2014-07 Faulkner County Business Journal

Page 1

JULY 2014

Arkansas Urology

is bringing the next evolution in men’s health to Conway ... And it’s

Epoch!

Mike Whitfield, Epoch Founder and Director of Business Development Tim Langford, M.D.


2D — Sunday, July 20, 2014

Faulkner County Business Journal

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Baptist Health breaks ground for new hospital ‘Baptist Health’s vision is to improve the health of Arkansans by changing the way healthcare is delivered.’ — Baptist Health

president and CEO Troy Wells ity. Not only will this new hospital serve this community’s health needs, but it will also contribute to an increase in local employment and it will

help to attract new businesses.” The 216,000-squarefoot Baptist Health Medical Center-Conway is projected to open in the first quarter of 2016 with 96 beds, eight operating rooms and a Level III trauma-center emergency room. “This new, three-story medical center will address the healthcare needs of Faulkner County and surrounding areas, which have experienced unprecedented population growth over the past 10 years,” added Wells. Baptist Health collaborated on this project with more than 30 Conway-based physicians to develop the new medical center. It will be operated as a not-for-profit, faithbased community hospital offering comprehen-

sive clinical services. “Today’s ground-breaking is the culmination of years of hard work and perseverance by a dedicated group of physicians and steering committee who have worked closely with Baptist Health Administration on the development of this project,” said Dr. Ben Dodge, Orthopedic Surgeon and Chairman of the Physician Steering Committee. “We are impressed with

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Arkansas Gov. Mike Beebe was on hand for the ground-breaking ceremony of the new Baptist Health-Conway hospital, which is slated to open in 2016 in Conway.

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Baptist Health’s professionalism, integrity and insight into the healthcare needs of Arkansans. We now look forward to construction and subsequent opening of Baptist Health-Conway in early 2016.” Design photos for the new Baptist Health Medical Center-Conway were unveiled to those in attendance at the groundbreaking. Several dignitaries, including Gov.

Beebe and community leaders, helped Baptist Health officials with the shovels to mark the beginning of construction. The construction project is expected to generate approximately 250 jobs. At the time of completion, Baptist Health Medical Center-Conway will employ around 425 healthcare professionals and staff committed to improving the health of the community. The estimated cost of the entire project is $130 million. GSR Andrade is providing architectural design services, and CDI is serving as the General Contractor. “Baptist Health’s vision is to improve the health of Arkansans by changing the way healthcare is delivered,” said Wells. “We believe this new medical center will greatly benefit the residents of this area by ensuring a strong and sustainable future for healthcare.”

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Baptist Health held a ground-breaking ceremony recently on a 37-acre site in Conway to mark the start of construction on the new Baptist Health Medical CenterConway. Baptist Health president and CEO Troy Wells, Gov. Mike Beebe, civic leaders, community members, local physicians and Baptist Health employees celebrated the official start of construction for the 96-bed hospital that will be located on the west side of Interstate 40 in Conway. “This is a tremendous opportunity for Baptist Health to expand services to the residents of the Conway area,” said Wells. “Conway and the surrounding areas deserve the best in healthcare services, and we can’t wait to meet their needs in a state-of-the-art facil-

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Sunday, July 20, 2014 — 3D

Faulkner County Business Journal

Conway company helps health care providers with business performance Conway-based RockPond Solutions has experienced exponential growth in personnel, customers and real estate since its founding in 2000. The business-intelligence software company has grown from three to 15 employees in the past three years, experienced a 300 percent increase in revenue, services providers in all 50 states and Puerto Rico and has expanded its offices at 1002 Front St., to occupy the entire top floor. Rock-Pond Solutions works with home-infusion and specialty pharmacies to translate loads of data into the information and ultimately intelligence health care providers need to survive and succeed in today’s changing healthcare landscape. A former IT specialist for a hospital, founder and president Pete Tanguay experienced firsthand the growing importance of technology in the health care field. He entered

the home-infusion industry in 1987 and found an untapped niche market. “Our customers are home-infusion and specialty pharmacies that provide pharmacy services in the home,” Tanguay said. “When most people think of pharmacies, they think of a retail pharmacy. Home Infusion therapy is the administration of medication in the home, intravenously through a needle or catheter that is used when oral medications are not sufficient.” Specialty pharmacy is one of the fastest growing areas of the pharmacy industry. It focuses on providing high cost drugs to treat complex conditions. Advances in medicine are providing new drugs to treat and cure conditions such as cancer, hepatitis C, multiple sclerosis and HIV are being distributed through specialty pharmacies. Tanguay said RockPond Solutions is the leading business-intelligence company for the

home infusion and specialty pharmacy industries. “Rock-Pond Solutions began as a consulting company to help providers solve technology and business problems they faced. Our customers didn’t have the information they needed to make decisions. Solving this problem one customer at a time using a consulting model gave us the experience and tools needed to transition to a software company, helping customers on a much broader scale.” Rock-Pond is also very involved in the Conway community as a member of the Conway Downtown Partnership and Chamber of Commerce. “We’re very excited to be located in Conway and enjoy hosting customers and business partners in our unique downtown location. Honestly, with our broad customer base we could relocate anywhere in the U.S., but have no plans to leave any time soon.

Conway is affordable, attractive and convenient — there are several places to have lunch within walking distance. Being downtown has been good for us: it’s good for me personally, it’s good for our employees and it’s good for our customers who visit.” As tenants relocated from the building on Front Street, Rock-Pond Solutions occupied more space until their offices eventually took over the entire top floor. RockPond Solutions eventually purchased the building and leases out the bottom floor, except for an area that was transformed into a fitness center for employees to have a place to shower if they choose to ride their bike to work or want to work out at lunch. In addition to the Conway location, the company has a development office and data center in Scottsdale, Ariz. To learn more about Rock-Pond Solutions, visit rock-pond.com.

Rock-Pond’s revenue has grown by 300% over the last three years. The company has also added 12 employees to their downtown location.

Barefoot Campus Outfitter will host the Chamber’s quarterly Business After Hours on Aug. 21. The apparel store held its grand opening in March 2014.

Barefoot Conway to host Business After Hours Apparel company Barefoot Campus Outfitter will host the Conway Area Chamber of Commerce’s quarterly Business After Hours at its store on 2235 Dave Ward Drive. The networking event will take place Thursday, Aug. 21, from 5-6:30 p.m. The Texas-based company sells “Southern hip” boutique wear and college-approved apparel in college towns across the South. The University of Central Arkansas licensed its official logo to Barefoot Conway, which

opened in early 2014. Attendees are encouraged to bring business cards, as Business After Hours allows members to network, strengthen professional relationships and develop new opportunities to work with fellow Chamber members. The event is free to Chamber members and their employees. Complimentary hors d’oeuvres will be provided. For more information about Business After Hours, call the Chamber at 501-327-7788.


4D — Sunday, July 20, 2014

Faulkner County Business Journal

To subscribe call (501) 329-2927 • Log Cabin Democrat

COVER STORY

The next evolution in men’s health EPOCH’S FOCUS ON COMPLETE CARE EXPANDS TO CONWAY

Perhaps no industry has changed more over the last decade than healthcare. Innovations in pharmaceuticals, surgery and even business models have changed the way all of us receive health care. One thing that hasn’t changed is men’s historical reluctance to see a doctor, especially for preventative care. Mike Whitfield thinks he can change that. Whitfield, a Conway resident, is the founder and business director of Epoch Health (pronounced epic). Epoch Health is the first and only men’s health care chain in the country that focuses on complete health care for men. The first Epoch Health opened in Little Rock in 2012. In 2013, Epoch Health was acquired by Arkansas Urology, Arkansas’ largest urology practice. Today, there are open locations in North Little Rock; Springfield, Mo.; and a new temporary clinic in Conway. Epoch is currently building a new flagship clinic in Little Rock and renovating a permanent space in Conway. Nationally, Epoch is developing new Locations in Columbia and St. Louis, Mo.; Chicago, Ill.; and Anchorage, Ak., with many more on the horizon. Scott Davis, CEO of Arkansas Urology explained the strategy that

drove the 2013 acquisition. “There has been a proliferation of testosterone clinics in this country. The reality is patients were leaving traditional urology clinics or their primary care physician to go into these retail type clinics,” said Davis. “The unfortunate tradeoff was that they were frequently leaving behind the physicians who were best prepared to assess their total health.” Davis said that Arkansas Urology was in the process of developing its own clinic or business to compete with that trend. “Fortunately, we were able to acquire the Epoch brand. This differentiates our model of care from every other “Low T” (low testosterone) focused clinic in the state. In a marketplace filled with trendy and sometimes nonmedical solutions Epoch Health provides an environment where men can feel confident in the safety of their treatment through legitimate medical practices.” Dr. Tim Langford, president of Arkansas Urology echoes the strength of the model. “The services offered by Arkansas Urology complement Epoch Health’s brand. We’re merging decades of men’s health experience into one organization. It’s a combination of Arkansas Urology’s physician expertise and Epoch Health’s ability to

Epoch Health is currently seeing patients in a temporary Conway location on Monday’s from 8 a.m. to 6 p.m. Their new location at the corner of Exchange Avenue and Dave Ward Drive will open this fall.

reach and screen large numbers of patients.” Those screenings may be the single biggest distinguishing factor of the Epoch Health experience. “Our model isn’t designed around getting guys on testosterone. It’s designed around preventative care and identifying the causes of the symptoms men are feeling to place them on the proper treatment to live healthier and feel better,” said Whitfield. “It’s about true men’s health and improving quality of life, not just testosterone therapy.” Whitfield said that the screenings are comprehensive and test signs of colon, bladder and prostate cancer. They also

seek to diagnose malnourishment and nutritional deficiencies, sleep disorders, heart health and much more. “Epoch is comprehensive men’s health care. Though many men we see are candidates for testosterone therapy, we look at everything we can. Our approach is about a lot more than hormonal issues. We don’t consider it safe to jump into treatment without doing a full and proper screening. The best part is, we are affiliated with a nonprofit that allows for our initial screening to be completely free to any man who walks in the door. ” On June 16, Epoch Health opened a tem-

porary Conway location to serve area patients. The temporary office is currently open on Mondays only from 8 a.m. to 6 p.m. It is next door to their permanent location at 800 Exchange Ave. (the corner of Exchange Avenue and Dave Ward Drive, across from Acxiom). Renovations to their permanent location should be complete early this fall. Even though Epoch has only been open a month and only sees patients one day a week, Whitfield says the response has been exciting. “The volume of patients is increasing every week. We’ve not ‘officially’ opened our location or marketed in this area and already dozens

of men are coming in. We anticipate seeing between 500 and 600 guys per week when we’re fully operational.” The Conway clinic will be overseen by Dr. Richard D’anna of Arkansas Urology and staffed by Dr. Thom DeGraff. Dr. Degraff is a men’s health specialist, a preventative health care expert and a United States Air Force flight surgeon. Once in their permanent location, the clinic will see patients Monday-Friday from 8 a.m. to 6 p.m. Whitfield says that Epoch Health can offer speed and convenience without sacrificing quality of care. “We’ve created a hybrid clinical model. People associate specialists and specialized care with long waits. With a combined visit and wait time of only about 20 minuets, we are going to be a convenient health care provider that men want to come see. There is no such thing as a ‘man doctor.’ There aren’t physicians designed for specifically for them. That’s the niche we want to fill — to become the men’s health specialists. With the free screening service we provide to the community, there is no excuse for any man to skip coming in to get checked out, it could just save his life” For more information about Epoch Health visit EpochMensHealth.com.



6D — Sunday, July 20, 2014

Faulkner County Business Journal

To subscribe call (501) 329-2927 • Log Cabin Democrat

Chamber now accepting noms for MED awards

Top five residential sales, June 7 Beaverfork Place Be

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The Conway Area Chamber of Commerce is accepting nominations for the 2014 Minority Enterprise Development awards. These awards Gentry Lake Robins Lake celebrate the achieveDays Lake ments of minority entrer D e ylin Sk preneurs as well as the individuals and organizations committed to advancing minority-owned Mountain View Park businesses. The Chamber of Commerce established the MED committee to foster growth and sustainabilOak St E Oak St ity of minority businesses and as a way to recogFifth Avenue Park nize minority businesses and their supporters. The Airport Park awards will be presented at the MED awards gala, which will take place ak Grove e eter Thursday, Sept. 18, at 6:30 p.m. in UCA’s McCastlain Hall. The five categories of MED awards are as follows:

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1920 Cox Cove

Price $525,000 $475,000 $450,000 $312,500 $289,900

Address 5235 Bay Town 7 Beaverfork Place 8 Eagle Shore Drive 1920 Cox Cove 4330 Gazebo Drive

Bed/Bath 3/3.5 4/3.5 4/3 4/2 4/3

Subdivision The Fairways Beaverfork Place Eagle Shore n/a Sunderlin Park

Sq.Ft. 3,700 3,651 2,970 2,878 2,823

$/Sq.Ft. $143.22 $142.41 $164.65 $108.58 $102.69

Built 2010 1999 2007 1999 2002

cating and advocating for minority business enterprises.

Lifetime Achievement

Recognizes an individual who has played an integral role in the creative, technical or professional progress of minority business development over the course of his or her life. It celebrates high standards of excellence, dedication and accomplishment over a sustained period.

Outstanding Minority Business of the Year

Recognizes a business that has had a significant impact on the community.

Outstanding Young Minority Professional

Recognizes an individual between the ages of 21-39 who has committed himself or herself to busiAccess to Capital ness and community serRecognizes an indi- vice. vidual, organization or business that has demThe Chamber is aconstrated outstanding cepting nominations for leadership in the finan- the awards now through cial community by pro- Monday, July 28. To subviding working or invest- mit nominations, visment capital to minority it ConwayChamber.org businesses. and click on the MED icon at the top of the Advocate page. For questions about for Opportunity the awards or the call Recognizes an indi- for nominations, contact vidual, organization or Whitney Cummings, dibusiness that has dem- rector of events, at 501onstrated significant ac- 932-5411 or at Whitney@ complishments in edu- ConwayArkansas.org. 65

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EconomicGlance

Unemployment Rate*

November US................................................ 7.0% Arkansas................................... 7.5% Faulkner County .................. 6.8% Conway..................................... 6.9% *Faulkner County & Conway not Seasonally Adjusted

Sales Tax Collections

Conway* October 2013................................ $1,938,156 2012................................ $1,849,793 Percent Change 4.8% Year to date (October) 2013..............................$19,072,232 2012..............................$18,926,125 Percent Change 0.8% Annual 2012..............................$22,944,163 2011..............................$22,366,464 Percent Change 2.6% *Tax Rate 1.75% Faulkner County* October 2013....................................$711,487 2012....................................$681,433 Percent Change 4.4% Year to Date (October) 2013................................ $7,082,557 2012................................ $7,039,323 Percent Change 0.6% Annual* 2012................................ $8,465,686 2011................................ $8,279,301 Percent Change 2.3% *Tax Rate 0.5%

Restaurant Sales*

November 2013..............................$13,422,740 2012..............................$12,724,484 Percent Change 5.5% Year to Date (November) 2013........................... $137,612,171 2012........................... $135,096,301 Percent Change 1.9% Annual Sales 2012........................... $151,611,408 2011........................... $147,820,786 Percent Change 2.6% *Including mixed drink sales

Hotel Sales

November 2013................................ $1,277,117 2012................................ $1,206,392 Percent Change 5.9% Year to Date (November) 2013..............................$17,480,219 2012..............................$17,526,682 Percent Change -0.3% Annual Sales 2012..............................$18,683,676 2011..............................$18,662,136 Percent Change 0.1%

Single Family Homes Annual 2013...............................147 Permits 2012...............................186 Permits 2011...............................153 Permits Percent Change 2012-13 -21.0% Average Construction Cost* Annual 2013....................................$228,275 2012....................................$207,537 2011................................... $204,387 Percent Change 2012-13 10.0% *Not including land or lot improvements Average Square Footage* Annual 2013........................................... 3,002 2012........................................... 2,910 2011........................................... 2,814 Percent Change 2012-13 3.2% Average Construction Cost Per Square Foot* Annual 2013.........................................$76.04 2012.........................................$71.33 2011.........................................$72.64 Percent Change 8i2012-13 6.6%% * Total under roof

Lottery Sales

Faulkner County Annual 2013..............................$17,038,277 2012..............................$16,943,909 2011..............................$16,768,678 Percent Change 2012-13 .06% Total State Annual 2013........................... $432,932,799 2012 ......................... $452,245,215 2011........................... $474,879,701 Percent Change 2012-13 -4.3%

Natural Gas

Severance Tax Distribution Conway Annual 2013....................................$276,523 2012....................................$162,457 2011....................................$254,822 Percent Change 2012-13 70.2% Faulkner County Annual 2013....................................$224,455 2012....................................$131,418 2011....................................$204,052 Percent Change 2012-13 70.8%

Conway Building Permits Information provided by pulseofconway.com

Sunday, July 20, 2014 — 7D

Faulkner County Business Journal

State of Arkansas college scholarships By Roger Lewis

A college education in Conway used to be cheap. In 1960, a year’s tuition at ASTC (now UCA) was $150. At Hendrix the figure was about $430. A summer job at minimum wage ($1/hour) could provide funds for a year’s tuition. Not so today. This fall, tuition and fees for undergraduates at UCA amount to $7,889 per year, a figure that is in line with other public four-year universities in the state. It now costs approximately $20,000 per year for tuition, fees, room and board, books and other expenses for an instate undergraduate student to attend and live on campus at UCA. Several factors have contributed to this escalated cost to students, including lack of state support, increased security measures, Internet and computer services, competition for quality faculty and amenities that must be offered to attract students. To finance their education, most students rely on a combination of scholarships, student loans, family resources and work. In the old days the budget of Arkansas’ public universities and colleges was funded approximately 20% from tuition and 80% from state appropriations. But today this ratio is flipped. UCA’s 2013-14 general education budget of $131 million was funded 55.1% from student tuition and fees and 43.6% from state

appropriations (and 1.3% from other sources). Thus, the main factor in the astronomical increase in tuition is the failure of the State Legislature to adequately fund higher education. While tuition has escalated, financial aid in the form of scholarships has waned. In 1991, the state instituted Academic Challenge Scholarships, which were funded entirely by state appropriations. The state legislature continues to fund the program at $20 million per year, a figure that has not changed for more than a decade. Instead, the state has come to rely almost entirely on the Arkansas Scholarship Lottery as the major funding source of scholarships. In its nearly five years of operation, the Arkansas Scholarship Lottery has produced $2.2 billion in sales. Approximately 20%, ($430 million) of that revenue funded the bulk of the Academic Challenge Scholarships. However, beginning in 2012, sales started to decline by approximately 7% each year as shown on the graph. This trend is not unlike that in many

states where lottery sales have declined over time. If the decline continues, sales will be less than $400 million for fiscal 2015 and the funding of scholarships may be reduced for the third time. An educated work force should be a very high priority of state government; it is essential to the economy of Arkansas. Unfortunately, among the 25- to 34-year-olds in the nation, Arkansas has the second lowest percentage of college graduates (28.6%), edging out only Nevada. The national average is 38.8%. It is time to consider other revenue sources to fund scholarships and to finance public colleges and universities. Taxes of one sort or another are the source of all state revenue. When revenues are reduced or do not grow, invariably it is higher education that gets short changed. Other agencies such as K-12 education, Medicare/Medicaid and prisons are mandatory funding. They account for the bulk of the states’ general budget, leaving higher education to the will of the legislature. The most regressive tax is a sales tax, but it is

the easiest to pass in Arkansas because it requires only a simple majority, whereas other taxes require a 75% majority. Replacing the lottery funding of scholarships with a sales tax would require approximately a 3/10 of one-cent rate, raising the state sales tax from 6.5% to 6.8%. A dedicated sales tax would be expected to produce more revenue each year, unlike the declining lottery revenue. Unfortunately, Arkansas already has one of the highest sales tax rates in the nation. It is unlikely that the current legislature would consider increasing it. Some consider the lottery a voluntary tax and some say it is a regressive tax since a disproportional number of low-income people play it. I look at it as a tax on hope. I believe that we are boxed in to the lottery as a revenue source, but legislators need to find additional sources. An excellent source of revenue is for the US Congress to pass the Market Place Fairness Act, providing a means for states to collect sales tax on Internet sale of goods. Another possibility is to review all of the exemptions that exist for sales tax, income tax and property tax. Certainly a few tens of millions can be recaptured there. More information on Arkansas Scholarship Lottery can be found at Pulse of Conway website, pulseofconway.com I thank my friend Chris Spatz for editing and helping me with this article.



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