20090921-NEWS--0001-NAT-CCI-CD_-- 9/18/20096:51PMPage1 ©Entire contentscopyright2009byCrainCommunicationsInc.Allrightsreserved into aCulturalVillage. on Detroit’slowereastside opment ofitstwo-blockarea lion campaigntofunddevel- director toheadupa$5.5mil- hired itsfirstdevelopment education forthecommunity artists whowillprovidearts years todevelophousingfor million overthenextthree Project hopestoraise$5.5 stallations, theHeidelberg the tration andastaffwriterfor School ofBusinessAdminis- Wayne StatueUniversity was adevelopmentofficerat August. Foundation Family the $100,000, two-yeargrantfrom paid position—witha rector —itsthirdfull-time, Luckerman Page 26 over aerotropolis, Stormy weatherforecast in preparationforautoshow Repair workrevsupatCobo income can’t savetheday Blue Crossloss:Investment classroom, Page11. bring realworldto Adjunct professors for CulturalVillage Heidelberg hiresfundraiser Focus: BusinessEducation NEWSPAPER www.crainsdetroit.com Vol.25,No.37 This JustIn Inside Page 3 The nonprofithired The Known foritsfound-artin- Luckerman previously Detroit JewishNews rdA n abr .Erb BarbaraM. Fred A.and Heidelberg Project See ThisJustIn,Page2 as developmentdi- made in Sharon . has ’s Volkswagen toengineer,manu- ufacturer recentlywaspickedby ing equipmentdesignerandman- automaker. Inc. Township-based tanooga, Tenn. cle assemblyplantinChat- building itsnew$790millionvehi- Volkswagen AG year whenGermanautomaker dance. more than25countiesinatten- tives ofprivateindustryfrom ernment officialsandrepresenta- 1,200 scientists,researchers,gov- ber inDetroit,withmorethan Cell Summit Company’s globalreachhelpsitpindowndeals Prop. 2, TechTown labsamong selling points Stem cellsummitinDetroit? president; andMikeBeck,vicepresidentofglobaloperations;arepicturedinsidethecompany'sheadquarters. Fori AutomationInc.executives(fromleft)ReinRoth,CFO;PaulMeloche,vicepresidentofsales;BerndKoerner, The assembly,testingandweld- But thatdidn’tdeterShelby Michigan wasdealtablowlast It’s likelythe2010 This year’sthree-daysummit, story Fori’s story Fori’s from pursuingworkwiththe CRAIN’S DETROITBUSINESS CRAIN’S DETROITBUSINESS B Y B Y T OM R will beheldnextOcto- “ YAN that equipmentlanded here, theyhadsomebody H announced itwas (Volkswagen) ... really wanted toknowthatwhen ENDERSON Fori Automation B EENE World Stem that wasgoing it. tosupport Paul Meloche,Forivicepresidentofsales SEPTEMBER 21–27,2009 that supportonbothsidesof the us, quitehonestly,didn’thave of thecompaniescompeting with ments weregoingtobe.Andsome the NorthAmericanrequire- was goingtodirectthemonwhat to supportitandsomeonethat they hadsomebodythatwasgoing when thatequipmentlandedhere, they reallywantedtoknowthat many theycouldworkwith…but that theyhadacompanyinGer- price thejob. of thewayForicouldmanageand Dürr AG Corp. NorthAmerica tors — beat outitsmuchlargercompeti- dent ofsales,saidthecompany vehicles peryearstartingin2011. capable ofbuildingatleast150,000 assembly plantintheU.S.,willbe lines atVW’sTennesseeplant. facture andinstallfinal-assembly set forthefirstweekinOctober. mit. Theconferenceistentatively ganization thatputsonthesum- Institute ics Policy director oftheFlorida-based tion,” saidBernieSiegel,executive troit isstronglyunderconsidera- Johns HopkinsUniversity Baltimore, inconjunctionwith the fifthannual,beginstodayin Paul Meloche,Forivicepresi- The plant,Volkswagen’sfirst “(Volkswagen) wantedtoknow “There arealotofstrongrea- “It’s notsetinstone,yet,butDe- and otherfirms—because Comau S.p.A , thenonprofitor- , , Kuka Systems Siemens AG . Genet- , ” to fullytapitsexistingcredit line, jeopardy. Fori’s Volkswagencontractin 2009. lion inrevenueForiexpectsfor 20 percentofmorethan$90mil- installed inthebody. gine andsuspensionsystemsare sembly stagewhereavehicle’sen- chassis decking,isthevehicleas- Chassis marriage,alsoknownas of thecontract,Melochesaid. which representsabout75percent portion ofthefinalassemblyline, and buildthechassismarriage ties. project managementresponsibili- eration inMerzig,aresharing Township andFori’sGermanop- pond,” Melochesaid. vote oftheinstitute’sboard. ter thisweek’ssummit,followinga nouncement willbemadesoonaf- cell researchinMichigan. Proposal 2,whichallowedstem last year,”saidSiegel,referringto passage ofthestemcellproposal gan, nottheleastofwhichis sons tobringthesummitMichi- The companywouldhavehad But financingissuesalmostput The contractrepresentsabout Fori’s Michigansitewilldesign Fori AutomationinShelby Siegel saidtheofficialan- See Fori,Page35 See Summit,Page34 JOE WILSSENS Department ofTransportation agencies, onbehalfofthe which handlescontractsforstate the 2011, wereapprovedlastweekby River. public bridgespanningtheDetroit engineering workontheproposed week forpreliminarydesignand $8 millionwereapprovedlast roun, whosaysDRICisunfairgov- tion magnateManuel“Matty”Mo- Bridge, GrossePointetransporta- owner ofthenearbyAmbassador gal challengesfromtheprivate and ithasdrawncriticismle- Detroit RiverInternationalCrossing al authority. lished public-privatemultination- would berunbyato-be-estab- $3 billionspanby2013,which Transportation Canada Highway Administration stayed designfortheDRICbridge. An artist’srenderingshowsacable- highway funding MDOT90% from design work for DRIC OK’d $8M said tobeadrawforthe2010summit. stem cellcommercializationcenter— respectively, ofTechTown’sproposed are assistantdirectoranddirector, Danny Heumann(left)andJimEliason MDOT, alongwith The contracts,whichendin Six contractsworthmorethan The projectstudyiscalledthe DUSTIN WALSH/CRAIN’SDETROITBUSINESS State AdministrativeBoard CRAIN’S DETROITBUSINESS and Ontario’s B Y B , wantstobuilda ILL COURTESY OFURSCANADA $2 acopy;$59year See DRIC,Page36 S HEA U.S. Federal , Ministry of Transport Michigan . ® , , 20090921-NEWS--0002-NAT-CCI-CD_-- 9/18/2009 6:27 PM Page 1
Page 2 CRAIN’S DETROIT BUSINESS September 21, 2009
er for his last four years there. Mullen, DDA executive director. Sandvik to merge Valenite brand Committee passes wetlands bill THIS JUST IN — Sherri Begin Welch Among the companies showing are Anton Zorn & Sowerby Inc., Unity Madison Heights-based Valenite A bill that would retain state ■ From Page 1 Real Estate and Signature Associ- L.L.C. will lose its brand name and regulation of wetlands and tap al- Metro gets biometric ID system ates. Representatives of the Ma- merge with the U.S. headquarters ternate funding for the program of Walter Tools in Waukesha, Wis., is on the move, passing out of the in addition to practicing their U.S. Customs and Border Protec- comb County Small Business and shedding more than 100 local jobs Senate Natural Resources and art, said Executive Director Je- tion said Friday its pre-screened Technology Development Center by Jan. 1. Both are owned by Swe- Environmental Affairs Commit- nenne Whitfield. expedited passenger entry sys- will be on hand to give advice to den-based Sandvik AB. tee last week. The campaign will fund reno- tem is operational at Detroit Met- business owners. Customers should be unaffect- Senate Bill 785, sponsored by vation of existing homes, new ropolitan Airport. The self-guided tour starts at 61 ed, said Valenite marketing di- Patty Birkholz, R-Saugatuck Town- homes and greening of the area. Global Entry allows faster re- Macomb Place. For more infor- rector Tom Benjamin. ship, would avert Gov. Jennifer — Sherri Begin Welch entry into the country using bio- mation, visit www.downtown “We will try to preserve as Granholm’s call to return wetlands metric verification at automated mountclemens.com. many people as possible, either enforcement to the federal gov- kiosks at CBP inspection areas. — Gabe Nelson VNA replaces Holycross by offering employees a chance to ernment. The system, launched last year, follow their jobs to Wisconsin, or The bill would use environ- The Visiting Nurse Association of is being used at 20 U.S. airports. Patient-safety work wins award finding any positions that might mental bond money left in the Southeast Michigan board of direc- Participants must possess a be available in other areas of the state Clean Water Fund to par- tors Thursday terminated CEO machine-readable U.S. passport The Michigan Health and Hospital organization,” he said. tially replace general-fund sup- Kathleen Holycross and named or permanent resident card, pay Association’s Keystone Center for Valenite makes metal-cutting port for the wetlands program. COO and Senior Vice President a nonrefundable $100 application Patient Safety and Quality has won tools and has operations in Madi- The bill, which also makes nu- Jeffrey House to head the nonprofit fee, submit an online application the 2009 Eisenberg Innovation in Pa- son Heights, Windsor and Mexi- merous changes to the wetlands- on an interim basis. House joined and complete an interview at a tient Safety and Quality Award. co. Sandvik acquired it from permitting process, may be tak- VNA in November. CBP enrollment center, the Since 2003, Michigan’s 144 hos- Cincinnati-based Milacron Inc. for en up by the full Senate this “We’re confident in Jeffrey agency said in a statement. pitals have participated in several $175 million in 2002. week. House’s leadership and have no Details and the enrollment ap- patient safety and quality im- — Chad Halcom — Amy Lane plans in the immediate future for plication are at www.cbp.gov. provement projects in intensive a search,” said Sue Nine, chair- — Bill Shea care units, including a project tar- woman of the board. geted at reducing central line-asso- She declined to comment on ciated bloodstream infections in CORRECTIONS the circumstances surrounding Mt. Clemens tour showcases ICUs. Hundreds of lives and more Ⅲ A People item on Page 27 of the Sept. 7 edition should have said Kelly the termination. available business properties than $271 million have been saved. Henderson has joined QEK Global Solutions (U.S.) Inc., Bloomfield Hills, as Holycross had served as CEO The National Quality Forum and vice president of business development. An incorrect last name was of VNA, a home health care and The Mt. Clemens Downtown Devel- the Joint Commission sponsor the given. A corrected People entry is on Page 31 of this issue. hospice provider, for 16 years, opment Authority plans to hold a Eisenberg awards. MHA, led by Ⅲ A story on Page 4 of the Sept. 7 edition, “New rules could open door said Alexandra Hichel, senior com- property tour 3-7 p.m. on Thurs- President Spencer Johnson, will re- to more pancreas transplant sites in region,” should have said that in munications specialist. day for business owners interested ceive its award on Oct. 14. about 80 percent of all pancreas transplants, surgeons also conduct a Before joining VNA, House in moving to the city’s downtown. Keystone sponsors include Blue simultaneous kidney transplant. The story incorrectly said about 80 spent seven years at the Midwest Brokers will show more than 30 Cross Blue Shield of Michigan, percent of kidney transplants also include a pancreas transplant. division of Heartland Home Health move-in-ready properties, about 10 Michigan Department of Community Ⅲ Troy-based Entertainment Publications L.L.C. was misidentified as an Care and Hospice in Toledo, serv- of them for retail and restaurants. Health and U.S. Centers for Disease incorporated company in a story on Page 6 of the Sept. 14 edition. The ing first as regional director of The rest are offices ranging from Control and Prevention. story also erroneously identified the company’s parent, which is Indi- operations and as general manag- 250 to 10,000 square feet, said Arthur — Jay Greene anapolis-based MH Equity Investors.
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September 21, 2009 CRAIN’S DETROIT BUSINESS Page 3
Small Business Monthly Meet some entrepreneurial Blues lose $46.8M in 6 months moms, Page 19. riod in 2008, according to the Michi- es (for individual and Medigap) and restrict competing insurers Investment gan Office of Financial and Insurance and received some relief, but it is from sending unhealthy and costly Regulation. not helping (the bottom line),” applicants to Blue Cross. Contributing to the financial Bartlett said. Blue Cross contends that its fi- income a losses so far this year were a loss of “This (loss) is a result of poor nancial losses are partly due to 150,000 subscribers, to 4.55 million, regulation in Michigan on the in- competing health insurers that because of layoffs and companies dividual business. The for-profit “cherry-pick” profitable healthy bright spot dropping employee health cover- insurers continue to send the high- people. As the insurer of last re- BY JAY GREENE age, continued losses on individ- risk people to Blue Cross, and the sort, Blue Cross has a state man- CRAIN’S DETROIT BUSINESS ual Medicare supplemental poli- state has set a rate for Blue Cross date to accept everyone. cies known as Medigap, and that is well below costs,” Bartlett Sen. Tom George, R-Kalamazoo, Despite an increase in invest- one-time write-offs for severance said. chairman of the Senate health poli- ment income, Blue Cross Blue Shield packages from layoffs or resigna- Last year, Blue Cross led an un- cy committee, said he continues to of Michigan lost $46.8 million dur- tions of several hundred Blue successful effort to modify how in- meet with Rep. Marc Corriveau, D- ing the first six months of 2009, Cross employees earlier this year, dividual policyholders are in- Northville, chairman of the House compared with net income of said CFO Mark Bartlett. sured. Blue Cross wants to $117.3 million during the same pe- “We have asked for rate increas- streamline the rate-setting process See Blues, Page 36 Company index These organizations appear in this week’s Crain’s Detroit Business: Active Tools ...... 34 Admamede ...... 12 Advanced Manufacturing Group ...... 35 Alliance Mobile Health ...... 17 Critical Cobo repairs under way AMI Strategies ...... 21 Asterand ...... 36 Baker College ...... 17 $3M in fixes Blue Cross Blue Shield of Michigan ...... 3 Butzel Long ...... 29 CareTech Solutions ...... 4 planned for Central Michigan University ...... 12 Charter=County Executive ...... 25 Braden Lott Coastal Fabricating ...... 34 auto show Cobo Center ...... 3 CTS North America ...... 12 Defense Contract Coordination Center ...... 3 BY NANCY KAFFER Colonel’s 1st Detroit International Bridge ...... 36 CRAIN’S DETROIT BUSINESS Detroit Metro Convention & Visitors Bureau ...... 3 The clock is ticking. Dickinson Wright ...... 29 Engineering Society of Detroit ...... 4 With just four months to go be- Federal-Mogul ...... 6 fore the 2010 North American Inter- duty may be Foley & Lardner ...... 16 national Auto Show, work on criti- Fori Automation ...... 1 cal repairs has begun at Detroit’s Greenfield Collision ...... 22 Cobo Center — with lots of ground Henry Ford Hospital ...... 28 DUSTIN WALSH/CRAIN’S DETROIT BUSINESS to cover between now and the restaffing Honigman Miller ...... 29 LaBelle Electric Inc. updates electrical show’s Jan. 11 start date. service Friday in Cobo Center’s Macomb Ingenex Digital Marketing ...... 11 The months leading up to last Hall for European vendors coming to the LaVida Massage ...... 19 week’s transfer of Cobo to a re- North American International Auto Show Several follow Lott Lawrence Technological University ...... 15 gional authority were filled with in January. Much work needs to be done Macomb Community College ...... 14 political fireworks. in preparation for the annual show (left), from defense Macomb County Chamber ...... 25 State legislators passed two dif- Cobo’s signature event. Michigan State University ...... 11 COURTESY OF NAIAS Miller Canfield ...... 29 ferent deals to expand and reno- contract center Montgomery Consulting ...... 15 and leaders in Wayne, Oakland vate the aging center. The Detroit Contracts for that work were Multi-Bank Securities ...... 13 City Council shot down the first, and Macomb counties. approved last week at an authori- BY CHAD HALCOM Newmark Knight Frank ...... 17 leading to a court battle to deter- “We have some roof repairs, a ty meeting. CRAIN’S DETROIT BUSINESS Northwood University ...... 17 mine whether then-Mayor Ken lot of stuff that is “This will Oakwood Annapolis Hospital ...... 28 Cockrel Jr. had the ability to veto basic but neces- have an immedi- Former Director Bradley Plante & Moran ...... 15 the council’s decision. sary to provide a This will have an ate impact on the “Mark” Lott of the state Defense Pure Alternatives ...... 21 The second legislative package safe but sound “ exhibitors that Contract Coordination Center voiced Roush Enterprises ...... 14 contained many of the same working envi- immediate come in confidence last week in his re- Saga Communications ...... 12 terms — creation of a regional au- ronment and for the placement at the post, Col. James Saturn Electronics & Engineering ...... 34 thority to govern the center, ex- also safe and show,” Braden, as a St. John Hospital ...... 28 impact on the Tasha Foods ...... 19 tension of a regional hotel and sound environ- said Lar- good fit with PREDICTIONS TechTown ...... 34 ment for our cus- ry the local de- liquor tax to exhibitors True North Logistics ...... 37 Defense business: fund the $288 tomers.” Alexan- fense con- Twin Beginnings ...... 19 WHO’S THERE? million reno- The state has der, tracting More contracts, less that come in spending, Page 37 UM Stephen M. Ross School of Business ...... 17 Key players: See vation and ex- advanced the chairman community. University of Michigan-Dearborn ...... 12 who’s on regional pansion — but Cobo authority for the of the au- But University of Michigan Law School ...... 16 authority and had a few key about $9.4 mil- thority Braden’s first order of business U.S. Army Tacom ...... 3 transition team, changes, like lion, Watkins show. and pres- may be to replenish the staff at the Walsh College ...... 11 Page 37 a leaseback said, of which ” ident and CEO of center, an agency of the Michigan Watts Energy ...... 13 provision that about $3 million Larry Alexander, Detroit Metro the Detroit Metro Economic Development Corp., after Wayne State University ...... 12 allowed the city to retain owner- will be used for Convention and Visitors Bureau Convention and several of its employees left to ship of Cobo, and a clause allow- the repairs. That Visitors Bureau. work for Lott at his private con- ing Detroit Mayor Dave Bing to work will be complete before the “We want them to see this is a sulting company in St. Clair Coun- Department index veto a council rejection of the auto show. new direction we’re taking, that ty. BANKRUPTCIES ...... 6 deal. “We’ve got some electrical up- we’re responding to their needs.” Braden, a colonel in the U.S. Ma- BUSINESS DIARY ...... 32 grades, loading dock repairs — Other immediate priorities in- rine Corps and project manager of With the political wrangling CALENDAR ...... 32 over, the real work is beginning. which are very critical to this clude hiring staff to perform func- the Robotics Systems Joint Project “We have about five or six ar- type of operation — we’ve got tions once handled by the city. office at the U.S. Army Tacom Life Cy- CAPITOL BRIEFINGS...... 33 eas for immediate attention,” said some floor and landscape issues,” “We do have a lot on our plates. cle Management Command, will re- CAREERWORKS ...... 30 Walt Watkins, interim CEO for he said. “Those are the primary The way I refer to this deal is, sign his post in Warren effective CLASSIFIED ADS ...... 32 the regional authority, whose issues we are addressing now, take the Detroit River, carve out a Oct. 11 to take over Lott’s position KEITH CRAIN...... 8 members are appointed by the and that is what will consume the LETTERS...... 8 governor, the mayor of Detroit $3 million.” See Cobo, Page 37 See Lott, Page 37 MARY KRAMER ...... 9 OPINION ...... 8 Video profile Detroit Economic Club face-off PEOPLE ...... 31 THIS WEEK @ Would you move in with potential Mike Bishop and Andy Dillon will competitors? Some call it a brilliant idea. square off on the state budget RUMBLINGS ...... 38 WWW.CRAINSDETROIT.COM See www.crainsdetroit.com/smalltalk. Monday. Crain’s will have the story. SMALL BIZ SOLUTIONS...... 22 WEEK ON THE WEB ...... 38 Bishop Dillon 20090921-NEWS--0004-NAT-CCI-CD_-- 9/18/2009 5:12 PM Page 1
Page 4 CRAIN’S DETROIT BUSINESS September 21, 2009 CareTech reaches into higher-ed IT
BY GABE NELSON SPECIAL TO CRAIN’S DETROIT BUSINESS Despite growth, expansion off Troy-based information-technol- ogy company CareTech Solutions Though CareTech has grown have expanded CareTech’s total Inc. has started a higher education through the economic downturn, office space to 90,000 square feet, division, aiming to expand beyond the company had to scrap plans but as the price of commercial the health care niche the company for a $28 million real estate ex- real estate fell, CareTech execu- has filled since its formation in pansion backed by $7.8 million in tives decided leasing made more 1998. tax incentives from the Michigan sense than building, Giordano Jointly owned by Detroit-based Economic Development Corp. said. Compuware Corp., Detroit Medical CareTech currently occupies The company opened a 20,000- Center and Dearborn-based Oak- 65,000 square feet at its headquar- square-foot data center in August wood Healthcare, CareTech pro- ters near Big Beaver and Crooks at the Bank of America building vides IT services to 85 clients na- roads in Troy. on Big Beaver Road. tionwide. Most are hospitals and The planned project would — Gabe Nelson health systems, including the DMC, Oakwood and Rochester tems has remained flat, said Mike education institutions. Hills-based Crittenton Hospital Med- Smith, author of the Klas report. Hyland’s OnBase system is used ical Center. CareTech is one of the few compa- by 166 colleges and universities na- The company also has signed nies that has increased its client tionwide. Roughly 5 percent of the contracts with seven higher educa- base in recent years, he said. company’s $120 million in revenue tion institutions over the past two Though the stimulus funding — or about $6 million — came from years, starting with Troy-based might provide a mild boost, it’s a those institutions last year. Walsh College, said James Gior- good time for companies to exam- Though the iDoc software dano, CareTech president and ine other markets, said Smith, makes CareTech a competitor, the CEO, in an interview. who is general manager of finan- company is still a relatively un- With stringent privacy stan- cial services and research at Klas. known entity in higher education, dards and the need to coordinate “Some hospitals are going to said Ken Burns, industry commu- data among dozens of offices and look at themselves and say, ‘we nications manager for Hyland, in departments, hospitals and col- just don’t have the know-how to do an interview. leges have sur- this,’ but I don’t think you’re going “We haven’t come across them prisingly simi- to see an explosion (in outsourc- just yet,” he said. lar IT demands, ing) by any means,” he said. Walsh College uses both Datatel Giordano said. Giordano said CareTech was and CareTech software, but “We’ve been, largely drawn to the higher educa- CareTech provides all day-to-day coffee!! very quietly to tion sector by the ability to cater to support for the college’s comput- date, going after schools affiliated with client hospi- ers, Web site and networks, said opportunity!! that market,” he tals, which could differentiate the Helen Kieba-Tolksdorf, vice presi- said. company from larger higher edu- dent and CFO at Walsh. CareTech had cation competitors. In a study published this month insterested?? the nation’s CareTech’s most prominent by Educause, a Boulder, Colo.- Giordano sixth-largest higher education clients to date based nonprofit that follows IT in franchise?? share of the hospital IT outsourc- are Virginia Commonwealth Universi- higher education, 83.9 percent of ing market in 2008, according to a ty, the University of Arkansas and the institutions reported outsourcing report by Klas Enterprises, a health University of Nebraska, all of which some IT functions. About 5 percent Call Jobi Schaeffer care market research firm based followed affiliated hospitals to of respondents said their institu- in Orem, Utah. CareTech, Giordano said.The com- tions contract out more than 90 (517) 913-1987 or With a client roster that in- pany would not provide individual percent of services. cludes about 75 hospitals, up from revenue figures for the health care There’s increased interest in IT [email protected] 58 last year, CareTech’s revenue and higher education divisions, outsourcing among higher educa- grew from $135.2 million during but about 25 of CareTech’s 1,000 tion institutions, but it’s unclear the 2008 fiscal year to $153.3 mil- employees focus on the higher edu- whether colleges will follow www.biggby.com lion in the 2009 fiscal year that end- cation market, Giordano said.In through, said Jarret Cummings, ed March 31. addition to colleges affiliated with an Educause spokesman. Giordano said he expects hospital clients, CareTech also “The economic environment CareTech’s health care business to will pursue small and midsize that confronts colleges and univer- grow at an accelerated rate be- schools, which often lack the re- sities these days is challenging, so cause the government is making sources to produce proprietary institutions are looking for oppor- $19 billion in stimulus funding de- software, Giordano said. tunities to maximize the value of pendent on health care providers CareTech’s document manage- their resources,” Cummings said. meeting certain IT standards. ment system, called iDoc, allows One of CareTech’s newest When the first payout occurs in colleges to digitally manage clients is Marygrove College in De- 2011, providers must have an elec- data.That cuts overhead costs such troit, which recently signed a deal tronic medical records system in as file storage and staffing, said to have CareTech implement an place to receive the maximum pay- Leslie Mack, director of the iDoc electronic records system using ments of $64,000 for a physician and division. iDoc software. Financial aid data $11 million for a hospital. Providers The system supplements enter- will go digital next month, with ad- that don’t meet the standards could prise resource planning software missions data to follow later in the also lose some federal funding. from companies like Fairfax, Va.- fall, said William Johnson, vice But that potential growth raises based Datatel Inc., which primarily president for finance and adminis- a question for CareTech: why ven- serves colleges. tration at Marygrove. ture into higher education when CareTech’s main competitors “When we looked at the busi- Mount Clemens is open for your business! the company has long touted its fo- are Westlake, Ohio-based Hyland ness process for documents in cus on health care? Software Inc. and Shawnee, Kan.- health care and higher education, Come and see why Mount Clemens is a wonderful place to invest! Despite strong growth across the based Perceptive Software Inc., both we found very strong analogies health care industry, IT outsourc- of which offer document manage- that made us comfortable right Downtown Mount Clemens Open House and ing among hospitals and health sys- ment software tailored to higher from the get-go,” he said. Property Tour September 24th, 3:00 pm -7:00 pm Welcome and Orientation Center • 61 Macomb Place • Open House Showcasing Retail, Restaurant and Office Opportunities Engineering Society of Detroit membership increases 26 percent • A variety of professionals will be available to provide The Engineering Society of Detroit reported last week “We are committed to supporting our members and information and assistance in opening a business in that its membership has increased 26 percent since their quest for career growth and success,” she said. Macomb County’s Entertaining and Dining Capital June 2008, despite the economy. “We are also focused on nurturing our next genera- • Attendees are invited to be guests of the Downtown Over the past 15 months, the society has attracted tion so they can consider careers in science, math and business community at the 18th Annual ArtParty that 1,302 members, bringing its overall ranks to 6,264. engineering and stay right here in Michigan.” evening - one of the County’s premier fundraising events The increase in membership proves that ESD con- ESD said it has had success retaining members, in- tinues to be a vital resource for engineering profes- cluding 99 percent of its professional members and 86 For more information: www.downtownmountclemens.com • 586.469.4168 sionals in Michigan, said Darlene Trudell, ESD’s ex- percent of corporate members. ecutive vice president, in a release. — Sherri Begin Welch dbpagead.qxd 9/18/2009 1:04 PM Page 1
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Page 6 CRAIN’S DETROIT BUSINESS September 21, 2009 Planned cut to MEGA tax credits in 2010 draws concern
BY AMY LANE ing jobs. the 10 percent R&D spending re- CAPITOL CORRESPONDENT That’s on top of the 400-credit quirement. cap that the Michigan Economic De- I’m not sure why we want to be HB 4922 requires the state, in LANSING — State economic de- velopment Corp. has nearly reached. “ considering the length and velopment officials are moving Most of the 85 credits would reducing the ability of the state to attract amount of a credit, to look at the closer to securing additional Michi- need to come from those previous- project’s effects on other Michigan gan Economic Growth Authority tax ly approved by the board over the new business right now, rather than businesses in the same industry. credits that they can offer compa- course of the MEGA program but Another provision prohibits the nies this year. never utilized by companies. increase that ability. state from advocating one location A new version of a bill, adopted Sen. Nancy Cassis, R-Novi, ” in the state over another for politi- Thursday by the Senate Finance chairwoman of Richard Barr, Honigman Miller Schwartz and Cohn cal purposes. Committee, gives the state more the Senate Fi- Cassis and McBryde said they MEGA credits this year and lifts nance Commit- those, instead of just going for- Honigman Miller Schwartz and Cohn are working on a compromise on some problematic provisions that tee and sponsor ward with a new batch of 400 years L.L.P., said this year’s increase in that language. the state saw in a recently passed of the Senate- of credit each year.” credits is needed for the many pro- But one item that remains Senate bill. passed MEGA But in 2010 and beyond, the jects pending approval. thorny is a provision that the But not all the issues are ironed tax credit bill, MEGA program would have fewer But the proposed 2010 reduction MEDC and others said was insert- out. said the stipula- credits — a 300 yearly credit cap, in credits means that not only ed for 2004 MEGA recipient Feder- Like its counterpart passed by tion recognizes plus a possible 85 additional cred- would the MEDC approve fewer al-Mogul Corp., that would allow the Senate on Sept. 10, the newly “that not all of its. And that reduction draws projects, but it may be more selec- jobs performed for 30 hours or adopted version of House Bill 4922 the credits that some concern. tive, particularly with projects more each week to count as full- provides an additional 85 yearly Cassis are initially Richard Barr, partner in the en- seeking approval in the early part time jobs for the purposes of credits in 2009 that the MEGA awarded ever come to fruition. vironmental law department and of the year, he said. MEGA compliance. board can award to general busi- And it holds the MEDC account- co-chairman of the investment in- “I’m not sure why we want to be The MEGA law currently de- nesses and to those solely retain- able for going back and utilizing centives and tax savings group at reducing the ability of the state to fines full-time as a minimum 35 attract new businesses right now, hours each week, and the state has rather than increase that ability,” always required that qualifying Barr said. jobs under the MEGA program be Jim McBryde, vice president of full-time jobs. governmental affairs at the MEDC, “We think it’s an important prin- said the 2010 reduction is a con- ciple, that we’re not going to start cern because the MEDC may not amending the act to reduce the have enough tax credits next year hours, even in situations where Dr. Mary Beth Bolton “and we’ll be right back in the companies have gone through same situation we are today” — de- bankruptcy,” McBryde said. a crain’s 2009 woman to watch pleting its annual allotment with Cassis said the matter is “still an months remaining in the year. open discussion. My understand- However, McBryde said the issue ing is that the MEDC has consider- remains under discussion and he is able concerns, and I think we’ll hopeful a resolution can be reached leave it there.” that “does not cause us to have less Attorney Barr said it is “impor- credits than we currently have.” tant that the Legislature facilitate The yearly credits refer to the flexibility in its incentive pro- total number of years for which grams to recognize the challenges MEGA credits are granted. For ex- in the current economy, and this is ample, a tax credit awarded over a good example of modifying a pro- 20 years would classify as one gram to help support businesses award of 20 yearly credits. that are using their best efforts to HB 4922, sponsored by Rep. Ed stay in Michigan.” Clemente, D-Lin- Federal-Mogul, in a statement, coln Park, also said it “is making every effort to increases from improve the competitiveness of 50 to 75 the annu- our operations in order to improve al number of our business. We appreciate any new agreements support that may be offered in or- Mary Beth Bolton, M.D. that can be made der to support our efforts to main- HAP Senior Vice President for high-technol- tain Federal Mogul’s viability.” and Chief Health Officer ogy or rural HB 4922 is tied to bills making Henry Ford Medical Group Physician businesses. other changes Cassis has sought in Clemente However, at the MEGA program. least 10 percent They include requiring annual of total operating expenses for a reports to include the jobs created high-tech business would need to or retained in any year that a cred- have gone to research and develop- it is applied, the total value of tax ment in the preceding two years. credits a company receives for that That provision is under discus- year and all previous years, and The talents of connecting health care with our business and physicians sion. A compromise may be that a the company’s actual investment. portion of the additional agree- Amy Lane: (517) 371-5355, to impact improved health care outcomes for our community are ments allowed would be subject to [email protected] accomplishments worth celebrating.
HAP and Henry Ford Health System salute Dr. Mary Beth Bolton as a Crain’s 2009 Woman to Watch. Her commitment to public health, ANKRUPTCIES wellness and disease prevention make her stand out – not only in the B The following businesses filed for Chapter 11. Assets and liabilities not health care industry, but in the communities we serve. Chapter 7 or 11 protection in U.S. available. Bankruptcy Court in Detroit Sept. 11- Goertz + Schiele Corp., 1750 Summit 18. Under Chapter 11, a company files Drive, Auburn Hills, voluntary Chap- We applaud Dr. Bolton’s significant, consistent contributions to HAP for reorganization. Chapter 7 involves ter 11. Assets and liabilities not avail- total liquidation. and Henry Ford Health System. able. Air Source One Inc., 26417 Northline Lonero Engineering Co. Inc., 2050 Road, Taylor, voluntary Chapter 7. As- Stevenson Highway, Troy, voluntary sets and liabilities not available. Chapter 11. Assets: $4,270,149; liabili- Body Physics L.L.C., 11390 Silver Lake ties: $3,061,797. Court, Utica, voluntary Chapter 7. As- Mechelle’s Pizza L.L.C., 48 Tennyson sets: $10,000; liabilities: $9,924. St., Highland Park, voluntary Chapter Creative Impressions Inc., 1339 Milver- 7. Assets: $210; liabilities: $21,687. ton Drive, Troy, voluntary Chapter 7. Temporary Sanitation Inc., aka Porta Assets: $18,953; liabilities: $1,118,063. John of America Inc., 50633 Ryan Road, Detroit Breakfast House & Grill, Sel- Utica, voluntary Chapter 7. Assets: $0; dom Blues L.L.C., 400 Renaissance liabilities: $824,015. Center, Suite 1, Detroit, voluntary — Gabe Nelson DBpageAD.qxd 9/16/2009 3:23 PM Page 1 20090921-NEWS--0008-NAT-CCI-CD_-- 9/18/2009 6:07 PM Page 1
Page 8 CRAIN’S DETROIT BUSINESS September 21, 2009 OPINION Defense corridor is an overlooked asset outheast Michigan’s road to economic recovery needs to build on its strengths. S And one of the most overlooked is its “defense cor- ridor” – a cluster of defense-related companies, some with legacies dating to our “Arsenal of Democracy” heritage of World War II. In the Macomb County strip from Warren to Shelby Town- ship, defense-related jobs jumped from 7,100 in 2003 to 10,500 in January. Total defense contracting in Macomb County was $3.69 billion in 2007. And with prime contractors like BAE Systems expanding, the jobs will continue to grow. This sector should be nurtured because it has some of the best opportunities for auto suppliers to diversify. Two years ago, the Michigan Economic Development Corp. hired a retired Marine Corps general to help companies get into the supply chain. Bradley “Mark” Lott and his network of Procurement Technical Assistance Centers have been ex- tremely successful, increasing contracts of counseled compa- nies from $315 million in 2007 to $760 million in 2008. LETTERS As Chad Halcom reports on Page 3, Lott is gone, in part be- cause of a technicality. And he took much of his staff with him. It’s imperative that his successor be given the resources to rebuild — and quickly. Just whom does UI tax repay? At the third annual fall conference of the National Defense Editor: and fills with rot. The immune sys- Industrial Association last week in Troy, speakers from big Crain’s Detroit Business This is in reference to your Sept. tem shuts down. No more protein prime contractors were clear: They wanted engineering talent, welcomes letters to the editor. 14 story, “New UI taxes: $63 mil- building blocks and energy get to All letters will be considered for they wanted small suppliers who could help them make vehi- lion in 2010.” Unemployment tax the body. cles and defense systems that were lighter, more durable and publication, provided they are repayment equals double taxation. signed and do not defame The medical team gave Harwell with innovative technology. Employers fund the federal un- individuals or organizations. two options: The “defense corridor” can benefit the entire region. Econom- employment program through Letters may be edited for length Ⅲ Bile duct cancer is inopera- ic developers need to huddle to quantify what’s here now and contributions that are used to and clarity. ble, do no surgery. buffer balance sheets in states or Ⅲ Do nothing else. help smaller companies move into the defense procurement Write: Editor, Crain’s Detroit areas experiencing high unem- But there is another option: Try chain while also marketing the region as a place of opportunity. Business, 1155 Gratiot Ave., ployment. So Michigan has to bor- Detroit, MI 48207-2997. to use natural healing. Add a well- row from the federal government ness doctor to the medical team. E-mail: [email protected] to help pay a large unemployment Natural healing is generally not Let voters pick council by district benefit liability. Now, employers in the Medicare list of remedies to have to pay the feds back for the (Opinion: “Harwell teaches an be paid for. The immune system Only in Detroit would a judge ignore the entreaties of state loan of their own money. Looks end-of-life lesson,” Sept. 7) fights and kills specks of cancerous Attorney General Mike Cox and Gov. Granholm’s legal counsel. like unemployment taxes are just His medical team determined stuff even before we are born. We But that’s what Wayne County Circuit Judge Virgil Smith another “business tax” that pro- that bile duct cancer was inopera- can get cancer when the immune vides nothing in return. did last Friday, and his decision must be quickly appealed. ble. That is, drugs, chemotherapy, system becomes overwhelmed. William Demray irradiation, and/or surgery were There are possible cancer cures by Smith rejected an attempt to put to voters in November a Northville not solutions, maybe because of natural healing. Search the Inter- ballot proposal amending the city charter to elect seven of nine his age. net for more details. City Council members by district rather than at-large. Harwell case calls The bile duct is a necessary ves- In any case, to fight cancer one Petition language technicalities had ensnared the issue for for natural healing sel from the liver to the junction of must change to a healthier lifestyle. weeks, leading to Smith’s courtroom. the exit of the stomach and the You must give up the diet that you Editor: Cox and Granholm – who rarely see eye to eye – agreed the small intestine. If the bile duct gets were accustomed to all your life and Should Ernie Harwell treat his blocked, the small intestine stops enjoyed very much, but that may proposal should make the November ballot. Smith disagreed. condition as the beginning of the functioning and is essentially have contributed to the cancer. Detroit needs “council by district.” This deserves an expe- end or the end of the beginning? It blocked, backing up into the stom- Neil Karl dited appeal. depends upon your perspective. ach. The stomach stops working Livonia KEITH CRAIN: Our president is wasting his charm On Sunday, the president of the strongly that they like Add the Medicare its, enact a huge gasoline tax as a unions would endorse a single- United States was on every talk the country’s health cuts that would pay for way to promote fuel conservation payer plan for the nation, they show, save one, that was available. care system and they these initiatives, and for consumers. That would guar- don’t want a single health care in- He’s still pitching his health don’t want the govern- you can write off many antee they wouldn’t be re-elected. surance plan for themselves. I’m care reform to a nation that does- ment getting involved senior citizens. They It seems even more ironic that obviously missing something n’t want it. He seems intent on ig- with their health care. are a large voting bloc, the same people who favor a sin- here. noring the wishes of a majority of I don’t care who you too. gle-payer plan at the federal level I’m not sure it really matters the electorate. are, if you are one who I just marvel at the aren’t happy about Michigan what your opinions are anymore. Sure, there are a lot of people plans to ignore the voice audacity of Washing- House Speaker Andy Dillon’s plan It would seem that the U.S. Con- who think that this nation should of a vast majority of vot- ton. They seem quite to put all state employees under have some sort of health care re- ers, I’d be willing to bet content to keep plowing one health plan. gress is more than happy to ignore form. Some think we should have you’ll lose your next ahead with little regard Dillon and his supporters be- any dissenting opinions and sim- socialized medicine, otherwise re- election. That would in- as to the opinions of a lieve the idea could save as much ply go ahead and pass legislation ferred to as a single-payer system. clude Michigan’s sena- majority of the voters. as $900 million. The idea seems to that suits them. But most every poll shows the tors and members of the House of And if health care weren’t enough, have a lot of merit, but even But voters have a long memory. majority of U.S. citizens feel Representatives. they could, regardless of its mer- though leaders of public employee Watch for that at the next election. 20090921-NEWS--0009-NAT-CCI-CD_-- 9/18/2009 11:55 AM Page 1
September 21, 2009 CRAIN’S DETROIT BUSINESS Page 9 MARY KRAMER: Health summit to probe care costs, more
After salaries, most companies Paul Keckley, who Tickets for the day- anonymous Crime Stoppers tips ers: Matt Cullen, president and spend more on health care than on leads the Deloitte Cen- long event are $99 until resulted in 751 arrests and payouts COO of Rock Enterprises; and An- anything else in their “people” ter for Health Solu- Oct. 1. of more than $75,000 in rewards drew Arena, special agent in budgets. tions, will moderate a For more informa- tied to solving crimes in Southeast charge of the FBI’s Detroit divi- But how many CEOs and small- conversation of leaders tion, see www.crain Michigan. sion since 2007. business owners who pay to insure of all stripes — a hospi- detroit.com/section/ Earlier this month, the Detroit For tickets and sponsor opportu- their employees understand the tal CEO, longtime crainsevents. Public Schools’ Robert Bobb set up nities, check out the Web site, costs? trustee, employer, pri- a $200,000 fund for Crime Stoppers www.1800speakup.org, or call For those who have tried to un- vate-practice physician to pay rewards for tips on school Athena DeWulf at (313) 922-5000, derstand them, it’s hard to figure and others. A tip to help theft. extension 12. them out. All attendees will sit Bobb told Channel 4: “There are “In the auto business, we know at tables in similar rep- Crime Stoppers individuals who are using our Mary Kramer is publisher of our material costs, labor costs, resentative groupings. After surviving a schools as if they’re at a shopping Crain's Detroit Business. Catch her overhead,” says Michael Egren, The idea is to hear carjacking on my way mall.” take on business news at 6:10 a.m. who spent many years running Foa- different perspectives and maybe to work nearly a year ago, I accept- Bobb will be honored Oct. 13 at Mondays on the Paul W. Smith show made Industries in Auburn Hills, a come up with ideas to improve ed an invitation to join the board Crime Stoppers’ annual dinner — on WJR AM 760 and in her blog at 350-employee auto supplier. care and delivery while reducing of Crime Stoppers of Michigan. its only major fundraiser of the www.crainsdetroit.com/kramer. Egren, who has a degree in costs in Southeast Michigan. Last year, more than 3,200 year. The dinner honors two oth- E-mail her at [email protected]. mathematics from the University of Michigan, says employers are much less successful figuring those costs out, in part because pricing is negotiated by health plans. Medicare pays one price, employers pay another and indi- viduals pay yet another. “Wouldn’t it save a lot of time and prevent all the games if providers had to publish their prices and charge everyone the same thing?” he asks. In all of the uproar over national health care reform, we don’t hear so much about the concerns of Egren and other employers. So we invited Egren to be part of the Crain’s Health Care Leader- ship Summit on Oct. 15 at Rock Fi- nancial Showplace in Novi.
Wayne State’s Detroit Orientation Institute scheduled for October
Wayne State University has sched- uled its annual Detroit Orientation Institute program for October, of- fering newcomers to the area the chance to learn about Detroit’s cul- ture and history. ANYWHERE EVERYWHERE The three-day program, now in ANYWHERE EVERYWHERE its 18th year, includes sessions on A degree accessible from in the world... prepares you to go you want to go. Oct. 15, 22 and 29. Scheduled events include a talk on diversity and de- mographics moderated by Detroit Free Press columnist Rochelle Ri- Graduate Degrees Offered You shouldn’t have to choose between convenience ley, a backstage tour of the Detroit and prestige… Opera House, a walking tour of M.B.A. – EVENING AND ONLINE downtown Detroit, lunch at Hart- s %ARN A POWERFUL DEGREE THAT IS RESPECTED WORLDWIDE AS YOU ENROLL SPECIALIZED MASTERS PROGRAMS ford Memorial Baptist Church and a IN ONLINE CLASSES EVENING CLASSES OR A COMBINATION OF BOTH panel with auto industry leaders s -3 IN &INANCE