Visionary Or Bettor?

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Visionary Or Bettor? 20110103-NEWS--0001-NAT-CCI-CD_-- 12/30/2010 3:35 PM Page 1 ® www.crainsdetroit.com Vol. 27, No. 1 JANUARY 3 – 9, 2011 $2 a copy; $59 a year ©Entire contents copyright 2011 by Crain Communications Inc. All rights reserved Page 3 As orders roll in, suppliers roll out welcome mat Auto show hitches a ride to new hires Drug firms Industry 2011 NORTH AMERICAN show INTERNATIONAL AUTO SHOW interest in rebound gives Press Preview: Jan. 10-11 supplement Industry Preview: Jan 12-13 numbers a lift Charity Preview: Jan. 14 to fight Public Show: Jan. 15-23 Web site: www.naias.com Alzheimer’s BY DUSTIN WALSH CRAIN’S DETROIT BUSINESS Nineteen new sponsors have The glitz of the North American signed on for the 2011 show, and 23 Inside International Auto Show is return- are returning from last year’s ing in 2011, but show, according to its organizers. INSIDE the theme is Many of the new sponsors come Snyder adds to team, gets still on effi- from this year’s new Michigan Eco- ready to tackle challenges, Events: Some ciency. nomic Development Corp. Town planners see The Detroit Square and DTE Smarter Living ex- signs of revival, auto show NATHAN SKID/CRAIN’S DETROIT BUSINESS hibits. Page 4 Page 17 struggled over Porsche is returning to the North American International Auto Show after a The exhibits expand the show’s Sponsors: See three-year absence. previous EcoXperience exhibit by who’s new to the the past two MEDC choice marks a first show, Page 17 years with a 2009 and 2010 shows due to the eco- fic and sponsorship during the bringing in advanced technologies decline in at- nomic collapse in 2008 that crip- 2010 show are expected to continue in electric vehicle charging sta- for foundations, Page 11 tendance from 2008 and automak- pled the industry. this year as the industry rides the ers and suppliers pulling out of the But marginal increases in traf- wave back to prosperity. See Auto show, Page 17 This Just In Rockbridge to buy maker of medical-alert devices 2010NEWS Livonia-based Rockbridge Visionary or bettor? Growth Equity LLC, one of the portfolio companies of Quick- MAKERSOF en Loans founder Dan Gilbert, is expected to announce this Time will help form picture of Granholm’s legacy weekthe acquisition of struggled throughout her eight- Philadelphia-based Connect BY AMY LANE CAPITOL CORRESPONDENT year tenure — a backdrop that America LLC — one of the old- THEYEAR shaped her battles, strategy and est and largest companies in Did I expect that LANSING — When she took of- accomplishments as governor. the U.S. selling medical-alert “ fice, the economic landscape “Did I expect that this whole this whole term devices for seniors. looked promising, with the state term would be a process of down- Terms will not be an- projected to turn the corner soon sizing and restructuring? No, I would be a process nounced. The company em- and add jobs. did not. But nor did anyone else,” ploys about 80 and has rev- But it didn’t happen. Granholm said. of downsizing and enue of more than $25 Amid auto industry restructur- Some say Granholm did the best million. Rockbridge and a ing and a national recession, Gov. with the hand she was dealt; others restructuring? No, I partner in the deal, Falcon In- Jennifer Granholm faced years of say she could have done much vestments LLC of New York, job losses and an economy that more. And history has yet to write did not. will acquire an 81 percent in- whether her unflagging ef- ” terest in the company, which forts to diversify the Former Gov. Jennifer Granholm will retain current manage- economy in areas ment. like advanced man- Ann Arbor. “Five, 10 years from The purchase dovetails ufacturing, tech- now … we will be able to see with two previous acquisi- nology and alter- whether that economic develop- tions by Rockbridge, in Pro- native energy pay ment was sustainable or not. tect America Inc., a home secu- long-term divi- “If some of the things that she rity and monitoring dends to the state. started really take off in Michi- company based in Big Rock, “Time will tell gan, she could look like a vision- Texas, and in One Reverse whether some of ary. Right now, it looks like a se- Mortgage of San Diego, Calif. the globetrotting ries of bets.” Connect America will be able PROFILES COMING UP she did, some of the Diversification was a hallmark to cross-sell through those Big names: No. 1: Crain’s many incentives she of Granholm’s response to the companies as part of its What they announces handed out, work or state’s economic crisis. growth strategy. did to make top not,” said John Bebow, Initiatives championed and — Tom Henderson news, newsmaker Pages 6-7 on Jan. 17 executive director of the created in tandem with the Legis- Center for Michigan in lature, like the 21st Century Jobs Fund to invest in emerging sectors and business growth and nation- leading tax credits for targeted in- dustries, draw both praise and criticism. JEFF JOHNSTON/CDB Sarah Hubbard, principal at Acuitas LLC, a Lansing-based lob- bying firm, and former senior NEWSPAPER See Granholm, Page 18 20110103-NEWS--0002-NAT-CCI-CD_-- 12/30/2010 3:38 PM Page 1 Page 2 CRAIN’S DETROIT BUSINESS January 3, 2011 Bob Allen rejoins Crain’s as senior editor Bob Allen has rejoined Crain’s Detroit Business as se- Vanguard to ramp up DMC construction nior editor. Allen, 51, had been a copy editor with Crain’s sister BY CHAD HALCOM Center tower adjacent to DMC’s building. The cash component of the purchase publication Automotive News since CRAIN’S DETROIT BUSINESS The DMC and Vanguard originally is down from the earlier $391 million es- 2006. Before that he spent more than a formed a joint venture to share equally timate in part because the hospital has decade at Crain’s in assignments in- The Detroit Medical Center should be- the $1 million cost of site preparation made payments on its own bond obliga- cluding deputy managing editor and come a larger, newer, and profit-making and other early construction costs now tions since September, when the deal general manager of the publication’s network of hospitals with possible under way. Southfield-based Barton-Mal- had been expected to close, Duggan said. website. growth through referrals in Nashville- ow Co. has been handling that prelimi- “Since September there was less Allen’s new duties include oversee- based Vanguard Health Systems Inc.’s net- nary development work for the hospital. transactional debt (assumed by Van- ing Crain’s daily e-newsletter and its work, following its acquisition that be- Duggan said Vanguard also has agreed guard), but also a reduction in total un- Crain’s Michigan Business e-newslet- came effective Saturday. to put up half the costs of the entire restricted assets,” Pitts said of the lat- ter and associated monthly print sec- President-CEO Mike Duggan of the 105,550-square-foot tower. Pitts said he est changes to the deal. “Really, the tion to be launched in February. DMC and Vanguard Vice Chairman expects the next phase of construction to value of the deal doesn’t go down — ef- Allen Other appointments: Keith Pitts signed final documents begin no later than the spring thaw. fectively it has gone up.” Assistant Managing Editor Jennette Smith, 36, has Thursday in a transaction valued at Pitts also said another future possibil- But Vanguard also rolls into the ac- been promoted to deputy managing editor as a reflection nearly $1.5 billion, including $365 mil- ity is turning DMC assets like Children’s quisition the $30 million fine under a set- of her expanded role in newsroom supervision. She will lion in cash. Hospital into regional attractions or cen- tlement finalized this week among DMC, continue to oversee many of Crain’s Focus sections. The deal also includes an agreement ters of referral care. Vanguard has 18 Vanguard and the Department of Justice Reporter Bill Shea, 36, becomes enterprise editor, re- for Vanguard to pay a $30 million set- hospitals in four urban markets — over alleged violations of the federal sponsible for helping to deepen Crain’s coverage of pub- tlement between DMC and the U.S. De- Chicago, Phoenix, San Antonio and cen- False Claims Act, the Anti-Kickback lic policy and metro Detroit business stories. He will partment of Justice over allegations of tral Massachusetts — and adds metro Statute and Stark law by improper rela- continue to report on transportation and the business of improper relationships with its refer- Detroit with the acquisition. tionships with referring physicians. sports as well as continue his two blogs, “For Immediate ring physicians. The settlement was “This will become the first freestand- Duggan said the improper relation- Release” and “Shea’s Stadium.” also signed by Vanguard. ing children’s care center within our ships DMC uncovered were somewhat Jay Greene, 55, has been promoted to senior reporter Duggan, Pitts and U.S. Attorney Bar- (inventory),” he said. “There are possi- technical violations, and the hospital in recognition of his extensive experience in covering bara McQuade in Detroit all said bilities of building destination care admits no wrongdoing. health care. Greene also oversees Crain’s Health Care Thursday the DMC had itself disclosed centers with some of its assets, and if Some examples, Duggan said, includ- Extra e-newsletter and monthly print section. the improper relationships. Federal we can help in their growth by adding ed sending referring physicians to a law restricts the financial relation- referral care to them, we’ll do that.” lecture series for continuing education ships that hospitals may have with doc- Duggan said Vanguard has no imme- tuition free — which could be consid- tors who refer patients to them.
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