Crain's Detroit Business, July 18, 2022, issue by Crain's Detroit Business

NEXT ACT: Ex-Atwater owner tries to put ‘local’ and ‘craft’ into energy drinks. PAGE 3

THE CONVERSATION Jerry Millen, the ringmaster of small weed. PAGE 26

CRAINSDETROIT.COM I JULY 18, 2022

Ross lobbied personally for $100M payout

State grant aids innovation center BY DAVID EGGERT AND KIRK PINHO

QUIET STRENGTH IN CHALLENGING TIMES 13 compassionate doctors and leaders take on long COVID, gunshot wounds, opioid deaths, a double lung transplant and more. PAGE 8

LANSING — Billionaire Stephen Ross traveled to Lansing in February to personally lobby key state lawmakers for funding to build the Detroit Center for Innovation, a collaboration among his real estate firm, the Ilitch family’s Olympia Development of Michigan and the University of Michigan. Months later, legislators included $100 million for the project — 40 percent of its estimated cost — in $79 billion in spending now headed to Gov. Gretchen Whitmer for her signature. The outlay was among an unprecedented $1 billion in earmarks,

See ROSS on Page 24

Deliveries not coming through, agencies say Shipments of food and reimbursements from the U.S. Department of Agriculture have been coming up short in Michigan, leaving emergency food assistance groups and schools to make up the difference as demand once again climbs with inflation. It’s an issue impacting states across the country, the USDA said, as it struggles to balance increased costs and buy food from vendors facing raw material, packaging and

NEWSPAPER

bipartisan spending around which there was no public scrutiny because the legislation was released late at night by conference committees and approved by the Legislature within hours.

Food-bank shortages hit as feds fall short BY SHERRI WELCH

Stephen Ross | BLOOMBERG

REAL ESTATE Amid a spate of closings, taking stock of the local retail report card. PAGE 4

labor issues. In Michigan, the ongoing USDA shortages are eating into food and cash reserves at food banks as they work to meet rising demand. Gleaners Community Food Bank of Southeastern Michigan has burned through 2 million pounds of reserved shelf-stable food so far in fiscal 2022. Demand increased 40 percent in February/March and has remained at that level since, President and CEO Gerry Brisson said. See FOOD on Page 25

NEED TO KNOW

ONE-TWO PUNCH

THE WEEK IN REVIEW, WITH AN EYE ON WHAT’S NEXT  PEDIATRIC REHABILITATION COMING TO GRAND RAPIDS THE NEWS: A $60 million pediatric rehabilitation hospital is set to be built in Grand Rapids through a partnership between Mary Free Bed Rehabilitation Hospital and Spectrum Health Helen DeVos Children’s Hospital. The facility will have 24 private inpatient rooms, outpatient treatment areas, specialized service areas, indoor and outdoor recreation spots and a classroom for a certified teacher to help kids with schoolwork. More than 40 specialized rehabilitation programs will be offered. WHY IT MATTERS: It’s Michigan’s first pediatric rehabilitation hospital and one of only nine free-standing children’s rehabilitation hospitals in the country.

 STATES LAUNCH 988 MENTAL HEALTH HOTLINE THE NEWS: Michigan residents seeking help will now be able to text or call 988 to contact trained counselors through the existing National Suicide Prevention Lifeline, a network of more than 180 call centers that has been using a 10-digit, tollfree phone number for years. With the revamp, providers hope to assist people with mental health concerns and emotional distress, in addition to suicide crises, by directing them to resources and connecting them

with response teams and programs. WHY IT MATTERS: Only a few state legislatures have enacted or even introduced legislation to build crisis stabilization systems with physical settings for diagnosis and observation and experienced staff.

 MIDLAND POWER PLANT BEING SOLD THE NEWS: Canadian companies are partnering to buy a Michigan power plant for $894 million. MCV Holding Co., which owns the Midland Cogeneration Venture, is being sold to Edmonton, Alberta-based Capital Power Corp. and joint-venture partner Manulife Investment Management, which is headquartered in Toronto. WHY IT MATTERS: The 1,633-megawatt facility in Midland is the country’s largest natural-gas fired combined electrical and steam generating plant, and it supplies power to Consumers Energy Co.

 DETROIT FINALLY GETS INSOMNIA COOKIES THE NEWS: Insomnia Cookies, popular in college towns for its late-night deliveries of warm baked goods, opened a shop at Wayne State University last week. It offers a wide variety of cookies, naturally, plus brownies, cookie cakes, cookie sandwiches, sundaes and more. The location at 5171 Anthony Wayne Drive is open as late at 1 a.m. on the weekends for pickup or delivery. Insomnia Cookies shops are also found in the college towns of Ann Arbor, East Lansing, Allendale/Grand Rapids, Ypsilanti, Kalamazoo and Mount Pleasant. WHY IT MATTERS: Wayne State students have been waiting for this for years.

 ALCHEMIE EARNS $1 MILLION GRANT

Tornado damages business owned by fire-damaged Holly Hotel  The owner of the fire-damaged historic Holly Hotel in northern Oakland County suffered another blow as a weak tornado damaged his nearby horse farm and wedding venue. The National Weather Service reported that radar indicated an EF-0 tornado touched down for about 9 minutes in the Fenton and Holly areas late Monday, with top winds of 65 mph. The tornado was 40 yards wide at its widest, officials said. George Kutlenois, owner of the Holly Hotel, said his farm, Red Riding Hood Stables, was destroyed. “(The storm) tore out our event tent, smashed our greenhouse and trees (are) down everywhere,” he said. “I’ve gone 44 years without an insurance claim and now have (done) two in one month.” The 57-acre farm is popular for weddings and events, as the property is known for its oak tree grove and working horse barns that date back to 1979. The Holly Hotel was heavily damaged by a fire last month that started nearby in the town’s downtown district. Kutlenois has said he intends to refurbish and reopen the historic dining venue.

THE NEWS: Alchemie Solutions Inc. in Troy was awarded a $1 million Small Business Innovative Research grant as part of the Department of Education’s Institute of Education Sciences, and now aims to bring to market the Kasi Learning System, an artificial intelligence systems for students with visual impairments. WHY IT MATTERS: The federal grant allows the company, founded by a longtime science teacher at Detroit Country Day School, to focus on its retooled business-to-business model, forging partnerships with various education publishers.

A greenhouse at the Red Riding Hood Stables in Holly was crushed by a weak tornado late Monday night. | GEORGE KUTLENOIS

CONGRATULATIONS

LAKESHIA BELL! Crain’s Detroit Business 2022

HEALTHCARE HERO! Your compassion, dedication and commitment to exceeding the expectations and needs of our residents and their families are just a few of the many reasons we’re honored to have you!

Ciena Healthcare Managed Facility hartfordnursingandrehabcenter.com 6700 West Outer Drive, Detroit, MI 48235 P 313.836.1700

2 | CRAIN’S DETROIT BUSINESS | JULY 18, 2022

GOVERNMENT

HEALTH CARE

What voting, abortion proposals would do

‘I THINK WE HAVE A LOT OF WORK TO DO IN HEALTH CARE’

Organizers confident ballot drives have enough signatures BY DAVID EGGERT

LANSING — Organizers of Michigan ballot drives to protect abortion rights and make it easier to vote are confident they have collected more than enough petition signatures to qualify the proposed constitutional amendments for the November ballot. The groups submitted their signatures last Monday — with a record of about 753,000 signatures submitted for the abortion proposal and nearly 670,000 for the voting rights proposal. If the measures are certified to proceed, voters will consider three and potentially four statewide proposals in the fall midterm election. Lawmakers in May put a constitutional amendment to revise term limits on the ballot. A group turned in 405,000 signatures for a law to restrict payday loans and is awaiting a state review on whether 340,000 — the number required for initiated legislation — are valid. A look at the two latest proposals:

Exiting Henry Ford Health CEO reflects on barriers to medical care, leadership and his legacy in Detroit BY DUSTIN WALSH

Wright Lassiter III knows this country’s health care system is broken and he wants legislators, insurers and administrators to know it too. That’s why after six years as the CEO of Henry Ford Health, he’s leaving. Lassiter, 58, planned to retire from the Detroit system in a few years, maintaining a life here in Michigan in the summer and in Arizona during the winter. But a “once in a career” opportunity to helm the nation’s largest nonprofit health system, CommonSpirit Health in Chicago, provides perhaps the biggest megaphone the industry has to offer. “When you are running a $35 billion organization that is the largest Catholic and largest not-for-profit system (in the country), your voice should be amplified more than others,” Lassiter said as he sat cross-legged in a media room at Henry Ford headquarters.

NIC ANTAYA FOR CRAIN’S DETROIT BUSINESS

President/ CEO of Henry Ford Health System Wright L. Lassiter III.

See LASSITER on Page 23

ABORTION The abortion amendment, which abortion rights advocates launched in anticipation that the Roe v. Wade decision could be overturned — which has now happened — will be one of the most closely watched ballot initiatives in the country. It would protect the right to abortion and other reproductive decisions in the state Constitution, negating a near-total ban that remains on the books. A judge in May blocked enforcement of the 1931 law, which originated with an 1846 ban. Republican legislators, anti-abortion prosecutors and others are appealing the decision. See PROPOSALS on Page 23

FOOD & DRINK

Ex-Atwater owner aims to make local craft-energy drinks a thing BY NICK MANES

Drawing on more than 20 years of experience amid the craft beer boom, Mark Rieth wants to leverage some of his lessons learned as he eyes his second act. Rieth was part of an investor group that acquired Detroit-based Atwater Brewery in 2002, and three years later, he bought the craft brewing company out completely. Rieth sold Atwater to a division of Molson Coors, the nation’s largest brewer, in early 2020 for an undisclosed sum. Rieth left the acquired brewery at the end of 2021, citing it as “the right time to transition,” but is looking to get back into the beverage game. Just not in beer — at least not the kind with alcohol. The entrepreneur has rolled out Fül Beverages LLC (pronounced

“fuel”), which will bring new energy-style drinks to Michigan retailers, as well as non-alcoholic beers. The idea, Rieth told Crain’s in an interview last week, is to tap into some of what made brands like Atwater unique in the early days of the craft beer boom, where small local players were able to stand out. “We consider this a craft energy drink, and local,” Rieth said of the nascent company’s products. “So you go into a store and you want to buy local, we all know where that is, where that has been, where it is today, and it’s not going anywhere. So what we want to do is kind of connect the dots and … you go into a store (and) don’t have a local energy type drink to buy. So why not buy a Detroit, Michigan-based company that is supplying that product.” Fül Beverages’ energy drinks come in a variety of flavors. | FÜL BEVERAGES

Mark Rieth

See DRINKS on Page 22 JULY 18, 2022 | CRAIN’S DETROIT BUSINESS | 3

REAL ESTATE INSIDER A F e e - O n l y We a l t h M a n a g e m e n t G r o u p

Michigan’s #1 Financial Advisor by both Barron’s* and Forbes** Charles C. Zhang CFP®, MBA, MSFS, ChFC, CLU Founder and President

Charles is the highest ranked Fee-Only Advisor on Forbes’ list of America’s Top Wealth Advisors**

www.zhangfinancial.com 101 West Big Beaver Road, 14th Floor Troy, MI 48084 (248) 687-1258 Minimum Investment Requirement: $1,000,000 in Michigan $2,000,000 outside of Michigan. Assets under custody of LPL Financial, TD Ameritrade, and Charles Schwab *As reported in Barron’s March 12, 2022. Rankings based on assets under management, revenue generated for the advisors’ firms, quality of practices, and other factors. **As reported in Forbes April 7, 2022 and August 16, 2021. The rankings, developed by Shook Research, are based on in-person and telephone due diligence meetings and a ranking algorithm for advisors who have a minimum of seven years of experience. Other factors include client retention, industry experience, compliance records, firm nominations, assets under management, revenue generated for their firms, and other factors. See zhangfinancial.com/disclosure for full ranking criteria.

YOU MADE NEWS IN CRAIN’S Share your success with digital reprints, keepsakes and more! To learn about commemorative options, contact:

Laura Picariello lpicariello@crain.com (732) 723-0569

4 | CRAIN’S DETROIT BUSINESS | JULY 18, 2022

CVS Pharmacy Inc. saw by far the most closures in the first half of the year, with 300 of its 9,939 locations announced, according to data from Coresight Research. | COSTAR GROUP INC.

Here’s a retail report card as stores come and go in metro Detroit Metro Detroit has broken even the first half of the year in terms of large retail openings. According to data from Coresight Research Kirk Inc., a New York PINHO City-based advisory and research firm focusing on retail and technology, there were 25 major retail store openings in the Detroit-Warren-Livonia Metropolitan Statistical Area between Jan. 1 and June 30. However, there were also 25 store closings during that same time. But hey, it’s better than the same period last year, during which there were 13 openings and 17 closures. To be clear, this data is not all-encompassing. Coresight tracks things like publicly traded retailers but also some that are private equity-owned. But it does give a snapshot of where things stand. In the first half of the year, locations including discount stores (six), clothing stores (six) and drugstores (five) had the most openings in the region, Coresight says. Those categories were also the most likely to close, however. There were 14 drugstore and pharmacy closures, plus three discount store closures and three clothing store closures. In Detroit specifically, there has been a fair amount of shakeup in the retail landscape, with stores includ-

ing Under Armour, Le Labo, John Varvatos, Madewell, Détroit is the New Black and others closing. Downtown also has a Gucci store and a Savage X Fenty shop coming in. Nationwide, there were 1,766 announced store closures resulting in about 29.1 million square feet of vacating retail space and 4,283 announced store openings totaling about 73.2 million square feet, according to Coresight. That compares with 4,554 closures during a comparable period last year and 4,130 openings. CVS Pharmacy Inc. saw by far the most closures, with 300 of its 9,939 locations shuttering; however, that represents only about 3 percent of its store base. Companies including Sears (closing 101 of its 325 stores, or 31 percent) and Amazon.com Inc.’s Amazon 4-star and Amazon Books (closing 57 of 107 stores, or 53 percent) suffered far more on a proportional basis. According to CoStar Group Inc., a Washington, D.C.-based real estate information service, the metro Detroit retail market has about 259.6 million square feet and a vacancy rate of 5.1 percent with rents at $17.82 per square foot per year.

Speaking of Sears Last week I told you about the former Sears store at Macomb Mall in Roseville going up for sale as its owner, Seritage Growth Properties,

looked to pay down a $1.44 billion debt to Warren Buffett. As it turns out, Seritage — the New York City-based real estate spinoff of Hoffman Estates, Ill.-based department store Sears, Roebuck and Co. — could end up being no more, liquidating all of its properties, including five in Michigan. The Seritage board recommended that shareholders approve at its annual meeting such a plan; the net proceeds would be distributed to shareholders and the company would be dissolved. Real estate industry publication The Real Deal reported earlier this month that the move requires a two-thirds approval from company shareholders and that it’s already about halfway there to getting the support it needs. The five properties in Michigan are in Ann Arbor at Briarwood Mall; Manistee; Sault Ste. Marie; Ypsilanti at the Washtenaw Shopping Center; and the Roseville property at Gratiot and Masonic. Berkshire Hathaway lent $1.6 billion to Seritage, which said at the beginning of the year it made a voluntary $160 million pre-payment, leaving $1.44 billion remaining. The loan matures July 31, 2023, although if Seritage can reduce the principal to $800 million that maturity date can be extended for two years to July 31, 2025, giving Seritage some breathing room. Contact: kpinho@crain.com; (313) 446-0412; @kirkpinhoCDB

PEOPLE

Huntington Bank executive Sandy Pierce to chair Detroit Economic Club BY NICK MANES

Huntington Bank executive Sandy Pierce will be the next chair of the Detroit Economic Club. Pierce, a senior executive vice president and chair of Huntington’s Michigan operations, will succeed Gerry Anderson, the outgoing executive chairman of DTE Energy Co. who had chaired the Detroit Economic Club since 2017. “What I admire most about the De-

troit Economic Club is its focus on making southeast Michigan an even better place to live and do business for everyone,” Pierce said in a statement. “The orgaPierce nization brings together leaders passionate about supporting the economic prosperity

of our great community and ensuring we’re competitive nationally and globally. I look forward to helping it continue this important and meaningful work.” In addition to her duties at Huntington Bank, which has $176 billion in assets, Pierce — a Detroit native — is chair of the Henry Ford Health Foundation board of trustees.” Contact: nmanes@crain.com; (313) 446-1626; @nickrmanes

CELEBRATING 25 YEARS

THANK YOU TO OUR *

SPONSORS! JVS Human Services and Kadima Mental Health Services have joined forces to become Gesher

Human Services. We are extremely excited to continue helping people reach their goals under this new brand, and are endlessly grateful for the support of our Strictly Business sponsors.

* *

COMMENTARY

Federal change would worsen state’s talent crisis RICH PEDRONCELLI/ASSOCIATED PRESS

BY RYAN HUNDT

Time to put the birth control pill over the counter

sliver of good news could be on the horizon for women’s reproductive health amid the chaotic post-Roe landscape. A French division of Perrigo Co., the West Michigan-based pharmaceutical giant, applied Monday to be first drugmaker to sell its birth control pill over the counter in the United States. It’s time. It’s actually well beyond time. The Supreme Court’s overturning of Roe v. Wade last month only adds urgency. If approved by federal officials, an over-thecounter pill would be a simple, seismic and long-overdue way to reduce unwanted pregnancies as access to abortion narrows dramatically across the country. It also would make more easily available a safe, effective drug that millions of women have used for decades not just for birth control, but a host of other health conditions. The application from HRA Pharma, which is owned by Allegan County-based Perrigo, puts the heat on the federal Food and Drug Administration during a time of intense political discord over abortion. But efforts to move the pill over the counter are not new, and the company says its application was not related to the Roe decision. Its application includes years of research arguing that women can safely screen themselves for health risks and use the pill effectively, according to The Associated Press. MILLIONS OF HRA spent seven WOMEN HAVE years conducting the FDA-required studies, TAKEN including a trial that HORMONAL followed 1,000 women BIRTH CONTROL taking its pill for six months, AP reported. SAFELY FOR The FDA already has made many previMORE THAN A ously prescription-onHALF-CENTURY. ly drugs available over the counter after due diligence, including those for heartburn, pain relief and allergies. Millions of women have taken hormonal birth control safely for more than a half-century. The risks — mostly for blood clots, especially among smokers — are well-known. Modern formulations of the pill, with lower doses of estrogen, have only improved their safety over the years. HRA’s version, according

Kelley

ROOT

Executive Editor to The New York Times, is a so-called “minipill” that uses progestin only, which is seen as even safer. Medical groups including the American Medical Association, American College of Obstetricians and Gynecologists, and the American Academy of Family Physicians have endorsed the call for over-the-counter pills. And no, I’m not a doctor. But it’s time the FDA gave women credit for having the ability to do the same informed research that now allows them to pick up drugs like Prilosec, MiraLax and Aleve on the shelves at CVS. If Plan B, the morning-after pill intended to prevent conception after unprotected sex, can be sold over the counter, so too should the every-morning pill that can prevent the need for Plan B in the first place. It’s a matter of both equity and common sense. About half of all pregnancies in the United States are unplanned, according to the Guttmacher Institute, and access to contraception is especially difficult for those in poor, rural or marginalized communities. A prescription can be an insurmountable barrier for those without insurance, for example, or a trusted relationship with a doctor. To be sure, affordability will still be a concern if the pill goes over the counter and insurers balk at covering it. But that shouldn’t outweigh the benefit of greater accessibility. If the Roe decision has revealed anything, it’s a distressing lack of knowledge about women’s bodies and basic reproductive biology. The misinformation coming out of state legislatures about contraception, miscarriage, and conditions such as ectopic pregnancy show a woeful need for independent, science-based medical guidance. The FDA could play that role. Its decision here could be profound — potentially reducing the need for abortion and giving women greater control over family planning at a time when so many less-informed voices are dominating the debate. It’s time.

hile attending the Mackinac Policy Conference this year, talent and workforce were at the forefront of almost every discussion on the island. More than two years after a global pandemic forced businesses to Ryan Hundt is drastically rethink talent the CEO of the strategies, employers are Michigan running out of creative Works! solutions to address laAssociation. bor shortages. I heard the job creators in our state say over and over they desperately want politicians, government officials, educators and community leaders to focus on crafting relevant solutions to address the growing workforce challenges we face. But there are changes being proposed by federal rule makers that would do the exact opposite. Michigan’s ability to deliver substantive solutions is at serious risk as a result of newly proposed federal regulations that would decimate accessibility and human-power to deliver career support to approximately 675,000 job seekers annually, and to provide recruiting, retention and more talent attraction support to 32,000 businesses each year. The U.S. Department of Labor has proposed a new “rule” — a change in the way programs are currently operated — for the delivery of these essential workforce services under the Wagner-Peyser Act. It wants these services to be provided by state civil service employees as opposed to the current model where local Michigan Works! staff are able to address the needs of companies and job seekers in their own communities. Now is not the time for this nonsense. The unnecessary change would remove Michigan’s flexible authority over its existing

Write us: Crain’s welcomes responses from readers. Letters should be as brief as possible and may be edited for length or clarity. Send letters to Crain’s Detroit Business, 1155 Gratiot Ave, Detroit, MI 48207, or email crainsdetroit@crain.com. Please include your complete name, city from which you are writing and a phone number for fact-checking purposes. 6 | CRAIN’S DETROIT BUSINESS | JULY 18, 2022

workforce model, resulting in the closure of 20 of the 99 American Job Centers statewide and layoffs of more than 220 full-time workforce development professionals, only to be “replaced” by less than 50 percent of the people to attempt to provide services to job seekers and employers. The intention of these rules, according to the USDOL, is to help states be more responsive to infrequent periods of high-volume unemployment claims, similar to what Michigan experienced at the beginning of the pandemic in 2020 — a once-in-a-century public health crisis that fueled a dramatic spike in job losses. And that claim by USDOL is misguided. It ignores that when the Unemployment Insurance Agency was buried underneath an unprecedented number of claims, front-line staff at each of the 16 Michigan Works! agencies provided direct support to UIA right within our offices statewide. Michigan Works! staff worked tirelessly answering over 1.3 million unemployment calls. More than 64,000 desperate and scared people whose unemployment accounts were locked got support and solutions at their local Michigan Works! offices, reTHE CHANGE gaining access to unemployment during WOULD REMOVE one of the most MICHIGAN’S stressful times in our nation’s history. FLEXIBLE All this work was above and beyond AUTHORITY OVER the additional ser- ITS EXISTING vices provided to employers, job seekers, WORKFORCE veterans, refugees MODEL and youth directly through local Michigan Works! offices. But if the Wagner-Peyser Act Staffing rule is put into place, Michigan faces a dramatic reduction of critical services for employers and job seekers alike. See CHANGE on Page 7

Sound off: Crain’s considers longer opinion pieces from guest writers on issues of interest to business readers. Email ideas to Managing Editor Michael Lee at malee@crain.com.

LETTER TO THE EDITOR

Why banning Juul is actually a terrible idea The effect of banning Juul nicotine vaping devices and mandating lower nicotine levels in cigarettes will have exactly the opposite of the intended effect. This is a wonderful example of “Ipcha Mistabra,” the Aramaic term which translates to “On the contrary; the reality appears otherwise.” These Food and Drug Administration initiatives will cause many to return to cigarettes — which are much more hazardous to the smoker and to those who are forced to breath the second hand

smelly smoke. Not to mention the fires caused by burning cigarettes. Lowering the nicotine in cigarettes will cause users to smoke more, ingest more tar and other chemicals, many of which are carcinogens. Research shows that nicotine itself is actually a relatively benign stimulant, similar to caffeine. If the FDA is truly concerned about the health of nicotine users, rather than restrict access to vapes, they should supply Juul type vaping devices to smokers. The FDA should also consider increasing the amount of nicotine in cigarettes so

that users will actually smoke less. As appears to be the case with high THC level marijuana, many users may titrate their cigarette smoking and use less because of the higher level nicotine. Adding to this absurdity, the government’s “harm reduction” programs that are designed to limit the hazards of illicit drug use, actually supply the smoking and injecting devices to use these drugs, albeit safely. The FDA’s plan is worse than the disease. Thomas E. Page Detroit

BLOOMBERG

TO THE EDITOR:

CHANGE

From Page 6

A survey of the 16 Michigan Works! agencies, compiled with state and federal performance data, indicated 88 percent of Michigan Works! agencies would be forced to decrease employer assistance with recruiting and retention services, 100 percent would reduce or eliminate job fairs, and 87 percent would cut support of industry-led collaboratives for businesses seeking talent. Since 2014, local Michigan Works! agencies and the state of Michigan have worked together to invest hundreds of millions of dollars into our businesses through the Going PRO Talent Fund. This partnership would be decimated, with 88 percent of agencies having to reduce their employer outreach and application support efforts, while two agencies would be forced to discontinue Going PRO Talent Fund support altogether. Having worked at the Michigan Economic Development Corp. for more than eight years before joining the Michigan Works! Association, I know how important public-private partnerships are in solving our workforce crisis. The issues posed by these proposed rules already have taken considerable time that should be dedicated to lowering barriers for job seekers, providing adequate funding dollars to offset training costs for employers, and attracting top tech talent to our state. We need to focus on growing the skills of the workforce, attracting the talent our employers need, and helping them find and keep the talent to thrive, not fighting an unnecessary and pointless rule that hurts Michigan and has little to no impact on the majority of other states. The rule isn’t about cost savings — we have one of the lowest cost-per-participant-served ratios in the nation, and we outperform the national median in wages and employment placements. It’s not about efficiency — this will force job seekers to travel farther or to multiple locations for help. And it’s not about capacity — we will have to dramatically reduce services, hours and locations in virtually everything we do.

A PARTNER FOR HEALTH

Wherever you go around Michigan, you’ll find a Wayne State doctor, nurse, pharmacist or care provider nearby. Every day, these Warriors are changing — and saving — lives in hospitals and clinics, and their research continues to improve the quality of life around the world. And, wherever you go around our campus, you’ll find students putting what they learn from experienced faculty into action throughout the city, teaming with experts across the spectrum of care to meet community needs. They go on to serve as health professionals who bring the compassion and expertise they developed in Detroit to people everywhere. We think this approach creates a very healthy partnership with our global community, and develops health care leaders who are Warrior Strong.

MORE ON WJR  Crain’s Executive Editor Kelley Root and Managing Editor Michael Lee talk about the week’s stories every Monday morning at 6:15 a.m. Mondays on WJR 760 AM’s Paul W. Smith Show.

wayne.edu

JULY 18, 2022 | CRAIN’S DETROIT BUSINESS | 7

WHAT DOES HEROISM LOOK LIKE? Sometimes it’s easy to see. Maybe it’s a doctor in a trauma department or a chaplain holding a dying patient’s hand. It might be a clinician working long, late hours exhaustively reviewing medical records to ensure care is getting to those most in need. Or it might look like supersaturated oxygen delivered through a catheter thinner than a human hair. When we asked for examples of health care heroism in action, you shared stories in spades. Our judges selected this year’s Health Care Heroes for their efforts to improve patient care, better their communities and save lives.

NIC ANTAYA/CRAIN’S DETROIT BUSINESS

FOR A LIST OF THIS YEAR’S JUDGES, SEE PAGE 17

WINNER: ADVANCEMENTS IN CARE

Rabbi Elimelech “Michael” Goldberg Founder and Global Director, Kids Kicking Cancer Clinical Assistant Professor of Pediatrics, Wayne State University School of Medicine

“W

ait!” Michael Goldberg yelled to nurses in a New York hospital who were attempting to inject chemotherapy into a young child’s chest port. They were pinning him down as he screamed in fear. His own daughter died only months earlier from cancer and he couldn’t bear to witness the agony. “I had no clue what I was going to say next,” said Goldberg, who now goes by Rabbi G and was a camp counselor at the time. “I asked them to give me five minutes with this child, who looked at me like I was the governor who just stayed his execution. I told him I was a black belt and asked if he’d like to learn karate. He jumped off the table. I told him pain was a message but you didn’t have to listen and showed him a tai chi technique of breathing.” Rabbi G said nurses returned and adminis-

8 | CRAIN’S DETROIT BUSINESS | JULY 18, 2022

tered the needle in the child with not even a whimper. The power of meditative breath sparked the pain management and end of life care professor at Wayne State University to start the therapeutic martial arts nonprofit Kids Kicking Cancer. The nonprofit began in Children’s Hospital of Michigan but has since expanded to 126 facilities in nine countries to teach children to “Breathe in the light and blow out the darkness” in a curriculum for self-regulation and pain management. It employs around 50 with another 300 volunteers. A study by WSU revealed the nonprofit’s therapies have reduced pediatric cancer pain in 85 percent of the children surveyed with an average pain reduction of 40 percent. “It’s relatively inexpensive to integrate the therapies into the minds of children,” Rabbi G said. “Teaching the children to have this control

is really life changing. The ability to self regulate makes chemical changes in the body and brain. The martial arts is the hook, but there is no contact. This is the spiritual part of martial arts.” The group sends coloring books to pediatric cancer wards across the U.S. that asks children to draw their light and their darkness. The children then punch through their darkness, physically and metaphorically. Rabbi G said the nonprofit’s goal is to reach 1 million children worldwide and spread light in those moments of darkness. “The greatest challenge to public health is ambivalence,” he said. “Unless you’re making systemic change in the individuals, you’re not making change in the community, and that’s what we really want to do here. Change the community for the better.” — Dustin Walsh

“TEACHING THE CHILDREN TO HAVE THEIR CONTROL IS REALLY LIFE CHANGING.” — Rabbi Elimelech “Michael” Goldberg

Breakthroughs happen here here.. At Beaumont, we are innovators. Always moving forward and bringing the world’s most advanced treatments to our community. We’re moved by the incredible things that happen here, and inspired by the incredible people who make them happen.

#IncredibleHappensHere

BEAUMONT CONGRATULATES CRAIN’S HEALTH CARE HEROES HONOREES ADVANCEMENTS IN CARE CATEGORY

PHYSICIAN HERO CATEGORY

DR. JAMES RICHARD SPEARS

DR. JOSEPH CHATTAHI

DR. PAUL CHITTICK

Beaumont Hospital, Dearborn

Beaumont Hospital, Royal Oak

Larry Lyons

simple prayer. “Through this holy anointing ...” Larry Lyons has uttered the words, the last rites, to hundreds of people in the past few years. Like Charon on the River Styx, Lyons and his team of chaplains ferry the living into the afterlife, holding each hand as the vitals flatline. The chaplain sang hymns to his own mother as she lay dying of COVID-19 complications at the onset of the pandemic. While some hospital systems offered chaplain services via FaceTime or phone, Lyons’ group worked in the hospital throughout the pandemic, offering spiritual care to anyone who asked from any faith. Lyons calls the job a “privilege” and a “gift” but shaking off the grief of so many, especially those who had no loved ones bedside during pandemic restrictions, and the pleads and wishes of the dying is heavy. The term ‘compassion fatigue’ entered the health care lexicon and staffs’ minds. Compassion fatigue is a condition that causes tiredness, desperation and depression among caregivers after experiencing prolonged, cumulative stress and trauma from caring for patients. Lyons said everyone at the hospital experienced the fatigue and likely post-traumatic stress disorder from the overwhelming grief. “We’re all trying to recover,” Lyons said. “For

10 | CRAIN’S DETROIT BUSINESS | JULY 18, 2022

me, it’s time. Getting some breathing room from the trauma, the crisis.” Lyons and his wife recently took a trip to Cozumel, their first, to be part of the living world. At the hospital, Lyons and the hospital’s director of behavioral medicine Jason Schwartz created an initiative at St. Mary Mercy called Resiliency Rounding to save the saviors. The group rounds with hospital staff and offers them spiritual and mental guidance to maintain as health of a workforce as possible. Lyons will deflect, as any good pastor does, when asking about the role he’s played in not saving lives, but delivering them in peace. “It’s never enough, but this story represents hundreds of people who showed up everyday slugging it out and crying it out to get through the pandemic,” Lyons said. “Grieve and pray. That’s all we do for those security guards rolling body after body down the hallway and for the nurses having panic attacks putWINNER: ALLIED HEALTH ting on their N95s during the second wave or doctors jumping into codes (heart stopped beating) without gowning up. That to me is what this is about; working side-by-side with these people who put their lives on the line and being there for them when we can.” — Dustin Walsh

JOHN SOBCZAK FOR CRAIN’S DETROIT BUSINESS

Free Methodist Elder, Chaplain and Manager of Spiritual Care, Trinity Health St. Mary Mercy Livonia

For 6.5 million people in the U.S. with intellectual or developmental disabilities, oral health care can be inaccessible or overwhelming.

Delta Dental is changing that. Delta Dental is the first dental benefits administrator in the nation to offer a Special Health Care Needs Benefit, which removes multiple barriers to oral health care for people with intellectual or developmental disabilities by covering additional dental visits, treatment delivery modifications and more.

THANK YOU TO ALL THE HEALTHCARE HEROES. We applaud and congratulate Dr. Holli Seabury, executive director of the Delta Dental Foundation, for being named one of Crain’s Detroit Healthcare Heroes. Thank you for leading the charge in advancing oral health equity and making care more accessible for people with disabilities.

Delta Dental of Michigan | www.deltadentalmi.com | www.vibrantcommunities.com

NIC ANTAYA/CRAIN’S DETROIT BUSINESS

WINNER: ADMINISTRATOR/EXECUTIVE

Lakeshia Bell Certified Nursing Home Administrator, Hartford Nursing and Rehabilitation Center, Ciena Healthcare

akeshia Bell makes stars appear. The longtime administrator for Southfield-based Ciena Healthcare spent the last handful of years turning Hartford Nursing and Rehabilitation Center in Detroit from a two star in quality from Centers for Medicare and Medicaid Services to a top-rated five star facility. “It’s about building a caring team of people,” Bell said. “I’m here to put out a vision of greatness and pull those strengths out of people, but they are the ones that make this facility great.” Bell developed a plan by deploying patient and employee satisfaction surveys and giving both a voice. The center’s 140-plus patients now rotate through a program called “Administrator’s tea,” where six residents per month have lunch with Bell to talk and air any grievances. The lunch mimics a restaurant experience with workers acting as servers, Bell said. “It’s the regular lunch they would get normally, but given a five-star treatment,” Bell said. “Patients share their stories. They look forward

12 | CRAIN’S DETROIT BUSINESS | JULY 18, 2022

to it. They get dressed up. It’s just us talking, but it is really about assessing the needs of the patients and making everyone feel important.” She was also able to reduce turnover by creating retention programs, including employee of the month awards and fostering a relationship with the workforce. “We celebrate the small stuff. Most of our employees have never received an award, ever,” Bell said. “I also make sure I send out birthday cards ... in the mail. Some of them have only ever received bills in the mail. If the housekeepers didn’t clean the place, this place wouldn’t work. If the food is awful, then I have patients who lose weight. This works only if everyone is performing and I want to make sure everyone knows that.” When the pandemic hit, it hit nursing homes the worst. Nursing homes accounted for a third of all COVID-19 deaths in the state during the early months of the pandemic. But Hartford was able to keep more patients safe than the average, Bell said. Bell and her administrative team quickly

took online courses to become certified nursing assistants so they could aid employees in feeding and bathing patients. “I would come in and dress in scrubs and give baths,” Bell said. “We were trying to keep everyone sane. People were scared. We had to make sure people ate and were happy. We had to get creative too. We lost some people but we maintained a functioning center and had fewer outbreaks than most.” Bell managed this as her own husband fell violently ill with COVID-19 in the early months. He wasn’t able to move or speak. But the center’s physicians acted as an impromptu telehealth service, helping her care for him at home and maintain her presence at the center in a crisis. “Had I walked away to care for my husband, the staff would have questioned me as leader, forcing them to work during a deadly pandemic while I stayed at home,” Bell said. “I had to be in the trenches with them too.” — Dustin Walsh

“WE CELEBRATE THE SMALL STUFF. I ALSO MAKE SURE I SEND OUT BIRTHDAY CARDS (TO EMPLOYEES) ... IN THE MAIL. SOME OF THEM HAVE ONLY EVER RECEIVED BILLS IN THE MAIL.” — Lakeshia Bell

ONCE A HERO, ALWAYS A HERO. CONGRATULATIONS, DR. JASON PASLEY

Lieutenant Colonel, U.S. Air Force and Trauma Medical Director, McLaren Oakland

2022 HEALTHCARE PHYSICIAN HERO McLaren Oakland is proud to honor Dr. Jason Pasley as a 2022 Healthcare Physician Hero. Dr. Pasley served in the U.S. Air Force as a Lieutenant Colonel for 17 years and is currently the Trauma Medical Director at McLaren Oakland. His quick thinking and ability to provide high-quality, compassionate care in unimaginable circumstances has been instrumental in upholding our mission of Doing What’s Best for our patients, their families and our community. Congratulations, Dr. Pasley and all the recipients and nominees of this prestigious award.

2022_OAKLAND_Crains_HealthcareHeros_Fullpage_Ad.indd 1

7/13/2022 12:24:05 PM

Jason Pasley

WINNER: PHYSICIAN HERO

Trauma Medical Director, McLaren Oakland

NIC ANTAYA/CRAIN’S DETROIT BUSINESS

r. Jason Pasley had no idea when he joined the U.S. Air Force in 2005 that his battlefield experience would be necessary at a suburban Detroit hospital. Pasley earned a degree in osteopathic medicine from Touro University California in Vallejo, Calif. He then joined the Air Force on a health scholarship and completed his residency at Wright State University and Wright-Patterson Air Force Base in Dayton, Ohio. He completed a trauma and surgical critical care fellowship at LA County/USC Hospital in Los Angeles while active duty and then joined R Adams Cowley Shock Trauma Center in Baltimore. As director of education at Shock, Pasley taught military doctors, nurses, techs and medics best practices for battlefield medicine before they deployed overseas. In 2014 and 2017, he was deployed to Bagram Air Base in Afghanistan, serving as “YOU DON’T chief of trauma/critical care and medical director at REALIZE inpatient Craig Joint Theater Hospital. In SOMETHING 2018, Pasley was honorably and LIKE THIS meritoriously discharged as a SHOOTING lieutenant colonel. The 44-year-old was on call on CAN COME November 30, 2021 when a TO YOUR 15-year-old opened fire at Oxford COMMUNITY. High School, killing four students THIS WAS A and injuring seven others, inWAKE-UP cluding a teacher. When McLarCALL.” en Oakland hospital physicians learned they would get patients — Jason Pasley from the Oxford shooting, Pasley drew on the lessons he teaches about mass causalities and what he learned in Afghanistan to help his team provide care to four patients of the seven injured. “You know, I never thought I would have to do that again, being in a suburb in Michigan,” said Pasley, a professor of Surgery at Michigan State University, College of Osteopathic Medicine. “But I’m so happy that I was there. We all did our jobs and worked really well to provide the best care to the patients.” He said his role was as “quarterback,” triaging patients as they arrived and overseeing the work of everyone providing care. “You don’t realize something like this shooting can come to your community. This was a wake-up call to our hospital and the nation,” Pasley said. While the trauma team effectively executed the plan they already had in place, he said they found areas of improvement and have been preparing and educating others in case a tragedy like the Oxford shooting happens again. —Leslie D. Green, Special to Crain's Detroit Business

Paul Chittick Section Head of Infectious Diseases and Internal Medicine, Beaumont Hospital-Royal Oak

ometimes the most heroic acts happen in the day-to-day, by people who make sure a job gets done, and done right. As the COVID-19 pandemic raged on in late 2020, Dr. Paul Chittick, the head of infectious diseases and internal medicine at Beaumont Hospital in Royal Oak, took over the process for administering monoclonal antibody therapies. The therapies served, and continue to serve, to prevent those most at risk for a severe case of the novel coronavirus from getting hospitalized or dying. But the therapies were in short supply and were being prescribed by physicians, many of whom didn’t ensure the patient was even a qualified highrisk patient. Chittick went to Beaumont’s IT department and asked them to modify an existing 14 | CRAIN’S DETROIT BUSINESS | JULY 18, 2022

WINNER: PHYSICIAN HERO tool to sort electronic medical records by the number of risk factors, or co-morbidities. But

even that model isn’t perfect for getting the therapy to those who most need it, as not everyone has a complete medical record. “Some EMRs (electronic medical records) are better than others,” Chittick said. “A primary care doctor has a lot more data than someone at an urgent care center. So the number of risk factors identified may depend on who ordered the therapy.” So Chittick took it upon himself to personally review every single medical record and therapy request to find those most in need of the life-saving drugs. He reviewed more than 5,000 records. “I wanted to do at least the best I could to make this as equitable of a process as possible,” Chittick said. “We didn’t have enough drug availability or appointments to meet the demand, so someone needed to do the work. It’s not hugely complex, but it is a time bur-

den. During light times, going through five or 10 a day was no problem, but it got a lot harder when I had to review 80 or 100 in a day. But with COVID, we all felt hopeless for so long. This made me feel that at least I was doing the best I could to help folks.” Chittick, as part of the review process, also spoke to hundreds of patients about the risks and benefits of monoclonal antibody therapies and to clear up any risk factor ambiguity. “We all in the health care community faced challenges in not having enough resources to work with because of how stressed the system was the last two years,” Chittick said. “Particularly during surges, it was tough to get care to the places we needed to, so we all picked up extra work and did what needed to be done.” — Dustin Walsh

Dr. James Spears and Dr. Joseph Chattahi James Spears, Director, Cardiovascular Research Laboratory; Joseph Chattahi, Director, Structural Heart Disease Program, Beaumont Hospital, Dearborn

octors James Richard Spears and Joseph Chattahi at Beaumont Hospital in Dearborn are pioneering the use of super-saturated oxygen therapy to heal hearts damaged by heart attacks that were once unsurvivable. A therapy called TherOx pumps oxygen into the heart to revive oxygen-deprived muscles. Patients treated with TherOx often have no long-term effects from even a severa heart attack and are able to walk out of the hospital days later. The team believes the therapy is “vastly underutilized” and could help many more heart attack victims lead more normal lives. “This is like providing hyperbaric chamber-level oxygen to the heart,” said Spears. “To see this level of heart recovery is dramatic. Nothing else in 30-plus years of research has worked.” Spears has been studying the use of super-saturated oxygen lab for years, spanning back to his medical school days in 1970. He conducted the preclinical studies that led to eventual FDA approval for using a catheter-based approach to deliver pressurized oxygen to dying hearts. Since Feb. 26, 2020, 30 patients — the most at any hospital in the U.S. — have been treated by interventional cardiologist Chattahi and others at Beaumont using super-saturated oxygen, Spears said. It works like this: When patients have heart attacks, they are treated with an angioplasty to open arteries to relieve blockages. If blood pressure is good, TherOx treatment is administered via catheters thinner than strands of hair that are placed in the arteries. Oxygen is infused in a bubble-free liquid — a process that Spears developed — and delivered into the area of the heart that had been cut off from oxygen during the heart attack. Two recent patients had blood pressure so low an Impella pump was needed to supplement the procedure. Once the tiny pump was implanted to keep blood flowing to the patient’s body, the team opened the blockage and then administered the super-saturated oxygen to revive the dying heart muscle. The combination, thought to be the first in the world, is now being studied as a potential future option, Chattahi said. “At the time of the first patient’s heart attack, his ejection fraction — how we measure the heart’s function — was at 10 percent,” Chattahi said. “He left the hospital with an ejection fraction of 60 percent, which is normal heart function.” When patients suffer a heart attack that results in low ejection fraction, they typically have longterm effects such as shortness of breath, a hard time getting around and an overall diminished quality of life. When TherOx improves their ejection fraction to normal levels, they often experience no long-term effects at all, Chattahi said.

Spears said the future is bright for using the technique he pioneered. Super-saturated oxygen therapy is used at more than 30 medical centers. The doctors hope more cardiologists will adopt the procedure as standard for anyone having a severe heart attack. Beyond heart attacks, Chattahi

said the therapy could be used in any failing organ that needs more oxygen. This includes lungs and brain from strokes. “We’re starting with the heart because the heart attack is the main area of our expertise,” he said. — Jay Greene

WINNER: ADVANCEMENTS IN CARE

A HEALTHIER TAKE ON HEALTH CARE COVERAGE

Confidence comes with every card.®

You want your employees to get the care they need — and so do we. At Blue Cross, we work hard to provide the best coverage in Michigan. With more plan options, more eff icient, higher quality care, and access to no-cost programs such as Coordinated Care Core, a Blue Cross plan adds up to smarter care and better coverage for you and your employees, so you can attract the best talent, and keep it too. Visit bcbsm.com/employers to see what a Blue Cross plan can do for your business. Blue Cross Blue Shield of Michigan and Blue Care Network are nonproﬁt corporations and independent licensees of the Blue Cross and Blue Shield Association.

JULY 18, 2022 | CRAIN’S DETROIT BUSINESS | 15 BCB144885_MichBus_CrainsDetBus_7-18-22_Ins_F1.indd 1

6/30/22 2:34 PM

Diante Davis Mental Health Technician, Team Wellness Center

ertified in Crisis Prevention and Intervention and specially trained in verbal de-escalation, Diante Davis played an integral role at Team Wellness. “A lot of people refer to mental health technicians as security guards. They are much more than that,” said Team Wellness President Michael Hunter. “They don’t carry weapons. The crux of CPI is nonviolence. It takes a special individual to maintain their composure when they are being yelled at, when a person spits on them or is otherwise in a bad way. Diante was a master at that.” Team Wellness annually provides integrated mental health care to about 9,000 patient consumers suffering from chronic or persistent mental illnesses, substance use disorders, developmental disabilities or a combination. The center has three locations in Detroit, along with centers in Southgate, Wyandotte and Westland. Most of the patients live in poverty and are homeless, returning citizens or veterans. “We are tasked with helping our consumers with their behavioral and psychiatric health needs, which has expanded to addressing their physical health needs as well,” Hunter said. “So, we provide primary care, dental, podiatry, optometry — whatever they need. We also address the social determinants of health, such as housing, employment and vocation.” Davis helped coordinate services, such as transportation, within the community for mental health, primary care and dental patients. He also advocated for peace and order like other mental health technicians at Team Wellness.

“They are the ambassadors that encourage people who are acting out — having outbursts, talking to themselves, having auditory or visual hallucinations, incontinence — to be patient. They redirect the consumers to clinical treatment or encourage them to leave the premises as necessary.” While some people in authoritative roles are stoic and unfriendly, Hunter said Davis was the opposite. “He always had a smile. You gravitated to Diante, and he stepped up and helped. He understood this could be him, his brother, mother, or uncle.” On March 30, Diante Davis sought a peaceful outcome but lost his life when someone “who was not friendly” was asked to leave the Mack Avenue and Mt. Elliott campus in Detroit and returned with a weapon. “Diante saw him coming on the property,” Hunter said. “To protect our consumers, he reminded the man from a distance that he couldn’t come back. As the man continued to walk, Diante asked him to remove his hands from his pockets. The man continued walking, pulled out his weapon, and shot Diante and one other.” Davis, 30, lost his life, leaving behind his pregnant partner and two small children. “If it were me, and someone had their hands in their pocket like that, I might have gone into flight mode,” Hunter said. “That’s not what Diante did. He cared about this population.”

WINNER: ALLIED HEALTH

—Leslie D. Green, Special to Crain's Detroit Business

THOUGHT LEADERSHIP FORUM

SPONSORED CONTENT

HEALTH CARE SPONSORED BY KERR RUSSELL

LEASED PROVIDER NETWORKS CAUSE PAYMENT CONFUSION up for the unknown Most physicians and fee discounts. This dentists are familiar approach can be with contracting to be problematic when a part of a third-party contracting with payer’s network. This a network leasing usually means increased company. patient flow (from the patients enrolled in the A network leasing payer’s plan(s)) and entity usually has fee discounts. There contracted with are entities without a Daniel J. Schulte is multiple insurers or heath or dental plan a Member of Kerr plans. A physician in the market forming Russell and co-chair or dentist in a leasing physician and dentist company’s network networks. These entities of the Health Care practice group. may have also directly “lease” the network to contracted with some plans that do not have a network of their own or that wish to of these insurers/plans. This results in difficulty determining the fee. expand their network of physicians or dentists without recruiting them What is a physician paid for a individually. procedure when: (a) the network leasing company has it on its fee Unlike any other provider of goods schedule at $750; (b) the patient’s or services, physicians and dentists health plan that the physician also often do not know what they will directly contracts with has it on be paid for their services until the its fee schedule at $850 and (c) payment is received. Third party another health plan that the leasing payers are reluctant to make their company contracts with has agreed fee schedules known and physicians to pay $675 for this procedure? and dentists routinely go in blind, Does the physician’s leasing assuming increased patient volume company fee schedule control? and ease of payment will make

Does the physician’s direct contract/ fee schedule with the health plan control? Or is it the lowest of all the fee schedule amounts of the plans the leasing company contracts with that is to be paid? It could be any one of these amounts depending on the terms and conditions contained in the contract with the network leasing entity and any network agreements the physician has entered with health plans and other third-party payers. Often these terms and conditions will conflict or there will be no terms or conditions clearly describing in advance which agreement/fee schedule controls.

A track record of results. We understand the region. We know what moves Michigan. We are committed to the community.

Prior to entering into a network leasing agreement, physicians and dentists should carefully review its terms, insist on receiving a fee schedule and understand how their fee will be determined when there are conflicting amounts. D E T RO I T

T ROY

kerr-russell.com Convergence — Detroit From Above by Brian Day

JULY 18, 2022 | CRAIN’S DETROIT BUSINESS | 17

Holli Seabury

WINNER: ADVANCEMENTS IN CARE

Executive Director, Delta Dental Foundation

Dr. Eunice Yu Medical Director, COVID Recovery Care Program, Henry Ford Health

r. Eunice Yu, a primary care internist with Henry Ford Health in Detroit, started seeing patients in the fall of 2020 suffering from what now is known as long COVID-19, a catchall phrase covering more than 250 symptoms. “Many of my colleagues were treating adult patients with COVID and recognizing that something really unexpected was going on,” said Yu. People with long COVID — also known as long-haulers — don’t recover from the virus in the typical 10 to 14 days. Instead, they are sick two to three months and sometimes for years after their original infection. No one completely understands why. Researchers believe more than 4 percent of people with mild illness will go on to get long COVID. So far, about 90 million in the U.S. have contracted the virus with 1 million dead, including Michigan’s 36,000 deaths and 2.6 million cases. In January 2021, Henry Ford’s infectious disease leadership decided to create a primary care delivery team to help those with long COVID. It is supported by a multi-disciplinary team composed of pulmonologists, neurologists, psychiatrists, physical and speech therapists, and sleep medicine experts. “Many medical centers around the country formed medical clinics, but care was inadequate and the six-to-eight months wait times to see patients were too long,” Yu said. “We needed to do something different because long COVID doesn’t have a prospective diagnosis. There is no blood test. We evaluate long COVID by ruling out other problems.” Because of her interest in designing new systems of care, Yu was appointed medical director of Henry Ford’s COVID Recovery Care Program. Since April 2021, 300 primary care doctors and 12 specialists in metro Detroit and Jackson have seen and treated more than 3,000 patients with long COVID.

18 | CRAIN’S DETROIT BUSINESS | JULY 18, 2022

But it wasn’t until October 2021 when the Centers for Medicare and Medicaid Services released a diagnostic code for long COVID. This more than tripled the number of patients in the program by helping doctors diagnose patients. “They have fatigue, nerve and chest pain, mood swings. It comes out of the blue for some people, but there are suggestions that folks with diabetes, COPD and asthma have more difficulties,” Yu said. “Most are between the ages of 20 to 64, but some are younger. There are more women than men. Most long COVID patients have never been hospitalized.” Long COVID symptoms fall into three major categories. More than 50 percent of patients suffer from fatigue. The remainder have neurological problems with cluster headaches, nerve pain, mood changes and the so-called “brain fog,” and/or cardiopulmonary and chest pain. “Primary care is more than capable of working out any of the symptoms that patients with long COVID experience,” she said, adding that nurse navigators have been added to help patients understand the disease and treatment. But for more complex medical situations, where multiple organs are affected, Yu said cases are discussed at monthly multidisciplinary conferences. Federally funded research on long COVID patients also has begun. “We’ve partnered with our public health sciences group to really understand more deeply the patient’s perspective,” Yu said. For those with long COVID, Yu said it’s important they have a care team to help guide them through treatment. “Patients deserve a lot of resources. We need to think about how we can deliver that in a way that it minimizes their frustration, their sense of hopelessness sometimes when they’re dealing with these very complex and uncertain symptoms.” — Jay Greene

“PATIENTS DESERVE A LOT OF RESOURCES. WE NEED TO THINK ABOUT HOW WE CAN DELIVER THAT IN A WAY THAT IT MINIMIZES THEIR FRUSTRATION . . . WHEN THEY’RE DEALING WITH THESE VERY COMPLEX AND UNCERTAIN SYMPTOMS.”

NIC ANTAYA/CRAIN’S DETROIT BUSINESS

hen Holli Seabury was in college, she dreamed of getting a job that would help her support her children. As a low-income mom, she said she wanted to work in the nonprofit world and help other low-income moms. Seabury now holds a doctorate in curriculum and instruction specializing in educational technology and is running the Delta Dental Foundation. DDF partners with nonprofits in 15 states and Washington, D.C., to increase access to oral health care and related education. Seabury’s most recent efforts include helping people with disabilities, especially those with intellectual disabilities, gain access to additional benefits through Delta Dental of Michigan, Ohio and Indiana. “These patients often take longer (to care for), and dentists don’t feel they’re being adequately reimbursed for the time,” Seabury said. As a result, patients with disabilities often can’t get the appointments and care they need. As the former CEO of Fort Wayne, Indiana-based McMillen Health, Seabury was aware of the problem. She discussed it with Delta Dental CEO Goran Jurkovic when she joined the foundation in 2019. She told him, “Someone needs to be the first to make this change, so there’s a model for other companies who provide dental benefits also to make this change. And I’d like us to be the first to do this.” Under her leadership, the foundation developed Delta Dental’s Special Health Care Needs Enhanced Benefits. Launched in January 2022, the enhanced benefits give dentists additional payments to provide care to people with disabilities. “This isn’t done,” Seabury said. “That was a battle in the war. We continue to fight this … because there’s a huge need for education in the dental profession on how to treat patients with disabilities. So, we are working on that.” The foundation has also committed more than $500,000 to develop Centers for Inclusive Dentistry, which would offer resources and immersive training so people with disabilities can receive high-quality dental treatment at designated federally qualified health centers. In addition to enhanced benefits for people with disabilities, Seabury is looking at ways the foundation can tackle senior access to oral health care. “This work very much continues,” she said. “There is no dental benefit in Medicare; so, when people retire, they often lose their dental benefits and can’t afford to see a dentist.” Her team is also developing a new line of free resources for parents and caregivers; exploring a Medicaid carve-out to protect dental benefits for those with disabilities; offering provider training by funding a series of free online courses offered through Penn Dental Medicine; and providing additional education to help children with autism have better dental visits. —Leslie D. Green, Special to Crain's Detroit Business

— Dr. Eunice Yu

WINNER: CORPORATE ACHIEVEMENT

Rosalie Tocco-Bradley Chief Clinical Officer, Trinity Health Michigan

I WINNER: PHYSICIAN HERO

Lisa Allenspach and the Lung Transplant Team Henry Ford Health

r. Lisa Allenspach and her lung transplant team at Henry Ford Health faced many challenges during the height of the COVID-19 pandemic, but the lifesaving double-lung transplant of new mother Jackie Dennis in early 2021 was one that brought special smiles to everyone involved. In November 2020, Dennis, 32, was admitted to Henry Ford Wyandotte Hospital with typical COVID-19 symptoms — fever, cough, shortness of breath and headache, plus one complication: She was 36 weeks pregnant. Five days later, the special education teacher from Wyandotte developed uncontrolled high blood pressure and signs of preeclampsia. On Nov. 27, doctors induced labor and she delivered a healthy baby girl. But two days later, her mother’s breathing rapidly declined. She developed COVID-related pneumonia. “An X-ray showed complete white-out of her lungs,” said Allenspach, adding Dennis also received convalescent plasma, one of several drugs used early in the pandemic. “Over the next week, her breathing deteriorated to the point where she was on a very high amount of oxygen and ended up on a ventilator,” Allenspach said. Transferred to Henry Ford Hospital in Detroit on Dec. 8, Dennis was put on a breathing machine because her lungs had deteriorated to uselessness. Allenspach, a transplant pulmonologist and medical director the past 12 years with Henry Ford’s lung transplant team, said Dennis’ lungs were “as severe as we’ve ever seen.” There was only one chance: a double-lung transplant. While Allenspach’s team, which included Drs. Daizo Tanaka, Hassan Nemeh and Victor Coba, had performed dozens of lung transplants, many double lungs, over the years, they hadn’t yet performed one on a COVID patient. “We did extensive workouts to make sure that she had the COVID virus and that there weren’t any other sort of red flags that would make us pause to think that maybe a lung transplant wouldn’t be successful,” Allenspach said. After she tested negative for COVID on Jan. 16, two lungs became available through the United

Network for Organ Sharing. The team jumped into action and Dennis received the lungs. Allenspach said Dennis recovered very quickly. She is back to work and thriving with her nearly 2-year-old daughter. “She’s doing amazing,” Allenspach said. “She exercises daily, which is part of our requirement because we want to make she is getting her strength back. ... She can live a completely full life with the exception that people after transplant must take medicines for the rest of their lives.” During 2020 and 2021, the coronavirus epidemic cut in half total lung transplants because of lack of donors and available staff. Henry Ford’s volume dropped from about 40 annually pre-COVID to about 20 last year. So far this year, Allenspach’s team has performed 11 double-lung transplants on COVID-19 patients and 17 in total. All but one have survived. Total lung transplants are expected to bounce back to about 35 this year, she said. “We did another (successful) double-lung transplant on a second postpartum mother in a very similar scenario” in September 2021, she said. Allenspach said transplantation requires a team approach to be successful. Allenspach’s lung-transplant team includes five medical pulmonologists, four surgeons, an infectious disease physician, anesthesia providers, a social worker, a psychologist and a number of advanced practice providers. The transplant department also includes a variety of nurses, pharmacists and physical therapists. “They all have special expertise in making sure that our transplant recipients are really well cared for because they really are a unique group of patients that take medicines and have a lot of complications,” Allenspach said. The doctors on the team include transplant pulmonologists Drs. Domingo Franco, Katlin Olexsey, Julio Pinto and Lisa Stagner. Transplant surgeons include Drs. Hassan Nemeh, Dimitrios Apostolou and Kyle Miletic.

n 2016, a 30-year-old woman came to St. Joseph Mercy Hospital with osteomyelitis, a severe infection of muscle and bone. She had surgery and received pain medication upon discharge. Unfortunately, the young woman never revealed her heroin addiction. Nor did her hospital caregivers recognize that she suffered from substance use disorder. “Within 24 hours, she overdosed on that pain medication and died,” said Rosalie Tocco-Bradley, chief clinical officer of Trinity Health Michigan. “That was a turning point. I said, ‘We have to do something about this.’” Dr. Tocco-Bradley was the catalyst behind the 2017 launch of St. Joseph Ann Arbor Livingston’s Substance Use Disorder committee, a multi-specialty task force focused in part on clinician education, recognition of at-risk patients and the establishment of medication-assisted treatments. In 2018, Trinity Health hospitals across the company adopted the program through a steering team called Opioid Utilization Responsibility, which Tocco-Bradley co-chairs. “We needed to follow pharmacy alerts more accurately if there were escalating uses of controlled substances, especially opioids and benzodiazepines. We needed to establish better education across all of our physicians and nurses,” she said. Before 2015, she said, opioid-use patients often were treated poorly when seeking medical treatment, and their diseases were not addressed. “They were treated like this was a flaw in their personalities, and they were marginalized,” said Tocco-Bradley, who has been with Trinity for 26 years. Now, Trinity's emergency rooms can provide treatment to help people with substance use disorder wean themselves off the opioids. There are also more means of safely and easily disposing of the drugs. Dr. Tocco-Bradley was “snake-bitten by medicine” and had no doubt early in her training that she wanted to work directly with patients. She also was interested in the technical aspects — pharmaceuticals and physiology — of medicine. So, she earned

WINNER: ADMINISTRATOR/ EXECUTIVE a Ph.D. in physiology from the University of Michigan Medical School, a medical degree from Harvard and a Master of Health Care Administration from UM. She is a board-certified anesthesiologist and has a sub-specialty in interventional pain medicine. “As an interventional pain physician, I was part of the problem,” Tocco-Bradley said. “We all believed that oxycodone (OxyContin) and hydrocodone (Norco and Vicodin), were medications that were safe as long as a patient was in severe pain.” The programs she helped create are “making great headway,” said the 65-year-old. Caregivers are more cognizant and responsible for the number of opioids they’re discharging patients with, and they are providing patients with an adequate education. Trinity also has a clinical opioid withdrawal program now. “But we still have a long way to go,” she said, adding that COVID took some of the focus off the issue. “Patients are still dying of opioid use disorder. We have to refocus on this area.” — Leslie D. Green, Special to Crain's Detroit Business

FOR POSSIBILITIES THAT ONCE SEEMED UNREACHABLE. CANCER IS A BEGINNING. As the only National Cancer Institute (NCI)-designated comprehensive cancer center in metro Detroit, we give you access to more than 250 promising new treatments found only at Karmanos. We give you your best chance forward.

— Jay Greene JULY 18, 2022 | CRAIN’S DETROIT BUSINESS | 19

REAL ESTATE

Oakland Township HOA sued for race discrimination Birmingham couple’s housing proposal rejected in Paint Creek Estates neighborhood BY ARIELLE KASS

A Birmingham couple has filed a federal lawsuit alleging housing discrimination after a development in which they bought land rejected their proposal to build on the property. The homeowners’ association says it’s not about race but rather the design. Jeffrey Hall, a surgeon, and Deann Nash, a registered nurse, purchased property in Paint Creek Estates in Oakland Township after Nash said they saw an ad for the land that said “this 2.69 acre wooded homesite provides a perfect setting for the creation of your custom home.” They took that to mean that they could build what they wanted, as long as they adhered to the community’s bylaws, they said. So the couple submitted plans for a stone house with windows across the front to the neighborhood’s architectural review committee. There, it was rejected. Hall is Black and Nash is white, and in the lawsuit, filed June 28 in U.S. District Court for the Eastern District of Michigan, they claim violations of the Fair Housing Act, saying that rejections of their home plan that reference property values and the number of windows on the house, along with the approval of a white-owned home that differed from the bylaws in square footage and brick color, “clearly demonstrated that the Architectural Sub-Committee was acting in bad faith and discriminating based on race.” “Defendants discriminated against Plaintiffs because of Dr. Hall’s race when they interfered

Jeffrey Hall and Deann Nash purchased property in Paint Creek Estates in Oakland Township and submitted plans for a stone house with windows across the front to the neighborhood’s architectural review committee. There, it was rejected. | JEFFREY HALL AND DEANN NASH / COURT FILING

with Plaintiffs’ ability to build their custom home in the Condominium and treated Plaintiffs’ differently than white owners in the Condominium during the plan approval process,” the lawsuit says. That couldn’t be further from the truth, said Brandon Semrau, president of the neighborhood’s homeowners association. “It’s completely false and baseless,” Semrau said of the claim. “To me, it’s completely ridiculous.” Semrau said a claim in the lawsuit that there are no other Black residents in the neighborhood is false; he said the majority of the houses in the first round of development were built for Detroit Pistons players and at least one, who is Black, still lives in his home. Other plans have been approved for non-white residents, too, he said. And Semrau also said the architectural committee that rejected the renderings didn’t know

the race of the applicants when they decided the stone facade and window-filled front didn’t fit with the character of the community, in which the homes are largely brick. “It’s completely modern,” he said of the house. “You can’t have an entire house with a face all of windows. ... They want a harmonious look from house to house to house.” Matthew Schenk, a partner at Schenk & Bruetsch representing Hall and Nash, said comments regarding the home’s design bringing down property values are what people used to say during redlining, while concerns about windows indicate that other residents don’t want to see the people inside the house. “I think we know what that means,” he said. Hall said he was “kind of shocked by this, but in a way, we’re not shocked.” After he and Nash got married four years ago, she said,

A rendering of the architectural plan Jeffrey Hall and Deann Nash filed with their HOA’s board for approval. The home they wanted to build is in a modern style with windows all across the front. | JEFFREY HALL AND DEANN NASH / COURT FILING

they looked for a place to build that would be between their two families. The feedback they received about the house included concerns about the roofline and the fact that the entryway wasn’t tall enough. They first submitted their plans in April, then had a virtual meeting with the architectural committee to discuss the concerns. The couple spent $50,000 on the architectural plans, Hall said, and were loathe to go back to the drawing board. They are now staying in a Birmingham apartment, and expected that they’d be able to move from there to their new home — but since the spring, interest rates and costs have gone up, and he said the delays have cost “so much money.” They said they’re not confident any new plans they submitted would pass muster. “We really have not violated any-

thing written in the bylaws,” Nash said. “So what’s left? By process of elimination, that’s what’s left.” While Hall acknowledged many of the homes look the same, he said there are a few that already broke the neighborhood’s mold. “I don’t know how much of this is race vs. they don’t like our house,” Hall acknowledged. But for Semrau, with the homeowners association, it’s an easy answer. “We would love to have him build,” he said. “To be honest, the whole circumstance should have been avoided by them talking to the architectural committee. ... The case is purely based on the architectural proposal. It has nothing to do with race. It’s the furthest thing from the truth.” Contact: arielle.kass@crain.com; (313) 446-6774; @ArielleKassCDB

DEVELOPMENT

Nurse transforming Detroit block into business complex Redevelopment project called The Shift will include a fresh food market, barbershop BY MINNAH ARSHAD

A nurse is transforming one Detroit block into a district of business opportunity. Sonya Greene’s redevelopment project, called The Shift, will feature a fresh food market, barbershop, hair salon, four-unit newly renovated apartment complex and nonprofit office space. Greene, 53, a registered nurse of 27 years and Detroit resident of more than 30 years, said Linwood Fresh Market, an 1,800-square-foot property at 12752 Linwood St. is slated to open in late August, along with the barbershop and one or two of the apartments. Greene will manage the market and rent out the remaining spaces. She said she envisions her Linwood master plan to serve as a stepping stool for local entrepreneurs. “This development is about economic empowerment,” Greene said. The market will offer fresh produce, healthy ready-made meals and Michigan-made grocery products. It will also feature an exterior walk-up counter where customers can order smoothies and juices. 20 | CRAIN’S DETROIT BUSINESS | JULY 18, 2022

The first phase of The Shift, a redevelopment project on Detroit’s west side, is slated to open in late August. | SONYA GREENE

Greene bought the market space in December 2017 from her late aunt, Juanita Fuller, another registered nurse who inspired Greene’s career trajectory, the businesswoman said. Her aunt’s late husband, Elmer Fuller, owned and operated a barbershop down the street for nearly 40 years. The space is remodeled and ready to reopen, Greene said, and she is interviewing a few barber college students interested in renting out the space.

“I really wanted the whole development to open at one time, but my pocket dictated something else,” Greene said. Greene said she has invested about $175,000-$200,000 in her business from her 401(k) savings without receiving any loans or grants. “I’m a one-woman show,” she said. Transitioning from her role in the medical field to entrepreneurship has meant wearing many hats,

Greene said, but she’s optimistic about the business’ future. When Greene purchased the building in 2017, she said she didn’t have an exact vision for what she wanted the space to look like but knew she wanted to provide healthy food to her community. “Being a registered nurse for 27 years, I’ve always seen how poor eating and bad food choices have really hurt a lot of people,” Greene said. During her years as a RN, Greene witnessed young patients on multiple medications for high blood pressure, diabetes and other health issues that might have been prevented or slowed by investing in a healthier lifestyle, Greene said. This was especially apparent in areas where health education was limited, and healthy food options weren’t provided. “We have a lot of people who want to eat better but just don’t know the types of food that would do their body good,” Greene said. Alongside the fresh food market, Greene is working to provide another part of the healthy lifestyle equation through her nonprofit, Inua Organization, for which she is establishing an office space in her

development project. Inua provides local health and wellness education and workforce development. “I think anyone, given the tools that they Greene need, can be successful,” Greene said. Greene moved from Columbia, S.C., to Detroit in 1990. She put herself through college twice, receiving her associate degree from Oakland Community College and later a bachelor of science in nursing from Eastern Michigan University with cum laude honors, while living around the corner from her future business space at Pasadena and Dexter. “The energy and the enthusiasm from the community has really touched me in a way that I know I’m doing the right thing,” Greene said. “I look forward to transforming this area and being a help, a much needed help.” Contact: minnah.arshad@crain.com (313) 446-0416; @minnaharshad

AUTOMOTIVE

Auto show puts the ‘Detroit’ back into downtown event Plans solidifying for September event after being shelved by schedule changes and pandemic Detroit auto show 2022

BY KURT NAGL

Automakers including Ford Motor Co., General Motors Co., Stellantis NV and Toyota Motor Corp. will have a major presence at the auto show in Detroit this September, but not in the same way as shows past, according to organizers. As the Sept. 14-25 event draws nearer, plans are solidifying for the North American International Detroit Auto Show. Note that “Detroit” was inserted into the name of the event for the first time since it took the “international” moniker in 1989. The Detroit show dates back more than a century but has been shelved since 2019 because of schedule changes and the COVID-19 pandemic. “We want to create something here, a hallmark event that we can build on in the future, that people will want to go to and celebrate what we’re all about here in Detroit,” Rod Alberts, executive director of the Detroit Auto Dealers Association, which produces the show, said Wednesday between meetings downtown where he was sizing up the new and expanded show footprint. “And we know that we can do it in such a way that all of downtown is going to be energized.” There will be plenty of reasons for media and industry insiders to attend, including new vehicle debuts, Alberts said. There will be an even bigger emphasis on general consumers, Alberts said, with experiences including Bronco Mountain, Camp Jeep, Ram Truck Territory, indoor rides in Maseratis, Lamborghinis and other luxury cars, and electric vehicle rides along the future downtown circuit of the Grand Prix.

The schedule for this year’s North American International Detroit Auto Show: Media Day: Sept. 14 AutoMobili-D and Industry Tech Days: Sept. 14-15 Charity Preview: Sept. 16 Public Show: Sept. 17-25 Tickets are on sale at naias. com/2022-tickets.

In 2019, ticketed attendance totaled 774,179. Alberts said it’s too early to predict numbers this year, but believes 400,000 would be a solid turnout. “There will be a heavy emphasis on the consumer side and the experience of the consumer,” Alberts said. “But because we are Detroit, I think it also presents an opportunity for others to gather and still conduct business here. I mean, why not come in and look at competitors’ products on the show floor?” The 2022 North American International Detroit Auto Show will feature 35 brands, from Detroit area automakers to luxury car companies. | CRAIN’S DETROIT BUSINESS

competing with Bronco Mountain to woo attendees. “We’ve never had the opportunity to have the space inside to do these things before,” said Jamie Noll, shows and events manager for Stellantis. Also new this go-around will be an indoor track on which attendees can be driven around the showroom in luxury vehicles, Alberts said. Outside, attendees will have the chance to take a spin downtown as passengers inside new EVs. “(Grand Prix Chairman) Bud

“WE WANT TO CREATE SOMETHING HERE, A HALLMARK EVENT THAT WE CAN BUILD ON IN THE FUTURE, THAT PEOPLE WILL WANT TO GO TO AND CELEBRATE WHAT WE’RE ALL ABOUT HERE IN DETROIT.” — Rod Alberts, executive director of the Detroit Auto Dealers Association

While organizers have trickled out some details of the new indoor-outdoor “hybrid” show and accompanying Charity Preview, much has remained behind the curtain. Tickets went on sale Monday for the show and its charity event. The traditional auto show part of the event will happen within Huntington Place as with past iterations, Alberts said. Rather than “big, Taj Mahal” displays that attendees are used to, automakers are investing more in experiential activations, like Bronco Mountain — a rollercoaster-like metal and wood structure designed to flaunt the power of Ford’s popular SUV. The “mountain” premiered at Motor Bella and will be erected inside the downtown convention center. Camp Jeep and Ram Truck Territory, two experiential test tracks that Stellantis has brought to auto shows around the country for years, will make their debuts in Detroit,

Denker and his crew have laid out a great track for downtown, and we might as well just run the same course,” Alberts said. “It’s a chance to feel what that technology is all about.” Alberts said the show has secured participation from 35 brands, with five major activations inside the showroom. “There are reveals we hear that are coming. There will be debuts,” Alberts said, declining to offer specifics. “They really want to show it off here because this is the hometown for these manufacturers, plus we can make it a hallmark location for people to come to, not just from Southeast Michigan, but around the country.” Stellantis indicated it would be conducting new vehicle reveals for Jeep and Chrysler and said it would have a vehicle display with products from Alfa Romeo, Chrysler, Dodge, Fiat, Jeep and Ram brands. “We will have opportunities for showgoers to be taken for a ride in

our Camp Jeep and Ram Truck Territory driving courses, and we are planning press conferences, for both Jeep and Chrysler,” spokesman Rick Deneau said in an email. Ford is planning to sponsor the traditional AutoGlow event supporting The Children’s Center, according to a memo obtained by Crain’s. The event will be hosted at Ford Field in an “elegant outdoor space” with a gourmet dinner, open bar, entertainment and shuttles between Ford Field and Huntington Place. “We’re excited the show is returning to Detroit and we look forward to sharing our plans closer to September,” Ford spokesman Mike Levine said in an email. GM did not provide details for its auto show plans. On the non-OEM side, the show is on track to have more than 100 sponsors and partners, with more expected to sign up in the coming weeks, said Tavi Fulkerson, founder of The Fulkerson Group, which has handled sponsor activity for the auto show since 1992. This year’s show is not expected to bring the same number of journalists and auto writers as previous shows. The media preview has been condensed from two days in 2019 to one day, Sept. 14, shared by Industry Tech Day. In 2019, there were 4,568 media members from 60 countries in to cover 44 vehicle reveals, including 31 world debuts, organizers said. “I don’t see that reoccurring that same way anymore,” Alberts said. “If you get 1,000, 2,000 (media members), you’re going to cover 90 percent of the landscape anyway.” The outdoor aspects of the show, aside from the Grand Prix circuit ride-along, have remained mostly under wraps, as have details on the Charity Preview, scheduled for Sept. 16. The fundraising event will take place at Huntington Place with two yet-to-be-named musical acts and a third act in Hart Plaza, Alberts said.

Contact: knagl@crain.com; (313) 446-0337; @kurt_nagl

Advertising Section

CLASSIFIEDS To place your listing, contact Suzanne Janik at 313-446-0455

JOB FRONT POSITION AVAILABLE

POSITION AVAILABLE Requests for Proposals are being accepted for: Community Health Corps. Case Management Software (CHCMS)

Response Due: August 15, 2022

Issued: July 12, 2022

The Mayor’s Workforce Development Board (MWDB) is directly responsible and accountable to the State of Michigan, Labor and Economic Opportunity-Workforce Development (LEO-WD) for the planning and oversight of talent development programs in the City of Detroit. Designated by the MWDB, Detroit Employment Solutions Corporation (DESC) serves as the fiscal and administrative entity that provides workforce services to job seekers and employers. DESC’s primary funding streams include Workforce Innovation and Opportunity Act (WIOA), Temporary Assistance to Needy Families (TANF) that funds Michigan’s PATH (Partnership. Accountability. Training. Hope.) employment program, Food Assistance Employment and Training (FAE&T), Wagner-Peyser Employment Services (ES), and other public and private funding. The Corporation enters into contracts with qualified entities to provide workforce development programs and services to job seekers and employers. American Rescue Plan Act (ARPA) and Center for Disease Control Foundation (CDC) funding may support contracts resulting from competitive bid process. DESC is seeking proposals from qualified individuals, organizations and/or firms.

Bid package for this RFP is available for download at this DESC website:

https://www.descmiworks.com/opportunities/rfps-and-rfqs/. Mayor’s Workforce Development Board Cynthia J. Pasky, Co-Chairperson David E. Meador, Co-Chairperson

Detroit Employment Solutions Corporation Board Calvin Sharp, Chairperson Detroit Employment Solutions Corporation Terri Weems, President

An equal opportunity employer/program. Supported by the State of Michigan, Labor and Economic Development, Workforce Development (LEO/WD). Auxiliary aids and services available upon request to individuals with disabilities. 1-800-285-WORK. TTY: 711.

JULY CRAIN’S DETROIT DETROIT BUSINESS 21 MAY 18, 24, 2022 2021 || CRAIN’S BUSINESS || 17

EDUCATION

Michigan universities see big funding increase in new budget $2B budget up $214M for 2022-23 fiscal year, includes boost in student financial aid BY DAVID EGGERT

LANSING — The education budget signed by Gov. Gretchen Whitmer last week has one of the biggest overall increases in university funding in state history, a boost to a higher education budget that was slashed for years and only now has recovered to levels from two decades ago. The $2 billion higher ed budget is up $214 million for the 2022-23 fiscal year, or nearly 12 percent. It was last near that point, at $1.9 billion, in 2001-02 — before an economic downturn led to a decade of cuts in operating support and financial aid programs that exacerbated tuition hikes. Michigan in 2020 ranked 47th-lowest among states in state funding per full-time equivalent student, according to the State Higher Education Executive Officers Association. “Obviously we’re pleased with the overall budget numbers. But to me, perhaps, what resonates the most is a much more pervasive and shared understanding among all stakeholders in the state about the fact that talent is the factor that is going to drive Michigan’s ability to compete economically in the future,” said Dan Hurley, CEO of the Michigan Association of State Universities. “One theme is the diversity of the investments that were included in the budget. We have not had that before.” The budget enacted Thursday includes a 2021-22 supplemental outlay of $300 million to pay off more than half of the liabilities of seven universities whose workers hired before 1996 are in the Michigan Public School Employees Retirement System. When those payments and other adjustments are factored in, funding effectively will rise between 4 percent and 12.5 percent among the

Gov. Gretchen Whitmer signed the 2022-23 education budget on Thursday at Mott Community College in Flint. | MICHIGAN GOVERNOR’S OFFICE

15 universities. Here’s a look at the spending plan:

Funding The big winners, on a percent change, include Oakland (12.5 percent), Grand Valley State (9.5 percent), Ferris State (8.9 percent) and Central Michigan (8.6 percent). Five schools — Grand Valley, Oakland, University of Michigan-Dearborn, UM-Flint and Saginaw Valley — will benefit from a new, phased-in funding formula to ensure they get at least $4,500 per student by the 202425 budget year. Those universities had pushed for such an approach for years, saying a funding floor would bring equity and fairness. The average across all 15 schools will be $6,235 per student in 2022-23. The three research schools, UM-

Ann Arbor, Michigan State and Wayne State, will see 4 percent more in funding. Seven universities — Central, Western, Ferris, Eastern, Michigan Tech, Lake Superior and Northern — will receive a smaller bump in operations aid but save on pension payments. “This kind of married together all the institutions in an interesting way,” said Rep. Ben Frederick, an Owosso Republican and chair of the House higher education and community colleges budget subcommittee. “There’s a charge in this moment, particularly to the regional entities that as they are afforded these opportunities for funding, what are they doing institutionally to position themselves for the realities of the marketplace and how they can continue to drive that value proposition in their various programs?”

DRINKS

From Page 3

Rieth declined to say whether he has a noncompete agreement following his sale and exit from Atwater. As Fül Beverages ramps up — plans call for it to begin showing up on the shelves of still-to-be determined stores around the state over the coming weeks — the company is launching with a small lineup of products it expects to grow over time. The initial product lineup consists of two N/A beers — an IPA and a blonde ale — as well as pre-workout and post-workout energy drinks in flavors such as blood orange, berry and pineapple coconut. Rieth said he’s aiming to have “all-natural … alternative energy drinks,” free of artificial sweeteners. Monkfruit, he said, makes up one of the sweetener additives being used.

Working from experience Rieth is quick to acknowledge that the energy drink sector, alternative or otherwise, is fairly crowded these days. Any gas station or grocery store offers dozens of brands and flavors. Nonetheless, research indicates there’s still opportunity for growth in Rieth’s new niche. A recent report from Grand View Research found the global energy 22 | CRAIN’S DETROIT BUSINESS | JULY 18, 2022

Fül Beverages’ non-alcoholic beers | FÜL BEVERAGES

drink market valued at over $86 billion last year, and poised to grow at a rate of 8.3 percent annually over the next eight years. “The growing demand for energy drinks as a potential energy booster in order to improve physical and cog-

nitive performance has been shaping the market growth. Drinks that are free from sugar, glucose, and high fructose corn syrups have been gaining traction among consumers,” reads the report. “Market players are aggressively marketing these drinks

Scholarships

Nursing shortage

The budget sets aside $250 million for a new postsecondary scholarship fund, though details such as who is eligible and the size of the scholarships have not been worked out. The Senate, with support from business leaders who say the program would help deal with workforce and talent shortages, proposed giving up to $6,000 to students who graduated from high school this spring and will attend a four-year school. Up to $3,000 would go to those enrolling in community college or a private training institution. “It essentially represents an overnight doubling of the state’s commitment to financial aid,” Hurley said. “That’s a big deal. The key now is for all of the stakeholders to come together and stamp out where those dollars are going, what the eligibility criteria are, to try to do it in way that makes sense and to do it soon.” It may be too late to help the 2022 high school graduating class, unless lawmakers and the Whitmer administration make the program retroactive. The existing Michigan Competitive Scholarship, which requires an SAT score of at least 1,200 and demonstrated financial need, will rise to up to $1,500 from $1,000 annually. The need-based Michigan Tuition Grant, which goes to students at private colleges in the state, will increase to up to $3,000 from $2,800 a year.

The community colleges budget includes a minimum of $2 million for each community college that wants to partner with a four-year school so students with an associate’s degree in nursing can earn a bachelor’s in nursing at least partially on the community college campus. “Staffing shortages are impacting Michigan hospitals throughout the state, particularly in the areas of nursing,” Brian Peters, Michigan Health & Hospital Association CEO, said in June. “This plan will help us get more highly skilled professionals into the field quickly and increase access to nursing education in more communities across the state.” Universities and community colleges had been at odds for years over bills to let community colleges directly offer four-year nursing degrees.

Tuition To get their full funding allotment, schools must limit tuition and fee increases for in-state undergrads to 5 percent or $722, whichever is greater. as functional beverages that uplift energy and alertness as well as provide a physical boost.” For his part, Rieth, said he’s planning to adhere to a big lesson learned in the craft beer business going forward: namely, fast growth is not always best. Like many others, Atwater rode the rising craft beer wave of the previous decade. The Detroit-based brewery, which still has taprooms in Grand Rapids and Grosse Pointe Park, at one point grew its distribution footprint to around 30 states, Rieth said. That number was eventually scaled back to 12 states. “One thing I learned along the way (with Atwater) is you really need to take care of your own market first,” Rieth said. “It’s not a shotgun approach where we’re just going to go to every state with a distributor. We want to grow the brand organically, and so we’re going to start locally and build out.” Fül Beverages brand planned to begin rolling out last week with increased visibility over the next 30 days, according to Rieth. The entrepreneur confirmed he has investor partners in the new venture, but declined to share who or any financial details. Specific retail and distributor deals are still being finalized, he said. Once finalized, retailers will be listed on the company’s website, Rieth said.

Teacher recruitment The K-12 budget allocates $25 million and sets aside $280 million in the future to help cover up to $10,000 in tuition costs of 2,500 college students per year who are working to earn their initial teacher certification. Hurley said the funding “could have a quick and impactful effect on teacher education enrollments. Of course it takes some time for that to generate new additional teachers. But I think that those dollars are significant enough where you will actually see a greater number of young adults consider that as a college academic program and a career path.” Contact: david.eggert@crain.com; (313) 446-1654; @DavidEggert00 As part of its early marketing efforts, Fül Beverages has become one of the sponsors of the annual Bayview Mackinac Race, which sets sail in Port Huron later this week. The initial products are being contract manufactured at a facility in Ohio, Rieth said. But the entrepreneur said he’s on the hunt for space in the city of Detroit to manufacture the beverages and base the company. While he’s exited Atwater Brewery, Rieth said he still has significant real estate holdings around the Rivertown neighborhood where the brewery has its origins south of East Jefferson Avenue. Detroit, Rieth said, is the market where he wants to base this latest company, and the idea of “alchemy,” which shows up on Fül’s branding, pertains to the idea of extending life. The 54-year-old said that’s been on his mind. “So all those things were part of my thought process when I when I was thinking of selling (Atwater), when I sold, when I stayed and what am I going to do next,” Rieth said. “And it’s not just about starting another company. I don’t have to do that. I’m not doing this because I have to do it. I’m doing this because I want to do it.” Contact: nmanes@crain.com; (313) 446-1626; @nickrmanes

PROPOSALS

From Page 3

The Reproductive Freedom for All ballot committee, which is led by Planned Parenthood Advocates of Michigan, the American Civil Liberties Union of Michigan and Michigan Voices, has reported an influx of volunteers since the U.S. Supreme Court’s decision was leaked in May and released in June. Co-chair Linh Song, an Ann Arbor councilmember, said this week that nearly 800,000 signatures had been gathered. If the group submits that many following a search for duplicates and other potentially invalid signatures, it would be a state record. Roughly 425,000 valid signatures are needed for a constitutional amendment. The measure would declare a right to reproductive freedom, including to “make and effectuate decisions about all matters relating to pregnancy.” The government would be able to regulate abortions after fetal viability, which is around 23 or 24 weeks, with exceptions for the woman’s health. It could not, however, prosecute or penalize women who get an abortion or doctors and others who assist them. The 1931 law currently on hold makes it a felony to perform an abortion. Anti-abortion advocates likely will criticize the new proposal as too broad, saying it would allow unregulated late-term abortions without legislative action. Reproductive Freedom for All had raised $1.4 million as of April, mostly from the ACLU. “The momentum for this ballot measure and the strength of our

Abortion rights and anti-abortion demonstrators outside the U.S. Supreme Court in Washington, D.C., last month. A deeply divided Supreme Court overturned the 1973 Roe v. Wade decision and wiped out the constitutional right to abortion. Michigan’s abortion amendment will be one of the most closely watched ballot initiatives in the country. | CRAIN’S DETROIT BUSINESS

statewide network of volunteers is only growing,” said Ashlea Phenicie, spokesperson for Planned Parenthood Advocates of Michigan. VOTING The voting amendment, sponsored by Promote the Vote, also will receive attention nationally. It would create at least nine days of early in-person voting, let all voters

prohibit legislative or other attempts to “unreasonably” burden the right to vote and enshrine the duties of the state’s canvassing board to certify results after then-President Donald Trump’s unprecedented attempts to overturn the 2020 election. The amendment was launched after Republicans began circulating petitions for a veto-proof initiated bill. Organizers of that drive, who

request an absentee ballot for future elections and require prepaid postage on return envelopes. A ballot drop box would be required in every municipality, including one for every 15,000 residents. A tracking system for submitted ballots would be created. The measure would preserve voters’ right to sign an affidavit attesting to their identity and cast a ballot if they do not have a photo ID. It would

LASSITER

“I think we have a lot of work to do in health care. I would tell you from my point of view, one of the things that’s holding this country back — and this is not a political statement from my perspective — is that our country doesn’t have access to and rights of health the way that many industrialized countries do. It is one of the impediments that holds our country back from realizing its full economic prosperity, its full success in many ways. Frankly, when you have so many millions of individuals that don’t have the luxury that you and I and our families have, they are not going to be fully productive citizens.” Lassiter often talks in platitudes about transformation and progress, but from his vantage point — he’s nearly 6’6” — progress can be made even within the confines of a broken system. He looms large in Detroit after only eight years locally (he moved to Michigan from California) assuming a role as one of the city’s strongest and most vocal leaders. He’s propelled Henry Ford Health toward becoming a true academic health system with aspirations of a destination system like Cleveland Clinic or Michigan Medicine. He became CEO of Henry Ford officially in January 2017, although he was essentially CEO-in-waiting for two years beginning in September 2014. He quickly focused the integrated health system on partnerships to expand the Henry Ford name. Accomplishments under Lassiter’s leadership include building a major outpatient cancer center on its Detroit campus in New Center and successful negotiations to become the Detroit

BRETT MOUNTAIN/CRAIN’S DETROIT BUSINESS

From Page 3

“I THINK WE HAVE MORE THAN SUFFICIENT WHEREWITHAL, IF WE WERE FOCUSED ON IT, TO CREATE THE RIGHT KIND OF HEALTH CARE CLIMATE ACROSS THE UNITED STATES THAT WOULD EMPOWER PEOPLE TO BE ABLE TO LIVE THEIR BEST SELVES AND PURSUE HEALTH AS BEST THEY CAN.” —Wright Lassiter III, president and CEO, Henry Ford Health

Pistons’ official medical provider and medical manager of a 175,000-squarefoot sports performance center. Last year, Lassiter learned some of the system’s 33,000 employees were homeless, so he approached the board and raised the minimum wage for all employees to $15 per hour. Costing a little more than $6 million, Lassiter told Crain’s the minimum raise increase wasn’t about added expenses but about social justice and economic empowerment. Henry Ford Health was also the first major system in the state to mandate the vaccine for all 33,000 of its employees and contractors. The mandate was immediately met with pushback, including a brief lawsuit from about 50 employees that was later withdrawn. Lassiter was also largely re-

sponsible for the September 2021 return of the Mackinac Policy Conference during the pandemic. The Detroit Chamber’s annual conference went on hiatus in 2020 due to COVID-19 and its occurrence in 2021 was unsure. But with Lassiter as its chair last year, the conference was able to institute a vaccine mandate for attendees. Coupled with the presence of Lassiter and his management team, the event would go on in the middle of a pandemic with reassurance that no major breakout would occur. Henry Ford also opened a medical facility in partnership with Aldara Hospital and Medical Center in Riyadh, Saudi Arabia, last year. Months later, it opened a specialty hospital in Vellore, India, with Pearl Human Care Pvt. Ltd.

But it is the signing and extending of a partnership with Michigan State University that will seal Lassiter’s legacy at Henry Ford. In January 2021, the organizations finalized a 30-year partnership agreement that is going to create a MSU medical school and innovation campus near Henry Ford’s Detroit hospital. Earlier this year, MSU approved faculty appointments for 115 researchers at Henry Ford. But it’s the groundbreaking of a $150 million joint research institute in the next 15 months and simultaneous creation of a four-year medical school in the city that is the linchpin to the partnership. The research center will house researchers and physicians on translational research — specifically looking at cancer, neuroscience, women’s health, imaging and public health. Henry Ford physicians and nurses will act as faculty in the program that will house upward of 25 students in human medicine and another 50 in osteopathic medicine and represent the first major medical school expansion in Detroit in more than 100 years. Lassiter will miss the groundbreaking and completion of the new school; it will be the next CEO’s shining moment. For that, Lassiter laments. “I’m not a facade or facility guy. I don’t get wildly excited about how many buildings I built,” Lassiter said. “But I will be disappointed to not actually be sitting in the chair the day that the actual branch campus of Michigan State opens here in Detroit. And I will be saddened to not be part of the ribbon cutting of the new Henry Ford Hospital campus. Those are two things that are really important to the organization that I won’t get to see, at least not up close.” But for Lassiter, that’s leadership. Having the hard conversations, putting in the work, imbuing better ways

want the GOP-led Legislature to pass their initiative rather than let it go to a public vote, missed a deadline for the November ballot. But the proposal ultimately could still go before lawmakers if Secure MI Vote turns in petitions. It would make voters without an ID verify their identity within six days of an election for their vote to count and require people to provide additional information such as a driver’s license number on absentee ballot applications. The initiative also would prohibit the use of private donations to administer elections and create a $3 million fund to waive ID fees for low-income residents. The constitutional amendment, if approved, would effectively take precedence if legislators pass the initiated bill. Promote the Vote had raised nearly $3.4 million as of May, including $1.6 million from the Sixteen Thirty Fund, a Washington, D.C.-based group backed by anonymous donors on the left. Other major donors are Oklahoma billionaire philanthropist Lynn Schusterman ($500,000), California physician and philanthropist Karla Jurvetson ($260,000) and New York doctor and philanthropist Lisa Minsky-Primus. Promote the Vote Executive Director Micheal Davis said the group had collected “more than enough” signatures to “ensure all of us in Michigan can vote without fear, or threats of intimidation or harassment, regardless of where we live, what we look like or what political party or candidate we prefer.” Contact: david.eggert@crain.com; (313) 446-1654; @DavidEggert00 to offer health care and putting those changes into action — transformation, Lassiter calls it — are the responsibilities of a leader. Photo ops and awards are the less important spoils. “Being CEO of an organization like this, your impact is about movement more than just moments,” Lassiter said. “I would say unequivocally the ‘thing’ I am most proud of is positioning the organization to be a lot closer to its potential than it was the day I walked in the door. My job was to reduce the gap between today and what’s possible. I think I did that.” Now Lassiter’s appetite for ‘transformation’ is larger and more complicated — and political. “I think we have more than sufficient wherewithal, if we were focused on it, to create the right kind of health care climate across the United States that would empower people to be able to live their best selves and pursue health as best they can,” Lassiter said. “The fact that we don’t, in my mind, is one of our greatest flaws as a country. I look forward to speaking as the CEO of the largest health care system in the country to talk about how we get over our excuses.” And he plans to drag legislators, administrators and taxpayers over the finish line kicking and screaming if he must. “Getting to a better place is the goal,” Lassiter said. “I plan to, for however many years I have left in health care, to push and pull from a national perspective the debates around a better health care ecosystem for our country. And if I can contribute to that in a significant way, along with leading my new organization successfully, then you know, it’s a life well lived.” Contact: dwalsh@crain.com; (313) 446-6042; @dustinpwalsh JULY 18, 2022 | CRAIN’S DETROIT BUSINESS | 23

ROSS

From Page 1

Crain’s learned that Ross — chairman of New York City-based developer Related Cos., the Miami Dolphins owner and a major donor to the University of Michigan — made his pitch directly to the four legislative leaders along with top members of the House and Senate budget committees. He visited on Feb. 9, the same day the Democratic governor unveiled her budget proposal. “Stephen Ross has long been a vocal supporter of Detroit, and has spoken with members of the business community and public officials about the merits of a non-profit research, education and entrepreneurship center on Michigan’s talent pipeline,” Related Vice President for Corporate Communications Jon Weinstein said in a statement. “We are grateful that Michigan’s state leaders have joined their counterparts in New York, Virginia and Illinois, investing in the development of a non-profit, world-class academic innovation center that will propel job creation for Michiganders.” The dead-of-night votes in Lansing earlier this month come at a time when taxpayer funding for billionaires’ development projects has received increased attention in Detroit. Dan Gilbert’s $1.4 billion J.L. Hudson’s site development downtown is seeking a 10-year, $60.3 million property tax abatement, the framework for which was approved in 2017, but Gilbert’s Bedrock LLC development company has not been able to secure support at the Detroit City Council for its final approval. The governor’s office declined to say if she met with Ross.

A big check The $100 million earmark — which amounts to roughly $10 for every person in the state — is tied for the second-largest earmark in the budget, trailing only $130 million for an electric vehicle center at the University of Michigan. It was a surprise because there had been no indication that Ross, Christopher Ilitch, the CEO of Ilitch Holdings Inc., or the university would seek public funding outside of potential tax incentives. In February 2020, at the Crain’s Newsmaker of the Year luncheon when Ross announced his personal $100 million pledge to the project, the Detroit native and Hudson Yards developer said he would seek “to raise a minimum of $300 million from philanthropic sources.” “I’m just looking for kind of fellow

A rendering of the proposed Detroit Center for Innovation. | DETROIT CENTER FOR INNOVATION

Hollier

Ilitch

Detroiters to really support it because of what it can do for Detroit and really acting as that catalyst to really deliver everything that everybody wants,” he said at the time. It remains unknown why precisely the earmark was sought. Ross has previously said that the COVID-19 pandemic made people wary of donating to the project. Rep. Joe Tate, of Detroit, said he met with Ross in Lansing in February but was not told the reasoning for seeking public assistance. “There was outreach to numerous legislators around support for this specific project,” said Tate, the top Democrat on the House Appropriations Committee. “From my point of view, and I can’t speak for my colleagues, but when you look at something as transformational as this could be, trying to create a center for not only talent attraction but talent development, economic development, entrepreneurship, I think it’s an opportunity, especially having it in the center of the largest city in the state of Michigan. I think it’s something that’s very attractive.” Tate said he had conversations with some in city government about the proposal as well. Dan Austin, a spokesperson for Mayor Mike Duggan, said that “though we support

Cavanagh

Thanedar

this kind of major investment in the city of Detroit, we were not intimately or actively involved in any lobbying effort for the project. Supporting a project is different from lobbying for one.” Ilitch representatives also had conversations with Tate, but he said he was not aware if Christopher Ilitch was directly involved.

High-level meetings And Sen. Adam Hollier, D-Detroit, who is running for a U.S. House seat, said he had conversations about the project with Ryan Friedrichs, who joined Related from the city in 2020 and — along with two other Related executives — registered as a lobbyist for the company late last month, a day before the budget became public. Hollier also spoke with Ilitch representatives. “I’ve been abundantly clear that I believe that the state should be making good, sound investments in economic development in things that are going to be transformational projects,” he said. “This is a transformational project in the city of Detroit that will have far-reaching impact in regular peoples’ lives for decades.” On Friedrichs’ involvement, a spokesperson for Related said, “Ryan

did not lobby on behalf of the DCI Ross’ vision with Ilitch, first unduring this year’s state budget pro- veiled in May, includes new hotel, cess. Ryan registered as a lobbyist as office, residential and commercial a matter of company policy for devel- space, including some projects that opment staff. To be clear, in this case have been on Olympia Development Ryan did no lobbying around the of Michigan’s drawing boards for nonprofit, Detroit Center for Innova- years, Crain’s has previously reporttion’s grant in the budget.” ed, although none has gotten off the Republicans who lead the Legisla- ground. Those commercial buildings ture, including Senate Majority Lead- — if they ever come to fruition and if er Mike Shirkey and House Speaker there is appetite for the space they Jason Wentworth, did not comment provide — could be highly lucrative, on the $100 million earmark and why depending on how the deals are they supported it, other than to con- structured, for both Ross and the Ilfirm that they met with Ross. itches. Sen. Curtis Hertel, the highest-ranking Democrat on the Senate ‘Just appeared in the Appropriations Committee, said he budget’ was more focused on other budget issues but did not find the funding to Rep. Shri Thanedar, D-Detroit, and be out of bounds after meeting with a member of the House budget comRoss. mittee, said he has “mixed feelings” “It was an interesting proposal,” about the grant. said Hertel, of East Lansing. “I think “When you have two billionaires there’s a lot of things that we need to partnering in it, it may not always — do prepare for the jobs of tomorrow. all of it — be altruistic,” said ThaneAnything that helps bring jobs, dar, who is running for Congress. high-paying jobs and for Michigan- “Any time government is giving out ders and helps bring young people to money to big corporations or wealthy move back into the state I think is a people, I am a little suspicious, even positive thing.” though the concept looks good.” The 200,000-square-foot research Thanedar, who did not meet with and education center, which is Ross, said the earmark should have planned for a surface parking lot west been discussed in an open meeting. of the Fox Theatre in the Ilitch fami- The decision to include the $100 milly’s District Detroit area, is projected lion was made at the “very top level,” to cost $250 million. The Illitch orga- he said. nization is expected to donate the “It’s a good line item, and it’s a land; the building would be devel- good project. It was not debated in oped by Related and donated to the the House,” he said. “It was not deuniversity, which would not pay tax- bated in the Appropriations Comes on the property. mittee. It just appeared in the budget “The University of Michigan did basically. I’m just being honest.” not advocate for this funding,” school And Rep. Mary Cavanagh, D-Redspokesperson Rick Fitzgerald said. ford Township, whose House district Ross has described the DCI as an- includes northwest Detroit, said she other anchor for the area along with was not looped in on conversations the $862.9 million Little Caesars Are- with Related or Olympia about the na for the Detroit Red Wings and the earmark but heard about it from colDetroit Pistons. That project also received hundreds of millions “IT JUST APPEARED IN THE BUDGET in public funding. BASICALLY. I’M JUST BEING HONEST.” The District Detroit — State Rep. Shri Thanedar area — floated by the Ilitches eight years ago this month as a sweeping series leagues. of developments across five new The funding, she said, will support neighborhoods with offices, restau- a worthy project, but she has conrants, bars, entertainment, green cerns about it propping up an effort space and other uses — has not, as of led by a pair of billionaires. yet, materialized as originally por“I really get red flags when we see trayed. West of Woodward Avenue, specific people and families trying to property largely controlled by the Il- get money from the state, but I was itch family remains a sea of surface very happy to see that the project parking lots and vacant buildings. won’t include the use of (local) tax There has been some new office con- subsidies,” she said. struction along Woodward, and one rehabbed building with apartments Contact: david.eggert@crain.com; has opened and another one kicked (313) 446-1654; @DavidEggert00 off construction in recent months, Contact: kpinho@crain.com; both after years of delays. (313) 446-0412; @kirkpinhoCDB

OBITUARY

United Wholesale Mortgage CFO Tim Forrester dies at 55 BY NICK MANES

United Wholesale Mortgage CFO Tim Forrester died July 10 of cancer, the Pontiac-based mortgage lender confirmed Tuesday night. Forrester was 55, according to an obituary posted online. Mat Ishbia, president and CEO of UWM, announced Forrester’s death in a social media post Tuesday. “Very sad to announce the passing of Tim Forrester, our Chief Financial Officer,” Ishbia wrote on LinkedIn. “Tim was an amazing CFO, leader, and friend to so many. He made me a better CEO and helped build this company with me for the last 10 years. 24 | CRAIN’S DETROIT BUSINESS | JULY 18, 2022

Tim Forrester | UNITED WHOLESALE MORTGAGE

Tim made such a positive impact on everyone he met, and I was proud to call him a friend. He will be greatly missed.” A regulatory filing by the company last month said Forrester would be taking a leave of absence for health reasons. UWM designated Andrew Hubacker, the company’s senior vice president and chief accounting officer, to serve as interim principal financial officer. Forrester, of Bloomfield Hills, joined UWM (NYSE: UWMC) in 2012 after spending 18 years at Deloitte, where he was a partner, according to his LinkedIn profile. “We are deeply saddened by the

passing of Tim Forrester, our Chief Financial Officer,” a UWM spokesperson wrote in a statement to Crain’s. “Tim was a friend to everyone, and he was always willing to share his knowledge and insight to make UWM and our team members better. “Over his 10 years at UWM, he made us laugh, he educated us, and he helped to cultivate a one-of-a-kind work family. He will be greatly missed. Our thoughts are with Tim’s family as they navigate this next chapter.” A celebration of Forrester’s life is scheduled for 5:30 p.m. July 21 at A.J. Desmond & Sons at 32515 Woodward Ave. in Royal Oak. Visitation will begin at 2 p.m. that day.

FOOD

said. “They’re going to have to go somewhere.” The drop in summer meal sites is putting more pressure on food banks and rescues, Knight said. “Our lines will get longer ... we’re talking about kind of a perfect storm: less food, more people.”

From Page 1

At the same time, the number of summer meal program sites in the region and state has dropped more than 65 percent this summer amid rising costs and fixed reimbursement rates from the federal government, according to the state. That’s putting even more pressure on food banks and rescues. “There are more people coming for help than we have food for,” Brisson said. Fundraising has been steady but the number of people seeking help is rising along with food prices, he said. In June, the food bank began allocating an additional $200,000 more per month than budgeted to buy food. “The truth is, we’d have to spend $500,000 a month to make up the entire slack, but we’re just not ready to do that,” he said. “You can’t eat today’s lunch and not have dinner tomorrow.”

Rising demand, canceled truckloads About 1.3 million people in the state were food insecure before the COVID-19 pandemic began in March 2020. The pandemic pushed that number to nearly 2 million before dropping as the economy reengaged, said Phillip Knight, executive director of the Food Bank Council of Michigan. But over the past six months or so, it has reversed. “People are having to come back again for food,” he said. Food banks across the state are seeing the ongoing USDA shortages, Knight said. As much as 30 percent of the food Michigan food banks distributed during the pandemic came from the USDA, with the increased loads provided as part of pandemic food assistance programs, he said, up from 15 percent to 25 percent each year before COVID. “It’s at 8 percent today and dropping,” Knight said. Between January and mid-June, food banks and rescues in the state had seen 111 full truckloads of USDA food canceled, according to the Food Bank Council of Michigan. That equated to 4.4 million pounds of canned vegetables and chicken, shrimp, cheese, fish, eggs, pasta, juice and fresh oranges and nectarines. Each truckload contains multiple orders. By the state’s count, a total of 316.5 Emergency Food Assistance Program orders headed to Michigan were canceled last year, Thomas Priest, supervisor, food distribution programs in the Michigan Department of Education’s Office of Health and Nutrition Services, said in a forwarded email. The trend has continued this year, with 166.5 canceled USDA food orders, he said, noting that there will be fewer overall orders this year following the sunset of supplemental gov-

Making up the difference

Edna Walker, executive director for the Ebenezer Community and Cultural Center in Detroit, works with volunteers at a community food giveaway on June 30, 2022. | PHOTOS BY QUINN BANKS/CRAIN’S DETROIT BUSINESS

Rev at Ebeneezer Elaine Donaldson packing food to be delivered to community members at the Ebenezer Community and Cultrual Center’s food giveaway event on June 30, 2022.

ernment food programs launched during the pandemic. Before COVID, the state might see one or two truckloads of food canceled a year, said Diane Golzynski, the state’s director of health and nutrition. Shortages are “affecting every single program we have in 2022.”

USDA issues Rising costs and raw material, packaging and labor issues for vendors are impacting the agency’s ability to buy food and get it to states, a USDA spokeswoman said in an email to Crain’s. As the cost of food rises in the commercial market, USDA Foods contracts are also impacted by price increases, she said. The Emergency Food Assistance Program and the Commodity Supplemental Food Program (senior food boxes) supplied by the USDA receive a defined amount

“WE’D HAVE TO SPEND $500,000 A MONTH TO MAKE UP THE ENTIRE SLACK, BUT WE’RE JUST NOT READY TO DO THAT. YOU CAN’T EAT TODAY’S LUNCH AND NOT HAVE DINNER TOMORROW.” — Gerry Brisson, President and CEO, Gleaners Community Food Bank of Southeastern Michigan

of funding from Congress. With rising prices, the government is limited in the amounts and types of food it can purchase, the USDA spokesperson said. Purchase shortfalls are impacting states across the country, and the agency says it is continuing to monitor those challenges. “USDA understands that disruptions caused by supply chain challenges are impacting USDA Foods stakeholders (and) is employing a variety of methods to purchase as much food as possible and avoid purchase shortfalls and cancellations,” the agency said in the statement. The focus is on strengthening local food procurement and distribution and providing increased funding for food banks and schools. In tandem with USDA shortages, the number of summer meal sites providing meals for low-income kids when school is out dropped by twothirds this year, according to the

state. That’s in part because of USDA food shortages on orders schools place nine months or more in advance, Golzynski said. Michigan schools were shorted almost 14.2 million pounds of USDA food during the 2020-21 school year and 1.5 million pounds during 202122, according to the state. Many bought food in the commercial market with their own funds during the school year when USDA orders were canceled, Golzynski said. But reimbursements to schools have been less than the rising costs of food. And ever-increasing USDA nutrition requirements are putting even more margin pressure on food suppliers, spurring many to get out of the school supply business and complicating purchasing for the USDA-funded student meal programs. Sponsors of the summer meal sites through the state-administered, federal Summer Food Service Program have also been opting out, Golzynski said. Last year, 1,602 sites in Wayne, Oakland, Macomb, Livingston and Washtenaw counties hosted summer meal sites. This summer, just 572 locations are hosting them, per state data. Statewide, summer meal sites dropped to 1,540 from 4,280 last year. “In the state of Michigan, we have a law saying every public school must offer lunch and if over a certain percentage of poverty, they must offer breakfast. There’s no requirement for summer,” Golzynski said. Schools, community sponsors like Gleaners, Boys & Girls Clubs and others are not hosting summer meal programs this year because of food shortages, higher costs to purchase food and the lack of staff to prepare it, she said. The kids without a summer meal site nearby still have to eat, Golzynski

“WE HAVE A LAW SAYING EVERY PUBLIC SCHOOL MUST OFFER LAUNCH AND IF OVER A CERTAIN PERCENTAGE OF POVERTY, THEY MUST OFFER BREAKFAST. THERE’S NO REQUIREMENT FOR SUMMER.”

USDA food to Gleaners hit an alltime high of more than 2.4 million pounds per month from mid-2020 to mid-2021. It’s now dropped to roughly 300,000 pounds of USDA food per month, on par with 2018, though community need hasn’t returned to pre-pandemic levels and is on the rise again, Brisson said. Gleaners is dipping into its reserves to help make up for shortages, but that’s not sustainable, Brisson said. Fundraising has been steady and according to plan, but more people are coming and prices of food are going up so the dollars aren’t going as far. “The question is, how long is this problem going to last? You can’t spend all of your reserves at once.” Golzynski said the state tries to jump on available truckloads of food and is applying for every new funding opportunity available through the USDA. “We have a team that is monitoring the situation and trying to divert trucks as much as possible,” she said. “As soon as we find out that there are extra trucks available … we do the work needed to bring them to Michigan.” Beyond the Michigan Department of Education efforts, state Sen. Roger Victory, R-Hudsonville, introduced Senate Bill 0885 in February as a supplemental appropriation for the current fiscal year 2022. It has yet to be taken up by the Senate Appropriations committee. As proposed, it would appropriate $1.4 billion from the state’s general fund to support several, one-time grants to restore and bolster the state’s agricultural industry as it recovers from the pandemic. Among other funding, it also proposes $15 million in funding for grants to Michigan food banks to purchase and distribute locally grown and produced food. Some of the components of the bill were included in the fiscal 2023 budget but not the portion that would have addressed food shortages, Knight said. “We as a state government need to lobby USDA for as much food and resources as we can get our hands on right now,” he said. “Food banks will handle this shortage in different ways. Gleaners will raise the funds necessary to meet the need of the community. But other food banks do not have the same capacity to do (that) and will reduce the amount of food and distributions because of food and fund shortages.” Contact: swelch@crain.com; (313) 446-1694; @SherriWelch

“OUR LINES WILL GET LONGER ... WE’RE TALKING ABOUT KIND OF A PERFECT STORM: LESS FOOD, MORE PEOPLE.” — Phillip Knight, executive director of the Food Bank Council of Michigan.

— Diane Golzynski, Michigan’s director of health and nutrition JULY 18, 2022 | CRAIN’S DETROIT BUSINESS | 25

THE CONVERSATION

Jerry Millen, ringmaster of small weed, on industry expansion “Big marijuana” uses celebrities to promote its products — Mike Tyson, Snoop Dog, Bella Thorne, etc. The face of Greenhouse of Walled Lake, one of the state’s largest retailers by volume at 1,600 customers per day, is its owner Jerry Millen. He’s an unofficial spokesman of the industry for media outlets like Fox 2 and WDIV and you’ll hear him and his ringmaster modulation on gas station pumps around Southeast Michigan. Millen is a former radio and TV sportscaster and bootstrap marketing extraordinare. He gave away pre-roll joints to customers that got vaccinated, gave talks about the benefits of weed at nursing homes and markets his own dispensary as a raised fist in the air against the “Walmart-ification” of the industry with T-shirts and hats emblazoned with “Greenhouse vs Corporate Weed” across the front. | BY DUSTIN WALSH  Prices have tumbled more than 50 percent in the last year. Is that good for you as a retailer? It’s not OK. What’s happening is the small guy (growers and processors) is getting beat up by the corporate weed companies. They are producing so much and driving down prices and that’s crushing the mom and pops out. Then they’ll cut production and drive prices right back up. There is such thing as too low of prices, even for us. This industry is very expensive to be in. There’s licensing fees, insurance premiums, operating costs and we don’t get to write offs like other businesses. So prices can be too cheap. Everyone has to have a certain profit margin to make it. A pure volume game isn’t good for anyone. But we’re busy enough here. Volume-wise, we’re good. We see 1,600 people a day, but revenue is down. I’m not here to make a bunch of money. I’m good. As long as I can support my employees and maintain good customer service, I’ll win.  So what’s the state of the industry then? Chaos. And it’s going to get worse. When “Croptober” comes in (when outdoor grows are harvested in the fall), the price will drop more. I’m trying to cultivate relationships with the small grows to give them a lifeline. It’s brutal. There’s probably only 10 percent of the people left in the industry that came through when I did. Consolidation is going on and people are dropping out and others are dropping in. People are still opening grows, which I think is crazy. But whomever can sustain this storm, they are going to be around forever.  You’ve become known for your

I have a whole team of people. The right offer to vertically integrate, I might do it. But right now? Why would I go out and buy a grow when I can buy product for cheaper than I can make it? This time next year, though, you’ll be able to buy a grower or a processor for pennies on the dollar. I never thought prices would drop this low, this fast. I’m talking to buddies in the industry. There’s maybe a chance where I can throw them a lifeline and benefit from it at the same time. We’ll see. But I want to be the Zingerman’s of weed. I want people to come from all over for the quality. I want to sustain good prices with good product and be well known for it.

Jerry Millen, proprietor, Greenhouse of Walled Lake

marketing. How advantageous is that? My background in TV and radio and media has been a huge asset for us. I know how the media works. If you have a good story, the media will report on it. It’s that simple. Don’t make it hard on them. I can’t buy radio and TV commercials (regulations ban traditional ad campaigns). Billboards are a waste of money to me because everyone has one. The gas station ads work because I can be my own spokesperson. I can’t be replaced. I strategically put myself in ads. Not that I want to be on a gas station pump, but because I can convey my message better than anyone else and

I want people to have a connection to me. There’s a recall value there. Also, we do so much charity stuff and it stands out. Anything we can do to normalize the industry; showing there are good people in the industry. Anyone can give away turkeys at Thanksgiving. People want to see you come out with unique and creative ideas. I don’t know if it’s the media training, but I like to market outside the box. Those gas station ads have been crucial.  As you mentioned, there’s been a lot of consolidation. Where do you stand on buying or being bought? With the right people, I would do it. Greenhouse is not just Jerry Millen.

 Does that mean you’d like to open more storefronts, as opposed to just the one? There are plenty of opportunities, but I want to be in a city that’s a good city. I have my eyes set on Brighton. It’s an underserved community, but I have to work on the city council a bit because there are people on the council not educated on cannabis. But, the next two years, they’ll be legal. I do plan a second store, but I don’t want to have to sue a city to get a location. I want to be somewhere where they want me, want Greenhouse. I try to educate all these city councils. If you’re in a position of power, you at least owe it to your constituents to do your homework. Some 60 percent of Brighton voted for recreational marijuana. They can’t just ignore that. So I’m working on it. Or Farmington Hills. They are a good market for me too. The more desirable cities are taking a slow approach and that’s good for me. Gives me time to sharpen my plan.

READ ALL THE CONVERSATIONS AT CRAINSDETROIT.COM/THECONVERSATION

RUMBLINGS

26 | CRAIN’S DETROIT BUSINESS | JULY 18, 2022

REPORTERS

Minnah Arshad, city of Detroit, (313) 446-0416 or minnah.arshad@crain.com Jason Davis, small and emerging businesses. (313) 446-1612 or Jason.davis@crain.com David Eggert, senior reporter. (313) 446-1654 or david.eggert@crain.com Arielle Kass, residential real estate. (313) 446-6774 or arielle.kass@crain.com Nick Manes, finance and technology. (313) 446-1626 or nmanes@crain.com Kurt Nagl, manufacturing. (313) 446-0337 or knagl@crain.com Kirk Pinho, senior reporter, real estate. (313) 446-0412 or kpinho@crain.com Dustin Walsh, senior reporter, health care. (313) 446-6042 or dwalsh@crain.com Sherri Welch, senior reporter, nonprofits and philanthropy. (313) 446-1694 or swelch@crain.com MEMBERSHIPS

CLASSIC $169/yr. (Can/Mex: $210, International: $340), ENHANCED $399/yr. (Can/Mex: $499, International: $799), PREMIER $1,299/yr. (Can/Mex/International: $1,299). To become a member visit www.crainsdetroit.com/ membership or call (877) 824-9374 Group and Corporate Membership Sales Deb Harper, (313) 446-1623 or dharper@crain.com ADVERTISING/MARKETING

Sales Inquiries (313) 446-6032; FAX (313) 393-0997 Director of Events and Program Content Kristin Bull, (313) 446-1608 or kbull@crain.com Events Director Samantha Flowers Senior Account Executives Maria Marcantonio, John Petty Advertising Sales Lindsey Apostol, Ainsley Burgess, Sharon Mulroy Content Marketing Specialist Allie Jacobs People on the Move Manager Debora Stein, (917) 226-5470, dstein@crain.com Marketing Manager Lynn Zott, lzott@crain.com or (313) 446-6762 Media Services Manager Nicole Spell (212) 210-0230 or nspell@crain.com Classified Sales and Sales Support Suzanne Janik CUSTOMER SERVICE

UM adds ‘Schlissel clause’ to new president’s contract THERE IS A GLARING DIFFERENCE between the contract of the University of Michigan’s next president, Santa Ono, and his predecessor, Mark Schlissel. Ono’s contract includes a clause that would end his faculty tenure immediately if he were to be fired by the board of regents. Such language was not in the contract of Schlissel, who was fired as president in January but retains his tenured faculty position. Ono was unanimously elected as UM’s 15th president during a special board meeting Wednesday. He begins a five-year term Oct. 13. He will receive a base salary of $975,000, according to a copy of the contract obtained by Crain’s. That’s comparable to Schlissel’s

crainsdetroit.com

Publisher and CEO KC Crain Group Publisher Jim Kirk, (312) 397-5503 or jkirk@crain.com Associate Publisher Lisa Rudy, (313) 446-6032 or lrudy@crain.com Executive Editor Kelley Root, (313) 446-0319 or kelley.root@crain.com Managing Editor Michael Lee, (313) 446-1630 or malee@crain.com Digital Editor for Audience Elizabeth Couch, (313) 446-0419 or elizabeth.couch@crain.com Audience Engagement Editor Matthew Pollock, matthew.pollock@crain.com Creative Director Thomas J. Linden, tlinden@crain.com Digital Portfolio Manager Tim Simpson, (313) 446-6788 or tsimpson@crain.com Assistant Managing Editor Beth Reeber Valone, (313) 446-5875 or bvalone@crain.com Assistant Managing Editor Lauren Abdel-Razzaq, (313) 446-5800 or lauren.razzaq@crain.com Special Projects Editor Amy Elliott Bragg, (313) 446-1646 or abragg@crain.com Associate Creative Director Karen Freese Zane, kfreese@crain.com Art Director Kayla Byler, kayla.byler@crain.com Design and Copy Editor Beth Jachman, (313) 446-0356 or bjachman@crain.com Research and Data Editor Sonya Hill, (313) 446-0402 or shill@crain.com Newsroom (313) 446-0329, FAX (313) 446-1687 TIP LINE (313) 446-6766

Santa Ono, president and vice chancellor of the University of British Columbia, was named the 15th president of the University of Michigan. | UNIVERSITY OF MICHIGAN

$927,000 base salary outlined in a beefed-up contract signed in October before the board fired him over an “inappropriate relationship” with a university employee. There are other similarities in the terms of employment. Ono’s contract calls for the same types of perks, including $350,000 in deferred compensation starting after the first year, regular university benefits and supplemental contributions to a retirement plan, housing, an expense allowance and use of an automobile and driver. However, the consequences of being fired with cause vary between Ono’s contract and that of Schlissel. “In the event the President is terminated from the administra-

tive appointment for Cause, as determined in the discretion of the Board, President is also terminated from the tenured faculty appointment without any additional action necessary by the Board,” Ono’s contract reads. Schlissel’s contract entitled him to a faculty position despite being fired for cause. UM spokesman Rick Fitzgerald confirmed Wednesday that Schlissel is currently a tenured faculty member at the university. Under a settlement reached with Schlissel in May, the university will pay the former president $463,000 for a one-year leave, and he will retain the option to return as faculty with a yearly salary of $185,000. — Kurt Nagl

Single copy purchases, publication information, or membership inquiries: (877) 824-9374 or customerservice@crainsdetroit.com Reprints: Laura Picariello (732) 723-0569 or lpicariello@crain.com Crain’s Detroit Business is published by Crain Communications Inc.

Chairman, Editor Emeritus Keith E. Crain Vice Chairman Mary Kay Crain President and CEO KC Crain Senior Executive Vice President Chris Crain Chief Financial Officer Robert Recchia G.D. Crain Jr. Founder (1885-1973) Mrs. G.D. Crain Jr. Chairman (1911-1996) Editorial & Business Offices 1155 Gratiot Ave., Detroit MI 48207-2732; (313) 446-6000 Cable address: TWX 248-221-5122 AUTNEW DET CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 is published weekly, except no issues on 1/3/22, 7/4/22, 11/21/22 nor 12/26/22, by Crain Communications Inc. at 1155 Gratiot Ave., Detroit MI 48207-2732. Periodicals postage paid at Detroit, MI and additional mailing offices. POSTMASTER: Send address changes to CRAIN’S DETROIT BUSINESS, Circulation Department, P.O. Box 07925, Detroit, MI 48207-9732. GST # 136760444. Printed in U.S.A. Contents copyright 2022 by Crain Communications Inc. All rights reserved. Reproduction or use of editorial content in any manner without permission is prohibited.

A LEADERSHIP DEVELOPMENT CERTIFICATION PROGRAM

IN PARTNERSHIP WITH

LEADERSHIP SKILLS FOR TODAY’S REALITY Leading remote and blended teams Promoting openness and trust Leading with empathy EIGHT SESSIONS SEPT. 29 - NOV. 17 REGISTRATION DEADLINE AUG. 19

crainsdetroit.com/nwow

VIRTUA L EVENT

2022

COOL

PLACES TO WORK AUG 18 | 1PM TOP 100 MICHIGAN EMPLOYERS RANKED Employees have been surveyed, results tallied and winners determined. Now it’s time to reveal who made the list! Join us for this high-energy, informative sneak peek at our Aug. 22 Cool Places to Work issue.

crainsdetroit.com/cool-reveal Interested in sponsoring this event? Contact: samantha.flowers@crain.com