20100412-NEWS--1-NAT-CCI-CL_-- 4/9/2010 3:10 PM Page 1 Vol. 31, No. 15 $1.50/APRIL 12 - 18, 2010 Health care STREET EATS providers plan New generation of food carts rolls into Cleveland as city clears path for mobile vendors to operate for transition By JAY MILLER Hospitals, other practices mull operational [email protected] changes as reform implications take hold ave you ever been walking By SHANNON MORTLAND standards. around at lunch time and had a [email protected] “Obviously this bill is going to hankering for Himalayan rice have a major impact on all facets of Although the crowds of newly the hospital,” said Heidi Gartland, and seared tuna? Or maybe insured patients aren’t coming the vice president for government Ha plate of dim sum? Or maybe a simple through the doors just yet, local relations at University Hospitals. vegetarian soup? health care providers are wondering “We’re definitely preparing our- how they will handle the onslaught selves to decipher which programs Well, you may be able to sample those of patients, as well as a multitude of we’re going to participate in.” varied cuisines and more beginning this other changes that are coming as a One of the biggest concerns for result of the health care reform bill. hospitals is the decrease in reim- summer on the streets of Cleveland. Among the issues providers are bursement from Medicare and Cleveland City Council passed legislation grappling with are how changes in Medicaid, said John Corlett, vice last month that clears the way for a new the Medicare and Medicaid payment president of government relations structures will affect them, how they and community affairs for the generation of curbside food vendors. In a will provide enough community MetroHealth System. See FOOD Page 13 benefit to maintain their tax-exempt Hospitals with a large proportion status and how they can reduce of uncompensated care now receive costs while preserving high quality See REFORM Page 21 Lenders more amenable to altering manufacturer loans Banks don’t want to be stuck with ‘illiquid’ assets By DAN SHINGLER faced with the prospect of either rene- [email protected] gotiating a loan or taking ownership of assets destined to be sold at a loss, There’s never a good time to many banks are more willing to work default on your bank loan, but for with borrowers than they might be in many manufacturers now might be a better economic times. better time than most when it comes “The logic is obvious … you’re to convincing a lender to renegotiate dealing with a bank that doesn’t terms on loans teetering on default. want to own the property,” said That’s because the assets a bank Jean Robertson, chair of the busi- would seize in a foreclosure — namely ness restructuring and bankruptcy a manufacturer’s plant and equip- practice at Cleveland’s Calfee ment — aren’t easily sold in today’s Halter & Griswold law firm. depressed market. So, experts say, See LOANS Page 9 INSIDE Watch for this new banking technology Some banks such as PNC, Key, Fifth Third and Huntington are using drive- through video screens to improve the customer service experience. The setups eliminate the need for a window at the teller lines and enable the banks to have more flexibility with interior design. Read Arielle Kass’ story on Page 5. SPECIAL SECTION 15 6 SMALL BUSINESS NEWSPAPER Community programs tout benefits of buying 71486 01032 from locally owned stores ■ Page 15 0 PLUS: HIRING ■ TAX TIPS ■ ADVISER ■ & MORE CrainsCleveland.com/30thanniversary 20100412-NEWS--2-NAT-CCI-CL_-- 4/9/2010 10:51 AM Page 1 2 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM APRIL 12-18, 2010 COMING NEXT WEEK IT ADDS UP Americans spent nearly $140 billion on out-of-pocket health care Young and just scraping by expenditures in 2008, according to data released in March by the U.S. Bureau of Labor Statistics. That’s a lot of money, especially Recent college graduates are being forced 700 W. St. Clair Ave., Suite 310, given that the total excludes health insurance premiums, nursing Cleveland, OH 44113-1230 to consider all avenues — including the home care and nonprescription drugs, among a few other smaller Phone: (216) 522-1383 dreaded living at home with mom and dad categories. Here’s how the out-of-pocket expenses broke down: Fax: (216) 694-4264 — to save money as they attempt to www.crainscleveland.com continue education or land better Category Expenditure Publisher/editorial director: Brian D. Tucker ([email protected]) employment. Prescription drugs $42.9 billion Editor: Mark Dodosh ([email protected]) Dental services $30.7 billion Managing editor: Scott Suttell ([email protected]) REGULAR FEATURES Physicians’ services $21.9 billion Sections editor: Amy Ann Stoessel ([email protected]) Hospital care $21.1 billion Assistant editors: 30 and Counting................10 List: Largest money Joel Hammond ([email protected]) Bright Spots ........................7 managers ................20-21 Other professional services $11.2 billion Sports Kathy Carr ([email protected]) Classified ..........................22 Reporters’ Notebook..........23 Medical suppliers $10.5 billion Marketing and food Senior reporter: Editorial ............................10 The Week ..........................23 Stan Bullard ([email protected]) Going Places .....................14 What’s New........................23 SOURCE: BUREAU OF LABOR STATISTICS; WWW.BLS.GOV Real estate and construction Reporters: Shannon Mortland ([email protected]) Health care and education Jay Miller ([email protected]) Government Chuck Soder ([email protected]) Technology Dan Shingler ([email protected]) Manufacturing Arielle Kass ([email protected]) Finance and legal Research editor: Deborah W. Hillyer ([email protected]) Cartoonist/illustrator: Rich Williams Marketing/Events manager: Christian Hendricks ([email protected]) Marketing coordinator: Laura Franks ([email protected]) Advertising sales director: Mike Malley ([email protected]) Account executives: Adam Mandell ([email protected]) Dirk Kruger ([email protected]) Nicole Mastrangelo ([email protected]) Dawn Donegan ([email protected]) Business development manager & classified advertising: Genny Donley ([email protected]) Office coordinator: Toni Coleman ([email protected]) Production manager: Craig L. Mackey ([email protected]) Production assistant/video editor: Steven Bennett ([email protected]) Graphic designer: Kristen Wilson ([email protected]) Billing: Susan Jaranowski, 313-446-6024 ([email protected]) Credit: Todd Masura, 313-446-6097 ([email protected]) Circulation manager: Erin Miller ([email protected]) Customer service manager: Brenda Johnson-Brantley (bjohnson-brantley@ crain.com) 1-888-909-9111 Crain Communications Inc. Keith E. Crain: Chairman Rance Crain: President Merrilee Crain: Secretary Mary Kay Crain: Treasurer William A. Morrow: Executive vice president/operations Brian D. Tucker: Vice president Robert C. Adams: Group vice president technology, circulation, manufacturing Paul Dalpiaz: Chief Information Officer Dave Kamis: Vice president/production & manufacturing Kathy Henry: Corporate circulation/audience development director G.D. Crain Jr. Founder (1885-1973) Mrs. G.D. Crain Jr. Chairman (1911-1996) Subscriptions: In Ohio: 1 year, $59; 2 years, $102. Outside of Ohio: 1 year, $102; 2 years, $180. Single copy, $1.50. Allow 4 weeks for change of address. Send all subscription correspondence to Circulation De- partment, Crain’s Cleveland Business, 1155 Gratiot Av- enue, Detroit, Michigan 48207-2912. 1-888-909-9111 or FAX (313) 446-6777. Reprints: Call 1-800-290-5460 Ext. 136 Audit Bureau of Circulation 20100412-NEWS--3-NAT-CCI-CL_-- 4/9/2010 11:43 AM Page 1 APRIL 12-18, 2010 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 3 Commercial loan delinquency issue lingers INSIDE: Delinquency data show politan statistical area stood 2009 figure was much worse Lenders write down more of portfolios, improvement in fourth quarter, but not at 5.7% of total commercial than the 2.6% delinquency year-over-year. Page 12 real estate loans outstanding. rate at the end of 2008. The file foreclosures to preserve asset values That number was down Akron MSA covers Summit from a 6.7% delinquency and Portage counties. By STAN BULLARD mine treasures from the sour loans Mr. Jablonski has yet to latch on to rate as of last Sept. 30, but On a nationwide basis, [email protected] and distressed properties banks are any deals, though recent figures was still well above the the commercial loan delin- unloading as they look to clean up indicate lenders still have plenty of 3.4% delinquency rate at quency rate had climbed to Mark Jablonski is prospecting for their balance sheets. bad debt and properties to ditch. year-end 2008. Jablonski 5.1% at the end of 2009 bargains. “If you were on the sidelines in According to the latest data from Likewise, in the Akron from 4.6% as of Sept. 30 A former commercial loan officer the boom or have access to capital, real estate consulting firm Foresight MSA, the delinquent rate on com- and 2.7% as of Dec. 31, 2008. at a bank and real estate analyst for you are in the driver’s seat,” said the Analytics, commercial real estate mercial mortgages had edged down The dips in delinquency rates in an accounting firm, Mr. Jablonski president of Centermark Develop- loan delinquencies as of Dec. 31 in to 4.5% by Dec. 31 from 5.3% as of the fourth quarter in the Cleveland now is a developer who hopes to ment LLC of Cleveland. the Cleveland-Elyria-Mentor metro- last Sept. 30. However, the year-end See DELINQUENCY Page 12 THE WEEK IN QUOTES INSIGHT “Obviously this bill is going to have a major impact on all facets of the hospital.We’re definitely preparing ourselves to decipher which programs we’re going to participate in.” — Heidi Gartland, vice president for government relations at University Hospitals. Page One “After talking with some bankers who are active in lending to AN EMPTY FEELING manufacturers, it does The Indians’ season-ticket sales have declined dramatically for 2010.