2011 May-Jun South Carolina Business by South Carolina Chamber of Commerce

M ay /J une 2011 V ol . 32 | N o .3

Managing the Health Care Cost Crisis The History of Health Care: Looking Back and Moving Forward

Best Practices for Wellness Programs Berchtold Corporation

Cutting-Edge Design

LV E

20 W er 10 ING cu SC A r y PR W Aw SA A RD ar ds

Building a Healthier Employee

SouthCarolinaBlues.com

From health plans to helping hands, the gold standard is actually Blue.

For families and businesses in South Carolina, the gold standard for health coverage is Blue — BlueCross BlueShield of South Carolina. And in cities and neighborhoods throughout the state, the gold standard for community service is also Blue — BlueCross BlueShield of South Carolina employees. You’ll find BlueCross employees building houses and helping families realize the American dream through Habitat for Humanity. You’ll find them on a cafeteria assembly line preparing meals for delivery to hungry senior citizens. And you’ll hear about them donating their own money — and breaking fund-raising records in the process — to causes close to home or close to their hearts. Employees of BlueCross do a great job adding value to your health care plan, but they’re also a valuable part of your community, too. We salute their giving spirit as they continually raise the bar in making a difference not only where they work, but where they live, too.

BlueCross BlueShield of South Carolina is an independent licensee of the Blue Cross and Blue Shield Association.

In the post-reform era, strategic alignment between healthcare providers has never been more important, nor more complex. With its team of experienced attorneys focused on the healthcare industry and its constantly changing regulatory environment, Haynsworth Sinkler Boyd, P.A. is...

TRANSFORMING THE HEALTHCARE LANDSCAPE

STEVE WILLIAMS

LISA THOMAS

MATT UTECHT

Greenville, SC Best Lawyers in America® - Healthcare Law

Charleston, SC Best Lawyers in America® - Healthcare Law

Greenville, SC Best Lawyers in America® - Healthcare Law South Carolina Super Lawyers® - Healthcare

• Accountable Care Organizations • Hospital and Physician Practice Mergers and Acquisitions • Joint Ventures

• • • •

Health Information Technology Medical Staff Issues Fraud and Abuse Reimbursement Issues

ATTORNEYS AND COUNSELORS AT LAW

WWW.HSBLAWFIRM.COM

CHARLESTON

COLUMBIA

FLORENCE

GREENVILLE

MYRTLE BEACH

WASHINGTON, DC

Matt Utecht, Healthcare Group Leader, 75 Beattie Place, 11th Floor, Greenville, SC 29601 864. 240.3321 mutecht@hsblawﬁrm.com

contents >> CONTENTS

13 26 F e a t u r e s 10 THE HISTORY OF HEALTH CARE by Thornton Kirby

ECONOMIC DRIVERS

24 TALENT MANAGEMENT: THE KEY TO ECONOMIC RECOVERY by John A. Slavich

13 BEST PRACTICES FOR CREATING CORPORATE WELLNESS PROGRAMS by Chris Davis

HEALTH CARE CHECKUP 25 IT’S TOO LATE TO AVOID GOVERNMENT-RUN HEALTH CARE by Robby Kerr

16 CUTTING-EDGE DESIGN by Matthew Gregory 22 WORKPLACE WELLNESS: BUILDING A HEALTHIER EMPLOYEE by Matthew Gregory

IN EVERY ISSUE

Member Spotlight SELF CARES: PATIENTS, EMPLOYEES AND COMMUNITY by Julie Scott

From the President..............................................3 by Otis Rawl

Member News.....................................................30 Compiled by Matthew Gregory

Upcoming Events...............................................28 Manufacturer of the Year Best Places to Work

Welcome, New Members................................31 Events Calendar.................................................32 Advertiser Index................................................32

The opinions and views expressed by the contributors to this publication do not necessarily reflect the opinions and views of the South Carolina Chamber of Commerce, its staff or members.

| S o u t h C a r o l i n a B u s i n e ss | M a y / J u n e 2 0 1 1

Education / Workforce

by Julie Scott

5 Business Costs by Anton J. Gunn, M.S.W.

DEPARTMENTS & NEWS

After the Event Washington Night............................................29

7 Legal Environment by Dan Ellzey and

Reyburn Lominack

Dynamism / Entrepreneurialism

by Powers Strickland

Quality of Life

by William Floyd, Esq.

Infrastructure

by Robin F. Foust

Coming Next Issue The July/August issue of South Carolina Business will focus on South Carolina businesses that are using innovative technology to grow the state’s knowledge economy and highlight energy and environment technologies that can help companies reduce emissions. The Legislative Year-in-Review will provide an analysis of the General Assembly’s legislative accomplishments and the important business issues not addressed during the session.

>> FROM THE PRESIDENT

May/June 2011 Volume 32, Number 3

South Carolina Chamber of Commerce 1201 Main Street, Suite 1700 Columbia, South Carolina 29201 800.799.4601 www . scchamber . net

M P resident & C hief E xecutive O fficer OTIS RAWL V ice P resident of P ublic P olicy & C ommunications DARRELL SCOTT P ublic R elations M anager JULIE SCOTT M ulti M edia C oordinator MATTHEW GREGORY G raphics & W eb A dministrator BOBBY BAKER

M SOUTH CAROLINA BUSINESS MAGAZINE E ditor MATTHEW GREGORY A rt D irection & D esign TIM MCKEEVER / TMCA INC. P roduction & P rint C oordination TMCA INC. D igital I maging & P rinting R. L. BRYAN COMPANY A dvertising S ales CONVERGING MEDIA LLC DEIDRE MACKLEN 803.318.3923

One year later, health care cost questions remain Otis Rawl

ising health care costs have long been a concern for South Carolina employers and now represent the second highest expenditure for businesses after labor costs. Here at the South Carolina Chamber of Commerce, some of our distinguished business leaders have formed a health care working group to examine short- and long-term goals to reduce health care costs, produce better outcomes and create a healthier workforce. The health care working group’s strategies to achieve its goals include improving South Carolina’s civil litigation climate in order to reduce overall costs and focusing on employee wellness. Businesses across the state are proactively implementing company wellness plans because healthier employees will lead to reduced costs on the insurance side of the equation as well as in production costs. Just more than one year ago, President Barack Obama signed into law the Patient Protection and Affordable Care Act, known as the federal health care reform bill. Experts agree this legislation represents the largest overhaul of the health care system in more than 40 years, and surveys show more than half Rawl is president and chief executive of Americans say they are confused by what the legislation really means for officer of the South Carolina Chamber them. Additionally, numerous lawsuits related to the legislation have been filed of Commerce. in federal court. Federal health care reform implementation will continue through 2018. Right now, small businesses with fewer than 50 employees can receive tax credits to help provide coverage for employees. Dependents are able to stay on their parents’ health insurance plans until the age of 26. And, new regulations concerning pre-existing conditions have been instituted. In three years, individuals will be required to purchase health insurance, and employers with 100 or more workers will be required to provide insurance coverage or pay a fine per employee. How long will the existing fines and fees sufficiently cover burdens of mandates in the law, or will fees continue to be raised? In early April, the U.S. Senate voted 87-12 to repeal the onerous 1099 reporting requirement, which would have required any business that purchases more than $600 worth of goods or services from another business to submit a 1099 tax form to the Internal Revenue Service (IRS) beginning in 2012, a measure to help pay for the deficit created by the health care reform law. The repeal was supported by South Carolina’s United States Senators Lindsey Graham and Jim DeMint. The business community, including the National Association of Manufacturers (NAM) and the U.S. Chamber of Commerce, was instrumental in passage of the repeal. On the state level, the rise in Medicaid recipients has led the South Carolina Department of Health and Human Services (DHHS) to run a more than $225 million deficit this fiscal year. The state’s Budget and Control Board recently forgave $200 million of the deficit, and Director Tony Keck is working to find other savings within the system. In April, Governor Nikki Haley signed legislation allowing DHHS to cut provider rates to hospitals and doctors to help manage current deficits in the Medicaid program. Will these cuts require medical providers to increase their costs, or will these costs be transferred in the form of increased premiums for businesses? In 2010, after years of debate, the General Assembly passed a cigarette tax increase by 50 cents per pack. Before that, South Carolina had the lowest cigarette tax in the nation. The additional tax has already collected more than $100 million that can be used to help fund the Medicaid budget in the next fiscal year. In this issue of South Carolina Business, we learn more about three exceptional companies’ pledges to increase wellness among employees. Michelin, Sonoco and Rhythmlink are committed to keeping the costs of health insurance down, one employee at a time. I am also pleased to introduce you to Berchtold Corporation, an innovative company that designs operating rooms for health care professionals around the globe. South Carolina’s business community is committed to staying at the table when it comes to health care costs and the health of our employees. We will remain engaged in the debate and offer solutions to what may prove to be a health care cost crisis in this nation. Though each company is unique, we all have similar struggles related to providing good health insurance for our employees. Join us at the table as we examine the solutions.

STATE CHAMBER with Distinction

Copyright © 2011 by the South Carolina Chamber of Commerce and Converging Media LLC. All foreign and U.S. rights reserved. Contents of this publication, including images, may not be reproduced without written consent from the publisher. Published for the South Carolina Chamber of Commerce by Converging Media LLC. 803.256.3010

s c c h a m b e r. n e t | M a y / J u n e 2 0 1 1 | S o u t h C a r o l i n a B u s i n e ss |

Last year, Sonoco invested $2.5 million to improve the communities we do business in. Accountability. It’s what drives us to make better choices today so that we can all enjoy better returns tomorrow. It’s why we support education, community partnerships, diversity, and workplace safety. It’s why we were selected to join the prestigious Dow Jones Sustainability Index. Accountable to our planet, our stakeholders and ourselves… it’s who we are.

Acting today for a better tomorrow.

1 North Second Street, Hartsville, SC 29550 • 843/383-7000 • sonoco.com

Changing perceptions with SC Minds@Work Julie Scott

f perception is reality, many believe South Carolina ranks near the bottom in workforce preparedness and education measurements. However, this is not true. While the Palmetto State must continuously work to move education forward, we also must communicate our progress. Negative perceptions of education and workforce development within South Carolina and outside of the state can damage economic development. Business leaders are eager to tell the true story of workforce development in South Carolina, and the South Carolina Chamber of Commerce is taking the lead through SC Minds@Work (www.scmindsatwork. com). We will correct and improve the awareness of South Carolina’s actual education position and establish a consistent message and brand for the state’s workforce. Last year, the South Carolina Chamber conducted a nationwide survey gauging perceptions. Here’s what we found: • Much of South Carolina’s brand image is influenced by the fact that South Carolina is a Southern state. Forty-four percent of U.S. residents identify the

South as having the worst image. • South Carolina itself is a state that does not have a distinct brand image and tends to go unnoticed. Florida, Virginia and North Carolina clearly have the most positive brand images. • Alabama and Mississippi are consistently mentioned as being the weakest. • The key challenges for South Carolina lie in creating awareness of a state that is largely unknown to the rest of the nation, and, ultimately, differentiating the state from other Southern states. The survey also presented respondents with facts about South Carolina, particularly related to education and workforce preparedness. When presented with the following positive facts, perceptions drastically improved: • South Carolina has implemented a program called Personal Pathways to Success, which provides educational and career planning resources that bring together all South Carolinians – students, parents, educators, adult job seekers and employers. Personal Pathways is becoming a national model. • The national report card, Quality Counts 2010,

ranked the state No. 11 in the nation for academic policy and performance. • Companies like BMW and Michelin have major operations in South Carolina, and Boeing is building a production facility for its 787 Dreamliner in the state. • The total number of active registered apprentices in the state jumped by 111 percent, from close to 800 in 2007 to more than 1,600 in 2009. The business community is committed to cultivating a prepared and skilled workforce for the future and telling the real story of education and workforce development. No one is denying that we have issues that must be addressed. But, the truth is the ship is turning, and we need to help it maintain (and even increase) its speed. We need to build on our successes. Join the SC Minds@ Work movement today.

economic dri v ers

> > E D U C AT I O N & W O R K F O R C E

Julie Scott is the public relations manager at the South Carolina Chamber of Commerce.

>> BUSINESS COSTS

Employers get help from Early Retirement Reinsurance Program Anton J. Gun n , M . S . W.

he Early Retiree Reinsurance Program (ERRP) was created by the Patient Protection and Affordable Care Act (PPACA), which was passed by Congress and signed by President Barack Obama on March 23, 2010. The ERRP has helped address challenges employers and older employees are facing by providing $5 billion in financial assistance to employers to help maintain coverage for early retirees age 55 and older who are not yet eligible for Medicare. As of December 31, 2010, more than 5,000 employers had been accepted into ERRP, and more than $535 million in health benefit costs had been reimbursed through the program. Those payments have helped benefit more than 4.5 million Americans. The ERRP reimburses participating plan sponsors for a portion of health coverage costs for early retirees and their

spouses, surviving spouses and dependents. In South Carolina, 34 employers have been accepted and enrolled in the ERRP. This funding provides financial assistance for health plan sponsors – including state and local governments, for-profit companies, schools and other educational institutions, religious organizations and other non-profits – to help early retirees and their families maintain access to quality, affordable health coverage. For a complete listing of approved sponsors, visit www.healthcare. gov/law/provisions/ retirement. Savings from the program can be used to reduce employer health care costs and/or provide premium relief to workers and families. Applicants who are approved into the program receive

reinsurance for the claims of high-cost retirees and their families (80 percent of the costs from $15,000 to $90,000). The program ends January 1, 2014 when state health insurance exchanges must be up and running. For additional information about the ERRP program and to complete a sponsor application, visit the official ERRP website at www.errp.gov. Anton J. Gunn, M.S.W. is the Region IV director for the U.S. Department of Health and Human Services and a former member of the South Carolina House of Representatives.

s c c h a m b e r. n e t | M a y / J u n e 2 0 1 1 | S o u t h C a r o l i n a B u s i n e ss |

Hope Hope

Our excellence brings hope

for the future

• One of the first healthcare systems in the nation chosen to participate in the National Cancer Institute Community Cancer Centers program • Recognized as being one of the top cancer programs in the United States by the American College of Surgeons Commission on Cancer • Recipient of the Commission on Cancer Outstanding Achievement Award • The exclusive local host affiliate of the MD Anderson Physicians Network • One of the original funded participants in the Community Clinical Oncology Program • First center in South Carolina to offer TomoTherapy® radiation • First High-Dose Rate radiation therapy provider in the Upstate Gibbs Cancer Center is a patient-centered, multidisciplinary cancer treatment center. As a part of the not-for-profit Spartanburg Regional Healthcare System, it offers free education and community screenings, massage therapy and the services of a social worker, chaplain and nutritionists. For more information on services, cancer care or community events, please call the Cancer Learning Center at 864-560-6747 or visit gibbscancercenter.com.

RECC41E

Labor law reform: Dead or alive? Dan Ellzey an d R e y b u r n L o m i n a c k

or years, unions have attempted to amend the National Labor Relations Act (NLRA) in an effort to make it easier to unionize employees. Historically, these attempts were made through Congress. Today, the attempts are being made through the National Labor Relations Board (NLRB). It’s dead Following the 2008 presidential election, unions pushed Congress to pass the inaccurately named Employee Free Choice Act (EFCA). The EFCA would have replaced secret ballot elections conducted by the U.S. government with “card check” procedures to determine union recognition. The EFCA also would have given final say on negotiations to a third party arbitrator. With the November election, the EFCA is dead. It’s alive While the EFCA is dead, unions and their supporters have not given up on changing the rules that govern union organizing. Instead of amending the NLRA, unions are attempting to make these changes administratively through the NLRB. Notice Posting

In December, the NLRB proposed a rule that would require employers to post workplace notices informing employees of their rights under the Act. The posting requirement would be similar to that presently imposed on government contractors. The required notice would inform employees of their right to unionize, identify examples of unlawful conduct and provide instructions for filing unfair labor practice charges. Injunctions The NLRB announced in October 2010 an initiative to increase the use of Section 10(j) injunctions. According to the General Counsel’s memo, these injunctions will be used for so-called “nip-in-the-bud” cases – the most serious violations by employers, including discharging union supporters during an organizing campaign, threatening to close a facility and prohibiting employees from talking about unions. Remedies The NLRB memo directs additional remedies in “nipin-the-bud” cases. The additional remedies include requiring a manager or NLRB agent to read remedial notices to employees, providing union access to company bulletin boards and company computer

systems for postings, allowing union access to nonwork areas, allowing union access to make pro-union speeches to company employees and requiring employers to provide a list of names and addresses of employees prior to the filing of a petition for election. The next step for labor law reform For years, the NLRB’s goal was to conduct an election within 42 days of a petition being filed. It is well-known that the NLRB is presently looking at initiatives that will allow it to shorten the 42-day period. Many experts predict the NLRB will attempt to shorten the period to 21 or 28 days. If this reduced election period occurs, it will put companies at a great disadvantage in union elections. It would be very difficult for an employer to fully educate its employees on the consequences of unionization within this shorter period.

economic dri v ers

>> LEGAL ENVIRONMENT

Dan Ellzey and Reyburn Lominack are attorneys in the Columbia office of Fisher & Phillips, which is a national labor and employment law firm exclusively representing management.

>> DYNAMISM/ENTREPRENEURIALISM

IT-oLogy grows IT careers through business partnerships Powers Strick l a n d

hen executives at BlueCross BlueShield of South Carolina realized they needed a larger pool of qualified candidates to fill positions in their growing Information Technology (IT) department, they reached out to the University of South Carolina (USC). They discovered the issue was systemic and far-reaching, not just affecting BlueCross BlueShield or the state of South Carolina. USC and BlueCross BlueShield partnered with IBM in December 2008 to form the Consortium for Enterprise Systems Management, to which Lonnie Emard was appointed executive director. Emard joined BlueCross BlueShield in 2002 as director of staff resource management for the information systems division. Under his direction, the BlueCross BlueShield information systems organization grew from 1,200 employees and contractors to more than 2,300 in seven years. He was also responsible for the Managing People Program, which includes best practices in talent acquisition, development, management and retention. In January 2011, the Consortium introduced the IT-oLogy program to advance the study of IT as a profession. Since its inception, numerous other

corporate and educational supporters have joined the collaboration of partners, and the mission has expanded to include all aspects of computer science, engineering and information technology. IT-oLogy is dedicated to growing the IT talent pipeline, fostering economic development and promoting Lonnie Emard the IT profession. IT-oLogy is advancing IT talent through three initiatives: Promote IT, Teach IT and Grow IT. Through partnerships with K-12 students, educators, parents, higher education students and professors, IT-oLogy is working to capture the best and brightest talent for the future. Earlier this year, the Consortium for Enterprise Systems Management opened the doors of its high-tech facility at The Tower at 1301 Gervais in Columbia, covering the outside of the building with IT-oLogy branding and eye-catching emoticons. The IT-oLogy mission can already tout numerous success stories, including expanding build-your-own computer camps for high school students to Charleston

and Greenville and sponsoring the 4th annual Palmetto Open Source Software Conference (POSSCON), which had a record 500 attendees over three days. Later this year, IT-oLogy will launch a summer IT camp for middle school students in conjunction with Challenging Horizons Program (CHP) and USC. What’s next for IT-oLogy? “IT-oLogy is not just a building or a location,” said Emard. “It is a belief system, a program of various components that every partner can find a way to contribute and participate. During our first two years, we have been able to launch several successful programs that address interest in IT, applied learning and cost-effective professional development. This new facility provides the ability to scale these programs across the state, the region and the country. IT-oLogy has proven that we can bring academia, business and economic development together for a common purpose.” Powers Strickland is the communications manager at IT-oLogy. BlueCross BlueShield of South Carolina is an independent licensee of the BlueCross and BlueShield Association.

s c c h a m b e r. n e t | M a y / J u n e 2 0 1 1 | S o u t h C a r o l i n a B u s i n e ss |

Micro unions could create big problems William Floyd, Esq.

ecent pro-union actions by the National Labor Relations Board (NLRB) are making it easier to unionize employees. One of the latest potential changes involves micro unions, a possible outcome of Specialty Healthcare and Rehabilitation Center of Mobile and United Steelworkers, District 9, a case pending before the NLRB. For many decades, the NLRB has applied the “community of interest” standard when determining whether a group of employees, identified by a union, is an “appropriate bargaining unit” for purposes of a union election or collective bargaining. Unfortunately, through the Specialty Healthcare case, the NLRB may soon replace the community of interest test with one that makes it easier to fragment the workforce and create multiple micro unions within the workforce. Instead of allowing employees who share a community of interest to vote against or for unionization, the NLRB has signaled that it may endorse a much narrower test finding “that any group of employees who perform the same job in the same facility is an appropriate bargaining unit, without regard for whether the interests of the group sought are sufficiently distinct from those of other employees to warrant the establishment of a separate unit.”

Dumping the community of interest standard would be a fundamental change in labor law and would encourage micro unions. For example, rather than seeking authorization cards from a majority of production and maintenance workers at a plant, a union could focus on a small, distinct job classification comprised of two or three people and present them as a bargaining unit, even though the vast majority of their fellow workers opposed unionization. The result for the employer could be dramatic: a fragmented workforce with multiple, small groups of unionized employees, represented by different unions. The employer would have to bargain with each union, no matter how small. These micro unions could sacrifice teamwork, productivity and efficiency for the sake of union preservation. Micro unions also could make it easier for a union to gradually gain representation of the entire workforce

| S o u t h C a r o l i n a B u s i n e ss | M a y / J u n e 2 0 1 1

by targeting small groups of employees at a time. Micro union campaigns could focus only on winning the majority vote of a small, defined group of employees. The union’s ultimate goal would be the unionization of the entire workforce by winning representation one micro union at a time. The NLRB’s shift on micro unions has not been without criticism. Many equate micro unions with minority representation and question that the NLRB may be using its decision-making role to circumvent Congress. Members of Congress have begun calling the NLRB’s proposal into question through hearings and other intervention. Because of the possible negative impact of the micro union tactic, employers should monitor this NLRB development and consider legislative and workplace countermeasures. William Floyd is a member of Nexsen Pruet LLC and a certified labor and employment law specialist. He can be reached at wfloyd@nexsenpruet.com or 800-825-6757.

adigit

economic dri v ers

>> QUALITY OF LIFE

Why S.C. needs a statewide health information exchange Robin F. Fous t

DENI S TANGNE R

universal data system that complies istorically, the health care medical records into a master industry has had difficulty patient index that is easily accessible tracking patient progress by physicians. MCI builds a bridge in multiple environments, especially between employers and providers when patients go to multiple while protecting personal health providers and facilities for complex information. A universal connector health care issues. Much of the of all stakeholders involved in local confusion doctors and patients models of care, MCI syncs with all encounter when keeping track of relevant electronic data sources and medical tests, prescriptions and providers in the health care field, past procedures, especially when which could include a state HIE. in between provider office visits, “It is critical to have an active could be drastically alleviated with meeting of the minds of all the implementation of a health stakeholders to find the money and information exchange (HIE). HIEs tools to not just ‘fix’ sick patients allow health care information to but identify key risk indicators be electronically tracked across and issues much earlier, saving organizations within a region, Doctors could provide better treatment if they had easier access to each patient’s medical dollars, optimally lowering risk and community or hospital system. history through an HIE. improving quality of life,” said Beth The key to HIE success is health care data logistics and cooperation between all providers and consumers time and money associated Crowder, executive director of United Physicians Inc., stakeholders involved in patient care. If an HIE monitors with unnecessary medical visits, paperwork or treatment an independent physician association of about 700 patient outcomes and providers act on information delays,” said W. David Patterson, Ph.D., chief of health physicians in Charleston, S.C. Other South Carolina HIE initiatives include the provided, HIEs can help businesses, health care and demographics at the South Carolina Budget and Palmetto eHealth Alliance, the South Carolina providers and patients by creating a platform to increase Control Board Office of Research and Statistics. In order for a statewide HIE to succeed, the value Partnership for Health, The Consortium for efficiency of care and reduce errors. Some might argue that patient advocates or disease management proposition has to be clear to all stakeholders who have Southeastern Hypertension Control and AccessHealth programs are the solution, but they create yet another to participate, which is not always easy to do. It will take Tri-County Network. “We will all reap the benefits of a health information silo unless the referrals come through the physician a time to build an exchange, and interoperability will be patient has designated as the main provider and care critical for success. Remember when email started, and exchange. Physicians and care providers will no longer many were reluctant to use it? Now email is a standard need to spend as much time determining a patient’s coordinator. An HIE has an opportunity to reduce statewide part of our workflow. Likewise, an HIE infrastructure medical history, and they will instantly understand the finances associated with health care and position needs to be in place so that workflows are easily medications that any patient is taking. This exchange South Carolina as a healthier state. For more than adapted statewide, and statewide HIEs partner with of information will lead to improved health care and 20 years, America’s Health Rankings® has provided a others to ensure all stakeholders are connected. Also, health outcomes, reduced medical costs and a healthier comprehensive perspective on national health issues, reimbursement needs to be aligned with providers, community,” said Rosalía Velázquez, executive director state by state. South Carolina ranks 41st this year, and this means a paradigm shift from a health care of AccessHealth Tri-County Network, an initiative to with high rates of obesity, diabetes, heart disease and system that has paid providers to find the problem and establish an integrated community network of care for other conditions. There is an opportunity to improve fix it to one based on payment allowing true provider low-income, uninsured residents in the Lowcountry. the state’s rankings, by allowing doctors to have easier coordination, leading to improved outcomes with “In this technological age where we can exchange an assertive approach to meaningful prevention and information instantly, it only makes sense that the access to patients’ medical history through an HIE. people entrusted with caring for our health can have There are several initiatives in the state, including the intervention measures. Community Health Partners, an Upstate consortium the relevant information at their fingertips.” South Carolina Health Information Exchange (SCHIEx). With connectivity comes accountability. It is time for SCHIEx provides a state-level information highway of hospitals, is the universal connector of all data sources that can connect local health care providers and other possible for several employers in the state along with South Carolina to make a statewide health information stakeholders. The network enables providers to view hospitals belonging to the consortium and their exchange a reality. clinical data that includes medications, diagnoses and providers. “We have been delivering a clinical information Robin F. Foust, PAHM is the CEO of Zoe Consulting procedures. Considering the HIE field is littered with examples model to employers for over two years, and the results Inc. – powered by myCatalyst and an award-winning of failed or defunct efforts, SCHIEx is a model others have been excellent. For the first time, the data is flowing health care professional with more than 30 years of are watching. SCHIEx attributes its success to a multi- to the providers as well as the employers. They now experience. stakeholder approach that has mixed aspects of have information to make more informed decisions, public utility with a diverse set of public and private which is leading to reduced claims cost and improving the health of the employees and other insured lives stakeholders. “SCHIEx gives health providers access to clinical being served,” said Paul Hovey, executive director of information that may be used to make more informed Community Health Partners. South Carolina-based myCatalyst Inc. (MCI) is a decisions at the point of care. This coordination saves s c c h a m b e r. n e t | M a y / J u n e 2 0 1 1 | S o u t h C a r o l i n a B u s i n e ss |

economic dri v ers

>> INFRASTRUCTURE

> > F E AT U R E

The history

of health care Looking back and moving forward

rior to World War II, health care didn’t cost much because there wasn’t much in the way of technology or medications. Antibiotics had only been around a decade or so. And while physicians were esteemed in most communities, they were not well compensated, as many patients paid their physicians with whatever goods or services they had to barter. During the war, America imposed wage controls to prevent runaway inflation, and employers began to compete for a scarce workforce with benefits instead of wages. Health insurance coverage became a very popular benefit, and, ultimately, American employers became the primary funders of health care services. At the end of World War II, the American economy was booming, and companies continued to offer health insurance benefits to their workers. In Europe, on the other hand, nations were rebuilding their infrastructure and trying to restart their economies. In the absence of functioning economies, European governments had to step in and provide health care to citizens. In the years after the war, America maintained its employer-based insurance system, and European nations maintained their government-run systems. During the second half of the 20th century, medical knowledge and technology began to grow at an astonishing rate that hasn’t slowed since. Health care professionals could now effectively diagnose and treat thousands of medical conditions. Patients who would have died just a few years before left the hospital and returned to full lives. Costs also began to climb, and employers began to see the impact on the premiums they paid. Making health care a right for all wo decades after the war, Congress realized there were some populations that would likely never have employer-based health insurance because they

T 10

| S o u t h C a r o l i n a B u s i n e ss | M a y / J u n e 2 0 1 1

did not have jobs. The answer was to enact Medicare to cover the elderly and Medicaid to cover the very poor and disabled. Since our nation still drafted men into the military, most American men had access to the VA health system. Therefore, the Medicaid program focused on covering women and children. The combined effect of employer-sponsored insurance, Medicare and Medicaid was health insurance coverage for the large majority of Americans. In 1986, Congress and the public became aware that many Americans still had no insurance, making them vulnerable when they faced medical emergencies. This lesson was made clear by several high-profile deaths that occurred outside emergency rooms when patients were turned away because they could not pay for services. Congress responded by enacting the Emergency Medical Treatment and Active Labor Act (EMTALA), which requires hospitals to treat every person who comes to the emergency room regardless of the patient’s ability to pay and what it costs the hospital to provide the services. Signed into law by President Ronald Reagan, EMTALA is one of the greatest unfunded mandates ever imposed by Congress on private business. Obviously, EMTALA is a great financial burden on hospitals. However, it is also a great financial burden on employers who pay much of the unreimbursed costs, shifted through higher hospital bills and insurance premiums. In 2010, hospitals supported health reform legislation because it proposed to help pay for the unfunded mandate. The new law is designed to provide coverage to 32 million uninsured Americans. But passage of health care reform has made the future even more uncertain than before. America’s political mood has turned anti-government and anti-Medicaid, and state politics reflect the national mood. State lawsuits challenging the constitutionality of the federal reform law are working their way to the U.S. Supreme Court. State Medicaid programs, an integral part of the plan to cover 32 million Americans, are being cut. In addition, many governors are demanding that the federal government

GETTY I M AGE S

By Thornton Kirby

allow each state to design its own health care solutions. Despite the political rancor over health care reform, not even the most conservative politicians have suggested we should stop providing care for all Americans in our nation’s emergency rooms. In fact, some people point to guaranteed care through hospital emergency rooms as evidence that everyone has access to the care they need. The only problem they see is that health care costs too much, missing the point that unreimbursed care provided in ERs is a large part of the cost problem. Leading the nation in reform n response to the chaos, South Carolina hospitals have decided to invest energy in the redesign of our delivery system rather than the politics of reform. In late 2007, South Carolina hospitals focused their collective energy on reducing the time it takes to get heart attack patients the proper treatment. This is important because time saved equals heart muscle saved and leads to better outcomes for the patient. By 2010, South Carolina hospitals had reduced the average door-to-balloon time, or the interval from a patient’s arrival at the hospital to the inflation of a balloon in a coronary artery to relieve a blockage, from 93 minutes to 62 minutes. Our state now ranks third in the nation in percent of patients (92 percent) getting treatment within the recommended 90 minutes. South Carolina’s hospitals next turned their attention to infections, which are the most common complication of hospital care throughout the world. In the United States each year, an estimated 99,000 people die due to health care-acquired infections (HAIs), and $28 to $33 billion is spent treating HAIs. Partnering with renowned expert Dr. Peter Pronovost and his Johns Hopkins Quality Improvement Team, South Carolina hospitals are participating in a national initiative to reduce infections, and the results have been phenomenal. South Carolina hospitals have reduced life-threatening blood stream infections by 30 percent and central line infections by 34 percent over the past two years. Nationally, the reduction rates for the same type of infections over that time period were 21 percent and 24 percent, respectively. For these and other efforts, South Carolina is being recognized as a leader in health care improvement. Our state was recently ranked by the federal government as one of five states making the greatest improvements in the quality and safety of health care. Recognizing our successes, Dr. Atul Gawande, a worldwide leader in patient

EL F S T R O M

safety, selected South Carolina to partner with him on a surgical safety initiative. Already all acute care hospitals in South Carolina have committed to implementing the World Health Organization’s Surgical Safety Checklist as a routine component of surgical care. The goal is to ensure the checklist is used in every operating room in South Carolina for every surgical patient by the end of 2013.Successful implementation of the checklist in South Carolina will save 500 lives and $28 million annually, according to conservative estimates. Next Step - The S.C. Partnership for Health n March 16, the South Carolina Hospital Association joined with BlueCross BlueShield of South Carolina and Health Sciences South Carolina to take collaboration even further. The three organizations announced formation of The South Carolina Partnership for Health and adopted the Institute of Healthcare Improvement’s (IHI) Triple Aim approach as the cornerstone of our statewide initiative. The Triple Aim seeks to accomplish three goals at once: improving the patient experience of care, improving population health and reducing the per capita cost of care. “For academic leaders, insurers and health care providers to come together statewide in South Carolina to tackle the Triple Aim, using a community collaborative approach, is a first in the nation,” said IHI President Maureen Bisognano. Now all three organizations will work together to focus on mutual priorities. We have joined forces to use collaborative research to improve population health and patient care, and we will complete the circle by engaging more directly with insurers and the business community. The first project to be undertaken by the Partnership will be to reduce preventable hospital readmissions. Project and study results will be shared with patients, health organizations, businesses and legislators throughout the state. We hope all stakeholders will join us on this journey to improve health and health care in our state while making the health system a positive economic force. We are determined to provide a role model for what can be accomplished for the good of all through collaboration, collegial decision-making and transparent communication where everyone has a voice.

Thornton Kirby is president and CEO of the South Carolina Hospital Association. s c c h a m b e r. n e t | M a y / J u n e 2 0 1 1 | S o u t h C a r o l i n a B u s i n e ss |

Greenville Hospital System Ranks Among Nationâ&#x20AC;&#x2122;s Best Greenville Memorial Hospital (GMH), flagship hospital of Greenville Hospital System University Medical Center, again joined the ranks of top medical institutions in the 2010-11 U.S. News & World Report guide to Americaâ&#x20AC;&#x2122;s Best Hospitals. GMH has the only heart and diabetes/ endocrinology programs in the state to be ranked by U.S. News & World Report. Learn more at ghs.org/usnews.

100482SCB

Honored for two consecutive years, GMH ranked in the top 50 in three specialty areas: Diabetes & Endocrinology Gastroenterology Heart & Heart Surgery

> > F E AT U R E

Best practices for creating

corporate wellness programs

By Chris Dav i s

or all practical purposes, every self-insured employer manages its own unique health plan. Generally, this combines underwriting the cost of health care with owning the financial risk associated with the overarching health care cost of employees. Not all employers are equally adept at managing this venture, which often is the second largest expenditure for employers. Several studies from brokerage, actuarial and consulting firms have acknowledged similar observations: There is a widening gap in the cost of health care between employers that cannot be explained by differences in demographics, network, geographic location or market location. A large volume of employers are seeing double-digit increases in health care costs, while others are effectively administering and addressing the current and future risks of their health care plan’s cost. Most of the literature regarding effectively run health plans reveals an interesting dichotomy: Companies that spend less on health care actually create a heightened focus on improving the health of their employees, while those that focus on the administrative aspects of health care, such as procurement or benefit cost-shifting, tend to spend more1.

To properly manage health care costs, employers need to take a sharply focused, outcomeoriented approach to measuring and managing the prevalent and preventable clinical risks within the covered population. Employers need objective health analytics combined with administrative, clinical and financial programs that support an internally developed culture of health within both the worksite and employee population. In companies where employee health is both valued and quantified, the employer and employee mutually benefit through multiple metrics, such as lowered benefit cost, fewer illness-related absences, higher productivity and higher employee retention. Creating measurement parameters hen developing an integrated wellness program, most employers aren’t sure where to begin because they fail to identify how to properly measure the outcomes of

the program and what they want to accomplish. • Will wellness be used as a sustainability tool for any lines of employer-sponsored insurance coverage? • Will wellness be used as a vehicle to improve productivity metrics? • Will the wellness program be used as a means to attract and retain employees or to build the corporate brand? Once a company has outlined specifically what the wellness program will address, then it becomes imperative to measure the parameters both before the change was made and at intervals as the change takes place. Plans must be made in advance to obtain the data necessary to measure if a change has occurred. This could relate to physical measures of employees’ blood pressure or glucose, pharmacy utilization of generic drugs or the cost of emergency room visits within the health plan. Due to the complexity of this process and its resulting data, it is vital to incorporate your benefits advisor, the health plan and any additional vendor services available to benchmark and develop parameters for future measurement and determine if there are any additional integration opportunities. Return on investment ost published data confirms the overwhelming majority of successful wellness programs focus on having a multi-faceted delivery system that addresses specific population and business related needs. In most scenarios, employer groups that place emphasis on the scope, relevance and quality of the program and quantify the efficiency of integration across all measurable effects tend to show a strong return on investment, often within three years or less. Here are a few guidelines to help quantify a justifiable return on investment (ROI) for wellness and health benefits strategies: • Clearly define what metrics are to be integrated into the health

WHAT SELF-FUNDED, BEST PRACTICE COMPANIES DO FINDING

TMCA CHARTS

SUMMARY

Implement clinically-based care management programs

Employers with lower health care costs report the use of clinically focused care management programs to manage the clinical risk of their covered population. Case management for catastrophic conditions has the highest impact. A mix of disease management for chronic illness, biometric testing, employee assistance programs and onsite physicians also impacts costs.

Use cash-based incentives to drive health behaviors

Employers with the lowest costs provide employees with incentives to participate in health programs. These employers use premium reductions, direct cash payouts or contributions to spending accounts as rewards for annual physicals, biometric screenings, participation in condition management programs or tobacco cessation programs.

Practice excellence in benefits administration and communication

Employers who excel in administration and communication practices have lower health care costs. Practices include centralized recordkeeping, accurate eligibility management and targeted communications. Low-cost employers use vendors who create a seamless experience for participants and communicate all health-related messages through a single look and feel.

COST DIFFERENCE

18.2% 18. 2 percent average decrease (savings of $1,400 per benefiteligible employee)

15.1% 15.1 percent average decrease (savings of $1,165 per benefiteligible employee)

12.7% 12.7 percent average decrease (savings of $980 per benefiteligible employee)

Data from 2007 SHPS Health Practices Study: What Every Self-Insured Employer Should Know.

s c c h a m b e r. n e t | M a y / J u n e 2 0 1 1 | S o u t h C a r o l i n a B u s i n e ss |

> > F E AT U R E

WHAT SELF-FUNDED, BEST PRACTICE COMPANIES DON’T DO

Implement standalone wellness promotion and education

SUMMARY

COST DIFFERENCE

Employers who manage employee health solely through the use of web-based health portals and lifestyle coaching (or less) spend almost 17 percent more on health care than those who do not. Many employers consider health promotion and education programs to be a substitute for rigorous care management. These programs must be part of a comprehensive program that focuses on managing clinical risks and integrating data for a holistic view of the participant.

• • • • Companies that focus on the administrative aspects of health care tend to spend more.

16.9% 16.9 percent average increase (increase of $1,300 per benefiteligible employee)

management ROI process, including health claims cost, pharmacy claims cost, STD/LTD Claims cost, worker productivity output, illness-related absences and workers’ compensation claims. Use predictive modeling to quantify an aggregate cost of expected claims if current health risks are left untreated/undiagnosed for the benefit year. Quantify the cost invested in health benefit plan design, wellness offerings or services and the cost of ancillary personnel for these needs (brokers, wellness practitioners, onsite medical management). Implement the strategic plan focused on the outcomes-based wellness and health benefit offerings for the benefit year. Utilize collected claims information to benchmark against the predictive modeling untreated estimate. Deduct out the program cost – any net savings can be quantified towards return on investment determinations.

Chris Davis is the corporate wellness program manager for the AmeriHealth Mercy Family of Companies, Select Health of South Carolina’s parent organization. Select Health of South Carolina is the state’s largest Medicaid health plan.

Business Connections South Carolina St yle

Successful business expansion plans are all about connecting the dots. As the nation’s largest publicly owned generator of electricity, Santee Cooper can provide you access to all of the power and the resources of South Carolina’s Power Team. Composed of Santee Cooper and all 20 of the state’s electric cooperatives, the Power Team is dedicated to building strategic relationships with smart, forward-thinking businesses that are looking to expand within the state. We back this commitment by delivering quality service and reliable power at some of the lowest rates in the nation. Get connected in South Carolina. Visit www.scprimesite.com/SCB.

santee_scecde_4862_5 dp_7X5.indd 1

| S o u t h C a r o l i n a B u s i n e ss | M a y / J u n e 2 0 1 1

2/15/11 11:31 AM

h. linke

FINDING

Business leaders go further faster with the powerful resources of Dixon Hughes Goodman, a Top 15 US accounting firm, whose experienced professionals pull together and help clients feel like one of a kind.

HORSEPOWER

1700+ 11 13th 79

People States and District of Columbia Largest CPA Firm in the US Year History of Resources and Relationships

+ handling

positively u niqu e CPAs and Advisors throughout the South and Mid-Atlantic â&#x20AC;˘ dhgllp.com

Berchtold Corporation

MATT WEISMILLER

May~June 2011 Centerfold

>> CENTERFOLD

| S o u t h C a r o l i n a B u s i n e ss |

May/June 2011

s c c h a m b e r. n e t | M a y / J u n e 2 0 1 1 | S o u t h C a r o l i n a B u s i n e ss |

By Matthew Gregory

PHOTO GRA PH BY PAT C RAWFORD

hen first walking through the doors of Berchtold Corporation’s U.S. headquarters in Charleston, S.C., visitors might think they have taken a wrong turn and stumbled into a hospital operating room. The showroom greets arrivals with a dazzling display of LED operating lights, state-of-the-art surgical tables and equipment management systems. Further inspection of the facility reveals a full manufacturing area where employees assemble the highly customizable medical equipment that is on display in the showroom. But the surgeons and hospital administrators from around the world who visit Berchtold every year don’t make the trip to simply look at the equipment. Berchtold is a global leader in the design and implementation of innovative surgical environments, helping health professionals build operating rooms (ORs). “Whether hospitals are doing new construction or renovations, we make sure those spaces are designed properly for maximum efficiency, and the client gets the surgical space they need,” said Matt Weismiller, president of Berchtold Corporation.

Cutting-edge design

>> CENTERFOLD

Cutting-edge design

biomedical engineer by trade, Weismiller has spent his entire 25-year career in health care. A Chicago native and Purdue University graduate, he started out as a design engineer and new product development leader before entering marketing and general management. He worked in managerial roles for the last 15 years, including a management position at Hill-Rom, a medical device company, before coming to Berchtold in 2009. Weismiller said the satisfaction of helping others has kept him in the health care industry. “When you’re in health care, you never have to ask yourself the question in the morning of whether you’re doing something valuable or not. You’re always working in a business that really helps people in their most difficult time,” said Weismiller. “It’s not like being a nurse or a doctor and being one of the direct caregivers, but anytime I go into a hospital and see a piece of our equipment being used to care for someone, there is a great feeling I get from knowing that all the hard work and effort is creating some pretty significant social good.” Berchtold has a long history of providing advancements in the medical field. Founded by Theodor Berchtold in Germany in 1922, Berchtold started as a surgical equipment company and has grown to an industry innovator. In 1959, the company developed the first integrated OR inlight camera. When the world’s first heart transplant was performed in Cape Town, South Africa in 1967, it was done under a Berchtold lighting system. In 2000, Berchtold unveiled the first voice-activated lights. The company announced the industry’s first 1,000-pound standard table in 2006. The company, headquartered in Tuttlingen, Germany and led by CEO Stephan Sagolla, opened its U.S. headquarters in Charleston in 1988. The Charleston facility houses about 100 employees split between sales and marketing positions and operational jobs in manufacturing and services. The company has another 105 employees located in the field throughout the U.S. “A lot of our expertise is in the field, but many of the tools needed to visualize the room are here in Charleston. If a client is close to making a decision and they want to fully understand all the details, we bring them to Charleston, where they can see the latest technology here in our showroom,” said Weismiller. Berchtold’s SuperSuite program has created thousands of surgical suites for health care providers around the world. Knowing that no two surgical spaces are alike, Berchtold offers customized room analysis and design to ensure rooms adequately

Harry Leggett, a CHROMOPHARE assembly technician, performs final quality control on Berchtold surgical lights.

| S o u t h C a r o l i n a B u s i n e ss | M a y / J u n e 2 0 1 1

meet each customer’s specific needs. Through interactive room design, Berchtold provides visual tools for hospital personnel, architects and equipment planners via 3D interactive modeling that offers detailed data on ceiling heights, door locations, workflow analysis, equipment placement and more. Berchtold welcomes 30-50 groups every year that get a hands-on look at how their surgical spaces are coming along during the development process. In addition to experiencing the medical equipment firsthand, guests are invited to the R&D area to see upcoming innovations Berchtold is working on that will be available in the future. Most importantly, customers provide feedback to the design team to ensure their rooms are as flexible as they need to be. Once an OR is up and running, “Berchtold and its experienced few hospitals want to interrupt team worked closely with Roper doctors to make a change. Since St. Francis Healthcare when we Berchtold manufactures its medical developed our state-of-the-art equipment onsite, orders can Roper Heart and Vascular Tower, be changed as they are being which opened in 2006. We were built. In fact, Weismiller estimates so impressed in how their team approximately 20 percent of worked closely with our surgeons customers make a change in the and operating staff to create last two weeks before their surgical operating rooms and a modern spaces are finalized. endovascular suite that could do every type of heart and vascular Berchtold gets involved in procedure. We all moved forward the design process early on, so easily with innovative concepts. communicating with architects After completion, we became a site and building planners. Berchtold where Berchtold brought operating even offers accredited educational teams from around the country.” programs to train architects on the design of ORs and intensive care John (Jeb) Hallett, M.D. units. Medical Director and Vascular Surgeon “When architects are laying out a Roper St. Francis Heart and Vascular floor, they can make sure the rooms Center are large enough, the basics are done well, the flow is correct and the patients can be transported in and out of the room easily,” said Weismiller. “This is the reason why we’ve invested resources in the architectural community because it benefits us and the hospitals if we are closely collaborating with them.” Berchtold fills its meticulously designed rooms with award-winning equipment that includes its CHROMOPHARE® series of surgical lighting, which uses light-emitting diodes (LEDs). The LEDs are all white but can give off a white with blue tint or white with yellow tint. Depending on the type of surgery being performed, each of these tints allows surgeons to better distinguish tissues and other anatomical structures based on the shade of light. In addition, by using LEDs, the lights can go for 16,000 to 20,000 hours without being replaced. Berchtold’s TELETOM® line consists of highly configurable equipment management systems, referred to as booms, with electrical and gas power connections that allow doctors to easily move and store equipment in an OR setting. The company’s OPERON® surgical tables have the highest weight capacity and range of articulation in the industry. Berchtold’s TABLEGARD® surgical table mattresses reduce the pressure on a patient’s skin to prevent pressure sores and fight hypothermia by keeping a patient’s core temperature up during long surgeries. As medical technology continues to advance, Berchtold is designing more

S ANDY AND R E W S

MATT WEISMILLER / Berchtold Corporation

There’s a new place for hope, healing, and comfort.

Welcome to the new Self Regional Cancer Center – a sanctuary where the body, mind and spirit are treated as one. All services are now in one place, specially designed for treating people with cancer. The center is built around a healing garden, where patients can relax and enjoy the gentle whispers of a fountain, inhale the fragrance from therapeutic plantings, and listen to peaceful music. Yet this serene, natural setting is the home to amazing, state-of-the-art technology, board-certified

CanCer CenTer We bring advanced care closer.™

oncologists and specialized staff who are here to fight cancer head on and stand by you every step of the way. It’s cancer care in a whole new way ... only at Self. 1325 Spring Street, Greenwood, SC • 864-725-4111 • onlyatself.org Thank you for supporting the Forever Self Campaign.

sophisticated spaces. According to Weismiller, one the state’s port system, which allows the company to rapidly emerging surgical technology is guided import and export manufacturing materials without surgery, also referred to as hybrid rooms, where a logistical problems. Berchtold’s proximity to the Medical piece of imaging equipment is combined with a surgical University of South Carolina (MUSC) also gives it a close process. For example, an X-ray image intensifier, relationship with a facility focused on training health sometimes referred to as a C-arm, will be mounted on care professionals. the ceiling so a surgeon can get a live image feed on a Weismiller also cites engineering talent as a key nearby monitor to visualize something in the patient’s advantage. anatomy without having to make an incision. “This is going to be one of the secondary “We’re seeing more and more mobile X-rays advantages to the build up that we’re going to see along with CT scans and MRIs. All the various imaging through Boeing and its first- and second-tier suppliers. modalities are beginning to come into the OR. Some I think you’re going to see a stronger engineering of the highly traditional areas that have been their community in the Charleston area that is going to own departments in hospitals for decades, such as benefit all of us, even companies that don’t have cardiac catheterization labs, are becoming more like anything to do with aerospace.” ORs now. They are starting to merge to where imaging Berchtold has already had to expand its Charleston equipment is now in the surgical space and can be used facility twice and is now at maximum capacity. in real time to visualize things that couldn’t be visualized Weismiller said it is likely the company will have in the past,” said Weismiller. to expand to a new location in Charleston in the Andrew Diaz, a TELETOM assembly Berchtold is also building more rooms equipped technician, finalizes the assembly of future. Given Berchtold’s room planning expertise a boom. for robotic surgery or computer-guided surgery. At a and ongoing experience with architects and building minimum, Berchtold will be closely collaborating with planners, the design portion of the expansion should the companies that provide this technology to make sure it is well integrated into be an easy task for the company. surgical rooms. However, Weismiller said it’s also possible Berchtold will become a manufacturer of such equipment in the future. Matthew Gregory is the multimedia coordinator at the South Carolina Chamber of According to Weismiller, South Carolina is a perfect location for Berchtold due to Commerce and editor of South Carolina Business magazine.

| S o u t h C a r o l i n a B u s i n e ss | M a y / J u n e 2 0 1 1

S ANDY AND R E W S

> > F E AT U R E

Measure of Success:

Having a financial partner ready for your next opportunity NBSC commercial bankers build powerful business banking solutions that are ready to work for you. bankNBSC.com | 800-708-5687 *Subject to credit approval. NBSC is a division of Synovus Bank. Synovus Bank, Member FDIC, is chartered in the state of Georgia and operates under multiple trade names across the Southeast. Divisions of Synovus Bank are not separately FDIC-insured banks. The FDIC coverage extended to deposit customers is that of one insured bank.

Parent Talk

nbsc_4935_measure_divbiz_scbusiness_01.indd 1

Are You Ready?

12/23/10 10:16 AM

Each year, millions of Americans come face-

to-face with the daunting task of providing for the care of an aging parent. Unfortunately, many find themselves ill-informed and unprepared.

As almost all of us will face this dilemma at

some point, Parent Talk is a must read source of expertise and information for any adult child. Throughout this book, author G. Scott Middleton

draws on his years of experience in senior

healthcare to assist you in anticipating your parent’s decline, understanding the best care

G. Scott Middleton

options, and making sound decisions. Come

gain the invaluable insights revealed through

The Nine Conversations as you become your

About the Author: G. Scott Middleton holds a Master of Divinity from Emory University, and a Master of Health Administration from the University of South Carolina. He is the founder, president, and CEO of Agapé Senior, a network of companies that provide an array of healthcare and related services throughout South Carolina. Scott is also a board member of the South Carolina State Chamber of Commerce.

Ad-State-Chamber-Parent-Talk.indd 1

loved one’s keeper.

1-800-411-AGAPE 1-800-411-2427

Barnes & Noble • Amazon.com 9Conversations.com 4/14/2011 11:46:46 AM

s c c h a m b e r. n e t | M a y / J u n e 2 0 1 1 | S o u t h C a r o l i n a B u s i n e ss |

> > F E AT U R E

Workplace wellness:

Building a healthier employee

ith businesses struggling to afford health care coverage for employees in the current economic climate, some innovative companies have adopted a new mindset – lowering health care costs by investing in wellness programs. Small and large businesses across the Palmetto State are recognizing the importance of giving employees the resources to live healthier, happier lives, starting in the workplace. Michelin s rising health care costs plagued many businesses in 2007, Michelin realized it needed a sound plan for the future. After 18 months of analysis and design, a new corporate strategy to help employees achieve better health and quality of life was born: Choose Well-Live Well (CWLW). A holistic, long-term strategy for changing how Michelin employees and their families approach health care, CWLW integrates

preventive care and consumer-driven medical plan design with healthy food choices, health risk assessments, health coaching, weight management, condition/disease management, case management, financial incentives and more. When Michelin employees and families enroll in the Healthy Options Medical Plan, they receive many of the usual health benefits. However, they also get access to more than 20 onsite and telephonic CWLW programs at no cost. They receive additional HRA funds just for completing a Personal Health Review (PHR) and creating a Health Action Plan (HAP). In addition, the plan provides employees with a health advocate, a clinically trained registered nurse who helps employees navigate the health care system by answering questions and providing wellness information. “Michelin’s employees are the backbone of our company,” said Martin Storey, director of benefits for

| S o u t h C a r o l i n a B u s i n e ss | M a y / J u n e 2 0 1 1

Michelin North America. “The health and well-being of our employees has a direct impact on the success of our company.” In keeping its commitment to employee wellness, Michelin opened its first Family Health Center in North America in December at its North American headquarters campus in Greenville, S.C. The center, operated by Walgreens Take Care Health Systems, offers primary care, urgent care and preventive care. “The Michelin Family Health Center offers employees, retirees and their families a convenient and highly cost-effective option for quality health and wellness care,” said Dick Wilkerson, chairman and president of Michelin North America. “The second Michelin Health Center is already under construction at our Donaldson Center campus, and there are plans to create health centers at additional sites in the future.” As of February 2011, the Family Health Center had received an average of 162 patients per week and almost 2,000 total visits. Employees represented 58 percent of these visits, with dependants comprising 36 percent and retirees making up 5 percent. Michelin saw positive results in the first year of the CWLW program, including a return on investment of $7.2 million versus a projected $2.1 million. In the first year, 23 percent of employees reported an increase in life satisfaction. In 2010, Michelin was one of 66 employers to receive the Best Employers for Healthy Lifestyles Award from the National Business Group on Health’s Institute on Innovation in Workforce Well-Being. Sonoco eadquartered in Hartsville, S.C., Sonoco, the multi-billion dollar global manufacturer of consumer and industrial packaging and provider of packaging services, puts a big focus on sustainability, maintaining a commitment to social responsibility and sound environmental practices. The company also makes wellness a top priority for its employees. “Creating a culture that encourages employees to live healthy lives is the right thing to do for our people and the smart thing to do from a business

K . Z enon

By Matthew Gregory

P H O T O G R A P H Y C O U R T E S Y O F michelin & rhythmlink

Michelin’s new Family Health Center, located at its Greenville campus, is operated by Walgreens

Rhythmlink’s wellness initiative includes an employee gym at its Columbia

Take Care Health Systems.

facility.

perspective,” said Harris DeLoach, chairman and CEO of Sonoco. “The health of our employees directly impacts our profitability through health care costs and health-related productivity issues like lost work time, employees who are at work but sick, disability and workers’ compensation costs and lost employee engagement.” Sonoco has implemented numerous health and wellness offerings for employees, including Weight Watchers at Work meetings, smoking cessation assistance, healthy food options for business meetings and in the Sonoco cafeteria, an on-campus walking trail and online health courses offered by BlueCross BlueShield of South Carolina. Sonoco will provide a huge wellness benefit for employees later this year when it opens the Sonoco Health Connection, an employee health center that will operate during working hours at the Learning Center on the company’s Hartsville, S.C. campus. Scheduled for an early fall opening, the Sonoco Health Connection will give employees access to a nurse practitioner, a health coach, a medical assistant and a part-time physician. Once it’s open, Sonoco employees who don’t feel well can visit the Sonoco Health Connection, pay a reduced co-pay and get diagnosed and treated without having to leave the Sonoco campus. They might not have to drive to a pharmacy either, as antibiotics and some prescription medication will be available at the health center. In addition to helping sick employees, the health center will provide preventive medicine. “We do believe that a portion of our employee population doesn’t regularly see a doctor or even have a family physician. Our goal will be to have these employees get their blood pressure checked or screening blood work done to identify any issues early and avoid more serious health issues in the future,” said Shirlee Sanderson, manager of employee benefits at Sonoco. The Sonoco Health Connection will enable employees to get tetanus, pneumonia and allergy shots, annual wellness exams and one-on-one help to better manage chronic conditions, such as asthma, diabetes, migraines and cardiovascular issues. While the facility is costing Sonoco time and money, with remodeling being done to an existing onsite structure, the company believes the future benefits will more than pay for the initial investment.

“We believe we’ll see both a shortand long-term return on the investment we’re making to encourage healthy living and early management of potentially serious and expensive health issues, like high blood pressure or high cholesterol, through both reduced health care costs and improved employee productivity,” said DeLoach. Rhythmlink International LLC onsidering Columbia-based Rhythmlink International LLC is in the health care business, designing, manufacturing and distributing neurodiagnostic accessories for numerous applications, the company understands the importance of fostering a healthy work environment. Rhythmlink encourages employees to eat healthy foods and holds weight Unlike some small businesses, loss competitions. Rhythmlink is able to provide health prove the idea of a wellness campaign due to his benefits for its 30 U.S. employees through a catamedical background. Before starting Rhythmlink strophic health insurance plan that’s supplemented with a health savings account. However, the company nearly nine years ago, Regan worked within clinical intraoperative neurophysiological monitoring realized health savings were possible by implementing [IONM] and later in sales and marketing for IONM a wellness plan. monitoring equipment. Regan said he’s been According to Amanda Rosinski, marketing and pleased with employee participation. communications manager at Rhythmlink, the compa“It’s something I wanted to do to help the employny’s foray into the wellness world began in 2010 while ees, build camaraderie, get them involved and get reviewing new insurance and health care options for them healthier,” said Regan. employees. A wellness committee chaired by Rosinski Regan said that tracking return on investment in was formed, and a plan for 2011 soon took shape. the coming years might be tricky. “We created a yearlong proposal of three main “A lot of the benefits can be soft benefits - boostcomponents. The first component was creating a gym ing morale, increasing employee retention and gethere at our Columbia facility that all of our employees ting more employees to come here and want to stay can access. We finished that up in February. We also here. That stuff is harder to quantify when you pull conducted a step challenge, where we had about 15 it all together, but we think it adds to the overall big participants from the office compete for eight weeks picture of the company,” said Regan. to see who could achieve the highest number of steps per week,” said Rosinski. Matthew Gregory is the multimedia coordinator at The internal competition quickly heated up, with a the South Carolina Chamber of Commerce and the cash prize enticing many employees to get involved. editor of South Carolina Business. Now, the wellness campaign has entered its third stage with a weight loss challenge. The individual who loses the largest percentage of weight over an eightweek period wins a cash prize. Rhythmlink CEO Shawn Regan was quick to ap-

s c c h a m b e r. n e t | M a y / J u n e 2 0 1 1 | S o u t h C a r o l i n a B u s i n e ss |

> > F E AT U R E

Talent management: The key to economic recovery By John A. Slavich

The numbers are staggering, and the risks are real. According to a study conducted by the Economist Intelligence Unit, “Top executives worldwide now rank human capital risks as the most serious challenge facing their global operations.” Unemployment is high, yet companies are unable to fill their talent needs because of inadequacies in skill sets and education required for job openings. Companies have cut costs to survive by producing more products or services with less human capital. However, medical costs have skyrocketed, and stress-related illnesses amongst workers are at an all-time high. Baby boomers have delayed retirement because of lost retirement funds and are occupying positions that Generation Xers have targeted for advancement. Leveraging talent management is now the critical success or failure factor in today’s business environment. Leverage your talent to gain a competitive advantage Hewitt Associates states, “More than 90 percent of organizations reported their senior leaders believe that outstanding talent is essential to competitive advantage.” Leaders are faced with many challenges as they try to effectively manage their workforces.

agreement on a future state, it must complete a root-cause analysis of each SWOT identified in the initial analysis. Executives must understand the “why” of the SWOT analysis and should not stop asking “why” until the primary root cause is identified. 3. Establish action plans If identifying the root cause of an issue is the easy part, putting an action plan in place to address the root cause is the most difficult task. The key is to act. Many companies fail because of “paralysis by analysis,” or the fear of the difficulties they face in implementing an action plan. Executives cannot avoid the shift in workforce demographics. The change is coming, and a company’s best employees may be looking for new employment when the economy shifts. A company must decide to act before this shift causes a competitive disadvantage for its future success.

There is greater cultural diversity as companies become more fully globalized. Mergers and acquisitions, reorganizations, outsourcing and an aging workforce have led to a shortage of skills in critical roles. Competition to recruit and retain talent in the workplace will be the biggest challenge that companies face in the next five to 10 years, yet most companies are not prepared. Employment trends have certainly favored employers over the past three to five years, as declines in the economy have forced most employees to “hunker down” and be grateful for having a job. Employees understand there are not jobs in the market attractive enough for them to leave their current employment. They are stuck where they are – for now. Savvy job seekers and proactive employers who have studied labor trends realize that the days of “retention by necessity” are about to end. What should a company do to prepare for this shift? Strategies and business decisions can be made to defend against a mass exodus of employees holding critical knowledge when the shift begins, but companies must not wait until recruitment and retention weaknesses surface before they begin to prepare a plan of action. Companies should employ the following strategies immediately to prepare for this shift and minimize risk. 1. Identify current and future states of the business The first step in gauging recruitment and retention risks is to understand the company’s current state of business. Leaders must not assume they know their company’s culture. They must conduct a comprehensive assessment of their company’s current state of business using the SWOT analysis (Strengths, Weaknesses, Opportunities and Threats). This assessment must be a team-based approach including all levels of personnel not only to truthfully evaluate the current state, but also to identify the future or ideal state of the business. The SWOT analysis must be all-inclusive and must include the people and the culture of the organization. 2. Analysis of SWOT and root cause decisionmaking Once a company has baseline data of its current state and

| S o u t h C a r o l i n a B u s i n e ss | M a y / J u n e 2 0 1 1

4. Continual improvement Creating a culture focused on the people, and all facets of workforce management, is a very difficult task and easy to forget when a major customer cancels a contract, profit margins decrease or costs soar. Great companies understand that business is cyclical, and they inspire loyalty when they remember who got them through the difficult times. They recognize the sacrifice their employees have made by accepting years of pay cuts or no pay raises, reduced benefits, longer working hours and very high stress levels. Great companies strive for continual improvement in all that they do – whether it’s improvements in their safety, quality, delivery, productivity, processes or leveraging their talent. They ensure continual improvement by never accepting today’s practices as good enough. Why are my best employees leaving? Employees leave for many reasons. The order changes based on the overall economy and particular company, but the reasons almost always stay the same. In no particular order, great employees leave for very similar reasons: • Lack of leadership – people leave bosses before they leave companies • Inadequate pay or overall compensation packages • Work/life imbalance • Job is not what was expected • Feeling undervalued • Lack of growth opportunities or career development HR leaders must understand that leveraging the talent within their companies is the best way to ensure future success. Likewise, a lack of action to make this a competitive advantage is the surest way to fail. As the economy begins to recover and companies begin to ride the coming growth cycle, leveraging company talent while preparing for a changing workforce is the key to South Carolina’s economic recovery. John A. Slavich is CEO of Human Resource Dynamics, a Columbiabased firm that provides customized, inventive HR solutions.

CRAIG SMALLISH

oor economic conditions have forced companies to make many difficult decisions since 2007. Business closures, bankruptcies and reduction-in-force (RIF) activities are commonplace, and these decisions have changed the workforce in many dramatic ways: • Companies reduced headcount by an average of 15 to 20 percent from 2006 levels; • Workload did not decrease, so remaining employees were forced to take on additional tasks; • The average American worker now works approximately 50 hours per week; • Unemployment rates of 10 percent or more are reported in most states, with South Carolina hovering near the top; • Actual unemployment is closer to 18 to 20 percent, as many job-seekers have given up the search for employment, are vastly underemployed in relation to skill set, experience and pay or simply don’t have the expertise and education to fill current job requirements; • According to The Executive Guide to High-Impact Talent Management by David DeLong and Steve Trautman, 75 percent of all American workers are currently un happy in their jobs, and 60 percent of those workers plan to look for new employment when the economy begins a sustained recovery; • As the baby boomer generation continues to retire, the number of candidates in the age bracket that normally fill leadership roles will drop 30 percent by 2015; • Many talented managers are foregoing senior leadership roles because of increased job demands, work-life balance needs and decreased mobility or unwillingness to move through geographically distributed companies; • Assuming moderate growth, many organizations will be left with about half the leadership talent they will need for strategic competitiveness.

H e a l th

Care

Checkup

It’s too late to avoid government-run health care By Robby Ke r r

t’s really no surprise that Medicare and Medicaid are drawing a lot of attention since they account for a little more than 20 percent of total government spending. With all the recent talk of a government shutdown and debt ceilings, it might be timely to take a closer look at the role government plays within our health care system. Roughly 67 percent of us receive our health care in the private sector, while 30 percent have government or public programs as a primary source of coverage. The government coverage ranges from programs such as Medicare and Medicaid to local government employee programs. However, when it comes down to who actually pays for health care, the spending numbers vary significantly from the coverage numbers. Private sector spending accounts for around 41 percent of total spending, while government accounts for 47 percent. The government is responsible for about half of all health care spending in this country, even though it only covers 30 percent of the population. This variance can be attributed to the fact that government covers a disproportionate share of higher risk or higher cost patients. If we completely removed the government from the delivery of health care, the results would be dramatic. Just under a third of citizens would lose coverage, and almost half of all health care spending would cease. In South Carolina alone, more than half of all births would not be funded, 70 percent of nursing home beds would go empty and at least 40 percent of children would be without health care coverage. As the rhetoric continues on health reform, many say that we need to keep government out of health care. However, the facts indicate that it may be a little late for that. Government involvement in health care is so pervasive, it would be almost impossible for it to extricate itself. The trend shows no real sign of slowing down. In the last two decades, the share of public health care spending has gradually increased roughly 12 percent. Two pending events will accelerate that growth. First, the Patient Protection and Affordable Care Act increases Medicaid coverage to 133 percent of the Federal Poverty Level. Second, the federal government is beginning to take a greater role in how states set Medicaid rates. Both of these factors could cause government spending to reach as high as 60 percent of total spending. In that light, even the most casual observer would admit the decision to have government-run health care might have already been made.

Robby Kerr is the president and founder of Kerr & Company, a private consulting firm. He has worked in state government for more than 20 years and is a former director of the South Carolina Department of Health and Human Services.

Announcing the Grand Opening of our New PRTF in Kingstree, SC

Expanding Horizons…to live, learn, work and participate in society …We Impact Lives Proudly serving South Carolina youth in Williamsburg County

Leadership, Structure, Support

s c c h a m b e r. n e t | M a y / J u n e 2 0 1 1 | S o u t h C a r o l i n a B u s i n e ss |

MEMBER SPOTLIGHT

>> MEMBER SPOTLIGHT

Self Cares: Patients, employees and community By Julie Scott

at Self Regional. BrainSUITE is the first OR of its kind in the Southeast and only the fourth in the nation. With the only other facilities in Maryland, Arizona and Wisconsin, BrainSUITE continues to put Self Regional, the Greenwood area and South Carolina on the map. Whether surgeons are performing brain surgery or a spinal procedure, BrainSUITE allows them to engage the CT scanner and digitally portray the area onsite in the OR. Thus, surgeons are able to precisely pinpoint the surgical area. Prior to BrainSUITE, surgeons would use triangulation and take pre-images of the area then conduct the surgery based on those images. With BrainSUITE, surgeons do not even have to leave the OR. Self Regional Healthcare is also home to the Spine Center of South Carolina, which has three neurosurgeons and a spine care coordinator to help patients navigate the system. These experts work with each patient from the initial diagnosis through recovery. The hospital prides itself in its employees, called “team members.” Self Regional has been named a Gallup Great Workplace Award Winner four times, recognizing the hospital for its extraordinary ability to create and sustain an engaged workplace culture. In addition, the hospital is a Governor’s Quality Award winner. And this year, Self Regional is going even further, implementing new wellness initiatives for team members, designed to save them money and improve their health. “Of our 5,000 covered lives in our health plan (self-insured), we started doing some math and found that we spent upwards of $15 million in BrainSUITE allows surgeons performing brain surgery or a spinal procedure to engage the CT scanner and digitally health care expenses. Of that, only 285 covered lives portray the area onsite in the OR. accounted for about 85 percent of our health care Self Regional Healthcare began as one of the most advanced hospitals in the costs,” said Jim Pfeiffer, president and CEO of Self Regional Healthcare. country. James C. Self, an industrialist and owner of Greenwood Mills, whose The plan, called Self Cares, has a 90 percent employee participation rate. To father and brother were physicians, wanted to give back to his community after take part in the plan, employees are asked to sign a commitment to wellness. They the current hospital was severely damaged in a 1944 tornado. World War II was complete a personal wellness profile, which includes questions about sleep, stress still underway, so once his team was able to secure materials to build the structure, levels, exercise, smoking and drinking, to start getting a baseline of their wellness. Self spent $5 million building a premier medical facility. Self Regional also does some screening, which includes blood pressure, body mass In 1951, Self Regional Healthcare was born as the first air conditioned hospital index (BMI) and a chemistry profile measuring glucose, triglycerides, etc. Employees in the United States and the first with a nurse call system. James Self also took are asked to identify a primary physician to discourage emergency room visits. an active role in recruiting talented and recognized physicians to the area. That “What we are finding is that we are bending the cost curve for team members tradition has continued, with exciting new facilities and medical advancements at through the Self Cares plan. It is voluntary with incentives. Your premiums and outthe hospital each year. of-pocket costs are lower. We are seeing it work,” said Pfeiffer. Last July, BrainSUITE, an advanced surgical operating room (OR), opened Pfeiffer said obesity is one of the largest causes of preventable disease in South

| S o u t h C a r o l i n a B u s i n e ss | M a y / J u n e 2 0 1 1

P H O T O G R A P H T C O U R T E S Y O F S E L F R E G I O N A L H E A LT H C A R E

alling your employees “team members,” adopting the motto “I Am Self” and scoring off the charts on an annual workplace satisfaction survey illustrates a care for people that many companies seek to emulate. But this type of attitude is all in a day’s work at Self Regional Healthcare in Greenwood.

The BrainSUITE at Self Regional Healthcare is the first OR of its kind in the Southeast and only the fourth in the nation.

Carolina. With higher instances of heart and vascular disease as well as diabetes, obesity is of epidemic proportions, he said. And this CEO doesn’t just talk the talk. He walks the walk, or rather rides. Each month, Pfeiffer hosts a “Bike Ride with the CEO,” a chance for Self team members to participate in a six- to seven-mile ride to encourage physical fitness. In fact, anybody who has a bike and helmet can ride, even members of the Greenwood community at large. Related to federal health care reform, Pfeiffer believes trying to go from a volume driven model to a value driven model is on target. He says there are still a lot of unknowns related to health care reform, but Self Regional is embracing it. “Regardless of your political persuasion, health care reform is inevitable. The status quo is not an option. We can’t continue to go down the road of cost-shifting to third party payers because it affects the well-being of the entire economy. If we continue down the road of cost-shifting, taking the uninsured and cost-shifting their inability to pay onto employers, it is going to derail our economy,” he said. James C. Self’s mission was to bring advanced medical care closer to home in the Lakelands area, and today’s Self Regional Healthcare is doing just that. In fact, a brand new 40,000-square-foot cancer center just opened in April. “We really pride ourselves in the tagline, ‘I Am Self,’” said Pfeiffer. He and his Self Regional Healthcare team continue the mission started 60 years ago by a man who dreamed of bettering his community and putting people first. Julie Scott is the public relations manager at the South Carolina Chamber of Commerce.

Self Regional’s patient tower opened in 2006. s c c h a m b e r. n e t | M a y / J u n e 2 0 1 1 | S o u t h C a r o l i n a B u s i n e ss |

UPCOMING EVENTS

>> UPCOMING EVENTS

Force Protection proud to be named Large Manufacturer of the Year By Tommy Pruitt

orce Protection Inc. was proud to be selected as the 2010 South Carolina Large Manufacturer of the Year by the South Carolina Chamber of Commerce. As we have expanded exponentially since our founding in 1997, so has our commitment to the growth and development of our employees and the communities in which we operate. To be chosen as a winner among the caliber of nominees is humbling. To formally recognize our dedicated team, whose contributions to our daily operation are immeasurable, is singular. Force Protection’s Cougar 4X4. As the leading designer, developer and manufacturer of survivability solutions, including blast- and ballistic-protected wheeled vehicles currently deployed by the U.S. military and its allies to support armed forces and security personnel in conflict zones, we have one core mission – saving heroes’ lives. Through innovative design and technology, Force Protection’s specialty vehicles, including the Buffalo, Cougar, Ocelot, JAMMA and related variants, are designed specifically for reconnaissance and urban operations and to protect their occupants from landmines, hostile fire and improvised explosive devices (IEDs). The company also develops, manufactures, tests, delivers and supports products and services aimed at further enhancing the survivability of users against additional threats. We believe our more than 1,000 employees, most Stephanie Jones accepts the 2010 South Carolina located at our 500,000-square-foot manufacturing campus Large Manufacturer of the Year Award on behalf of in Ladson, S.C., are among the most talented and dedicated Force Protection Inc. in the world. It is these employees who conceive many of our manufacturing and technology improvements and a myriad of outreach programs, like Think TBI, a joint venture program between Force Protection and the Medical University of South Carolina (MUSC) dedicated to preventing Traumatic Brain Injury (TBI) and improving survivability. We are pleased to be the 2010 South Carolina Large Manufacturer of the Year, recognizing our quality improvement efforts, quality of life programs, sound environmental practices, local community and economic development involvement, commitment to education and workforce development and overall effectiveness. We applaud our team members for their daily focus on making Force Protection, South Carolina and the communities in which we reside better places to work, live and grow. And most importantly, we thank the brave men and women of our armed forces who risk their lives daily to provide us with the security and freedom to do our jobs at home.

By Tish Anderson

he South Carolina Chamber of Commerce has once again partnered with the publishers of SCBIZ magazine to produce the sixth annual Best Places to Work in South Carolina program. The initiative is dedicated to identifying and recognizing South Carolina’s most innovative and top-notch employers.

Representatives of Barling Bay LLC, 2010 Best Places to Work in South Carolina – Small/Medium Employer.

The South Carolina Chamber of Commerce is seeking nominations for the South Carolina Manufacturer of the Year awards. The deadline for entries is June 30 at 5:00 p.m. Nominees will be invited to the state’s premier manufacturing recognition event in which the top small, medium and large manufacturing companies will be recognized for their manufacturing excellence, economic impact, commitment to workforce development and community stewardship. Companies will be honored during an awards luncheon September 13 at the Embassy Suites in Columbia. To download the application, visit www.scchamber.net, and click on “Events & Seminars” and “Applications & Recognition.”

The 2010 Best Place to Work in South Carolina – Small/Medium Employer, Barling Bay LLC, is one of the many businesses that has experienced the benefits of being honored by the program. Located in North Charleston, Barling Bay provides solutions to federal government and private sector customers, with a primary focus on systems engineering, information assurance/cyber security, research and development, program management and administration. The company also has a newly emerging energy practice. Barling Bay’s employees enjoy many benefits, including annual cash bonus pools based on the overall performance of the company, annual individual performance based bonuses, a career ladder progression structure for varied professional employees, medical insurance coverage for domestic partners and an onsite exercise room. “The designation has excited our customers and business associates, even business associates outside of South Carolina with connections to the state. For example, one of our biggest customers nominated us for the 2011 Small Business Administration Small Business Prime Contractor of the Year,” said Marsha L. Hassell, director of corporate communications at Barling Bay. “The pride factor has been incredible! Employees speak with a great sense of satisfaction as they talk to customers, family and friends about the company.” Companies selected as Best Places to Work will be recognized during an awards dinner on October 4 at the Embassy Suites Hotel in Columbia. The deadline to apply is May 27. Visit www. bestplacestoworksc.com for more information or to apply.

For additional information regarding South Carolina Chamber awards programs, please contact Tish Anderson, associate vice president of programs and events, at (803) 255-2627 or Tish.Anderson@scchamber.net.

Tish Anderson is the associate vice president of programs and events at the South Carolina Chamber of Commerce.

Tommy Pruitt is senior communications director at Force Protection Inc.

Now accepting Best Places to Work applications

| S o u t h C a r o l i n a B u s i n e ss | M a y / J u n e 2 0 1 1

Congressional delegation working together to address critical issues

outh Carolina’s entire congressional delegation fielded a variety of questions from the business community at Washington Night in South Carolina, with the deepening of South Carolina’s port system and the U.S. deficit dominating the discussion. Held April 19 at the Columbia Metropolitan Convention Center, Washington Night, presented by Nutramax Laboratories Inc., enabled the close to 400 attendees to speak with congressional leaders in an open panel discussion moderated (L to R) Senator Lindsey Graham, Congressman Jim Clyburn and by David Stanton. U.S. Senators Lindsey Congressman Joe Wilson field questions. Graham and Jim DeMint as well as Congressmen Jim Clyburn, Jeff Duncan, Trey Gowdy, The panel, with a spirit of cooperation, assured the Mick Mulvaney, Tim Scott and Joe Wilson all participated. business community the deepening of the port is still a top Washington Night kicked off with a lively discussion priority. Congressman Scott called the port system an asset about what can be done to fix the country’s growing to not only South Carolina but also the nation. Senator deficit. Calling it the most serious issue we face as a nation, DeMint announced he is working closely with Senator Senator DeMint said the U.S. is borrowing 40 cents on Graham on several proposals that would provide funding. every dollar it spends. Congressman Scott said the nation Senator Graham said that once 2011 is squared away, must cut spending, grow the economy through serious he proposes putting money into an account that can be corporate tax reform, reform entitlements and increase accessed by the Army Corps of Engineers based on merit. confidence. Senator Graham said it makes no sense “I’d rather lose my job than lose the port,” said Graham. to raise the debt ceiling without substantial structural Other issues addressed by the panel included changes, while Congressman Mulvaney cautioned that if health care, the National Labor Relations Board (NLRB), Washington doesn’t do something, 2055 will be the year immigration reform, nuclear energy and education and every penny the country brings in will go to paying the debt. workforce development.

The Honorable Han Duk-soo, Korean ambassador to the U.S., addresses attendees.

(L to R) Congressman Tim Scott listens as Senator Jim DeMint responds to a question.

(L to R) Dr. Sonny White (Midlands Technical College), Jim Reynolds (Total Comfort Solutions) and George Acker (Duke Energy) listen to the panel.

Congressman Jeff Duncan (right) greets an attendee before the open panel session.

Senator Lindsey Graham chats with guests at the Washington Night reception.

Presenting Sponsor Nutramax Laboratories, Inc. Platinum AT&T BB & T

AFTER THE EVENT

>> AFTER THE EVENT

Gold ALCOA, Inc. BlueCross BlueShield of South Carolina The Capital Corporation Duke Energy Carolinas FUJIFILM Manufacturing U.S.A., Inc. Haynsworth Sinkler Boyd P.A. Michelin North America MWV MeadWestvaco Palmetto Health Savannah River Nuclear Solutions SCANA Corporation Silver BMW Manufacturing Co., LLC Bridgestone Americas Colonial Life Cox Industries, Inc. Eastman Chemical Company International Paper Lexington Medical Center Liberty Life Insurance Myrtle Beach Area Chamber of Commerce Nelson Mullins Riley & Scarborough LLP Nestle Prepared Foods Company Ogletree, Deakins, Nash, Smoak & Stewart, P.C. (Greenville, Columbia, Charleston Offices) Progress Energy Santee Cooper Sonoco Products Company South Carolina Farm Bureau Federation The Electric Cooperatives of SC, Inc. Waste Management of South Carolina Bronze Bank of America Carolinas AGC, Inc. DuPont Kevlar - Cooper River Manufacturing Facility Hitachi Electronic Devices USA, Inc. Honda of South Carolina Mfg., Inc. Kyle Michel Law Firm McMillan Pazdan Smith Architecture Midlands Technical College Milliken & Company S.C. SHRM State Council SC Credit Union League & Affiliates SC Telecommunications Association Southeastern Insurance Consultants Supplemental Health Care The Timken Company Time Warner Cable Total Comfort Solutions Contributors Greater Aiken Chamber of Commerce Cherokee County Chamber of Commerce Childs & Halligan, P.A. Globalpundits Inc. KnowledgeEconomy.com North Myrtle Beach Chamber of Commerce Orangeburg County Chamber of Commerce Tri-County Regional Chamber of Commerce

s c c h a m b e r. n e t | M a y / J u n e 2 0 1 1 | S o u t h C a r o l i n a B u s i n e ss |

MEMBER NEWS

>> MEMBER NEWS

Boyd

Champion

Ellefson

Ellerbe

Eve r i n g

Gray

Harper

Hartley

Hein

Jones

K e ff e r

Morrison

North

Parsons

Pug h

Reeves

Schneider

Sowell

Stepp

Ta n k e r s l e y

Compiled by Matthew Gregory (Send publicity photos to: matthew.gregory@scchamber.net.)

Jacklyn Abigail Donevant with Abacus Planning Group Inc. has completed all requirements for the CFP® credential, which includes three years of experience in the industry and passing the rigorous twoday exam covering retirement planning, investments, estate planning, risk management and tax planning. Automation Engineering Corporation has announced the expansion of its existing operations in Greenville County with a $6.1 million investment that is expected to generate 78 new jobs over the next five years. The expansion will include research, development, design and manufacture of capital equipment to produce tubular products for the oil industry, a new market for the company. Bridgestone Corporation and Bridgestone Americas Inc. (BSAM) have elected Koki Takahashi, former vice chairman and chief financial officer, BSAM, chairman of the BSAM Board of Directors. Takahashi is taking on the board leadership position that has been held on an interim basis since Jan. 1, 2011 by Masaaki Tsuya, Bridgestone Corporation vice president, senior officer and member of the BSJ Board, as well as its chief risk management officer, chief human rights officer and officer responsible for corporate administration. The Cason Group has named Taren Hazelrigg annuities sales representative, Trevor Bowers, RHU, REBC individual medical representative and Gorden Fleming financial services representative for Georgia. Canada’s ambassador to the United States, Gary Doer, visited Clemson University in March to help launch the University’s new Canada Center. The center will support and coordinate Clemson’s collaborations with Canadian institutions and provide a framework for developing more extensive ties to America’s largest trading partner and closest ally. Colonial Life contributed more than $700,000 to local charitable organizations in 2010. The contributions included donations

to organizations selected by the company and matching gifts of employee contributions. In addition, employees volunteered more than 11,000 hours of time to their favorite causes. Dennis Corporation has been selected as a Free Enterprise Honoree by the U.S. Chamber of Commerce. Based on its entry for the Blue Ribbon Award, the Chamber recognized Dennis Corporation as a Free Enterprise Honoree, commending the firm for its strong business practices and contributions to the economy. Additionally, South Carolina’s District Office of the Small Business Administration (SBA) has named Dennis Corporation President Dan Dennis the SBA’s 2011 South Carolina Small Business Person of the Year. Ellis Lawhorne’s Breon C. M. Walker has been named co-chair of the Richland County Bar’s Young Lawyers Division. Walker is a member of the Ellis Lawhorne Litigation and Dispute Resolution Practice Group, where she focuses her practice on commercial litigation, motor vehicle liability, premises liability and product liability. Rita Cullum has been appointed to the University of South Carolina (USC) Educational Foundation Board, a prestigious organization that advises USC on its investments and other issues. Erwin-Penland (EP) has promoted Michael Johnson to senior account supervisor, Ashley Woods to senior art director and Jennifer Chew to senior account supervisor. EP has hired Kate McHugh as public relations account executive, Josh Greeley as experiential branding project manager and Sara Haulik as junior account executive. Gaye Tankersley has been appointed president of Food Service Inc. in Lexington, S.C. Tankersley has been a valued part of the company since 1989. Rod Miranda has joined the company as director of cafeteria and catering services, and Janet Risner has been hired as controller. Richard W. Riley, chair of the Furman University Board of Trustees, has announced

| S o u t h C a r o l i n a B u s i n e ss | M a y / J u n e 2 0 1 1

five new members will join the board this summer. The new trustees are Jolley Bruce Christman of Philadelphia, Pa.; Douglas K. Freeman of Jacksonville, Fla.; E. Erwin Maddrey II of Greenville, S.C.; Ronald A. Malone of Travelers Rest, S.C.; and Kathleen C. McKinney of Greenville, S.C. In addition, the Center for Corporate and Professional Development at Furman University has received a $50,000 grant from the Bank of America Charitable Foundation to support a new program that is expected to positively impact the financial bottom line of small businesses and their local communities and help promote a green economy in South Carolina.

Bowers, Eric Elkins and Tommy Suggs have been recognized as executive brokers at KeenanSuggs. The executive broker designation encompasses individual production, product/service awareness and team leadership.

Gallivan, White and Boyd P.A. has opened an office in Charlotte, and J. Jared Simms has joined the firm as an associate. Firm shareholder Phillip E. Reeves has been invited to join the prestigious Council on Litigation Management. The Council is a nonpartisan alliance comprised of thousands of insurance companies, corporations, corporate counsel, litigation and risk managers, claims professionals and attorneys. Howard Boyd has been elected as chairman of the Greenville County United Way Board of Trustees.

The Lexington Medical Center (LMC) Board of Directors has welcomed Dr. Tripp Jones as its newest member. Dr. Jones is an oncologist who has worked at Lexington Medical since 1980. He served as the hospital’s chief of staff from 1986 to 1988. He was also chairman of the LMC Cancer Committee for 29 years.

Grubb & Ellis | Wilson Kibler has been named the 2010 Grubb & Ellis Affiliate of the Year. Anne S. Ellefson, managing director of Haynsworth Sinkler Boyd P.A., has received the first Lifetime Achievement award from CREW Upstate South Carolina. She also was honored with a 2011 Leadership in Law award from South Carolina Lawyers Weekly. CREW, the networking and business development organization for commercial real estate professional women, recognized Ellefson for her more than 30 years of legal experience in the real estate field. Tigerron A. (Tiger) Wells, a public finance lawyer at Haynsworth Sinkler Boyd P.A., has received the 2011 Jonathan Jasper Wright Award from the University of South Carolina’s Black Law Students Association (BLSA). Bob Graham, James Martin, Robbie

John R. Allard has joined the Charleston office of Kestrel Horizons LLC, a South Carolinabased engineering firm. Allard specializes in air dispersion modeling, developing software and other air quality tools. Ryan T. Waring has joined Kestrel Horizons, where he will assist Kestrel’s engineers with drawing, designing, permitting, bidding and field activities.

McKay, Cauthen, Settana & Stubley P.A. has announced the opening of McKay Public Affairs. The firm has selected Ashley S. Hunter to lead the new venture. Hunter, a government affairs executive for the past nine years, will serve as the new information liaison between McKay clients, members of the media and the various branches of state and local government. Erin M. Farrell has been selected by the South Carolina Bar Association to serve on the Children’s Law Committee. Milliken & Company, a privately-held, innovation-based company serving textile, chemical and floor covering markets, has been recognized by the Ethisphere Institute as one of the 2011 World’s Most Ethical Companies. Out of a record number of nominations for the award, Milliken secured a hard-earned spot on the list by going the extra mile and implementing upright business practices and initiatives that are instrumental to the company’s success, benefit the community and raise the bar for ethical standards within the industry. This is the fifth year Ethisphere, a think-tank dedicated to the creation,

Welcome, New Members

T h omasson

Watson

Wells

Wiggins

Winn

ASWA Inc. Summerville

Prescott Support Co. Myrtle Beach

Benefits Plus of Columbia Inc. Columbia

Schnabel Engineering Consultants Inc. West Columbia

Bennettsville Printing LLC Bennettsville

Emerson Gower (left) presents The Honorable Hugh Leatherman (right) with the 19th Annual Townes Award.

On March 9, Senator Hugh Leatherman was honored as the 19th recipient of the prestigious Townes Award at the South Carolina Governor’s School for Science and Mathematics’ (GSSM) annual Townes Award Dinner in Columbia, S.C. The Townes Award honors individuals or institutions that have gone above and beyond to raise the quality of science, technology, engineering and math (STEM) education in the Palmetto State. GSSM also unveiled The Wave, a grassroots PR campaign designed to build awareness, energy and momentum around the study of STEM education in South Carolina.

Covers Direct Corporation Chesnee

Schweiger & Associates Strategic Management Consulting Elgin

DeWhit Inc. Simpsonville

Southern Weaving Company Greenville

General Wholesale Distributors Inc. Greenville

StarChem LLC Wellford

G & P Trucking Co. Inc. Gaston Lee County Chamber of Commerce Bishopville McKay, Cauthen, Settana & Stubley P.A. -”The McKay Firm” Columbia

MEMBER NEWS

>> MEMBER NEWS

Strand-Tech Martin Inc. Summerville Trelleborg Sealing Solutions South North Charleston Tuscarora Yarns Inc. Mount Pleasant Watford Industry Inc. Kingstree

Metglas Inc. Conway Pacific Gateway Capital LLC Wong’s International Greenville

AFL associates representing the Fujikura Foundation presented a $13,000 grant to the Greenville Hospital System Children’s Hospital in support of psycho-social support programs for the BI-LO Charities Children’s Cancer Center. The funds will allow the center to continue teen and bereavement support groups and establish an adolescent support group for pre-teens.

advancement and sharing of best practices in business ethics, corporate social responsibility, anti-corruption and sustainability, has published the WME rankings, which appear in Ethisphere Magazine’s Q1 issue. Milliken has been listed all five years since the ranking’s inception. NAI Avant brokers brought home top awards at the 39th annual Central Carolina REALTORS® Association Circle of Excellence Commercial Division banquet. Paul Hartley

Jr., SIOR received the award as the 2010 Top Leasing Agent, making this his 20th year as the recipient. Jeff Hein, SIOR, Roger Winn and Bruce Harper, SIOR, received the award for 2010 Commercial Transaction of the Year. NAI Avant proudly recognizes the following Circle of Excellence recipients: Paul Hartley Jr., Jeff Hein, Nick Stomski, Mac Fanning, Ben Kelly, Cam Kreps, Rob Lapin, Macon Lovelace, Gerald Steele, Joe Walker and Roger Winn.

Monte N. Parsons has rejoined the staff of the South Carolina Chapter of The Nature Conservancy as senior associate director of philanthropy. Parsons works closely with Conservancy members and prospective members primarily in the Lowcountry of South Carolina. Eli Poliakoff, an attorney in the Charleston office of Nelson Mullins Riley & Scarborough LLP, has been appointed to the Harvard Alumni Association Board of Directors. The association represents more than 360,000 Harvard University alumni worldwide. Nelson Mullins partners Stephen G. Morrison and Richard B. North Jr. have been recognized for excellence in client services in the BTI Client Service All-Star Team for Law Firms 2011. Nexsen Pruet has earned designation as a Midlands Green Business for 2011. The firm also earned the designation in 2009 and 2010. The City of Columbia Green Business Program is a voluntary effort to encourage businesses to take proactive steps to improve

their environmental record while improving their bottom-line. George Scott has been appointed to leadership positions for the International Legal Fraternity of Phi Delta Phi. He is now province president of North Carolina and assistant province president of South Carolina and Georgia. Scott is an associate with the firm’s Corporate Group in Columbia. Parker Poe Adams & Bernstein LLP has appointed Sidney J. Evering II as its new director of diversity. Evering will take on this role previously held by Kristi Kessler Walters, who was just named the firm’s first-ever chief talent officer. Carol D. Wiggins, RN, BSN, MHA has joined PHT Services Ltd. as a risk management consultant. George C. Beighley, a medical malpractice attorney with Richardson, Plowden & Robinson P.A., has been appointed to the Medical University of South Carolina’s (MUSC) Board of Visitors, which provides

s c c h a m b e r. n e t | M a y / J u n e 2 0 1 1 | S o u t h C a r o l i n a B u s i n e ss |

>> MEMBER NEWS insight as to how MUSC might best meet the education and health care needs of South Carolina. Steven J. Pugh, a managing shareholder and attorney with the firm, has been recognized with a 2011 Leadership in Law Award, given by South Carolina Lawyers Weekly. Frank Ellerbe, a shareholder with Robinson McFadden, has been named Groundbreaking Lawyer of 2010 by Public Utilities Fortnightly for his work in utility litigation and state regulation. Roper St. Francis Healthcare (RSFH) is pleased to announce that James “Reilly” Keffer, DO, has joined Roper St. Francis Physician Partners. Dr. Keffer, who is board certified in Physical Medicine and Rehabilitation (PM&R) with a sub-specialty in pain management, specializes in non-operative outpatient spine rehabilitation of patients with neck and back pain, fluoroscopic-guided spinal injections, non-operative musculoskeletal care and electrodiagnostic medicine. In addition, Bon Secours St. Francis Hospital has opened a new sleep lab on its second floor and is now accepting patients with chronic sleep-related problems. Patrick Thomasson, CPA has joined the Greenville office of Scott and Company LLP as upstate manager, assurance and advisory services. Select Health of South Carolina has announced its Medicaid health plan, First Choice, has earned an Excellent Accreditation rating from the National Committee for Quality Assurance (NCQA). First Choice received an Excellent Accreditation rating because its service and clinical quality met or exceeded NCQA’s rigorous requirements for consumer protection and quality performance. The South Carolina Forestry Association (SCFA) has named Cam Crawford the organization’s next president, effective June 1. As president, he will be responsible for operations, planning, finance/budget, policies and communications as well as a variety of other strategic objectives. Robert R. “Bob” Scott, current president, announced his retirement, effective June 1. His departure

will mark the end of his 42-year career as the Association’s first president. He is currently the longest serving president of any forestry association in the U.S. Sowell Gray Stepp & Laffitte LLC will be rated among the top law firms in South Carolina when the Chambers USA’s 2011 edition of America’s Leading Lawyers for Business is released in June. Additionally, four Sowell Gray members – Betsy Gray, Biff Sowell, Bobby Stepp and Cal Watson – will be recognized as Leaders in their Fields. The guide recommends all four in the category of Litigation: General Commercial. Spartanburg Water has hired Tracy J. Champion as accounting manager. In her new role, Champion is responsible for planning and directing the daily activities of the accounting functions for the Spartanburg Sanitary Sewer District and supervising the supporting staff. She also will direct the activities of the Purchasing/ Inventory Control and Fleet Services sections. Spartanburg Water General Manager Sue Schneider presented a technical paper during the South Carolina Environmental Conference. Schneider’s paper, Complex Decision Making: A Century of Water Supply Planning, discussed the long-term water supply planning that Spartanburg Water performs as a part of its business planning activities. Michelle Clayton with Turner Padget’s Columbia office has been selected to participate in the 2011 South Carolina Bar’s Leadership Academy, a highly selective program designed to equip young lawyers in practice from three to 10 years with networking opportunities, professionalism training, community awareness and other skills necessary to give back to the profession and position themselves as leaders in the community. VC3 has been named to the inaugural CRN Tech Elite 250. The Tech Elite 250 serves as the industry’s definitive list of value-added resellers (VARs) with both deep technical expertise and premier certifications.

Submitting Publicity Photos to South Carolina Business South Carolina Business magazine is printed on sheet-fed offset presses at 175 line screen (350 dpi). Publicity photography must meet the following parameters to be considered for publication. • Headshots should be a minimum of 3” x 5” (1050 pixels X 1750 pixels) and shot against a neutral background. Please do not use backgrounds that are in primary colors, such as red, blue, yellow or white. • Event photography should be a minimum of 5” x 7” (1750 pixels X 2450 pixels). If you are shooting snapshots for publication, set your digital camera settings to the highest resolution possible.

Events Calendar

ADVERTISER INDEX

May 12, 2011 Legislative Agenda Task Force Columbia

Agape Senior Care..........................................21

May 13, 2011 Diversity Council Columbia May 15–17, 2011 Human Resources Conference Myrtle Beach May 18, 2011 Quality Forum Columbia Charleston Chamber Leadership Columbia May 24, 2011 Chamber Tourism Committee Columbia May 26, 2011 Tax Committee Columbia June 3, 2011 Environmental Technical Committee Columbia June 9, 2011 Legislative Agenda Task Force Columbia June 14, 2011 Lowcountry Membership Reception North Charleston June 15, 2011 Quality Forum Columbia June 16, 2011 Executive Committee Aiken June 16–17, 2011 Board Planning Retreat Aiken June 17, 2011 Board of Directors meeting Aiken June 21, 2011 Safety, Health & Security Committee Columbia June 23, 2011 Tax Committee Columbia Excellence in Education Council Columbia

• Do not submit TIF files or apply any image compression. Do not submit photography used on or captured from a website. • Submit all photography as RGB or grayscale JPEGs. • Send all photography to: matthew.gregory@scchamber.net. Include the company name as the first word in the file name.

| S o u t h C a r o l i n a B u s i n e ss | M a y / J u n e 2 0 1 1

FOR ADDITIONAL EVENTS LOG ON TO WWW.SCCHAMBER.NET

Alliance.............................................................8 BlueCross BlueShield...............Inside Front Cover Dixon Hughes Goodman................................15 Greenville Hospital System..............................12 Haynsworth Sinkler Boyd, P.A...........................1 HR Conference................................................27 March of Dimes..............................................20 Membership Receptions.................................27 NBSC..............................................................21 Palmetto Health................................ Back Cover Phoenix Care Systems.....................................25 Santee Cooper................................................14 SCILG..............................................................25 Self Regional...................................................19 Sonoco..............................................................4 Spartanburg Regional Healthcare.....................6

When your message needs to reach the largest audience, there is only one choice: SOUTH CAROLINA BUSINESS. The magazine of choice for South Carolina’s top executives.

Call Deidre Macklen at 803.318.3923.

Your Business Advocates R

“

Our concerns are our members’ concerns. Strong business advocacy ensures South Carolina becomes more globally competitive.

”

— Otis Rawl, President and CEO of the South Carolina Chamber of Commerce

Founded in 1940, the South Carolina Chamber of Commerce is the Palmetto State’s largest statewide broad-based business and industry association and voice of business at the State House.

Agenda, is based on feedback from the more than 18,000 businesses the Chamber represents.

Over the past four years alone, the return on investment for South Carolina The South Carolina Chamber keeps a close businesses has been $2 billion through eye and constant presence at the State legislative advocacy on issues like workers’ House, engaging legislators in meaningful compensation reform, Employment dialogue while working to get positive Security Commission reform, port business legislation passed and halting restructuring and more. dangerous anti-business bills. The business community’s annual list of legislative priorities, the Competitiveness