GLBM March 2016 by M3 Group Publications

BUSINESS MONTHLY G R E AT ER LANS ING

MARCH 2016

MILLENNIALS CHANGE THE FACE OF HEALTH CARE MYRUN CHANDLER, LANSING COMMUNITY COLLEGE STUDENT AND PART OF THE MILLENNIAL GENERATION

In this issue •

THE ECONOMIC IMPACT OF THE FLINT WATER CRISIS

•

HIGHER DRUG COSTS IN THE U.S. DRIVE PATIENTS TO BUY ONLINE

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MEET THE ENTREPRENEURIAL AWARDS JUDGES

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MARCH 2016 ON THE COVER Flint Water Crisis ..........................................................................8 Consumers Search for Lowest Prescription Cost ..........................................................10 2016 Entrepreneurial Awards Judges ................................................................................12 Millennial Input Changes the Health Care Experience..............................................................22

BUSINESS MONTHLY GRE AT E R L A NS I N G

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22 NEWS

Cost of Oil May Lead to Less Economic Growth ........................................................................ 6

DEPARTMENTS Commentary.................................................................................................................................................. 4

MILLENNIALS CHANGE THE FACE OF HEALTH CARE MYRUN CHANDLER, LANSING COMMUNITY COLLEGE STUDENT AND PART OF THE MILLENNIAL GENERATION

In this issue •

THE ECONOMIC IMPACT OF THE FLINT WATER CRISIS

•

HIGHER DRUG COSTS IN THE U.S. DRIVE PATIENTS TO BUY ONLINE

•

MEET THE ENTREPRENEURIAL AWARDS JUDGES

Behind the Scenes.................................................................................................................................... 16 Economy ...................................................................................................................................................... 18 Lansing at a Glance ................................................................................................................................. 20 Man on the Street ................................................................................................................................... 28 Real Estate .................................................................................................................................................. 32 Business Calendar ................................................................................................................................... 33 Notable News ............................................................................................................................................ 34

Cover photography by Erika Hodges

The Greater Lansing Business Monthly | Volume 29, Issue 3

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The Greater Lansing Business Monthly is published monthly by M3 Group at 614 Seymour Street, Lansing, MI 48933. Periodicals postage paid at Lansing, Michigan USPO. USPS number 020w807.

Subscriptions: Subscriptions are available at $22 per year for postage and handling or $38 for two years. Call (517) 203-0123 or visit lansingbusinessnews.com to subscribe. Postmaster: Send address changes to The Greater Lansing Business Monthly, 614 Seymour Ave., Lansing, MI 48933. Send additional subscription requests and address changes to The Greater Lansing Business Monthly, Inc., 614 Seymour Street, Lansing, MI 48933. Copyright © 2016 The Greater Lansing Business Monthly, Inc. All rights reserved. Editorial Office: 614 Seymour Street, Lansing, MI 48933 lansingbusinessnews.com 2

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Easter Feast JOIN US for an annual family tradition at the CROWNE PLAZA LANSING WEST MARCH 27TH, 11:00 A.M. - 3:00 P.M. Bigger & better every year! Kick off your Easter celebration with mimosas, then enjoy hand-carved prime rib, housemade soups, salads, lavish hot & cold displays, a wide array of seasonal dishes, desserts & more! Seats fill up quickly, so make your reservation today: 517.323.4190 or yourfriends@bordeauxlansing.com Remember to bring your camera & keep an eye out for the Easter Bunny! Visit us on Facebook or www.bordeauxlansing.com to view the full menu when itâ&#x20AC;&#x2122;s announced and other special details!

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Publisher: Tiffany Dowling tiffany@m3group.biz Sales Manager: Jennifer Hodges jhodges@m3group.biz Media Specialist: Jill Bailey Account Managers: Megan Fleming Manny Garcia Production Director: Kelly Mazurkiewicz Art Director: Mark Warner Communications Director: Ami Iceman-Haueter Graphic Designers: Nikki Nicolaou Kerry Hidlay Photographer: Erika Hodges Editor: Alicia Pilmore Web Manager: Skylar Kohagen Event Calendar Manager: Jaime Hardesty

GLBM Editorial Board: April Clobes — President and CEO, MSU Federal Credit Union Trish Foster — Senior Managing Director & COO, CBRE|Martin Lisa Parker — Director of Alumni Career and Business Services, Michigan State University Alumni Association Deb Muchmore — Partner, Kandler Reed Khoury & Muchmore Tom Ruis — Vice President, Fifth Third Bank

HEALTH CARE: IS THERE AN APP FOR THAT?

illennials are changing the world. They are infiltrating our businesses and forcing generations before them to take notice, evolve as people and shift business practices. And, they are not apologizing for the inconvenience. In fact, they are as confused by the way you and I have been running things as we are by how they want to live, work and play today. Health care is just one of the areas that is making changes to accommodate a very large generation of 80 million. Researchers have been paying attention to the young professionals seated down the hall from you, and their findings are well documented. As a marketer and a journalist, I am sometimes obsessed with understanding why a generation’s behaviors shift and what it will mean long term. The significance of Millennials’ decision making will also impact these areas: 1. Technology: They are overly connected 2. Community and family: They are most important but it’s tougher to connect on a personal basis 3. Work: They need creativity and flexibility 4. Real estate: Most do not want to own a home 5. City planning: Millennials are moving back to urban areas 6. Health care: They have it, but it needs to be personalized. It’s a new world where most organizations understand that the need for change is crucial. Doctors and hospitals are responding accordingly. Millennials are more in tune with preventive medicine and don’t actually want to have a doctor of their own. In fact, according to the 2015 State of the Connected Patient report, 71 percent of Millennials would prefer to use an app when dealing with their health care. And 41 percent ask for a cost estimate before seeing a doctor. They are more willing to avoid large medical bills than to go get the procedure. As part of a “drive-thru” generation, Millennials see primary care physicians as a last resort and consider retail clinics or urgent care options as the way to go. Hence, the 900 percent increase in these centers. These transitions in health care should shed light on how other businesses might need to change. A generation raised on the Internet and Google needs instant gratification. Figuring out how this plays a role in your business long term should be called your Millennial Strategy. Don’t wait to plan. Be dynamic in all you do,

Doug Klein — Executive Director, Mason Area Chamber of Commerce Mark Hooper — Partner, Andrews Hopper Pavlik Diontrae Hayes — Legislative Director for State Senator Coleman Young, II

G R E AT E R L A N S I N G B U S I N E S S M O N T H LY

Tiffany Dowling | Publisher

MARCH 2016

NEWS

COST OF OIL MAY LEAD TO LESS ECONOMIC GROWTH BY ALLISON SPOONER

With the price of a barrel of oil down to less than $30 (down from $100) you may be breathing a sigh of relief every time you approach a gas pump and see prices around two dollars or less per gallon. This means that filling your tank puts less strain on your wallet and that money can go toward other bills or even into your savings. Less money into our gas tanks means more money back into the economy, and in states like Michigan that don’t produce a lot of oil, when oil prices drop, it’s typically good news all around. But these perks are often indicators of something sinister lurking beneath the surface. If we were to look past Michigan, past the U.S. even, we would see some alarming sights. We would see oil tankers sitting idly off the coast of Iran, filled with up to 50 million barrels of crude oil. We would see 61 percent less active oil tankers than we saw last year and we would see once booming oil towns now sitting silent and still. So, what do these contrasting visions mean?

WE WOULD SEE 61 PERCENT LESS ACTIVE OIL TANKERS THAN WE SAW LAST YEAR AND WE WOULD SEE ONCE BOOMING OIL TOWNS NOW SITTING SILENT AND STILL. THE CONTRADICTION To put it simply, it means there is a lot of oil out there. In less than a decade, the fear radiating from the industry has changed from a shortage of oil to an excess. “Because of hydraulic fracturing and advances in technology, the U.S. has doubled the amount of oil we bring to the global market,” says Charles Ballard, an economics professor at Michigan State University. While this excess could have been offset if other countries had cut back production, they 6

didn’t. Ballard hypothesized that there are many reasons for this and the theories range from the economic to geopolitical, but are mostly speculation at this point. Whatever the reasons, the result is an excess of oil which could be worse than a shortage. A shortage leads to work. Rigs fire to life, crews are dispatched and small oil towns run at full capacity in order to help fill the shortage. And, when there is just enough of a supply to meet the demand, the market is in balance and prices are stable. But when the supply is in abundance and there is more than meets demand, we begin to see more than just low gas prices. THE BACKLASH The Stock Market: The first lesson we learn in economics class is the law of supply and demand – when demand drops, price drops. And, for a stock market where some of the major players are energy companies like Chevron and ConocoPhillips, this is bad news. Their profits are down and as a result their stocks have plummeted. “A shaky stock market brings on fears of a recession,” said Ballard. “Even though all other signs indicate a growing economy, analysts are caught by conflicting signals.” And it’s not just analysts that are worried by the numbers they see. The Dow has dropped 1,800 points and for the general public, this means their futures are on shaky ground when it comes to their investments and their 401(k) investments. The Job Market: Michigan may be seeing the perks that come with a lower price at the pump, but as prices continue to drop, the unemployment rates across the country may continue to rise. Ryan Freeman, a construction manager for a Canadian/American crude oil transporter, is already seeing signs of this. His line of work, transporting oil the large companies have already purchased, takes him to a fair share of “oil towns” and it’s these towns that are suffering. “Towns that were once booming are now slowing down,” he said. And it’s affecting his business too: “When prices are down, no one can pay to

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transport, that means a lower profit margin, and that’s typically when cuts start. It likely means not one, but several rounds of layoffs.” This seems to be the pattern around the country, with oil producing states seeing the biggest drops. Government statistics show that the energy industry slashed 130,000 jobs in 2015. Losses in oil-related jobs will most likely up that number. “When things like this happen, people are seen as numbers,” said Freeman. “The companies need to save money and things like experience and longevity just don’t matter anymore.” The Little Guy: And it’s not just large companies and businesses that are affected. Freeman has seen the trickle effect start to reach the mom and pop businesses of these rural oil towns. “These towns might only have a gas station, a diner and a hotel, and they depend on large oil projects to fill those businesses. When these projects don’t come, they are in trouble.” And right now, they’re not coming. While Freeman typically knows by January what he will be working on for the rest of the year, like these small businesses, he’s still waiting. “The companies that fund these jobs just don’t know what kind of money they are going to have,” he said. While there are conflicting opinions about how long the drop in price will continue, at least one solution has gone into effect as the Organization of Petroleum Exporting Countries’ oil ministers have agreed to cut back on production. The agreement should lead to more stable oil prices. And while stable prices may bring on a rise at the pump, the overall effect across the U.S. will leave us all breathing a sigh of relief. Allison is a freelance, content wizard. She writes content that helps businesses in Lansing and beyond tell their stories, educate their customers, and promote their brands. She is the Content Manager at StartupLansing, an online publication about startup activity in Lansing, regularly contributes to Capital Gains and loves helping businesses bring their words and ideas to life. To follow her writing journey and see a list of her professional content services, visit her website at theresistantwriter.com or find her on twitter at @allyspoon.

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IN FLINT, A COST-SAVING CHOICE WILL HAVE CONSEQUENCES FOR DECADES BY EMILY WENSTROM

n Flint, a move meant to resolve a budget deficit has turned into a bottomless well of new financial issues piling onto a serious humanitarian crisis. Historically a GM town, Flint was built on the salaries of the company’s factory employees. But as manufacturing jobs got moved overseas, Flint’s employment took a dive. Today, the average income in Flint is $25,000, and more than 40 percent of Flint residents live below the poverty line.

WARNING SIGNS It started with complaints about the water’s smell and discoloration. Then there were a growing number of complaints about physical issues residents claimed were caused by the water, such as rashes on the skin and hair loss. Among a number of other problems — including an outbreak of Legionnaires’ Disease that killed 10 people — testing on residents’ taps showed the water held excessive amounts of lead. But instead of taking steps to address

MONEY AND EVEN CLEAN WATER WON’T BE ENOUGH TO ERASE THE DAMAGE FROM FLINT’S HEALTH AND ECONOMY ... THE MISSTEP MAY HAVE SET FLINT UP FOR ANOTHER GENERATION OF ECONOMIC BLOWS ... As the city’s population and salaries dropped, so did the city’s tax pool. By 2011, the City of Flint had amassed a $15 million deficit. Governor Rick Snyder appointed Ed Kurtz as an emergency manager to address the situation. Kurtz identified Flint’s water supply from Detroit as a major leak in the city’s budget. The solution seemed simple. By moving to the new Karegnondi Water Authority (KWA), Flint could reel in a good $19 million over the course of eight years. While the new water system was just the solution Flint needed, it wouldn’t be ready until 2016. Meanwhile, Detroit threatened to cut Flint off in 2014, leaving the city in a pinch. The city needed water immediately, and Kurtz turned to the closest available source — the Flint River. 8

the water system, residents’ taps were rerouted through neighbors’ pipelines and written off as anomalies, not the citywide norm. Around the same time, GM’s Flint plant started noticing corrosion damage to engine parts due to the high levels of chloride in the water. After a number of time-consuming and expensive efforts to stop the damage, GM had to find an alternative water source. Fortunately, since nearby Flint Township used to be part of the City of Flint, the necessary pipelines were already in place to make a switch possible. Though the plant’s immediate problem was resolved, it led many of the plant’s workers to question the water quality for home use. Many plant employees started using filters on their home

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taps, or switched to bottled water and advised friends and family to make the switch, too. And yet for a period of about 18 months, the city continued to insist the water was fine. This continued even after an EPA water specialist Miguel Del Toral filed a report stating water at one resident’s home was found to have 13,200 parts per billion of lead, well above the EPA federally accepted action level of 15. The cause? The state had not treated the water properly to prevent corrosion in the pipelines. Del Toral was swept aside while EPA officials tried to resolve the issue behindthe-scenes with government officials. This dragged on for four more months until outside researchers published their own findings about Flint’s water. Meanwhile, Del Toral took his information to Marc Edwards, an environmental sciences professor at Virginia Tech who had helped to expose dangerous lead levels in D.C. in the 2000s. Edwards performed his own research on Flint’s water and confirmed Del Toral’s findings — lead levels in the city were dangerously high. On the tail of Edwards’ report, Dr. Mona Hanna-Attisha, director of the pediatric residency program at Hurley Children’s Hospital and assistant professor of pediatrics at Michigan State University, performed her own research, testing the lead levels in blood of children in the city. “When pediatricians hear about lead anywhere, we freak out. We know lead. Lead, as you said, is a known potent, irreversible neurotoxin,” HannaAttisha said in an interview with Democracy Now. “What we found was alarming, but not

NEWS

surprising, based on what we knew about the water. The percentage of children with elevated lead levels tripled in the whole city, and in some neighborhoods — actually, it doubled in the whole city, and in some neighborhoods, it tripled. And it directly correlated with where the water lead levels were the highest.” In September 2015, the Hurley Medical Center took the atypical step of releasing their findings in a press conference rather than a medical journal to get the information out to the public. The next month, Flint switched back to the Detroit water system. AFTERMATH Unfortunately, so much damage was caused by the prolonged pipe corrosion that switching the water source wasn’t enough. In January 2016, President Barack Obama rounded up $5 million in aid for Flint, declaring the situation a federal emergency. This came just weeks after Governor Snyder deemed the situation a state emergency, and the U.S. attorney’s office opened a federal investigation into the crisis. Later in the month, Michigan’s Legislature passed a bill to deliver $28 million to address the fallout from the situation. But this will be just a drop in the bucket. In a letter to President Obama, Governor Snyder reported it will take an estimated $767,419,500 to completely replace the city’s pipelines — and the city can’t use the pipelines until this is done. The President announced an additional $80 million of assistance later in the month, with plans for even more in the works. In the meantime, residents are being provided with water filters to use at home, and financial and bottled water donations have poured in, fueled by the example of a long list of celebrities including Jimmy Fallon, Madonna, Rosie O’Donnell and more. SETTING UP THE NEXT GENERATION But money and even clean water won’t be enough to erase the damage from Flint’s health and economy. Perhaps worst of all, the misstep may have set Flint up for another generation of economic blows, based on scientific trends. Much of the damage from lead poisoning, particularly in children, can’t be undone. These include developmental impairments, serious chronic conditions and a drop in IQ — even legally permissible levels of lead can lead to a drop in a child’s IQ. While studies attempting to prove a direct, linear correlation between IQ and salary

ranges have been inconclusive, this certainly sets up children who are already economically disadvantaged to start life from an even greater disadvantage. One study published in the New England Journal of Medicine showed that even a legally permissible blood-lead level of 10 micrograms per deciliter led to an average 7.4-point decrease in IQ in children ages 3 to 5. This may not sound like a significant reduction, but consider: Even a five-point drop in children’s IQs nationally would lead to a 57 percent increase in the number of children categorized as “mentally deficient” — having an IQ lower than 70, according to data from a study published in Environmental Health News. Beyond the significance of an individual’s IQ, multiple studies have found correlations between lead levels in an area and that area’s violent crime rates.

from 2014 projected that even before the Flint crisis, the impact of lead poisoning on children throughout the state would lead to $205 million in lost lifetime earnings; $105 million in criminal justice system costs; $18 million annually in health care costs; and $2.5 million annually in special education costs.

MUCH OF THE DAMAGE FROM LEAD POISONING, PARTICULARLY IN CHILDREN, CAN’T BE UNDONE. Ultimately, what this adds up to is that Flint’s next generation will continue to pay immeasurable personal and economic consequences of the city’s water crisis for decades to come. Emily Wenstrom writes about geek culture, creative writing, lifestyle topics and more; she also advises clients in content strategy. Learn more at EmilyWenstrom.com.

Over time, these issues will lead to even greater economic hits for Flint and the state at large — a University of Michigan study

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AS PRICES RISE, CONSUMERS SEARCH FOR THE LOWEST POSSIBLE PRESCRIPTION COST BY MICKEY HIRTEN

Filling a prescription at one of the region’s pharmacies is to encounter the health care realm of multi-national drug companies, insurance giants, health plan purchase agreements and opaque pricing. The system ensures drug prices paid by consumers in the United States are the highest in the world. And by many measures, they are rising. Whereas governments in many countries regulate drug pricing and purchasing, in the United States it is generally a market transaction with many buyers and few sellers, both of which inflate prices. Drugs are a very significant component of health care costs, said Renee Rivard, director of Total Compensation and Wellness at Michigan State University (MSU), which provides health care benefits for 30,000 retirees, employees and family members. Large employers and those working with large coalitions have leverage with drug companies when negotiating prices. “Anytime you have many people, the pharmacy benefit manager can take that volume and negotiate with pharma [shorthand for the drug industry] to lower the cost because it brings more business to them,” Rivard said. “We have a specific consultant well-versed in the language of pharma. They understand where the fees are hidden in contracts. They let us uncover every stone and rock to make sure we have the best prices. Are we getting 100 percent of the rebate money? If you buy many drugs in volume there are many rebates that come along with that.” MSU’s approach to prescription drug pricing is similar to other health plans that negotiate with drug companies using their volume as leverage. But these individually negotiated agreements mean base prices vary widely. “Some of the fluctuation in drug prices has to do with the general volatility in the drug market. You saw huge cost savings with

generic medications. Now we see a situation where certain manufacturers no longer produce those drugs and it causes generic prices to escalate,” said Eric Roath, director of professional practice for the Michigan Pharmacists Association. For those without health insurance the costs and choices are particularly daunting. The Michigan Department of Health and Human Services (MDHHS) has developed a website called MichiganDrugPrices.com to help consumers “save money by providing information and access to resources to find lower priced medications.”

TOTAL PRICE FOR THE GENERIC VERSIONS OF: ACTOS 30 MG CYMBALTA 20 MG LIPITOR 20 MG PLAVIX 75 MG SINGULAIR 10 MG

$83

HEALTHWAREHOUSE.COM

$117 COSTCO

$603

WALGREENS

$827 RITE AID

“The pricing on this website reflects the “usual and customary” prices reported by participating pharmacies for generic Medicaid prescriptions filled during this survey period,” MDHHS explained. The website features pricing for the 150 most commonly prescribed drugs in Michigan and it cautions that because prescription drug prices are changing constantly, it is important to double check the information with a pharmacy. Also addressing high prescription prices are the discount programs offered by drug companies and retailers like Meijer.

$855

“Our free prescription program includes leading oral generic Source: Consumer Reports The site features a database antibiotics with a special focus comparing drug prices, details on prescriptions most often filled about retail discount drug programs and assistance for children, prenatal vitamins and medications programs available to help people lower drug costs. for those with diabetes (metformin) and high cholesterol,” Meijer’s Public Relations Manager, The drug price comparison database is basic; Joe Hirschmugl, said in an email. “Since its a user provides a zip code, a prescription drug inception in 2006, the program has filled nearly name and the strength. Depending on the drug 29 million free prescriptions, saving Meijer and zip code location, the search may return customers more than $410 million.” dozens of pharmacies along with the prices they have submitted to MDHHS. The area’s retail pharmacies have similar programs. Rite Aid has its “Rx Savings Program” A search using a downtown Lansing zip which, among other benefits, offers a 30-day code illustrates the wide variation in pricing supply of select generics for $9.99 and a 90-day for common prescription drugs. A query for supply for $15.99. Walgreens has a Prescription omeprazole magnesium, the generic version of Savings Club that requires a fee ($20 for Prilosec OTC 20mg., found prices for 28 pills as individuals/$35 for a family) and promises savings varied as $18.69 at the Rite Aid Pharmacy at 3700 on a 90-day supply of value-priced generic drugs W. Saginaw – the lowest, $26.40 at the Ingham at savings ranging from $50 to $118. Regional Pharmacy and $59.11 at Pharmacy Plus at 915 E. Michigan Ave. – the highest. All of these compete with mail order suppliers, notably HealthWarehouse.com, whose prices can be significantly lower than retail outlets. CVS

In January, Consumer Reports released a five-drug pricing survey of wholesale outlets like Costco and Sam’s Club, big-box stores like Walmart and Kmart, grocery stores and pharmacies. Consumer Reports put it this way: “Prices can vary widely from store to store, even in the same town. The trick is to shop around.”

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FEATURE

2016 ENTREPRENEURIAL AWARDS JUDGES James Anderton

Attorney at Loomis, Ewert, Parsley, Davis & Gotting P.C. Focusing on estate planning, business formation, shareholder/ ownership disputes and tax law, James “J.V.” Anderton advises clients in a variety of tax-related fields. He also has extensive ANDERTON experience representing entrepreneurs and business start-ups in all phases of the growth cycle, including finding additional financing and capital. Anderton was the lead author for an article related to the special allocation of gains between partners in 1031 transactions published by the Journal of Real Estate Taxation in 2010. He won the 2007 Tax Writing Competition at the Thomas M. Cooley Law School for his article on non-spousal rollovers under the Pension Protection Act of 2006. In March 2012, Anderton was named one of the “Top 5 Under 35” by the Ingham County Bar Association, and was honored with the distinction of being named as one of the “10 Over the Next 10,” an award given to the next generation of business leaders selected by the Lansing Regional Chamber of Commerce and the Grand River Connection. He became licensed to practice in Florida in 2013. Anderton received his LL.M. in Taxation from Western Michigan University Thomas M. Cooley Law School in 2008 and is now an adjunct professor for the school in the LL.M. in the Taxation program. He has spoken on various topics related to estate planning and fiduciary issues (both in the corporate setting and estate/ trust administration setting), as well as 1031 taxdeferred exchanges. 12

Bruce J. Dunn

CPA, CGMA, CGFM Principal, Audit department at Maner Costerisan

DUNN

Bruce Dunn joined Maner Costerisan in 1979 and serves on its board of directors. He specializes in the areas of consulting and auditing and is well known for his services to closelyheld businesses.

Having served as the president at Maner Costerisan for nearly eight years, Dunn is also a Charter Global Management Accountant (CGMA). His experience in running a CPA firm with currently more than 100 employees allows him to analyze issues from an owner’s perspective. This assists him in consulting with business owners of all sizes. His experiences have allowed him to assist clients with software conversions, redesigning payroll and bonus systems, assisting with transitions in ownership of family owned businesses, renegotiating lines of credit with banks and a host of other areas. His statewide reputation has CPAs from across the state calling him for assistance on a variety of issues on a regular basis. Dunn is particularly proud of the long lasting relationships he has built with the clients he serves. He is a graduate of Western Michigan University. Dunn is a member of the American Institute of Certified Public Accountants (AICPA), Michigan Association of Certified Public Accountants (MICPA) and Grand Ledge Rotary Club (president in 2001/2002). Additionally, he is a past board member of the Lansing Jaycees, past president of Highfields Board of Directors, an organization serving

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disadvantaged youth, and immediate past president of Maner Costerisan, serving in that position from 2004 to 2011. He has also served on the Greater Lansing Business Monthly Entrepreneurial Awards judging panel for more than a decade, and is excited to be a judge again this year.

Jeffrey G. Jackson

CPA, MBA Chief Lending Officer at Michigan State University Federal Credit Union Jeffrey G. Jackson, CPA, MBA, has been with MSU Federal Credit Union (MSUFCU) since 1997. He is currently the chief lending officer in charge of business, consumer JACKSON and mortgage lending activities. Prior positions he has held at MSUFCU include senior vice president of Business Services and Operations, vice president of Finance, and vice president of Member Services. Every day he strives to improve the MSUFCU experience for members and to help the community he serves. Jackson thoroughly enjoys the Greater Lansing Business Monthly Entrepreneurial Awards since the Awards focus on people who have a vision for excellence and who have been able to achieve their vision. They also highlight people who have made the community a better place to live. Jackson is a member of East Lansing Rotary Club and industry advisory committees. He has served as chair of The Payments Authority, a member of the Board of the Ronald McDonald

FEATURE

House of mid-Michigan, MCUL Future Leaders Council, the ALFA Foundation Board, the Central Corporate Credit Union Board and the Child and Family Charities Board. Jackson received his Masters of Business Administration from the Eli Broad Graduate School of Management at MSU, and his Bachelor of Business Administration from the University of Michigan. He currently lives in East Lansing with his wife Lori and their three kids: Justin, Josh and Logan.

Jeff Kresnak

Owner of Superior Asphalt, Inc. Jeff Kresnak owns and operates Superior Asphalt, Inc., a Michigan-based manufacturing and paving company headquartered in Grand Rapids, Mich. He has owned and KRESNAK operated Superior Asphalt, Inc., for more than 30 years. In 2010, Superior Asphalt, Inc. built its first asphalt manufacturing facility located in Caledonia, Mich. Just two years later, the company built the second facility, Lansing Asphalt Division in Delta Township. Superior Asphalt, Inc. is the only asphalt company to have built a new asphalt plant in the state of Michigan on newly permitted land in more than 23 years. Kresnak is an avid outdoorsman and enjoys hunting, fishing and trapping. He spends a lot of his free time sharing his passion for the outdoors with his four daughters. He also collects vintage trapping equipment and calendars. Last year, Superior Asphalt, Inc. received the Business of the Year Award from the Greater Lansing Business Monthly, which is a great honor. It’s not easy to start a business from the ground up, but Kresnak sincerely believes that if he can do it, anyone can. Kresnak achieved his success by working hard and by surrounding himself with the right people who remind him every day that hard work pays off.

Mike Maddox Maddox Mike President of ASK

President of ASK Mike Maddox has served as managing partner and president of ASK since 2004. ASK is a company that is committed to providing world-class IT support and security solutions for their clients. He MADDOX leads through two core beliefs: That the client’s best interest should guide every decision and that each member of the ASK staff has intrinsic value as a person, not just an employee. ASK’s solutions are based on the motto that technology’s only value to a business is its ability to increase profits, streamline operations and reduce inefficiency. ASK is well known for providing staff compensation and benefits that far exceed industry average. This originated with Maddox’s vision that IT professionals should be compensated on the value they deliver to clients. Every ASK employee is empowered and is given the freedom to make decisions and solve customer problems. This freedom also demands a high level of commitment and, when tied to customer value creation, has led to ASK’s client retention rate which far exceeds industry norms. Under Maddox’s leadership ASK has grown from a small local firm to a major player in the IT consulting industry. Since 2004, the company has more than tripled its staff and now serves customers with operations all over the globe. Last year, Maddox won the Entrepreneurial Spirit Award at the Greater Lansing Business Monthly Entrepreneurial Awards. Maddox has also been very involved in philanthropic endeavors. Currently, he serves on the Board of Directors for the Anxiety Resource Center and has been involved with this organization for more than 10 years. Since 2011, Mike has also served as an officer on the Board of Directors of St. Vincent Catholic Charities. He and his wife, Anna, have been long-time foster and adoptive parents. They have provided a loving foster home for many children throughout their 24-year marriage and have adopted all five of their children in the process.

In addition to providing IT solutions to businesses, Maddox enjoys cycling, golfing, fishing, boating and snowmobiling.

Debbie Petersmark

General Sales Manager for WILX Media

PETERSMARK

Debbie Petersmark grew up in a family business, HoldenReid Clothiers. Entrepreneurship is second nature to her – a businesswoman in her own right as the General Sales Manager at WILX Media.

At WILX, she leads the sales team, closely working with local companies, helping them grow their businesses through advertising. “I also love the creative part of advertising … brainstorming a great idea and pulling it off from start to finish,” she said. “But the best day is when the campaign works. The success stories – those are the reasons I’m here.” An East Lansing native, Petersmark attended Indiana University and majored in English. Following graduation, she was hired as a part-time event planner at Sparrow Hospital, in partnership with the Children’s Miracle Network. She spent 10 years at Sparrow Foundation, organizing events that were rewarding for both the patients and for Petersmark. Familiar with the family business model at a young age, successful entrepreneurship is a topic Petersmark keeps near and dear. “Entrepreneurship to me is easy,” she said. “It’s my grandfather, my dad, my uncle, my best friend, my neighbor. I grew up and continue to live in a world surrounded by entrepreneurs,” said Petersmark. “So I understand the risk, investment, heartache and joy that entrepreneurs experience every day.” She’s happy be a member of the greater Lansing business community and is glad to accept more business partners and advertising clients to the area. “I’m proud of the development we’re seeing in the Lansing area, and the welcoming culture that’s attracting new businesses and new talent,” she said. “My grandfather wouldn’t recognize downtown Lansing as compared to the downtown when he opened his first store on L

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Washington Square in 1968, although it was pretty great then, too.” Petersmark is pleased to be able to help honor the risk-takers and dreamers alike as a member of the judges’ panel.

Chris Thelen

Public Affairs Area Manager, Consumers Energy Chris Thelen graduated from Michigan State University with a Bachelor of Arts in Journalism. He began working for Consumers Energy in 1993 as a corporate communications THELEN writer, and has been with the company ever since. Thelen currently works as Consumers Energy’s public affairs area manager for the Lansing area, acting as a go-between for the community to address any issues that may arise in the community.

“Our company touches everything in the community – gas, electric and government. There are a lot of challenges in ensuring how we serve the community,” said Thelen. “But working with community groups, participating on boards and enhancing the quality of life here makes it a very rewarding job.”

Thelen has lived in the Lansing area for more than 20 years with his wife, Joanne. His two adult children also live in the Lansing area.

Thelen is a past chairperson and current member of the Clinton County Economic Alliance, a board member of the Lansing Area Economic Partnership and has worked on economic development for 16 years in the Lansing community.

Melody Warzecha is the vice president of commercial banking at Union Bank, a Michiganbased community bank that provides financial services to individuals, WARZECHA businesses and farms. As the vice president of commercial banking, she works to create solutions and build relationships with her clients.

For the past two years, he served as a judge for the Greater Lansing Business Monthly Entrepreneurial Awards, and is proud to support entrepreneurs in the area. “It always amazes me how people can take an idea and make it into a successful business,” said Thelen. “And what really impresses me is the exceptional entrepreneurial ecosystem we have in the Lansing area. There are a lot of high caliber companies here that make me proud to be a part of the Lansing community.”

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Melody Warzecha Vice President of Commercial Banking, Union Bank

Warzecha received her bachelor’s degree in accounting and finance from the University of Michigan and an MBA from Central Michigan University. Before coming to work at Union

FEATURE

Bank, she worked in commercial banking at another financial institution for 15 years. Prior to that, she worked as a controller and accounting consultant for 10 years. “The thing I like about Union Bank is that supporting the community and being involved is really important to us,” said Warzecha. “We really want people to succeed.” Warzecha is also involved in the Lansing community as a member of the Lansing Rotary Club, and is proud to serve as a judge for the Greater Lansing Business Monthly Entrepreneurial Awards this year. She is excited for the opportunity to support Lansing area entrepreneurs. “One thing that has become very evident to me is that Lansing appreciates entrepreneurs,” she said. “I’m proud to be able to represent Union Bank as a judge and support business people in the Lansing area.” If she could give any advice to entrepreneurs in the area, it would be to have a dream and a vision, stick to it, and remember that there are

members of the Lansing community who want to support entrepreneurs.

a dedicated and customer-centric IT engineer and brings more than 12 years of industry experience to Doberman Technologies. His goal is to build meaningful relationships with clients and ensure Doberman Technologies is doing whatever it takes to help its customers.

“There are always people in the community who are willing to support you,” said Warzecha. “Whether it’s friends, family or your trusted advisors, there are always people willing to help.” Warzecha lives in St. Johns with her husband, Richard and son Samuel.

Ian Richardson

Founder and CEO of Doberman Technologies Ian Richardson, BBA, is the founder and chief executive officer of Doberman Technologies LCC, an independent IT consultant firm specializing in the costeffective outsourcing RICHARDSON of small businesses’ IT departments. In his role, Richardson serves as

Doberman’s success has earned both regional and international recognition. MSPmentor, a leading global destination for managed care providers, named Doberman Technologies among MSPmentor’s top 100 Small Business Managed Service Providers in 2015. Richardson has also earned an Entrepreneurial Award of his own, receiving the Emerging Entrepreneur Award from the Greater Lansing Business Monthly in 2015. He received his Bachelor of Business Administration from Northwood University.

Meet Melody Warzecha She Helps Turn Small Businesses Into Bigger Businesses. Melody is the person you need to know when your business needs capital. With over 15 years of commercial banking experience and a commitment to supporting the Lansing community, she's always ready to help.

If your business is ready to grow, contact Melody today.

ubmich.com

517.646.9095 Melody Warzecha Vice President, Commercial Lending

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MARK BAYSHORE MANAGING EDITOR AND HOST OF CURRENT STATE MARK BASHORE HAS ENTERTAINED RADIO AND TELEVISION AUDIENCES IN LANSING SINCE HIS COLLEGE DAYS AT MICHIGAN STATE UNIVERSITY IN THE 1970S. HE JOINED WKAR IN MAY 2007. CURRENTLY, HE IS MANAGING EDITOR AND HOST OF CURRENT STATE, WKAR’S DAILY NEWS SHOW FOCUSING ON COMMUNITY ISSUES, ARTS AND CULTURE, MUSIC AND MORE. THE SHOW AIRS AT 9 A.M. AND 6 P.M. WEEKDAYS ON 90.5 FM AND 12 P.M. ON AM870. YOU SPENT A CAREER IN A BUSINESS THAT HAS UNDERGONE PROFOUND CHANGES. WHAT HAS HAPPENED?

And when the valuations were high, you got some really big fish in the pond – the Citadels, Clear Channel and Cumulus.

The first thing that pops into my head is digitization. That was a huge and profound technological change. I still remember playing my first CD in 1983, and that was just the beginning. But there’s also been the change in listening patterns. Radio’s just not the lifeline that it used to be. The Internet changed everything in terms of the way people get information. Radio has been adjusting to that change ever since. Users of the Internet can go to thousands of places that don’t involve radio.

There are still local stations that make a go of it. They are still out there, but they have to compete with the Internet. I don’t know where it leads.

Also, the business became very lucrative and I guess, if my memory serves, it probably peaked in the 80s in terms of station values. We went through a period where big fish ate little fish.

Next I got a job in Flint as a weekend deejay at WWCK-FM. After that, I spent five years at WILS in Lansing and then I moved to Boston and did radio and TV. It was a big, big change for me and

TALK ABOUT YOUR CAREER I started in campus radio at Michigan State in 1971 deejaying rock – Emerson Lake and Palmer, Led Zeppelin, Yes, Little Feat and on and on. I was a music lover and wanted to have fun on the radio. It really wasn’t a lot more complicated than that.

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I was so excited. I went from 600 W. Cavanaugh Road in Lansing to the 44th floor of the Prudential Center in Boston, looking out over the Atlantic and Back Bay. My pay probably more than doubled. It was a CBS owned and operated station and I was playing soft rock – James Taylor, Carly Simon and Little River Band. They had parlayed that singer songwriter stuff into a CBS-FM sound. I did the mid-day shift from 10 until three. I didn’t have to get up at four o’clock in the morning. I was 25 years old; it was just what I wanted to be doing, where I wanted to be doing it. But the cost of living in Boston was eating us alive. I got married out there. Between wanting to start a family and wanting to be homeowners, it made sense to come back. I was at WFMK for 19 years, until 2005. I even started to do a morning show. But I’ve always been intrigued by public broadcasting.

BEHIND THE SCENES

SO NOW YOU DO CURRENT STATE. HOW INSULATED ARE YOU FROM THE RATINGS AND DEMOGRAPHICS THAT ARE SO MUCH A PART OF THE RADIO BUSINESS? You don’t watch the Arbitron ratings as closely at WKAR as we did at WFMK. There when the book came out everyone knew whether it was good or it was bad, if it was up or it was down. I think appealing to the public the way we do does insulate us to an extent. So the short answer is yes – sort of insulated. But you are still trying to satisfy those people the best you can.

AND WHAT ABOUT YOU, YOUR SUCCESS? I feel that I learned how to do this by emulating people. There were always people I was hearing on the radio, and to this day there are people I hear on radio or see on TV that I think are really strong interviewers. Charlie Rose has his own niche; J.P. McCarthy was a huge influence. He had a real gift for interviewing people; Tom Ashbrook on NPR, On Point. He is really informed but with a lot of

energy. Energy counts for something when you are a live radio host. There’s a certain momentum. You don’t want dead air. You don’t want silence.

ON CURRENT STATE YOU TALK WITH VIRTUALLY EVERY COMMUNITY LEADER IN THIS REGION. WHAT IS YOUR SENSE OF WHERE GREATER LANSING IS HEADING? I’m encouraged by what I see in Lansing: Some dynamism and some growth. I’ve got to give [Mayor Virg Bernero] credit for bringing some degree of spark and awareness of commercial development, and vigilance about budgets. The university under Lou Anna Simon has continued to thrive and probably increase its level of influence. She’s an awfully impressive person in my view, and I say that not just because she’s my boss. I’d put Bob Trezise at LEAP on my short list of those people who have made a difference; and Dave Hollister. I think we’ve got people in charge of some of the bigger institutions who are pretty competent people. I look back into the past and see a lot more mediocrity than I see right now. These are pretty competent, forward-looking people.

IS IT DIFFERENT WORKING FOR A LARGE UNIVERSITY COMPARED WITH COMMERCIAL BROADCAST COMPANIES? We have a development staff at WKAR. There’s a sales staff at a commercial radio station. I would say there’s a whole different set of considerations. We appeal directly to our supporters and to businesses, but in a really different way in public broadcasting when you remove conventional advertising from the equation. It’s a union landscape too, which is profoundly different from commercial radio. There is a safety net here.

IS A UNION ENVIRONMENT RESTRICTING? I would say there are more advantages than disadvantages. Overall, it is better. If you are incompetent or mess up, there is a process. There has to be substantive communication about how you are not measuring up. You have to be given a chance to make improvements. That creates a level of reassurance that you don’t have in the commercial world.

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anaging employees is hard, and among the biggest employee-related challenges a business will face is managing an employment lawsuit. One way to guard against this risk is through employment practices liability insurance (EPLI), which covers employment liability damages and defense costs from claims brought by employees or former employees for employment discrimination or wrongful termination, among other things. Many employers are not aware that they can insure against this type of risk, or assume that the risk is covered by other policies. There are several issues that businesses should consider when obtaining EPLI. Understand the Exclusions and Policy Limits Most policies exclude coverage for claims involving ERISA, wage and hour laws, and breach of contract, as well as claims for bodily

injury and property damage. Also, like all insurance, EPLI has policy limits. Read your EPLI policy closely, and in conjunction with your other policies, to understand the full scope of your coverage.

three years). Keep in mind, though, that failure to disclose facts, such as prior employment lawsuits, can result in rescission of coverage, both for primary and prior acts policies.

TWO TYPES OF POLICIES

These are just a few of the many important issues to consider when purchasing an EPLI policy. EPLI guards against legal risk, so consult with legal counsel to understand the implications of these policies. Need help with an existing EPLI policy, or in obtaining a new one? Foster Swift attorneys advise businesses on the best ways to limit employment-related risk and liability.

EPLI policies come in two types: occurrence and claims-made. Occurrence policies protect against incidents that occur while the policy is in effect, regardless of when the claim is reported. Claims-made policies protect against claims that occur and that are reported while the policy is in effect.

COVERAGE FOR PRIOR ACTS Coverage for prior acts is available, even to most first-time EPLI policy buyers. Employers, therefore, can guard against prior incidents, as well as future ones. Prior acts coverage may be fully retroactive, or limited to a particular period of time (for example,

CONCLUSION

Foster Swift attorney Pamela Collette Dausman focuses her practice on employment litigation and counseling employers on a wide array of employment matters. Contact Pam: 517.371.8163 or pdausman@ fosterswift.com.

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ECONOMY

THE CONDUCT OF MONETARY POLICY BY MORDECHAI E. KREININ, UNIVERSITY DISTINGUISHED PROFESSOR (EMERITUS), MSU

For the purpose of monetary policy, the U.S. is divided into 12 districts, of which the New York Federal Reserve district is the most important. Located in the nation’s main money market, it executes the Fed’s policy decisions. Each district is headed by a president; five of these presidents on rotation and seven members of the Fed’s Board (located in Washington) make up the Federal Open Market Committee (FOMC) which meets monthly to decide monetary policy. It derives its name from the fact that the policy often involves buying and selling government bonds on the open market to affect money supply and interest rates (mainly the Federal Funds rate), which vary inversely with bond prices. Readers might recall that

in the discussion of the national debt, it was mentioned that government bonds are needed for the conduct of monetary policy. Several instruments are available to the Fed, some of which are used very sparingly. For example, if a (rare) need develops for a large change in money supply, the Fed can change the reserve requirements of the banks: raise them to force the banks to withhold or even call back loans, thereby reducing money supply. Conversely, it can lower reserve requirements to make it possible for banks to expand loans and raise money supply. At times, the Fed can change the discount rate, encouraging banks to borrow from it. These borrowed funds become

legal reserves, which enable banks to make loans, but this is very rare. Usually, it is not a desirable option to jolt the financial system. Hence the Fed’s main (and most often used) instrument is to affect changes in interest rates: Lower them in times of recession so as to induce purchases that depend on borrowed funds, thereby stimulating economic activity; or raise them in times of inflationary booms to control the inflation. The monthly changes are very small, and the particular interest that the Fed targets is the federal funds rate, in the hope and expectation that the entire structure of interest rates will follow. The FOMC meets monthly to

GEOGRAPHIC BOUNDARIES OF THE FEDERAL RESERVE DISTRICTS MINNEAPOLIS

BOSTON CLEVELAND

CHICAGO

SAN FRANCISCO

NEW YORK PHILADELPHIA

KANSAS CITY ST. LOUIS

RICHMOND

ATLANTA DALLAS

FEDERAL RESERVE BANK CITY BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM, WASHINGTON, D.C.

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ECONOMY

... THE FED’S MAIN (AND MOST OFTEN USED) INSTRUMENT IS TO AFFECT CHANGES IN INTEREST RATES: LOWER THEM IN TIMES OF RECESSION SO AS TO INDUCE PURCHASES THAT DEPEND ON BORROWED FUNDS, THEREBY STIMULATING ECONOMIC ACTIVITY; OR RAISE THEM IN TIMES OF INFLATIONARY BOOMS TO CONTROL THE INFLATION.

determine the target Federal Fund’s rate and money supply. Policy is conducted by the Fed buying and selling government bonds. In times of recession the Fed buys government bonds, thereby infusing money into the economy and lowering interest rates. Remember that the rise in bond prices resulting from government purchases means a cut in interest rates designed to stimulate consumers and producers’ purchases that depend on borrowed funds (in this case, the Federal Funds rate). Conversely, in times of inflation the Fed sells government bonds, thereby raising interest rates and inducing a reduction in such purchases, curbing the inflations. By concentrating on the short-term Federal Funds rate, the Fed hopes that longer term rates will follow suit. But sometimes, especially during a deep recession such as the last one, that does not happen, and longterm rates remain high so mortgage rates, which determine activity in the critical housing markets fail to respond to open market operations. Here enters the ingenuity of the former Federal Reserve chairman, Professor Ben Bernanke of Princeton. He acted “outside the traditional envelope.” Under his direction the Fed embarked on a policy peculiarly labeled “quantitative easing” of buying trillions of dollars’

worth of long-term bonds, thereby directly depressing the long-term interest rates, renewing the construction industry and stimulating the economy. Partly because of this action, the last deep downturn in the U.S. was a deep recession and not a deep depression. Unfortunately, the president of the European Central Bank, Mario Draghi, failed at the time to follow a similar policy (although both presidents were trained in economics at MIT). To be sure, such a measure is more politically complicated to pursue in the Eurozone; because there are no EU bonds, the ECB needs to buy bonds of individual member countries. Whose bonds to purchase become a political question to be resolved by the ECB board. Only in late 2015 did the ECB start its own “quantitative easing” program, smaller than that of the U.S. In sum, the more aggressive, stimulative, fiscal and monetary policy in the U.S. explains the more satisfactory economic situation here than in Europe. But this country cannot be the only “beacon of light” in an otherwise depressed world (to varying degrees). We have an interest in Europe, Japan, China, India etc. enjoying satisfactory growth, as these are markets where we sell our products. Which goods and services do we sell? Our essays move now to aspects of relationships with other countries, and “commercial policy.”

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GREATER LANSING L

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LANSING AT A GLANCE

GREATER LANSING AT A GLANCE Each month, the Greater Lansing Business Monthly compiles statistics showing the growth of the greater Lansing area from month to month. This information is not comprehensive, but rather, a snapshot of the area’s growth throughout the year. The following is a look at the advances some of Lansing’s biggest businesses have made in the past two months. MICHIGAN RETAILERS ASSN. INDEX

BUREAU OF LABOR STATISTICS: LANSING ECONOMY

Dec. ‘15

Nov. ‘15

Oct. ‘15

Sept. ‘15

Dec. ‘14

Sales

48.7

50.2

54.1

51.1

66.5

Inventory

56.6

51.7

55.6

55.4

44.4

Civilian Labor Force (1)

Prices

47.3

52.0

54.3

53.5

49.6

Dec. ‘15

Nov. ‘15

Oct. ‘15

Sept. ‘15

Dec. ‘14

(P) 228.7

244.5

242.7

240.5

243.6

Employment (1)

(P)1.1

236.2

233.9

231.7

233.2

(P) 7.0

8.3

8.8

10378

(P) 11.1

3.4

3.6

4.3

Marketing/Promotion

66.6

66.2

64.1

57.9

61.3

Unemployment (1)

Hiring Plans

51.4

50.1

55.0

45.8

55.9

Unemployment Rate (2)

Values above 50 generally indicate an increase in activity

WAGE & SALARY

KEY STOCKS — MONTH-END CLOSE Dec. ‘15

Nov. ‘15

Oct. ‘15

Sept. ‘15

Dec. ‘14

(P) 228.7

231.2

231.3

228.5

226.2

12-month % change

(P) 1.1

1.4

1.2

0.3

Mining, Logging & Construction (3)

(P) 7.0

7.5

7.7

6.3

12-month % change

(P) 11.1

8.7

6.9

3.3

Manufacturing (3)

(P) 20.8

20.7

20.1

12-month % change

(P) 3.5

10.1

6.6

3.1

Trade, Transportation & Utilities (3)

(P) 35.7

35.5

34.7

35.9

Total Nonfarm (3)

12-month % change

(P) -0.6

-0.6

-1.7

-0.6

Information (3)

(P) 2.7

2.7

2.8

12-month % change

(P) -3.6

-3.6

-3.4

Financial Activities (3)

(P) 15.7

15.6

15.3

Jan. ‘16

Dec. ‘15

Nov. ‘15

Oct. ‘15

Spartan Motors

2.9

3.11

3.63

4.13

5.21

General Motors

29.64

34.01

33.81

34.91

32.62

Emergent BioSolutions

36.6

40.01

37.67

32.15

28.03

Neogen

52.18

56.52

59.06

54.05

46.1

Gannett (Lansing State Journal)

14.81

16.29

17.08

15.82

N/A

Gray Broadcasting (WILX)

13.15

16.3

16.75

15.89

46.1

Media General (WLNS)

16.24

16.5

15.53

14.86

14.3

Bank of America

14.14

16.83

17.43

16.78

13.35

UPS

93.2

96.23

103.01

103.02

98.84

Home Depot

125.76

132.25

126.91

112.3

104.42

Kroger

38.81

41.83

37.66

37.8

34.5

40.41

34.98

39.08

50.98

63.88

66.36

61.3

58.84

57.24

84.98

12-month % change

(P) 2.6

2.6

1.3

Macy’s Inc.

Professional & Business Services (3)

(P) 21.1

21.9

22.3

21.9

21.1

Wal-Mart Stores

12-month % change

(P) 0.0

1.4

0.5

-1.4

-1.9

Education & Health Services (3)

(P) 31.6

31.5

31.4

30.9

31.5

12-month % change

(P) 0.3

0.3

-1.3

Leisure & Hospitality (3)

(P) 20.0

19.8

20.6

20.3

18.8

Jan. ‘15

CONSUMER ENERGY SERVICE STARTS BUSINESS Jan. ‘16 Clinton

4045

Jan. ‘15

YOY Change

Percent

4016

0.72%

12-month % change

(P) 6.4

2.8

5.6

4.6

Eaton

5117

5068

0.0097%

Other Services (3)

(P) 10.6

10.5

10.6

10.5

10.4

Ingham

11449

11321

128

1.13%

20611

20405

206

1.01%

Jan. ‘16

Jan. ‘15

YOY Change

Percent

29122

28819

303

1.05%

12-month % change

(P) 1.9

1.9

-1

TOTAL

Government

(P) 63.5

65.5

63.2

RESIDENTIAL

12-month % change

(P) -0.8

-1.1

-0.8

-0.2

1.3

(1) Number of persons, in thousands, not seasonally adjusted. (2) In percent, not seasonally adjusted. (3) Number of jobs, in thousands, not seasonally adjusted. See About the data. (P) Preliminary

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Clinton

MARCH 2016

Eaton

41379

41191

188

0.46%

Ingham

168147

167108

1039

0.56%

TOTAL

168147

187513

1245

0.62%

GRAND TOTAL

188758

187513

1245

0.66%

LANSING AT A GLANCE

GREATER LANSING ASSOCIATION OF REALTORS HOUSING REPORT Jan. ‘16

Dec. ‘15

Nov. ‘15

Oct. ‘15

Jan. ‘15

1873

2050

2171

2346

2285

$303.8

$330.9

$363

$400

$352.6

579

530

665

527

New Listing Volume*

$93.1

$75

$106

$74.1

Average Listing Price

162K

161K

167K

171K

154K

Average Listing/sq. ft.

$105

$104

$105

$106

$102

Days in RPR

108

109

102

122

Months of Inventory

Pending Sales Count

478

385

642

580

218

Sales Volume*

$49

$63.4

$42.4

$65.9

$36

Percentage of Listing Price

96.2

94.4

96.8

96.6

Active Listing Count Active Listing Volume* New Listing Count

*In millions

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03.30.16

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HEALTH CARE BY MICKEY HIRTEN

AS A POPULATION, MILLENNIALS HAVE SURPASSED BABY BOOMERS AS THE NATION’S LARGEST DEMOGRAPHIC GROUP, RESHAPING THE CULTURE WITH THEIR ATTITUDES, VALUES AND BEHAVIORS. IT IS HAPPENING WITH HEALTH CARE, AND PROVIDERS ARE RESPONDING.

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E EXPERIENCE THE EXPANSION OF URGENT AND READY CARE FACILITIES, MORE TRANSPARENT PRICING – EVEN DISCOUNTING SERVICES – RELIANCE ON SOCIAL MEDIA AND DIGITAL NEWS AND INFORMATION ARE AMONG THE TRENDS THAT APPEAL TO AMERICA’S 80 MILLION-PLUS MILLENNIALS.

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PHOTOS BY ERIKA HODGES TAKEN ON LANSING COMMUNITY COLLEGE CAMPUS

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educated about medical care and the Internet is the primary reason for that. It encourages patients to do substantial research online,” said Tom Mee, president and CEO of McLaren Greater Lansing. In general, health care providers applaud more engaged patients, whether it’s about treatment options, drugs or even billing. But there are wrinkles.

Dozens of quick care doc-in-a-box facilities dot the greater Lansing area, some private, others affiliated with area hospitals or Michigan State University. It is how this generation seeks out first-line medical care. Area medical practices promote their services on Facebook and monitor – and respond to comments – on social media. They schedule appointments, post reminders and email receipts via smart phones. “Millennials are about efficiency and convenience. It’s the reason that people come to us and the reason that they keep coming back,” said Hillary Myers, director of business development and marketing for Lansing Urgent Care, a private ready care practice with five local offices, and a sixth coming soon.

“Millennials like lots of information and want to know why,” said Dr. Jennifer Huldin, an occupational medical specialist with

Lansing Urgent Care who previously worked at Michigan State University’s Olin Health Center. “Older patients tend to go to the doctor and do as the doctor tells them. There is a lot more education to do with Millennials – a lot more explaining and teaching.” Compared with older generations, the relationship with medical practices is much looser or has yet to develop. “Baby Boomers are very loyal to their primary care physician. Millennials are not as loyal. They will go to urgent care because it is fast –

"MILLENNIALS ARE ABOUT EFFICIENCY AND CONVENIENCE. IT’S THE REASON THAT PEOPLE COME TO US AND THE REASON THAT THEY KEEP COMING BACK." -HILLARY MYERS, DIRECTOR OF BUSINESS DEVELOPMENT AND MARKETING FOR LANSING URGENT CARE

The range of services provided by Lansing Urgent Care and other clinics is limited, but well-suited to Millennials. In general, the health needs of young adults in their 20s and early 30s are basic: minor injuries and illnesses, lacerations, sports and job physicals, fracture care and casting. The clinics often have on-site x-ray and lab facilities. And the hours are convenient. Lansing Urgent Care’s office on Clippert Street is open 24 hours; the others are open between 9 a.m. and 9 p.m. on weekdays and Saturdays; and 9 a.m. to 6 p.m. on Sundays. “People use urgent care because it so easily accessible. You can be seen and back on your way in an hour,” Myers said. “We provide minor injury and illness care. As a rule of thumb, it is not a good place for chronic injuries.” Experts say that while Millennials certainly influence how health care is delivered, some changes are happening because of broader social trends. “I don’t know that it’s the Millennial era that is forcing health care providers to focus on access and quality. Patients are more L

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HOW DO YOU HANDLE YOUR HEALTH CARE?

instant gratification,” said Dr. David Corteville, chief operating officer of Compass Health, a multi-specialty medical group. “One of the things they will do is seek out the point of care that is least expensive if the quality is the same. They want to know what their upfront cost is, asking, ‘If I have this procedure, what is going to be the cost benefit,’” Corteville said.

“I continue to stay under my parents’ policy.” - JACOB TREADWAY

“I use my parents’ insurance which is convenient.” - DANA SCHRAUBEN

Millennials, like all Americans, are covered by the Affordable Care Act mandate that they have health care or pay a penalty. According to the Kaiser Family Foundation, in 2016, fines for being uninsured are $695, or 2.5 percent of taxable income. For those with children, the no-insurance penalty is $347.50 per child with a maximum family charge of $2,085 per family. The penalty payment is a cost that Millennials without employer-health plans weigh against purchasing commercial insurance coverage with premiums that vary by providers, deductibles, age, tobacco usage and other factors.

“I’m under my parents’. My dad is a teacher and I’m covered as long as I am a full-time student.”

“I’m covered under my parents until I have to get my own insurance when I’m older.”

- CARL SNYDER

- JOSH VAN LAAN

According to estimates from the Michigan Department of Insurance and Financial Services, the cost of a mid-level plan for a 25-year-old non-smoker is $279 for Physicians Health Plan Sparrow PHP Silver Premier policy. It increases to $350 at age 35. The McLaren Rewards Silver plan costs $244 at age 25; $297 at age 35. Most “silver” plans offered in the mid-Michigan region fall within this range. “There is absolutely no question that the Affordable Care Act has affected the delivery of service to Millennials,” Mee said. “If you look at today’s insured workforce, 40 percent have deductibles in excess of $1,000. They look at how much it will cost before they approach us.”

“I have insurance through my parent which usually works fine.” - BEN LIMB

“I’m only 19 so I mean, I hope I’m covered under my parents.” - ALYSSA MCCORMICK

The search for value – quality care at the lowest possible cost – is enhanced by the use of social media, said Myers. It is the reason that Lansing Urgent Care tracks what patients say about their experiences, both good and bad. A Google review in early February on a Lansing Urgent Care page featured a scathing review from an obviously dissatisfied customer who complained of misdiagnosis and an altogether bad medical experience.

“I’m 19 and I think I’m under my parents’ care.” - MICHAEL HORTON 26

“I’m 22 so my parents usually just handle it.” - EVAN MEIER

Myers responded quickly, asked the poster to discuss the experience, adding that, “Our patients mean everything to our company and I would like the opportunity to learn from your experience to ensure this does not occur

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again.” She also responds to the notes of praise, of which there are many. “Our goal is to respond as quickly as possible. We have always felt that the patient experience doesn’t start and end with a visit to the clinic. It goes well beyond that,” Myers said. The medical practice, like others, monitors social media sites like Google reviews, Foursquare, Facebook and Twitter. “Without a lot of the feedback we have received, I don’t think we would be providing the level of service that we do. We’re open 24 hours because we listened.” Myers added that a personal response often saves the relationship. “Most of the people who have brought concerns or complaints are still patients. They have come back and continue to come back because we listen to them.” The degree to which social media and other digital delivery systems figure into health care decisions is significant. A survey by PNC Financial Group found that 50 percent of Millennials and Gen Xers use online information from services when shopping for a provider. Services like Yelp, U.S. News and World Report, Health care Bluebook and Healthgrades are among the most popular. Healthgrades, for example, claims that every day more than 1 million people use the service for reports on doctors and hospitals. Its reports on Lansing’s hospitals are typical. It gives Sparrow Hospital four Healthgrades 5-Star Ratings, one Healthgrades Quality Award and notes that it has 1,011 affiliated providers. McLaren Greater Lansing also gets five Healthgrades 5-Star Ratings, two Healthgrades Quality Awards and 471 affiliated providers. Reviews for both hospitals rate and detail an array of services. Experts say access to this sort of information is the future of health care. And for Millennials, the future is now. “Millennials are a completely different generation,” said Corteville. “They are ever questioning. It keeps health care providers on their toes.” Mickey Hirten is an award winning writer and editor. He has been executive editor of the Lansing State Journal, the Burlington Free Press in Vermont, and was the financial editor and a columnist for the Baltimore Evening Sun. He is the current president of the Michigan Press Association. His wife, Maureen Hirten, is director of the Capital Area District Library.

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MA N on the STR EET WHAT MAKES YOU CHOOSE ONE INSURANCE PROVIDER OVER ANOTHER? COMPILED BY KYLE DOWLING

"Value. What you get for the cost." "Best coverage for the price." CONRAD CHASE & TOM BROWN

"Accessibility. Whether I am able to see the doctors I want to see in the area or do I have to travel somewhere else to see a doctor." RIAN JORDAN

"Better benefits. I look for it price-wise to the benefits it offers." JON SUMRACK

"Pricing. I make sure there is a wide range of coverage." CHRIS LEONE

"Reputation of the insurance provider, cost and the quality of the insurance. I also want to be able to contact them easily." JOHN GHADERI

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