Crain's Cleveland Business

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7/23/2010

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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

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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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SPECIAL SECTION

HIGHER EDUCATION Colleges design student centers to include more amenities, technology ■ Page 13 PLUS: COMMUNITY COLLEGES ■ EMPLOYER HELP ■ & MORE

CrainsCleveland.com


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