313) 446-0325, due, Corley said. failing to act on two bills in De- Redford Township, said the lay- mates it will lose $320 million, in- [email protected] — Nancy Kaffer

~ Save the Date ~ Inaugural Leaders of Conscience Speaker Series

Featuring internationally known guests Cokie Roberts and Lou Holtz, whose lives and works inspire our A Window to the World students and larger community with messages of hope A Golden Celebration and optimism. Discover a world of leadership and educational excellence Where service to community and faith prepare us for tomorrow Friday, February 13, 2009 ~ Luncheon Where milestones are not destinations, but starting points and keynote address featuring author Where character is both developed and revealed and commentator Cokie Roberts Welcome to Academy of the Sacred Heart Where Learning is a Window to the World

Friday, May 1, 2009 ~ Stadium-style OPEN HOUSE dinner and keynote address featuring SUNDAY, FEBRUARY 1, 2009 author and coach Lou Holtz 1:00-3:00 p.m. LITURGY AT NOON EVENT SPONSORS

Why Choose Academy of the Sacred Heart? THE NICOLA ANTAKLI FAMILY – small class sizes – member of a global Network of Schools – cultural and religious diversity – 100% of graduates attend college MEDIA PARTNERS – community activism and social service – after school enrichment programs

The Academy of the Sacred Heart was founded in 1851 and is Michigan’s oldest independent school. Located at 1250 Kensington Road in Bloomfield Hills, it is a Catholic, college-preparatory school for girls (Age 3-Grade 12) For more information on these events and boys (Age 3-Grade 8) of many cultures and faiths. The Academy is a member of the Network of Sacred Heart call 248-646-8900 x 177 or visit www.ashmi.org/speakerseries Schools, which includes 21 schools in the U. S. and affiliation with the Society of the Sacred Heart in 44 countries around the world. For more information call 248-646-8900 or visit us on the Web at www.ashmi.org. 20090119-NEWS--0023-NAT-CCI-CD_-- 1/16/2009 4:24 PM Page 1

January 19, 2009 CRAIN’S DETROIT BUSINESS Page 23 Accuri: No MEDC award? ■ From Page 3

Baird says the state is trying to enforce a two-sizes-fits-all loan- payback policy that doesn’t fit her Loan talks drag company. The state says rules are rules, but it may figure out a way to get Accuri funded. past deadline Here’s what happened: The MEDC gave the winning On Oct. 8, the state an- companies two choices. In addi- nounced that its Strategic Eco- tion to paying back the loan with nomic Investment and Commer- interest of 5 percent on a fixed cialization board had chosen 17 schedule, companies also have to companies to share nearly $30 either give the state a warrant to million in loans. buy 3 percent of the common stock But what looked to be done of the company at one cent a share deals weren’t. In at least one MULTIFAMILY AND HEALTHCARE LOAN SALE 2009-1 or convert remaining debt to equi- case, a company didn’t have the ty as certain stages in growth are matching funds the Michigan Approximate Portfolio Size reached. Companies also have to Economic Development Corp. re- match the loan with other invest- quires. In all cases, payback Unpaid Principal Balance: $144 Million ment or in-kind contributions. terms had to be negotiated, and Total Number of Loans: 19 The warrant option is good for for most companies, negotia- startups with little current value tions have dragged past the Scheduled Bid Date and little or no revenue. But Ac- Jan. 8 deadline. February 4, 2009 curi has raised $23 million in fund- Of the 17 awards announced ing, including a venture capital in October, only four Ann Ar- round of $13 million last year, and bor-based companies have For further information please visit the HUD MHLS 2009-1 website at www.hud.gov/offices/hsg/comp/asset/mfam/mhls.cfm Baird says the warrant option signed deals — Solidica Inc., means “I’d be paying $1 million of Nephrion Inc., Arbor Photonics company value for the pleasure of and Pixel Velocity Inc. taking a $1.9 million loan I have to Ned Staebler, the MEDC’s pay back. It doesn’t make any vice president of program ad- Transaction Specialist: KDX Ventures, Inc. sense at all. ministration, said another six 1750 K Street, NW, Suite 200 “It’s a screaming good deal if deals are nearly concluded. Washington, DC 20006 you’re a new company. Three per- He said the SEIC board meets cent of your equity is nothing if Friday and has the option of re- 202-775-0518 you don’t have equity,” Baird said. scinding loan offers for compa- [email protected] The other option, of converting nies that have not signed deals. debt to equity if certain thresholds There is only one company This announcement is not an offer to sell or a solicitation of an offer to buy mortgage loans. Information concerning the mortgage loans will be furnished are met, doesn’t work either, she definitely out. Ann Arbor- only to, and bids will be accepted only from, bidders who certify that they have such knowledge and experience in financial and business matters so as to be said, because her company already based Cielo MedSolutions could- capable of evaluating the merits and risk and who certify that they have the resources to bear the risk of a purchase of the mortgage loans. has enough revenue — about $3 n’t get matching funds as credit million this year — to trigger an markets deteriorated. instant conversion. The point of The $2 million offered to that option, she says, should be to Cielo and money that others de- reward the state for helping a com- cline will be offered to compa- pany grow, not to reward it before nies who did not rank in the top the loan is even put to use. 17. The next two in the rank- Not that she’s not grateful to the ings were Livonia-based Fisher MEDC. The MEDC award she got Coachworks L.L.C., a maker of in 2006 helped her grow from 10 hybrid powered buses, and In- employees to about 50. cept BioSystems, an Ann Arbor- “We would not have survived based biotech. without that money. We would — Tom Henderson have been done. We would have shut our doors,” she said. months tells you a lot,” said a con- Still, the current situation is sultant who has worked with sev- “very frustrating. I’d love convert- eral winners. “... These terms are ible debt, but it shouldn’t convert way above market level.” right away,” she said. “We told Steve Swanson is chairman and them, do convertible debt, but just CEO of Ann Arbor-based change the conversion events so Nanocerox Inc., which was awarded they don’t trigger at the closing. $1.05 million. He said the warrant And tighten the payback schedule option was overpriced but remains for us. If they’re giving other com- in negotiations over what mile- panies three years to pay back the stones he needs to hit to trigger loan, make us pay it back in two. I disbursements if it agrees to the guarantee you I will add more peo- other option. Awards are typically ple to this company in the next 18 doled out over time as companies months than probably all the other hit certain targets. companies combined.” “The state is approaching it like She said negotiations seemed to a venture-capital company trying be going well in the weeks after the to get the best deal it can. It’s not award was announced, but on Nov. onerous. The convertible loans are 18 she was told an exception could- pretty reasonable,” he said. n’t be made for Accuri. Lindsay Aspegren is general Ned Staebler, the MEDC’s vice partner of Ann Arbor-based North president of program administra- Coast Technology Investors L.P., a tion, was more optimistic. “We’re venture-capital firm that includes supportive of Accuri. We’ve in- awardees Nephrion Inc. and Solidica vested in them and we hope they’ll Inc., both in Ann Arbor, in its port- continue to grow. ... I have no folio and has also agreed on terms knowledge they will not be funded. for a third company, Midland- We’re still in negotiations that based Fulcrum Composites Inc. could reach an agreement without “That the state of Michigan is changing the terms materially.” banking on these companies is Executives at other companies tremendously beneficial,” he said. have voiced concerns similar to “This is a real benefit in what has Baird’s, but not for attribution. been the most negative economic “These companies are desperate environment of my working life.” for money, and that only four of Tom Henderson: (313) 446-0337, them agreed to terms in three [email protected] 20090119-NEWS--0024-NAT-CCI-CD_-- 1/16/2009 5:50 PM Page 1

Page 24 CRAIN’S DETROIT BUSINESS January 19, 2009 Chinese: Officials shopping among local supplier companies ■ From Page 1 Tempo International holds three International Auto Show. that while the Amerigon Corp., Federal-Mogul Corp., “Often times, their (Chinese local automotive firms in western Tempo also located a subsidiary, Chinese have Hayes Lemmerz International Inc., Vis- government) appetite is bigger Wayne County. Zhao said Tempo Century Automotive Manufacturing been sniffing teon Corp., Lear Corp. and TRW Auto- than their ability to do something, is looking for M&A deals to be Inc., in Canton Township after Fi- around Detroit motive Components Inc. also have and when they get in and take a done either through one of the lo- cano and the Detroit Regional Cham- for some time, seen their market capitalizations look at what’s involved they back cal affiliates, a yet-to-be formed ber went on a trade mission to Chi- it’s mostly just decline between 80 percent to more away a little bit,” said Aspatore, subsidiary, or a possible consor- na in 2005. Ficano said Beijing’s been tire-kick- than 90 percent since their last who has done six global acquisi- tium of buyers, depending on the vice mayor and staff held meetings ing, with no ma- full-year financial reports. tion deals for Chinese firms, most deal. with Ficano’s office during their jor deals coming Companies that offer advanced recently 18 months ago. “The main mission of the vice visit two weeks ago and toured lo- to fruition. technology and manufacturing “But the climate is right, and I mayor of Beijing on Friday was to cal company sites. Aspatore “But to the ex- processes most likely would be tar- think if there’s ever going to be ac- say, ‘We are ready to come and in- The Henry Ford event was a tent that compa- geted, Aspatore said. tivity, it’s going to be in the next 12 vest and buy companies or do joint more formal pitch about investing nies continue to be in trouble giv- Acquiring a supplier could offer months.” ventures with suppliers. We have in local companies, and represen- en the volume reductions we’ve Chinese firms an immediate pres- A delegation of Beijing officials money we can bring in. You have tatives from the Detroit 3 and local seen, that could put more of the ence to supply the Detroit 3 and is scheduled to come to Detroit in equipment, manpower and tech- auto suppliers attended. companies in play and make it foreign automakers as well as ac- April to meet with auto suppliers nology, and we want to invest and “Basically, Beijing (municipal more attractive for the Chinese to cess to technology, manufacturing that are potential acquisition tar- be suppliers to the Big Three,’” government) wants to go through want to do something,” Aspatore processes and executive experi- gets. said Mulugetta Birru, a private Tempo Group. Tempo is the one said. “The atmosphere is right if ence. “One of the hard things in the consultant working with Ficano’s that already has an R&D base in they want to do transactions.” Birru said Beijing city govern- automotive industry is to have a office to help drum up Chinese Wayne County,” Zhao said. Publicly traded suppliers could ment will soon open an office in network set up, especially in the business in Wayne County. “Beijing government will sup- be had right now at bargain prices. Wayne County with a dedicated of- biggest market, which is still the Ficano and Birru have gone on port us, but the efforts will be our Many large tier-one suppliers have ficial to identify specific supplier United States,” Ficano said. several Chinese trade missions. efforts.” seen their stock prices erode, targets for acquisition, and that “This would jump-start that.” Birru said their efforts helped Walter “Bud” Aspatore, chair- sometimes by more than 90 per- Beijing municipal officials feel the Ryan Beene: (313) 446-0315, bring Chinese automakers BYD Au- man and co-founder of Birming- cent during the last 12 months. time is right to invest in the U.S. [email protected] tomotive Co. and Brilliance Jinbei Au- ham-based investment banking ArvinMeritor Inc., American Axle & But Aspatore said only time will Automotive News reporter Alysha tomotive Co. to the North American firm Amherst Partners L.L.C., said Manufacturing Holdings Inc., tell if it is the real deal, or just talk. Webb contributed to this report.

Kilpatrick: Back on transit committee United Way: Fund cuts? ■ From Page 3 ■ From Page 1

Southeast Michigan Council of Gov- wants to spend financial rescue agencies or whether they will be what’s going on in our state.” ernments, the planning agency that money on what are being called necessary, she said. The council, which last sum- handles federal transit funding for D.C. funds likely “shovel-ready” infrastructure pro- During the December meeting, mer received a commitment for metro Detroit. “It definitely hurt jects that will put people to work Brennan threw out a number of $120,000 annually over each of us, her not being there before.” almost immediately. possible scenarios for cuts of 15 the next three years from United Questions about Kilpatrick’s ap- The Detroit transit plans are a to have strings percent, 30 percent or 50 percent. Way, already was doing scenario pointment were referred to her leg- year or more away from turning Any federal stimulus money But they were meant purely to islative director, James Williams, planning, Jones said, given that dirt, at a minimum. for metro Detroit likely will provide hypotheticals, Green who did not return two calls last its funding from the agency had The new administration’s stim- come with demands for trans- said. “It’s easier once somebody week. dropped $65,000 with the new ulus is expected to range from $850 parency and accountability. tells you what your cut is,” she Kilpatrick also will work on reau- funding model. billion to $1 trillion, and Obama That’s the message Carmine said. thorizing the federal government’s Nonprofit executives at the wants Congress to approve it by Palombo, director of trans- But United Way can’t guess five-year transportation funding meeting said United Way sig- mid-February. portation planning for the the degree of funding cuts at this bill this fall. She was instrumental naled that cuts this time around Hertel, the regional transit czar, Southeast Michigan Council of point because it can’t yet say in her previous time on the subcom- likely would not be across the plans to be in Washington to help Governments, got when he and with any conviction what per- mittee in getting $100 million ear- board as they have been in the ease the transition of some of that other staffers visited Michi- centage of the pledges it has re- marked for a proposed Ann Arbor- past. money to Detroit. gan’s lawmaker delegation in ceived is collectible, Green said. Detroit commuter rail line. “My understanding was that Hertel also leads the effort to de- Washington last week to get a Such uncertainty does make “It was certainly a disappoint- they wouldn’t do that this time … ploy a 25-year, $10.5 billion region- better feel on how the new ad- the three-year grant commit- ment when she decided to depart al mass transit plan as CEO of the that (the cuts) would be more tar- ministration’s economic rescue ments United Way made to the transportation a couple of years ago Regional Transportation Coordinating geted,” said De- package is being developed. agencies in in terms of switching subcommit- Council’s Detroit Regional Mass Wayne Wells, SEMCOG is the regional June and July tees,” said Megan Owens, executive Transit effort. President of planning agency that acts as a tenuous, she director of Detroit-based Transporta- Hertel’s bosses — Detroit Mayor There doesn’t conduit for federal transit fund- said, and some- Gleaners Commu- tion Riders United, an organization Ken Cockrel Jr., Wayne County ing and is expected to handle “ thing the appear to be a way nity Food Bank of dedicated to improving and promot- Executive Robert Ficano, Oakland much of the transportation-ori- agency’s board Southeastern ing transportation access and mo- County Executive L. Brooks Pat- ented stimulus money that and CEO (United Way) Michigan, which bility in the Detroit area. terson and Macomb County Board comes here. Michael Bren- is serving as “There’s no question the federal Chairman William Crouchman — The transparency and ac- nan will be look- could shield fiduciary for a government is seeking smart in- — unanimously approved Hertel’s countability requirements like- ing at over the $200,000 annual vestments. Having the congress- plan Dec. 8. ly will result in public Web next month or organizations from United Way woman be able to speak out on be- The proposal calls for 406 miles sites set up by SEMCOG and two. grant to the Tay- half of Detroit and on transit will of new modes of public transporta- the state to illustrate how and ... what’s going on lor client-choice be an enormous help,” Owens said. tion in 18 corridors by 2035, includ- where the money is spent, “We realize Xx “She has continually expressed en- ing improved dedicated bus ser- Palombo said. from that meet- in our state. pantry Fish and thusiasm for transit, especially in vice and new light and commuter It remains unclear how the ing that there ” Loaves. the past year or two, and frustra- rail lines, in the three counties and money will be disbursed and very clearly is Benjamin Jones, National Council on United Way is tion that some projects aren’t mov- city of Detroit. what the project requirements potential for Alcoholism and Drug Dependence paying each of ing as fast as she’d like.” The pay-as-needed system will will be, Palombo said. cuts,” said Ben- its grantees a Scuttlebutt in the local trans- be funded in part by federal dol- There’s a divide over jamin Jones, president and CEO site visit between now and Feb- portation industry has $12 billion lars, Hertel said. whether most of the infrastruc- of the National Council on Alco- ruary to assess the progress earmarked for transit projects na- Woodward Avenue is one of the ture stimulus will be spent on holism and Drug Dependence, they’ve made in their United tionally and another $5 billion for key elements of the regional plan “shovel-ready” projects ready Greater Detroit Area and former Way-funded programs. trains, Owens said. because it traverses Detroit’s busi- to go within a few months, or vice chairman of the Alliance of One thing is clear, Green said. Detroit’s marquee transit effort ness, cultural, entertainment, more long-term projects. United Way Agency Executives, “There is an unequivocal is actually two separate plans for sporting, medical and educational SEMCOG’s priorities are which disbanded in September commitment to the shift of our light rail on Woodward Avenue, destinations. what Palombo calls “meat and after United Way’s operating and three impact areas (basic needs, one privately funded to the tune of The coming months will be potatoes” projects such as pave- funding model changed. educational preparedness and $103 million and one by the city at spent researching a governance ment improvements for roads “I very much got a sense that financial stability) and a com- $371.5 million. Both would com- arrangement for the regional sys- and bridges and transit-orient- pete for federal and state aid, and tem by a June deadline, in addi- ed plans such as the 48-mile United Way is responding to eco- mitment to stay on those areas, they’re expected to be merged into tion to lobbying for federal transit commuter train proposed be- nomic realities,” he said. “There even given the current econom- one plan this spring. money, Hertel said. tween Ann Arbor and Detroit. doesn’t appear to be a way they ic crisis.” The local funding hiccup is that Bill Shea: (313) 446-1626, — Bill Shea could shield organizations from Sherri Begin Welch: (313) 446- the incoming administration [email protected] the detriments associated with 1694, [email protected] 20090119-NEWS--0025-NAT-CCI-CD_-- 1/16/2009 4:22 PM Page 1

January 19, 2009 CRAIN’S DETROIT BUSINESS Page 25

Dingell: Congressman’s years of service applauded www.crainsdetroit.com EDITOR-IN-CHIEF Keith E. Crain ■ From Page 1 PUBLISHER Mary Kramer, (313) 446-0399 or [email protected] EXECUTIVE EDITOR Cindy Goodaker, (313) 446- of Michigan and his advocacy for summarize, said U.S. Sen. Carl 0460 or [email protected] Michigan’s automobile industry Levin, D-Mich., including carry- MANAGING EDITOR Andy Chapelle, (313) 446- and leadership in supporting gov- Rep. Dingell ing on the tradition of support for 0402 or [email protected] ernment policies that protect man- has attended universal health care begun by his ASSISTANT MANAGING EDITOR/FOCUS Jennette many events Smith, (313) 446-1622 or [email protected] ufacturing interests and workers father. BUSINESS LIVES EDITOR Michelle Darwish, (313) in Southeast throughout our region, John Din- “We’re the only major industri- 446-1621 or [email protected] Michigan. COPY DESK CHIEF Gary Piatek, (313) 446-0357 gell has been selected as Crain’s Here he is alized country in the world with- or [email protected] Newsmaker of the Year for 2008. discussing the out it, and we need national health DATA EDITOR Anne Marks, (313) 446-0418 or After the chairmanship vote, the insurance to enable our people to [email protected] State WEB GENERAL MANAGER Alan Baker, (313) 446- Dems offered Dingell the title of Children’s compete in the world market 0416 or [email protected] “chairman emeritus,” an hon- Health place,” Dingell said. WEB EDITOR Christine Lasek, (313) 446-0473, Insurance [email protected] orary designation that will allow “He’s had a helluva run, and is WEB DESIGNER/PRODUCER Ai-Ting Huang, (313) the legislator to retain some of the Plan with still running,” said Levin, who’s 446-0403, [email protected] health authority he’s amassed during his served for 30 years and was just EDITORIAL SUPPORT Robertta Reiff (313) 446- professionals 0419, YahNica Crawford, (313) 446-0329 tenure in Congress. at Oakwood elected to his sixth term. NEWSROOM (313) 446-0329, FAX (313) 446- 1687 TIP LINE (313) 446-6766 Dingell’s support for the Detroit Medical “His intense devotion to work- automakers was well known, Center in ing people has become a kind of a REPORTERS sometimes crossing House Democ- Dearborn. mantra,” Levin said. “There’s a lot Ryan Beene: Covers auto suppliers, steel, higher education. (313) 446-0315 or [email protected] ratic colleagues to support them, COURTESY JOHN DINGELL’S OFFICE of talk now about helping the mid- Daniel Duggan: Covers retail, real estate and including votes against tougher But the congressman rejects the support — will be sensible and will dle class and working families, but hospitality. (313) 446-0414 or environmental standards. notion that his environmental not destroy the auto industry and he’s lived it from the time his fa- [email protected] In a contemplative op-ed piece ther first brought him to Congress Jay Greene: Covers health care, insurance and the record — Waxman’s strong suit — the rest of American industry.” environment. (313) 446-0325 or Jan. 7 in The Detroit News, Dingell is weak, pointing to a list of accom- Batteries for hybrid vehicles, cur- as a page.” [email protected]. reflected on the state of the country plishments that includes shep- rently made in Japan, could be pro- Dingell’s support extends across Chad Halcom: Covers law, non-automotive manufacturing, defense contracting and Oakland and the auto industry, saying he’d herding the National Environmen- duced in the U.S., he said, if govern- the aisle. and Macomb counties. (313) 446-6796 or shoulder some of the responsibility. tal Policy Act and the Clean Air ment encourages the development Six-year House colleague Can- [email protected]. He should have held automak- laws through Congress. of such facilities and technologies. dace Miller, R-Shelby Township, Tom Henderson: Covers banking, finance, technology and biotechnology. (313) 446-0337 or ers more accountable, Dingell Heading into the legislative ses- Government and industry, he said, said: “I have nothing but the very [email protected]. wrote, aligning himself more sion, Dingell said his task is to bal- must come together to produce highest regard for John Dingell; he Nancy Kaffer: Covers small business, the city of closely with the autoworker than is just a remarkable individual Detroit, Wayne County government. (313) 446- ance the needs of the American such products domestically. 0412 or [email protected]. the industry executive. economy with environmental con- Dingell said he sees a real need whose career has been nothing Bill Shea: Covers media, advertising and “Those are the people I serve,” he cerns. for everybody to pull together — short of incredible.” marketing, entertainment, the business of sports, told Crain’s. “There are a lot of real Miller said that while his dis- and transportation. (313) 446-1626 or “We’ve got to not only see to it government at all levels, auto com- [email protected]. fighters in that industry who’ve that bridge loans come (to De- panies, suppliers, dealers and the trict has changed, Dingell has not. Nathan Skid: Multimedia reporter. Also covers the been doing a tremendous job to keep troit’s automakers) but that the unions — to save the industry. “He rarely avoids a significant food industry. (313) 446-1654, [email protected]. going under difficult conditions.” conditions that are attached to it Some of the hostility expressed challenge, and people can certain- Sherri Begin Welch: Covers nonprofits and services. (313) 446-1694 or [email protected] In an interview last week, he ly see that he tells it straight up, are workable and proper, that the toward the car companies is abat- LANSING BUREAU cast a different light on automak- regulations necessary for green ing, Dingell said. take it or leave it.” Amy Lane: Covers business issues at the Capitol, ers’ accountability: That’s a description Dingell telecommunications and utilities. (517) 371- autos are sensible and will work, “There is finally awareness that 5355, FAX (517) 371-2492, [email protected]. or “The companies really could and will not destroy the compa- if we don’t help them, it’s a loss of would likely agree with. The day of 115 W. Allegan, Suite 220, Lansing 48933. have done a better job of communi- nies. That is an honest source of literally millions of jobs, and a ter- the vote for the committee chair- ADVERTISING cating to the people, communicat- worry,” Dingell said, ticking off rible calamity follows for the manship, the congressman arrived ADVERTISING DIRECTOR Marla Downs, (313) ing to Congress, communicating to priorities. whole United States,” he said, in a wheelchair. His knee was still 446-6032 or [email protected] the government,” Dingell said. “The third thing we’ve got to do pointing to analyses that show be- weak, but his resolve wasn’t. SALES INQUIRIES: (313) 446-6052; FAX (313) “They’ve got a pretty good “I’ve never gone into a fight in 393-0997 is see that the world market is tween one in seven and one in 10 ADVERTISING SALES Jeff Anderson, Matthew J. record, but they have been some- open to American cars, that the jobs are dependent on auto manu- the assumption I was going to Langan, Tamara Rokowski, Dale Smolinski what slow to tell their story, slow lose,” he said. “I’ve always gone in WESTERN ACCOUNTS Ellen Mazen (Los Angeles) trading rules we agree upon are facturing. One sign, he said, is the (323) 370-2477 to form their arguments, and I fair and are properly implement- $17.4 billion in loans already ap- under the assumption I was going CLASSIFIED SALES SUPERVISOR Terri Engstrom, have had to constantly push them ed. None of the above have hap- proved for the industry, plus $4 bil- to win.” 313-446-0351 MARKETING MANAGER Irma Clark to see they do these things. pened. We’ve got to work like hell lion for GMAC. Nancy Kaffer: (313) 446-0412, EVENTS MANAGER Nicole LaPointe They’ve been rather slow in these to see to it that the legislation on Dingell’s personal stamp is on so nkaffer@craincom MARKETING ARTIST Sylvia Kolaski matters, and the consequences global warming — which is going much major legislation to come SALES SUPPORT Suzanne Janik, YahNica Bob Ankeny: Crawford have led me into terrible fights.” to pass, and which I am going to out of the House that it’s tough to [email protected] CIRCULATION Candice Yopp, Manager. SALES, MARKETING INTERN Kim Winkler PRODUCTION MANAGER Wendy Kobylarz PRODUCTION SUPERVISOR Larry Williams, (313) 446-0301 CUSTOMER SERVICE Wine: MAIN NUMBER: Call (888) 909-9111 or write Many retailers expect shipping ban to hurt [email protected] SUBSCRIPTIONS $59 one year, $98 two years. ■ From Page 3 Out of state, $79 one year, $138 for two years. Outside U.S.A., add $48 per year to out-of-state rate for surface mail. Call (313) 446-0450 or hire someone to take a gift basket 13,000 wines,” he said. “Michigan state can’t make it economically from anywhere in the country (888) 909-9111. SINGLE COPIES: (888) 909-9111 or contact five miles?” Lossia said. “It would consumers just can’t get all of impossible for a company to do shipping to consumers, local re- Karen Boykin, [email protected]. cost me a minimum of $50, when I those at a store.” business, Tanford said. Allowing tailers could be undercut. But REPRINTS: Call (800) 494-9051, Ext. 144 , or can hire a service to do it for $15.” The new law was written in re- the shipment of wine only by an identification and quality stan- write [email protected]. TO FIND A DATE A STORY WAS PUBLISHED: Shipping is also a major compo- sponse to a recent court opinion. employee violates the spirit of that dards, for example, can’t be strict- (313) 446-0367 or e-mail [email protected]. nent of business for The Blue Goat, a The ruling issued by U.S. Eastern ruling. ly followed. CRAIN’S DETROIT BUSINESS IS PUBLISHED BY wine store in Traverse City, which District Court Judge Denise Hood in “What difference does it make “Why go through all the trouble CRAIN COMMUNICATIONS INC. often ships Michigan wines to September sided against Michi- that is has to be an employee,” he of requiring Michigan businesses CHAIRMAN Keith E. Crain metro Detroit customers, said gan’s law, which prohibited ship- said. “Why not make it a one- PRESIDENT Rance Crain to have standards when someone SECRETARY Merrilee Crain owner Ron White. ping from out-of-state wine retail- legged Lithuanian immigrant? from out of state could be shipping TREASURER Mary Kay Crain “It’s hard to judge right now ers but allowed shipping by The intent of the Legislature was Executive Vice President/Operations here, and we have no control over William A. Morrow how big of an impact this will be,” in-state retailers. to screw everyone except the that at all?” Wozniak said. Group Vice President/Technology, he said. “We have to get through a The case followed a 2005 U.S. liquor distributors.” Manufacturing, Circulation While he acknowledged there Robert C. Adams year, but it will definitely have a Supreme Court ruling regarding He expects a legal challenge to will be inconvenience to some Vice President/Production & Manufacturing negative impact.” shipment of wine from wineries to Michigan’s law. Dave Kamis businesses, on the whole, retailers Ferndale-based Winebuys.com, Michigan consumers, in which the The task for the Legislature was Corporate Director/Circulation in Michigan will have less out-of- Patrick Sheposh likewise, is expecting a significant court ruled that laws must be to come up with a law in response G.D. Crain Jr. Founder (1885-1973) state competition. hit to its business, said co-owner equal for in-state and out-of-state to Hood’s September ruling, said Mrs. G.D. Crain Jr. Chairman (1911-1996) Mary Campbell, owner of Every- EDITORIAL & BUSINESS OFFICES: Jeff Resnick. companies. Ken Wozniak, director of execu- 1155 Gratiot Ave., Detroit MI 48207-2732; (313) The company buys wine from J. Alexander Tanford, an attor- tive services with the Michigan day Wines Inc., an Ann Arbor wine 446-6000 Michigan wine distributors and ney and Indiana University law pro- Liquor Control Commission, who was shop, said the new law doesn’t Cable address: TWX 248-221-5122 AUTNEW DET CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 sells to consumers through its Web fessor who sued Michigan on both consulted during the lawmaking hurt her business now as much as is published weekly except for a double issue the third week of January, and a double issue the site. The new law has cut 25 per- cases, said Michigan continues to process. it hurts her future. fourth week of August by Crain Communications Inc. at 1155 Gratiot Ave., Detroit MI 48207-2732. cent from the company’s revenue craft liquor laws ripe for legal The new regulations will take ef- “You can’t expand your busi- Periodicals postage paid at Detroit, MI and additional ness online like other businesses mailing offices. POSTMASTER: Send address since the legislation surfaced just challenges. fect 90 days from the Dec. 18 pas- changes to CRAIN’S DETROIT BUSINESS, Circulation before Thanksgiving. “They just can’t resist filing stu- sage of the bill in the Michigan can,” she said. “You can only ex- Department, P.O. Box 07925, Detroit, MI 48207- 9732. GST # 136760444. Printed in U.S.A. Resnick’s business fills a niche pid laws, and are, in fact, putting Senate. pand through bricks and mortar.” Entire contents copyright 2008 by Crain by offering consumers access to my kids through college,” he said. He said that if Michigan was Daniel Duggan: (313) 446-0414, Communications Inc. All rights reserved. Reproduction or use of editorial content in any the wide range of wines. “We offer The Supreme Court ruled that a opened up to retailers shipping [email protected] manner without permission is strictly prohibited. 20090119-NEWS--0026-NAT-CCI-CD_-- 1/16/2009 5:49 PM Page 1

Page 26 CRAIN’S DETROIT BUSINESS January 19, 2009 RUMBLINGS WEEK IN REVIEW FROM WWW.CRAINSDETROIT.COM, WEEK OF JAN. 10-16

reaus across the state. tax reforms, including im- One of the most courted Approvals OK’d provements to the Michi- Displaced engineers ‘Museums’ from religious conferences will gan Business Tax and re- take place Jan. 27-30 in peal of its nearly 22 percent offered scholarship Grand Rapids. The Religious for 2nd Detroit- surcharge, along with re- The Engineering Society Conference Management Asso- ductions in property taxes. of Detroit, General Motors MRA off to the ciation is a convention for He also renewed a call to Corp. and Michigan Tech- people who plan religious Windsor bridge cut legislators’ pay and end nological University are of- conventions. Grand Rapids’ free lifetime health care fering full scholarships total economic impact from he U.S. Department of benefits for retired lawmak- for a one-semester, the event could top $15 mil- Transportation on ers. three-credit course for inauguration lion over the next five years. T Thursday issued the up to 60 displaced engi- But the RCMA convention required environmental ap- neers with bachelor’s de- unerals and a tribute The other display is “Re- is expected to have impact provals for a controversial Ex-Kilpatrick associate grees in engineering to to an assassinated flections: The American Fu- well beyond west Michigan. $1.5 billion second bridge claims pressure meet the demand for F president are among neral” and quite appropri- Carla Penzabene, director connecting Detroit and green jobs in advanced Donald Watkins, a Florida Michigan’s contribution to ately is open at Arlington of sales for the Detroit Metro Windsor. propulsion technology. attorney and businessman, Barack Obama’s inaugura- National Cemetery today and Convention & Visitors Bureau, The decision allows The course runs on said former city of Detroit tion festivities this week. at Fort McHenry in Baltimore said she is flying in four Michigan to begin con- Thursdays from 5 to 8 Treasurer Jeff Beasley pres- St. Clair Shores experien- on Friday and Saturday. RCMA planners prior to the struction planning and buy p.m. Feb. 5 through May sured him to make a tial event marketing compa- That display honors veter- convention so she can show- land required for construc- 14 at the Engineering So- $100,000 donation to then- ny MRA Inc. sent two 53-foot ans, public safety officers, case venues in Detroit. tion of the span beginning ciety’s Southfield head- Mayor Kwame Kilpatrick’s le- semi-trailers to Washington presidents and historical fig- In June, Cobo will host an in Detroit’s Delray neigh- quarters. gal defense fund in ex- last week, and inside the ures through its exploration expected crowd of 55,000 for borhood. Additional U.S. For information, call change for a $15 million rigs are portable museums of funeral customs. the National Baptist Congress and Canadian governmen- (248) 353-0735, ext. 112. investment by city pension commissioned by clients. of Christian Education. The tal approvals, along with boards in his now-failed One is “Abraham Lincoln: convention — one of 16 De- likely lawsuits, will have to Michigan angles for TradeWinds freight airline, models, Vice Chairman Self-Made in America” and troit has planned for 2009 — be dealt with before a new The Detroit News reported. Tom LaSorda said Wednes- was commissioned by the will account for almost half crossing moves forward. religious conventions Beasley denied the claims. day, the AP reported. Abraham Lincoln Presidential of all convention traffic this Also, the Public Border Op- With their outsize atten- Watkins said he was also December residential Library and Museum. The Lin- year. The Detroit bureau is erators Association says the dance rates and economic asked for cash for the re- sales in metro Detroit were coln display will be open to planning to ramp up appeals Ambassador Bridge at impact, religious conven- election campaigns of pen- up 32 percent over 2007, the public until Saturday at to religious convention plan- Windsor had 2.8 million tions are fast becoming a top sion board members. MLS RealComp II Ltd. said. the old Washington Conven- ners this spring with mar- truck crossings in 2008, priority for convention bu- Also, the FBI on Thurs- William Beaumont Hospi- tion Site. keting and advertising. down 15 percent from 2007, the AP reported. day raided two businesses tals intends to sell bonds connected to Detroit con- worth $390.5 million Crain’s seeks ‘heroic’ business owners — who like the Wings tractor Bobby Ferguson, link- through the City of Royal Law Dept. head resigns ing him to a wide-ranging Oak Hospital Finance Authori- Running a business in ny’s product or service The evening will include over ‘ghetto court’ remark investigation also involv- ty, according to Fitch Rat- the best of times is hard, and the nominator’s own dinner at the Legends ing the U.S. Department of ings. but in this tough economy, title, daytime phone num- Club at Joe Louis Arena The city of Detroit’s top Housing and Urban Develop- Also, groundbreaking on it can require heroism. ber and company Web ad- and ice-side seats for the lawyer resigned Thursday ment’s Office of the Inspector a $160 million proton beam So is the owner of your dress. A short description game next to the Red after she allegedly said the General and the criminal di- therapy center has been company a hero? of why the nomi- Wings’ bench. city’s predominantly black vision of the U.S. Environ- put on indefinite hold. Crain’s is looking for nee is a hero in This special recognition 36th District Court was “act- mental Protection Agency, AAA announced layoffs examples of own- a tough econo- is co-sponsored by Parry, ing like a ghetto court,” the The News reported. of 200 employees in six ers of small to my should be no Murphy and Associates Detroit Free Press reported. states, primarily because midsize com- more (www.parrymur- Kathleen Leavey, who is N THE MOVE more members conduct panies — any- than 250 phy.com) and white, said she was refer- O business on the Internet in- where from $1 words. Mike Parry, a ring to the court’s long Jim Schwartz, most re- stead of AAA branches. million to $500 Companies turnaround con- lines and slow service, not cently the Tennessee Titans’ Seventy-five were laid off million in sales should be based in sultant. its mostly African-Ameri- defensive coordinator, was locally; 146 statewide. — whose stories would be Parry, Crain’s can judges. Leavey said she named Thursday as the A proposed state er- of interest to other Crain’s any of the five Publisher Mary will return to her former new head coach of the De- gonomics standard is mov- readers. counties Crain’s Kramer and the post as an attorney for the troit Lions. Schwartz re- ing ahead after two state Employees of privately covers: Wayne, Red Wings will Law Department. places Rod Marinelli. commissions on Wednes- held companies can nomi- Oakland, Ma- host the winning David Wathen to presi- day supported developing nate their company’s own- comb, Washtenaw business owner dent and CEO of TriMas rules governing how em- er for this recognition. and Livingston. SBA launches program to Parry and their nomina- Corp., replacing Grant Beard. ployers must identify and Entries should be e- The company tor at the game-night din- help inner-city businesses Wathen was most recently address conditions that mailed to jhsmith@ owner selected by Crain’s ner. a director for Bluffton, Ind.- could put workers at risk crain.com by Feb. 6. Win- editors will be profiled in Twenty Detroit business- The first 10 submissions based Franklin Electric Co. for job-related injuries. ners will be notified by Crain’s and, with his or es will have a chance to par- the week of Jan. 19 will re- Hiller’s Markets an- Feb. 11. Nominators her nominator, invited to ticipate in the second phase ceive two free tickets to nounced it will no longer should include: Name of a special evening Feb. 20 of the U.S. Small Business Ad- sell tobacco products at any the North American Interna- OTHER NEWS company, owner’s name, when the Detroit Red Wings ministration’s Emerging 200 of its seven local stores. description of the compa- play the Anaheim Ducks. tional Auto Show. initiative. Gov. Jennifer Granholm William Beaumont Hospi- Through a six-month signed into law legislation tals, Henry Ford Hospital, the program, senior executives calling for $288 million to Detroit Medical Center, St. will be offered 60 to 80 be spent on the expansion John Hospital, Trinity Health hours of training in organi- of Cobo Center. and Oakwood Hospital have zation management, The plan also hands over filed legal papers to sup- You can now have your say on our Web site growth strategies and Cobo’s operation to a five- port their claim that United strategic planning. member authority. American Healthcare, the for- The strength of any organization is Look for the comment box at the E200 is free. Participants CSM Worldwide said mer manager of failed Med- its people. bottom of our story and blog must have been in business Monday it expects 2009 U.S. icaid HMO OmniCare, pages. Now we’re hoping the people who for three years, have rough- sales to hit a 27-year low of should pay $75 million in read our Web site can help us You can leave a comment once ly $400,000 or more in annu- 11.5 million, then rebound damages and unpaid you go through our free and easy make it better. al revenue and be within a to 13.6 million in 2010, the claims, the hospitals said registration process. Somewhat quietly, we added new certain geography. AP reported. in a brief filed Thursday in Want to rate a story? Look at the features to crainsdetroit.com last Interested owners can To cut costs, the Detroit Wayne County Circuit Court. right-hand side of any story page, week to allow you to comment on contact Constance Payne-Lo- Institute of Arts last week stories, rate our stories, and near the top, and you’ll see a system of ratings from one to five gan at (313) 226-6075, ext. canceled two exhibits from recommend stories to other stars. 279, or visit the SBA online its permanent collection OBITUARIES readers. Want to recommend a story to at www.sba.gov/e200. and a third, international I say “quietly” because we wanted another reader? That’s also in the exhibit that was scheduled Phyllis Shine, widow of to roll out our improvements and upper right of any story page. to open this fall. former Detroit Free Press WEB WORLD Dillon calls for tax reform have time to troubleshoot before We hope you’ll be part of our Chrysler L.L.C. is not in publisher Neal Shine, died Alan Baker things were ready for prime time. journalistic process. Leave us a House Speaker Andy Dillon discussions to sell brands of an apparent heart attack Now we’re ready. Web General Manager comment today. on Wednesday called for or plants that make current Jan. 14. She was 76. DBpageAD.qxd 1/14/2009 9:53 AM Page 1

High-speed Internet when you need it. Mobile Broadband on America’s Largest and Most Reliable 3G Network.

Mobile Broadband. One of the many tools in the FREE Verizon Wireless Small Business Toolbox. UM 175 Nothing slows you down when you have a mobile broadband USB USB Modemm modem for your PC or Mac. Browse the Internet and access email at $49.99 2-yr. price less $50.00 mail-in rebate debit card. broadband speeds. So you can work just about anywhere work takes New two-year activation on a Mobile Broadband plan requireed. you. Visit a Verizon Wireless store and ask a small business specialc ist to recommend the best solution for your small business.

Call 1.800.VZW.4BIZ Click verizonwireless.com/smallbusiness Visit your local Verizon Wireless store Activation fee/line: $35. IMPORTANT CONSUMER INFORMATION: Subject to Customer Agmt, Calling Plan, rebate form and credit approval. Up to $175 early termination fee, and other charges. Mobile Broadband is available to over 260 millionllionpeoplein258majormetropolitanareasOffersandcoveragevaryingbyservicenotavailableeverywhereReb people in 258 major metropolitan areas. Offers and coverage, varying by service, not available everywhere. Rebate takes up to 6 weeks & expires in 12 months. Limited-time offer. While supplies last. Shipping charges may apply. See verizonwireless.com/bestnetwork for details. © 2009 Verizon Wireless. 74079 DBpageAD.qxd 12/12/2008 11:26 AM Page 1

BVSbVW\UaeSR]T]`

63/:B6A/D7<5A/11=C

#!Q][ BVSbVW\UaeSR]T]`R`SO[a—

<_\j^
J^_hZ
8Wda
Ze[i
dej
fhel_Z[
jWn
eh
WYYekdj_d]
WZl_Y[$
Fb[Wi[
Yedikbj
Wd
WYYekdjWdj
eh
jWn
WZl_ieh
\eh
fhe\[ii_edWb
WZl_Y[
ed
j^[i[
Wh[Wi$
<_\j^
J^_hZ
8Wda"
C[cX[h
<:?9$







;gkWb
>eki_d]
B[dZ[h$