March 2012 Business Magazine

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BUSINESS M A G A Z I N E Manufacturer & Business Association

Agency Celebrates 10 Years of Giving Assistance, Independence to Those ‘Aging in Place’ / Page 12

VOLUME XXV, NUMBER 3

MARCH 2012

12

March 2012

Blue Ocean Strategy Center

EDITORIAL >

FEATURES >

Why health insurers are turning to smartphone technology to connect with consumers. DAVID PASSAVANT

Warren General Hospital CEO John Papalia, FACHE, discusses the hospital’s health-care services and the state of health care today.

9 / Financial Adviser

12 / Home Instead Senior Care

7 / Health Matters

What employers and their employees should know about the new regulations for 401(k)s. JAMES REIM

11 / Legal Brief

How to control your risks when bringing third parties into the workplace. JOHN W. DRASKOVIC

19 / Blue Ocean Strategy

The best strategy in the world will not be successful without people to implement it. Find out how fair process gets everyone in the organization on board. ANGIE ANGUS

SPECIAL SECTION > 27 / Events

See photo coverage of the Manufacturer & Business Association’s most recent briefings and luncheons.

DEPARTMENTS > 5 / Business Buzz 16 / HR Connection

3 / Spotlight

5

Home Instead Senior Care owners Dianne and Bob Cunningham explain how the agency, which will mark its 10th anniversary this June, is making a difference by providing assistance and independence to those “aging in place.”

20 / Pennsylvania Primary

During Pennsylvania’s April 24 primary, voters will be asked to choose more than just their candidates for president and U.S. Senate. Read more about the choices for statewide offices — attorney general, auditor general and state treasurer — in 2012.

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S S E BMUA SG IN E N I A Z Manufacturer & Business Associati

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VOLUME XXV, NUMBER 3

MARCH 2012

23 / Central PA Link

SPECIAL SECTION! Hear from Association members on how the MBA’s energy program, the Employers’ Energy Alliance of Pennsylvania, Inc., has helped them save on electricity costs.

24 / HR Q&A 28 / People Buzz

Assistance, Agency Celebrates 10 Years of Giving / Page 12 Independence to Those ‘Aging in Place’

Read on the Go! For the most current Business Magazine updates, visit www.mbabizmag.com, fan us on Facebook and follow us on Twitter! March 2012 > www.mbabizmag.com > 1

SPOTLIGHT > by Karen Torres Warren General Hospital (WGH) is an 89-bed acute care, notfor-profit facility nestled at the edge of the Allegheny National Forest in Warren, Pennsylvania, about an hour drive from Erie. The Business Magazine recently spoke with CEO John Papalia, FACHE, to learn more about WGH’s health-care services and the state of health care today.

Warren General Hospital is a community centered hospital that was constructed in 1900 in response to the need for expanded health-care services. How is WGH continuing to address the needs of the community in its delivery of care today? Over the last 10 years, Warren General Hospital has evolved from a rural community hospital to a hospital with a regional presence. Our hospital, including our state-of-the art Cancer Care Center and the Pine Grove Ambulatory Surgery Center (PGASC), draws patients from a broad geography, providing seamless access to care and services well beyond Warren County. Please explain the services that WGH provides. As mentioned above, PGASC, in Russell, Pennsylvania, is a state-of-the-art outpatient surgery center. It is located between Jamestown, New York and Warren, Pennsylvania. Patients and their surgeons enjoy the convenience and singular focus at the Center. The PGASC is an example of the progressiveness of Warren General. The PGASC is one of the few ambulatory surgery centers in a smaller population market, yet offers superior clinical service and satisfaction to residents of northwest Pennsylvania and southwestern New York. What are some recent investments that WGH has made in its network of care – infrastructure, technology, professional staff? At the core of our services are our physicians, caregivers and support staff. WGH progressively initiated a unique Physician Tuition Loan Fund with other stakeholders in Warren County to bring the best and brightest doctors back to their hometown. We have focused attention on the investment in our professional staff. We recruit and place highly skilled and trained medical, clinical and technical professionals with clinical expertise. This strategy positions us to embrace change and provide excellence in patient care, leading to highly satisfied patients and family members. At the same time, just like other hospitals, we are investing in and implementing electronic health records across our full spectrum of services to facilitate excellence in patient care. The health-care climate is stormy, with severe Medicare and Medicaid reductions in reimbursements for services. How has WGH responded? Our clinical affiliation with UPMC Hamot adds specialty depth and local access to services we do not directly provide. As the health-care landscape changes, Warren General is positioned to succeed and has a depth of resources to make pro-active long-term decisions. This facilitates us to provide concentrated efforts on strategies to improve access to primary care for our region. What is your outlook for the health-care industry in the shortand long-term? Warren General Hospital recognizes that significant changes are on the health-care horizon and the need to be progressive in our approach. We welcome this challenge and are excited for the future. For more information about Warren General Hospital, visit www.wgh.org.

VOL. X X V, NO. 3 MARCH 2012 Manufacturer & Business Association Board of Governors

Editor in Chief Executive Editor Managing Editor & Senior Writer Communications Specialist Contributing Writers

Yvonne Atkinson-Mishrell John Cline Dale Deist Bill Hilbert Jr. Timothy Hunter Dan Ignasiak Richard Knight J. Gordon Naughton John B. Pellegrino Sr., P.E. Dennis Prischak Lorenzo Simonelli Phil Tredway Jerry Wertz Ralph Pontillo rpontillo@mbausa.org John Krahe jkrahe@mbausa.org Karen Torres ktorres@mbausa.org Jessica Crocker jcrocker@mbausa.org Angie Angus John W. Draskovic David Passavant James Reim

Feature Photography Rob Frank R.Frank Photography 4320 Miller Avenue Erie, PA 16509 814/520-3985 www.rfrankphotography.com

Advertising Sales

Design, Production & Printing

Patty Welther 814/833-3200 or 800/815-2660 pwelther@mbausa.org Printing Concepts Inc. printcon@erie.net

ON THE COVER: Home Instead Senior Care owners Dianne and Bob Cunningham celebrate the agency’s 10th year of giving assistance and independence to those “aging in place,” with residents at The Regency at South Shore. For full 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 2012 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.

March 2012 > www.mbabizmag.com > 3

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GE ACQUISITION OF RAIL SOFTWARE PROVIDER RMI CLOSES Erie, Pennsylvania-based GE Transportation, the world’s leading maker of rail and transportation-related products, announced the completion of its acquisition of software provider RMI, significantly expanding GE Transportation’s Software and Optimization Solutions business to serve railroad customers worldwide. RMI is a leading provider of transportation management software solutions for railroads, rail shippers, railcar leasing companies, and intermodal services in North America. “RMI builds on GE Transportation’s Software and Optimization Solutions offerings with an array of products as well as a tremendous amount of industry,

technical, and software development and delivery capability,� said GE Transportation President and CEO Lorenzo Simonelli. “Combined, we are able to offer a portfolio of products to help customers around the globe improve their operations.� With U.S. rail freight volume expected to nearly double in the next 25 years, software solutions will continue to enable carriers to improve efficiencies and safely move more freight faster on existing rail lines. As a GE Transportation company, RMI will add to GE Transportation’s Rail technology portfolio, which includes its Evolution Series Locomotives, railway signaling and office systems, and advanced network and asset optimization solutions. For more information, visit www.getransportation.com. CHANNELLOCK DONATES $20,000 TO REVITALIZATION PROJECT Members of the Channellock, Inc. Board of Directors recently presented the borough of Conneaut Lake, Pennsylvania, with a $20,000 donation to help the community that gave the company its start achieve several revitalization goals. “Channellock, Inc., was founded right here in downtown Conneaut Lake, Pa., as The Champion Bolt and Clipper Company back in 1886 by my great-great-grandfather, George B. DeArment,� said Jon DeArment,

DEPARTMENTS > Contact: Jessica Crocker

vice president of manufacturing and engineering at Channellock. “When the opportunity to help with this project was presented, we all agreed supporting the project was the right thing to do.� Founded in 1886, Channellock, Inc. is a worldwide leader in the manufacturing of high-quality pliers and assorted hand tools. The company is headquartered at 1306 South Main Street in Meadville. For more information, visit www.channellock.com. SMITH’S REMAINS OFFICIAL HOT DOG OF THE SEAWOLVES Erie’s AA affiliate of the Detroit Tigers, the Erie SeaWolves, recently announced a new three-year partnership with Smith Provision Company. Under the terms of the agreement, Smith’s will continue to be recognized as the “Official Hot Dog of the SeaWolves� through the 2014 baseball season. “We’re excited to continue our partnership with the Erie Seawolves,� said Mike Weber, president of Smith Provision Company. “The SeaWolves are committed to delivering quality family fun, and we look forward to building upon our partnership over the next few seasons.� The family owned manufacturer of quality brand hot dogs and sausages headquartered in Erie has been the official provider of hot dogs at Jerry Uht Park since 1995.

ROMOLO CHOCOLATES SCORES NEAR PERFECT IN FOOD SAFETY AUDIT

For more information, visit www.smithhotdogs.com.

Erie, Pennsylvania-based chocolatier Romolo Chocolates recently earned top marks in a food safety audit by Silliker, Inc., scoring a 96.7 percent overall. The Good Manufacturing Practices and Food Safety Systems audit included a 99.4 percent in quality systems and a 100 percent in both processing and plant sanitation.

GANNON UNIVERSITY CHOSEN FOR PRESTIGIOUS GRANT The National Science Foundation awarded a $385,919 grant to Gannon University in Erie, Pennsylvania that will allow the university to strengthen its support for female faculty members in science, engineering and related fields.

According to Owner and Certified Master Confectioner Tony Stefanelli, who invested in upgraded machinery and equipment, the entire Romolo staff “worked hard to make this food safety system happen,� implementing processes, facility controls and employee handling practices. For more information, visit www.romolochocolates.com. Romolo Operations Manager Michael Rudolph runs bags of sponge candy through an X-ray machine as part of a safety check before the candy is sold. The machine was specially designed and built for the chocolate company by local manufacturer Eriez Magnetics.

The five-year, ADVANCE-PAID (Partnerships for Adaptation, Implementation and Dissemination) grant is designed to help Gannon more effectively recruit, retain and advance women faculty in the science, technology, engineering and math (STEM) disciplines. For more information, visit www.gannon.edu. March 2012 > www.mbabizmag.com > 5

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Health Matters

EDITORIAL > by David Passavant

Smartphone Technology to Help Health Insurers Connect with Consumers Chances are you’ve heard the expression, “there’s an app for that.” It’s a popular saying as smartphones become more commonplace and consumers spend more time using them for a wider range of tasks. It’s not surprising then that health insurers also are looking to mobile applications to enhance the way they connect with their members. Mobile platforms present a real opportunity to engage people in ways that haven’t been possible before. In the coming years, there will be some exciting ventures coming into the market that will supercharge the connection between members and health insurers. A ’New Channel’ Mass adoption of smartphones and smartphone technology will give health insurers new opportunities to engage members. It’s truly a “new channel.” More than 40 percent of adults in America now have smartphones, and that number will double in the next three to five years. These phones are essentially mini computers in the pockets of millions of consumers. We all know health insurance can be incredibly complex and confusing. Through the use of mobile apps, members have a tool that can empower them to better understand and improve their health and their use of health care. Phone vs. Online In 2012, you can expect that most of the health insurers that will be introducing mobile apps for members will begin by providing

basic services. These include mobile applications that will make it easy to search for health-care providers and to contact your insurer. For many of these services, it is true that members could just as easily go online. The Web will continue to be a critical channel for engagement of members. Health insurers will continue to increase their investment in websites. In fact, new data shows that mobile apps will drive more people to a website. But health insurers also have learned over the years that most members, for multiple reasons, do not like to regularly interact with their insurers online. It could be the time commitment is too much or there is a perceived lack of value, but industrywide, fewer than 20 percent of members tend to use the Internet to do their health insurance business. Will this change with smartphones? Most likely. That is because there are some significant differences between the way people use the Internet and how they use smartphones. Mobile apps are fundamentally different from websites for two reasons: 1) People always have the devices with them, and 2) because the screens are so small you have to be incredibly judicious about what you put on them. The most important part of delivering great technology is taking the time to understand people’s needs and motivations, then designing to fit their needs. That is what will eventually happen with mobile apps in health insurance as well.

How Mobile Apps Will Be Used Initial uses: • Access personal health record • View claims • Access a virtual ID card • Locate network providers and pharmacies using the device’s internal global positioning system. The adoption of smart devices and the maturity of the app marketplace will create fundamentally different opportunities to engage membership. This is a redux of the excitement felt at the birth of the Internet. The plans that innovate and win in this space will borrow the best ideas from other industries (travel, banking, retail and gaming), and engage members in ways that websites never could. For more information about mobile apps and health insurance, visit www.upmchealthplan.com.

David Passavant is the director of Consumer Engagement & Design for UPMC Health Plan, which is part of the integrated partner companies of the UPMC Insurance Services Division, which offer a full range of insurance programs and products. These include: UPMC WorkPartners, UPMC for You, Askesis, Community Care, UPMC Dental Advantage and E-Benefits.

March 2012 > www.mbabizmag.com > 7

CHANGING Loretha Johnson

THE FACE

OF HEALTH CARE ONE PATIENT AT A TIME Alex Burbules

At UPMC Hamot, we have an incredible responsibility. Caring for an entire region of people — each with a different story, a different need, and a different perspective. But all deserving access to the highest level of care possible. And that’s a responsibility we accept wholeheartedly. Our recent affiliation with UPMC is already helping to enhance the nationally recognized care for which we are known. With 225 more employees than at this time a year ago — including more nurses, physicians, and specialists delivering care right here — our affiliation is truly exceeding all expectations. We are seeing more patients, enhancing our technology, upgrading our facilities, and reinvesting in our community.

Nicole Pennamon

With so many challenges facing health care today, it’s nice to know that one thing remains unchanged: our commitment to growing and to providing exceptional care to each member of our community and region for years to come. Every patient has a story to tell. To hear some, shoot the QR code or visit UPMCHamot.org and click the video.

Johanna North

Allison Gifford

Affiliated with the University of Pittsburgh School of Medicine, UPMC is ranked among the nation’s best hospitals by U.S. News & World Report.

Follow UPMC Hamot on Facebook and Twitter.

Financial Adviser

EDITORIAL > by James Reim

Fees for 401(k)s Will be Revealed in 2012 Come July, some 65 million workers with 401(k) plans are in for a change. For the first time ever, providers will have to disclose what workers are paying for the investments in their 401(k) plan. Under the Department of Labor’s (DOL) new regulations, 401(k) plans will be disclosing detailed information to sponsors and participants about fees and expenses associated with their funds and their company plan. The first category is Plan-Related Information and will contain details of plan structure, administrative and recordkeeping fees, and expenses per individual account including costs of plan loans. At least quarterly, participants will receive statements showing the dollar amount of fees paid along with a description of the services provided. The second category is InvestmentRelated Information, which includes performance data, benchmark information, and total annual operating expenses expressed as both a percentage of assets and a dollar amount for each $1,000 invested. Any shareholdertype fees or restrictions on the ability to purchase or withdraw from the investment also will be shown. A “Comparative Format Requirement” directs that participant information be furnished in a chart or similar format designed to facilitate a comparison of each investment option available under the plan. The DOL estimates the new rule will cost 401(k) providers $425 million in 2012 and save participants 54 million hours (valued at nearly $2 billion) of gathering comparative data and collecting expense information.

Critics of the DOL’s new regulations say all this 401(k) fee and expense disclosure could backfire, and that plan participants run the risk of choosing funds based solely on cost instead of what might be best for their overall portfolio. We think another setback may be greater dissatisfaction with 401(k) plans in general. Alternative for Small Businesses With Fewer Than 100 Employees Employers with fewer than 100 employees have another option with much less hassle, expense and reduced fiduciary liability — a SIMPLE IRA Plan. The DOL’s publication on SIMPLE (Savings Incentive Match Plan for Employees) lists the following benefits: • SIMPLE IRA Plans are easier to set up and run; • Administrative costs are low; • You are not required to file annual 5500 financial reports; • Employees can contribute through payroll deduction to either a Traditional or Roth IRA; and • Employers can either match (up to 3 percent) the employee contribution of those who choose to participate or contribute 2 percent of pay to all eligible employees. Like a 401(k), a SIMPLE IRA Plan provides you and your employees with a way to contribute toward retirement. Unlike a 401(k), the SIMPLE IRA has a reduced fiduciary liability. Employers have limited liability since IRA accounts are set up for each eligible employee and participants control their own investment choices.

credit of up to $500 per year for each of the first three years for the cost of starting a SIMPLE IRA Plan. IRS Form 8881, “Credit for Small Employer Pension Plan Startup Costs,” provides information about this credit. Please contact your accountant for any tax advice. In light of the new DOL regulations and forthcoming information on services, performance and expenses, it is important for employers and their employees to know what is coming, and to be prepared to address the questions and concerns that are sure to arise. For the multitude of employers with fewer than 100 employees, this may be a good time to consider additional options and, specifically, SIMPLE IRAs. For a copy of the DOL or IRS publications, SIMPLE IRA Plans for Small Businesses, contact my office at 814/833-0440 or visit www.dol.gov. You also can visit www.ticERIE.com for more information. All Securities Offered Through The Investment Center, Inc. Member FINRA/SIPC Advisory Services Through IC Advisory Services, Inc. – A Registered Investment Advisor The Investment Center of Erie is not affiliated with The Investment Center, Inc. or IC Advisory Services, Inc.

James Reim is a chartered financial analyst and financial adviser with The Investment Center of Erie, Pennsylvania. He has more than 25 years of experience in the investment and wealth management business. Reim structures investment portfolios and provides financial and retirement planning for individuals, corporations, endowments, foundations and pension plans.

Another interesting feature is that employers may be eligible for a tax

March 2012 > www.mbabizmag.com > 9

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Legal Brief

EDITORIAL > by John Draskovic

Control Your Risks When Bringing Third Parties Into the Workplace Maintenance, repairs, construction, inspections and evaluations are just a few reasons why businesses must allow third parties into the workplace. These third parties vary from sole proprietors or independent contractors to large corporations. With these activities comes increased risk of workers’ compensation claims, personal injury claims, property damage claims and business interruption, to name a few. Most often these risks are allocated among the parties with contracts or terms and conditions contained in purchase orders or invoices. All too often, however, these documents do not adequately address a party’s financial ability to meet its contractual obligations. One way to ensure that the appropriate parties have the financial ability to meet their financial obligations is to have the appropriate insurance coverage in place prior to any worksite activity. Certificates of Insurance Businesses often require vendors, independent contractors and other third parties entering the worksite to present a Certificate of Insurance. These certificates typically pertain to comprehensive general liability insurance and/or workers’ compensation coverage. A common misconception about Certificates of Insurance is that they convey coverage on the holder. They do not. The naming of a business on a Certificate of Insurance is not evidence that coverage exists for that business, nor does it guarantee the business is an additional insured under such a policy. At best, the Certificate of Insurance is evidence that a policy of insurance exists. It is the language of the insurance policy, not the Certificate, which governs coverage and whether an entity is afforded the status of an additional insured.

A better way to show that an entity has the financial ability to meet its contractual obligations regarding liability is to obtain a copy of the insurance policy or, at a minimum, the Declarations Page that outlines the coverage and limits. Consideration also should be given to requiring the third party to have your business identified as an “additional insured” on the Third Party’s Declarations Page. If your business is identified as an “additional insured,” the underlying policy should have an “additional insured” endorsement. Consideration also should be given to the Pennsylvania Construction Misclassification Act (PCMA), which took effect on February 10, 2011. The Act was intended to address employers attempting to avoid labor costs, including withholding income taxes and paying Social Security, Medicare and Unemployment taxes. Many times, vendors performing services for a business will identify themselves and their associates as “independent contractors.” Under the terms of the new PCMA, an individual who performs services in the construction industry for remuneration is an independent contractor only if: • The individual has a written contract to perform such services. • The individual is free from control or direction over performance of such services, both under the contract of service and in fact. • The individual is customarily engaged in an independently established trade, occupation, profession or business. An individual is considered to be “customarily engaged in an independently established trade, occupation, profession or business” if the individual possesses the essential tools and equipment; may realize a profit or suffer a loss as a result of performing the services; performs services through a business in which the individual

has a proprietary interest; maintains a business location that is separate and apart from the location of the person for whom the services are being performed; previously performed the same or similar services for another person or holds himself out to other persons as available and able; and, in fact, is available and able, to perform the same or similar services. Lastly, the individual must maintain a liability insurance policy of at least $50,000. If the vendor is not a true independent contractor, your business may be exposed to increased workers’ compensation liability for any injury involving the socalled independent contractor or the contractor’s employees. For more information, contact John Draskovic at MacDonald, Illig, Jones & Britton LLP at 814/870-7653 or jdraskovic@mijb.com.

John W. Draskovic is a senior partner in the law firm of MacDonald, Illig, Jones & Britton LLP, where he is chairman of the firm’s Workers’ Compensation Group and a member of the firm’s Litigation and Labor Groups. He practices exclusively in the areas of civil litigation and workers’ compensation. His litigation practice consists primarily of defending insurance carriers and businesses from all variety of claims. His employment practice includes representing carriers and selfinsured employers in workers’ compensation and other employmentrelated claims.

March 2012 > www.mbabizmag.com > 11

Dianne and Bob Cunningham, owners of Home Instead Senior Care in Erie, are dedicated to making a difference in aging today, shown here with residents at The Regency at South Shore. The agency’s caring and compassionate CAREGivers provide one-on-one, non-medical assistance for seniors in the Greater Erie area.

Agency Celebrates 10 Years of Giving Assistance, Independence to Those ’Aging in Place’

When Tal Crandell speaks about his late mother, Betty, he describes a proud and loving woman dedicated to her family, their real estate company and the community in which she was born and raised. “There was no bigger ambassador for the City of Erie than Betty Crandell,” insists her son, 44. In 2002, however, Betty, was diagnosed with Alzeheimer’s disease, and Crandell moved her to Pittsburgh to live with him. “In hindsight, I thought we could care for her, but I soon realized that I had put her on an island,” he says. The best place for Betty, he found, was to be in a familiar setting and, in this case, her home in Erie. But being 120 miles away from her son meant finding a home care aide that they both could be comfortable with and trust. That’s when, based on a recommendation, the family turned to Home Instead Senior Care, a leading resource for in-home care services in the Greater Erie area. The agency is owned and operated by Erie natives Dianne and Bob Cunningham.

compassionate CAREGivers who were truly caring. They were advocating for her to the end.”

Why Home Care Services?

Census data shows that Pennsylvania has the highest proportion of citizens 65 and older next only to Florida. The Commonwealth also is one of the top five states for baby boomers, at 3.4 million. With individuals living longer due to medical advances and the aging baby boomer population, more families are being forced to make serious care decisions, and turning to agencies like Home Instead. Home-helper, companionship and personal care, as well as one-of-a-kind Alzheimer’s and dementia support services, give families a reliable and well-trained resource for home care. The agency’s CAREGivers also provide flexible scheduling — an hour a day, several days a week, or round-the-clock — to help alleviate the strain of having to balance work and other responsibilities, while caring for an elderly parent or relative.

“As soon as I met Dianne, there was a comfort level,” states Tal Crandell. “The compassion and Dianne’s personal involvement were incredible.” A team of Home Instead’s trained CAREGiversSM, specifically matched for Betty’s needs and personality, provided care — everything from housekeeping to errands, doctor appointments, personal care and pill reminders — that enabled her to live independently in her home as long as possible. Each week, they sent a communications log of her daily activities and health and emotional state to her family, so that they could be active participants in her day-to-day care. Years later when the Alzheimer’s advanced to the point where she needed to move to a skilled nursing facility, it was these same Home Instead CAREGivers who helped her transition to the new setting. “I don’t wish this disease on anyone. It will devastate a family,” says Crandell. “But with a team like Home Instead, you have a feeling of comfort. That was one of the most important things to me. They provided a team of 12 < www.mbabizmag.com < March 2012

About: Home health agency that provides oneon-one, non-medical assistance for seniors Location: 3910 Caughey Road, Suite 220, Erie, PA 16506 Services: Companionship, meal preparation, light housekeeping, medication reminders, personal care, shopping, errands, and Alzheimer’s and dementia care are available 24 hours a day, seven days a week, year-round. Phone: 814/464-9200 Website: www.homeinstead.com/eriepa

“Life is so stressful,” explains Home Instead President Dianne Cunningham. “We really feel that we are blessed to be able to contribute to quality of life again for a lot of families.” Founded in 1994 by Paul and Lori Hogan in Omaha, Nebraska, and spurred by Paul’s own experience of caring for his grandmother, Home Instead is today a company with 900 locations in the United States and across the globe. The agency has been providing one-onone, non-medical assistance for seniors in the Erie, Crawford and the neighboring western New York region since the local office opened in 2002. Dianne, a well-known marketing professional, was introduced to the agency at the urging of a close friend, the late Jean Farrah. She was hired as one of Home Instead’s first employees and soon became its director of operations. In 2007, the former owner, Carolyn Matters, announced her plans to retire, and, by 2009, Dianne took over the business with her husband, Bob, a former auto industry executive. The Cunninghams say it was a life-changing moment and leap of faith, but one they believed was the right decision. Since that time, the couple has nearly doubled the size of the operation, which employs approximately 200 full-time and part-time employees, including nine office staff and a registered nurse. This June, the agency will mark its 10th anniversary in the Erie area — a testament to the business that the Cunninghams describe as their “hearts’ passion.” “To us, it’s personal. We are family owned and operated, and our employees, we feel, are family,” explains Bob, Home Instead’s chief executive officer and chief financial officer. “We are always available to them personally and to any one of the families we care for.”

Compassionate CAREGivers

Alicia Italiani previously worked in an office setting, but wanted to make a difference in people’s lives and found her calling at Home Instead. “I was a caretaker for a relative, and I experienced firsthand how much of a difference it makes to be present for a person,” she says. “I can now say that it is more than a job; it is a vocation. It is a part of me.” Among Italiani’s cherished clients is 99-year-old Harriet Crawford Jones, who will celebrate her 100th birthday this May. The soonto-be centenarian has shared numerous stories about her life experiences, and Italiani gets to enjoy hearing them for the first time. “Every day it is something new, something different,” she says, welling up with tears. “I consider it a privilege to be a part of her life.” Such an emotional bond is quite common at Home Instead. CAREGivers are thoroughly screened, extensively trained, insured and bonded, but they also are matched with clients based on their passions, interests and similarities.

CAREGiver Alicia Italiani escorts Harriet Crawford Jones on a recent shopping excursion in the Home Instead company car. The agency’s services also include companionship, meal preparation, personal care, light housekeeping, medication reminders, errands, and Alzheimer’s and dementia care.

“I called Dianne and she came to my aid,” says Hedges. “She did a phenomenal job.” Home Instead responded quickly and found the right team of CAREGivers for Hedge’s mom. “No. 1, they were so accommodating to me when we were in crisis mode,” she says. “They definitely take those extra measures to match the right personality with the client.” The impact that Home Instead’s CAREGivers have on their clients is often recognized. The agency routinely receives letters and thankyou notes from families for their care and compassion. When clients pass away, their CAREGivers have been mentioned in their obituaries or asked to serve as pallbearers — because of these special bonds. “For us, it’s not just about providing superior care. It’s about enhancing lives and providing hope to an aging population,” states Dianne. “And it’s that passion — to change the face of aging by positively impacting one life at a time — that gets you through the hardest of days.” Home Instead strives for nothing short of excellence. The agency participates in the Pursuing Excellence by Advancing Quality program, and J.D. Power and Associates routinely surveys CAREGivers and clients to ensure consistent delivery of high quality service. “Quality of care is our No. 1 objective,” adds Bob, “and the quality of life that we can provide.” In recognition of this commitment, Home Instead selects CAREGivers of the Quarter as well as a CAREGiver of the Year. The honorees are recognized at an annual dinner at which every CAREGiver receives a present. > Home Instead distinguishes itself within the home care industry by its personal approach to caregiving. Shown here are Darcy Rees, director of Client Care, and the late Frank Endean, former president of Sterling Factories, Inc. and Sterling Factories of Canada, Ltd. Endean also served as vice president at the Ervite Corporation in Erie.

Darcy Rees, Home Instead’s director of Client Care, says finding the right match starts with a phone call and then a free care consultation to determine the needs and personality of the client, their likes and dislikes. Once a schedule and CAREGiver is assigned, the same Home Instead representative returns with that CAREGiver to meet the client for the first time. “If it’s two days a week, we don’t want two different faces,” explains Rees. “Consistency is huge.” Linda Hedges recalls the day that she first called Home Instead to find care for her now 82-year-old mother. Hedges’ brother had been the primary caretaker until he passed away unexpectedly. Living in Florida, Hedges needed someone who could assist her mother with her memory loss. She knew of the agency from a past experience with her mother-in-law. March 2012 > www.mbabizmag.com > 13

Home Instead Senior Care gives back to the local community in a big way. The Cunninghams recently made a major donation on behalf of their team of CAREGivers to the Alzheimer’s Association of Northwestern Pennsylvania’s Walk to End Alzheimer’s campaign.

It is why Dr. Lin works hand in hand with agencies like Home Instead as part of a referral network. Home Instead also refers clients to the Institute and its community liaison Yvonne Gulick as needed. “Our goal,” says Dr. Lin, “is to work together.”

Community Oriented “We want to give back and recognize them for their exceptional care,” notes Bob, “and it sets us apart.”

Educational Resource

Being confronted with how to care for a loved one can be a difficult decision, and that is why Home Instead’s approach is to both listen and direct. According to the Cunninghams, the agency frequently receives calls from “Kathys” and “Bobs,” not sure where to turn for assistance for their aging parent or relative. “Our mission is to be an education resource for families, from medical devices and physicians, to patient advocacy,” states Dianne. Home Instead also considers itself to be the “go to” agency for Alzheimer’s and dementia in a home care setting, with specialized training courses established in conjunction with the renowned George C. Glenner Alzheimer’s Family Centers. This year, Home Instead launched its new Alzheimer’s and Other Dementias CARE Program in which 100 percent of its CAREGivers will be certified. At the core of the program is its exclusive Capturing Life’s Journey LifeJournal, a detailed book to help capture a senior’s life story. Home Instead combines this tool with its “best friends” approach to caring for that individual. One recent success story involves a former Army officer who refused to get up and shower. His Home Instead CAREGiver, aware of his background, used the correct military lingo to motivate him — and it worked. “Those are fond memories for this gentleman,” explains Dianne, “and the CAREGiver was able to be successful. It is all about finding new ways to redirect someone, and it is different for each individual. That is a key part of what we try to do and then we enlighten families on taking that a step further.” Home Instead offers the program as free training classes for the families it serves — a learning opportunity that no other area home care agency provides. “It’s about empowering family members and CAREGivers not only to come together and support each other,” notes Dianne, “but to find new ways to be successful when it comes to quality of life for their loved ones who have that disease.” Complementing these programs is Home Instead’s network of area resources. The agency partners with many area organizations to ensure the needs of their senior clients are met. James Y. Lin, D.O., MS, director of the Lake Erie College of Osteopathic Medicine’s Institute for Successful Aging, says the goal for geriatricians is for their patients to age at home successfully for as long as possible. “Multiple studies show that quality of life improves if they can stay in their homes longer,” explains Dr. Lin. In fact, “People who have memory impairment and are able to stay home with the help of home health aides have less depression, take fewer anti-psychotic medications and anti-depressants. They also have less agitations, since they are very familiar with their CAREGivers.” 14 < www.mbabizmag.com < March 2012

As a local, family owned business, Home Instead is keenly aware of the importance of supporting the community in which it operates. The agency works with local vendors and regularly participates in charitable causes, like the Be a Santa to a Senior® program, which it has sponsored for the past five years. This holiday season, Home Instead wrapped and delivered 250 gifts for financially challenged seniors. “We got the names from agencies throughout Erie who knew of a senior who was lonely,” says Bob. “It was the best thing we could have done for them at Christmas. They were thrilled, and so were we.” The Cunninghams also support organizations such as the Flagship Niagara League, Erie City Mission and Barber National Institute, and are active advisory board members of the Alzheimer’s Association of Northwestern Pennsylvania — a nonprofit agency that is both near and dear to their heart. The pair recently presented a $10,057 check from the Home Instead CAREGiver team to the Association for its Walk to End Alzheimer’s campaign. The donation was the largest contribution locally, and among Home Instead’s 900 franchises. This February, the Cunninghams represented the state at a threeday Alzheimer’s Leadership Summit in San Diego. The intent was to bring the Association’s strategic focus information back to this area. “Our No. 1 goal this year, as far as the Alzheimer’s Association is concerned, is to make others aware of this insidious disease, and for those who have been affected by Alzheimer’s to maybe make some donation in honor of their loved one,” says Dianne. “That is our mission.” For Home Instead, it’s initiatives like these — and its approach to improving the quality of life for seniors and families in the community — that truly distinguish it within the home care industry. “We are a global company well on our way to being among the most admired in the world,” explains Dianne. “Not because we will make a list, but because we are changing the way people think and feel about aging every day. Everything we do at Home Instead makes a difference — and we are never standing still. And that means we embrace change; share our hearts; educate families; and build trust with our community. We’re making every minute count as we help seniors ‘age in place.’ ”

Home Instead Senior Care’s Erie office displays the agency’s logo and tagline, “To us, it’s personal.”

Saint Vincent Health Center, the Erie region’s largest hospital and only locally owned, faith-based health system, continues to focus on improving the delivery of health care for this community. And, Saint Vincent is prepared to meet the challenges of health care reform, increased competition and an unsteady economy. St Vincent

#OMPANY 0ROlLE Saint Vincent Health System 232 West 25 Street Erie, PA 16544 Phone: (814) 452-5000 Fax: (814) 452-7611 Product or Service Health Care Website www.SaintVincentHealth.com Number of Employees 2,993 Founded in 1875

As set forth nearly 140 years ago by the Sisters of St. Joseph of Northwestern Pennsylvania, Saint Vincent is driven by its mission to efficiently treat patients while focusing on providing the highest possible quality of care. Saint Vincent is proud to be named among the nation’s best regional hospitals by US News & World Report. In awarding Saint Vincent this designation, US News & World Report stated: “Hospitals like Saint Vincent offer a high level of medical care to communities that otherwise might have limited options. They are fully capable of providing first-rate care, even to most patients who have serious conditions or need demanding procedures.” Saint Vincent is consistently recognized on a national level for meeting and exceeding quality health care measures set forth by Highmark, Premier and the Joint Commission. Saint Vincent is also proud that more of its physicians and physician practices have been recognized by the National Committee for Quality Assurance (NCQA) than any other in the Erie region. By implementing Evidenced-Based Practices Saint Vincent has seen a 12-15-percent reduction in patient readmission rates and a 22-percent reduction in the number of obstetric induction rates. Both are key indicators in determining quality of patient care.

Surgeons at Saint Vincent are utilizing high-definition, laparoscopic and robotic surgical equipment when appropriate, meaning a more precise view for the surgeon through smaller incisions and a faster recovery for patients. These specialists are bringing new techniques which has provided for early diagnosis, faster treatment and better recovery for patients. Health care reform will change the way health care is delivered to a pay for quality performance model, and Saint Vincent is prepared. The Patient-Centered Medical Home is a new method of primary care delivery designed to coordinate care more effectively, improve communication among doctors, patients and insurers, and most importantly, provide better outcomes for patients. Saint Vincent is dedicated to this new model of patient care and in fact more primary care practices in the Saint Vincent Health System have already been certified as Patient-Centered Medical Homes than any other health care provider in the region. Moving forward, Saint Vincent seeks to partner with organizations that share a similar vision for providing the best possible care for patients in the Erie community. Saint Vincent will soon form a clinical collaboration with the Cleveland Clinic in two major areas: Heart and Vascular, and Neurosciences. Saint Vincent will remain a locally owned and locally governed hospital, but will have immediate access to specialists at one of the highest rated health systems in the country. Saint Vincent remains focused on providing the right care: top quality patient-centered care, at the right place: in a patient’s hometown, not miles away, at the right time: now.

HR Connection ’THRIVING’ WORKERS LEAD TO BETTER JOB PERFORMANCE For workers to be high performing, they need to be more than content. Recently researchers at various universities in the United States and Australia surveyed more than 1,200 white and blue-collar workers in various industries about learning, growth, personal energy, retention rates, health, overall job performance and organizational citizenship behaviors. The study, published in the Harvard Business Review, found that those who fit their description of “thriving” “demonstrated 16 percent better overall job performance and 125 percent less burnout than their peers,” and were “32 percent more committed to the organization and 46 percent more satisfied with their jobs.” Among other things, the researchers found that workers who were thriving

on the job called in sick less often, resulting in lower health-care costs and less lost time for the company. MAJORITY OF U.S. EMPLOYERS SAY WORKPLACE SAFETY DELIVERS RETURN ON INVESTMENT Ninety-five percent of business executives report that workplace safety has a positive impact on a company’s financial performance, according to results from The Executive Survey of Workplace Safety conducted by the Liberty Mutual Research Institute for Safety. Of these executives, 61 percent believe their companies receive a return on investment of $3 or more for every $1 spent. The survey also shows that executives realize the benefits of workplace safety go beyond the company’s bottom line, with 70 percent reporting

that protecting employees is a leading benefit of workplace safety. OSHA UNVEILS NEW WEB PAGE FOR WINTER STORM HAZARDS Winter started off relatively stormfree in many parts of the country, but more typical weather rolled in with the new year. In response, OSHA has created a Web page, www.osha.gov/dts/ weather/winter_storm, to help protect workers from hazards they may face during winter storm response and recovery operations. The page provides guidance on how employers and workers can recognize storm-related hazards and the necessary steps to take. It includes guidance for those clearing heavy snow in front of workplaces and from rooftops, workers who encounter downed power lines or travel on icy roads, and those restoring power after storms.

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16 < www.mbabizmag.com < March 2012

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DEPARTMENTS > Contact: Stacey Bruce

Update: New Interim Guidance on W-2 Reporting Although this issue was addressed in the October 2010 Business Magazine, there have been updates and extensions that deserve discussion. The Internal Revenue Service (IRS) has issued interim guidance to employers on the informational reporting requirements on each employee’s annual Form W-2 of the cost of health insurance sponsored by the employer. The Patient Protection and Affordable Care Act provides that employers are required to report the cost of employer-sponsored health-care coverage on the W-2. Notice 2010-69 made this requirement optional for all em-

ployers for the 2011 Forms (usually distributed in January 2012). In the guidance, the IRS provides further relief for smaller employers (those filing fewer than 250 W-2 forms) by: 1) making the requirement optional for them at least for 2012 (usually distributed in January of 2013); and, 2) continuing this opt-out for smaller employers until further guidance is issued. In other words, those employers who are granted relief of reporting will not be required to report the cost of health coverage on any forms prior to January 2014. Transition relief will continue until further guidance is issued.

The new guidance — the 2011 Form W-2, prior IRS Notice 201069 deferring the reporting, and Notice 2011-28 — is available on IRS.gov. For more information on this recent interim guidance, contact me at 814/833-3200, 800/8152660 or psmith@mbausa.org.

Patty Smith is the director of Employee Benefit Services at the Manufacturer & Business Association.

March 2012 > www.mbabizmag.com > 17

EDITORIAL > by Angie Angus

Build Execution Into Strategy Through Fair Process Angie Angus is the manager of BOS Programs and Support Services.

This article is part of a series that features 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. Many companies create strategic plans but fail to successfully implement their plan. The area that most companies fall short is during execution. The best strategy in the world will not be successful without people to implement it. Fair process gets everyone in the organization on board. According to Blue Ocean Strategy, “As in legal settings, fair process builds execution into strategy by creating people’s buy-in up front. When fair process is exercised in the strategymaking process, people trust that a level-playing field exists. This inspires them to cooperate voluntarily in executing the resulting strategic decisions. Voluntary cooperation is more than mechanical execution, where people do only what it takes to get by. It involves going beyond the call of duty, wherein individuals exert energy and initiative to the best of their abilities — even subordinating personal self-interest — to execute resulting strategies.” Fair process is defined by three elements: engagement, explanation and clarity of expectation. The Three E’s Engage people in the decision-making process regardless of their position in the company. Ask for opinions and allow discussion to support or refute ideas. When people are asked their opinion, they feel valued as both a person and an employee. This also is a great opportunity for management to receive and refine ideas to build both a stronger strategic plan and a committed work force. Provide employees with an explanation on the decisionmaking process and the strategy. Have you ever been told to do something but not given a good reason why you should do it? Although you may still choose to do the task, you may not have a good attitude about accomplishing it. That is exactly what can happen if a company starts to direct employees to accomplish items in their strategic plan without explaining the reasons. Management should communicate the plan to all the employees, how the decisions were made, and how the changes will help the company to become more successful.

Finally, management should set clear goals and targets for employees. Clarifying expectations from the onset can minimize confusion and conflicts. If everyone has clearly defined roles, the strategy can be implemented more rapidly and successfully. Strategy Execution With and Without Fair Process A manufacturing company with two facilities in separate locations chose to conduct the execution of their new strategy differently based on the perception that one work force is easier to work with than another. Facility A has a compliant work force that dissolved their union because management and employee relations were so good. Facility B had unionized workers that were expected to resist the changes that would be brought about by the new strategy. So as not to disturb the productivity of Facility A, the management team hired consultants to come in and observe employees, meet regularly with the plant manager and draw up a plan. The employees became suspicious of the strangers who were looking over their shoulders, taking notes and quietly speaking to the plant manager. Rumors started to circulate that the consultants were there to downsize. Morale plummeted and attitudes became hostile. Without the use of fair process, the implementation was a disaster with employees refusing to execute the new strategy. In comparison, all three principles of fair process were used during the implementation at Facility B. The employees were engaged through a series of input meetings. The management team explained why the changes were needed as well as the benefits that they would bring. They also set a timeline for implementation and communicated clear goals and expectations. The result was a smooth transition and successful execution of the new strategy in the second plant. By utilizing the three E’s of fair process, you will build trust and commitment with your employees and have voluntary cooperation in the execution of your strategy. 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.

March 2012 > www.mbabizmag.com > 19

OntheHill Voters Guide for 2012 Pennsylvania State Elections

During Pennsylvania’s April 24 primary, voters will be asked to choose more than just their candidates for president and U.S. Senate. In fact, there are three statewide offices to consider — attorney general, auditor general and state treasurer, as well as state House and state Senate. In states that hold primary elections, voters choose their party’s nominees to run in the general election by casting ballots. Pennsylvania holds closed primary elections, meaning you must be a member of the party to vote for that party’s candidate. For example, you could not vote in the Republican primary unless you are a registered member of the Republican Party.

Statewide Elections: The three statewide row offices — attorney general, auditor general and treasurer — are up for election in 2012. Each office is term-limited to two four-year terms. Attorney general and auditor general are often seen as a jumping point for election as governor in the Commonwealth.

Attorney General: Current Attorney General Linda Kelly took the place previously held by Governor Corbett and will not seek reelection. The attorney general’s office became an elected office in 1980 and has only been held by Republicans since that time. There are currently three Democrats and one Republican who have announced they will run for the seat.

Cathleen Granahan Kane

Dan McCaffery

Patrick Murphy

David Freed

Democrat

Democrat

Democrat

Republican

Assistant District Attorney, Lackawanna County

Commercial Litigator, Freidman, Schuman, PC

Former Congressman; Partner District Attorney, Cumberland with Fox Rothschild LLP County

Kane served as an assistant district attorney for Lackawanna County, beginning in the child abuse/sexual assault unit. Simultaneous to the duties of this unit, Kane specialized in cases involving elder abuse, prosecuted whitecollar criminals, and exposed abuses in Orphans’ Court.

McCaffery was raised in Philadelphia. He volunteered for an Army combat unit. After transferring to the Reserves, he graduated from both Temple University and Temple University School of Law. He served as an assistant district attorney in Philadelphia for six years. For the past 15 years, he has worked as a commercial litigator with the law firm Friedman, Schuman, PC.

Murphy represented the 8th District of Pennsylvania from 2007-2011. He served in the Army in Bosnia and later Iraq. Prior to his time in combat, he was an assistant professor in the Department of Law at West Point. He also served as judge advocate and as a special assistant to the U.S. attorney for the Southern District of New York.

20 < www.mbabizmag.com < March 2012

Freed has served as Cumberland County district attorney since December 2005, at that time becoming the youngest district attorney of a fourth class county in the Commonwealth. Prior to this position, he served in both the Cumberland and York County district attorney offices. He also worked in the private practice of law, concentrating on insurance defense litigation.

DEPARTMENTS > Contact: Lori Joint 203 State House Representatives: All state representatives will face re-election in 2012, an office that is elected every two years and not constrained by term limits. Since 2010, Republicans have held a 112-91 majority. Republicans are hoping to solidify their control in 2012 by gaining ground in one or more of the 10 open seats and new districts created by redistricting. Five of the retiring legislators are Democrats and three are Republicans. Additionally, five state representatives, three Democrats and two Republicans have resigned from their state seats after winning municipal elections in the 2011 general election. Two of those districts have been moved due to redistricting. Recently, Representative John Hornaman of Millcreek Township, D-3rd District, announced that he would not seek reelection to a fourth term.

25 State Senators: One-half of the state Senate is elected every other year (senators serve an unlimited number of fouryear terms). There are nine Democrats and 13 Republicans seeking re-election. Three Republicans have officially announced they will not seek reelection in 2012, two of whom represent portions of Erie County — Republican Senators Jane Earll and Mary Jo White. Senator James Brewster, a Democrat, saw his district moved from Allegheny County to Monroe County because of redistricting. Republicans hold majority control of the Senate, 30 to 20, and are seeking to expand it in the 2012 General Election.

State Treasurer: The state treasurer, often called the chief operating officer of the Commonwealth’s purse, is head of the Department of the Treasury. Current Treasurer Rob McCord, a Democrat, was elected in 2008 and is eligible for a second term.

Auditor General: This seat is one of the few in Pennsylvania that is bound by term limits; therefore, current Auditor General Jack Wagner, a Democrat, will not seek re-election. Unlike the attorney general, this seat has been elected since 1850 and is held most recently by Democrats.

Rob McCord (Incumbent)

Diana Irey

Eugene DePasquale

John Maher

Frank Pinto

Democrat

Republican

Democrat

Republican

Republican

Venture Capitalist

County Commissioner, Washington County

State Representative, York County

State Representative, Allegheny County

Democrat Rob McCord won the 2008 election for state treasurer. Previously, McCord was a business leader, serving as senior executive at Safeguard Scientifics from 1994 to 2007. From 1996 through 2007, he also led the Eastern Technology Council, a trade association that served hundreds of fastgrowing companies.

In November 2011, Irey won re-election to her 5th term as Washington County Commissioner. She is the only woman to be elected to that post. She has served on the board of the Southwestern Pennsylvania Commission and co-chaired its Committee to Develop, which involves developing the former Alcoa building into a regional renaissance tower.

Former CEO, Pennsylvania Association of Community Bankers

DePasquale has represented York County’s 95th District in the House of Representatives since 2007. Soon after taking office, DePasquale became the first Pennsylvania state legislator to post his expenses on his website. From 2003 to 2006, he served as the deputy secretary for Community Revitalization and Local Government Support of the Pennsylvania Department of Environmental Protection.

From Allegheny County, Maher has been a member of the Pennsylvania House of Representatives since September 1997, representing the 40th District. A certified public accountant (CPA) since 1983, Representative Maher launched one of the largest CPA auditing firms founded in Pennsylvania during the past 50 years.

Pinto, the former chief executive of the Pennsylvania Association of Community Bankers (PACB), is rumored to be testing the waters for an auditor general run. Pinto, who spent 25 years leading PACB before his retirement in September 2011, was previously a senior staff member to Pennsylvania Senate Pro Tempore Henry G. Hager and U.S. Senator John Heinz.

March 2012 > www.mbabizmag.com > 21

DRIVEN BY RESULTS

Attorneys at Knox McLaughlin Gornall and Sennett, P.C. are driven to achieve positive results for our clients. We believe that is one reason for our recognition by U.S. News – Best Lawyers® “Best Law Firms” as a Pittsburgh Tier 1 firm in five practice areas for 2011-2012, including Commercial Litigation, Medical Malpractice Law - Defendants, Public Finance Law, and Workers’ Compensation Law - Employers. We are the only firm ranked in any Pennsylvania or New York metropolitan area as Tier 1 for Closely Held Companies and Family Businesses Law. We have been providing responsive, innovative legal services to a wide array of businesses, governmental entities, nonprofit institutions, insurance companies and financial institutions, as well as individual and families, since 1958. Whatever your legal needs, you can count on our team to provide sound legal advice and deliver results.

Bankruptcy & Creditors’ Rights Business & Tax Elder Law Environmental Law Estate Planning & Administration Family Law Governmental Practice Intellectual Property & Technology Labor & Employment Litigation Public Finance & Bonds Real Estate Workers’ Compensation

Erie, PA Jamestown, NY North East, PA 814-459-2800 www.kmgslaw.com

CentralPA Link

DEPARTMENTS > Contact: Karen Torres

Manufacturer & Business Association Members Benefit from Energy Savings

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With Employers’ Energy Alliance of Pennsylvania, ‘It was a no-brainer’ “We have used a number of MBA services since we became members in 2009, but, as a small nonprofit organization, the savings of nearly $7,000 in electric costs has been huge.� That’s what Kim Ramin, accounting director of the Williamsportbased YWCA of Northcentral Pennsylvania, has to say about the Association’s popular energy supply savings program, the Employers’ Energy Alliance of Pennsylvania, Inc. (EEA-PA). Established as the Association’s energy supplier in 2009, the EEAPA already has saved more than $7 million in energy costs for MBA members since it began supplying electricity in January 2010. By purchasing directly from the electric grid, the EEA-PA eliminates broker commissions — passing the savings directly on to participants. The application process is simple and can be completed within a few days. As Ramin explains, “Signing up for the EEA-PA program was simple and very timely, kind of a no-brainer.�

New Member Spotlight

Another MBA member enjoying energy savings through EEA-PA is Mark Tilburg of Lycoming Physical Therapy in Montoursville. “Being a member of the MBA has been great for our company,� he says. “Not only did the MBA save us money on our electric bill through the Energy Alliance, they also provided the opportunity to experience other savings on our employee benefits such as dental insurance. Being a MBA member has been worth every penny.� The EEA-PA is currently purchasing electricity on behalf of Association members in the PPL, Penelec, MetEd and PECO utility areas. For more information or to request a no-cost energy analysis for your organization, contact the EEA-PA at 814/833-3200, toll free at 800/815-2660, or email eeapa@mbausa.org.

Association’s Food Safety Class Prepares Your Staff for Certification in One Day All customers have expectations when they choose to do business with you. In the food business, their expectations revolve around food safety. Having well-educated employees in the foodservice industry is essential for the protection of your customers and staff, not to mention the reputation of your business. Your employees essentially have the health and well being of each and every customer in their hands every moment.

The Manufacturer & Business Association is pleased to welcome C&E Containers, Inc. as one of its newest members in central Pennsylvania. Established in 1970, C&E Containers, Inc. is recognized as a regional leader in the manufacturing and distribution of corrugated shipping containers, packaging supplies and heat-treated wooden crates. The company is located at 64 River Road in Jersey Shore.

To learn more about C&E Containers, Inc., please visit www.ce-containers.com or call 570/398-4464.

Around six years ago, Manufacturer & Business Association members began to ask if the Association could offer food safety certification to them in a manner that was convenient for the unique schedules of the food industry. Multiple day classes, along with extensive testing, were making it difficult for them to participate in the mandated training due to the demands of the business. To satisfy this need, the Association brought on board a food safety expert who has more than 20 years of industry experience, as well as a degree in the microbiology of foodborne illness. Lisa DeFilippo has developed a comprehensive one-day food safety class that prepares all participants to take the certification exam. Due to the continuing success of her program, several organizations contract exclusively with the Association to prepare their employees for certification. Managing food safety is also a focus of our training. Knowing what to do yourself is important, but managing several other employees to carry out all safety procedures is crucial to consistent food safety practices. To register for the Wednesday, March 28 course in Williamsport, visit the MBA’s professional development page at www.mbausa.org. Cost is $145 for members; $250 for nonmembers. March 2012 > www.mbabizmag.com > 23

HR Q&A WHAT IS THE EMPLOYER’S RESPONSIBILITY WHEN FACED WITH AN EMPLOYEE WITH A COMMUNICABLE DISEASE? An employer’s responsibility is to provide a healthy, safe working environment for all of its employees, even if there are no current standards governing the work area or the industry. The General Duty Clause of the Occupational Safety and Health Act (OSHA) (Section 5(a)(1)) addresses this issue. It entitles an employee to “a place of employment which is free from recognized hazards that cause or are likely to cause death or serious physical harm.� Therefore, an employer faced with an employee with a communicable disease must reduce the possibility of the disease spreading. This can be accomplished through training and

educating the work force on precautionary methods to safeguard them. Enforcing the guidelines established by OSHA is an integral part of maintaining the standards. When exposure occurs, informing employees of the corrective action that will be taken can help to diminish the anxiety that employees may be experiencing. Training should be organizationwide, and all employees should be required to attend.

In order for an injury or illness to be recordable, there must be a work relationship. Injuries that are not work-related include those which occur to the general public, certain parking lot accidents, non-work-induced mental illnesses, the cold or flu, those that arise from personal meals or grooming, those which are self-inflicted or from self-medication, and those occurring on the premises due to outside factors (such as a natural disaster).

OSHA REPORTING: WHAT IS A RECORDABLE INJURY? OSHA requires certain types of injuries or illnesses that occur in the workplace to be recorded on the OSHA 300 log and OSHA 301 Incident Report within seven days of receiving information that a recordable injury or illness has occurred.

HAVE AN HR QUESTION? GET ANSWERS! The Manufacturer & Business Association knows that urgent employment issues can arise at a moment’s notice. As an MBA member, call our certified HR specialists and labor and employment law attorneys at 814/833-3200 or 800/815-2660 for counsel on a range of workplace-related issues.

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DEPARTMENTS > Contact: Stacey Bruce

Design and Manage a Workplace Wellness Program that Works for You As employers are searching for ways to keep health-care costs under control and as manageable as possible, preventive health and wellness benefits are becoming more commonplace. These benefits are designed to help maintain or improve employees’ behavior in order to achieve better health and reduce health risks. By warding off health problems or lowering their incidence among employees, companies can increase their savings. According to SHRM’s 2011 Employee Benefits research report, 75 percent of companies provided wellness resources and information, and 60 percent of organizations offered wellness programs. Employee interest in workplace wellness programs is also quite high. The top three reasons cited by American workers are to improve their overall health, reduce their health-care costs and increase their chances of living a longer and healthier life. By offering

access to such programs, employers can empower their employees to take control of their health and reduce their need for medical treatment and medications. Human resource professionals can and should play a key role in designing and managing workplace wellness programs. HR’s responsibilities may include: • Advocating for the establishment of such programs to achieve strategic objectives; • Assessing wellness program options; • Designing and implementing various types of wellness programs; • Communicating to employees about the company’s wellness program to encourage and increase participation; • Monitoring changes in the law

and in the global employment environment relative to wellness programs; and • Making recommendations for and implementing improvements in wellness programs. Remember: Wellness benefits can take many forms, and they can be as simple or as complex as the company desires. For more information, contact the Association’s HR Services Division at 814/8333200 or 800/8152660. Stacey Bruce is a PHR-certified HR generalist and Human Resource supervisor at the Manufacturer & Business Association.

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Events

Blue Ocean Strategy Center

To view exclusive photo coverage of the Manufacturer & Business Association’s events, visit www.mbausa.org or www.mbabizmag.com.

James Kurre, Ph.D., director of the Economic Research Institute of Erie, shares his data on the 2012 economic outlook with area business leaders. Kurre’s presentation focused on statistics and trends regarding the Erie area and northwest Pennsylvania.

Business leaders gather at the Town Hall meeting in Meadville, hosted by the Association’s Government Affairs Department. The Association also hosted a similar event in Erie, which gave business owners the chance to hear firsthand from legislators on upcoming legislative issues.

Erie Mayor Joe Sinnott addresses the state of the city, during the Association’s January Eggs ’n’ Issues briefing. In his address, the mayor focused on efforts to curb gun violence as well as the city’s financial picture, including the challenges of rising costs and declining revenues.

Association Board Member Dale Deist of Deist Industries talks with legislators, during the MBA’s Town Hall meeting in Meadville.

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People Buzz ERIE BUSINESS CENTER APPOINTS PERINO TO EXECUTIVE DIRECTOR The Erie Business Center (EBC) Board of Directors recently announced Donna Perino has been named executive director of the school’s Erie and New Castle campuses. During her tenure at EBC, Perino has served as an instructor, project manager and most recently as director of the Erie Campus. Prior to joining EBC, she worked at GE Transportation’s Erie facility in manufacturing, engineering, marketing, human resources and marketing communications. She earned a master’s degree in education from Penn State University and bachelor’s degree in human resources management from Mercyhurst College. Founded in 1884, Erie Business Center is the area’s longest-established career training institution.

CPA FIRM MCGILL, POWER, BELL ANNOUNCES PROMOTIONS Several staff members from the regional certified public accounting (CPA) firm of McGill, Power, Bell & Associates, LLP have been promoted. CPA Royce L. Reichel is now a manager. Reichel joined the firm in 2000 and is based at the Meadville office. She is a chair of the firm’s Retirement Plan Services Group and is a member of the Information Technology and Training Committees. She focuses her practice in retirement plan auditing, consulting, tax planning, and accounting. CPA Pamela L. Stepnowski has been promoted to supervisor. Stepnowski has been with the firm for five years, bringing more than 10 years of

diverse public accounting experience to her position. As a member of the firm’s Retirement Plan Services Group, she focuses on pension, 401(k) and 403(b) plan audits. David Niemira is now a senior accountant. Niemira is a member of the firm’s Nonprofit/ Government Services Group and the Manufacturing Services Group. He has four years of experience in public accounting and specializes in auditing health-care entities, affordable housing projects and nonprofit organizations. Matthew Dangel also has been promoted to senior accountant. He is a member of the firm’s Manufacturing Services, Research & Experimentation (R&E) Tax Credit and the Retirement

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Our SmileWaySM Wellness Program has activities, videos and more to help you achieve a healthy smile. œ Read oral health articles œ Take the SmileWay Challenge œ Subscribe to the e-newsletter eqkead]oYq&[ge

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DEPARTMENTS > Contact: Karen Torres

Plan Services Groups. He specializes in retirement plan audits, as well as other types of audits, and prepares individual, partnership and corporate tax returns. MEADVILLE MEDICAL CENTER PHYSICIAN EARNS WOUND SPECIALIST CERTIFICATION Carol F. Encarnacion, MPH, MD, recently passed the American Board of Wound Management Examination for Wound Care Professionals and is now a certified wound specialist. She also is board certified in internal medicine and infectious diseases. Dr. Encarnacion joined the Meadville Medical Center active medical/dental staff in 2003. She works at Meadville Infectious Disease and Travel Health Medicine, and Meadville Medical Center’s Wound Care/Hyperbaric Department.

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ERIE COMMUNITY FOUNDATION EXECUTIVES RECOGNIZED Michael Batchelor, president of The Erie Community Foundation (ECF), recently became the only U.S. representative asked to serve on Community Foundations of Canada conference planning committee. Batchelor’s goal for serving on the Community Foundations of Canada is to improve the existing practices for The Erie Community Foundation’s Vital Signs project. Vital Signs tracks indicators that reflect and measure Erie County’s well-being in eight topic areas: brain gain, community and civic engagement, cultural vitality, environment, health, the economy, pre-K through 12 education, and regionalism. In addition, Barbara Sambroak, vice president of Finance at ECF, presented on the $1 million ReTool Erie grant at

the National Conference for Community Foundations in San Francisco. Sambroak also was elected to vice chair of Professional Development, for the Fiscal and Administrative Officers Group, a national association of community foundation financial and administrative staff members. Also, Kevin Moore, ECF’s vice president of Stewardship and Regional Affiliate Foundations, was appointed to the national steering committee for Adnet, the national organization of Advancement Officers and Donor Relations professionals from community foundations throughout the United States. Moore will co-chair the 2012 national conference in New Orleans later this year.

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