August 2010 Business Magazine by MBA Business Magazine

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A Healthy Future

VOLUME XXIII, NUMBER 8

AUGUST 2010

How Susquehanna Health is laying the foundation for quality and value in patient-centered health care / Page 12

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August 2010

Blue Ocean Strategy Center

EDITORIAL > 7 / Health Matters Why shared decision making is becoming a critical component of patient care. MICHAEL CULYBA, MD

11 / Legal Brief

How to navigate a short sale in today’s tough real estate market. JENNA BICKFORD

17 / On the Hill

Enough already! How the federal government’s excessive spending is hurting the U.S. economy. SHEILA STERRETT

25 / Blue Ocean Strategy The tools for unlocking exceptional value for buyers. ANGIE ANGUS

EVENTS >

22 / Roar on the Shore® See exclusive photo coverage of the fourth annual Roar on the Shore® bike rally held in downtown Erie to support the construction of SafeNet’s Big Backyard Children’s Garden.

FEATURES > 3 / Spotlight

Clarion Industries President Tony Sturrus talks about how this laminate and industrial panel business, headquartered in Shippenville, Pennsylvania, has gone from a company struggling to survive to one that is hiring and ramping up production.

12 / Susquehanna Health President and CEO Steven P. Johnson explains how this health system, serving an 11-county region in north central Pennsylvania, is laying the foundation for quality and value in patient-centered health care.

INSERT / Training Catalog Learn about the Association’s upcoming professional development and computer training courses in our new quarterly Training Catalog!

21 / Company Profile

ES S BMUa Sg IN a z i n e Manufacturer & Business Associati

VOLUME XXIII, NUMBER 8

AUGUST 2010

How Wesbury in Meadville, Pennsylvania, is providing individualized proactive health care and life enrichment services for those in their retirement years.

A Healthy Future

the foundation How Susquehanna Health is laying health care / Page 12 for quality and value in patient-centered

DEPARTMENTS > 4 / Business Buzz 8 / The Health Network

14 / HR Connection 18 / Legal Q&A 26 / People Buzz

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SPOTLIGHT > by Karen Torres With new ownership and a new capital infusion, Clarion Industries in Shippenville, Pennsylvania, has gone from a company struggling to survive to one that is hiring and ramping up production. The Business Magazine recently met with company President Tony Sturrus to learn more about the laminate and industrial panel business and what he believes are growth opportunities for this manufacturer in the near future.

Describe Clarion Industries, its subsidiaries – Clarion Boards and Clarion Laminates, and the products you manufacture. Clarion Industries is parent company of Clarion Boards and Clarion Laminates. We manufacture high quality fiber board (MDF and HDF) products and quality laminate flooring. Who are your customers and where are they located? Our major customers are national name brand consumer flooring companies and major national do-it-yourself home improvement mega stores with distribution in the United States, Canada and Mexico. We also provide product for a segment of the furniture and cabinet markets with domestic and international distribution and some international flooring customers in South America and Europe. How would you describe the state of the company in early 2009? Clarion Industries in 2009 was a state-of-the-art manufacturing facility with a skilled, passionate Pennsylvania work force. I believe it’s fair to say the business was broken with serious customer issues and production challenges. Sales were down. The company did not make a profit in 2008. The front line management of the company was struggling in what was the beginning of the great recession and the leadership was not particularly focused on Clarion’s growth. As former Pergo, Inc. president and CEO, you join Clarion Industries with a wealth of industry experience and knowledge. What is your management philosophy? My philosophy of management is built on a lifetime of experience of leading people and reacting to situations. Establishing the Clarion team’s sense of purpose beyond delivering expected financial returns is a key to my philosophy foundation. Establishing new core values involved fixing the challenges that we control that would immediately impact the business. Implementing a culture of fast and flawless execution gave us a domestic competitive advantage that delivered an added benefit to our customers of better inventory and cost controls at a key time in this recession when credit was an important make or break business component. And, yes, my Pergo experience and relationships added value to communicating Clarion’s competitive advantage to the trade. In some instances, it opened new doors for business or mended customer relationships for volume growth. What is the outlook for your industry? The laminate flooring industry is tied primarily to the housing remodeling business and year-to-date indicators are showing a more than 5-percent increase in remodeling activity year to date. While our industry has its share of Chinese imports in the market, when you consider the cost of fuel and impact of the dollar.... I see good potential for domestic manufacturing to take market share at this time. What is in store for Clarion Industries in the future? A bright future. Despite the industry numbers and the housing start forecasts, Clarion has not only turned the corner but has paved the way to a dynamic future. In less than a year, the Clarion team turned the business around from losing money to making a small profit, at a time when most economists would consider the height of the recession. This marked an important turning point for the leadership team, the employees and the investors. Our production numbers year-to-date 2010 have doubled vs. year-to-date 2009. We are nearly at manufacturing capacity for the balance of this calendar year. We have invested in hiring key positions and have a strong, experienced leadership team that complements our skilled Clarion, Pennsylvania work force. We also are investing in important innovations and capital improvements that will keep our domestic production competitive and provide additional industry advantages. All of this adds up to an exciting, very bright future for Clarion Industries – our employees, our customers, our investors and our community.

VOL. X XIV, NO. 8 AUGUST 2010 Manufacturer & Business Association Board of Governors

Yvonne Atkinson-Mishrell John Cline Dale Deist Timothy Hunter Dan Ignasiak Mark C. Kulyk John B. Pellegrino Sr., P.E. Dennis Prischak Robert S. Pursell Lorenzo Simonelli Sue Sutto Philip Tredway

Editor in Chief Ralph Pontillo rpontillo@mbausa.org Executive Editor John Krahe jkrahe@mbausa.org Managing Editor & Karen Torres Senior Writer ktorres@mbausa.org Contributing Writers

Angie Angus Jenna Bickford Jessica Crocker Michael Culyba, MD

Cover Photography Courtesy of Susquehanna Health Additional Ron Stephens Photography La Mirage Studio 814/835-1041 Jessica Crocker Veronica Pusa Karen Torres Advertising Sales

Lori Maus Joint 814/833-3200 or 800/815-2660 ljoint@mbausa.org

Design, Production Printing Concepts Inc. & Printing printcon@erie.net

On the Cover

S usquehanna Health President and CEO Steven P. Johnson stands in front of the Williamsport Regional Medical Center in Williamsport, Pennsylvania. The hospital is undergoing a major renovation as part of the health system’s master facility project, Project 2012. For story, see Page 12. Mission Statement The Manufacturer & Business Association is dedicated to providing information and services to its members that will assist them in the pursuit of their business and community interests. – Board of Governors Manufacturer & Business Association 2171 West 38th Street Erie, Pa. 16508 814/833-3200 or 800/815-2660 www.mbausa.org © Copyright 2010 by the Manufacturer & Business Association. All rights reserved. Reproduction or use of editorial, pictorial or advertisements created for use in the Business Magazine, in any manner, without written permission from the publisher, is prohibited. Unsolicited manuscripts cannot be returned unless accompanied by a properly addressed envelope bearing sufficient postage. The magazine accepts no responsibility for unsolicited manuscripts or artwork. The Business Magazine and Manufacturer & Business Association do not specifically endorse any of the products or practices described in the magazine. The Business Magazine is published monthly by the Manufacturer & Business Association, 2171 West 38th Street, Erie, Pa. 16508. Phone: 814/833-3200 or 800/815-2660.

August 2010 > www.mbausa.org > 3

Business Buzz FISHER & LUDLOW, INC. NAMED EMPLOYER OF THE YEAR Fisher & Ludlow, Inc., a subsidiary of NUCOR Steel based in Crawford County, was honored with the Governor’s Achievement Award for the northwest Pennsylvania region and the distinguished Employer of the Year Award, during the awards luncheon at the 2010 PA Partners Conference in Hershey, Pennsylvania. The company also received the Safety & Health Achievement Recognition Program (SHARP) award from the PA Department of Labor and Industry – the first and only award received in Crawford County for the creation and implementation of a state-certified safety committee.

CMIT SOLUTIONS HONORED AT ANNUAL CONVENTION CMIT Solutions of Erie owner Beth Burnside was presented with the Marathon Top 10 Award and the

A supplier of high quality gratings for major capital projects around the world, Fisher & Ludlow currently employs 60 people – a 60-percent increase since 2007.

sales, performance or leadership goals within the CMIT Solutions franchise system. CMIT Solutions of Erie provides information technology services, including backup and disaster recovery, anti-spam solutions, and Web and e-mail hosting, to small and mid-sized businesses. For more information, visit www.cmitsolutions.com/erie.

From left: RCWE CEO Michele Zieziula, Fisher & Ludlow Plant Manager Mark Diehl, Acting Deputy Secretary for the PA Dept of Labor & Industry Bob Garraty, and RCWE Outreach Specialist and Crawford County Business Service Representative Connie Frantz.

Momentum Award during CMIT Solutions’ recent annual convention in Memphis, Tennessee. The awards are bestowed on franchisees that reach remarkable benchmarks in

JAMESTOWN COATING TECHNOLOGIES INTRODUCES NEW ANTIMICROBIAL PRODUCT Jamestown Coating Technologies, an industry leader in custom-formulated paints and coatings based in Jamestown, Pennsylvania, has developed SurfaGuardT antimicrobial paints and coatings designed to provide an extra defensive shield against bacteria, molds and fungi. The new product incorporates silver ions via a new

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nanotechnology, SmartSilverT, that are proven to work against microbes. In addition to bacteria that cause infections, SurfaGuardT helps prevent odor buildup and discoloration the microbes can cause, which means that surfaces need less frequent repainting. For more information, visit www.jamestowncoatings.com. CONIFER REALTY, LLC EARNS PROFESSIONAL ACCREDITATION Conifer Realty, LLC has earned the Accredited Management Organization® (AMO®) accreditation from the Institute of Real Estate Management (IREM®), an affiliate of the National Association of Realtors®. The AMO® accreditation is awarded to real estate firms that have a track record of high performance, experience, stability and financial accountability and have a Certified Property Manager® (CPM®) directing and supervising the real estate management team. In

addition, AMO® firms must abide by a rigorous code of professional ethics that is strictly enforced by the Institute.

provide 24/7 access and the ability to perform numerous financial transactions through Erie FCU’s new “Fast Branch” self-service kiosks, which were developed A full-service real estate company specialthrough its relationship with global izing in the development, construction, technology company NCR Corporation. and management of high-quality, affordThe office also will be staffed with able housing communities, Conifer has financial services professionals during offices in New York, New Jersey, Marynormal business hours. land and Erie. The Erie office manages During 2011, the credit union plans to more than 1,500 units, including senior move its call center into the West 32nd housing, multi-family housing, and taxStreet facility. credit apartments, in three states. For more information, visit www.coniferllc.com.

For more information, visit www.eriefcu.org.

ERIE FEDERAL CREDIT UNION MAKES PLANS FOR NEW BRANCH LOCATION The Erie Federal Credit Union recently held a groundbreaking ceremony to commemorate its newest branch office at 1220 West 32nd Street in Erie. Set to open this fall, the office will

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Health Matters

EDITORIAL > by Michael Culyba, MD

Shared Decision Making Gains Acceptance When doctors and patients work together in medical decision making, studies suggest that treatment results improve. The concept is known as shared decision making and it is becoming more widely accepted by patients and physicians alike. Shared decision making – also known as preference sensitive care – has developed in response to the sometimes uneasy relationship between a patient’s right to have input into their treatment options, and a doctor’s responsibility to provide the best evidence-based care. Preference sensitive care recognizes that the best treatment is the one that reflects what is most important to a well-informed patient who understands all the options and the potential outcomes. What exactly does shared decision making mean? Shared decision making is a way in which a doctor talks with his or her patient about options and outcomes. In turn, the patient relays his or her opinions about the options resulting in a shared decision about treatment. Facts about shared decision making: 1. It recognizes that there are trade-offs in the choice of medical care. 2. It addresses the ethical need to fully inform patients about the risks and benefits of treatments, as well as the need to ensure that the patients’ values and choices play a leading role. 3. Most patients willingly participate in shared decision

making, even when decisions are complicated and difficult. How is it different from traditional medical decisions? Preference sensitive care acknowledges that the best treatment is the one that reflects what is most important to the patient, when that patient is well informed about the options and potential outcomes. It is especially useful when there is no clear best treatment option. Why is it an important concept in health care? Studies suggest that treatment results improve when doctors and patients work together in medical decision making. Shared decision making acknowledges the complex trade-offs in choosing medical care. It also recognizes the importance, if not the ethical need, to fully inform patients about all risks and benefits involved in any treatments. It ensures that a patient’s value and preferences – and not just the physician’s – need to play a prominent role. What to remember when talking to your doctor about condition and treatment choices: • Don’t be afraid or intimidated to ask questions. • Your feelings do matter. • Sometimes decisions need to be made without knowing exactly how it will turn out. Why should employers be interested in shared decision making? Preference sensitive care is most likely to result in what could be called a “good” decision. That is,

it is informed, evidence-based, compatible with the patient’s values, and it considers patient preferences. It also increases the likelihood that patients will be pleased with the process. For an employer, shared decision making helps to ensure that best practices will be implemented, resulting in the best results and the best value for their healthcare dollar. Tips for how to prepare for talk with a physician: • Make a list of questions to bring with you. • If possible, bring a friend or family member with you to help you remember your concerns and to reconstruct the conversation afterward. • Do not be afraid to take notes. • At the end of the visit, ask your physician to summarize. For more information, visit www.upmchealthplan.com. Michael Cuylba, MD, is vice president, Medical Affairs, for UPMC Health Plan, which is part of the integrated partner companies of the UPMC Insurance Services Division. These include UPMC Health Plan, UPMC Work Partners, EAP Solutions, UPMC for You (Medical Assistance), and E-Benefits – and which offer a full range of insurance programs and products.

August 2010 > www.mbausa.org > 7

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800-837-5790 ecs@ecsinc.us.com www.ecsinc.us.com Est. 1989

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I am pleased to say that Electronic Communication Services has been our telephone system The Business first annual provider since 1996. They have been a true partner Magazine’s in the development of the telephony aspect Madeain Pennsylvania issue debuts as this of our business model. By recommending phone system that can be upgraded ourOctober! needs changed; including one system serving multiple haveon saved us substantial dolCheck backsites, for they details www.mbausa.org! lars. Their customer service is exceptional and their employees are dedicated, professional and excellent troubleshooters. I would highly recommend ECS to provide telecommunications to any business, large or small. For more information on advertising, contact Lori Joint Donna Haskins at 814/833-3200, 800/815-2660 or ljoint@mbausa.org. Managing Partner, Palace Business Centres

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A long history of getting your employees back to work quickly.

For more than 25 years, the Saint Vincent Occupational Health Center has been the preferred provider of occupational medicine services for the majority of Erie County employers. Featuring a board-certified Medical Review Officer, our clinical team of experts is wholly dedicated to the prompt and safe return of injured employees to the workplace. We're the region’s only occupational medicine program with on-site, full-service physical and occupational therapy. And we provide quick-and-easy access to comprehensive medical treatment and value-added services such as: Walk-in injury care with convenient follow-up visits All types of drug and alcohol testing, specific to industry requirements Physical examinations, testing and screenings Follow-up communications regarding services provided to employees What’s more, our two Urgent Care facilities provide you and your employees with added peace of mind—quickly addressing workplace injuries after hours and providing an easy transition to our Occupational Health Center for follow-up care.

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Legal Brief

EDITORIAL > by Jenna Bickford

Navigating the Short Sale A short sale occurs when real estate is sold and the proceeds from the sale are less than the amount needed to pay all debts that are secured by the real estate. Because the proceeds from a short sale are insufficient to pay all debts owed, the lenders must approve the sale. Unsurprisingly, mortgage lenders have historically been reluctant to approve short sales. However, as a result of increased losses suffered by lenders in the recent foreclosure crisis, lenders have become increasingly more willing to consider short sales as a viable alternative to foreclosure. Requirements for approving a short sale vary by lender and by the circumstances. Generally, a lender will not approve a short sale unless extenuating circumstances exist that render the owner unable to repay the loan and, because of a drop in the market value of the property, proceeds from a sale would be insufficient to cover all debts which are secured by the real estate. Extenuating circumstances are not mere hardships such as buyer’s remorse, a decline in the value of the real estate, or the purchase of a different home; instead, lenders will likely require circumstances such as divorce, job loss, medical emergency or illness, death, or bankruptcy, which truly render the owner unable to pay the debt. The ability to effectively and efficiently navigate an owner through a short sale is invaluable; this ability enables a Realtor or owner’s attorney to build strong rapport with other real estate professionals, strengthen his or her referral base, and even strengthen the area’s real estate market by decreasing the number of foreclosures. However, negotiating a successful short sale requires more time and effort than a typical sale and the risk that the sale will fall through is much greater.

Fortunately, there are measures that can be implemented to increase the likelihood of closing a short sale. Do Your Homework. Conduct a title search on the property early in the process to find out exactly how many lien holders exist and the amount of the outstanding debts. Determine if the owner is in default on any of the debts and whether legal action has been initiated. Ask lenders what their short sale requirements are to determine whether a short sale is possible. Conduct a comparative market analysis to determine a realistic value for the property. Calculate a good faith estimate of the sale proceeds, considering all costs of the sale, taxes, penalties, interest and commissions. Document Appropriately. Obtain written authorization from the owner so you can communicate with the lender(s) on the owner’s behalf. The listing contract should provide that the owner’s acceptance of an offer is subject to lender approval. Similarly, the sales agreement should provide that the sale is expressly contingent upon lender approval. The Pennsylvania Association of Realtors (“PAR”) has short sale addendums that may be used for these purposes. PAR also has a notice regarding owner documentation that informs owners of the types of documentation a lender may require during the short sale process. Presentation is Everything. Keep in mind that for a lender to agree to a short sale, the lender must be convinced that the property cannot be sold for the amount due under the outstanding debt(s). Present the lender with all the information needed to make this conclusion. A hardship letter should explain the extenuating

circumstances that prevent the owner from paying the debt(s). Enclose proof of the hardship, such as bankruptcy or divorce filings, death certificates, notices of layoff, or medical bills. Provide bank statements, pay stubs, tax returns, and other financial documents as evidence of the owner’s financial situation. Supply the lender with a comparative market analysis to show that the property simply cannot be sold at a price sufficient to cover the outstanding debts and closing costs. Know Your Alternatives. Always be mindful that there are alternatives to a short sale. It may be possible to work out an agreement with the mortgage lender or the lender may accept a deed in lieu of foreclosure. The owner may be able to liquidate assets to cover a deficiency or borrow funds from friends or family. The owner may decide to keep the property, attempt to refinance based upon financial hardship, or rent it out. For more information on how to navigate a short sale, contact Jenna Bickford at MacDonald, Illig, Jones & Britton LLP at 814/870-7762 or jbickford@mijb.com.

Jenna Bickford is an associate at MacDonald, Illig, Jones & Britton LLP. She is a graduate of Susquehanna University and The University of Pittsburgh School of Law. She practices in the areas of Business Transactions, Real Estate, Government Services, and Health Care.

August 2010 > www.mbausa.org > 11

A Healthy Future

How Susquehanna Health is laying the foundation for quality and value in patient-centered health care In fall 2009, Susquehanna Health held a groundbreaking ceremony for the Williamsport Regional Medical Center Patient Tower, as part of its $250-million Project 2012 initiative. The renovation will allow for the expansion of patient care areas such as the operating rooms, Emergency Department, imaging, laboratory, and heart and vascular services. Susquehanna Health’s other two hospital campuses, Muncy Valley Hospital and Divine Providence Hospital also are getting upgrades as part of the five-year master facility project.

Susquehanna Health President and CEO Steven P. Johnson recognizes the challenges guiding and shaping the health-care industry. As the head of a health system that serves an 11-county area of north central Pennsylvania, he is responsible for ensuring that Susquehanna Health is able to meet the changing patient care demands of the near future while positioning the organization for long-term success. “Some health-care analysts have suggested there will be more change over the course of the next 10 years than any time since Medicare/Medicaid was first established in the 1960s,” explains Johnson, who has worked in the health-care industry for the past 30 years. “So you want to create a facility which will be extremely flexible, and here at Susquehanna Health we are doing just that.” The health system, comprised of 11 health-care related companies that include Susquehanna Health Medical Group, Susquehanna Health Foundation, Susquehanna Home Care & Hospice, as well as Divine Providence Hospital, Muncy Valley Hospital and the Williamsport Regional Medical Center, is currently more than halfway through its Project 2012 initiative. The five-year, $250-million reinvestment and facility renovation project, started in 2007, will enhance patient care at all three hospital campuses. “There has been no major investment in our facilities or infrastructure in almost 25 years…,” states Rita Spangler, vice president of Facility Development for Susquehanna Health. “Upgrading our facilities is vital to improving our competitiveness and satisfying the increased expectations of both health-care consumers and hard-to-recruit professional staff.” The first of these enhancements is the upgrade and renovation of the Cancer Center at Divine Providence Hospital. The Center opened in May 2008 with the most precise and powerful cancer treatment technology in the world. At Muncy Valley Hospital, the newly renovated inpatient unit opened in April 2010, increasing the number of single occupancy rooms for patient privacy and better infection control. Meanwhile at Williamsport Regional Medical Center, a 240,000-square-foot patient tower is currently under construction. The new four-story tower, features 84 single-occupancy patient rooms, allows for expansion of patient care areas such as operating rooms, emergency services, imaging, lab and heart and vascular services and includes 40,000 square feet for future development. Not only will the project enhance patient care, but Susquehanna Health also has promoted Energy and 12 < www.mbausa.org < August 2010

Environmental Design (LEED) standards throughout the project. To support the patient tower, a new Energy Service Center opened last May. The new boilers are twice as efficient as most conventional systems and will help reduce the hospital’s carbon emissions by 50 percent. By this fall, the installation of a co-generation system will be complete allowing the hospital to simultaneously generate its own electricity while producing steam to operate its heating systems. Annual operating costs will be reduced by more than $1 million when the entire plant is complete. Hospital administrators say the energy efficient project has received an extraordinary level of financial support and commitment from the community already. According to Johnson, the health system’s Count on Us for Life capital campaign surpassed its $12.5 million three-year goal by raising an astonishing $15.2 million in four years. Of those donations, $1.2 million came from Susquehanna Health employees and $2 million from medical staff. “The community, including our medical staff, overwhelmingly supported reinvesting in the current locations,” notes Johnson. “We chose not to relocate to a ‘greenfield site’ and vacate these giant hospital buildings, which would be difficult to use for anything else. Instead, we found a way to revitalize existing buildings and expand our footprint in the immediate area. In return, the City of Williamsport created an institutional zone around the Williamsport Regional Medical Center large enough to serve the facilities needs for the next 50 years.” At right: Onlookers watch as the last beam is raised to the top of the Williamsport Regional Medical Center Patient Tower. The beam was covered with signatures of employees, doctors, volunteers and donors. Below: An artistic rendering of what Williamsport Regional Medical Center will look like by 2012.

Excellence in Quality and Value

Susquehanna Health is responsible for the care of nearly 15,000 inpatients and more than 420,000 outpatients each year by providing cancer treatment, heart and vascular service, neuroscience, physical rehabilitation, orthopedics and urological and gastrointestinal services. In fact, according to the 2010 Hospital Value Index, Susquehanna Health’s medical care is among the top in the nation. The health system’s flagship hospital, Williamsport Regional Medical Center, was recently named Best in State and Best in Region and ranked 26 on the Top 100 Hospital list by Data Advantage, a privately held health-care information company. The designations are based on all levels of service, care, operating efficiency, cost and performance for more than 4,500 hospitals across the United States. According to Data Advantage senior adviser John Morrow, who conducted the research, “Our focus is looking at the hospitals who are able to sustain a high level of patient experience, high level of quality and high level of safety, which CMS (the Centers for Medicaid & Medicare Services) is going to put at the top of their list as far as hospital performance, and then look at efficiency and affordability.” Williamsport Regional, notes Morrow, “paid a lot of attention to their knitting... They are not an academic medical center nor a major research center yet they really know what it is that they wanted for their community.” Since its incorporation in 1994, Susquehanna Health has enhanced the quality of care by consolidating and customizing all of its services, and was credited by the Pennsylvania Attorney General’s office with saving more than $105 million through the elimination of costly duplication of services and returning $117 million in savings to the community in the form of free and lower-cost services during its first five years. In the fall 2009 edition of the Pennsylvania Healthcare Cost Containment Council’s annual report on 31 common patient admission diagnosis, the health system’s average charge was $18,927 compared to the regional average of $25,480 and the statewide average of $39,583. “If all the hospitals in the country were able to perform at the level of top quartile hospitals, not just the top 100 – the top 750 – there is about a $60 billion savings potential over eight years…,” notes Morrow. “And that is hugely important to business and industry as health-care premiums are rising 8 to 11 percent this year.” Industry experts agree that the health system has achieved exceptional value without sacrificing quality. Most recently, Blue Cross of Northeastern Pennsylvania named the Williamsport Regional Medical Center as a Blue Distinction Center for Excellence in 2010 for spine surgery, knee and hip replacement, and cardiac care. The designation recognizes the health-care facility for meeting evidencebased thresholds for clinical quality, surgical performance, readmission practices, in-hospital care, patient education, collaboration among doctors and nurses, and post-discharge services, such as rehabilitation and home care. “It is the result of paying close attention to what the scientific evidence says is the best way to do things,” notes Johnson, “and then being uncompromising in implementing those practices for every patient every day.”

A Health-Care and Community Leader

Also part of Project 2012, Divine Providence Hospital has enhanced and expanded its Cancer Center. The facility offers a healing garden for patients to see from their chemotherapy chairs.

out Susquehanna Health’s faith-based mission “to extend God’s healing mercy by improving the health of those we serve.” Today, the health system is the largest employer in Lycoming County with more than 3,000 employees and was listed as one of the top 100 Best Places to Work in PA for 2008 and 2009. Susquehanna Health also earned the honor as a national Employer of Choice in 2005, 2009 and 2010. Only 1 percent of organizations receive the award more than once. Susquehanna Health likewise is continuously improving patient access for the communities it serves. In the past two years, the health system opened two outpatient facilities: the Susquehanna Health Medical Plaza in Montoursville and the Sports Medicine and Physical Therapy at the Eastern Lycoming YMCA. During the same timeframe the health system expanded its home health services and opened a hospital-based hospice program. Susquehanna Health, notes Johnson, has “responsibility for a large portion of the physical health of the region and also has as a major influence on the fiscal health of the region.” Historically, the health system has been a major constructive force in the region’s economic well being through its strategic partnerships with such players as Blue Cross of Northeastern Pennsylvania, Aramark, Siemens, the Pennsylvania College of Technology and The Commonwealth Medical College. For example, as a beta site for Siemens’ software, the health system has the opportunity to be an early adopter of technology. As a result, nine out of the 12 times that it has been published, Susquehanna Health has been named one of the nation’s 100 Most Wired Hospitals and Healthcare Systems by Hospitals & Health Networks, the journal of the American Hospital Association. The health system also operates a LifeCenter™ wellness facility in the Lycoming Mall as part of its pilot program with partner Blue Cross of Northeastern Pennsylvania. This outreach retail location was designed to provide a convenient way for the public to take advantage of free health education and wellness programs. “The real exciting thing about our future,” says Johnson, “is the opportunity to leverage partnerships with supply chain businesses, area employers, our hospitals, our physicians, and our patients and their families into very high quality and reasonably priced, highly satisfactory programs and services.”

Susquehanna Health’s achievements would not be possible without the daily dedication of medical staff professionals and employee service partners who carry

Divine Providence Hospital 1100 Grampian Blvd., Williamsport Phone: 570/326-8000 Muncy Valley Hospital 215 E Water St., Muncy Phone: 570/327-8137 Williamsport Hospital & Medical Center 777 Rural Ave., Williamsport Phone: 570/321-1000 Web site: www.susquehannahealth.org Shown here is a rendering of the Muncy Valley Hospital expansion featuring the Physical Medicine and Rehabilitation area and the Skilled Nursing Unit Family Visitation rooms.

August 2010 > www.mbausa.org > 13

HR Connection EMPLOYERS TO SEE 2011 MEDICAL COSTS JUMP Health-care cost growth is expected to slow in 2011, though costs are still expected to rise 9 percent, according to a survey by PricewaterhouseCoopers Health Research Institute. The survey showed health-care costs are expected to grow 9 percent in 2011, down from the 9.5 percent growth rate in the 2010 report. At the same time, the majority of health insurance deductibles will be $400 or more for the first time. Factors that are driving costs are the shifting of Medicare costs on insured patients, implementation of electronic medical records and consolidation among medical providers. STUDY: JOB STRESS CAN EQUAL HEART STRESS Job stress can start taking a toll on men’s heart health even by the time they reach their early 30s, research shows.

Insurance Postings from Patty The Departments of Labor, Treasury and Health and Human Services have issued fina l regulations relating to the grandfathered health plan status under the Patient Protection and Affo rdable Care (PPACA). Group plans existing as of March 23, 2010 are subject only to certain provisio ns of the PPACA. Certain rules define a plan as having grandfathered status. Certain plan changes will cau se a cessation of the grandfathered status. For mor e information and a closer look at the health-care refo rm bill in general, please visit www.mbausa.org.

A recent study in the Psychosomatic Medicine journal found that men who report high job strain — the combination of heavy demands and little control at the office — have thicker carotid intima-media thickness (IMT), a reliable way of determining

Patty Smith is the director of Em ployee Benefit Service s at the Manufactu rer & Business Asso ciation.

the early stages of atherosclerosis, the narrowing and stiffening of the arteries. “Developing leadership and organizing work wisely may also promote lower demands,” researchers suggest.

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Improve Employee Performance by Reducing Stress Stress management techniques benefit employers by reducing absenteeism while increasing employees’ effectiveness on the job. Techniques for management of stress fall into two basic categories: 1) those that seek to prevent and reduce stress, and 2) those that teach people how to cope with stress that cannot be prevented or reduced. By developing healthy corporate environments, companies can restructure their workplaces and redesign jobs to reduce stress. Individual employees can pursue healthier lifestyles to reinforce that they are taking control of their own lives. Busyness does not equal productivity. Frantic, disorderly activity is counterproductive to an organization’s goals because not only is too much stress incompatible with the vibrant, creative environment a company needs to stay competitive in the intense marketplace, it actually may

make employees sick. Organizations that want to get involved in their employees’ wellness and that believe their employees are unnecessarily stressed out should consider the following suggestions: • Give employees specific, challenging, yet attainable outcomes they are expected to meet. When people know they are working toward a clear-cut goal with a clear-cut deadline, they tend to regulate their own workday in order to meet it. • Put systems in place for measuring productivity. In the business world, the bottom line is, of course, the bottom line. The whole point of goal setting is to help employees become more productive. • Make the workday meaningful. When employees are fully engaged in their work, they’re less likely to perceive intensity as “stress.” • Reward employees after they meet

a challenge. A positive attitude goes a long way toward managing stress. • Make employees take lunch breaks, vacations and even mental health days. • Start a workplace “health club.” Too much stress can make employees sick. For more information on stress management techniques for your workplace, contact me at 814/833-3200, 800/815-2660 or rbruno@ mbausa.org. Rose Bruno is a PHR-certified HR generalist at the Manufacturer & Business Association.

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Our HR TOOLKIT, available at www.mbausa.org, provides instant answers to thousands of employment questions, as well as legally reviewed forms and policies that can be downloaded at a moment’s notice – no charge! As always, call our free legal hotline at 800/815-2660 or 814/833-3200 to speak with one of our employment law attorneys or HR-certified specialists anytime, no charge!

August 2010 > www.mbausa.org > 15

Your job is taking care of others. It’s our job to return the favor. As a healthcare provider, you experience significant legal developments every week within an ever-changing healthcare regulatory environment. And no matter the size of your patient population, these rapidly changing regulations require strict and often immediate compliance. That’s where we come in. Our Healthcare Practice Group offers you extensive litigation and administrative compliance expertise—providing proven solutions to the unique challenges, liabilities and risks you face each and every day. To learn more about our Healthcare Provider services, contact us today.

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DEPARTMENTS > Contact: Sheila Sterrett

Is $13 Trillion the Limit? How Excessive Government Spending is Hurting the U.S. Economy Sheila Sterrett is the director of Government Affairs for the Manufacturer & Business Association. Contact her at 814/833-3200, 800/815-2660 or e-mail ssterrett@mbausa.org.

As the federal debt surpassed an unbelievable $13 trillion, it begs the question: Does government spending truly stimulate economic growth? The “spend now, cut later” prerogative has become synonymous with the Obama administration. Take, for example, the recent “jobs” bill when House Blue Dogs initially trimmed the legislation to a whopping $146 billion, only to have the Senate fatten it back up with bailouts of $24 billion for Medicaid and $23 billion for teachers unions. Out-of-control spending is a reflection on the current administration and administrations past. Since 2000, spending on anti-poverty programs has increased 89 percent, K-12 education programs by 219 percent, and Medicare by 81 percent. Most alarming is that the federal debt has risen $2.4 trillion in about 500 days since President Obama took office or, on average, $4.9 billion a day. At three times the daily average accumulated by the previous administration, it took just 197 days for the debt to rise from $12 trillion to $13 trillion – the second shortest trillion-dollar rise in history. And while the recession is somewhat responsible for collapsing revenues and temporary expenses, runaway government spending is the nation’s long-term driver of fiscal crisis. At this rate, Bloomberg reports that President Obama’s policies are capable of increasing the debt level in excess of the value of the nation’s annual economic output. The Heritage Foundation estimates that, in 2010, Washington will spend $30,543 per household – $5,000 more than just two years ago. President Obama’s latest budget would replace temporary spending with permanent programs and, if passed, would push spending to $36,000 per household in 2020, compared to $25,000 per household before the recession (adjusted for inflation).

Americans are not oblivious to the looming economic crisis either. June 2010 Gallup and Pew polls highlighted that government debt is now tied with terrorism as the most troublesome issue for Americans and, for the first time, Americans believe the president’s economic policies have made the economic conditions worse not better. The solution? Stop spending. The idea that government spending stimulates the economy has a long history of failure – every dollar Congress infuses into the economy must first be taxed or borrowed out of the economy. This concept only redistributes wealth, as opposed to creating new spending power. The only way to increase economic growth is to increase productivity and labor supply.

Where Can Costs Be Cut? • Federal employees owe more than $3 billion in income taxes they failed to pay in 2008. • The stimulus set aside $350 million for a national broadband coverage map – even though one private firm stated it could create one for $3.5 million. • The Census Bureau spent $2.5 million on Super Bowl ads and on-air mentions by sportscasters. • The Securities and Exchange Commission spent $3.9 million rearranging desks and offices at its Washington, D.C. headquarters. • Congress has ignored efficiency recommendations from the Department of Health and Human Services that would save $9 billion annually. • Medicare officials recently mailed $50 million in erroneous refunds to 230,000 Medicare recipients. • Government auditors spent the past five years examining all federal programs and found that 22 percent of them – costing taxpayers a total of $123 billion annually – fail to show any positive impact on the populations they serve. • Improper or fraudulent Medicare spending now totals $47 billion annually – 12.4 percent of its budget.

August 2010 > www.mbausa.org > 17

Legal Q&A WE ARE TRYING TO PUT AN EMPHASIS ON WELLNESS AND ARE CONSIDERING INSTALLING A GYM AND OFFERING YOGA AND OTHER ONSITE FITNESS CLASSES. WOULD THESE TYPES OF ATHLETIC FACILITIES BE TREATED AS TAX-FREE BENEFITS FOR EMPLOYEES? Yes. Under Internal Revenue Code Sec. 132(j), employees may be given access to and may use certain onpremises athletic facilities without the value of that use being treated as wages subject to federal income tax, federal income tax withholding, FICA and FUTA. Athletic-facility benefits generally include a pool, tennis court, golf course, health club, yoga and other physical fitness instructors, or similar facilities. The use of these facilities by employees is tax-free, as long as the

18 < www.mbausa.org < August 2010

following three conditions are met: 1. The facility must be on the employer’s premises (although not necessarily the same place where the employee provides services); 2. The facility must be operated by the employer; and 3. Substantially all of the use of the facility must be by employees, former employees, and their spouses and dependents. The exclusion from employment taxes does not apply if the athletic facility is available to the general public through the sale of memberships or rental of the facilities, such as when the facility is part of a resort used by guests or residents of the resort or when an employer merely pays the membership fees of employees who join a health or country club.

Such benefits would be treated as additional wages and would be subject to employment taxes. AN EMPLOYEE HAS SUBMITTED A CLAIM FOR REIMBURSEMENT THROUGH HER HEALTH FLEXIBLE SPENDING ACCOUNT (FSA) FOR HEALTH CLUB MEMBERSHIP DUES. ARE SUCH DUES REIMBURSABLE MEDICAL EXPENSES? No. Health club dues or amounts paid to improve one’s general health or to relieve physical or mental discomfort not related to a particular medical condition are not reimbursable medical expenses. Distributions from a health FSA must be paid only to reimburse participants for qualified medical expenses incurred during the period of coverage.

DEPARTMENTS > Contact: John Onorato

Time for a Checkup on Health Risk Appraisals A health risk appraisal (HRA) is an assessment tool that can identify the precursors associated with serious illness and quantify the probable impact for an individual. The benefit of an HRA is that it can tell you about the fitness levels of your employees and can be a useful tool in controlling your health-care costs. However, a health risk appraisal cannot be required if they include disability related questions. The Americans with Disabilities Act (ADA) prohibits disability related inquires and medical exams unless they are job-related and consistent with business necessity. The law does make an exception if the disability-related inquiries and medical exams are part of a voluntary wellness program, but informal guidance from the Equal Employment Opportunity Commission stresses that a wellness program is voluntary only if employees are neither required to participate nor penalized for not participating. A health risk appraisal that includes disability-related questions and medical exams as a prerequisite for obtaining

health insurance coverage is not voluntary because individuals who do not participate in the appraisal are denied a benefit. Even so, health risk appraisals often contain many types of questions. Questions that are not disability related because they are not likely to elicit information about a disability are not subject to the ADA’s restrictions. Health risk appraisals may contain these types of questions: • “self care” questions, such as whether an employee sees a personal doctor for routine care or has a health-care directive; • “health choices” questions, such as how many servings of vegetables or fruit an employee eats, whether s/he takes a vitamin or eats breakfast; and • “health choices” questions, such as how much an employee exercises. Some disability related questions to steer clear of include: • how often the employee feels depressed;

• whether the employee has ever been told he or she has asthma, cancer, heart disease, or diabetes; • how many different prescription medications the employee currently takes; and • how much alcohol he or she consumes. For more information on the legal aspects of health risk appraisals, contact me at 800/815-2660, 814/833-3200 or jonorato@mbausa.org.

Attorney John Onorato is the vice president/ general counsel at the Manufacturer & Business Association. He assists member companies with their legal needs and HR questions.

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Company PROFILE Wesbury 31 N. Park Avenue Meadville, PA. 16335 Phone: 814/332-9000 Toll-free 877/937-2879 Web site: www.wesbury.com Number of Employees: 345 Founded: 1918

For more than 90 years, Wesbury has offered the highest quality programs and services to those in their retirement years. Wesbury has a solid foundation of experience and a strong commitment to excellence. This not-for-profit corporation presents a full continuum of care on its beautifully landscaped 110-acre campus as well as a collection of in-home services to those living in northwest Pennsylvania. At Wesbury, you will find a dedicated staff, an army of volunteers and the leadership of a Board of Directors who continuously strive to perfect and offer the many ideals that should be expected in any retirement experience — independence, security, comfort and respect for individual choice. This active residential community is comprised of Thoburn Village, a neighborhood locale that includes 64 unique independent living villas and 16 apartments; Cribbs Residential Center, providing assisted living services to more than 100 residents; and Grace Health Center, caring for 210 residents in a skilled nursing environment and that also provides a state-of-the-art memory support center, a nationally recognized wound care program and full rehabilitative services. Wesbury also offers a menu of community programs and services that includes home delivered meals, home housekeeping, nonmedical companion services and Wesbury LifeAid, a 24-hour wireless emergency response system. Wesbury is also a partner with the Meadville Medical Center, St. Paul’s Homes in Greenville, Pennsylvania and Concordia Visiting Nurses of Cabot, Pennsylvania in VNA Alliance, providing in-home visiting nurse services.

Wesbury

Quiet and secluded, Wesbury is located only minutes from the heart of Meadville, Pennsylvania. Shopping, entertainment, dining, financial and medical facilities are all available in this small-town atmosphere. For the outdoor enthusiast, beautiful and abundant woodlands, golf courses and lakes beckon Wesbury residents for exceptional outdoor sport and relaxation opportunities.

Wesbury is located in the heart of Meadville, Pennsylvania, a picturesque town in northwest Pennsylvania. The campus was founded in 1918 as an affiliate of the United Methodist Church and today welcomes residents of all faiths.

Wesbury residents enjoy the comfort and convenience of a luxury style home.

Wesbury promotes an active lifestyle for those in their retirement years and a continuum of care for those who need around-the-clock nursing.

Wesbury also has an ideal location for those who love to travel. Meadville is directly off Interstate 79, and the Erie International Airport, Pittsburgh, Cleveland, Buffalo and Niagara Falls are all within a two-hour drive. For Wesbury residents, there is always something to do. On-campus there is an array of activities, programs and amenities. Additionally, Wesbury transportation makes trips to the many local events and points of interest and can schedule personalized door-to-door transportation practically anywhere. Meadville area public transportation also has a regular stop on the campus. Affiliated with the United Methodist Church, Wesbury is committed to providing much more than just a fine collection of products and services — it is committed to providing an enriched way of life. This means that residents of all faiths are welcome. Wesbury’s chaplains host multi-denominational services and activities and also are available for counseling and spiritual support. While it is difficult to put a price on happiness, Wesbury understands that value is important. Independent research confirms that Wesbury is priced well below the national average and offers a number of financial plans that are designed to be compatible with a wide range of income and asset levels. Whatever the need may be, from a desire for an active lifestyle free of home maintenance to the need for around-the-clock nursing care, Wesbury has the answer. Wesbury is a member of the Western Pennsylvania Conference of the United Methodist Church, United Methodist Association of Health and Welfare Ministries (U.M.A.), Pennsylvania Association of Nonprofit Homes for Aging (PANPHA), and American Association of Homes and Services for the Aging (AAHSA). Wesbury also achieved EAGLE accreditation, Educational Assessment Guidelines Leading toward Excellence, from the U.M.A. as well as numerous other awards for quality and excellence. August 2010 > www.mbausa.org > 21

Events

2010 BIKE RALLY ERIE, PA JULY 15, 16 & 17

The fourth annual Roar on the Shore® bike rally, presented by the Manufacturer & Business Association, major sponsor Harley-Davidson of Erie, the City of Erie and more than 30 area business sponsors, raised funds for the construction of SafeNet’s Big Backyard Children’s Garden. For complete photo coverage, visit www.roarontheshore.com.

Thursday’s pre-ride gathering at the Casino kicked off Roar 2010.

A sign along State Street welcomes riders to the three-day rally, which was expected to inject more than $18 million into the Erie economy.

More than 6,000 bikers rode in this year’s bike parade.

Presque Isle Downs & Casino General Manager Fred Buro greets Bike Parade Grand Marshal Robbie Knievel during the VIP Party at the Casino.

Robbie Knievel led the bike parade on the American Manufacturing Tribute Bike.

Rally-goers fill The Hub.

Linda Lyons King, executive director of SafeNet, thanks the crowd for supporting this year’s charity, the Big Backyard Children’s Garden.

22 < www.mbausa.org < August 2010

Erie Mayor Joe Sinnott (right) issued a special city proclamation to Roar Board Chairman Richard Knight (left).

Skid Row performs at the Attorney Edgar Snyder Main Stage on Thursday night.

Rick Srpan (center) take Trophy at the second an by legendary bike build

Kelly and Sue Lapping of major sponsor Harley-Davidson of Erie, Jennifer Wilcox, and Mayor Joe Sinnott.

More than 800 cyclists took part in the annual Thunder on the Isle: The Mayor’s Ride at Harley-Davidson of Erie.

Blackfoot rocks The Hub in Perry Square.

Geneva lived up to its hype as one of the hottest bands on the bike circuit.

Joe Askins of Victory of Erie at Off-Road with Arlen and Cory Ness. Bikers enjoy a scenic ride around Presque Isle State Park on Friday evening.

More than 1,000 bikers rode out to Victory of Erie at Off-Road Express for the annual Roar to the Vineyards poker run.

Concertgoers packed the streets in downtown Erie.

es home the Best in Show nnual Bike Contest, judged ders Cory and Arlen Ness.

Kelly Donlon (center) was crowned the 2010-2011 Miss Roar on the Shore, shown here with past winners Christina Scavella and Deana Brink.

Molly Hatchet headlined Saturday night’s Rock ‘N’ Roar Concert. 2011’s rally is scheduled for July 14, 15 & 16.

August 2010 > www.mbausa.org > 23

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EDITORIAL > by Angie Angus

The Tools for Unlocking Exceptional Utility

Angie Angus is the manager of BOS Programs and Support Services.

It is imperative in the implementation of Blue Ocean Strategy to get the strategic sequencing in the right order. In doing so, you will ensure commercial viability and reduce risk for your company. The correct sequence is: buyer utility, price, cost and adoption. The first in the sequence, buyer utility, determines whether your product or service will unlock exceptional utility for the buyer and provide compelling reasons for people to buy it. Blue Ocean Strategy provides two powerful tools, the Buyer Experience Cycle (BEC) and Buyer Utility Map (BUM), to evaluate buyer utility. To create the Buyer Experience Cycle (BEC), you must look at your buyers’ experience from their perspective. This usually can be broken down into a minimum of six to a maximum of 10 stages sequentially, beginning with the purchase of the product or service and ending with disposal, if applicable. While a baseline cycle typically includes purchase, delivery, use, supplements, maintenance and disposal, be sure to create your own stages and substages that are customized to your customers’ experience. Next, place the stages of the BEC in order along a horizontal line beginning with the first stage and progressing to completion. This gives you the Buyer Experience Cycle and the first part of the Buyer Utility Map. Many companies fail to offer exceptional utility to their buyers because they are so enamored by the novelty of their own product or service, or are impressed by their own technology. If they fail to deliver exceptional value to the buyer, then even the most innovative products will fail. However, if your company has created a strategic profile that is focused, divergent and has a compelling tagline that speaks to buyers, then you are ready to test your idea with the BEC/BUM. To create the Buyer Utility Map (BUM), place the stages identified in the Buyer Experience Cycle along the top, horizontal axis in order of their occurrence. The vertical axis will contain utility levers, which are the ways that your company can unlock exceptional value for its buyers, starting with identifying how it may create blocks in value.

These utility levers are: Customer Productivity, Simplicity, Convenience, Risk, Fun and Image, and Environmental Friendliness. Look at each utility lever during each stage of the Buyer Experience Cycle to see where the biggest blocks for your buyers are located. For each lever, ask which stage holds the biggest block to utility for that lever. Plot an “X” on the graph where the greatest blocks are found (for example, see the completed BEC/BUM located below). Each “X” is known as a “pain point” for your buyer. The more pain points that the buyer experiences, the less likely they are to use your product or service. Remember that negatives today can be positives in your strategy tomorrow. The Buyer Utility Map shows the difference between an idea that will truly unlock exceptional value for buyers from those that are only revisions of previous ideas or offerings that are not linked to value. By looking at your product or service from the buyers’ perspective, and where their pain points exist, you open up the opportunity to retain and rejuvenate your current customer base and swim into an entire new ocean of noncustomers. Next month: Reaching beyond existing demand and seeking out noncustomers. If you are interested in learning more about how your company can explore blue oceans of opportunity, please visit mbausa.blueoceanstrategy.com or contact me at aangus@mbausa.org.

Buyer Experience Cycle/ Buyer Utility Map 6 Common Stages in the Buyer Experience Cycle (10 max)

6 Utility Levers

This article is fourth in a series that will feature excerpts from the international best-selling book, Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant, by authors W. Chan Kim and Renée Mauborgne.

August 2010 > www.mbausa.org > 25

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People Buzz ASSOCIATION HIRES MEMBER SERVICES COORDINATOR FOR CENTRAL PA DIVISION The Manufacturer & Business Association recently announced that Cynthia Biner has been hired as Member Services Coordinator for the organization’s Central Division, located at 2401 Reach Road, Suite 102, in Williamsport. As Member Services Coordinator, Biner is responsible for managing the office, coordinating events, responding to customer inquiries, and promoting membership relations in the area. AMERICAN INSTITUTE OF ARCHITECTS HONORS KIDDER AS ‘CITIZEN ARCHITECT’ Kidder Wachter Architecture and Design partner Jeff Kidder was recently honored by the American Institute of Architects’ National Board of Directors as a “Citizen Architect” and granted membership to the AIA National Board of Director’s Civic Engagement Program. The AIA’s National Board of Directors grants this distinction to approximately 1 percent of its architect members for their civic engagement in elected or appointed roles for their communities. This honor recognizes Kidder’s continuing commitment and service to many community organizations and to the architecture profession. Kidder Wachter Architecture & Design is an Erie-based architecture firm that provides architectural and project management services in the tri-state region. NATIONAL FUEL RESOURCES, INC. ANNOUNCES PROMOTION National Fuel Resources, Inc. (NFR), a wholly owned subsidiary of National Fuel Gas Company (NFG) recently promoted Shelly Spacht to senior energy consultant.

Spacht has more than 15 years of experience in all aspects of the natural gas industry. As a senior energy consultant, she is responsible for continuing the Company’s growth in both NFR’s Pennsylvania and New York service territories, and is based out of the NFR office in Erie. LOCAL ATTORNEYS NAMED TO SUPER LAWYERS LIST Several local attorneys recently have been recognized as 2010 Pennsylvania Super Lawyers. The Pennsylvania Super Lawyers designation is awarded to only the top 5 percent of all Pennsylvania attorneys following a selection process that includes peer nominations, an evaluation of professional achievement, and independent research of the candidates. Marking the fourth consecutive year in which they have received this award are MacDonald Illig Jones & Britton LLP senior partners T. Warren Jones and Roger H. Taft. Jones is a trial lawyer who focuses his practice on significant personal injury cases and wrongful death actions. His trial experience includes negligence actions, professional defense and product liability actions. Taft is a principal trial lawyer at MacDonald Illig and serves as co-chairman of the firm’s Labor & Employment practice group. He focuses his practice on employment litigation, including employment discrimination and wrongful discharge cases, and commercial litigation. Also receiving this award for the fourth year in a row is Guy C. Fustine, a shareholder at Knox McLaughlin Gornall & Sennett, P.C.

EDITORIAL > Contact: Karen Torres

Fustine is chairman of the Bankruptcy and Creditors’ Rights Group of the Knox firm. His practice is focused on business reorganization, creditors’ rights, bankruptcy and commercial litigation. In addition, Attorney Neal Devlin, a shareholder with Knox McLaughlin Gornall & Sennett, P.C. was selected for inclusion on the 2010 Pennsylvania Super Lawyers Rising Stars list, which features the top 2.5 percent of outstanding young lawyers in the state. Devlin also was named to the Rising Stars list in 2008. His practice focuses on commercial litigation, constitutional law, appellate practice, and other complex commercial litigation. > ASSOCIATION REMEMBERS CHAMPION OF DAD’S PET CARE George Ainsworth “Dad” Lang, Jr., grandson of DAD’s Pet Care pioneer George R. “Dad” Lang and son of George A. Lang, passed away July 7 at his summer home in Frewsburg, New York. He was 75. He started working part time at thenDad’s Dog Foods in Kerrtown with his father and brother Richard “Dick” Lang, and spent the balance of his working career from 1949 onward in leading DAD’s forward in the pet food industry. He and his brother Dick fostered a company that provided nutritious and great-tasting products for pets at fair and reasonable prices while creating a very caring environment for all members of the DAD’s family. George became known as “Dad” Lang by representing Dad’s in many commercials in the 1970s and ‘80s. DAD’S Pet Care has grown into a pet food manufacturer with distribution in 24 states. The Lang family still owns and operates DAD’S Pet Care from the company’s Meadville, Pennsylvania facility. August 2010 > www.mbausa.org > 27

People Buzz HAMOT NAMES NEW VP OF MARKETING AND CORPORATE COMMUNICATIONS Ellen Cohen has been named vice president of Marketing and Corporate Communications for Hamot Medical Center in Erie. In this role, Cohen will oversee Hamot’s advertising, public relations, issues management, internal communications, special events, business development and community relations activities. Additionally, she will be responsible for the Patient Services Department and the Hamot Aid Society. BETHESDA CHILDREN’S HOME HIRES CLINICAL DIRECTOR Bethesda Children’s Home in Meadville, Pennsylvania, recently announced the addition of Clinical Director Michael Murnock, NCC, LPC, BCPC, to its team.

As former director of the International Institute of Erie and Perseus House, Inc., Murnock brings a wealth of clinical and administrative experience to Bethesda. His work with state, local, and non-government agencies has been recognized through numerous awards, including those bestowed by the National Alliance of Families and Children, the Pennsylvania Governor’s Office, the Erie County Bar Association, and the City and County of Erie. ERIE CREDIT UNION PROFESSIONAL RECEIVES NATIONAL HONOR Sandi Carangi, vice president of Business Development for Erie Federal Credit Union in Erie, was presented with the Business

Development Professional of the Year Award, during a ceremony at the CUNA Marketing and Business Development Council Conference in Washington, D.C. Carangi has been in marketing for 22 years and in the credit union industry as a marketing and business development professional for 12 years. MEDICAL ASSOCIATES OF ERIE’S DR. DIMARCO HONORED Carlo J. DiMarco, D.O., M.Sc., F.O.C.O.O., ophthalmologist with Medical Associates of Erie, recently received the 2010 Distinguished Service Award from the Pennsylvania Osteopathic Medical Association (POMA), a statewide organization for physicians holding the Doctor of Osteopathic Medicine (D.O.) degree. Dr. DiMarco received the Association’s highest honor in recognition of his countless

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EDITORIAL > Contact: Karen Torres

contributions to the osteopathic profession and the POMA. A past president of the POMA and the American Osteopathic College of Ophthalmology and Otolaryngology (AOCOO), and immediate past president of the American Osteopathic Association (AOA), Dr. DiMarco has served in many and various capacities for each organization. A fellow of the AOCOO, he is also a clinical professor and regional dean of clinical medicine at the Lake Erie College of Osteopathic Medicine (LECOM). He is also director of the ophthalmology residency program at Millcreek Community Hospital in Erie. NORTHWEST SAVINGS APPOINTS EXECUTIVE VICE PRESIDENTS Timothy A. Huber has been named executive vice president of Northwest Savings Bank in his position as chief lending officer. In this position, Huber will continue to oversee the lending

activities conducted by the $8 billion bank including commercial, residential and consumer lending operations, as well as leading the development of lending strategies, practices, policies and objectives. Also, Michael G. Smelko has been promoted to executive vice president in his position as chief credit officer. Smelko will continue to supervise the Credit Administration Division, which includes the Loan Review and Loss Mitigation Departments, and provide active oversight of the bank’s credit policies and credit position. He is responsible for the ongoing review of the credit quality of the bank’s loan portfolio, including the risk ratings

assigned to individual credits. EBIZITPA WELCOMES GRANTS WRITER/RESEARCHER The Center for eBusiness and Advanced IT (eBizITPA) has hired Julia Eagles as a full-time grants writer/researcher. As the former grant writer/administrator for the Erie Port Authority, Eagles was responsible for administering more than $16 million in grants. eBizITPA ‘s mission is to assist Pennsylvania businesses and organizations with understanding, using and developing information technologies to grow the economy by providing resources to enable company formation and growth, developing technology talent and expertise, and facilitating collaborative efforts to stimulate innovation.

I made the

Northwest welcomes Steve Carman Vice President, Commercial Lending After years as one of Erie’s most highly respected relationship managers in corporate banking, Steve has joined Northwest’s team of retail, mortgage, commercial lending and wealth management professionals in pursuit of serving your every banking need. From left to right: Dan Franks, Leah Manino, Lou Sherwood, Brian Volmer, Donna Carlino, Gary Marz, and Steve Carman.

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