Purely

Business Plus: Pure Foods opens for The Changing Face of Health Care: business in Kingsport What Virginia and Tennessee want from Mountain States and Wellmont

Pure Foods President John Frostad Photo by Tara Hodges and The octogenarian on the line

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www.ecu.org Your savings federally insured to at least $250,000 and backed by the full faith and Online at bjournal.com credit of the National Credit UnionFebruary Administration, 2016 | The Business a U.S. JournalGovernment of Tri-Cities Agency. TN/VA 3 | INSIDE THIS EDITION BusinessThe | COVER STORY Journal of Tri-Cities Tennessee/Virgina 8 Purely Business Office 423.854.0140 Pure Foods opens for business in Kingsport: an economic development Publisher William R. Derby success story that’s good for you. [email protected] 423.979.1300 Co-Publisher Cover photo: John Frostad of Pure Foods. Jeff Derby Photo by Tara Hodges, Sweet Snaps Photography. [email protected] 423.306.0104 Managing Editor Scott Robertson [email protected] 423.767.4904 | FEATURES Associate Editor Jeff Keeling [email protected] 14 The Changing Face of Health Care 423.773.6438 What the states of Tennessee and Virginia are calling on Mountain States and Staff Writer Wellmont to reveal in their COPA applications. Sarah Colson [email protected] 423.854.0140 Director of Business NETWORKS networks Development and Marketing 16 Jeff Williams NETWORKS Sullivan County, the economic development organization, [email protected] is living up to its name in 2016. 423.202.2240 Sales & Marketing Beth Collier [email protected] 18 BMS to host second football game 423.470.2009 East Tennessee State University and Western North Carolina will play the second Robin Williams football game at the last great colosseum. [email protected] 423.794.6938 Creative Derby Publishing, LLC 20 The octogenarian on the assembly line Graphics Director / Judd Shaw For Charles Bowers, a little thing like turning 85 years old was no reason to stop working. [email protected] 423.833.2726

23 Broadcast News SO long, ABC 19, hello ABC 11.2. It’s a whole new world for broadcasting, albeit The Business Journal of with some familiar faces returning. Tri-Cities Tennessee/Virginia is published monthly by Derby Publishing, LLC 1114 Sunset Drive, Suite 2 Johnson City, TN 37604 Phone: 423.854.0140 ©2016 | DEPARTMENTS Periodicals postage paid at Johnson City, Tenn. and additional offices. 5 From the Editor 24 On the Move 30 The Last Word ISSN#10406360 6 Trends 26 Awards & Achievements POSTMASTER: Please send addresses to 7 FYI 27 Med Briefs Business Journal of Tri-Cities, TN/VA 1114 Sunset Drive, Suite 2 Johnson City, TN 37604

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4 The Business Journal of Tri-Cities TN/VA | February 2016 Online at bjournal.com | FROM THE EDITOR The State of Tennessee

overnor Bill Haslam see. He could have Gdelivered his annual used his leadership State of the State address to pass a health care the evening of Feb. 1 in plan that would have Nashville. It was an upbeat saved lives and created message with the theme, opportunity. Instead, he “unique opportunity.” caved to the extremists in his Of more substance was party.” the inclusion of details I agree with Mancini’s desire to have regarding the governor’s Tennessee accept the federal Medicaid dollars that are flowing proposed budget. now to other states. The notion that Tennessee is somehow doing Conservatives love something noble by not accepting those particular federal dollars the fact that the governor is, at best, hollow, considering Tennessee has the third largest is putting $100 million percentage of its total revenues from the federal government of into the state’s Rainy Day any state in the union (39.5 percent, according to the Washing- Fund. That fund will end ton Post article, “Some of the most conservative states rely most the fiscal year at just over on federal government aid” by Niraj Choksi, Jan. 6, 2016). two-thirds of a billion dollars. It’s important because Tennessee’s The simple fact of the matter is Tennessee’s legislators constitution mandates a balanced state budget. In lean years, have no stomach for accepting federal dollars in a high profile Rainy Day dollars are used to prevent tax hikes. way, such as voting for something that smacks of Obamacare. State employees love the fact that the governor is including But they’ll take the dollars that are flowing into the state from almost $100 million in wage increases for them, with almost 40 Washington already, because they don’t have to take public percent of that earmarked for those rank-and-file workers who responsibility for those. make less than $50,000 annually. So Mancini’s desire to have Haslam bring Insure Tennessee The central focus of Haslam’s budget is education. He makes back to the legislature again in 2016 is tilting at windmills. She the largest contribution to K-12 history in Tennessee history would have the governor waste everyone’s time with a doomed (without a tax increase). The budget further funds Haslam’s Drive effort. That’s not efficient government. to 55 plan, including: Just so, legislators reportedly told the governor before • $50 million for the Complete College funding formula for the legislative session began they would not fund increases in higher education; highway spending until his administration had made a good • $20 million for the Drive to 55 Capacity Fund to help com- faith effort to pay back into the highway fund the dollars that munity and technical colleges meet the growing demand for were taken from it to pad the general fund during leaner times. degrees and certificates; and Haslam’s currently proposed budget puts $130 million back. • $10 million for the Labor Education Alignment Program Now that’s just a drop in the bucket compared to the $6 billion (LEAP) helping communities align degree and course offerings in projects awaiting funding. But Haslam is playing ball with the with the needs of the local workforce. legislature, trusting they’ll give highway funding a fair shake next In addition, the governor is proposing more than a half year. If they don’t, that’s won’t be Haslam’s fault, though Mancini billion dollars to fund new buildings at UT-Memphis, UT- may well skewer him for it anyway. Chattanooga, Tennessee Tech and Tennessee State. Haslam is right in saying the state is in far better shape The response from the state Democratic Party leadership, such financially than it has been in several years. And his pro- as it is, gave little in the way of specific rebuttal to the governor’s education stance is not just welcome, it’s necessary, given the gap remarks about what’s happening in Tennessee, instead focusing on between Tennessee and competing states in workforce readiness. something that is not happening, Insure Tennessee. Tennessee is going in the right direction. Hopefully the governor “Governor Haslam has such pretty plans for the year. Sadly, has the fortitude to stay the course and not be bogged down by though, our Republican Governor is not a leader,” said Mary Man- nuisance-creating extremists on either side of the aisle. cini, chair of the Tennessee Democratic Party. “Just look at Insure Tennessee, the health care plan he designed to attract Republican votes. Yet, even with a Republican supermajority in the House and Senate he couldn’t get it out of committee.” “Even worse,” Mancini continued, “when the going gets tough, he gave up. He could have brought back Insure Tennes-

Online at bjournal.com February 2016 | The Business Journal of Tri-Cities TN/VA 5 | TRENDS December home sales cap boom of 2015 December homes sales surged topping off a record year for the housing market in the 11-county area monitored by the Northeast Tennessee Association of Realtors’ Trends Report. There were 444 closings on existing home sales. That’s a 19.4 percent improvement from December 2014. The annual total was 5,287, up 9.6 percent from 2014. December’s average home sales price was $159,445, up 7.5 percent from the same month last year. December’s inventory was 4 percent lower than December last year. Inventory was tighter all year but not enough to exert a negative pressure on the market. The average single-family home sold last month was on the market for 150 days, down from 165 days a year earlier.

NOTE: NETAR counts city sales as those made in a city’s high school zone. City data is included in county totals.

6 The Business Journal of Tri-Cities TN/VA | February 2016 Online at bjournal.com | FYI Ups A quick check of the conventional wisdom on &Downs who’s going what direction in Tri-Cities business

UVA-Wise – While most of us pine for more manufacturing jobs, it’s a fact that retail has made up a large part of the employment growth in the Tri- Cities over the last year, especially when one nets out the jobs lost to layoffs at CSX and Sprint. The University of Virginia at Wise is offering a retail management and operations workshop series in April and May at the Southwest Virginia Higher Education Center in Abingdon. The curriculum includes sales and service, human resources, store operations, merchandising, and financial reporting. It’s yet another example of a small school being nimble enough to directly address a need in the community workforce.

Eastman sales and earnings, again – Eastman Chemical Co. sales revenue was $9.6 billion for 2015, a 1 percent increase compared with 2014 due to sales of products of acquired businesses partially offset by lower sell- ing prices. Excluding certain non-core items, operating earnings for 2015 were $1.7 billion, a 6 percent increase compared with 2014 primarily due to earnings of the acquired businesses and lower raw material and energy costs exceeding lower sell- ing prices. Reported 2015 operating earnings were $1.4 billion compared with $1.2 billion for 2014.

Futbol – With the Super Bowl in the books, we can turn our attention to what the rest of the world refers to as football. The Tri-Cities will have a semi-pro soccer team for the first time in 2016. The Tri-Cities Otters FC will host seven home games from May through July at Science Hill High School’s Kermit Tipton Sta- dium. The Otters will play opponents from the Carolinas, Georgia and West Virginia. We look forward to seeing how well semi-pro soccer draws compared to Appala- chian League baseball. Conventional wisdom says baseball is graying and soccer is up-and-coming. We shall see.

The FCC – While it’s not specifically a local “up,” we think it’s one you’ll be glad to hear about (unless you’re an investor in DISH, DirecTV, Comcast or Charter). The Federal Communications Commission is, according to a Reuters News Agency story, about to tell these companies they can no longer force customers to rent TV-top boxes in order to receive TV service. As a customer, you may soon be able to receive your TV signal through a tablet, smartphone or com- puter. The FCC estimated in the Reuters story the average customer spends $231 a year on box rental, which adds up to about $20 billion nationwide. That number has gone up 185 percent in the last 20 years.

Sprint – Blountville knows a little of what St. Louis is feeling these days. The gateway city opened its tax wallet to help fund a domed stadium for the St. Louis Rams 20 years ago, with the idea that it would be paid off in 30 years (St Louis was poaching the Rams from Los Angeles). The Rams left St. Louis last month to return to their former home, leaving St. Louis with $36 million left to pay on an empty dome. In 2011, taxpayer dollars went to fund the incentive package to con- vince Sprint to bring jobs across the state line from Bristol, Va. But last month, Sprint announced plans to shutter the Blountville facility. The company has every right to do so, of course. But it always leaves a bad taste in one’s mouth to see a company take incentive dollars and run.

Online at bjournal.com February 2016 | The Business Journal of Tri-Cities TN/VA 7 Chamber President Gary Mabrey, 2016 Chair Joe Carr, Amzi Smith Award Winner Bill Greene and outgoing Chair Jeff Jones.

Jeff Jones (right) passes the gavel to Joe Carr. Photos by Jeff Derby and Sarah Colson Johnson City Chamber 101st Annual Membership Meeting

The Chamber of Commerce Serving Johnson City, Jonesbor- ough and Washington County hosted the first annual meeting of its second century Jan. 15 at the Millennium Centre. Bank of Tennessee’s Bill Greene was named the third-ever recipient of the Amzi Smith Award. Retired SPS Executive Al Fatheree was named to the Chamber Hall of Fame. Outgoing Chair Jeff Lee Fatherree, Sallie Deaton, Lori Fatheree, Al Fatheree, Kerry Jones handed off the gavel to 2016 Chair Joe Carr. & Bob Tripp

Jonesborough Mayor Kelly Wolfe with Johnson City and Washington County Commissioner Hall of Fame inductee Al Fatheree David Tomita Valda Jones with Brenda Whitson

8 The Business Journal of Tri-Cities TN/VA | February 2016 Online at bjournal.com Bristol Chamber Chair Jim Maxwell with former Virginia Tech Hokies Tennessee supporter Dr. Bobby Griffin with former Volunteer football star Eric Smith. Photos by Scott Robertson quarterback Condredge Holloway Chamber luncheon sports Battle at Bristol theme The Bristol Chamber of Commerce Annual Awards Luncheon at the Bristol, Va., Holiday Inn took the form of a giant tailgate party for the Sept. 10 Battle at Bristol football game between Tennessee and Virginia Tech. The food was served tailgate style from a number of different member restaurants. The award recipients received MVP trophies, and the program featured an ESPN announcer talking with former Hokie and Volunteer football greats about the upcoming game.

The mayors of Bristol, Tennessee and Virginia, Lea Powers and Ar- chie Hubbard, flank Bristol, Tennessee City Manager Bill Sorah, who actually is a football official in his spare time. Speedway Children’s Charities Executive Director Claudia Byrd poses with ESPN’s Dr. Jerry Punch, who served as master of ceremonies for the event

Speedway Motorsports founder O. Bruton Smith was given the Chamber’s Lifetime Achievement Award. Shown above are Maxwell, Food City President Steve Smith, Byrd, Bristol Motor Speedway Vice President and General Manager Jerry Caldwell and Bristol Chamber The Bristol Chamber of Commerce staff poses with Punch (center) President Beth Rhinehart. after the event.

Online at bjournal.com February 2016 | The Business Journal of Tri-Cities TN/VA 9 | COVER STORY Pure Foods cuts the ribbon, and the calories New world headquarters for manufacturer of healthy snacks opens

By Scott Robertson

ohn Frostad, president and CEO of Why here? JPure Foods told the crowd at the Jan. Frostad and his team have experi- 29 ribbon cutting for the company’s new ence in the Tri-Cities, having operated Snack world headquarters in Kingsport, “We’re Alliance in Bristol for many years. They knew going to make this the healthiest snack food the quality of the workforce, and they correctly company in North America.” It was not so surmised they would receive a warm welcome long ago that the title of healthiest snack from NETWORKS Sullivan Partnership, the food company in North America would State of Tennessee and the Kingsport Eco- have been faint praise, along the lines of nomic Development Board. “the best hockey player in Ecuador.” Today, Another factor was getting the perfect however, changing demographics and building, brand new and ready to meet the better education about personal nutrition company’s particular needs. J.A. Street and As- are making the healthy snack field a rapidly sociates built the 88,000-square-foot facility in growing segment of the food industry with a less than a year, with special features designed constantly increasing number of competing just for Pure Foods. companies and product offerings. “We have multi-capability certifications Small snack-makers are sprouting in this plant – gluten-free, allergen controlled up at a craft brewery-like pace across the – all of that. Not a lot of manufacturers have continent. Frostad, however, wants Pure that,” Frostad said. “If you were to see the Foods to be something more. In addition engineering diagrams of the flow of air, for to creating its own product offerings, instance, you would see that it only flows in Frostad says, Pure Foods will work as a one way.” That’s a necessity for being able to contract manufacturer for some of the other tell regulators and consumers that a food that healthy food companies, while also creating is free of something is, in fact, absolutely free. products for retailers to sell under their own “You can’t have one little trace of anything,” labels (think Terry’s Chips at Food City, only Frostad said. in the natural food aisle). The Kingsport facility is built for expansion. The packaging room has three Pure Foods CEO John Frostad shows how much space is available for expansion at the company’s new world headquarters and manufacturing center. Photos by Tara Hodges, Sweet Snaps Photography.

10 The Business Journal of Tri-Cities TN/VA | February 2016 Online at bjournal.com machines, but it’s built to house eight. That, he said, translates into demon- There are three production lines. The strably healthier, tastier food. building is ready for two more. “If you look at the snacks that are out Currently, the company employs there, they’re not as healthy, even though about 50 people, most of whom have been they are purporting to be. Ours will be working at the two soon-to-be-phased-out vegetables or fruit first. Ours will have 20 facilities in southwest Virginia. The equip- percent of daily nutrition. Ours will have ment and jobs from those sites will be high fiber. Ours will have protein and be moving to Kingsport in the next few weeks. functionally better for you. But the kicker By the time Pure Foods hits its stated is, with ours, you don’t have to sacrifice employment goal of 275 at the new facility taste. That’s the whole goal.” in or before the year 2020, it plans to knock out the back wall and build on an So what’s actually being made? additional 88,000 square feet of distribu- The first product line to roll out tion center space. will be a cheeze puff (not cheese, this is a non-dairy, vegan product). “Today Why the new building matters we are making the cheeze puffs as a It’s not just the moving of air that foundational product from chickpea and makes Pure Foods new facility a differ- lentille instead of traditional ingredients Frostad exchanges congratulations with Kingsport Mayor John Clark, to whom Frostad ence-maker in snack food manufacturing, like corn or rice,” Frostad said. “This jokingly refers as, “my twin.” Frostad said. It’s the processes that can creates more products with more complex only take place inside it. carbohydrates that help satiate and give “Nobody else can do what we do here, more protein and fiber. baking operation.” especially on the fresh fruit and vegetable “An interesting product we have on Following that, Frostad said, a side,” Frostad said. “Our dehydration deck that we will launch in the next few “tsunami” of healthy new products will technology is new-to-world. It’s patented, months is called Trail Chip. The concept be produced, some of which will tran- so nobody else can do it. We’re able to is taking trail mix and putting it into a scend snacking to be served as part of a take fruits and vegetables, dehydrate them convenient chip form without the fat. We meal. “We have the ability to produce in down and directly integrate them into integrate blueberries, cranberries and extruded form, what almost looks like a snacks. In fact, our patented dehydration pumpkin and sunflower seeds. It really is rice krispy for bar integration. We have technology allows us to maintain 95 a crossover snack. It’s making the migra- partnered up with some folks here in percent of the nutrition of fresh fruits and tion over what people are actually doing. Tennessee that will take our extruded vegetables that we then integrate into the People might eat a cracker or a cookie or product and form it into those bars. snack foods we provide.” a cheese puff. What we’re doing is giving That’s one example. We can do prepack- them choices so that aged salads. We can do a tortilla strip when they snack, they that’s baked, not fried.” can have a healthy And retailers whose snack aisle offer- snack whether ings are dominated by Frito-Lay are eager it’s sweet, salty or to make room for Pure Foods products in whatever.” their natural food sections, Frostad said. “Another “Every inch counts in supermarket floor product we’re coming space. The interesting thing is, they want out with is the Vegan help getting healthier products. So they’re Bite, which integrates coming to us and saying, ‘Look, we want to broccoli with a nice support you.’ cheddar alternative,” The same thing that’s driving that Frostad said. “The eagerness on the supermarkets’ part is broccoli is what what inspired the creation of Pure Foods you taste first. So as in the first place, Frostad said. “They’re snacks go – sweet, seeing that people will make a healthy salty, savory and choice themselves because they want to eat so on, we’re really something that’s still tasty, but without all blurring a few lines. those calories and fat and simple carbo- And again, what gives hydrates and negative stuff. Our whole us that capability is concept is to give them those alternatives. Frostad receives best wishes from Tennessee Lieutenant Governor both the dehydrating Our mantra is that better health comes Ron Ramsey as Governor Bill Haslam looks on immediately follow- operation and the from better snacking.” ing the Jan. 29 ribbon-cutting.

Online at bjournal.com February 2016 | The Business Journal of Tri-Cities TN/VA 11 | FEATURES Regulators’ role in proposed merger ramping up

By Jeff Keeling

he face of health care in the greater health details and impacts on payers to one TTri-Cities is taking on a distinctively I’m glad the state has taken a that stood out for its likely interest to area state-regulated appearance as Mountain residents – and showed just how transparent States Health Alliance and Wellmont Health robust posture. They’re taking it the systems will have to be. System draw closer to applying to Tennessee seriously, which takes away the The observation notes “limited detail” and Virginia for approval of their proposed argument that they’re not provid- of plans to reduce duplication of costs merger. Activity is ramping up at both states’ post-merger, including through job cuts. The departments of health and attorney generals’ ing adequate supervision. department observes that most other hospital offices in anticipation of an activist state role “ mergers result in a reduction of full-time in any merged system’s business. - Alan Levine, CEO, Mountain equivalent positions, and says it needs ad- You may not have heard of Malaka ditional detail. “Specifically,” the letter notes, Watson, Jeff Ockerman or Erik Bodin, but States Health Alliance “the department will require a good faith they represent the changing face of health care estimate of the number of full-time equivalent in the Tri-Cities – despite the fact they work in drafted Tennessee’s emergency rules, said positions estimated to be eliminated each Nashville and Richmond. during a late December interview with the year, or if none, other plans to achieve stated Their jobs? Craft regulation requiring any Business Journal that also included Ocker- efficiencies.” merged system to show the state: man. “We really are trying to take a sort of Three primary tasks lie ahead of Watson, • What it will spend, what it will charge and panoramic approach in terms of looking at it Bodin, Ockerman and their colleagues: what it will earn; from all angles. Population health is obvious- making the rules governing a merger effec- • What it will do, how it will do it and how ly high on the list, but balancing that with the tive and defensible; helping their respective it will help consumers save money and get economics and how it will impact consumers commissioners of health (John Dreyzehner healthier; and is a high priority as well, so we’re trying to in Tennessee and Marissa Levine in Virginia) • How the change for the better system make sure we have the right resources to help determine whether the merger applications leaders say they’re creating will outweigh the us effectively evaluate the application once justify approval; and representing those com- harm done by the fact the state is allowing the we receive it.” missioners in the “active state supervision” formation of a virtual monopoly. Wellmont and Mountain States are well designed to protect the public and to make any If a Certificate of Public Advantage past their initial target date (around Nov. 1, merger hold up under judicial antitrust scru- (COPA) is granted in Tennessee, and a 2015) for filing a COPA application, likely tiny. Both states specifically wrote or rewrote Cooperative Agreement in Virginia, it will owing to the endeavor’s complexity. They did, laws to allow for a merger with a clear eye come after exhaustive work by people such as however, submit a 34-page “pre-submission toward previous federal interference (primar- Ockerman, a Tennessee Department of Health report” Jan. 7. By Jan. 15, DOH had parsed ily from the Federal Trade Commission but (DOH) policy planner; Watson, a Tennessee it and responded with a letter containing also the Supreme Court) in previous mergers DOH attorney; and Bodin, the director of six “observations” accompanied by depart- that reduced competition. Both states’ laws the Virginia Department of Health’s (VDH) ment positions. Like the systems’ report, the mention prominently a state policy to displace Office of Licensure and Certification. Two observations ran the gamut from population hospital competition with regulation, and essential compo- actively supervise nents – consumer that regulation, protection and “to promote the betterment of cooperation and population health coordination – form the pillars among hospitals of their work. in the provision of “It’s defi- health services and nitely uncharted to provide state territory, and it’s action immunity something new from federal and for us as well as state antitrust law Tennessee and the to the fullest extent hospital systems,” possible to those Watson, who hospitals…”

12 The Business Journal of Tri-Cities TN/VA | February 2016 Online at bjournal.com “The department understands the gravity of the changes that are occurring all over the country, in terms of healthcare organization and delivery of health care, and the financing Malaka Watson environment of health care,” Ockerman said. “To take it down more to this regional level and whether approval of a COPA could strengthen the economic viability of these systems even though it weakens competi- tion – ‘how does that end up working to the advantage of the public, especially in terms of improving population health?’ These are all questions that we have and are thinking about every day seriously.” When Ockerman and Watson spoke with the Journal, a DOH team including planners, analysts and attorneys was in the middle of due diligence, preparing to move Tennessee’s rules from emergency to permanent status. The complexity of that task was highlighted by their acknowledgement they wouldn’t have time to respond to comments on the initial rules, draft proposed changes and hold hearings before the emergency rules expired Jan. 10. Yet with the hospital systems already well past their initial early November goal for COPA and Cooperative Agreement applica- tions, DOH needed to keep the train on the erman said. “There are potentially other areas the severity of the gap between Southwest track. So its rules became “permanent” Jan. of interest that will come up, but particularly Virginians’ population health and that of their 10, but will be subject to pending changes from the Department of Health’s perspective, fellow Virginians. drafted by DOH personnel and possibly the health of the population in that region is “Virginia has been working on … a popu- modified after public hearings. of really primary concern to us, and if there’s lation health improvement plan,” Bodin said a way that we can all help improve the health in a Feb. 3 interview. “One of the things we’re COPAs are rare birds but this statistics in that area, we’d be happy to have looking at is how we evaluate this cooperative one is unique that be the end result.” agreement request, and the ongoing monitor- Given the American bias toward free To that end, the emergency rules ing and performance, and aligning that with markets, anti-competitive hospital system have significant requirements regarding that plan to see if that provides us with an mergers as significant as a Wellmont-MSHA the creation of measures to “continuously opportunity.” marriage are rare. COPA laws exist in a evaluate the Public Advantage of the results As early as their April 2, 2015 announce- number of states but few COPAs actually have of actions approved in the COPA.” Those ment of a planned merger, Wellmont and been granted (Tennessee’s law actually existed include improvements in the population’s Mountain States mentioned a population for years before the current situation, but had health that exceed measures of national and health element. Their Jan. 7 pre-submission never been used). Those that have, DOH’s state improvement. Similarly, the Virginia report outlined a four-pronged approach in Ockerman said, have primarily addressed rules, which Gov. Terry McAuliffe signed into its “Commitment to Improve Community consumer protection. But those, including an law Jan. 18, devote plenty of ink to popula- Health,” on which it pledged to spend at least oft-cited one from 1995 that allowed Mission tion health. Virginia’s rules charge its health $75 million over 10 years. and St. Joseph’s hospitals in the Asheville, commissioner with developing the population The focus areas include “ensuring strong N.C. market to merge, were primarily granted health piece, both during selection of mea- starts for children” with programs designed before healthcare reform brought a focus on sures for reviewing the cooperative agree- to improve measures ranging from childhood improving population health. ment’s proposed benefits, and during ongoing obesity and neonatal abstinence syndrome to “Population health and access to health monitoring if a merger takes place. The chart the number of children reading on grade level services as well as the economic impact on the on this page, which is included in the hospital consumers are the three primary things,” Ock- systems’ pre-submission report, indicates SEE REGULATORS, 14

Online at bjournal.com February 2016 | The Business Journal of Tri-Cities TN/VA 13 | FEATURES

REGULATORS, CONTINUED and investment in addressing the region’s In October 2014, Virginia Secretary of economic development and its most vexing Health and Human Resources Dr. Bill Hazel by third grade; “helping adults live well in the health problems – all are promised results of addressed the changes in healthcare market community” with focuses on diabetes, heart the merger. dynamics, and how they might relate to a disease and several cancer types; “promoting On the Tennessee side, DOH wants to be local merger request during an interview a drug free community;” and “decreasing sure the final application (the systems’ letter with the Business Journal. His words, which avoidable hospital visits and ER use” by of intent to file expires March 15) includes also touched on population health, seem helping “high-need, high-cost” uninsured sufficient details in all aspects. In addition prescient today. people access care at earlier stages and reduce to its position on job reductions, the depart- “I think it probably is a reach to say the expensive critical care use. ment’s other observations highlight just how markets are working real well in health care Community health, in turn, is one activist the state will be should a merger occur. right now, so it would not be unusual to say, of six key areas in the report, which hints One relates to regional health and population then, ‘well what are our other choices?’ In strongly at what will go in the systems’ health disparities, calling for, “granular detail” Virginia we are typically market/competitive- actual applications. Other areas are enhanced about “factors that influence the health and based and that’s what I think the General health services, expanded access and choice, health disparities of counties, communities, Assembly thrives on. So just guessing, it would investing in research, attracting and retaining and groups within them, particularly as it be an interesting argument to make that we a strong workforce, and improving healthcare relates to the applicants’ current assessment should substitute a market-based economy, or value by managing quality, cost and services. of existing trends and long-term population a perceived market-based economy, with one The document concludes with big vision health outcomes.” that is highly regulated.” statements and bold claims, including that The letter, signed by Allison Thigpen of It’s an argument Hazel’s Virginia counter- savings from reduced service duplication and the Division of Health Planning, acknowl- part Bodin will have a major hand in deciding. improved coordination will produce annual edges the systems may plan to address each “That’s the whole balancing act,” Bodin said. spending designed to improve public health observation in their final application, but “Do the benefits afforded to the citizens equivalent to the capability of a $750 million wanted to alert them, “in the event you had outweigh the disadvantages that the loss of foundation. New services and capabilities, not anticipated and addressed them in the competition presents? In a nutshell, that’s one improved choice and access, managed costs application.” of the biggest evaluation points.”

14 The Business Journal of Tri-Cities TN/VA | February 2016 Online at bjournal.com | FEATURES Holston Medical Group staying patient

By Scott Robertson

olston Medical Group will be im- by Alan Levine and Bart Hove, and trying Hpacted greatly by whatever decision to figure out how to do this,” Fowler said. the states of Virginia and Tennessee make “But they have their primary obligation regarding the Mountain States-Wellmont to keep those hospital systems strong and proposed merger. To date, however, HMG basically in control of the environment.” has not spoken with either state formally, And while HMG has no formal place choosing to wait and see what the hospital at the table, Fowler said, both systems have groups will say in their COPA requests. had C-level discussions with him. “We That fact doesn’t mean HMG is have been working back and forth. There unconcerned. “We have are two key compo- the same concerns I nents for us. One is the think everybody has,” absolute unrestricted, CEO Scott Fowler told unblocked access to how fit The Business Journal the data we need to in late January. “How take care of patients. do we protect this This business about incredible investment not sharing data with is your the community has doctors in order to made in its hospital somehow protect the systems? I think the patient – that doesn’t business? Wellmont Foundation fly. They have given is $400 million of reassurance we will community money. have access to that The hospitals are the data after the merger. let us help get place where health care “The second has been invested in thing is, as we move by the community. So from the model where you in shape. we want the hospitals the hospital is the inside our environment Dr. Scott Fowler Photo by Scott Robertson center of the universe to be strong and stable. to a more integrated “The hospitals have said, ‘We need to model of care, we have to have the ability merge because it’s our only real chance of to do outpatient things that we currently viability,’” Fowler continued. “We’re for can’t do under the Certificate of Need that if it can still be done while managing (CON) law. In our region, for instance, the change to value. We’re waiting to see there are virtually no outpatient surgery what that means in terms of what they’re centers that are not controlled by hospitals. willing to do.” We need control of outpatient services Fowler says part of the reason both in order to balance things. The hospitals systems spent in ways that made little are very aggressive if we try to get a CON. long-term sense in the past was the fact They say it’s not needed. Those are the two they had money to spend. A merged things we have stood on. company, he says, will have the ability “We want the ability to compete with to borrow even more. “We don’t want to them,” Fowler said, “especially in those 2681 Boones Creek Road see this become an extension of what we areas where their monopoly gives them (423) 915-2270 had, just getting access to more capital to a lot of power, but there’s not a reason to 300 Sunset Drive control markets. Hopefully the govern- have a monopoly, like outpatient services ment will manage that. or physician services. We’re not asking for (423) 915-2200 “We have a great amount of faith in a guaranteed advantage, but we should fcbresource.com both the willingness to do the right thing certainly be allowed to compete.” Member FDIC

Online at bjournal.com February 2016 | The Business Journal of Tri-Cities TN/VA 15 | FEATURES How NETWORKS networks It’s who they are and what they do

By Scott Robertson

(Editor’s note: When Clay Walker, CEO is certainly a nice feather in Walker’s cap, of NETWORKS Sullivan Partnership met the real value lies in what it can mean for with The Business Journal for this article Sullivan County. on Jan. 21, there was half a foot of snow on For instance, NETWORKS has gotten the ground outside the NETWORKS offices help from the TEP in its own efforts to and Walker was, in his own words, “eating showcase the county through its Bristol cough drops like candy.” Shortly thereafter, Motor Speedway Red Carpet Tours for site he entered the hospital, missing the Pure selectors. “You can do that on your own,” Foods grand opening he’d worked so hard Walker said, “but to get the strength of the to facilitate, Jan. 29. The Business Journal state behind you, you need to do it under thanks Walker for speaking with us when the TEP umbrella, and they also have some he was under the weather and we hope our cash grants for that. We have been awarded readers will join us in wishing him a full and $1,000 per consultant to help with expenses speedy recovery.) both times we have done that. But it’s not just the grant funds that The old adage, “it’s not what you know, come in handy. Properly leveraged, TEP but who you know” is true in most business, membership can boost an organization’s but to hear Clay Walker tell it, that truism is reputation immensely, Walker said. “I the golden rule of economic development. jumped at the chance to be chair-elect It’s appropriate then, that the economic because you want to show that your com- development organization Walker has run munity is a meaningful partner in economic for the last two years is called NETWORKS development in Tennessee, that you’re not Clay Walker (right) with Beth Rhinehart, Bristol Sullivan Partnership. Chamber of Commerce president at the Cham- just along for the ride.” In 2016, Walker plans on taking Sullivan ber’s annual awards luncheon Jan. 15. Playing a prominent role in the TEP County’s economic development efforts up a Photo by Scott Robertson also helps keep Sullivan County top-of-mind notch, by networking on a higher level than among decision makers in Nashville. Most has been done in some time. That effort will a great asset to me in so many ways since I major prospects come to communities be marked by two keystones. The first is came to Tennessee.” through the Department of Economic and Walker’s acceptance of the position of chair- It came as a shock to Walker when he Community Development. Sullivan County elect of the Tennessee Economic Partnership. arrived in Northeast Tennessee to find no is geographically about as far from Nashville The second is NETWORKS participation community economic development profes- as one can be in Tennessee. So having a in the Site Selectors Guild Conference this sionals in the state’s northeast corner were consistent professional presence in the state month in Nashville. members of the TEP. capital reinforces the idea that Sullivan “I said, ‘We have to join TEP,’ and we County deserves to be considered a real The TEP did,” Walker said. “There happened to be player when site selectors come calling. The Tennessee Economic Partnership an opening for Northeast Tennessee on “That’s where you’ve probably heard is dedicated to marketing Tennessee as a the board as well. They have X number of us talk about our recruit-the-recruiter prime location for business relocation and regional seats and then at large seats as well. strategy,” Walker said. “We have to be sure expansion. It is a public-private partner- They had an at large seat come open, so I we are constantly giving the folks in the ship of the state of Tennessee, the TVA was nominated and I took it. This past year Department of Economic and Community and Tennessee’s business and economic I got a call asking if I would consider being Development information about product development community. chair in two years, chair-elect and secretary- development, new buildings opening up, “I had been involved in the Tennessee treasurer this year. They do that typically, anything with economic development Economic Partnership when I worked letting you become secretary-treasurer newsworthiness that can help them sell so in middle Tennessee,” Walker told The while you’re chair-elect because it gives you they have a good understanding of what we Business Journal. “I was on the board of a lot of insight into the finances and helps are and what we offer. It has to be persistent directors at that time, and on the marketing prepare you better for your chairmanship.” and consistent so they understand what committee. It was very helpful and has been While holding the title of chair-elect our brand is and from where it grew. It’s

16 The Business Journal of Tri-Cities TN/VA | February 2016 Online at bjournal.com a constant process.” And that process, Walker state to commit.’ I jumped in. I believe we were said, is accomplished most easily from a seat on the first commitment she had. I said, ‘would the TEP Board. it be within our budget?’ She said, ‘I believe the top level you would be eligible for would The Guild be $10,000.’ I said, ‘We will do that. That’s a The second keystone to NETWORKS’ 2016 no-brainer.’” networking efforts is its leadership role in the “If you went to the conference as an attendee Site Selectors Guild Conference in Nashville. The you’d have to spend $4,000 to $5,000,” Walker Guild’s conference has gained importance in the explained. “So we spend $10,000 and we’re a last few years because site selectors have, in large sponsor. We get plugged in. And we make that part, stopped attending conferences hosted by statement to all the economic development third parties (many of which no longer exist as a organizations across the state and to the con- result). They now host their own event, and space sultants coming in that these are the economic is at a premium. development players. When your name is up Between 40 and 48 of the nation’s top there with Clarksville, Chattanooga and Knoxville, consultants are at the Site Selectors Guild’s they know you’re for real.” meeting each year, Walker said. “It’s hard to get into because they limit the seats so the commu- Results nities that do participate can have good face time The buzz about Sullivan County shows the with the consultants who handle the projects. So state now considers NETWORKS to be “for real,” it’s a great group to get in front of.” There’s even Walker said. “Before we get leads, we might hear a competitive bid process to host the conference, from the state saying, ‘You know, we can only with an attendant news conference reminiscent give this company our top four leads, but we of the announcements of World Cup or Olympic wanted to talk with you first to feel you out and host cities. see whether you’ll really be one of those four…’ Walker’s previous tenure in middle Tennes- The numbers for those calls are off the charts. see helped NETWORKS line up its sponsorship This stuff is working. of the conference. A former colleague let him “The more you work with the state, and the know Nashville would host the event before that more you show you will not embarrass them, but knowledge became public. instead you will make them proud of the job you “Courtney Ross, who is in charge of recruit- did, the more they will call you,” Walker said. ing for the Nashville Chamber said to me, ‘I’m “We’re excited right now because they’re calling trying to get key organizations from across the us all the time about projects.”

Mike Smith preaches teamwork to economic developers

ETSU alumnus and former Atlanta Falcons Head Coach Mike Smith gave a pep talk to the re- gion’s power distributors and economic development professionals at the Jan. 7 meeting of the Regional Industrial Development Association in Johnson City. Smith told the crowd the Tri-Cities economic devel- opment community is like a football team. “To coach an NFL team, you have 53 independent contractors,” Smith said. “They’re all working for their own brand, they all have their own way that they’re approaching things and as a coach, you’ve got to bring all 53 of those guys together with a common goal. Really, that’s what we have here with this organization. We have a common goal to make Northeast Tennessee a better place. When you collaborate, you agree as a group to do something together for a common goal. Really that’s what this group is all about. There’s a common goal to make Northeast Tennessee and Southwest Virginia a better place to live.” Mike Smith Photo by Jeff Keeling

Online at bjournal.com February 2016 | The Business Journal of Tri-Cities TN/VA 17 | FEATURES

ETSU’s Carl Torbush expresses gratitude to Bristol Motor Speedway General Manager Jerry Caldwell (left) for staging the Bucs Sept. 17 football game against Western Carolina. Photo by Scott Robertson Bucs will also battle at Bristol By Scott Robertson Built on hat do you call a 160,000-seat sta- the motto “Exceed expectations” will make tickets. An allotment of ETSU student tick- Wdium with 10,000 fans in the seats? A the investment to provide the extra touches ets will be available through the university at fantastic opportunity turned into a rousing that make it more than just a large venue, a later date. Other guests planning to attend hard work success, if it’s September 17, 2016. One said Jerry Caldwell, executive vice president may place a deposit through the BMS ticket hard work week after the sold-out Pilot Flying J Battle and general manager of BMS. office. at Bristol football match-up between the “It’s not easy – opening these doors,” Seating for the event will be con- just like your University of Tennessee and Virginia Tech, Caldwell said. “There are people that have centrated on the south side of the giant just like your the football field at Bristol Motor Speedway to take the tickets. There are people who facility, with the most expensive seats on will host its second game, as East Tennessee have to run the concession stands. There the track near the sidelines. Ticket prices small business. State University and Western Carolina are people who have to check for security will run from $15 for youth to $55 for small business. University square off. The Bucs-Catamounts purposes as you go around. We don’t just “Battlefield Level” seats. game was announced at a press conference open the gates and let an event happen. We Caldwell said hosting the game fits at the speedway Jan. 28. want an adequate number of people parking into the speedway’s community outreach Locally owned small businesses make our region great. The game will be ETSU’s first confer- cars and an adequate number of people just campaign called, “It’s MY Bristol, Baby!” ence contest as a newly reconstituted providing customer service – answering The campaign encourages local residents LocallyBank of owned Tennessee’s small experiencedbusinesses make staff our and region financial great. member of the Southern Conference, and questions. We also want to put on a show. and businesses to feel a sense of ownership Bankservices of Tennessee’scan help your experienced business achieve staff and greatness financial too. staging it at BMS brings an appropriate We want to add our bells and whistles. - a part of the family - of the speedway. servicesYou can trustcan help your your locally business owned achieve business greatness with a locally too. sense of occasion to the affair, said ETSU There has got to be some stuff going boom “It is an investment in the community. Youowned can bank trust as your your locally financial owned partner. business with a locally Head Football Coach Carl Torbush. “We and bang. So you’ll see some aspects of that. We are in partnership with ETSU when- are very appreciative of Jerry Caldwell and “This is obviously a different level than ever we’re selling tickets. We’ll both benefit owned bank as your financial partner. everyone at BMS in making this happen. some of the other events – a Battle at Bristol from that. But this really is viewed as more 866-378-9500 | BankofTennessee.com They are great supporters and friends of or the NASCAR Cup races, but we’re going of a ‘Let’s do something that’s good for our program. It has taken a lot of hard work to make sure that we treat this with the everybody around here and something 866-378-9500 | BankofTennessee.com from those at BMS, ETSU, Western Carolina nature that we always treat things,” Caldwell that’s good for ETSU’ kind of thing. The and the Southern Conference in putting said. “If you’re going to do it, do it well.” folks at ETSU are like family to us anyway. all this together and we are thrilled to be ETSU season ticket holders will receive As you look around and see what other making this announcement. This is a once a general admission ticket to the game things there are that we can do as we have in a lifetime opportunity for our players, at BMS with their season ticket package. this field set up, this was a natural. It will coaches, staff, university and fans.” Reserved seating upgrades and parking will be a lot of fun for a lot of people.” Carter County Bank is a Division of Bank of Tennessee | Member FDIC The speedway, which operates under be available when purchasing ETSU season Carter County Bank is a Division of Bank of Tennessee | Member FDIC

18 The Business Journal of Tri-Cities TN/VA | February 2016 Online at bjournal.com Built on hard work justhard like workyour just like your small business. small business.

Locally owned small businesses make our region great. LocallyBank of owned Tennessee’s small experiencedbusinesses make staff our and region financial great. Bankservices of Tennessee’scan help your experienced business achieve staff and greatness financial too. servicesYou can trustcan help your your locally business owned achieve business greatness with a locally too. Youowned can bank trust as your your locally financial owned partner. business with a locally owned bank as your financial partner. 866-378-9500 | BankofTennessee.com 866-378-9500 | BankofTennessee.com

Carter County Bank is a Division of Bank of Tennessee | Member FDIC

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Online at bjournal.com February 2016 | The Business Journal of Tri-Cities TN/VA 19 | FEATURES The octogenarian on the assembly line Charles Bowers is celebrating a quarter-century at BTL Industries at the age of 85

By Sarah Colson and Scott Robertson

harles Bowers rises at 3:58 every have afforded to buy much from Cmorning to make it to his manu- him. Maybe I bought a pair of facturing job by 5 a.m. He works four socks,” Bowers says. ten-hour shifts each week and loves his Leonard and Bowers became work. The same could be said of all his friends that day, so when Bowers co-workers. But the difference between began looking for his second Bowers and his colleagues is Charles career, he talked with Leonard. Bowers is 85 years old. Soon Bowers was working for BTL, Bowers could teach a master class now run by Leonard’s son, Watson in work ethic, if there were such a Leonard. thing, and Greeneville’s BTL Industries “We do a lot of work that has a is glad to have him, not only for his very short window from the order work, but because that work ethic to when it’s got to be out the door makes the entire company better. and they understand that and “We have to have a dependable embrace that opportunity and workforce and somebody that will be that challenge,” Leonard says. there every day,” General Manager “We don’t have a lot of young Matt Latts says. “We need employees people come in or new people who do their job as they’re supposed come in but when they do, they to and meet the quality standards that tend to be very successful and we’re required to meet. Charles really they tend to grow fast. I think is a model of that. He is extremely everybody else’s mentality rubs dependable and has been for a very off on them.” long time. He’s getting the job done On the farm, on the assembly like he’s supposed to but he also line, or in the classroom, Bowers provides some energy and life to the says the most important character- manufacturing staff.” istic of success is and always will be For the first few hours each day, Charles Bowers at his station on the assembly line at BTL good, old-fashioned hard work. Industries in Greeneville. Photo by Scott Robertson Bowers cuts copper pieces into specified “I went to an agricultural class lengths for the company’s main cus- after I got out of the service and I tomer, ERMCO. Then he works the last six better part of his first six decades on earth, learned a lot from them,” he said. “That hours of his shift on the assembly line. Bowers worked the land, along with his teacher said, ‘Men, don’t ever let your “Work, whether at BTL or on the wife Wanda, who is still the light of his life. work push you. Push your work.’ That was farm, is my best friend,” Bowers says. “I “Each day was a struggle from four in the one of the best statements I ever heard. love to work. Some of us are cut out to do morning to the dark of night,” Bowers says Stay ahead. That’s what it meant. I still these things and some of us are not. And of farming, “while being plagued with wor- try to do that. I’m cut out for it.” ries over drought, mastitis, crop failure, “It’s a joy to work with people you Latts said Bowers’ work ethic inspires and a multitude of other problems. But a can call ‘friend,’ who are hard-working, his other 75 full-time employees. good sale of the year’s tobacco crop, the responsible people. It gives you a good “First of all, our average worker is sight of a newborn calf, or the harvesting feeling to know that the transformer here for 16 years,” Latts said. “So we have of a crop of hay and getting it stored before parts you’ve been working on have ben- a group of employees who have been it rained made it all worthwhile.” efited people without electricity during together for so long, they’re just like part After years of hard farm work and tragic weather conditions. I’m thankful of the family. Charles is an inspiration declining cattle sales, Bowers started to my co-workers and management for not only from a work ethic standpoint but looking for a career that would still helping me feel needed and appreciated, also overall as a good person to all of our allow him to continue working his small and I want to express a special thanks to employees as they come on board.” farm. He remembered having met Terry the Leonard family for giving an old man That work ethic comes from a lifetime Leonard at Leonard’s men’s clothing store of 85 the opportunity to keep working on the farm. In fact, Bowers jokes that he back in the 1950s after Bowers returned these past 25 years, for I need to be busy works to support his farming habit. For the from his time in the service. “I couldn’t to be satisfied.”

20 The Business Journal of Tri-Cities TN/VA | February 2016 Online at bjournal.com | FEATURES Sweeping changes in broadcast industry reaching Tri-Cities By Scott Robertson

f you’re old enough to remember Archie and broadcasting business, but in a lot of ways it’s IEdith Bunker singing, “Those were the days,” smaller,” Cates says. “There are fewer com- then you may soon have a harder time recogniz- panies that are much bigger now.” He knows ing the television broadcasting landscape, both from whence he speaks. Cates has been in the locally and nationally. television business for 32 years. Consider: In the US alone, digital advertis- The current broadcasting era is a far cry ing reached $7.5 billion in 2015. Most of that from the old days when each small broadcaster came from what had been broadcast budgets. served one community (and had to demonstrate Direct-to-consumer channels that eschew to the FCC that it was operating in the public traditional networks and cable/satellite systems interest of that community in order to maintain are projected to reach its license to do so). 100 million US subscrib- In those days, the ers by 2018. Emmys are Tri-Cities had a simple increasingly domi- balance, as each city nated by offerings from had a station with its Netflix and Amazon. own network affiliation. Traditional television Bristol’s WCYB 5 had is having to change the NBC affiliation. its business model to Johnson City’s WJHL remain competitive. had the CBS affiliation. As with many indus- Dan Cates Ann Carter Kingsport’s WKPT was tries, consolidation is ABC’s affiliate. When the becoming the new normal. Late last month, for Fox network became a national player, WEMT instance, the pending sale of Media General opened its doors in Greeneville. Today Fox (which owns the CBS affiliate in the Tri-Cities) Tri-Cities is under the WCYB umbrella, just as to Nexstar Broadcasting Group for more than $2 ABC Tri-Cities is now under WJHL’s. billion was confirmed. One way local affiliates keepiewers v com- Those revolutionary changes in the industry fortable with these changes is to feature familiar are trickling down to the local market. Just days faces on the newly oriented stations. WCYB before the Media General/Nexstar deal was veteran anchor Paul Johnson, for instance, announced, the Tri-Cities’ ABC affiliation went teamed with Rebecca Pepin to form the news from Holston Valley Broadcasting’s WKPT-TV 19 anchor team for Fox Tri-Cities when it moved in Kingsport to the second digital signal offered under the WCYB umbrella. by Media General’s WJHL in Johnson City. When the ABC affiliation moved to WJHL’s “For us, it’s an affiliate agreement,” says 11.2 signal, the company named Ann Carter as Dan Cates, WJHL general manager. “We did not primary local news anchor. Carter, who was a buy another TV station that has a transmitter colleague of WJHL anchor Josh Smith several and a tower. We were approached because there years ago at WCYB, brings the new ABC Tri- was not a renewed or signed agreement with Cities a recognizable face and well-established ABC. So we have the affiliate agreement. We credibility in the market. Cates says the existing are building a new TV station, but it will work TV 11 news team will serve both the CBS and within our current operations. It will broadcast ABC viewers, with Carter anchoring separate on our secondary channel.” 6:30 and 7:30 newscasts on ABC Tri-Cities. Both The move from analog broadcast to digital stations will simulcast the morning and midday has made this possible, because each station can news shows that currently air on WJHL. have multiple digital signals. WJHL’s primary Carter, who has been away from the signal, which will continue to carry the CBS cameras for most of the last four years, says of affiliation will broadcast on 11.1. The channel entering the new broadcast environment, “It’s designation for ABC Tri-Cities will now be 11.2. like being in line for a roller coaster. It’s a little Both will be broadcast from the same transmitter. scary, but I’m also really interested in what’s “In a lot of ways, it’s a bigger world in the going to happen.”

Online at bjournal.com February 2016 | The Business Journal of Tri-Cities TN/VA 21 | MARKET FACTS

Cheap gas puts the lid on inflation Remarkably low energy prices are holding down inflation in the South. The Consumer Price Personalized Advice Index for All Urban Consumers (CPI-U) for the South decreased 0.4 percent in December, according to the U.S. Bureau of Labor Statistics. The energy index declined 2.7 percent over the month. The all-items-less-food-and-energy, and food indexes were little changed in December, down 0.1 and 0.3 percent, respectively. Over the last 12 months, the all-items CPI-U for Your Small Business. rose 0.5 percent. At the same time the all items less food and energy index advanced 2.0 percent over the year as several categories within this group recorded increases.

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Bristol Elizabethton Johnson City Kingsport Online at bjournal.com February 2016 | The Business Journal of Tri-Cities TN/VA 23 | DEPARTMENTS

ON THE MOVE “We are pleased to welcome Susan to part of several law firms. the Corporate Marketing team,” says Jon In addition to practicing law, Miller Brandy Lundberg, president and CEO of The Cor- was an adjunct professor teaching hospital Burnette has joined porate Image. “Her extensive and proven and health care law at Appalachian State the Tennessee office experience in project and relationship University. He also served as an assistant of Hancock, Daniel, management among a diverse customer professor at Francis Marion University in Johnson & Nagle, P.C. base will be a strong asset for our clients.” Florence, S.C., where he taught business Burnette is an associate Zeiler holds a master’s degree in law and the legal environment of business. in the Johnson City of- business administration from East Ten- A former president of the Alliance of fice where she defends nessee State University. She also received a Tennessee Hospital Attorneys, Miller was medical malpractice Brandy Burnette bachelor’s degree in business administra- chairman of the Tennessee Department of cases, and provides tion, with a concentration in marketing, Health legislative task force that drafted healthcare advice and representation in Ten- from ETSU. Zeiler has served on boards the legislation that became the Tennessee nessee and Southwest Virginia. She brings and committees for several area organiza- Health Care Decisions Act. He also served extensive civil litigation trial and appellate tions. on the Tennessee Hospital Association experience to HDJN. Zeiler resides in Bristol, Tennessee, task forces on HIPAA compliance and Burnette earned her undergraduate with her family. unusual events reporting. degree from Emory & Henry College and her Miller graduated from the University law degree from the Cumberland School of Gary Miller of Virginia School of Law. He also holds Law in 2001. She is licensed in Tennessee has been promoted a bachelor’s degree in English education and Alabama. In addition to having served as to executive vice from Radford College and a master’s Secretary/Treasurer for the Greene County president and general degree in English from the University of Bar Association, Brandy serves as president counsel of Wellmont Tennessee. of the GFWC of Tennessee Greeneville Health System. Woman’s Club. Miller has spent Daniel B. 14 years working with Snyder was ap- Susan Zeiler Wellmont’s senior Gary Miller pointed Acting has been named leadership team and Medical Center Direc- senior project man- the board of directors to ensure the health tor of the Mountain ager for Corporate system successfully navigates the chang- Home VA Healthcare Marketing, a division ing health care landscape and retains its System (MHVAHCS) of The Corporate leadership in the delivery of high-quality Jan. 3 following the Image, an integrated care. He is also playing an important role retirement of former Daniel Snyder communications firm in the proposed merger of Wellmont with director, Charlene headquartered in Susan Zeiler Mountain States Health Alliance. Ehret. Bristol, Tennessee. Miller most recently served Wellmont As Medical Center Director, Snyder Zeiler, who has more than a decade of as senior vice president for legal affairs has the overall responsibility for efficient marketing, sales and project management and general counsel. He previously served management and operation of the general experience, is responsible for assisting in the as associate general counsel for Mission medical and surgical hospital with 114 development and implementation of stra- Health System in Asheville, N.C. Earlier medical, surgical, and psychiatric beds, tegic marketing and advertising campaigns in his legal career, Miller practiced health a 120-bed community living center, a and projects for the company’s clients. care, commercial and employment law as 150-bed domiciliary, an outpatient clinic

24 The Business Journal of Tri-Cities TN/VA | February 2016 Online at bjournal.com in Knoxville, six community outpatient clinics will be responsible for and three rural outreach clinics. The James H. optimizing production and Quillen VA Medical Center at Mountain Home verifying product quality. is a tertiary care, teaching hospital that provides “Kyle comes to a full range of patient care services with state Mullican with a wealth of of the art technology as well as education and knowledge and extensive research. experience in the hardwood Snyder has a 34-year career with the Depart- flooring industry,” says Neil ment of Veterans Affairs, having served the last Poland, president of Mul- Kyle Evans three-and-a-half years as associate director at lican Flooring. “His strong the Mountain Home VA Medical Center. Prior to technical skills are matched by his enthusiasm that, he served in various management roles, in- for his work. We are pleased to have him serve cluding chief engineer; senior resident engineer; in a leadership capacity at Mullican.” chief, IRM and chief, facilities management at A Johnson City native, Evans holds a different government facilities. bachelor’s degree in wood products from North Snyder received a Bachelor of Science Carolina State University in Raleigh, N.C, and a degree in Civil Engineering from West Virginia master’s degree in business administration from University Institute of Technology and a Master East Tennessee State University. He has spent of Business Administration from Middle more than two decades working in the flooring Tennessee State University. Snyder is a member industry, with significant experience in the area of the VA’s Executive Career Field Development of research and development. Evans is also Six Class of 2010, American College of Healthcare Sigma Green Belt certified. Executives (ACHE) and is a VA certified mentor at the fellow level. Timothy K. Schools has joined High- lands Bankshares, Inc. and its wholly owned Our long-term Chris Lawyer has banking subsidiary, Highlands Union Bank relationship with been hired as communica- (HUB) as president and chief executive officer John and the Mitch tions manager for Bristol to their boards, subject to regulatory approval. Cox Realtor team Motor Speedway (BMS) Schools comes to the Abingdon-based bank and their reputation and Dragway. Lawyer has with more than 15 years of financial services worked with numerous experience, where he has been instrumental in in the community forms of sports including the profitability, growth and risk management made our decision motorsports, tennis and of several leading Southeastern banking institu- fairly simple. Their college athletics during his Chris Lawyer tions. He has held executive positions in the knowledge and rising career. guidance and administration of financial ser- expertise were very Lawyer will lead public relations efforts vices holding companies, including president, for Bristol Dragway and the Bristol Chapter chief financial officer, and chief risk officer. His instrumental in this of Speedway Children’s Charities. He also will background includes significant profit-and-loss process, which assist in integrated strategy, development and management, along with a broad array of audit, made it easy for us. execution for the Pilot Flying J Battle at Bristol board, regulatory and Wall Street experience. They did a great job. as well as all Speedway and ancillary events. “We are delighted to introduce Mr. Schools Lawyer comes to BMS following a two-year stint as president and CEO, and warmly welcome as media relations manager at the National Hot him to Highlands Union Bank,” says James D. Will Kelly, VP and Chief Administrative Rod Association. In addition, Lawyer has held Moore, Jr., M.D., chairman of HBI’s and HUB’s O cer at NN, Inc. positions with Michigan International Speed- boards of directors. “He brings to HUB a wealth way, the NASCAR Hall of Fame and Ole Miss of knowledge and extensive experience in the Athletics among others. financial services industry. We look forward to Lawyer is a graduate of the University of working with him to lead this institution into Mississippi. the future.” A native of Richmond, Va., Schools holds Since 1979, Mitch Cox Mullican Flooring has appointed Kyle a bachelor’s degree in business administration Realtor has provided Evans as plant manager for the company’s from James Madison University in Harrison- strategic and comprehensive Johnson City manufacturing facility. burg, Virginia, and a master’s degree in business commercial real estate Evans will manage and direct the plant administration from Emory University in brokerage services in operations of the 309,000-square-foot manu- Atlanta, Ga. Johnson City, Kingsport, and facturing facility, which includes production, Bristol. Contact us today. milling and finishing. In addition to ensuring the safety of nearly 300 employees, Evans SEE ON THE MOVE, 26 (423) 282-6582 • mitchcox.com

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ON THE MOVE, CONTINUED and perform the other responsibilities of said the women have this job,” said President Gene C. Couch, established themselves Schools succeeds longtime Highlands Union Jr. “I’m confident Dr. Gilbert is the perfect as successful leaders Bank president and CEO Samuel L. Neese, choice, and I look forward to welcoming him within the constantly who announced his retirement from the to campus.” evolving health care position last month. Gilbert will serve as executive director industry. of the VHCC Educational Foundation and “Alice is an Dr. Christopher J. “Joey” Gilbert a member of the president’s executive exceptional leader in has been named vice president of institu- leadership team. His duties will include the our health system who Alice Pope tional advancement at Virginia Highlands administration of fund development, grants, has ensured we retain Community College, where he began his community relations, alumni relations, our solid financial standing during extraor- duties Feb. 1. major gift campaigns and special events. dinarily challenging times in the health Gilbert most recently served as director of care industry,” said Bart Hove, Wellmont’s development for medical programs at Lincoln AWARDS & ACHIEVEMENTS president and CEO. “Through her efforts, Memorial University in Harrogate, Tenn. He Wellmont has been a model for the wise use holds a doctorate degree in educational leader- Wellmont Health Systems Executive of the financial resources to which we have ship from the University of the Cumberlands, Vice President and CFO Alice Pope has been entrusted.” a master’s degree in business administration been recognized by Becker’s Hospital Pope has about 20 years of experience from LMU, a bachelor’s degree in business Review as one of the 130 women hospital in healthcare finance and has worked for management from LMU, and an associate’s and health system leaders to know for 2015. Wellmont since 2000 in a number of roles degree from Southeast Kentucky Community It is the fourth consecutive year Becker’s has with increasing responsibility. She has and Technical College. selected Pope for this distinction. served as chief financial officer for more “We conducted a nationwide search for In naming the list, Becker’s said it than three years and oversees about $800 this important position to ensure we found a evaluated these executives for their manage- million in annual revenue. leader with the skills and experience needed ment and leadership skills, as well as their During her tenure as the organization’s to lead the VHCC Educational Foundation career accomplishments. The publication top financial leader, Pope has restructured

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26 The Business Journal of Tri-Cities TN/VA | February 2016 Online at bjournal.com Wellmont’s debt to lower the health system’s MED BRIEFS interest rate to about 3 percent, which has reduced the expense for borrowed funds by New faculty join ETSU Med School’s $2 million annually. With her assistance, Department of Biomedical Sciences Wellmont also revamped its revenue cycle Five new faculty members recently joined operation through the use of its new electronic the Department of Biomedical Sciences at health record. East Tennessee State University’s Quillen Another accomplishment was her leader- College of Medicine. ship in the most recently completed fiscal The hirings mark a concerted effort year’s results, which featured a 38 percent by leaders to expand research efforts and increase in operating income, 143 percent maintain a strong teaching focus, according to growth in net income and 6.4 percent increase Dr. Theo Hagg, chair of the department. “It is in net patient service revenue. part of a longer-term plan that is expected to “It is gratifying to receive this recognition greatly enhance and expand the department’s from such a respected third-party source, research efforts in the areas of neuroscience, as it reflects great work by so many profes- cardiovascular disease, inflammation, cancer sionals within Wellmont to be the low-cost, and genetics,” he said. “These new faculty will high-quality provider of choice in the region,” also contribute greatly to the department’s Pope said. “Everyone is focused on examin- teaching programs for medical, physical ing our revenues and expenses to ensure we therapy and graduate students and help to meet the needs of our patients efficiently and ensure the continuing excellent teaching at effectively. We have achieved extraordinary Quillen for decades to come.” outcomes and will look for additional ways to elevate the quality of our health system.” The five new faculty members are: Pope has a bachelor’s degree in commerce, • Dr. Patrick Bradshaw came to ETSU this with a concentration in accounting, from the fall from the University of South Florida University of Virginia and a master’s degree in where he served as an assistant professor business administration from East Tennessee in the Department of Cell Biology, Micro- State University. biology and Molecular Biology. Bradshaw, who grew up in Peoria, Ill., received his Dr. James Shine, a clinical associate bachelor of science in bioengineering from professor of family medicine at East Ten- the University of Illinois-Urbana and his nessee State University’s Quillen College of Ph.D. in biochemistry from Ohio State Medicine, recently received the Rural Health University. He completed a postdoctoral Practitioner of the Year award from the Rural fellowship from the University of Wiscon- Health Association of Tennessee (RHAT). sin-Madison. His current research focus Shine has been a family medicine physi- includes mechanisms of mitochondrial cian in Mountain City for 20 years and serves dysfunction in aging and neurodegenera- as the lead physician working with ETSU tive diseases. Rural Primary Care Track medical students at • Dr. Russell Brown is formerly a professor Quillen. The award recognizes Shine’s leader- in the Department of Psychology at ETSU. ship in bringing health services to citizens of Brown, originally from Weatherford, Okla., rural Tennessee. received his bachelor of science in psychol- In nominating Shine for the award, Dr. ogy and chemistry from the University of Joe Florence, professor and director of rural Oklahoma and his Ph.D. in experimental programs for Quillen’s Department of Family psychology from the University of Medicine, called Shine a leader in bringing Kentucky. He completed his postdoctoral health services to citizens of rural Tennessee. fellowship at the University of Lethbridge “Dr. Shine has an approach to health care in Canada. Brown’s research focus is on that responds not only to the needs of his in- substance abuse co-morbidity in behavioral dividual patients and their families, but to the disorders, sex differences in the response entire rural community,” Florence said. “He of psychostimulants and the consequences demonstrates an exceptional understanding of drug treatment on neural plasticity. of the big picture – that the rural community • Dr. Diego Javier Rodriguez-Gil comes is his patient and that improving the health to ETSU from Yale University School of of the rural community comes about through Medicine where he served as an associate improving the system of care.” SEE MED BRIEFS, 28

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MED BRIEFS, CONTINUED research scientist in the Department of Neurosurgery. He received his Ph.D. from the School of Exact and Natural Sciences, University of Buenos Aires, Argentina. His research efforts are focused on understanding how neurons find their correct targets in the brain. • Dr. Qian Xie came to ETSU from Grand Rapids, Mich., where she held positions as a research assistant professor and senior research scientist at Van Andel Research Institute. Xie received the equivalent of a medical degree from Shanghai Medical College of Fudan Dr. Patrick Bradshaw, Dr. Qian Xie, Dr. Diego Javier Rodriguez-Gil, Dr. Russell Brown, Dr. Valen- University in China. She completed her tin Yakubenko, with Dr. Theo Hagg, chair of the Department of Biomedical Sciences. Ph.D. in clinical medicine with a major in oncology at the same university. in the Lerner Research Institute at chronic inflammation during cardiovas- Her postdoctoral fellowship training the Cleveland Clinic. Originally from cular and metabolic diseases. was completed at Van Andel Institute Kiev, Ukraine, Yakubenko received his in the field of molecular oncology. master of science in biophysics from the The five new Quillen employees bring Xie’s research interests are in the field National Kiev University and a Ph.D. with them a combined $1.35 million in of molecular oncology and targeted in biochemistry from the National new grant funding for ETSU related to therapy. Academy of Sciences in Ukraine. He their ongoing research projects. • Dr. Valentin Yakubenko joined the has focused much of his career on faculty at ETSU after growing his career structure-function analyses related to

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Online at bjournal.com February 2016 | The Business Journal of Tri-Cities TN/VA 29 | THE LAST WORD Career Technical Education: Making a good thing better By Jeff Keeling

y the time some of his peers are receiv- programs only if Bing their bachelor’s degrees, Ethan they can figure out Lyle is likely to be earning a pay packet in a way to produce the mid-five figures – perhaps more if he’s the revenue to willing to travel. Many of those who took afford it. the four-year (or five, or six) route will be • The CTE programs starting to think about student loan debt and their existing coming due. Lyle may be starting to think leaders need help, about a starter home. but not necessarily I met Lyle late last month in an overhaul. The Science Hill High School’s career CTE directors from and technical education (CTE) area. around Northeast He was polite, well-spoken, and Tennessee already patient with me as he explained meet as members the basics of TIG (tungsten inert of the Northeast gas) welding. By all accounts Lyle, Tennessee Techni- The right team at the right time. who does well academically and plays varsity basketball for the cal Education Hilltoppers, would be perfectly capable of pursuing a bachelor’s Association, which himself. Instead, he’s in the category of student that a good many also includes of our political, academic and business leaders would love to see representatives Future taxpayer Ethan Lyle When it comes to your heart, quality matters. And at the Wellmontnt grow larger. from area commu- CVA Heart Institute, our physicians and staff , as well as emergencycy CTE is big these days. For the past several months, a task nity colleges, Tennessee colleges of applied technology and the medical services and highly trained caregivers, work together to force with representatives from the Johnson City and Washington state department of education. They share ideas about dual provide award-winning heart, stroke and vascular care. County, Tennessee schools, and the city and county elected bodies, credit opportunities, how they can collaborate, where they In fact, we’re ranked: has been discussing ways the school systems can best collaborate can share resources. As Decker put it, “we’re a team of leaders to benefit students from both systems. Those discussions have who have a similar mission for our schools.” Her teachers • No. 1 in the nation for medical excellence narrowed in, for the present, on CTE. In addition, the Washington also communicate with employers in the fields for which in interventional carotid care County Economic Development Council has tasked a working their students are preparing – sometimes, by the way, fields • Top 100 in the nation group with a three-pronged study that all spins back to producing they won’t enter until after a bachelor’s or beyond. So as the for medical excellence more career-ready young adults to bolster the region’s future well-meaning elected and volunteer leaders concerned about and patient safety in heart attack treatment economically. CTE is making its way into that discussion as well. workforce readiness focus in on CTE, I hope they approach • Top 10% in the nation It’s likely similar discussions are occurring around the their roles with open ears and minds, and strive to make a for medical excellenceexcellence Greater Tri-Cities, as in fact they are across the country. Different good thing better. in cardiac care and stroke care counties and cities have varying levels of school system collabora- • All parents need to be open to CTE possibly being the best fit • Top 10% in the nation tion. The degree to which employers, technical schools, commu- for their children. I fear too many parents of certain socio- for patienti nt safetysafety nity colleges and four-year schools interface with pre-college CTE economic backgrounds have a false notion that “vocational in vascular surgery programs is sure to vary as well. And without a doubt, everyone school” would be beneath their children, or be hard to explain World-class cardiovascular care is available closeose to home aatt wants to see all such programs improve and flourish. to other parents in their circles. First of all, there are some With that in mind, having listened to elected folk discuss honor student, post-graduate degree-bound kids in Science the Wellmont CVA Heart Institute. And youou can rest assured the topic at multiple meetings, I decided to check on the state of Hill’s CTE programs – health science and digital art and we’re dedicated to ensuring you receive an unparalleled experience – CTE for myself. A couple of visits to Science Hill have given me design come to mind – who probably are getting a leg up on one you can fi nd nowhere else. sufficient grounding for several observations. peers who aren’t getting that exposure in high school. Second, Your heart is in good hands at the Wellmont CVA Heart Institute.it te • If Johnson City’s program is any indication, and I have no some kids’ aptitudes and desires run toward CTE. Just Visit wellmont.org/myHeart to learn more. reason to suspect otherwise, the area’s CTE leaders deserve a because you and your spouse have master’s degrees and work medal already. Science Hill offers courses in 11 of Tennessee’s white collar jobs doesn’t mean your kid might not be happier 16 “Career Cluster Focus Areas.” They’re taught by people who as a mechanic. As Decker said, her hardest sell is when fresh- came to academics via the world of work, and who stay cur- men sign up for their high school academic track, because rent with changes in their fields, director Julie Decker told me. “everybody’s going to Duke and Harvard.” Students don’t just learn skills that will help them in work or It’s good area leaders are focused on CTE. I hope they realize college, they begin learning about real life – things like meet- they already have a lot of positives with which to work, and that ing budgets, and procuring equipment or material for their part of the task also involves changing parental perceptions. wellmont.org 2016 CareChex® 30 The Business Journal of Tri-Cities TN/VA | February 2016 Online at bjournal.com The right team at the right time.

When it comes to your heart, quality matters. And at the Wellmontnt CVA Heart Institute, our physicians and staff , as well as emergencycy medical services and highly trained caregivers, work together to provide award-winning heart, stroke and vascular care. In fact, we’re ranked: • No. 1 in the nation for medical excellence in interventional carotid care • Top 100 in the nation for medical excellence and patient safety in heart attack treatment % • Top 10 in the nation for medical excellenceexcellence in cardiac care and stroke care % • Top 10 in the nation for patienti nt safetysafety in vascular surgery World-class cardiovascular care is available closeose to home aatt the Wellmont CVA Heart Institute. And youou can rest assured we’re dedicated to ensuring you receive an unparalleled experience – one you can fi nd nowhere else. Your heart is in good hands at the Wellmont CVA Heart Institute.it te Visit wellmont.org/myHeart to learn more.

wellmont.org 2016 CareChex® Online at bjournal.com February 2016 | The Business Journal of Tri-Cities TN/VA 31 32 The Business Journal of Tri-Cities TN/VA | February 2016 Online at bjournal.com