2014-04 Faulkner County Business Journal

APRIL 2014

Faulkner County in transition Health care changes offer challenges and opportunities for Conway Regional

Dr. Bart Throneberry, Chairman of the Board of Directors with Jim Lambert, President & CEO

2D — Sunday, April 13, 2014

Faulkner County Business Journal

New events, festival favorites coming to Toad Suck Daze Toad Suck Daze is May 2-4 in downtown Conway. In addition to its long-standing attractions and events — such as the Mardi Daze Parade; Toad Suck Daze 10K/5K Run; Tour de Toad; Kids Crawl, Drag & Squirt; Toadal Kids Zone; and others — the festival has added new events to appeal to festivalgoers of all ages.

Toad Suck Challenge

Arvest Bank and Crain Automotive Team have collaborated to bring a new athletic competition to Toad Suck Daze. During the ArvestCrain Toad Suck Challenge, individuals and teams compete for prizes and trophies on an inflatable, military-style obstacle course. The course will be located on Oak Street between Chestnut and Court Streets in downtown Conway. Competitions will take place throughout the weekend.

The event will be a timed speed competition with multiple categories and divisions. In each competition, the individual or team with the fastest time wins.

• Daze Dash: In this competition, individual contestants compete for $5,000. To participate, register at any Arvest Bank or Crain location in central Arkansas from April 21 to May 1 or enter at ToadSuckChallenge.com. Prelimi-

nary races will take place throughout the weekend with finals on Sunday afternoon.

• Individual Nonprofit: Nonprofit agencies in central Arkansas can designate an individual to run the course on the organization’s behalf. The winning agency receives a $1,000 cash prize.

• Individual Political: State and local political candidates can compete for a trophy or designate someone to run the course on their behalf.

• Individual Media: State and local media personalities can compete for a trophy.

• Team Corporate: Teams of four people representing a central Arkansas business can compete for a trophy.

An individual competition divided by gender and age is also available: senior (50 and older), adult (20-49) and teen (13-19).

For more information, including official contest rules and a schedule, vis-

it ToadSuckChallenge. and those in search of a com. fun time make their way to Tucker Creek to gathRide and Drive er toads to compete in Crain Buick GMC, the World Championship Crain Kia, Caldwell Toy- Toad Races. The toads ota and Smith Ford will are returned to Tucker participate in a Ride and Creek after the festival.

Drive event on Saturday This year’s “Toad and Sunday. As sponsors Roundup” will take place of Toad Suck Daze, the Tuesday, April 29, begindealerships have the op- ning at 6:30 p.m. New portunity to feature sev- this year is the opporeral new vehicles on- tunity to catch a special site at the Conway Area “pre-marked” toad and Chamber of Commerce. win a grand prize pack“The Ride and Drive age worth $500. The Toad gives prospective car Roundup is sponsored by buyers a chance to com- the Log Cabin Democrat. pare different makes The Toad Roundup is and models on the same open to all ages. Childay at one location,” said dren receive one Toad Mary Margaret Satter- Buck, the official currenfield, director of Toad cy of the festival, for each Suck Daze and events at toad they find. the Chamber. “Customers will be able to look Toad Suck After Hours at and test-drive cars in Downtown restaua relaxed, pressure-free rants and entertainsetting.” ment venues with late hours and live music Toad Roundup have the opportunity to Each year on the promote their special Tuesday night before events on the Toad Suck Toad Suck Daze, festival Daze schedule. “This is organizers, schoolchilDAZE < 3D dren and their families,

Toad Suck Daze entertainment lineup The 2014 Toad Suck Daze, presented by Crain Buick GMC, will take place May 2-4 in downtown Conway.

All entertainment will take place on the McDonald’s/Crain Kia Main Stage in Simon Park and is presented by Acx-

iom Corporation, Conway Convention & Visitors Bureau, Crafton Tull, and Southwestern Energy.

Friday, May 2 Sawyer Brown with special guest Mac Powell Saturday, May 3 MC Hammer

Toad Suck Daze is a free-admission festival.

There is no fee for entertainment.

For a complete schedule of events, visit ToadSuck.org or download the official Toad Suck Daze app for iPhone and Android.

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Log Cabin Democrat • Find our online edition at www.thecabin.net

Sunday, April 13, 2014 — 3D

Faulkner County Business Journal

MC Hammer to judge business start-up competition ‘LaunchPad’ offers $15K prize to winner When MC Hammer comes to Toad Suck Daze on May 3rd he’ll do more than just entertain festival goers. He’ll help choose one promising entrepreneur to take home $15,000. Hammer is one of three tech-savvy judges at “LaunchPad”, a start-up competition among ten Arkansas entrepreneurs.

“When we chose Hammer to perform at Toad Suck Daze, we had this event in mind,” said Brad Lacy President & CEO of the Conway Area Chamber of Commerce. “Most people know his music, but they don’t know that he is a major player in Silicon Valley.” Hammer (Stanley Burrell) has lectured about busi-

ness and social media at Stanford and Harvard.

He has been a founder and early investor in a number of successful tech ventures.

Joining Hammer on the panel will be Nada Stirrat, Chief Revenue Officer for Acxiom and Jonathan Sasse, a consultant who helped launch Slacker Radio

Crain, SWN Upgrade CNG Vehicle

Crain Buick GMC and Southwestern Energy have again partnered to underwrite the official vehicle of the Conway Area Chamber of Commerce. The companies have upgraded the Chamber’s 2011 GMC Yukon to a 2014 model. Similar to the previous SUV, the new Yukon is a dual-fuel vehicle that runs on both compressed natural gas and gasoline. Crain Buick GMC has the equipment and staff training to retrofit conventional gasoline-powered vehicles for CNG.

DAZE from 2D a great way for restaurants to take advantage of the heavy foot traffic Toad Suck Daze brings to downtown Conway,” Mary Margaret Satterfield said.

Arkansas Shakespeare Theatre

On Friday and Saturday, Arkansas Shakespeare Theatre will present a variety of scenes from some of Shakespeare’s most well-known plays. The performances will take place on the Preston Palmer Studios Stage in the Smith Ford Toadal Kids Zone. Children will have the oppor-

tunity to try on Shakespearean costumes in the dress-up center.

For More Information

For a complete schedule of events during Toad Suck Daze, visit ToadSuck.org or download the official festival app available on iPhone and Android.

and was President/CEO of iRiver America.

The ten participants will be composed of: six “invitational” participants from the Arkansas start-up community, a team from the Arkansas High School StartUp Weekend and three “play-in” spots to be selected from video submissions. “We’re especially excited about the “play-in” spots,” said

Lacy. “We’re encouraging any budding Arkansas entrepreneurs to submit a two-minute pitch video and a local panel will pick the three most promising.”

The LaunchPad competition has been organized by the StartUp Conway Steering Team chaired by Jeff Standridge. “Toad Suck Daze is a festival founded on fun but grounded

in education. LaunchPad will be an exciting way to celebrate new ideas and reward entrepreneurs,” said Standridge. “Our panel of judges has the reputation and credibility to help these start-ups in a number of ways.”

LaunchPad is presented by Pleth and .BUZZ. For more information about pitch submissions and competition details visit Startup.buzz.

What’s all the .BUZZ about?

Bill Doshier is President of dotStrategy. dotStrategy is a Conway based company, created for the purpose of operating the new Internet top level domain .BUZZ. Bill gave us a preview of the .BUZZ launch.

What is dotBUZZ? dotBUZZ is the new edgy, cool, hip, younger cousin of dotCOM. Since the Internet was opened to commercial use 20 years ago, the domain namespace has been generally limited to three top level domains: .com, .net and .org. Good, short, meaningful domain names are no longer available. Consumers and businesses need new options for domain names specific to their individual needs and online identities.

Of all the name possibilities, why BUZZ? Create buzz and you have the ear of the world.

The .BUZZ registry creates a sustainable, valuable name space for those wanting to show the world what’s happening right now. Our marketing focus is towards groups related to communications, public relations, event orga-

nizers, social networking, entertainment, start-ups, advertising, marketing and new product development How does one register a quality .BUZZ domain name?

It’s very important to engage immediately with a .BUZZ contracted registrar, open an account — and pursue the domain name desired. Through understanding and awareness of the .BUZZ launch process, the general public has a great opportunity to secure a choice .BUZZ domain name early.

General availability for .BUZZ opens Tuesday, April 15, at 10:01 am.

Both preregistration and general availability can be accomplished by using a national registrar such as GoDaddy (www.godaddy.com), or a local registrar such as PlethPlus (www.plethplus.com).

What is the potential market for .BUZZ and how are you creating your own buzz?

This is a leading edge opportunity with unlimited potential.

Globally, there are over 250 million Internet domains registered. Internet

usage is expected to double worldwide over the next three years. .BUZZ domains will help accommodate this growth. We continually look for innovative ways to create our own ‘buzz’ to a variety of audience.

You’ve partnered with UCA to launch .BUZZ to the world this Tuesday. What’s up with that?

We’re spreading the word about .BUZZ with the University of Central Arkansas. In leading a class on Internet start-ups — whether it’s starting a business, building a blog, or developing an app — we’re educating Gen Z on the world of opportunities new TLDs, like .BUZZ offer.

We’re inviting the local community to join us for the First Annual Buzz Bash this Tuesday April 15, from noon to 2:30 p.m. on the front lawn of the UCA College of Business.

For more information regarding BUZZ BASH or for additional information on how best to secure your desired .BUZZ domain name contact Bill Doshier at: bill@dotstrategy.buzz.

4D — Sunday, April 13, 2014

Faulkner County Business Journal

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COVER STORY

Faulkner County in transition

Health care changes offer challenges and opportunities for Conway Regional

Health care is in transition in Faulkner County.

Conway Regional Health System is accountable to the community to provide high quality, compassionate health care services. The mission statement sets the expectations for every person who wears a Conway Regional badge.

This means the work lives of the Conway Regional staff should be dedicated to making decisions that will lead to the highest quality care for patients in Faulkner and surrounding counties.

This level of accountability flows from the board of directors down to everyone in the organization including both clinical and non-clinical staff.

The challenge of delivering on these expectations is growing as we transition into a new era of accountability in providing health care.

Health systems are encouraged to provide more creative, smarter answers to delivering on those expectations. The Conway Regional Board of Directors and Executive Leadership Team are tasked with responding to these opportunities.

The way hospitals, physicians and other providers are reimbursed is changing.

Health care reimbursement is transitioning from a fee for service system in which providers (such as Medicare and Medicaid) pay based

facilities, including Conway Regional.

In 2013 Conway Regional provided more than $10 million in uncompensated care. This means medical services for which no payment is received. Uncompensated care includes charity care and bad debts.

It remains unclear how much relief the new insurance plans will provide for hospitals, but Faulkner County’s uninsured rate is projected to drop 12 percent by 2019.

Dr. Bart Throneberry, Chairman of the Board of Directors with Jim LamOther significant bert, President and CEO. challenges await:

on the number of services or tests conducted, to a system where providers are paid more for improving outcomes and driving value.

Under the new system, providers are being paid based on improved care experiences, improved health of populations and lower per capita costs.

The challenge currently is that most of the payment is based on volume but as more and more of the payment moves to outcomes or improving overall health, providers will have to change their focus and processes to respond. The challenge is to know when to shift from the fee for service model to the value based model when they have conflicting incentives.

Growing government regulations and expectations have begun plac-

ing about 5 percent of hospitals’ federal reimbursement at risk annually. Other payers are also moving more and more of their payment to a value based formula.

“We have seen and will continue to see different models (such as bundled payments, primary care medical homes and others) as we search for the best way to drive improved outcomes and reduced costs,” said Jim Lambert, Conway Regional Health System’s President and CEO. The Affordable Care Act has resulted in significant changes in the country’s insurance structure to help many formerly uninsured or under insured people pay for health care. The cost of uncompensated care remains significant for the nation’s health care

• How does Conway Regional prepare to fulfill its mission in a future world that requires increased integration of clinical services while still being rewarded based on high volumes of procedures?

• There is also the challenge of additional competition which is expected to move from Little Rock into the Conway health care market.

“These are enormous opportunities for Conway Regional to shine,” said Mr. Lambert. “We have always taken the approach that the best health care is always going to be provided by people who have a vested interest in the community. People who are taking care of their family and neighbors are going to be more committed to the health care they are providing. That be-

ing said, we knew it was just a matter of time until someone decided to come here. Our best response will center on the five strategic pillars that guide our decisions: quality, service, people, growth and finance.”

Service

Conway Regional’s goal is to create a culture of service excellence that consistently exceeds expectations. “We will measure that by achieving the top 10 percentile nationally in patient care and maintaining our staQuality tus of ‘most preferred The health system provider’ in the commuis going to build upon nity,” said Mr. Lambert. its accomplishments in the area of quality earn- People ing a number of national Conway Regional deand statewide awards for pends on the physicians care and service: along with nurses, ther• Number 1 in Arkan- apists, technicians and a sas for Major Cardiac host of other health care Surgery (Healthgrades, employees to provide 2012-2013) the care that the com• Top 10% in State in munity is counting on.

Patient Safety for Gener- We want to be the best al Surgery (CareChex) place to work for employ• 2013 Recipient of ees and provide the envithe Arkansas Governor’s ronment for physicians Quality Award, Achieve- to take care of their pament Level tients. The satisfaction • Top 10 percent in of employees and physithe state for overall med- cians is measured regical care, GI care, general ularly and plans are in surgery and pulmonary place to maintain high care, all in patient safety levels of satisfaction and (CareChex.com) engagement.

• Top 100 in the nation for home health Financial (HomeCare Elite) Financial goals are • Top 100 in the na- tracked and set based tion in coronary bypass on operating margin and surgery (CareChex) other financial bench• 2013 Recipient of marks to ensure the the state chapter of the health system has the American Diabetes As- funds it needs. As a notsociation’s Cure Care for-profit health system, Commitment Award, the Conway Regional inADA’s top award vests income back into Physicians and em- the equipment and facilployees are actively en- ities that are necessary gaged in ongoing efforts to meet the community’s to enhance the quality of HEALTH < 6D care.

Meadowlake Rd

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64

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1015 Burrow Avenue Centennial Valley Golf Club

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Gatlin Park

1025 Applewood Dr. ce

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Hendrix College

60

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Oak St

Conway Laurel Park

Caldwell St

60

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Central Baptist College

200 Merlot Drive 60

266

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University Of Central Arkansas

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The leadership of Conway Regional is dedicated to making the strategic decisions necessary to grow its services and facilities. To that end, a $32 million surgery and obstetrics addition is now part of the medical center to meet the needs of Conway physicians and the growing numbers of families in and around Faulkner County. “We are also working with the community and our medical staff to determine which services to expand or add based on

Top 5 residential sales Tyle

Growth

our employees and the community,” said Mr. Lambert. “Our health system board and leadership team are committed to looking for business models that enhance health care services and position Conway Regional to continue our ability to meet the needs of the community now and into the future.”

It is too early to know the result of these efforts, but as Mr. Lambert has said, “Any affiliation would have to enhance the services that are already being offered to our community. It would have to be compatible with our mission of providing high quality, compassionate care.”

Donaghey Ave

needs instead of paying shareholders.

the needs of the community,” added Mr. Lambert. “While we continue to look for opportunities to add services we know that we can’t, nor should, provide certain high level services such as transplants. It just wouldn’t be appropriate from a quality or cost perspective.”

Conway Regional leadership is also actively researching partnerships and affiliations to complement the health care services currently offered in Faulkner County. “We are simply reaching out to some like-minded health care providers to determine if a partnership or affiliation would be beneficial to Conway Regional,

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Salem Rd

HEALTH from 4D

Faulkner County Business Journal

S Salem Rd

6D — Sunday, April 13, 2014

365

286

Tupelo Bayou Site One Reservoir

Carter Lake

2285 Ginger Kerry

Price

Address

$370,000 1015 Burrow Ave.

Bed/Bath Subdivision 3/2.5

SqFt P/SqFt Year

The Village at Hendrix 2,230 $165.92 2013

$317,000 2285 Ginger Kerry Lane 4/3

Dogwood Estates

3,067 $110.53 2000

$290,000 1025 Applewood Drive 4/3

Applewood Cove

2,509 $115.98 2011

$250,000 925 Robynmar

4/3.5

Woodland Springs

3,328 $82.63 1993

$247,500 200 Merlot

4/2.5

Chapel Creek

2,110 $117.30 2011

Log Cabin Democrat • Find our online edition at www.thecabin.net

ConwayEconomy Unemployment Rate February Seasonally Adjusted US.....................................................6.7% Arkansas........................................7.1% Not Seasonally Adjusted US.....................................................7.0% Arkansas........................................7.5% Faulkner County ....................... 7.3% Conway..........................................7.2% Sales Tax Collections Conway* January 2014.....................................$1,617,654 2013.....................................$1,745,284 Percent Change -7.3% Annual 2013.................................. $23,235,891 2012.................................. $22,944,163 2011.................................. $22,366,464 Percent Change 2013-2012 1.3% *Tax Rate 1.75% Faulkner County* January 2014........................................ $600,465 2012........................................ $638,279 Percent Change -5.9% Annual 2013.....................................$8,588,835 2012.....................................$8,465,686 2011.....................................$8,279,301 Percent Change 2013-2012 1.5% *Tax Rate 0.5% Restaurant Sales* February 2014.................................. $13,202,185 2013.................................. $12,955,298 Percent Change 1.9% Year to Date 2014.................................. $26,299,437 2013.................................. $25,484,037 Percent Change 3.2% Annual Sales 2013................................$165,124,807 2012................................$161,318,563 2011................................$147,820,786 Percent Change 2013-2012 2.4% *Including mixed drink sales Hotel Sales February 2014.....................................$1,306,852 2013.....................................$1,195,171 Percent Change 9.3%% Year to Date 2014.....................................$2,485,440 2013.....................................$2,227,644 Percent Change 11.6% Annual Sales 2013.................................. $18,556,911 2012.................................. $18,683,676 Percent Change 0.7% Conway Building Permits Single Family Homes Year to Date (March) 2014......................................................23 2013......................................................36 Percent Change -36.1% Annual 2013................................... 147 Permits 2012................................... 186 Permits 2011................................... 153 Permits Percent Change 2013-2012 -21.0%

Average Construction Cost* Annual 2013........................................ $228,275 2012........................................ $207,537 2011....................................... $204,387 Percent Change 2013-2012 10.0% *Not including land or lot improvements Average Square Footage* Annual 2013................................................3,002 2012................................................2,910 2011................................................2,814 Percent Change 2013-2012 3.2% Average Construction Cost Per Square Foot* Annual 2013............................................. $76.04 2012............................................. $71.33 2011............................................. $72.64 Percent Change 2013-2012 6.6% * Total under roof Lottery Sales Faulkner County Year to Date (March) 2014.....................................$4,010,133 2013.....................................$4,542,209 Percent Change -11.7% Annual 2013.................................. $17,038,277 2012.................................. $16,943,909 2011.................................. $16,768,678 Percent Change 2013-2012 .06% Total State Year to Date (March) 2014................................$111,429,813 2013................................$121,084,343 Percent Change -8.0% Annual 2013................................$432,932,799 2012 ..............................$452,245,215 2011................................$474,879,701 Percent Change 2013-2012 -4.3% Natural Gas Severance Tax Distribution Conway Annual 2013........................................ $276,523 2012........................................ $162,457 2011........................................ $254,822 Percent Change 2013-2012 70.2% Faulkner County Annual 2013........................................ $224,455 2012........................................ $131,418 2011........................................ $204,052 Percent Change 2013-2012 70.8%

Information provided by pulseofconway.com

Faulkner County Business Journal

Sunday, April 13, 2014 — 7D

Cost of Living in Conway, Ark.

By Roger Lewis

The prices for groceries and gasoline have increased noticeably in Conway in recent months. But how does Conway compare to other cities? And what about other categories such as housing, health, and utilities?

A Cost of Living Index is prepared quarterly by the Council of Community and Economic Research. It establishes comparative living costs among 300 cities. The national average is arbitrarily set at 100 and Conway’s index is 90.1.

The cost of living in Conway, Arkansas is 10% below the U.S. national average.

Data are collected for specific commodities in six categories: groceries, housing, utilities, transportation, health care and miscellaneous expenditures.

The data are weighted — housing is 27% and groceries is 13.6%. Miscellaneous gets the most weight,

32.2%.

Miscellaneous consists of clothing, personal care items, recreation, fast food (use restaurants?), and sales tax (state and local). State income taxes and real estate taxes are not included in these calculations. Comparing the tax burden of Arkansans to other states is a topic for a future article. These weights are the same as those the US Bureau of Labor Statistics uses to compute the consumer price index (CPI), which is somewhat different from the Cost of Living Index.

The table compares Conway to selected cities in Arkansas and the U.S. nationally. Average rent is for a 2 bedroom, 1-1/2 bath 950 sq. ft. unfurnished apartment, recently constructed and excluding utilities except for water and sewer. Average home is for a 2400 sq. ft. four-bedroom new home of good or very good construction.

Except for Little Rock–NLR (98.3), the

cost of living in the listed Arkansas cities are all about the same (range 87.7 to 92.5). There is no surprise that San Jose, in the heart of California’s Silicon Valley, is very expensive. Data for Palo Alto California, the brains of Silicon Valley, are not available. Dallas and St. Louis are more expensive cities to live in than Conway but Fayetteville and Hot Springs are less expensive. Memphis is the least expensive city on the list.

The Council of Community and Economic Research conducts the quarterly survey for the American Chamber of Commerce Research Association Cost of Living index publication. To gather data, the Council has participating organizations (usually Chambers of Commerce or local government agencies) follow strict guidelines to collect data. The council lists 60 specific items and participants obtain prices from specified vendor types. Ap-

proximately 300 cities across the nation participate. Cities that participate must be within a metropolitan statistical area or have a population greater than 35,000 in a county with more than 50,000 people.

Whereas the Cost of Living Index is designed to compare costs among urban areas, the US Bureau of Labor Statistics Consumer Price Index (CPI) measures the cost of living for the entire U.S. The Cost of Living Index is recognized by the US Census Bureau, US Bureau of Labor Statistics, and The President’s Council of Economic Advisors. It is often referenced in their publications.

You can obtain comparisons among cities by going to the Pulse of Conway website (www. pulseofconway.com). Select cost of living under the Business Data tab.

I thank my friend Chris Spatz for editing and helping me with this article.