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$1.50/JULY 26 - AUGUST 1, 2010
Vol. 31, No. 29
Steris foes eye piece of market
Auto suppliers upbeat, but remain cautious New business has survivors optimistic, though uptick’s staying power unclear
Mentor medical device maker’s issues with FDA push others to seek firm’s hospital business
By DAN SHINGLER dshingler@crain.com
By CHUCK SODER csoder@crain.com
U
nlike other sectors of the economy, the U.S. auto industry has been holding its own over the last year, even rebounding from the nosedive it took when the “cash for clunkers” program expired last August. That’s been a godsend for the Northeast Ohio manufacturers who survived the industry’s crash in 2008 but still rely on Detroit for much of their business. Looking forward, however, there’s no strong consensus on whether the industry will keep all four wheels on the road. There are fewer suppliers around today than at the start of the recession — allowing many survivors to pick up new business — and many of those left standing now are optimistic. “You’ve got an automobile industry that is coming out of a real tough situation, and I don’t see the (production)
Steris Corp. is going to have to defend its turf. A few of the Mentor company’s competitors are clamoring to win over some of the many hospitals that for years have used Steris’ flagship product to clean endoscopes and other medical devices. Steris, which dominates the endoscope reprocessing market, became vulnerable last December when the U.S. Food & Drug Administration said the Steris System 1 no longer was approved for use, even going so far as to use the term “illegal.” Hospitals now have about a year to replace the machines with either a Steris product or one from another manufacturer. It is unclear how many might switch to competing products, but some hospitals appear to be giving them serious consideration, according to conversations with local hospital officials, industry experts and two of Steris’ competitors. The FDA gave Steris a fighting chance to keep the bulk See STERIS Page 21
INSIDE Good cookin’
KRISTEN WILSON ILLUSTRATION
See SUPPLIERS Page 6
RUGGERO FATICA
Macedonia-based Simply Southern Sides, led by founder and president Claude Booker (left), has seen sales grow nearly 700% since 2007 and is planning for more. Read Kathy Ames Carr’s story on Page 3.
Clinic aims to expand robust affiliate network over next 18 months By SHANNON MORTLAND smortland@crain.com
29
The Cleveland Clinic has long demonstrated a desire to expand its footprint beyond Northeast Ohio, and it will continue that quest through more affiliations with other health care providers. The Clinic’s Heart and Vascular
Institute likely will partner with two or three more hospitals outside Greater Cleveland over the next 18 months, and more such partnerships are on the way, said Dr. Joseph Cacchione, director of clinical integration at the Heart and Vascular Institute. “These affiliations are going to create a network of hospitals to
deliver high-quality care across the country,” he said. “There is a need (for affiliations) perceived by hospitals across the nation.” The Clinic has 12 affiliates in the United States, nine of which were created through the Heart and Vascular Institute. The most recent of those is an affiliation with Central DuPage Hospital in the Chicago
suburb of Winfield, Ill. Under the deal, Central DuPage will have more access to the Clinic’s heart surgery clinical trials, treatment protocols and other research projects not currently available in the Chicago area. The Clinic’s other affiliates are in Indiana, New York, North Carolina, Pennsylvania, South Carolina and
West Virginia, in addition to EMH Regional Medical Center, Lake Health West, MetroHealth Medical Center and Parma Community General Hospital in Greater Cleveland. The affiliations are designed around the needs of the local hospital and its surrounding community, but they all focus on quality and quality See CLINIC Page 22
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JULY 26-AUGUST 1, 2010
HARD AT WORK Workers in the Cleveland-Elyria-Mentor Metropolitan Statistical Area had an average hourly wage of $20.16 in May 2009, just below the U.S. average of $20.90, according to new data released this month by the U.S. Bureau of Labor Statistics. Here’s how wages in six major occupational groups compare in Cleveland vs. the rest of the country:
Occupational group
U.S. wage
Cleveland MSA wage
Management
$49.47
$50.08
Legal
46.07
39.30
Computer/math science
36.68
32.26
Health care practitioner
33.51
30.69
Construction/extraction
20.84
23.46
Installation, maintenance
20.30
21.09
SOURCE: U.S. BUREAU OF LABOR STATISTICS; WW.BLS.GOV
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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 - $64, 2 year - $110. Outside Ohio: 1 year - $110, 2 year - $195. Single copy, $1.50. Allow 4 weeks for change of address. Send all subscription correspondence to Circulation Department, Crain’s Cleveland Business, 1155 Gratiot Avenue, Detroit, Michigan 48207-2912. 1-877-824-9373 or FAX (313) 446-6777. Reprints: Call 1-800-290-5460 Ext. 136 Audit Bureau of Circulation
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Penton center may have buyer Real estate industry insiders say Fla.-based firm with interests here eyes E. 9th building By STAN BULLARD sbullard@crain.com
Optima International LLC, the Florida realty concern that acquired the 1 million-square-foot Huntington Building two months ago, is close to snaring another downtown Cleveland office tower. Through its Optima Ventures LLC subsidiary, the Miami Beach-based
company is completing due diligence to acquire the 21-story Penton Media Center, at 1300 E. Ninth St., from K/B Fund IV, a real estate investment fund managed by Newport Beach, Calif.-based KBS Realty Investors. That’s the word from three sources familiar with the situation, who asked not to be identified because they’re not principals in
the pending transaction. Two of the sources said the purchase may be funded by a loan from Citicorp. One of the sources said Optima representatives have toured the building frequently during the past few months. Chaim Schochet, Optima’s managing director who supervises the acquisitions and runs the properties, did not return five phone calls asking about the transaction before Crain’s deadline last week. Kevin Piunno, Optima vice president for leasing, declined comment. However, Penton Media Center,
which KBS Realty has owned since 1997, is on the market. David Browning, managing director of CB Richard Ellis’ Cleveland office, said the brokerage has been marketing the property since the spring. Asked if a transaction with Optima is brewing, Mr. Browning declined comment. With Penton Media, Optima would add a far different property to its portfolio than the recent acquisition of the hulking Huntington Building, which will require vast sums to reposition it. Penton Media is 94% occupied according to the CoStar realty data See PENTON Page 9
STAN BULLARD
Sources say Optima International LLC is set to buy the Penton Media Center.
INSIGHT
Metro charts recovery after shortfall, scandal Hospital refocuses on projects, operation By SHANNON MORTLAND smortland@crain.com
RUGGERO FATICA
Claude Booker, founder and president of Macedonia-based Simply Southern Sides, has grown the business of making pre-cooked Southern side dishes into a $3.8 million operation since its founding in 2007.
SIDE DISHES STEAMING Macedonia-based maker of fully cooked Southern meals expands product line, aims to better serve NE Ohio market By KATHY AMES CARR kcarr@crain.com
A
company in Summit County has found that its Southernstyle side dishes have been its meal ticket to a trajectory of business growth in the three years since its founding. By focusing mainly on the food service area, sales last year of Simply Southern Sides in Macedonia grew to $3.8 million from $75,000 in 2007, and project to reach $4.6 million this year as its product line and market share expand. “Our goal is to let Northeast Ohio know we’re here,” said Claude Booker, founder and president, who plans this year to court See SIDES Page 9
After dealing with red ink and corruption scandals in recent times, the MetroHealth System is contemplating how best to lay the foundation for its future. The county-subsidized health system is determining what construction projects it might need to undertake to remain competitive and is trying to Moran spread the word about itself — priorities that have been delayed by its operating woes, said Mark Moran, MetroHealth’s CEO. “We are coming out of some tough financial performances where we had some losses,” he said. MetroHealth cut its budget by
$17 million in 2008 after posting an $8 million loss in the first quarter of that year. The health system reduced its budget by another $20 million last year, to $717 million, by eliminating more than 400 full- and part-time positions. Those efforts helped MetroHealth post operating income of nearly $38 million in 2009. Though its finances have improved significantly, MetroHealth still must overcome the black eye it received from bribery scandals involving John Carroll, its former vice president of construction and facilities, and Thomas Greco Jr., a previous construction manager at the hospital. Mr. Carroll pleaded guilty last September to taking See METRO Page 11
THE WEEK IN QUOTES “You’ve got an automobile industry that is coming out of a real tough situation, and I don’t see the (production) schedules slowing down. If it dips, it’s only going to dip a little bit.” — Dan Moore, owner of several area companies that make products for automakers. Page One
“Universities today are paying much more attention to what students’ nonacademic life is like, and I think that’s good.” — Rick Bischoff, vice president for enrollment management at Case Western Reserve University. Page 13
“There’s quite a bit of variation of what hospitals need and want. Some need to improve quality or possibly help with recruitment of surgeons.” — Dr. Joseph Cacchione, director of clinical integration at the Cleveland Clinic’s Heart and Vascular Institute. Page One
“Health reform is going to really change the way we do business in health care.” — Christine Wynd, dean of Ursuline College’s Breen School of Nursing. Page 14
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JULY 26-AUGUST 1, 2010
FDIC hopes to salvage bad AmTrust loans Structured sales such as deal for 40% of residential portfolio offer agency potential By ARIELLE KASS akass@crain.com
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The Federal Deposit Insurance Corp. has sold a portion of a portfolio of nonperforming residential loans that had belonged to AmTrust Bank prior to its December 2009 failure. The FDIC sold a 40% share in a limited liability company created to hold the $898 million portfolio to a consortium formed by Residential Credit Solutions Inc., CarVal Investors and RBS Financial Products Inc. Residential Credit Solutions is a debt collector in Fort Worth, Texas, while CarVal of Minnetonka, Minn., is a private portfolio manager of undervalued and credit-intensive assets, according to its web site. No one from either company returned phone calls seeking comment. A spokesman for RBS in Stamford, Conn., said due to confidentiality agreements with the FDIC, he could not comment on the transaction. RBS Financial is a commercial real estate lender that purchases, sells and finances commercial and residential mortgage loans and other financial assets. The FDIC will retain a 60% stake in
the portfolio and will share in the return on AmTrust’s assets. The bank was sold to New York Community Bank after its failure and now is known as Ohio Savings Bank in this area. David Barr, a spokesman for the FDIC, said the sale was in no way related to the agency’s $518 million claim against AmTrust’s former parent company, which now is known as AmFin Financial Corp. The limited liability company, called AmTrust 2010 NP-SFR, is simply selling the assets of the failed bank, he said, with the money going to the creditors — one of which is the FDIC’s failed bank fund, a fund that has been hit hard by hundreds of bank failures over the past two years. Mr. Barr said through May 31, the FDIC had done 15 similar structured transactions with assets worth $15.9 billion. AmTrust, at the end of 2009, had total assets of $3.75 billion. Mr. Barr would not confirm a Wall Street Journal report that said private equity firm Oaktree Capital Management of Los Angeles had purchased $1.7 billion in the bank’s distressed loans, saying the FDIC did not comment before a deal was closed. No one from Oaktree returned a call seeking comment. Structured transactions allow the FDIC to participate in the upside of a deal, Mr. Barr said, and “do much better than if they were sold straight-out for cash.” Cash sales tend to focus on the short term, he said, while such structured sales
take a longer view of the potential for profit. Residential Credit Solutions will apply Home Affordable Modification Program protocol to all eligible loans and will try to restructure mortgages to keep residents in their homes. About 96% of the loans in the portfolio are delinquent, while 4% are in foreclosure. “If they stay in the house, restructure the loan, they continue the cash flow,” Mr. Barr said. “It’s a good way to sell assets in a market that doesn’t really exist, (that) is not robust. It allows us to sell in a market that really doesn’t exist any more.” The market for nonperforming residential loans is thin, Mr. Barr said, because they are a large part of what brought down the banks that failed. But he said following the savings and loan crisis, $25 billion in assets were sold using this method, and it was “very successful” for the entity that did so, the Resolution Trust Corp. There were five bidders on the portfolio, which the FDIC offered for sale as either leveraged or unleveraged. The winning bidders received notes worth $169.5 million, guaranteed by the FDIC. The assets were sold for 37% of the principal, or $332.3 million. The bulk of the properties, 37%, is in Florida, while 11% are located in California. Arizona, Nevada and Massachusetts each have 5%, and the remaining 37% are in 42 other states. ■
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Parma hospital mulls reconstruction of operations Organization’s changes in inpatient, outpatient demand prompt cuts and expansions in services By SHANNON MORTLAND smortland@crain.com
For Parma Community General Hospital, the change is undeniable. In recent years, the area’s only independent hospital has seen its number of inpatients drop while the number of outpatients has increased. Parma Community now is determining how to expand some services while controlling costs in other areas — an exercise that will include layoffs and a shift in its operating budget of about $10 million, said Barry Franklin, executive vice president and chief financial officer. “We are not anticipating a general housewide layoff, but it could be in certain places where services have changed,” he said. Mr. Franklin would not elaborate on where the changes have taken place, but the hospital’s 2009 annual report showed admissions had dropped to 15,600 last year, down about 10% from 17,340 in 2008. Days of patient care declined 16%, to 72,062 in 2009 from 85,994 in 2008. At the same time, outpatient procedures rose 3%, to 885,694 in 2009 from 857,993 in 2009. The emergency room saw 50,463 visits in 2009, up 7% from 47,099 the previous year. Mr. Franklin said the shift in inpatient and outpatient services at Parma Community follows a national trend “of more things being done on an outpatient basis.” In an effort to further capitalize on the outpatient movement, Parma recently bought the Ridge Park Square location of Spectrum Imaging. Though growth through acquisition is not a goal for Parma, this deal made sense because the hospital plans to expand its outpatient services and the medical office building where Spectrum was located already housed some Parma Community physicians and served the area north of the hospital, he said. By contrast, Parma Community’s WellPointe Pavilion outpatient center is located south of the hospital in Broadview Heights, he said. Over the last 25 years fewer procedures have required overnight hospital stays and technology has quickened that pace in the last few years at hospitals across the country, said Tom Campanella, executive director of the health care MBA program at Baldwin-Wallace College. In response, Parma Community is considering reduced work hours or fewer full-time-equivalent employees and better use of part-time workers, Mr. Franklin said. It now employs 2,017, down 66 from a year ago. These actions would come on top of measures taken to reduce the budget over the last two years. The measures included cuts in every department to offset lower inpatient
Volume 31, Number 29 Crain’s Cleveland Business (ISSN 0197-2375) is published weekly, except for combined issues on the fourth week of May and fifth week of May, the fourth week of June and first week of July, the third week of December and fourth week of December at 700 West St. Clair Ave., Suite 310, Cleveland, OH 44113-1230. Copyright © 2010 by Crain Communications Inc. Periodicals postage paid at Cleveland, Ohio, and at additional mailing offices. Price per copy: $1.50. POSTMASTER: Send address changes to Crain’s Cleveland Business, Circulation Department, 1155 Gratiot Avenue, Detroit, Michigan 48207-2912. 1-877-824-9373. REPRINT INFORMATION: 800-290-5460 Ext. 136
volumes, almost eliminating the use of temporary employees and renegotiating some supply contracts, Mr. Franklin said. Parma Community’s expenses dipped to $190 million in 2009 from $193.5 million in 2008.
Beyond cuts The current cost-cutting process began in February as the hospital analyzed its operations, Mr. Franklin said. It found ways to improve the collection of money from individuals,
insurers, Medicare and Medicaid, he said. Parma Community is doing a better job of making sure each claim is coded correctly so the hospital is paid faster and patients are asked to pay their share prior to receiving care, he said. “We won’t deny service but we are being more diligent about asking for that money up front,” Mr. Franklin said. Parma Community also is considering adding more outpatient centers in various communities and more clinics in Discount Drug Mart stores. The hospital in 2006 opened its WellPointe Pavilion outpatient center in Broadview Heights, which completed 27,900 procedures last year
“We are not anticipating a general housewide layoff, but it could be in certain places where services have changed.” – Barry Franklin, executive vice president and chief financial officer, Parma Community General Hospital and is on pace to reach that mark again this year. As a result, it may open similar centers in undetermined locations. It also has been experimenting with its Community Express Care clinics, which opened less than two years ago at Discount Drug Mart stores in Independence and Olmsted Falls. Mr. Franklin said the concept has worked well and similar clinics in other Discount Drug Marts could follow.
A possible site is the Discount Drug Mart store in Parma Heights, which is undergoing expansion and renovation, said Tom McConnell, chief financial officer for Discount Drug Mart, which also may open clinics in its Lorain County stores in partnership with CHP Regional Medical Center. “We like the idea of partnering with a hospital like Parma,” he said. “It helps make us more of a destination for health care.” ■
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Suppliers: Sales climb even after government’s incentives expire continued from PAGE 1
schedules slowing down,” said Dan T. Moore, owner of several area companies that make at least some products for the automakers, most notably Cleveland-based Soundwich, which relies on the industry almost exclusively to buy its sound-proofing materials. “If it dips,” Mr. Moore contends, “it’s only going to dip a little bit.” So far, that’s been true. The industry was selling — and making — cars and light trucks at a rate of about 17 million per year in the U.S. before sales dropped to a rate of just more than 9 million units per year in early
“From what I can see and what (Ford) is telling me, we’re not going to slow down any time soon.” – Mike Gammella, president, UAW Local 1250 2009, according to the Federal Reserve Bank of St. Louis. With cash for clunkers, the rate of sales spiked to 14 million per year, but quickly fell back to about 9 million. Since then, however, sales have climbed to a rate of more than 11 million units per year and stayed there in a range some are calling the new “normal.” It’s a far cry from the glory days,
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but at least automotive is holding up better than housing, which lost its momentum when subsidies meant to buoy that struggling sector of the economy expired at the end of April. In Brook Park, about 1,200 members of the United Auto Workers still are busy making engines, said UAW Local 1250 president Mike Gammella. The demand has meant that workers who expected to lose their jobs when Ford closes its adjacent Brook Park casting plant at the end of the year will instead have work waiting for them at the engine plant. “From what I can see and what they’re telling me, we’re not going to slow down any time soon,” Mr. Gammella said.
Shifting gears There are some signs things might be slowing elsewhere — and no shortage of automotive suppliers
who fear that sales will drop if the economy stalls or even sputters. “August is super strong, almost scary strong. However, September’s forecast is weak,” said Jerry Zeitler, president of Die-Matic Corp, which for nearly 40 years has been stamping precision parts for the automakers. With such little notice before new orders come in, there’s still time for September to turn into a better month, but Mr. Zeitler isn’t counting on it. The dropoff from what he’s seeing for August looks to be too sharp to disappear completely, he said. “September’s orders remain low. They went up slightly in the last two weeks but overall remain weak … September’s forecast is 60% of August’s forecast,” Mr. Zeitler said. Bill Adler, president of Clevelandbased Stripmatic Products and a maker of parts for vehicle suspension systems and other components, also is concerned. He sounds much like a man driving a ship through a storm near his home port. He knows the ocean, just not how it’s going to act as he navigates the next few miles. “We can’t see anything,” Mr. Adler said. “There is no backlog. It’s all hand to mouth.”
After a year of steady increases, July looks like it might be Stripmatic’s first month in which sales decrease slightly, he said. But he, too, says he just can’t be sure. “We don’t get the forecasts that we usually get. We’re just trying to follow the models and platforms that we’re on and seeing how they’re selling,” Mr. Adler said. “When I don’t know what’s going to happen in 60 days, we’re going to play it close to the vest until we actually see things go up.”
Something’s gotta give Those with furrowed brows cite a common concern: How can Detroit keep selling cars if people are unemployed and uncertain about the future? Mr. Moore said there are many future sources of water for a glass that’s already half full. He said he thinks the government is making the right moves to buoy the economy, including by extending unemployment benefits, and that there are some positive trends in the auto sector’s favor. “I don’t think the economy is performing that badly,” Mr. Moore said. “There hasn’t been a violent response (in the auto sector) by the consumer.” More importantly, he said, American automakers have made huge strides to catch up with their foreign competitors in just the last few years and are poised to take back more market share in the United States and worldwide. ■
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3G not available in all areas. BlackBerry® Bold™ 9700 Offer: Offer valid only for new Corporate Responsibility Users (CRU). Subject to credit approval. Price before AT&T Promotion Card and 2-year contract is $199.99. Allow 60 days for debit card fulfillment. Card may be used only in the U.S. Is valid for 120 days after issuance date but is not redeemable for cash and cannot be used for cash withdrawal at ATMs or automated gasoline pumps. Card request must be postmarked by 9/10/10 and you must be a customer for 30 consecutive days to receive card. While supplies last. Offer ends 7/31/10. CRU Data Plan Requirement: Smartphones require a DataPro (2GB) plan. If you exceed your initial data allowance, you will automatically be charged an additional $10 for each additional 1GB provided. All data allowances, including overages, must be used in the billing period in which the allowance is provided or they will be forfeited. A DataPro Enterprise Plan is required for Corporate email, Intranet sites and business applications. For more details on Data Plans, go to att.com/dataplans. Phone Return Policy/Early Termination Fee: No Early Termination Fee (ETF) if service cancelled within 30 days of purchase, but up to $35 Restocking Fee may apply for returned devices; Thereafter, up to $325. Independent agents may impose additional equipment-related charges. Sales tax calculated on un-activated price of handset. Early Termination Fee subject to change. Coverage not available in all areas. See map at www.wireless.att.com or visit store for details. © 2010 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. BlackBerry,® RIM,® Research In Motion,® SureType,® SurePress™ and related trademarks, names and logos are the property of Research In Motion Limited and are registered and/or used in the U.S. and countries around the world.
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CRAIN’S CLEVELAND BUSINESS
WWW.CRAINSCLEVELAND.COM
JULY 26-AUGUST 1, 2010
GOING PLACES
Exceptional Retail Development Opportunity
8 CLEVELAND-AREA SITES | 38 OHIO LOCATIONS | 110+ PROPERTIES NATIONWIDE
1.866.512.7826 www.RetailSitesForSale.com
JOB CHANGES
Reidy to director of public finance.
EDUCATION
FINANCIAL SERVICE
CLEVELAND INSTITUTE OF ART: Grafton J. Nunes to president.
BCG&CO.: Amanda DeFrank to tax associate.
CLEVELAND STATE UNIVERSITY AND NORTHEASTERN OHIO UNIVERSITIES COLLEGES OF MEDICINE AND PHARMACY: Dr. Mark Penn to vice provost for health affairs (CSU), special adviser to the president (NEOUCOM).
ERNST & YOUNG LLP: James Whittman Butler to partner; Jason Belot to executive director.
KENT STATE UNIVERSITY: Andre Thornton to president’s ambassador.
PARAGON CAPITAL GROUP LLC: Charles R. Crowley and Michael C. Voinovich to managing directors, investment banking and principals; Christopher M. Chapman to vice president; Istvan A. Nadas to investment banking analyst; Laura M. Davis to office manager.
FINANCE
HEALTH CARE
HUNTINGTON BANK: Timothy R.
AKRON CHILDREN’S HOSPITAL:
CUYAHOGA COMMUNITY COLLEGE: Judi McMullen to vice president, human resources.
Nunes
Butler
Belot
Dr. Rajeev Kishore, Dr. Ravi Kamani and Dr. Nancy Wasserbauer Kingston to division of Allergy and Immunology. LAKE HEALTH: Craig Ghidotti to vice president, human resources; Charles Josey to vice president, corporate finance. METROHEALTH MEDICAL CENTER: Dr. Robert D. Ferguson to chair, department of radiology. PRIORITY HOME HEALTH CARE INC.: Sabrina Morgan to medical records coordinator; Kalia Woods to client service representative.
HOSPITALITY RITZ-CARLTON, CLEVELAND: Kelsey Williams to public relations coordinator.
INSURANCE THE HOFFMAN GROUP: Diane Tytko to account manager.
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BENESCH: Matthew D. Gurbach to associate. CHRISTLEY, HERINGTON & PIERCE: T. Ted Yates to associate. MANSOUR, GAVIN, GERLACK & MANOS CO. LPA: John W. Monroe to partner and shareholder. NICOLA, GUDBRANSON & COOPER LLC: Bruce L. Waterhouse Jr. to of counsel.
MANUFACTURING MAYFRAN INTERNATIONAL INC.: Earl T. Williams to network technician.
NONPROFIT CLEVELAND SIGHT CENTER: Kevin R. Krencisz to chief financial officer.
BOARDS CLEVELAND-MARSHALL LAW ALUMNI ASSOCIATION: Bryan L. Penvose (Koblentz & Penvose) to president; Jill S. Patterson to presidentelect; Sasha Markovic to vice president; Gregory S. Scott to secretary; James P. Sammon to treasurer; Stacey L. McKinley to immediate past president. HAWKEN SCHOOL: Charles P. Cooley (Lubrizol Corp.) to chair. LEUKEMIA & LYMPHOMA SOCIETY, NORTHERN OHIO CHAPTER: Judith E. Matsko to president; Richard J. Radke III to vice president/ president elect; Michael Burke to treasurer; Brian Hricik to secretary; Michelle Mindell to immediate past president. MOUNT SINAI HEALTH CARE FOUNDATION: Marc C. Krantz (Kohrman Jackson & Krantz PLL) to chair; Richard J. Bogomolny and Beth W. Brandon to vice chairs; Keith Libman to treasurer; Susan E. Rubin to secretary; Sally H. Wertheim to director emeritus.
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NORTHEAST OHIO HEALTH UNDERWRITERS ASSOCIATION: Dan Feiwell (Sirius Benefits Consulting Ltd.) to president; Bill McCarron to president-elect; Sam Fiorentino to vice president; Steve Ligus to treasurer; Joe Blasko Jr. to secretary.
Send information for Going Places to dhillyer@crain.com.
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CRAIN’S CLEVELAND BUSINESS
Sides: Product line expanding continued from PAGE 3
Northeast Ohio-based retailers that include Heinen’s and Marc’s. “We’re seeing growth everywhere but this area.” Simply Southern Sides, a subsidiary of Urban Food Concepts LLC, offers 28 fully cooked, boil-in-a-bag dishes that are served in the hot deli sections of more than 500 grocery stores in 18 states — including Ohio — as well as at 11 colleges and universities, nine military bases (including six in the Middle East) and two restaurant chains located in the South. To augment those offerings, the minorityand woman-owned company launched in February a packaged retail line of “grab-and-go” sides that are available in the refrigerated and deli sections of more than 400 stores. It plans to make those side dishes available this fall in grocers’ frozen foods sections. Mr. Booker and his wife, Crystal, operate the business. They also employ a sales force of 17 brokers scattered throughout the country who help position the products — which include collard greens, blackeyed peas, and okra and tomatoes — in stores.
RUGGERO FATICA
Simply Southern Sides makes 28 fully cooked, boil-in-a-bag dishes including collard greens and cream corn. The products are packaged by Georgia-based BD&K Foods. Vince McDonough, director of perishables for Dave’s Markets, said most of the local grocer’s stores began offering Simply Southern Sides products about a year ago. He said the dishes are “doing very well.” “When he presented his products, they were very consistent with what we offer in our hot deli sections,” which include fried catfish and fried chicken,” Mr. McDonough said. “There were no hiccups whatsoever when we transitioned into carrying those products.” Mr. Booker, a native of South Carolina who now lives in North-
field, said he hopes to expand the product line to include Cajun/Creole, Caribbean and Hispanic/Mexican cuisine. The company’s methodical approach to growing its business is what prompted its selection in March into the JumpStart Launch100 program, a collaborative statewide initiative that aims to create a pipeline of 100 highpotential minority and inner-city based businesses in Ohio over the next five years. “Mr. Booker is a great example of someone who has cut his teeth in the industry and has positioned his firm for growth,” said Johnny Hutton Jr., vice president of JumpStart Inclusion Advisors. “We’re dealing with an entrepreneur who knows how to take his business to the next level.” Prior to founding Simply Southern Sides, Mr. Booker held various positions in the food service industry, including district sales manager for US Foodservice and Sysco. He also was a corporate chef and from 2003 to 2005 owned and operated his own restaurant — The Wang King — at Randall Park Mall. It was at the chicken wing restaurant where developed what are now the Simply Southern Sides. ■
Penton: Building seen as investment continued from PAGE 3
service. It is the real estate equal of coupon-clipping for stock investors. Bob Redmond, managing director of the Cleveland office of Mohr Partners, said he was not aware of Optima’s bid for Penton Media Center, but he does not consider it a surprising move. “It’s probably a case of knowing the market so well now that they saw a chance to buy a jewel,” Mr. Redmond said. “The building is very efficient. The views are very generous. With the Medical Mart project nearby, it’s a wise move.” He said Optima will benefit from more investments here. “They will be able to manage the building more efficiently than someone who has one building in town,”
he said. “They’ll also have advantages owners of single buildings don’t have, such as in buying supplies. They will have a diversified portfolio in terms of price. They will also have a platform to show prospects different buildings and, perhaps, use the availability of some amenities to attract tenants to various buildings.” How much Optima pays for the 575,000-square-foot building, which Cuyahoga County assigns a market value of $40 million for tax purposes, will be significant. Most commercial properties trading recently are distressed sales or are selling at a discount due to the recession and credit crunch — if they sell at all. KBS has marketed the building in the past and pulled it back when it did not get bids to its liking. ■
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D D D D D
Aircraft Sales and Acquisitions Pre Buy Planning & Inspection Management Aircraft Refurbishment & Completion Management Aircraft Appraisals and Valuations Aircraft Audit & Asset Recovery CUYAHOGA COUNTY AIRPORT
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When It Gets Down to Business… Solon Gets It! The City of Solon welcomes these new businesses: AeroClay Inc. ArtCarve Inc. Green Recovery Group / Green Innovations Haute Monde Salon Harvey M. Jaffe, D.D.S. Inc. Le Chaperon Rouge PGMetals, Inc. Salon Alvarez Speedeon Data Corporation The Littlest Heroes
And thanks these real estate professionals for bringing new business to Solon: Bob Garber - CRESCO Real Estate Tom Gustafson - Colliers Ostendorf-Morris Eliot Kijewski - CRESCO Real Estate Kevin Malinowski - CB Richard Ellis William Miele - Colliers Ostendorf-Morris Kevin Piunno - Jones Lang LaSalle John Poulos - CB Richard Ellis Douglas Smith - Pinnacle Real Estate Christopher Smythe - Smythe Property Advisors Don Woodard - Davis Development Group
Solon’s Got It!
Prime industrial, office and retail sites at www.solonohio.org City of Solon • 34200 Bainbridge Road • Solon, Ohio 44139 • 440.337.1313 Peggy Weil Dorfman, Economic Development Manager • pweil@solonohio.org
The Solon Select is a distinguished group of more than 800 businesses that have chosen to locate in the City of Solon.
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JULY 26-AUGUST 1, 2010
PUBLISHER/EDITORIAL DIRECTOR:
Brian D. Tucker (btucker@crain.com) EDITOR:
Mark Dodosh (mdodosh@crain.com) MANAGING EDITOR:
Scott Suttell (ssuttell@crain.com)
OPINION
Nice change
W
illiam Friedman seems to be the stabilizing force that the Cleveland-Cuyahoga County Port Authority needs after a rocky end to the tenure of the maritime agency’s previous CEO, Adam Wasserman. The new boss talks like a guy who doesn’t let his ambition outrun his common sense, which is precisely the style of leadership the port could use at this critical juncture of its existence. During a recent editorial board session with Crain’s, it was evident that Mr. Friedman isn’t content with the status quo at the Port of Cleveland. However, he also doesn’t see the need to spend hundreds of millions of dollars on a megaport — a plan pushed by his predecessor — in order to increase the utility of the port’s operations. “We’ll run the port based on the facilities today,” Mr. Friedman said. “We’ve got plenty of land right now. We can move a lot (of cargo) right now.” Mr. Friedman sees two potential niches to increase traffic through the port beyond the iron ore and steel shipments that make up a large chunk of the dock activity there. One involves a revival of efforts to create a cross-lake ferry service that would move trucks and people between Cleveland and a port in Canada — our largest trading partner. “We’re going to dig into that again right away,” Mr. Friedman said. The other niche would be providing a feeder service for transporting containers — large cargo boxes that can travel by rail, ship or truck — from Montreal or another Canadian port to the port here. Mr. Friedman’s vision of the volume of container traffic that could be expected through Cleveland is far more modest — and more realistic — than that of Mr. Wasserman. The latter spun the idea that a large-scale port here could snare a fair amount of shipping business from congested East Coast ports that each handle millions of containers a year. “I’d be thrilled if we could handle 50,000 containers (a year) in Cleveland,” Mr. Friedman said. The targets set by the new CEO meet with the approval of the Port Authority’s board, members of which don’t hide their relief that the Wasserman era is over. “We had a dysfunctional CEO” who couldn’t deliver on what he was recommending, board member Robert Smith said during the editorial board session. Of course, it was the port board that hired the dysfunctional CEO in early 2007 and gave him a big, fat raise in 2008, only to push him out the door with a $300,000 buyout the next year. It also was the port board that voted 9-0 in favor of Mr. Wasserman’s 20-year, $500 million plan to move the port’s docks to East 55th Street from their current downtown home without strongly challenging early on how it would pay for a project of that scale. So, unless port board members want whatever adjectives they ascribe to Mr. Wasserman applied to them, they might think twice before trashing the former CEO now that he’s no longer around to defend himself. In the meantime, we’re glad Mr. Friedman is aboard and applaud his quick immersion in the job.
FROM THE PUBLISHER
New site offers total Crain’s package
T
News area as well as our popular “Going his is an invitation that I think Places” section of job promotions and you’ll find useful and maybe our “news by industry” area that allows even a little entertaining. And, you to easily scan news by economic sector. OK, there’s a hint of promotion But we know that a regular criticism of in it as well. the news media — exacerbated by the I’d like you — at least the very few of harsh economy of the past two years — you who aren’t regulars already — to is that reporting focuses on the negative. drop what you’re doing (Not yet! Read So we created “Bright Spots,” a on!) and take a few minutes gathering of stories about posito browse the pages of our BRIAN tive happenings in our regional newly redesigned web site at TUCKER businesses. www.CrainsCleveland.com. Our site now houses the Ohio We believe you’ll be pleased News Roundup, which scans the with what you find at our digital daily and business newspapers home, starting with a clean, across Ohio each day to give attractive look crafted by you a broad look at what’s designer Kristen Wilson. It’s more happening in the Buckeye State inviting and easy to navigate, that’s of interest to business and it’s true to our mission of readers. bringing our readers and web Our “Stocks of Local Interest” button visitors the most up-to-the-minute busion the home page not only gives you the ness news as it happens. latest data on 60 local companies, but it Our staff long ago stopped being focused gives you handy links to our most recent just on the production of the newspaper stories about each. that finds its way to you on Mondays. Want to offer up an opinion? Visit the Our newsroom operation is constant, site each week to add your vote to our delivering stories to you as they break. weekly poll, or submit a letter to the Regulars will recognize our Daily
editor or Personal View column for the weekly newspaper. We thought it made sense to allow our readers to access some of the hottest stories from other Crain cities, so we’ve created an area to scan the headlines and link to stories from Crain’s Detroit Business, Crain’s New York Business and Crain’s Chicago Business. For data junkies and research directors, we’ve created a Data Center that houses our business lists, a white paper library, news archives going back to 1994, various directories and guides as well as our weekly “Behind the News” podcasts hosted by Joel Hammond. You’ll find information about custom publishing opportunities that enable you to tell your company’s story in a unique and powerful way. Our Small Business section lets you search for businesses to buy and LoopNet lets you search thousands of commercial real estate listings. Our new site was the result of a year’s work by a committed team led by Craig Mackey and Scott Suttell. Please take a few minutes to sample it and let us know how we can improve it for you. ■
PERSONAL VIEW
Relieving congestion requires cooperation By CYNTHIA ANDREWS
I
don’t think anyone would deny that we have a love affair with our cars here in Cleveland. Just look at our congested roads and you’ll see that cars can be an obsession here. The westbound stretch of I-90 that cuts through Cleveland is a prime example. It ranks within the top 50 most congested highways, according to a study released by INRIX National Traffic. In fact, it will only get worse in the Flats as three of the city’s lift and swing bridges are closed or limited to traffic as they are renovated and painted. We accept our transportation problems and live with the nuisance of sitting at near standstills every morning and evening, a complaint echoed by com-
Ms. Andrews is a senior IBM Corp. executive in Cleveland. muters in every major American city today. Yet, this is more than a hassle and quality of life issue; it has a negative impact on our productivity, the flow of goods, our economic competitiveness and even our environment. Beyond these inefficiencies, we should wonder if our nation’s transportation system will be able to meet the economic demands of the 21st century as our population and cities continue to expand. This isn’t something that ODOT or the U.S. Department of Transportation can solve by themselves. The best investments to fix our traffic problems are going to be those in which actions by transportation agencies are comple-
mented by businesses and commuters. We already have a grassroots initiative called Sustainable Cleveland 2019 that is championed by local leadership from the public and private sectors and supported by hundreds of people from the local community. They have already suggested some initial tactics that would help ease congestion and reduce our impact on the environment. We just need to do more. We need to take advantage of the tools that are available to us. As a city and a nation, we have to work together, using the latest technology to address our traffic problems. Recently, my CEO, Sam Palmisano of IBM Corp., shared a stage with U.S. Secretary of Transportation Ray LaHood to discuss a series of transportation initiatives See VIEW Page 11
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bribes in exchange for contracts with East-West Construction Co. and Mr. Greco was found guilty of the same crimes last month. Those events set MetroHealth’s capital investment plans back, Mr. Moran said. “We had to look at all of the construction projects we were doing and who was doing them and who bid on them,” he said. “I put my hands around the throat of the construction process and stopped it. The Carroll and Greco situation was a complete breakdown of our financial control on construction projects.” New checks and balances have been instituted to avoid another construction scandal. They include tightening the bidding process, revamping the facilities department and adding a construction committee under the board of trustees. Now, the focus is on overhauling the aging buildings on the main campus, a process that is long overdue, Mr. Moran said. According to Mr. Moran, MetroHealth Medical Center “is the most important face you put out to the consumer, the most important environment in which care is delivered. This is something you have to invest in to be relevant, attractive and ultimately be considered by consumers.”
Time for a makeover MetroHealth has hired VFA Inc., a facilities asset management and capital planning firm from Boston, to help it determine what capital projects will be needed and how much the makeover will cost, Mr. Moran said. The estimated cost to renovate the main campus alone likely will be huge. One architect estimated the cost to bring the hospital up to speed at about $1.5 million per patient bed, Mr. Moran said. At 556 beds, a top-notch renovation and construction project could hit a jaw-dropping $834 million, he said. Mr. Moran cautions the figure is just an initial estimate and the health system still must research what exactly is needed throughout the hospital and the rest of the system. MetroHealth will have a better estimate by early next year after VFA inspects every inch of the hospital, he said. What VFA will find is a hospital campus that was put together piecemeal as new services and space were needed. The oldest building was constructed in 1921 and the most recent
in 2005, Mr. Moran said. The buildings also were designed by about a dozen different architects, he noted. “The history of this hospital, while very colorful, has been a history of getting by,” said Ron Fountain, MetroHealth’s board chairman and dean of the business school at Walsh University in North Canton. “It’s still pretty baseline in some areas.” A master facilities plan set for completion by November will address issues such as whether the medical center will need 556 beds in the future and if new construction is necessary, Mr. Moran said.
“The market is moving. It’s like an amoeba; it’s always changing and it’s very dynamic.” – Ron Fountain, board chairman, MetroHealth “We have to really consider if we’re going to continue to put money into the maintenance and upkeep of this facility,” he said. “I think we have to consider if we should build something new and more modern.”
Evaluating strengths It’s a tough decision to make given that MetroHealth’s rivals — the Cleveland Clinic and University Hospitals — each have invested $1.2 billion in renovation and construction of their campuses. Construction decisions might hinge on how MetroHealth can differentiate itself from the competition, said Thomas Campanella, director of the health care MBA program at Baldwin-Wallace College. “They’ve got to make an honest assessment of what their strengths are and play into that,” Mr. Campanella said. “They need to package those services they believe are superior and use that as a carrot to bring in other business.” For MetroHealth, ambulatory centers in new neighborhoods will be key and will be the first new construction the system embarks upon, Mr. Moran said. About 181,000 patients who visited MetroHealth’s 14 locations last year couldn’t pay their bills, so the health system must expand beyond its traditional geographic area, the demographic it serves and the services it provides, he said. “By August, we will have some kind of first look at some places where there are opportunities for us
to put new ambulatory centers in that will help us expand our business and services,” he said. Though Mr. Moran has an idea of where the profitable markets might be, he would not yet disclose them. He said MetroHealth is working with a real estate firm to acquire land. Dr. Fountain said MetroHealth must be careful where and how it invests its construction dollars because the delivery of care constantly is evolving and likely will continue to change as health reform is implemented. “The market is moving. It’s like an amoeba; it’s always changing and it’s always very dynamic,” he said. “We’re trying to anticipate the market’s needs. If we make a capital mistake, we’re stuck with it.” The money for any construction will come from sources such as surpluses generated by the health system, private donations and bonds, though financing discussions are still 18 months away, Mr. Moran said.
In the meantime, MetroHealth is investing in its image to better appeal to insured patients. The health system hired Cleveland communications consulting firm Dix & Eaton to help the public hospital boost its brand and build a new image. The marketing and communications staff also will grow in an effort to help potentially new — and more lucrative — Northeast Ohio markets get to know MetroHealth, its physicians and the services they provide, said Eileen Korey, vice president of communications at MetroHealth. Many only know MetroHealth as the place where you go when you’ve been in an accident and that Metro Life Flight will get you there — a belief that is partly due to public campaigns to pass tax levies to fund those services, Mr. Moran said. Noted Ms. Korey: “Part of the challenge is to reframe that story. When you talk about entering markets we have not been in, they need to know who we are.” Regardless of how the renovation and construction of MetroHealth shapes up, Dr. Fountain said it will not be delayed any longer and its position as the county’s safety net health care provider will be maintained. “We are going to do it,” he said. “I don’t know how the hell we are going to do it, but we are not going to walk away from our mission.” ■
that the public and private sector need to move on to develop smarter transportation systems. Just building more roads, railroads or adding flights isn’t the answer. A more intelligent, or smarter, transportation system would need to connect and collect the data of vehicles, government agencies, freight carriers, travel service providers, weather patterns and even individuals using real-time, customized traffic guidance. To understand the real value of the data we glean, we need to apply sophisticated mathematical models that detect the patterns and spot the correlations so we can take the
real-time information and turn it into predictive actions. This can create a more travelercentric system, whether that traveler is a person or a package. That’s what both commuters and shippers want today — the ability to control their journeys, across multiple modes of transportation, in real time. Cities around the globe are testing this now. Singapore can examine traffic patterns and predict congestion up to 45 minutes ahead. A pilot there has proved to be about 90% accurate in predicting the volume and speed of drivers, information that is then used to adjust 1,700 sets of traffic lights. And just last month, IBM announced
a new project with researchers at KTH Royal Institute of Technology in Sweden that uses analytics technology to gather information from the GPS devices in 1,500 taxi cabs in the city. The data will give the city and residents real-time information on traffic flow and travel times so they can decide their best commuting options. Smarter transportation is not some grand and futuristic ideal. It’s happening now, and making it more intelligent is in our best interests. By working on it together, we’ll still be able to drive our cars and drive economic growth for Cleveland, the state of Ohio and our nation. ■
11
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INSIDE
16 EMPLOYERS HELP ADVANCE EMPLOYEES’ EDUCATION.
13
HIGHER EDUCATION Community colleges draw quite a crowd Institutions evolve as student bodies grow, become more diverse By JOEL HAMMOND jmhammond@crain.com
T PHOTOS PROVIDED
The new student center at Cleveland State University is scheduled to open at the end of August and will have more amenities that satisfy students’ social and technological needs.
CENTERS OF ATTENTION Universities incorporate more amenities into student unions that enhance quality of life By SHANNON MORTLAND smortland@crain.com
T
he glass, steel and brick structure stands at Euclid Avenue and East 21st Street as a shiny, new example of the modern student center that students want to see when visiting colleges. The building at Cleveland State University opens at the end of August as a place where students can meet, grab a bite to eat, study or relax, said Sandra Emerick, associate dean of students at Cleveland State. It’s really up to the students to make the building their “home away from home,” she said. “They can stay between classes or as long as they want” by using the student lounge, computer center, café, game room, terraces and fireplaces — all of which have views of downtown Cleveland, she said. See CENTERS Page 15
he University System of Ohio’s ambitious plan, unveiled in March 2008, to increase enrollment at the state’s higher education institutions by 230,000 included strategies aimed at growing community college numbers. Dual enrollment allowed students to be enrolled in courses at two-year and four-year institutions at the same time, for instance; another aspect allowed for the complete and simpler transfer of community college credits to four-year institutions. Then the recession hit, and thousands of unemployed hit the books to better themselves for their next jobs. The combined rush has left area community colleges scrambling to keep up. “It’s been an incredibly fast rate of increase,” said Eric Fingerhut, chancellor of the Ohio Board of Regents. The numbers are astounding: Fall 2006 enrollment in community colleges statewide was 167,693, according to the state; last fall, the most recent data available, the state estimated enrollment to be 203,543, an increase of 21.4%. That includes a 17.4% jump — from 173,434 — from 2008 to 2009. Area schools reflect the same trends: Lorain County Community College’s enrollment is up 17.8% from fall 2007 to fall 2009 (10,858 See COLLEGES Page 17
ENROLLMENT SWELLS Northeast Ohio community colleges are reporting large enrollment increases, which follows a pattern across the state: ■ Cuyahoga Community College: Summer 2010 enrollment increased 14% over 2009 ■ Lakeland Community College: The school in Kirtland has experienced double-digit increases for the past several terms ■ Lorain County Community College: Enrollment is up 17.8% from fall 2007 to fall 2009 The bookstore at Cleveland State relocated into the new student center at 2121 Euclid Ave. University officials hope the new center’s features will stimulate more student interaction and offer a “home away from home” sentiment.
■ Throughout Ohio: The state estimated enrollment at community colleges jumped 17.4% from 2008 to 2009
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Colleges adjust to meet new demands in health care Universities revamp medical programs as field expects more patients amid reform efforts By SHANNON MORTLAND smortland@crain.com
G
reater access to health care will equal an increasing demand for medical workers, so local colleges are preparing to help answer the call. Northeast Ohio’s universities are anticipating a need for more nurses, primary care doctors, therapists, administrators and wellness coaches to help provide services to an additional 32 million Americans who will gain access to care through the health reform bill. As a result, many schools are tweaking coursework, inventing new programs and, in some cases, reviving majors that previously had lost their appeal. “With more people being insured, there is going to be a need for direct health care, so we’re planning alternatives to physicians,” said Alison Benders, vice president of academic affairs at Lake Erie College. The Painesville school is considering resurrecting its physician assistant program that existed 20 years ago but had since lost interest, she said. “The need for physician assistants diminished but it’s on the rise again because they can provide care more cost effectively than physicians,” Dr. Benders added.
Other programs being considered by Lake Erie include supportive hospital personnel and management, case management and programs that would give hospital administrators exposure to the clinical side of the industry, Dr. Benders said. “We’re not trying to do something extravagant but (attend to the) everyday needs of the region,” Dr. Benders said. Meanwhile, The Northeastern Ohio Universities Colleges of Medicine and Pharmacy is working with hospitals and its university partners — Cleveland State, Youngstown State and Kent State universities and the University of Akron — to create programs that will boost the number of primary care doctors in Greater Cleveland, said Dr. Jay A. Gershen, president of NEOUCOM. Beginning in the 2011-2012 school year, Cleveland State and NEOUCOM will launch a program in which they will jointly enroll up to 20 students who will spend time at both universities earning their medical degrees, he said. Those students will not have to pay tuition if they agree to work in primary care in the inner city, he said. The two colleges have been in talks with local hospitals, businesses, individuals and philanthropic organizations to get sponsorships for those students, he said. Similar partnerships to provide more primary care physicians in Northeast
“With more people being insured, there is going to be a need for direct health care, so we’re planning alternatives to physicians.” – Alison Benders vice president of academic affairs, Lake Erie College Ohio’s rural areas also are in the works, he said.
Nursing a need Many local universities are ramping up their nursing programs in response to an anticipated need that existed even before health care reform. The United States has experienced a nursing shortage in recent years that is expected to deepen as more people come into the health care system. Cleveland State University recently separated its nursing program from the College of Education and Human Services to grow the program into its own school of nursing, said Ronald Berkman, president of Cleveland State. Under the new heading, the university will add students and instructors, as well as create more partnerships with local hospitals to train students, he said. Notre Dame College launched its nursing program four years ago and will continue to enroll more students in the coming years, said Diane Jedlicka, chairwoman of nursing at Notre Dame. In addition, Notre Dame is pondering how to better care for
the elderly, she said. The federal government has a grant program to help students learn more about caring for the aging because 12% of the American population now is older than 65, she said. The federal government has created grant programs for nursing colleges, nursing students and medical clinics, said N. Margaret Wineman, dean of the University of Akron’s College of Nursing. Akron plans to apply for some of those funds to continue to expand its enrollment and programming in nursing, she said. However, she currently cautions graduating nursing students that hiring has slowed down with the recession. Many retirement-age nurses have continued to work while waiting for retirement accounts to recover or for a spouse to find a job. Part-time nurses also now are working full time, which has quelled the nursing shortage to an extent, she said. Still, it’s a great time to become a nurse, she said. “Once the economy corrects itself, the underlying need will still be there,” Dr. Wineman said.
New course treatment Though the presence of BaldwinWallace College’s major in health promotion and health education has existed for 30 years, its content has changed and it is about to be revamped again to conform to a health care system being shaped by reform, said June Romeo, chairwoman of the Division of Health and Physical Education. Ideally, the program would teach students to help others manage
chronic conditions and live overall healthier lives, which would fit in well with the health reform bill’s push for wellness, she said. “More people are going to have access to (care), and it could place significant burdens on the system,” Dr. Romeo said. “There is going to be a greater need for people in the community who have knowledge but are not necessarily medical providers.” Kent State University is placing an emphasis on prevention, said Willie Oglesby III, assistant professor of health policy and management at Kent State. The university now is accepting the inaugural class of students for its new prevention science doctorate program, which will teach students to “design, implement and evaluate effective behavioral interventions for diverse populations,” he said. Adults looking to continue their education could get some federal help to return to school full time, said Christine Wynd, dean of Ursuline College’s Breen School of Nursing. A new grant program would give students a stipend of $22,000 a year to work on their master’s degree full time, in exchange for a promise to work in primary care, she said. Ursuline has applied for those grants and she said the school should know by September if it will receive them. Ultimately, health reform will significantly affect the higher education and health care industries, she said. “Health reform is going to really change the way we do business in health care,” Dr. Wynd said. ■
CWRU’s new executive MBA program targets leadership Named one of the “Best in the Midwest” by the Princeton Review, Kent State University offers high-quality education in a classic residential setting.
By SHANNON MORTLAND smortland@crain.com
With more than 218 choices of undergraduate study and a new College of Public Health, Kent State encourages you to explore, to experiment, and to find what motivates you to keep learning. For more information, contact the Admissions Office at 1-800-988-KENT or visit us online at www.kent.edu/admissions.
K e n t S t a t e U n i v e r s i t y, K e n t S t a t e a n d K S U a r e r e g i s t e r e d t r a d e m a r k s a n d m a y n o t b e u s e d w i t h o u t p e r m i s s i o n . 10 -1516
EXCELLENCE in Action
Many people are put into leadership positions without any formal training on how to manage others, so the new executive MBA curriculum at Case Western Reserve University’s Weatherhead School of Management is trying to solve that problem. The new EMBA curriculum will launch this fall with an inaugural class of about 30 students who will learn, primarily, how to be effective leaders, said Michael Devlin, Weatherhead’s associate dean of executive education. “We’re going to acknowledge you’re at a different point in your career,” he said. “Somebody who is coming for an EMBA is looking for a different skill set than somebody going for a regular MBA; they’re coming here to prepare to lead.” When Weatherhead embarked on the first overhaul of its EMBA curriculum in a decade, they called upon professors, graduates and local businesses to find out what they wanted to see in the program, Mr. Devlin said. The resounding answer was leadership education, he said. The management school first infused throughout the new EMBA curriculum the principles taught in its popular Leadership Deep Dive
program, a nine-day course that aims to teach people how to be better leaders, he said. In addition, professors will teach the basics such as finance and marketing from a leadership perspective, he said. Students will learn how a leader should be thinking about and approach such aspects of the business. Those designing the curriculum also determined that some disciplines are better taught in shorter or longer time frames than in the past, Mr. Devlin said. For example, accounting now will be taught over two semesters at a slower pace, rather than cramming it into one semester, he said. Though most of the students in the EMBA program likely will still come from Northeast Ohio, the business school wanted to design the curriculum to make it easier for people in other states and abroad to enroll in the EMBA, Mr. Devlin said. The previous curriculum called for 24 short visits to campus, but that has been reduced to 12 longer visits, he said. The result has been positive, with people enrolling from Cincinnati, New York and Pennsylvania, he said. Those students also will work frequently in groups, which will give them a perspective from people in different cities, he said. ■
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Centers: Schools look to foster emotional connection continued from PAGE 13
The new center is immensely different from the concrete-laden student union that once occupied the same lot, Ms. Emerick said. With plenty of windows and a front entrance on Euclid Avenue, the new center opens up to the city, rather than enclosing itself within the campus, she said. It’s a testament to how much times have changed on college campuses, which in recent years have competed against one another to offer more and more previously unheard of amenities to prospective students. In another example, the University of Akron’s campus has undergone a transformation that includes a new student union housing various dining options, student offices, a ballroom, theater, game room and retail services such as a copy center and a bank. Case Western Reserve University also is raising money to build a $50 million center that will serve as a gathering place, which students have been advocating for years. Students now gather at the aging Thwing Center, which houses the bookstore, student offices and restaurant. The college in May received a $20 million gift from Tinkham Veale II, a 1937 graduate of the Case Institute of Technology. The new building will be named the Tinkham Veale University Center.
‘All about the experience’ Though expensive, student unions are an important part of the university experience that students are anticipating when choosing a college, said Rick Bischoff, vice president for enrollment management at CWRU. “Students and parents, particularly given the relatively large investment they are making in higher education, are looking at quality of life issues,” he said. “Kids want to know, ‘Am I going to come and have plans? Am I going to make friends?’” Students are looking for an
PHOTO PROVIDED
The student union at the University of Akron has several dining options. emotional reaction to a college campus; they want to feel at home, Mr. Bischoff said. That’s why so many colleges across the country are spending money on nonacademic bells and whistles, he added. “Universities today are paying much more attention to what students’ nonacademic life is like, and I think that’s good,” Mr. Bischoff said. Among the most important features that students want to see on campus are a comfortable place to gather, food around the clock and access to technology, said Trina Dobberstein, vice president of student affairs and dean of students at Baldwin-Wallace College. “It’s very clear to students and families that college choice is all about the experience … and we need to be mindful of that,” she said. Cleveland State wanted to build a center that appealed to today’s students, so they relied on the student body to design the center around their demands, Ms. Emerick said. Surprisingly, students didn’t ask for amenities such as a nail salon or a bank, they wanted gathering places, a ballroom and performance
COMING UP IN CRAIN’S Forty Under 40 Crain’s Cleveland Business is accepting nominations for our annual Forty Under 40 feature, which profiles 40 people under the age of 40 who are making their marks on Northeast Ohio. Nominations can be submitted via the nomination form on Crain’s web site, CrainsCleveland.com. Nominations also can be sent to editor Mark Dodosh via e-mail at mdodosh@crain.com or via regular mail to 700 W. St. Clair Ave., suite 310, Cleveland 44113. E-mail nominations must include “Forty Under 40” in the subject line. All nominations should be no longer than a single page; longer submissions will be rejected. Self-nominations are welcome, but people eligible for the feature should still be under the age of 40 as of the section’s Nov. 22 publication date. The deadline for submissions is Aug. 9.
Health Care Directory Crain’s Cleveland Business on Sept. 20 will publish its 13th Health Care Directory, a listing of companies
and organizations that provide health care services in Northeast Ohio. Go to www.CrainsCleveland.com /section/hcd to view the Health Care Directory. If your company or organization has never submitted information for the directory, send an e-mail requesting a survey to Deb Hillyer, dhillyer@crain .com. The e-mail must include company name, address, phone number and a contact name; incomplete requests will not receive a response. The deadline to submit information is Aug. 13th. The directory will be divided into 18 categories: addiction services; associations and professional groups; dentists and dental groups; fitness and wellness; health insurance underwriters (only those companies listed as Health Insuring Corporations by the state of Ohio); home health; hospice; hospitals and hospital systems; laboratories; medical equipment and imaging; mental health; occupational health/occupational therapy; outpatient services; physical therapy/rehabilitation; physicians and physician groups; prescription services; senior and long-term care services; and women’s health services.
spaces, she said. “Students are looking for opportunities to congregate with other students,” she added.
Making due Baldwin-Wallace over the years
has renovated its student center to roll with changes in student demand. The center once had a bowling alley, but that was replaced with a cyber café with TVs, snacks and drinks, Ms. Dobberstein said. The game room, which likely had an array of recreational activities in the past, now only has pool tables. While the private college has done what it can with the current space, she said administrators are weighing building a new student center with more windows and current amenities. Another possibility is adding a wing to the center and connecting it with the student activity center, which was converted from an old women’s gym, she said. “Our building, which is a little old and dated, is not the most appealing building,” Ms. Dobberstein said. However, she said planning for the student union would be at least a year out and BaldwinWallace would have to raise money for the project before breaking ground. Kent State University is mindful of students’ need to come together
and, although it isn’t building a huge new student center, it is investing $3.3 million to renovate its outdoor Risman Plaza to include lawn space, trees, landscaping and more outdoor seating, which is a far cry from the former plaza consisting largely of concrete and a 1970s-era water fountain. The plaza will be finished this fall. Notre Dame College, meanwhile, has added student activities such as yoga and wellness classes across campus to make up for its lack of a student union, said David A. Armstrong, vice president of enrollment at the private college. “We’ve been able to do all that without a big building that costs a lot of money, although we would love to have that some day,” he said. Overall, universities are willing to give students what they want if it will help their recruiting efforts, Ms. Emerick said. “It’s not just about strong academics,” she said. “We also want to tell the students they are important to the community.” ■
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Workers encouraged to balance the books
said because cohort groups stay together throughout the course of such programs, they are able to get to know each other.
Colleges, businesses help employees gain easier access to degree with offerings at workplace
Not just for executives
By ARIELLE KASS akass@crain.com
L
arry Schlifke didn’t have to go far from his desk at work in order to graduate with his MBA in 2005. Mr. Schlifke, a manager of instructional design at Progressive Corp., is one of 87 Progressive employees who have completed a graduate business program held on the insurance company’s campus in Mayfield Village, taught in conjunction with Cleveland State University. Across Northeast Ohio, colleges and businesses have teamed up to offer degree programs at work sites to employees who have families and jobs, but still want to get additional education. Mr. Schlifke said in his case, he always knew he wanted to get his MBA. But with a 2-year-old and a pregnant wife, he didn’t think he would be able to until the program started at Progressive. “I was working a full-time job, supporting a family,” Mr. Schlifke said. “It was really nice not to have to commute downtown, to have the expense of gas and other things.” Kathleen McGauley, senior manager of training for Progressive, said the on-campus program — which also is open to non-Progressive employees — supports the company’s culture of continuous learning. The on-campus MBA began in 2003 and an undergraduate
business degree was added in 2006. “It really helps us get a better, well-rounded, educated work force,” Ms. McGauley said. Progressive’s program has a broad mix of people from inside and outside the company; 95 of the 182 graduates since the program began have been Progressive employees. At a new program at Allstate’s Hudson campus, administered by the University of Phoenix, 11 students are vying for MBAs, including one non-Allstate employee. Students there said they appreciate not only the proximity to their workplace, but also the fact that lessons can be tailored to connect to their industry. “It’s very relevant,” said Lori Schley, a senior division leader in Allstate’s accounting department and a student in the MBA program. “They keep it current. It’s very beneficial.” While initial enrollment was less than the school had hoped, University of Phoenix vice president of academic alliances Jim Hutcherson said the program has been a success. Students are able to gain a close connection, he said, and by having the program at Allstate, the company is able to build loyalty with employees.
Pros and cons Kent State University has one of the oldest executive MBA programs in the country, said Rick Schroath, associate dean and special adviser to the dean of the College of Business
On-site classes can benefit employer It’s a way to get your foot in the door, in the extreme. Nursing students at the Huron School of Nursing at Huron Hospital aren’t guaranteed a job at the Cleveland Clinic, which has owned the 126-year-old nursing school since the mid-1990s. But Penni-Lynn Rolen, director of the schools of nursing and allied health in the Cleveland Clinic’s east market, said having students train at the Clinic is beneficial for the hospital system. Administration and Graduate School of Management. In workplace programs, traditional content remains, he said, but is wrapped in terms that are more relevant to students at a company. Kent’s executive MBA programs can be offered on campus or off, Dr. Schroath said; however, health care MBA programs are designed to take place on employers’ campuses. Dr. Schroath said Kent benefits from having a program on an employer’s campus since it helps strengthen relationships with a business. That makes it easier to place interns there or help graduates find a job. Dale Kramer, director of MBA and executive MBA programs at BaldwinWallace College, said the school used to do a number of on-site programs at employers, but has since discontinued them. It’s important that the partner be a “strategic fit,” he said. Currently, Baldwin-Wallace
She said by taking classes in the hospital, students become familiar with the layout of the hospital and the systems the Clinic uses. “With the national nursing shortage, to have a program that allows you to grow your own is prudent,” she said. Classes take place at Clinic hospitals, and while the school is not yet able to offer a standalone associate’s degree — it does so in conjunction with Tri-C or Notre Dame — Ms. Rolen said that is in the school’s plans. — Arielle Kass is exploring the possibility of two such programs. “It’s really right sometimes and not a perfect fit other times,” Mr. Kramer said. “We’re not out there with a shotgun trying to create a lot of these things. We do it on a selective basis.” Benoy Joseph, associate dean for academic affairs and professor of marketing at the Nance College of Business at Cleveland State University, said the school has had on-site classes at places like NASA and Lincoln Electric. Next year, he’s hoping to start a program at MetroHealth Medical Center. There are some downfalls, though, to the corporate school structure. The richness and variety of discussions may not be as strong if classes lack the variety of a traditional school setting, Mr. Joseph said. People from other companies would bring new and different perspectives to learning. But he also
Not all programs are for executives — or MBAs. Cuyahoga Community College partners with the Ford Motor Co. to offer 10 credits on-site toward an associate’s degree during company time as employees are trained on new equipment and learn about electricity or hydraulics. Those students have the option to go to Tri-C to finish their degrees, said John Gajewski, executive director of manufacturing training for the workforce and economic development division at Tri-C. Mr. Gajewski said the curriculum is largely the same as what students would learn on Tri-C’s campus, but lessons tend to be more hands-on. The school has a full-time employee based at Ford’s Brook Park facility. Jim Robinette, launch planning work force readiness leader at Ford’s Brook Park Cleveland engine Plant One, said the collaboration helps the company “upscale” its employees. Mr. Robinette said the classes follow the manufacturing schedule, which is particularly useful. “Most schools don’t start at 6 o’clock in the morning, but we do here,” he said. “They don’t sacrifice personal or family time.” Mr. Robinette also said making it a college class adds legitimacy to the training workers are receiving. Lakeland Community College has a similar program, in conjunction with First Energy. Patricia Hoyt, dean for work force development and the continuing education division at the school, said she is seeing increased interest in the programs, and expects to see more specialized programs in the future. ■
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to 12,792); Tri-C’s summer 2010 enrollment rose about 14% over 2009 (14,876 to 16,931); and Lakeland Community College in Kirtland has seen double-digit percentage increases for the past several terms, according to chief communications officer Dawn Plante. It’s the same story across Ohio: Dayton’s Sinclair Community College is up 25% over last year; fall registrations at Clark State in Springfield, northeast of Dayton, are up 19% from last June; and spring enrollment at Stark State College in Jackson Township, near Canton, grew 39% over 2009.
A mix of solutions Northeast Ohio schools are battling the space crunches resulting from rising enrollment in a number of ways. Hybrid classes — partly online, partly on campus — have become popular; students attend one class a week on campus, while the course’s other instruction occurs on the web. “Utilizing the technologies available has been vital to accommodating the demand,” said LCCC president Roy Church, who also said half of LCCC’s students took at least one online class during the spring semester, the first time the school has reached that mark. At Tri-C, vice president of enroll-
ment Pete Ross said administrators are more closely watching fill rates on classes and adjusting locations accordingly. More popular classes now are in the school’s biggest available spaces, and Tri-C also is offering more classes at previously unpopular times, such as 4 p.m. or 5 p.m., knowing they’ll fill. Lakeland’s Ms. Plante said that school also is employing hybrid classes as a way to free up classroom space, and it has added, for example, 58 new English classes. LCCC, meanwhile, is adding for the fall eight modular classrooms, which can hold up to 30 students each; school president Dr. Church said LCCC is built for about 6,600 students, about half the number currently enrolled. Additionally, the latter two schools have new operating levies on the November ballot, Lakeland’s potentially adding $9 million in operating revenue and LCCC’s $2 million. The schools said the levies hopefully would offset stretched state funding, which likely won’t get a big boost when the new budget hits in 2012. “Once we pass a budget, if enrollments exceed the budget, then the state support doesn’t go as far,” Mr. Fingerhut said. Other problems, though, have surfaced that extra funding won’t help. Adjunct faculty members for
those 58 new English classes at Lakeland are difficult to find; LCCC, meanwhile, has had similar faculty problems and has had to carefully plan portions of its curriculum. Dr. Church said there is a demand for wind energy education, but LCCC has found the jobs just aren’t there yet to support that investment. “You have to be careful to not get too far out in front of the market,” Dr. Church said.
’Round and ’round While an economic turnaround likely would affect enrollment,
other factors indicate higher numbers may be here to stay. Part of the university system’s goal to increase enrollment statewide involves nontraditional students, which the university system deems “a significant untapped pool of learners in the state. These students are more likely to be deeply rooted in the state and thus represent an important target in meeting the goal.” To that end, LCCC has added to offerings at its outreach centers, located in Lorain, Wellington, Elyria and Brunswick.
“If we can get them to 10 credit hours, the likelihood of them completing a degree goes up dramatically,” Dr. Church said. Lakeland, meanwhile, reports an uptick in students enrolling directly out of high school, opting for the cost savings over attending a traditional four-year college right away; Mr. Fingerhut said that is happening statewide. Additionally, the number of high school students taking classes at Lakeland is up 13% (to 700 from 621) for this fall over last fall, and it has increased 10% each of the last five years, Ms. Plante said. She added that 49 students graduated from Lakeland this past spring before attending their high school graduations. ■
Inspiring minds, transforming lives, AND a great value s Employers hire our students: 97% of our graduates are employed or in graduate school within 9 months of graduation.* s Leaders come from John Carroll: 500 Ohio companies are owned or operated by our alumni. s Recognized value: Student success and generous financial aid earn JCU a top five regional spot in the U.S. News and World Report “Best Colleges, Best Values” comparison. The John Carroll experience is more than the quickest path to a degree or getting that first job. We inspire and prepare our students to engage the world as creative, innovative, and ethical leaders in the workplace and throughout their lives.
www.jcu.edu/success *For details about the Class of 2009, graduation rates, and rankings, visit the URL above
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CRAINâ&#x20AC;&#x2122;S CLEVELAND BUSINESS
WWW.CRAINSCLEVELAND.COM
JULY 26-AUGUST 1, 2010
100 LARGEST NORTHEAST OHIO EMPLOYERS RANKED BY FULL-TIME EQUIVALENT LOCAL EMPLOYEES(1)
Rank
Company Address Phone/Web site
Full-time equivalent local employees 6/30/2010
6/30/2009
% change
Total number of employees in Ohio Type of business
Top local executive Title
1
Cleveland Clinic 9500 Euclid Ave., Cleveland 44195 (216) 444-2200/www.clevelandclinic.org
34,000
32,000
6.3%
37,800
Health care provider
Delos M. "Toby" Cosgrove president, CEO
2
U.S. Office of Personnel Management 1900 E St., NW, Washington 20415 (202) 606-1800/www.opm.gov
14,843
13,849
7.2%
49,698
Federal government
C. Frank Figliuzzi chair, Cleveland Federal Executive Board
3
University Hospitals 11100 Euclid Ave., Cleveland 44106 (216) 844-1000/www.uhhospitals.org
13,224
12,970
2.0%
15,142
Integrated health care system
Thomas F. Zenty III CEO
4
State of Ohio 30 E. Broad St., Columbus 43215 (614) 466-2000/ohio.gov
9,932
10,201
(2.6%)
59,045
State government
Ted Strickland governor
5
Progressive Corp. 6300 Wilson Mills Road, Mayfield Village 44143 (440) 461-5000/www.progressive.com
8,900
9,170
(2.9%)
9,538
Insurance and financial company
Glenn M. Renwick president, CEO
6
Cuyahoga County 1219 Ontario St., Cleveland 44113 (216) 443-7220/www.cuyahogacounty.us
8,036
8,956
(10.3%)
8,036
County government
Jim McCafferty county administrator
7
Summa Health System 525 E. Market St., Akron 44304 (330) 375-3000/www.summahealth.org
8,000
8,079
(1.0%)
NA
Health care provider
Thomas J. Strauss president, CEO
8
U.S. Postal Service 2200 Orange Ave., Cleveland 44101 (800) 275-8777/www.usps.com
7,641
8,195
(6.8%)
NA
U.S. postal service
Todd Hawkins district manager, Northern Ohio District
9
City of Cleveland 601 Lakeside Ave., Cleveland 44114 (216) 664-2406/www.city.cleveland.oh.us
7,580
8,232
(7.9%)
7,580
Municipal government
Frank G. Jackson mayor
10
Cleveland Municipal School District 1380 E. Sixth St., Cleveland 44114 (216) 574-8000/www.cmsdnet.net
7,385
7,465
(1.1%)
7,385
Education
Eugene T.W. Sanders CEO
11
Group Management Services Inc. 3296 Columbia Road, Suite 101, Richfield 44286 (800) 456-2885/www.groupmgmt.com
6,541
6,023
8.6%
9,924
Professional employer organization
Michael Kahoe president
12
KeyCorp 127 Public Square, Cleveland 44114 (216) 689-6300/www.key.com
5,553
5,973
(7.0%)
6,485
Bank holding company
Henry L. Meyer III chairman, CEO
13
MetroHealth System 2500 MetroHealth Drive, Cleveland 44109 (216) 778-7800/www.metrohealth.org
5,408
5,379
0.5%
6,197
Health care provider
Mark J. Moran president, CEO
14
FirstEnergy Corp. 76 S. Main St., Akron 44308 (800) 646-0400/www.firstenergycorp.com
5,367
5,384
(0.3%)
7,710
Electric utility holding company
Anthony J. Alexander president, CEO
15
Kent State University P.O. Box 5190, Kent 44242 (330) 672-3000/www.kent.edu
5,030
5,001
0.6%
6,083
Higher education
Lester A. Lefton president
16
General Motors Corp. 300 Renaissance Center, Detroit 48265 (313) 556-5000/www.gm.com
4,500
NA
NA
10,500
Automotive manufacturing
John Donahoe plant manager, Lordstown complex
17
Case Western Reserve University 10900 Euclid Ave., Cleveland 44106 (216) 368-2000/www.case.edu
4,449
4,496
(1.0%)
NA
Higher education
Barbara R. Snyder president
18
Summit County 175 S. Main St., Akron 44308 (330) 643-2500/www.co.summit.oh.us
4,164
4,176
(0.3%)
4,164
County government
Russell M. Pry county executive
19
Akron General Health System 400 Wabash Ave., Akron 44307 (330) 344-6000/www.akrongeneral.org
4,151
4,076
1.8%
5,617
Integrated health care delivery system
Vincent J. McCorkle president, CEO
20
Timken Co. 1835 Dueber Ave., S.W., Canton 44706 (330) 438-3000/www.timken.com
3,700
4,262
(13.2%)
4,500
Friction management and power transmission James W. Griffith products and services president, CEO
21
Swagelok Co. 29500 Solon Road, Solon 44139 (440) 248-4600/www.swagelok.com
3,600
3,600
0.0%
3,600
Designer and manufacturer of industrial fluid system components
Arthur F. Anton president, CEO
22
Ford Motor Co. One American Road, Dearborn 48126 (800) 392-3673/www.ford.com
3,500
3,800
(7.9%)
6,180
Automobile manufacturer
NA
23
Akron Children's Hospital One Perkins Square, Akron 44308 (330) 543-1000/www.akronchildrens.org
3,179
3,070
3.6%
4,050
Pediatric health system
William H. Considine president
24
Sherwin-Williams Co. 101 Prospect Ave., NW, Cleveland 44115 (216) 566-2000/www.sherwin-williams.com
3,058
3,003
1.8%
3,665
Coatings and related products
Christopher M. Connor chairman, CEO
25
Goodyear Tire & Rubber Co. 1144 E. Market St., Akron 44316 (330) 796-2121/www.goodyear.com
3,000
3,000
0.0%
NA
Tire manufacturer
Richard J. Kramer president, CEO
26
University of Akron 302 Buchtel Common, Akron 44325 (330) 972-7111/www.uakron.edu
2,573
2,539
1.3%
5,446
Higher education
Luis M. Proenza president
27
Lincoln Electric Holdings Inc. 22801 St. Clair Ave., Cleveland 44117 (216) 481-8100/www.lincolnelectric.com
2,418
2,453
(1.4%)
2,450
Manufacturer of arc welding products
John M. Stropki chairman, president, CEO
28
J.C. Penney Co. 7900 Day Drive, Parma 44129 (440) 845-4802/www.jcpenney.com
2,323
2,274
2.2%
NA
Department store
Travis Julian district manager
28
Sterling Jewelers Inc. 375 Ghent Road, Akron 44333 (330) 668-5000/www.sterlingjewelers.com
2,323
2,193
5.9%
3,157
Retail jewelry
Mark Light president, CEO
30
The Babcock & Wilcox Co. 20 S. Van Buren Ave. and 91 Stirling Ave., Barberton 44203 (330) 753-4511/www.babcock.com
2,227
2,295
(3.0%)
2,558
Design, engineering, manufacturing and L. Killion, president, COO, construction services for nuclear, renewable, Richard Babcock & Wilcox Power fossil power, industrial and government Generation Group Inc. customers
31
Cuyahoga Community College 700 Carnegie Ave., Cleveland 44115 (800) 954-8742/www.tri-c.edu
2,165
2,031
6.6%
2,165
Higher education
Jerry Sue Thornton president
20100726-NEWS--19-NAT-CCI-CL_--
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JJULY 26-AUGUST 1, 2010
Rank
Company Address Phone/Web site
32
CRAINâ&#x20AC;&#x2122;S CLEVELAND BUSINESS
WWW.CRAINSCLEVELAND.COM
Full-time equivalent local employees
Total number of employees in Ohio Type of business
19
Top local executive Title
6/30/2010
6/30/2009
% change
Greater Cleveland Regional Transit Authority 1240 W. Sixth St., Cleveland 44113 (216) 566-5100/www.riderta.com
2,146
2,502
(14.2%)
2,146
Public transportation
Joseph A. Calabrese CEO, general manager, secretary/treasurer
33
Lake Health 7590 Auburn Road, Concord Township 44077 (440) 354-2400/www.lakehealth.org
2,109
2,025
4.1%
2,897
Hospital
Cynthia Moore-Hardy president, CEO
34
Parker Hannifin Corp. 6035 Parkland Blvd., Cleveland 44124 (216) 896-3000/www.parker.com
2,100
2,085
0.7%
3,300
Fluid power systems, electromechanical controls
Donald E. Washkewicz chairman, president, CEO
35
American Greetings Corp. One American Road, Cleveland 44144 (216) 252-7300/www.americangreetings.com
2,098
2,200
(4.6%)
2,359
Greeting cards; character licensing
Zev Weiss CEO
36
Continental Airlines 5300 Riverside Drive, Cleveland 44135 (216) 501-5170/www.continental.com
2,086
1,947
7.1%
NA
Airline
Robbie Anderson staff vice president, Cleveland
37
The Lubrizol Corp. 29400 Lakeland Blvd., Wickliffe 44092 (440) 943-4200/www.lubrizol.com
2,072
2,022
2.5%
2,072
Specialty chemical company
James L. Hambrick chairman, president, CEO
38
YRC Worldwide Inc. 10990 Roe Ave., Overland Park 66211 (913) 696-6100/www.yrcw.com
2,066
2,514
(17.8%)
3,539
Transportation service provider
NA
39
Lorain County 226 Middle Ave., Elyria 44035 (440) 329-5000/www.loraincounty.us
1,979
2,152
(8.0%)
1,979
County government
Board of Commissioners
40
Medical Mutual of Ohio 2060 E. Ninth St., Cleveland 44115 (216) 687-7000/www.medmutual.com
1,948
1,989
(2.1%)
2,522
Ohio-based mutual company providing health insurance
Richard A. Chiricosta president, CEO
41
City of Akron 166 S. High St., Akron 44308 (330) 375-2330/www.ci.akron.oh.us
1,931
2,154
(10.4%)
1,931
Municipal government
Donald L. Plusquellic mayor
42
InfoCision Management Corp. 325 Springside Drive, Akron 44333 (330) 668-1400/www.infocision.com
1,875
1,730
8.4%
3,019
Inbound and outbound call center provider
Carl Albright president, CEO
43
Mercy Medical Center 1320 Mercy Drive N.W., Canton 44708 (330) 489-1000/www.cantonmercy.org
1,850
1,865
(0.8%)
1,850
Health care provider
Thomas E. Cecconi president, CEO
44
Diebold Inc. 5995 Mayfair Road, North Canton 44720 (330) 490-4000/www.diebold.com
1,826
2,055
(11.1%)
1,957
Integrated self-service delivery systems and services
Thomas W. Swidarski president, CEO
45
Rockwell Automation Inc. 1 Allen-Bradley Drive, Mayfield Heights 44124 (440) 646-5000/www.rockwellautomation.com
1,794
1,794
0.0%
1,898
Global provider of industrial automation control and information solutions
Steven A. Eisenbrown sr. vp, architecture and software
46
Bridgestone Americas Inc. 1200 Firestone Parkway, Akron 44317 (330) 379-7000/www.bridgestoneamericas.com
1,715
1,413
21.4%
1,935
Tire manufacturer
Hank Hara, chief technology officer and vp, Bridgestone Americas Tire Operations
46
Eaton Corp. 1111 Superior Ave., Cleveland 44114 (216) 523-5000/www.eaton.com
1,715
1,727
(0.7%)
2,971
Electrical, hydraulic, aerospace, truck and automotive products
Alexander M. Cutler chairman, president, CEO
48
Cleveland State University 2121 Euclid Ave., Cleveland 44115 (216) 687-2000/www.csuohio.edu
1,681
1,618
3.9%
2,281
Higher education
Ronald Berkman president
continued on PAGE 20 â&#x17E;¤
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20100726-NEWS--20-NAT-CCI-CL_--
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CRAINâ&#x20AC;&#x2122;S CLEVELAND BUSINESS
WWW.CRAINSCLEVELAND.COM
JULY 26-AUGUST 1, 2010
100 LARGEST NORTHEAST OHIO EMPLOYERS RANKED BY FULL-TIME EQUIVALENT LOCAL EMPLOYEES(1)
Rank
Company Address Phone/Web site
49
Full-time equivalent local employees
Total number of employees in Ohio Type of business
Top local executive Title
6/30/2010
6/30/2009
% change
Lake County 105 Main St., Painesville 44077 (440) 350-2745/www.lakecountyohio.org
1,635
1,671
(2.2%)
1,635
County government
50
Nestle Prepared Foods Co. 30003 Bainbridge Road, Solon 44139 (440) 349-5757/www.nestleusa.com
1,626
1,643
(1.0%)
1,626
Manufacturer of Stouffer's and Lean Cuisine Bob Leonidas prepared foods, Buitoni pasta and sauce, Hot president, CEO, Pockets and Lean Pockets Nestle Prepared Foods Co.
51
Allstate Insurance Co. 75 Executive Parkway, Hudson 44237 (330) 656-6000/www.allstate.com
1,621
1,648
(1.6%)
1,709
Financial services and insurance
Rashmi Tripathi assistant vice president
52
ArcelorMittal 3060 Eggers Ave., Cleveland 44105 (216) 429-6000/www.arcelormittal.com
1,612
673
139.5%
2,397
Steel manufacturer
Terry Fedor general manager, ArcelorMittal Cleveland
52
Community Health Partners 3700 Kolbe Road, Lorain 44053 (440) 960-4000/www.community-health-partners.com
1,612
1,527
5.6%
1,612
Health care provider
Edwin Oley president
54
Discount Drug Mart Inc. 211 Commerce Drive, Medina 44256 (330) 725-2340/www.discount-drugmart.com
1,598
1,525
4.8%
3,215
Retail drugstore
Parviz Boodjeh chairman
55
Avery Dennison 8080 Norton Parkway, Mentor 44060 (440) 534-6000/www.averydennison.com
1,512
1,437
5.2%
2,154
Manufacturer of pressure sensitive paper, film and foil, graphic materials and specialty tapes
Donald Nolan group vice president, Roll Materials Worldwide
56
Parma Community General Hospital 7007 Powers Blvd., Parma 44129 (440) 743-3000/www.parmahospital.org
1,491
1,481
0.7%
NA
Hospital
Terrence G. Deis president, CEO
57
Dominion East Ohio 1201 E. 55th St., Cleveland 44103 (800) 362-7557/www.dom.com
1,480
1,497
(1.1%)
1,579
Natural gas distribution
Anne E. Bomar senior vice president and general manager
58
Kaiser Permanente of Ohio 1001 Lakeside Ave., Suite 1200, Cleveland 44114 (800) 524-7371/www.kp.org
1,465
1,600
(8.4%)
1,752
Health care provider and insurance company
Patricia D. Kennedy-Scott regional president
59
Jo-Ann Stores Inc. 5555 Darrow Road, Hudson 44236 (330) 656-2600/www.joann.com
1,437
1,385
3.7%
1,900
Fabric and craft retailer
Darrell Webb chairman, CEO
60
Fred W. Albrecht Grocery Co. 2700 Gilchrist Road, Akron 44305 (330) 733-2263/www.acmestores.com
1,435
1,667
(13.9%)
1,964
Retail grocery and pharmacy stores
Steve Albrecht president
61
Westfield Group One Park Circle, Westfield Center 44251 (330) 887-0101/www.westfieldgrp.com
1,414
1,461
(3.2%)
1,580
Insurance, banking and related financial services
Robert J. Joyce chairman, CEO, Westfield Group Leader
62
EMH Regional Healthcare System 630 E. River St., Elyria 44035 (440) 329-7500/www.emh-healthcare.org
1,389
1,337
3.9%
1,337
Health care provider
Donald Sheldon, MD president, CEO
63
Scott Fetzer Co. 28800 Clemens Road, Westlake 44145 (440) 892-3000/www.berkshirehathaway.com
1,386
1,220
13.6%
1,626
Diversified manufacturer
Kenneth J. Semelsberger chairman
64
Republic Engineered Products Inc. 2633 Eighth St., NE, Canton 44704 (800) 232-7157/www.republicengineered.com
1,310
1,004
30.5%
1,310
Manufacturer of special bar quality steel
Jaime Vigil president, CEO
65
Ben Venue Laboratories Inc. 300 Northfield Road, Bedford 44146 (440) 232-3320/www.benvenue.com
1,297
1,206
7.5%
1,301
Manufacturer of sterile injectable pharmaceutical products
Thomas J. Murphy president, CEO
65
Invacare Corp. One Invacare Way, Elyria 44035 (440) 329-6000/www.invacare.com
1,297
1,297
0.0%
1,290
Home health care equipment
A. Malachi Mixon III chairman, CEO
67
Philips Healthcare 595 Miner Road, Highland Heights 44143 (440) 483-3000/www.philips.com/healthcare
1,250
1,000
25.0%
1,250
Manufacturer of medical diagnostic equipment
James Fulton senior vice president, Imaging Systems
68
Alcoa 1600 Harvard Ave., Cleveland 44105 (216) 641-3600/www.alcoa.com
1,245
1,270
(2.0%)
1,245
F. Christopher, exec. vp, Aluminum forgings for aerospace, automotive William Alcoa; pres., Alcoa Engineered and commercial transportation markets Products & Solutions
69
The J.M. Smucker Co.(2) 1 Strawberry Lane, Orrville 44667 330-682-3000/www.smuckers.com
1,200
NA
NA
NA
69
JPMorgan Chase & Co. 1300 E. Ninth St., Cleveland 44114 (877) 226-5663/www.chase.com
1,200
1,400
(14.3%)
71
Cuyahoga County Board of Developmental Disabilities 1275 Lakeside Ave. East, Cleveland 44114 (216) 241-8230/www.cuyahogabdd.org
1,177
1,231
72
Ohio Savings Bank, A Division of New York Community Bank 1801 E. Ninth St., Cleveland 44114 (216) 588-4100/www.amtrust.com
1,106
72
Robinson Memorial Hospital 6847 N. Chestnut St., Ravenna 44266 (330) 297-0811/www.robinsonmemorial.org
Board of Commissioners
Fruit spreads and toppings
Timothy P. Smucker, chmn., coCEO; Richard K. Smucker, exec. chmn., president, co-CEO
19,500
Financial services
James M. Malz president, Northeast Ohio market
(4.4%)
1,231
Education, vocational training and residential services for children and adults with MR/DD
Terrence M. Ryan superintendent
1,401
(21.1%)
1,134
Financial institution/bank
Robert J. Tolomer executive vice president, officerin-charge
1,106
1,137
(2.7%)
1,532
150-staffed-bed hospital
Stephen Colecchi president, CEO
74
Delphi Packard Electrical/Electronic Architecture 5725 Delphi Drive, Troy 48098 (248) 813-2000/www.delphi.com
1,100
NA
NA
1,100
Global supplier of electronics and technologies for automotive, commercial vehicle and other market segments
James A. Spencer, vp and pres., Delphi Packard Electrical, Electronic Architecture and president, Delphi Latin America
75
Geauga County 470 Center St., Chardon 44024 (440) 285-2222/www.co.geauga.oh.us
1,085
1,080
0.5%
1,080
County government
Board of Commissioners
76
Oberlin College 101 N. Professor St., Oberlin 44074 (440) 775-8400/www.oberlin.edu
1,082
1,079
0.3%
1,181
Higher education
Marvin Krislov president
77
Medina County 144 N. Broadway, Medina 44256 (330) 723-3641/www.co.medina.oh.us
1,064
1,090
(2.4%)
1,064
Political subdivision
Board of Commissioners
78
Pepsi Beverages Co. 1999 Enterprise Parkway, Twinsburg 44087 (330) 963-5300/www.pepsiamericas.com
1,055
1,054
0.1%
2,200
Manufacturer, seller and distributor of PepsiCo beverages
Dan Hungerman vice president, general manager, Ohio Market Unit
79
Portage County 449 S. Meridian St., Ravenna 44266 (330) 297-3600/www.co.portage.oh.us
1,052
1,170
(10.1%)
1,052
County government
Board of Commissioners
20100726-NEWS--21-NAT-CCI-CL_--
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Page 1
JULY 26-AUGUST 1, 2010
Rank
Company Address Phone/Web site
80
CRAIN’S CLEVELAND BUSINESS
WWW.CRAINSCLEVELAND.COM
Full-time equivalent local employees
Total number of employees in Ohio Type of business
21
Top local executive Title
6/30/2010
6/30/2009
% change
Mentor Public Schools 6451 Center St., Mentor 44060 (440) 255-4444/www.mentorschools.net
1,015
1,021
(0.6%)
1,015
Public school district
Jacqueline A. Hoynes superintendent
81
St. Vincent Charity Medical Center 2351 E. 22nd St., Cleveland 44115 (216) 861-6200/www.stvincentcharity.com
1,003
1,073
(6.5%)
1,245
Health care provider
Sr. Judith Ann Karam president, CEO
82
GE Lighting (unit of GE Appliances & Lighting) 1975 Noble Road, East Cleveland 44112 (216) 266-2222/www.gelighting.com
1,000
895
11.7%
2,050
A global manufacturer and marketer of lighting products
Michael B. Petras Jr. president, CEO, GE Lighting
83
Huntington National Bank 917 Euclid Ave., Cleveland 44115 (800) 480-2265/www.huntington.com
980
772
26.9%
8,219
Financial services
Daniel P. Walsh Jr. president, Greater Cleveland region
84
Ernst & Young LLP 925 Euclid Ave., Suite 1300, Cleveland 44115 (216) 861-5000/www.ey.com
977
1,030
(5.1%)
1,469
Professional services firm
Donald T. Misheff Northeast Ohio managing partner
85
Willoughby-Eastlake City Schools 37047 Ridge Road, Willoughby 44094 (440) 956-5000/www.weschools.org
925
950
(2.6%)
1,100
Public school district
Keith Miller superintendent
86
Elyria Schools 42101 Griswold Road, Elyria 44035 (440) 284-8000/www.elyriaschools.org
907
800
13.4%
907
Public school district
Paul M. Rigda superintendent
87
RPM International Inc. P.O. Box 777, Medina 44258 (330) 273-5090/www.rpminc.com
901
900
0.1%
1,069
Specialty coatings for industrial and consumer markets
Frank C. Sullivan chairman, CEO
88
Cleveland Heights-University Heights City School District 2155 Miramar Blvd., University Heights 44118 (216) 371-7171/www.chuh.org
899
934
(3.7%)
1,063
Public school district
Douglas G. Heuer superintendent
89
Goodrich Landing Gear 8000 Marble Ave., Cleveland 44105 (216) 341-1700/www.goodrich.com
890
678
31.3%
1,605
Aerospace technology systems
Mike Brand president
90
Menorah Park Center for Senior Living 27100 Cedar Road, Beachwood 44122 (216) 831-6500/www.menorahpark.org
876
856
2.3%
1,143
Full continuum of care for seniors including residential and community services
Steven Raichilson executive director
91
Federal Reserve Bank of Cleveland 1455 E. Sixth St., Cleveland 44114 (216) 579-2000/www.clevelandfed.org
873
863
1.2%
1,005
U.S. Central Bank
Sandra Pianalto president, CEO
92
Myers Industries Inc. 1293 S. Main St., Akron 44301 (330) 253-5592/www.myersindustries.com
863
857
0.7%
933
Polymer and metal products; equipment for tire service
John C. Orr president, CEO
93
Saint Gobain Corp. 750 E. Swedesford Road, Valley Forge 19482 (610) 341-7000/www.saint-gobain-corporation.com
839
950
(11.7%)
893
Construction products, high-performance materials, glass containers
Thomas Kinisky president
94
Forest City Enterprises Inc. 50 Public Square, Suite 1100, Cleveland 44113 (216) 621-6060/www.fceinc.com
803
819
(2.0%)
945
Owner and developer of real estate
Charles A. Ratner president, CEO
95
Hyland Software Inc. 28500 Clemens Road, Westlake 44145 (440) 788-5000/www.hyland.com
802
728
10.2%
802
Independent software vendor; developer of the OnBase enterprise content management software suite
A.J. Hyland president, CEO
96
Luk USA LLC 3401 Old Airport Road, Wooster 44691 (330) 264-4383/www.lukusa.com
800
800
0.0%
800
Clutch systems and torque converters for the Marc McGrath automotive industry president
96
Severstal Warren Inc. 999 Pine Ave. SE, Warren 44483 (330) 841-8218/www.severstalna.com
800
100
700.0%
800
Produces custom steels including high carbon and alloy flat rolled products
Wilbur Winland vice president, general manager
98
Edgepark Medical Supplies 1810 Summit Commerce Park, Twinsburg 44087 (330) 963-6996/www.edgepark.com
797
770
3.5%
797
Mail order provider of specialty medical supplies
Ron M. Harrington president, CEO
99
Steris Corp. 5960 Heisley Road, Mentor 44060 (440) 354-2600/www.steris.com
787
865
(9.0%)
856
Maker of sterile processing and infection prevention systems
Walter M. Rosebrough Jr. president, CEO
Shaker Heights City School District 15600 Parkland Drive, Shaker Heights 44120 (216) 295-1400/www.shaker.org
775
853
(9.1%)
1,298
Public school district
Mark Freeman superintendent
100
Source: Information is supplied by the companies unless footnoted. Crain's Cleveland Business does not independently verify the information and there is no guarantee these listings are complete or accurate. We welcome all responses to our lists and will include omitted information or clarifications in coming issues. Individual lists and The Book of Lists are available to purchase at www.crainscleveland.com. (1) Employees working in Ashland, Ashtabula, Cuyahoga, Erie, Geauga, Huron, Lake, Lorain, Mahoning, Medina, Portage, Stark, Summit, Trumbull and Wayne counties. Number of employees in Ohio may include full-time and part-time employees, not FTEs. (2) Employee number is from The Daily Record, Oct. 23, 2009.
Steris: Competitors not shy about plans continued from PAGE 1
of its customers in April, when the agency approved the System 1E. The product is meant to replace the System 1, which had generated 10% of the company’s revenue and traditionally has been one of its more profitable segments. Steris made changes to improve the processor, most notably adding features to improve the purity of the rinse water used to wash off the chemicals that clean devices in the machine. Even so, Steris faces challenges, said Dan Owczarski, senior equity analyst for Avondale Partners LLC in Nashville. Mr. Owczarski said he talked to officials at “dozens” of hospitals, some planning to go with Steris’ System 1E, some leaning toward competing products and many who haven’t decided. The conversations weren’t enough to gauge how many customers Steris might lose, but
they led Mr. Owczarski to believe that the number won’t be trivial. Many hospitals still are loyal to the Steris brand that they’ve known for so long, but others have been rattled by the company’s troubles with the FDA, which said it rejected the System 1 because Steris made changes to the machine without running them past the federal agency.
Opportunity knocks Some hospitals are concerned with the agency’s announcement indicating that equipment removed from the System 1E is not sterile in the technical sense, Mr. Owczarski said. Equipment placed in the processor is sterilized by liquid chemicals, but the rinse water used to remove those chemicals is not officially sterile. The System 1E rinse water should be even cleaner than that of its predecessor, since the new machine
has better filters and uses ultraviolet light to kill microorganisms, Mr. Owczarski said, adding that he felt the original System 1 was safe as it was. Some hospitals want to know that their devices are 100% sterile. “Everybody’s not going to do a one-for-one swap out,” he said. That’s especially true of customers using the System 1 to clean equipment made of metal and other heat-resistant materials. The FDA approved System 1E for use only on flexible endoscopes and other heatsensitive devices. That means 20% of the devices approved for use in the original System 1 cannot be processed in the new machine, said Julie Winter, Steris investor relations manager. It’s too early to say how much success Steris will have keeping customers who use the machine to clean devices in the other 80%, she added. Advanced Sterilization Products
aims to take its fair share. ASP, owned by Johnson & Johnson, has doubled production of its Sterradbrand sterilizers since December, which involved boosting shifts at its plant in Irvine, Calif., said Karen Borg, vice president of worldwide marketing for ASP. The company also has ramped up its marketing, even hosting a series of webinars directly targeting Steris customers. “Pretty much anybody who’s got a Steris, we’ve had a conversation with,” Ms. Borg said. Langford IC Systems Inc. posted on its web site a presentation targeting Steris customers, many of whom are “ticked off,” said CEO Terry Langford. Since the FDA’s announcement, the Tucson, Ariz.-based company has received steady calls from Steris customers wanting to learn more about the processor it aims to release early next year.
Ready and waiting Now, Steris and its competitors have to build enough devices to replace what Steris estimates is 10,000
RESEARCHED BY Deborah W. Hillyer
to 20,000 System 1 machines still in use. Steris expects to be able to build 4,000 to 6,000 System IE machines before its fiscal year ends on March 31. ASP is smaller than Steris but has resources within reach at Johnson & Johnson. Langford IC Systems is smaller still but is working with a manufacturer that should be able to build 2,000 of the company’s machines within a year of the product’s release, and the company also is talking to a possible acquirer, Mr. Langford said. Officials from several of Northeast Ohio’s major hospitals said they are considering the System 1E and other machines. A few, including Marvin Klinker of Summa Health System, mentioned ASP’s Sterrad as an option. Mr. Klinker, system director of surgical services for Summa, said he feels the System 1 is safe. However, the hospital has an obligation to see if competing products are better, he said. So are they? “It depends on what studies you refer to and what circles you talk to,” he said. ■
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Clinic: Affiliations bring benefits to all sides continued from PAGE 1
begins implementing its quality measures and procedures within the hospital program affiliating with the Clinic, he said. “It’s more than a placard on the front door,” Dr. Cacchione said. “We want to make our affiliates look and feel like a small Cleveland Clinic.” Such collaboration can be a boon for both the Clinic and its affiliates, said Thomas Campanella, director of the health care MBA at BaldwinWallace College. “It allows them to leverage the investment at the Cleveland Clinic in people, technology, clinical protocols, management and innovation to benefit health care organi-
improvement, Dr. Cacchione said. “There’s quite a bit of variation of what hospitals need and want,” he said. “Some need to improve quality or possibly help with recruitment of surgeons.” Hospitals that seek to affiliate with the Clinic must undergo a quality assessment, Dr. Cacchione said. The Clinic then considers the potential affiliate’s patient base, processes and needed improvements, and determines what might be an appropriate affiliation for the hospital before branding it a Clinic partner, he said. For those that pass the Clinic’s quality assessment, the Clinic
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– Dr. David Herman, director, Mayo Clinic’s affiliate practice network zations beyond the Cleveland Clinic itself,” he said. “It enhances the Clinic’s reputation even more nationally and internationally and it could potentially lead to referrals
back to the Clinic.” Indeed, Dr. Cacchione said the Clinic’s affiliates contact Clinic surgeons in difficult surgical cases and the Clinic has seen an increase in referrals from North Carolina and South Carolina. Dr. David Herman, director of the Mayo Clinic’s affiliate practice network, said the Mayo Clinic also is continuing to pursue affiliations across the country because it helps many local hospitals offer top-notch care and, if needed, helps patients transfer to a Mayo Clinic location faster. “It allows outlying communities and hospitals to benefit from information and procedures that places like the Mayo Clinic develop,” he said. “Local hospital boards want their communities to benefit from the care of the Mayo Clinic, Cleve-
REAL ESTATE
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“Local hospital boards want their communities to benefit from the care of the Mayo Clinic, Cleveland Clinic or Johns Hopkins. It helps strengthen local caregivers.”
JULY 26-AUGUST 1, 2010
exit 186 off I-90, and has a large highway sign for great exposure & advertising. Minutes from Downtown, east suburbs, Cuyahoga & Lake Counties. PROPERTY DESCRIPTION: 28500 Euclid Ave., Wickliffe, OH. 196 Well Appointed Hotel Rooms (Kings, Queens, and Deluxe Suites), Indoor Swimming Pool, Fitness Center, 6,000 sq. ft. Ballroom/Conference Center, 4-Story Atrium, Restaurant, Bar, Game Room, Updated Lobby with Flat Screen TV and Leather Couch & Chairs. Recent upgrades include New Roof, Roof-Top HVAC Units, New Onity Door Lock System, High Efficiency Boiler, Sprinkler System, Roof-Top Generator, Rebuilt Elevators, T-270 Extended Stay License, Wireless Internet Service, & Digital Cable TV. BUSINESS OPPORTUNITY: Gross Income from 1/1/10 thru 6/30/10 is $465,000. Built-In Seller Financing w/35% cash down, and interest rate as low as 6.5%. Closing in 35 days, free & clear of liens. An opportunity to own a fully operating Hotel at your Price at Auction! There is plenty of opportunity for upside potential w/this terrific property. Opportunity to affiliate with National Hotel Chain. ON-SITE INSPECTIONS: July 22, 29; Aug. 12 & 18 from Noon - 2:30 PM See Web Site at www.chartwellgroup.com
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land Clinic or Johns Hopkins. It helps strengthen local caregivers.” The Clinic is working to become a global brand as competition for a stagnant patient population continues in Northeast Ohio. The global branding effort should bring more money back to Cleveland and enable the health care giant to expand services at home, said Taylor Holliday, a market analyst for HealthLeaders-InterStudy, a Nashville, Tenn.-based firm that analyzes various portions of the health care industry. “Ultimately, Cleveland Clinic’s global aspirations and expansions should be good for Cleveland, spreading its reputation for topquality health care even further while strengthening its premier health organization to the benefit of the local community,” she added. ■
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Crain’s Executive Recruiter Sales Support Assistant Job Responsibilities: • Support event and conference manager with logistics, promotions, event set-up and tear down as needed. • Assist marketing manager with marketing and promotional coordination as well as execution on an as needed basis • Handle all classified ads sales including prospecting, order entry and online additions. • Fulfill Media kits/info requests • Track monthly competitive magazines, compile info on a spreadsheet and distribute. • Phone and Reception back up for Office Manager • Other duties as assigned.
Qualifications: • Associates degree in business, marketing, administrative support or equivalent • 2-4 years of experience in a sales support and administrative capacity • Proficient with MSWord, Excel, PowerPoint and the Internet required • Must be able to multi-task, be detail oriented, meet deadlines, have professional demeanor and previous experience with customer contact required • Proven customer service skills Crain Communications offers a competitive salary, a generous benefits package, profit sharing, and a friendly work environment. This is a great time to join our organization -- a profitable, well established publishing leader. Crain Communications Inc. is a Equal Opportunity Employer
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The Cleveland-Cuyahoga County Port Authority is currently seeking the following: Vice President of Maritime Business Development The Vice President of Maritime Business Development is responsible for directing and administering the maritime programs of the Port, promoting the use of water transportation both internationally and Interlake as the most cost effective, environmentally sound mode of transportation for goods shipment, and insuring that the industries of Northeast Ohio have a competitive advantage through access to the waterborne movement of goods. This position is responsible for overall leadership, design and planning of the current/proposed maritime facilities, and marketing and trade development programs to attract new customers, carriers and cargo shippers to the Port and increase sales of current Port customers.
Director of External Affairs This position will require development, implementation and management of governmental affairs and public relations. Including developing and maintaining strong relationships with federal, state and local elected and appointed officials, staff, trade organizations, local media and all relevant external stakeholder groups. Direct public relations function through the management of outside contractors.
Application Deadline: August 13, 2010 For a complete description of each position, please visit our website at www.portofcleveland.com or Send cover letter and resume to: Cleveland-Cuyahoga County Port Authority 1375 E. Ninth Street – Suite 2300 Cleveland, OH 44114 Email: melisa.freilino@portofcleveland.com
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JULY 26-AUGUST 1, 2010
CRAIN’S CLEVELAND BUSINESS
WWW.CRAINSCLEVELAND.COM
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THEINSIDER
THEWEEK JULY 19 - 25 The big story: The state designated the city of Akron as the Ohio Hub of Innovation and Opportunity. The Akron Biomaterials Commercialization Hub will receive a $250,000 grant from the Ohio Department of Development to create technologies and prototypes in biomaterials for orthopedics and wound healing. In addition, it will work with the city and the Greater Akron Chamber to establish and bring to the area U.S. and international companies that will focus on wound healing and orthopedics. The city of Akron will collaborate with the University Park Alliance to create jobs and support urban development around the hub, which will be located at the Austen BioInnovation Institute.
Strong backing: Spinal implant developer AxioMed Spine Corp. raised $14.5 million, which the Garfield Heights startup will use to advance patient studies and to expand sales in Europe. The money, from both current and existing investors, should allow AxioMed to finish patient enrollment for a U.S. study focused on its Freedom Lumbar Disc implant, which consists of a patented polymer between two metal plates.
Gone too soon: Software entrepreneur John A. Bukovnik Jr. died July 16, after collapsing at his company’s downtown Cleveland headquarters. Mr. Bukovnik, 46, was president and co-founder of Easy2 Technologies Inc., which sells software that allows retailers to create product tutorials and selection tools for online catalogs. He collapsed at about 11 a.m. at the company’s offices while walking between meetings, said co-founder Paul Schutt. A letter posted on the company’s web site describes Mr. Bukovnik as “an innovative leader and an honorable man.”
Cool cash: Private investment firm Key Principal Partners Corp. of Cleveland invested $15 million in Ice River Springs Water Co. of Feversham, Ontario. Ice River Springs provides bottled water from seven manufacturing plants throughout Canada and the United States. Key Principal Partners said its investment will support a capital expenditure program and facility expansion that will allow Ice River to produce recycled PET resin. The resin pellets will be made entirely from post-consumer materials, which Ice River then will use in the production of its own water bottles.
On a roll: Bearings maker Timken Co. agreed to buy a company in Washington state that makes spherical roller bearing steel housed units and elastomeric and steel couplings used in demanding processes such as sawmill and logging operations. Terms of the acquisition of QM Bearings and Power Transmission Inc. of Ferndale, Wash., were not disclosed. Timken said QM Bearings, which was founded in 1951, posted sales of more than $14 million in the past 12 months. This and that: A. Schulman Inc. of Akron named Gustavo Perez as general manager and chief operating officer of the Americas, effective Aug. 1. He will lead the company’s strategic business activities in North America and South America. ... The Nestle Research Center in Switzerland donated $500,000 to the Cleveland Clinic to study how a diet that is high in whole grains affects body Perez composition and metabolism. … Palmer Holland Inc., a North Olmsted specialty chemical distributor, bought Alabama-based Triad Lubrication Components for an undisclosed sum. The acquisition will expand Palmer Holland’s footprint beyond its current market in 26 northern states.
REPORTERS’ NOTEBOOK BEHIND THE NEWS WITH CRAIN’S WRITERS
For high-end table, delivery workers use high-end tablet
software, is developing the software Arhaus will use with the iPad. It also is developing software that will allow customers to regularly receive Arhaus’ digital catalogs on the iPad, the iPhone and the iPod Touch. — Chuck Soder
■ IPads soon will start replacing the BlackBerrys in Arhaus Furniture’s delivery trucks. The Walton Hills-based home furniture dealer plans to buy about 50 of the popular tablet computers this year in an effort to digitize the purchase process and make it easier for customers to alter their orders, according to chief information officer Ron Kerensky. For instance, if a customer receiving a piece of furniture decides that a recliner might look good next to that new sofa, or the lamp he ordered doesn’t look good in his living room, then he can do something about it on the spot. To place an order, customers would call a member of Arhaus’ customer service staff, which would send documents to sign to the iPad. Customers would sign with their fingers. Arhaus also expects to save $100,000 per year in office supplies by using the iPad to process orders that otherwise were recorded on paper. Plus, it won’t hurt to show customers that Arhaus is using the latest technology, Mr. Kerensky said. “It really gives customers something to talk about,” he said. “It gives them that branded experience to let them know that we are a high-end furniture dealer.” Toa Technologies Inc., a Beachwood firm that makes appointment management
■ A community health initiative has made some progress in its quest to control chronic illnesses, but it still has plenty of work to do. Better Health Greater Cleveland, which is a consortium of local health care providers, insurers, foundations and health care organizations, is supported by the Robert Wood Johnson Foundation in Princeton, N.J. Cleveland is one of 17 cities chosen to participate in the foundation’s Aligning Forces for Quality initiative, which aims to improve the health of the community. In its latest annual report, Better Health Greater Cleveland noted that 48% of local diabetes patients got the recommended tests and procedures to help them manage the disease, up from 38% in 2007. Nearly 80% of Cleveland-area heart failure patients were evaluated last year using four common standards of care. Such efforts could improve even more after local hospitals sign up later this summer to participate in national initiatives to reduce re-hospital-
WHAT’S NEW
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Initiative targets Cleveland just for the health of it
Excerpts from blog entries on CrainsCleveland.com.
PRODUCT: Take Along Coloring & ARTivity Books COMPANY: Creativity for Kids, Cleveland Family vacations are great — after you’ve made it through the agony of a long trip with young children. Creativity for Kids is aiming to make things easier for everybody with this new series of four books, with fun themes for kids ages 3 and up. The Take Along Coloring & ARTivity Books include original designs by students from the Cleveland Institute of Art. This collaborative venture, which started in 2009 under the direction of Phyllis Brody, co-founder of Creativity for Kids, blends the company’s product development expertise with the students’ design talents. The books have 20 illustrated pages that are 6 inches by 8 inches, and they come with a set of three Faber-Castell Duo-tip markers that can make fine and broad lines. They are available in the following themes: Way Cool Diva Doodles; Cars, Trucks & More; Travel Doodle & Do; and Princesses A to Z. Each book has a suggested retail price of $7.99. For information, visit www.FaberCastell.com. Send information about new products to managing editor Scott Suttell at ssuttell@crain .com.
In the housing market, 2010 feels a lot like 1945 ■ Ivy Zelman, an independent housing analyst with Zelman & Associates in Cleveland, provided some disturbing numbers to The Wall Street Journal for a July 21 article that looked at the continued woes of the housing market. The government reported last week that builders are on pace to build 454,000 singlefamily homes in 2010, only slightly more than the 442,000 that were started in 2009. Including multi-family housing, the government predicts 549,000 new housing units on the year, a 5% decline from last year. Ms. Zelman told The Journal that more than 50 months since the peak of residential building in 2006, the industry is only building about 30% of the homes it was building during the boom. “That’s about 30 percentage points worse than a similar stage of the recovery after the Savings & Loan crisis of the late 1980s and early 1990s; it’s 30 points worse than the dark days of the oil crisis in the late 1970s,” The Journal reported. According to Ms. Zelman, “We’re stuck somewhere around the lowest level of housing activity since World War II.”
Evergreen Cooperatives plant seed for ‘a more just economy’ ■ The Evergreen Cooperatives of Cleveland were singled out in a July 21 Washington Post op-ed piece by Katrina vanden Heuvel about “transformative ideas” that are taking root nationwide “to build a more just economy.” In a section carrying the subhead “Worker is boss,” she noted that U.S. companies are holding on to $1.8 trillion in cash while
ization of heart failure patients. About 20% of heart failure patients who leave the hospital now return within 30 days. Of the local patients with hypertension, 68% had their blood pressure under control last year. However, Better Health Greater Cleveland still faces challenges. Minorities are less likely than whites to receive the care needed to control their chronic diseases. The lesseducated, uninsured and poor also get less health care than their counterparts. — Shannon Mortland
These names ring a bell for football fans, literally ■ The seven members of the Pro Football Hall of Fame’s class of 2010 will bring the New York Stock Exchange to the end zone next month, ringing the closing bell for the organization. Russ Grimm, Rickey Jackson, Dick LeBeau, Floyd Little, John Randle, Jerry Rice and Emmitt Smith will ring the bell in Canton at 4 p.m. Friday, Aug. 6. The New York Stock Exchange also will recognize PNC Financial Services Group’s successful completion of the National City Bank conversion. PNC now is the fifth-largest bank in the country. The football stars are the first Hall of Fame class to ring the bell, which they will do from the front steps of the building. Other sporting moments that have been commemorated with the closing bell include Super Bowl XLIV and the 2008 Summer Olympic Games in Beijing. — Arielle Kass
holding back on hiring. “Not so at the Evergreen Cooperatives of Cleveland — a community-based, workerowned operations supported by a mix of private and public funds,” Ms. vanden Heuvel wrote. “The Evergreen Cooperative Laundry and Ohio Cooperative Solar are already up and running, and 10 other such enterprises are slated to open in the city this year.” At Evergreen, she noted that workers buy equity in the co-ops through payroll deductions and earn a living wage working at green jobs. The businesses focus on the local market — meeting the procurement needs of “anchor institutions” such as large hospitals and universities. Each co-op pays 10% of its pretax profits back to the umbrella organization to help seed new enterprises. She concluded, “At a time when so many jobs are being slashed or outsourced, the Cleveland cooperatives show us how we can create local jobs and reinvest in our communities.”
If you know the correct ans, text the orchestra ■ The Cleveland Orchestra plays the classics, but it’s quite modern in many aspects. The New York Times included the orchestra in a story on how ensembles nationwide are testing social media technology. The newspaper said the Cleveland Orchestra “experimented last year by holding a trivia contest at an outdoor concert in which audience members texted the answers. No cellphone numbers were kept.” Ana Papakhian, an orchestra spokeswoman, told The Times, “We have thought about text-message marketing, but haven’t got to that point yet.” One reason is the cost of the program, she said, adding, “For Bud Light or the New York Yankees to do it, that’s part of their marketing budget.”
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