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Summa’s suitors may come from beyond CLE
CRAIN’S SERVES AS TOUR GUIDE THROUGH THE REGION’S UNIQUE HOMES
Companies studying electric medical treatment have ‘enormous’ opportunity
Akron health system eyes minority partner
By CHUCK SODER csoder@crain.com
By TIMOTHY MAGAW tmagaw@crain.com
When Summa Health System in Akron last week announced it would explore the sale of a minority stake in itself to another nonprofit health care organization, all eyes turned to Cleveland Clinic or University Hospitals as obvious suitors. However, local health care executives and observers aren’t so sure one of the medical juggernauts roughly 40 miles north of Summa’s flagship Akron City Hospital would be the party to sweep in to make a deal if the opportunity presents itself to buy into Summa, an enterprise totaling $1.6 billion in annual operating revenue. “It’s not necesANALYSIS sarily going to be one from Cleveland,” said Thomas Selden, president and CEO of Southwest General Health System in Middleburg Heights. “It may be, but I don’t think we should bet the farm on that’s what it is.” It’s all speculation at this point and has made for “intriguing water cooler discussion” in local health care circles, as Parma Community General Hospital president Terry Deis characterized it. Summa, for one, isn’t naming names, and neither University Hospitals nor the Clinic is commenting on the matter. But if past actions by both Cleveland hospital systems offer any indication of what might happen, insiders say neither could be the partner for which Summa is looking. “On some level, it might very well be a player significantly outside of the marketplace,” said Bill Ryan, president and CEO of the Center for Health Affairs, an advocacy group for local hospitals. Mr. Deis agrees. He said he “wouldn’t be surprised at all” if a hospital system from Columbus, Pittsburgh or Toledo courted Summa. The UPMC in Pittsburgh, OhioHealth in Columbus and ProMedica
Crain’s has launched House Calls, a new video tour feature of the homes of Northeast Ohio business leaders. Visit www.CrainsCleveland .com/HouseCalls for the videos, including the home of Joe Anello, the president of Telcom Construction Services Inc., which is shown in these photographs.
Shock waves are starting to flow through Northeast Ohio’s neurostimulation community, which is attracting significant interest from investors and deep-pocketed medical device companies. The region since 2005 has created or attracted at least six companies focused on neurostimulation, two of which have been sold for a combined $120 million. Two more startups are in the works at Case Western Reserve University, and others are bound to follow, according to several people in the region’s neurostimulation field.
They say the neurostimulation business — which is based on the idea of using electricity to treat medical conditions ranging from paralysis to pain to depression — is primed for expansion. They also believe Northeast Ohio has what it takes to capitalize on that expected growth because of the research and talent flowing out of CWRU and the large number of neurostimulation procedures conducted at local hospitals. A few big, out-of-state companies have established footholds in the business, which could make it hard for a local neurostimulation startup to become a Fortune 500 company. See NEURO Page 27
INSIDE All Pro Freight growth driven by demand The Avon company’s president, Chris Haas (right), says in the distribution industry, “There ... is more freight than there are trucks to handle it.” PAGE 3 PLUS: ■ Bravo Wellness will move to Cleveland, shelving plans to build anew in Lorain County. PAGE 3
MARC GOLUB
Developer adding space at booming MidTown Tech Park By JAY MILLER jmiller@crain.com
MidTown Tech Park is expanding again. Hemingway Development, a division of Streetsboro-based Geis Cos., plans to spend $8.9 million to buy and renovate a vacant building at 6555 Carnegie Ave. to add to its Midtown office/laboratory complex. The four-story, 64,000-squarefoot building will be used to offer
See SUMMA Page 28
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Neurostimulation field sparking investor interest
startups and other young businesses loft-style space at a lower cost than what is available in the MidTown Tech Park building at 6700 Euclid, which Hemingway constructed, or in the 50,000-square-foot 7000 Euclid Ave. building next door. Both 7000 Euclid and the empty 6555 Carnegie building take advantage of parking and other improvements that went into the 128,000 square feet of new construction at 6700 Euclid. See MIDTOWN Page 30
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SPECIAL SECTION
WomenofNote
2012
Crain’s profiles 15 of the top female business leaders in Northeast Ohio ■ Page W-1
Entire contents © 2012 by Crain Communications Inc. Vol. 33, No. 28