A Byrd Newspapers Publication
Volume 18, No. 12, October 31, 2017
Providers Wary Of Uncertain Markets
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ht on:
Healt h Care Page 8
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SHENANDOAH VALLEY BUSINESS JOURNAL
Tuesday, October 31, 2017
Inside This Issue Focus Section: Health Care The Shenandoah Valley Business Journal is a monthly publication of Rockingham Publishing Company, Inc., 231 S. Liberty St., Harrisonburg, VA 22801.
Editorial Staff Editor and General Manager: Peter S. Yates
■ Uncertain Markets Rock Boat ...............................Page 8
Other Business News ■ Expanding Companies Support Growth ............Page 6 ■ Ariake Expands City Plant ..................................Page 4 ■ Local Ledger..................................................Page 10 ■ Second Dunkin’ Donuts To Open ....................Page 14 ■ WhiteWave Foods To Expand ..........................Page 15
Managing Editor: Jerry Blair
Columns Staff / Contributing Writers: Preston Knight, Vic Bradshaw, Nolan Stout
HARRISONBURG — Stewart Nelson has been selected as the next vice president and chief financial officer of the Sentara Blue Ridge Region, which includes Sentara RMH Medical Center. According to a news release, he’ll begin transitioning into the new role this fall and be on the job full time on Nelson Jan. 5. Nelson has been the CFO of Sentara Halifax Regional Hospital in South Boston since November 1989. In 28 years in that posi-
Contact us By mail: Shenandoah Valley Business Journal P.O. Box 193 Harrisonburg, VA 22803 By email: svbjnews@dnronline.com By fax: 433-9112 By phone: 574-6267 (news) 574-6229 (ads) On The Cover:
■ Financial Focus with Kathy Armentrout...........Page 3 Nikki Fox / DN-R Erin Neff, a registered nurse at Sentara RMH Medical Center, flushes out the intravenous line of Evelyn Spitzer Hedrick, 95, of Upper Tract, W.Va.
Contributing Photographers: Nikki Fox, Daniel Lin
Nelson Tapped As Sentara RMH Regional Chief Financial Officer
Harrisonburg, Va.
tion, he led the expansion of the hospital’s financial and information systems, was involved with the growth of the Sentara Dominion Health Medical Associates group, and executed several major financing projects. He also helped develop Sentara Halifax Dental Clinic, which serves children and underserved populations, and MedAssist, which provides free medication for low-income individuals. Nelson replaces Mike Burris, who is retiring Jan. 5 after five years as the region’s CFO. Norfolk-based Sentara Healthcare, a nonprofit organization, operates 12 hospitals in Virginia and North Carolina. — Vic Bradshaw See MOVERS, Page 3
Shentel Telecommunications Completes NTelos Upgrades HARRISONBURG — Shenandoah Telecommunications Co. (NASDAQ: SHEN) announced that it has completed the upgrade of the former nTelos wireless network to 4G LTE service and migrated all former nTelos customers to the Sprint billing system. Shentel, a Sprint affiliate, bought the nTelos wireless service area in May 2016. The transition, which included upgrading 854 former nTelos sites to 4G LTE from 3G technology, was completed Saturday, a full quarter ahead of schedule, according to a news release. The company, headquartered in Edinburg, committed $240 million toward initial network upgrades and coverage expansion. It expects to have
built 60 percent of 220 additional coverage sites in West Virginia and southern Virginia by the end of the year and finish the rest in 2018. Shentel provides an array of telecommunication services to customers in parts of Virginia, West Virginia, Maryland, Pennsylvania, Kentucky and Ohio. — Vic Bradshaw
Free Nutrient Testing Available For Small Farms Through VT HARRISONBURG — Free soil and manure sampling, manure and fertilizer recommendations, equipment calibration and presidedress nitrate tests are available to some area See SCENE, Page 5
Harrisonburg, Va.
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Put Lessons From ‘Retirement Week’ To Work T o raise public awareness about the importance of saving for retirement, Congress has designated the third week of October as National Save for Retirement Week. What lessons can you learn from this event? First of all, save early — and save often. Too many people put off saving for retirement until they are in their late 40s — and even their 50s. If you wait until you are in this age group, you can still do quite a bit to help build the resources you will need for retirement — but it will be more challenging than if you had begun saving and investing while you were in your 20s or early 30s. For one thing, if you delay saving for retirement, you may have to put away large sums of money each year to accumulate enough to support a comfortable retirement lifestyle. Plus, to achieve the growth you need, you might have to invest more aggressively than you’d like, which means taking on more risk. And even then, there are no guarantees of getting the returns you require. On the other hand, if you start saving and investing when you are still in the early stages of your career, you can
make smaller monthly contributions to your retirement accounts. And by putting time on your side, you’ll be able to take advantage of compounding — the ability to earn money on your principal and your earnings. Here’s another lesson to be taken from National Save for Retirement Week: Maximize your opportunities to invest in the tax-advantaged retirement accounts available to you, such as an IRA and a 401(k) or similar employer-sponsored retirement plan. If you have a 401(k)-type plan at work, contribute as much as you can afford every year, and increase your contributions whenever your salary goes up. At a minimum, put in enough to earn your employer’s matching contribution, if one is offered. Apart from saving and investing early and contributing to your tax-advantaged retirement accounts, how else can you honor the spirit of National Save for Retirement Week? A key step you can take is to reduce the barriers to building your retirement savings. One such obstacle is debt. The larger your monthly debt payments,
Financial Focus Kathy Armentrout
the less you will be able to invest each month. It’s not easy, of course, to keep your debt under control, but do the best you can. One other barrier to accumulating retirement resources is the occasional large expense resulting from a major car repair, sizable medical bills or other things of that nature. If you constantly have to dip into your long-term investments to meet these costs, you’ll slow your progress toward your retirement goals. To help prevent this from happening, try to build an emergency fund big enough
to cover three to six months’ worth of living expenses. Since you’ll need instant access to this money, you’ll want to keep it in a liquid, low-risk account. So, there you have them: some suggestions on taking the lessons of National Save for Retirement Week to heart. By following these steps, you can go a long way toward turning your retirement dreams into reality. This article was written by Edward Jones for use by Kathy Armentrout, an Edward Jones financial adviser at 560 Neff. Ave., Suite 100, Harrisonburg; 540-574-1013.
Earman & Associates Travel Certifies Special Needs, Accessibility Travel Specialist Sievers Honored For Service To Jones Certified To Serve Special- Nursing Home In New Market — Meade and VelNeeds, Accessibility Travelers da HARRISONBURG Siever recently received a Life Care Movers
FROM PAGE 2
HARRISONBURG — Cindy Jones, a travel agent with Earman & Associates Travel, recently was certified to specialize in special needs and accessibility travel. Jones was certified by Special Needs Group Inc., an international provider of special-needs equipment for the travel industry, according to a news release. A travel professional for 28 years, she participated in SNG’s certification program to earn the designation. The program helps agents gain an understanding of the special-needs traveler, the best equipment to rent to enhance their trips, and ways to market accessible travel. Earman & Associates Travel’s office is at 1587 Port Republic Road. — Vic Bradshaw
Centers of America Group Volunteer Award for their assistance at the nationwide health care company’s facility in New Market. The couple volunteers at the center each Friday, according to a news release, and has given it more than 20,000 hours of service. Meade serves ice cream and Velda provides hand massages and manicures for residents. Life Care presents the award to top the volunteers in each of its regions and divisions. The award was picked up for the Sievers, who were unable to attend, at the company’s annual management meeting at its Cleveland, Tenn., headquarters. Life Care manages more than 200 nursing, post-acute and Alzheimer’s facilities in 28 states. Its New Market re-
habilitation center and nursing home is located at 315 E. Lee Highway. — Vic Bradshaw
Gross Joins Brown Edwards As Harrisonburg Of fice Director
HARRISONBURG — Two area hospitality-industry professionals were honored recently by the Virginia Restaurant, Lodging & Travel Association at its annual Ordinary Awards ceremony. Connlan Hogan, a bartender and hourly manager at Capital Ale House in Harrisonburg, was selected as the Restaurant Employee of the Year, while Dana Staniunas, director of recreation at Massanutten Resort, received the Charlie Buser Award for Attraction Employee of the Year. The awards, now in their second year, were presented Oct. 2 in Richmond.
HARRISONBURG — Cindy Gross has joined the Harrisonburg office of Brown Edwards & Co. as a director in the accounting firm’s information technology audit practice. Gross has more than 15 years of experience in system development and design, according to a news release. She comes to Brown Edwards from one of the country’s top 10 Gross firms, where she provided information technology audit and consulting services for multiple industries. In her new post, she’ll provide a wide
— Vic Bradshaw
See MOVERS, Page 12
Two Area Hospitality-Industry Professionals Receive Awards
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Harrisonburg, Va.
Ariake U.S.A. To Expand In Harrisonburg By VIC BRADSHAW Daily News-Record
HARRISONBURG — Business is growing for Ariake U.S.A. Inc., and it’s expanding its local plant as a result. Gov. Terry McAuliffe announced Oct. 11 that the city company will spend $17 million to add 20,000 square feet of production space to its North Liberty Street plant. Ariake will hire 22 people as a result of the expansion, the company’s third since it opened in 1990. “We are excited about this new plant expansion and the opportunity to strengthen and grow our partnerships with businesses and employees here in the Shenandoah Valley,” Atsushi Moribayashi, Ariake’s director of production, said in a news release. Ariake manufactures stocks, bases and seasonings for the food industry at the factory. Its products are sold to food manufacturers as well as distributors serving the restaurant industry. Its parent company, Ariake Group, is headquartered in Japan. The Virginia Economic Development Partnership helped Harrisonburg economic development officials secure the deal. Virginia competed against Illinois, Indiana and Wisconsin for the project. McAuliffe approved a $75,000 grant from the Commonwealth’s Opportunity Fund for the expansion, and Brian Shull, Harrisonburg’s economic development director, said the city also will provide a $75,000 grant. Funding and services to support Ariake’s employee training activities will be provided through the Virginia Jobs Investment Program. “This is wonderful in many respects,” Shull said of the expansion. “This investment certainly provides a great boost for our tax base, provides new jobs for our residents, and is a testament that this continues to be a great business location for Ariake since this is the third expansion in 27 years. “We’re very pleased to be partnering with them for continued expansion.” McAuliffe hailed Ariake’s decision. “Ariake U.S.A. has been an important corporate partner to the City of Harrisonburg for nearly 30 years,” he said in a news release, “and we are proud this global company has chosen to reinvest in the Commonwealth en-
Gov. Terry McAuliffe announced on Oct. 11 that Ariake U.S.A. Inc. will spend $17 million to add 20,000 square feet of production space to its plant. Ariake will hire 22 people as a result of the expansion, which is the company’s third since it opened in 1990. “We are excited about this new plant expansion and the opportunity to strengthen and grow our partnerships with businesses and employees here in the Shenandoah Valley,” Atushi Moribayashi, Ariake’s director of production, said in a release. Daniel Lin / DN-R
from Virginia companies. Companies in neighboring states also supply a significant portion of its ingredients. Already Filling Jobs Moribayashi also touted the local The Ariake Group is a major food workforce. processor, making a line of products “We wish to recognize our dedicated, that includes bouillon, consommé, hardworking employees who have sauce bases, noodle soups and contributed so much to the sucsnack seasonings. The comcess and growth of the company has seven more pany,” he said in the news plants in Belgium, Chirelease. na, France, Japan, the This is wonderful in The company is exNetherlands and Taipanding the plant many respects. wan. because of business The Harrisonburg growth. Brian Shull, plant is its only faciliKratz said sales Harrisonburg’s ty in America and emof products manufaceconomic developer ploys 90 people. tured at the plant have Jeremy Kratz, Ariake doubled since 2011, parU.S.A.’s controller, said ticularly in organic prodthe city has been a good loucts. cation for the company for two “We’re a leader,” he said, “in primary reasons. producing chicken and beef stocks.” “We’ve found that it’s a good place for Privately held, the company would employees. We feel like there’s a strong not divulge annual revenue figures. base of labor here,” he said. “Also, Food and beverage manufacturing is bones are the primary raw materials to a major employment sector throughout make our soups, so we’re buying from the Shenandoah Valley, a fact noted by some of the local poultry plants.” Todd Haymore, Virginia’s secretary of The company, Kratz said, sourc- commerce and trade. es about 15 percent of its ingredients “Ariake U.S.A.’s third expansion at
suring the longevity of its operation for decades to come.”
“
its Harrisonburg facility is a powerful testament to Virginia’s thriving food manufacturing industry, which has generated $2.2 billion in capital investment and more than 7,500 jobs in the past decade,” he said. “This sector has been a key driver of economic growth for the Shenandoah Valley region and for Virginia, and we congratulate Ariake on its continued success and growth in the Commonwealth.” Construction work is expected to begin this week, and Kratz said Ariake hopes to have its new production line running by next summer. Harrisonburg’s Nielsen Builders Inc. is the general contractor for the project, according to a building permit. The company has begun hiring quality control and maintenance staffers and will continue adding employees for months, he said. Positions to be filled vary from production-line workers to supervisors. Shull said the deal took “several months” to come together. Ariake will spend $9.9 million on new equipment and $7.1 million on construction. Contact Vic Bradshaw at 574-6279 or vbradshaw@dnronline.com
Harrisonburg, Va.
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Nutrient Testing Program Aims To Ensure Farmers Use Proper Levels On Soil Scene
FROM PAGE 2
farmers through the Virginia Tech Small Farms Nutrient Management program. The program’s goal is to ensure that farmers are applying proper types and levels of nutrients to their fields to maximize crop production. A nutrient-management plan can help farmers buy the correct nutrients in the proper quantities to address their needs. Voluntarily undertaking best management practices for nutrient use also reduces the possibility of nutrient runoff into rivers, streams and creek, lessening the likelihood that mandatory BMP programs will have to be prescribed to protect the Chesapeake Bay’s water quality. Farms eligible for the free assistance include those with agricultural activity on more than 10,000 square feet and fewer than 400 acres, or dairy operations with less than 200 animals. Beef, sheep, goat, horticulture and
cut-flower operations also qualify. For more information, contact Tad Williams, dairy and small farms nutrient management specialist with Virginia Tech’s Crop and Soil Sciences Department, at 540-290-3602 or taw1776@vt.edu. — Vic Bradshaw
Union Bankshares Corps. Earnings Fall Flat Due To Merger Costs HARRISONBURG — Union Bankshares Corp. (NASDAQ: UBSH), the parent company of Union Bank & Trust, reported flat year-over-year earnings for the third quarter despite costs related to its pending merger with Xenith Bankshares Inc. Net income for the quarter was $20.7 million, up slightly over the $20.4 million it netted during the third quarter of 2016. Both figures amount to 47 cents per diluted share. Union reported $661,000 in after-tax costs related to the merger.
Union’s community banks led the way for the company, contributing $20.3 million, or 46 cents per share, in net income for the quarter. Through Sept. 30, the company’s net income for the year is $57.7 million, or $1.32 per diluted share. That’s an increase of $1 million, or 3 cents a share, compared to the first three quarters of last year. Union Bank & Trust has 111 branches in Virginia, including two in Harrisonburg and one in Grottoes. — Vic Bradshaw
Cadence Inc. Announces Third Quarter Results, Revenue Increase STAUNTON — Cadence, Inc. announced unaudited results through the third quarter of 2017 that included a 5 percent increase in revenue from continuing operations to $67.9 million compared to the first nine months of 2016. According to a company press re-
lease, earnings per share from continuing operations decreased 14 percent over prior year results to $3.03 per share. Earnings before interest, taxes, depreciation and amortization from continuing operations was down 6 percent at $12.9 million, the statement reported. Earnings per share from total operations increased 153 percent over prior year results. As a result of previously announced changes to its manufacturing footprint, the company’s financial results include a discontinued operations section that include the results of the now-discontinued operations in the Dominican Republic and Massachusetts. Cadence, based in Staunton, provides services to medical device and diagnostics companies worldwide. The firm employs more than 450 people, including at locations in Pennsylvania, Rhode Island and Wisconsin. — Staff Reports
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SHENANDOAH VALLEY BUSINESS JOURNAL
Harrisonburg, Va.
Buildings Grow To Support Expanding Companies By VIC BRADSHAW Daily News-Record
HARRISONBURG — Two local buildings are about to grow to support the growth of three area companies. Friendship Industries Inc. and Able Solutions Inc., sister companies based in a building at 801 Friendship Drive that straddles the city-county line, are preparing for a $3 million, 32,000-square-foot expansion, officials with the companies announced Oct. 10. The addition could support up to 50 more jobs. Meanwhile, on the south side of town, Packaging Corporation of America is adding space to its plant at 930 Pleasant Valley Road. The addition the first for nonprofit Friendship Industries since it built off North Liberty Street in 2000, said Tom Hook, chief operating officer. Both businesses provide packaging and distribution services for national and international clients, and Friendship See GROW, Page 7
Carlos Castillo of Harrisonburg, an employee at Friendship Industries, stacks boxes of dairy products on the production line. Friendship Industries Inc. and sister company Able Solutions Inc. are preparing for a $3 million, 32,000-square-foot expansion of their building at 801 Friendship Drive that straddles the city-county line. Daniel Lin / DN-R
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COO: Need To Consolidate Warehousing Primary Reason For Building Expansion Grow
sectors — e-commerce and subscription services. They already provide packaging additionally has a document shredding seg- and distribution for a Barcelona, Spain, ment. company that ships product samples from “We’re simply running out of room,” he U.S. food manufacturers to subscribers said, “and we needed to really consolidate monthly. our warehousing, which is the primary rea“Most of the customers we’re seeing,” son for the expansion.” said Hook, “revolve around the e-commerce Founded in 1964, Friendship Industries market in some way or another.” hires people with disabilities and trains Brian Shull, Harrisonburg’s economic them to package products. Hook said it has development director, said he was glad the about 20 clients with the U.S. Air Force, for companies have found a long-term solution whom it assembles first-aid and survival to their space needs. kits, its major customer. “Friendship does a lot of work for many Able Solutions employees can have different manufacturers in the Valley, and broader barriers to employment, such as they’ve been very stressed for space reincarceration, substance-abuse cently and using other facilities recovery, or a poor work history to help supplement what they that hinders their ability to find “We needed have there,” Shull said. “This work. They mainly package prodwill allow them to be much more to really ucts shipped to large retailers, consolidate our efficient.” including Costco and Sam’s Club. The project also will provide warehousing, work for several local companies. “We’re filling a real need in which is terms of these entry-level posiMount Crawford’s Valley Engitions,” said Hook, “where indithe primary neering has been hired as projviduals can really get some exreason for the ect manager; Broadway’s Lantz Daniel Lin / DN-R perience and training in order to Construction is the contractor. expansion.” move on to other jobs in the comU.S. Department of Agricul- Melissa Henry of Harrisonburg packages dairy products on Friendship Industry’s production line. munity. ture Rural Development helped — TOM HOOK “We don’t really expect anyCHIEF OPERATING Friendship Industries and Able body to stay here for a career as a OFFICER Solutions secure project financline worker. We’re trying to teach ing. Union Bank & Trust is prothem to be a good worker, a good viding interim financing. employee, that can go out with a good reOfficials at the local PCA (NYSE: PKG) sume and, hopefully, better themselves.” plant and with its corporate headquarters The companies employ about 150 people. in Lake Forest, Ill., did not return messages “With this expansion,” George Homan, seeking comment about its project. The compresident and CEO of the companies, said pany website indicates that it has operations in a news release, “we will ensure our con- in multiple U.S. cities and Hong Kong. tinued growth in the consumer products In Harrisonburg, according to the webpackaging business for decades to come.” site, the company manufactures shipping containers, high-end graphics packaging and W I T H YO U R N E W H O M E E-Commerce Work retail displays. The expansion is slated for the south A building permit application with the Opening in 2019, The Grove at Bridgewater Retirement Community will be the newest and west sides of the building, according to city states that PCA is expanding factory independent living home in the region. Amidst the abundant natural beauty of the Hook. The west side will have six bays for space and adding an electrical room onto its tractor-trailers. Shenandoah Valley, The Grove is the perfect place to live. You’re bound to fall in love plant. The permit lists the construction cost The changes will create about 9,000 at $500,000. with your new home. square feet of production space, he said, City-based Harman Construction Inc. is which is where the new employees would the contractor for the project. Reserve your new home today. Visit work. The rest would provide additional Shull said the Friendship Industries, brcliving.org/thegrove for more information. space for warehousing, allowing the com- Able Solutions and PCA expansions, along panies to leave space they’re leasing else- with Ariake U.S.A.’s $17 million project anat where. nounced Oct. 11, are good signs for the area. Hook said the companies also have em“This is a very exciting time for our local ployees working in space on the south end economy,” he said. “The activity level has of Harrisonburg leased from Interchange been tremendous, and we hope it will con1.800.419.9129 | 540.828.2540 Group, and those operations will continue. tinue.” 302 North Second Street The new space, he said, will allow Bridgewater, VA 22812 Friendship Industries and Able Solutions Contact Vic Bradshaw at 574-6279 www.brcliving.org/thegrove to go after more business in two emerging or vbradshaw@dnronline.com FROM PAGE 6
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Treating The Uncertain Health Care Industry Waits Out Insurance Clarity By PRESTON KNIGHT Special to the SVBJ
HARRISONBURG — While politicians trade barbs over the best treatment for the state of the nation’s health care system, the only thing that’s certain is that the prognosis is uncertain. As the Trump administration and Congress consider the direction of health insurance — primarily, what the future holds for the Affordable Care Act — the unknown places health care professionals in a bit of a wait-and-see approach as they treat patients. It has led to “disruption” and “anxiety,” said Mark Merrill, president and CEO of Valley Health System, which operates Page Memorial Hospital in Luray, Shenandoah Memorial Hospital in Woodstock, and Winchester Medical Center. “It creates a great deal of instability,”
he said. “It’s not good for the nation’s economy.” In the latest action to roil the industry, Trump announced in mid-October he would cut federal subsidies paid to insurers who serve low-income Americans, and it remained unclear as of press time how Congress would respond. Merrill, who also serves as vice chairman of the Virginia Hospital and Healthcare Association, is hopeful that elected officials in Washington will devise a plan that will benefit everyone and, at the least, put an end to the ambiguity. It’s all he can do in assessing the situation from afar. “We’re looking at two dramatically opposing views,” Merrill said of the politics of the matter. Perry Crowder, the revenue cycle director for the Blue Ridge Region of Sentara Healthcare, sums it up by saying: “It’s Nikki Fox / DN-R a pretty complicated, uncertain world right now. … I don’t know if anyone Charity Amison (left), a nursing care partner, and Erin Neff (right), a registered nurse at Sentara RMH Medical Center, assist Evelyn Spitzer Hedrick, 95, of Upper Tract, W.Va., during her stay at See UNCERTAIN, Page 9 Sentara RMH.
Harrisonburg, Va.
Open Enrollment Through Dec. 15 Uncertain
FROM PAGE 8
knows exactly what’s going to happen.” For the time being, he adds, “We haven’t changed anything that we’re doing day to day.” The immediate known for everyone is that the Affordable Care Act, commonly referred to as Obamacare, remains the law since efforts to repeal it have thus far come up short. Open enrollment begins today and runs through Dec. 15. Harrisonburg resident Timothy Jost, a professor emeritus at the Washington & Lee University School of Law and an expert on the Affordable Care Act, said it’s vital that people do their homework if they are enrolling in the Virginia health care marketplace. The uncertainty of its future is no reason for people to let the 45-day sign-up period go by without taking action, he said. “That’s like saying, ‘I’m not going to See UNCERTAIN, Page 10
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Charity Amison (right), a Sentara RMH Medical Center nursing care partner, talks with Evelyn Spitzer Hedrick, 95, of Upper Tract, W.Va., during her stay at Sentara RMH. Timothy Jost, professor emeritus at the Washington & Lee University School of Law and expert on the Affordable Care Act, said it’s vital that people do their homework if they are enrolling in the Virginia health care market place. Nikki Fox / DN-R
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Crowder: ‘Patients Are Becoming Much More Price Conscience Than In The Past’ of uncompensated care — treatment or services not paid for by an insurer or padrive downtown today because I might tient — goes up, Crowder said. Also, in such cases, money that is colget in an accident,’” Jost said. “This is the way things are now. It’s very important lected for patient care may arrive in greatthat people go to healthcare.gov and look er frequency through deferred payment plans, he said. Both factors have at the plans that are available.” a negative financial impact on In the field, meanwhile, the “It’s hard to hospitals and the health care insurance debate largely leaves professionals helpless as they know what to system, Crowder said. “Patients are becoming much field questions from those they tell patients. ... more price conscience than treat, area hospital officials conAt this point, in the past,” he said. “They’re cede. there’s nothing having to make hard decisions “It’s hard to know what to tell official.” sometimes. ‘Can I afford this?’” patients,” Crowder said. “We do In turn, this can lead to an refer them to the exchange web— PERRY CROWDER even more precise evaluation site and give them the 800-number [associated with it]. … At BLUE RIDGE REGION OF than usual of how a hospital sysSENTARA HEALTHCARE tem can function. this point, there’s nothing offi“We have to look every year to cial and not a lot of information. the future and try to determine Until we have a little more clarity about it, that’s about all we can do at what services we’re going to provide and what services we can afford to provide,” this point.” Some scenarios bring concern for hos- Crowder said. “We’re trying to predict what will be the effect [of the current marpital systems. Daniel Lin / DN-R If patients have trouble paying for the ket]. Right now, it’s business as usual.” Dr. Nance Lovelace examines Glen Knight of New Market at Valley Health Shenandoah Memorial health care received because of their inSee UNCERTAIN, Page 11 Hospital Multispecialty Clinic. surance plan or lack thereof, the amount
Uncertain
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‘Uncertainties’ Drive Insurers Away Uncertain
FROM PAGE 10
Earlier this year, Wayne Lipton, a New York-based health care expert, wrote about insurance uncertainty for Physicians Practice, a website for industry professionals. As Crowder mentions, it’s figuring out what the future holds that can be problematic, for large systems and independent physicians alike, Lipton writes. “Uncertainty has an effect on how physicians can plan for their practice and make decisions that affect their patients, their staff and their future,” he wrote, noting that regulatory changes, on top of what may become of Obamacare, would have major impacts. “There may be many opportunities for physicians in this new landscape, but unfortunately this uncertainty can breed fear, inactivity, and often, a ‘wait and see attitude.’ Physicians may hesitate to make appropriate decisions for their practice if they are uncertain.” Tough decisions have already been made at the insurance level. Doug Gray, executive director of the Richmond-based business group Virginia Association of Health Plans, has told The Winchester
Star that “uncertainties in the market” were driving insurers away. After a brief period in which much of the Shenandoah Valley and about 60 other Virginia localities were without an insurer for 2018, Anthem Blue Cross Blue Shield announced that it had reconsidered and would offer plans in certain parts of the commonwealth, The Star reported on Oct. 20. Those include Augusta, Shenandoah, and Page counties. “We’re fortunate in that regard, versus other areas of the country,” Crowder said of available coverage. But many questions remain on how health insurance will ultimately look. The diagnosis of the situation for health care professionals is that it’s a case of uncertainty, to be treated with moving forward with the status quo until told otherwise. “We give people financial advice and counseling. We work with them if they have a big out-of-pocket cost,” Merrill said. “We Daniel Lin / DN-R try to work with patients so that health Dr. Nance Lovelace examines Glen Knight of New Market at Valley Health Shenandoah Memorial care does not become an undue cost.” Hospital Multispecialty Clinic. “Uncertainty has an effect on how physicians can plan for their practice and make decisions that affect their patients, their staff and their future,” said Wayne Contact the Shenandoah Valley Business Journal at svbjnews@dnronline.com Lipton, a New York-based health care expert.
Memory Loss and Brain Health – A Memory C.A.R.E. Outreach presented by VMRC
The Personal Reality – A Caregiver’s Story
November 8, 2017
Tips to Encourage Brain Health
November 15, 2017
Stories from Alzheimer’s – Every Minute Counts a documentary highlighting the critical health crises of Alzheimer’s disease Free. All sessions are Noon-1 p.m. , Lunch provided.* VMRC Detwiler Auditorium, 1501 Virginia Ave., Harrisonburg *RSVP at 540-438-4205 or mpearson@vmrc.org one week prior to the event date. Funded in part through the VMRC Memory C.A.R.E. Endowment
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Gross Earned Bachelor’s Degree In Computer Programming, Information Systems Movers
FROM PAGE 3
range of IT assurance and advisory services and work in the areas of disaster recovery and business continuity planning, vendor management, and IT risk assessments, the release states. Gross earned a bachelor’s degree in computer programming and information systems from Shepherd University in Shepherdstown, W.Va., and a master of professional accountancy degree from the University of Texas at Arlington. The Information Systems Audit and Control Association has certified her at an information systems auditor. — Vic Bradshaw
Skolits Leaving Shentel As Chief Financial Officer, Vice President HARRISONBURG — Adele Skolits, vice president and chief financial officer of Shenandoah Telecommunications Co. (NASDAQ:SHEN), has resigned from that post effective Nov. 7.
The Edinburg-based company announced her departure Oct. 23. She’s been selected as the CFO of privately held Buckeye Broadband in Toledo, Ohio, a move that puts her closer to family members. Earle MacKenzie, the company’s retiring chief operating officer, will fill the role on an interim basis. He was Shentel’s CFO from 2003 until Skolits moved into that role in 2007. — Vic Bradshaw
First Bank & Trust Taps Assistant Vice President For City Branch HARRISONBURG — First Bank & Trust Co. has named Umar Ali an assistant vice president and manager of its Harrisonburg branch. A Harrisonburg resident, Ali is a James Madison University graduate. He previously worked as a branch manager with Wells Fargo & Co. and business development officer for Blue Ridge Bank.
First Bank & Trust is a subsidiary of Lebanon-based First Bancorp (OTC: FBLV) with branches in Harrisonburg and Bridgewater and a loan-production office in Bridgewater. It operates 21 branches in Virginia and Tennessee and five loan production offices in Virginia.
Augusta Economic Development Honored With Gold Excellence
WAYNESBORO — Darlene Jones, bookkeeper, was recently chosen employee of the quarter at McClung Cos. Established in 1992, the award is based on recommendations from fellow workers and recognizes McClung employees who display extraordinary dedication to their jobs. According to a company press release, Jones has worked 23 years at McClung and lives in Crimora. McClung, based in Waynesboro, provides graphic communication services.
VERONA — Augusta County Economic Development won a Gold Excellence in Economic Development Award for its website, augustaVAbusiness. com, a project in the category of General Purpose Website of the International Economic Development Council. The honor, according to an Augusta County press release, was presented during the IEDC annual conference held Sept. 1720, in Toronto. Augusta County’s Economic Development website, redesigned in 2016, offers real-time accessibility for industrial prospects, site selection consultants, existing or new businesses looking to build or expand, small business and entrepreneurs, the release states. The International Economic Development Council is a nonprofit membership organization serving economic developers, according to the release.
— Staff Reports
— Staff Reports
— Vic Bradshaw
McClung Recognizes Jones As Employee Of The Quarter
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Harrisonburg, Va.
Public Comment Ends For SVRA By VIC BRADSHAW Daily News-Record
HARRISONBURG — A 30-day comment period about a potential midcontract commercial carrier switch for Shenandoah Valley Regional Airport ended in mid-October. Now, airport officials are in a holding pattern while U.S. Department of Transportation officials decide what to do about ViaAir’s continued service to the Valley. “We hope that in the next 30 days we’ll know the direction the DOT wishes to proceed,” Greg Campbell, executive director of the Weyers Cave airport, said Oct. 23. “We’re hopeful that they’ll direct an award to SkyWest [Airlines] to replace ViaAir sometime in the first quarter of 2018.” ViaAir has been on the job for less than a year. It had performed well in several other communities before launching service at SVRA on Nov. 30. In bidding to serve the community under an Essential Air Service contract, the Orlando, Fla.-based company pledged to provide 12 flights a week to and from Charlotte Douglas International Airport in North Carolina and complete 98 percent of them. It was to receive a subsidy of up to $3.8 million annually to serve the airport. But its performance has been erratic, with periods where a number of lights were canceled, combined or significantly delayed in a short period. When the Shenandoah Valley Regional Airport Commission unanimously voted July 20 to ask for a carrier change, airport officials said its records indicate that the company had canceled 27 flights in the past 79 days. Last month, the airport commission endorsed SkyWest’s proposal to provide service to Washington Dulles International Airport and Chicago O’Hare International Airport on 50-seat regional jets under the United Express brand. The St. George, Utah, company has said it would serve the community for a $2.9 million subsidy. Because of the federal subsidy SkyWest would receive under the EAS program, Campbell said Transportation Department officials will dictate when any change would happen and can compel ViaAir to continue serving the market until another carrier can begin service. Contact Vic Bradshaw at 574-6279 or vbradshaw@dnronline.com
SHENANDOAH VALLEY BUSINESS JOURNAL
Tuesday, October 31, 2017
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Local Ledger Central Valley Area Home Sales Median Price Harrisonburg Rockingham Shenandoah Page Augusta Staunton Waynesboro
Sept. 2017
Sept. 2016
Pct. Change
$174,500 $196,200 $200,000 $180,000 $195,000 $174,400 $168,500
$159,000 $220,500 $180,000 $170,000 $195,000 $144,000 $125,000
9.75% -11.02% 11.11% 5.88% 0.00% 21.11% 34.80%
Days On Market Harrisonburg Rockingham Shenandoah Page Augusta Staunton Waynesboro
Sept. 2017
Sept. 2016
Pct. Change
19 47 91 101 41 37 31
34 63 124 217 40 56 42
-44.12% -25.40% -26.61% -53.46% 2.50% -33.93% -26.19%
Units Sold Harrisonburg Rockingham Shenandoah Page Augusta Staunton Waynesboro
Sept. 2017
Sept. 2016
Pct. Change
34 69 47 14 73 26 28
39 90 59 13 81 29 37
-12.82% -23.33% -20.34% 7.69% -9.88% -10.34% -24.32%
Sources: Funkhouser Real Estate Group; Real Estate Business Intelligence
Retail Sales (in millions) Harrisonburg Rockingham Shenandoah Page Augusta Staunton Waynesboro
Aug. 2017
$119.3 $63.6 $36.3 $17.2 $48.5 $32.5 $41.2
Source: Weldon Cooper Center for Economic and Policy Studies
Unemployment Harrisonburg Rockingham Shenandoah Page Augusta Staunton Waynesboro
Aug. 2017
July 2017
Aug. 2016
4.7% 3.3% 3.4% 4.3% 3.4% 3.6% 3.9%
4.9% 3.4% 4.2% 4.4% 3.5% 3.7% 4.0%
5.4% 3.7% 3.8% 4.6% 3.7% 4.0% 4.3%
Source: Virginia Employment Commission
Labor Force Harrisonburg Rockingham Shenandoah Page Augusta Staunton Waynesboro
Aug. 2017
July 2017
Aug. 2016
24,426 40,335 21,270 11,801 37,536 12,232 10,385
24,903 41,377 21,730 12,018 38,235 12,384 10,508
23,788 39,952 21,082 11,765 37,057 11,899 10,072
Source: Virginia Employment Commission
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Harrisonburg, Va.
Double Dunkin’ Second Spot For Doughnuts, Coffee To Open In Harrisonburg By VIC BRADSHAW Daily News-Record
HARRISONBURG — Atul Patel is ready to double-dunk in the Harrisonburg market. Patel, who opened the city’s first Dunkin’ Donuts in February 2015, is preparing for a second location in Harrisonburg’s southern tip. He’s buying the building that houses the Blue Ridge Event Center and converting it into a standalone store. The building is between U.S. 11 and the Microtel Inn & Suites on Pleasant Valley Road, just off Interstate 81 exit 243. “It’s close to the exit, and there’s a lot of traffic on Route 11,” Patel, 33, said of why he liked the location. “We should also get traffic from I-81.” Part of the event center structure will be torn down, he said, creating space
for a drive-thru lane. The free-stand- store hours will be 5 a.m. to 9 p.m., the ing building that remains will have same as the University Boulevard lobetween 2,300 and 2,400 square feet, cation. larger than the 2,000-square-foot space While the building has plenty of he leases on University Boulevard. restaurants and convenience stores A southern New Jersey naaround it, Dunkin’ Donuts would tive who lives in Northern be the only chain fastVirginia, Patel also opfood restaurant with a erates the Dunkin’ drive-thru along U.S. Donuts franchise 11 between the McIt’s close to the exit, in Staunton and Donald’s at 2387 S. and there’s a lot of three in CharlotMain St. and the tesville. Burger King in traffic on Route 11. We He said busiMount Crawford. should also get traffic ness at the UniPatel said he’ll versity Bouleprobably hire from I-81. vard store is 30 to 35 people good. initially to find Atul Patel, Construction at the 20 employees, opened city’s first the Pleasant Valley including 14 or 15 Dunkin’ Donuts Road building is exfull-timers, needed to pected to start in early run the new store. He’s November, with the new begun adding to his staff in Dunkin’ likely serving its first anticipation of its opening, workdoughnuts, coffee and sandwiches in ing those employees at the University mid- to late January, Patel said. The Boulevard store as training.
“
Some longtime University Boulevard employees will transfer to the new store, he said. “I have a lot of employees that live in that area,” Patel said. “They might want to be closer to home, for their families.” The chain is in the process of making one and possibly two major changes, he added. A menu simplification aimed at speeding up customer service is expected to be rolled out locally in March, Patel said, and parent company Dunkin’ Brands Inc. announced in August that it’s experimenting with dropping “Donuts” from its name and rebranding its stores as “Dunkin’.” Based in Canton, Mass., the first Dunkin’ Donuts opened in 1950, according to the company’s website. It now has more than more than 8,500 restaurants in 41 states and another 3,200 international stores in 36 countries. Contact Vic Bradshaw at 574-6279 or vbradshaw@dnronline.com
Harrisonburg, Va.
SHENANDOAH VALLEY BUSINESS JOURNAL
WhiteWave Foods Getting $60M Expansion
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DanoneWave is investing up to $60 million in the WhiteWave Foods Co. facility near Mount Crawford, according to Gov. Terry McAuliffe. The company will create up to 49 new jobs as it expands its warehouse facility.
By NOLAN STOUT
ities will be provided through the Virginia Jobs Investment Program. Anas said the grant and proximity HARRISONBURG — DanoneWave is to markets in the area was a driving investing up to $60 million in factor in Rockingham besting the WhiteWave Foods Co. facilPennsylvania for the project. “This plant ity near Mount Crawford. State Sen. Emmett Hanger, has evolved Gov. Terry McAuliffe anR-Mount Solon, said the grant nounced Oct. 18 that the over the years strengthens economic growth company will add production and continues and opportunities in the Valcapacity and expand its wareley. to provide a house at the facility at the “This plant has evolved strong skilled corner of U.S. 11 and Va. 257, over the years and continues workforce creating up to 49 new jobs. to provide a strong skilled “It adds to the whole susworkforce in the food and bevin the food tainability of the business enerage industry,” he said in the and beverage vironment here,” said George release. industry.” Anas, the county’s economic Secretary of Commerce and development director. Trade Todd Haymore called — SEN. EMMETT HANGER WhiteWave makes Silk R-MOUNT SOLON the investment a “big win” for plant-based foods and beverRockingham County. ages, and Horizon Organic, In“[T]he impact of this thrivternational Delight and Land O Lakes ing industry cannot be overstated,” he products at the Rockingham County facility. Paris-based Danone acquired WhiteWave Foods in 2016, and the business was renamed DanoneWave. DanoneWave spokesman Michael Neuwirth said about 500 people work at the plant, making the company the 15th-largest employer in the county, according to the Virginia Employment Commission. Neuwirth said the expansion will add capacity to packaging lines, increasing output from the facility. He said construction will begin “as soon as possible,” but didn’t know how long it would take. Virginia competed against Pennsylvania for the project, which Anas described as a hard-fought battle. “Any time you’re dealing with a corporate entity ... you’re not only competing with other states, but you’re competing with other plants,” Anas said. The Virginia Economic Development Partnership and Shenandoah Valley Partnership helped Rockingham officials secure the deal. DanoneWave received a $700,000 incentive grant from the Virginia Investment Partnership program for the project, the release says. Funding and services to support DanoneWave’s employee training activ-
Tuesday, October 31, 2017
Daily News-Record
Daniel Lin / DN-R
said in the release. “We thank DanoneWave for this significant investment and for supporting the growth of food and beverage in Virginia and the Shenandoah Valley.” Anas said the announcement is the latest in a slew of economic growth in the county. Five businesses — Merck & Co., MillerCoors, WhiteWave Foods, Virginia Poultry Growers Cooperative and Wal-Mart Stores Inc. — have invested at least $350 million in expansions and new locations in Rockingham County in the past two years, including
the Oct. 18 announcement. WhiteWave also invested $69 million to expand the facility in 2013, creating 36 jobs. “The Shenandoah Valley has emerged as a hub in the food and beverage manufacturing industry,” McAuliffe said in the release, “and growing this critical sector is an important part of our efforts to diversify and build the new Virginia economy.” Contact Nolan Stout at 574-6278 or nstout@dnronline.com
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Tuesday, October 31, 2017
SHENANDOAH VALLEY BUSINESS JOURNAL
Harrisonburg, Va.