November 2015 Tri-Cities Business Journal by The Business Journal of Tri-Cities TN/VA

Accepting the Challenge Bristolâ&#x20AC;&#x2122;s Emphasis on Manufacturing

Plus:

Hopping on the Craft Beer Wagon

and

Q & A: Bart Hove NOVEMBER 2015

Touring students from Virginia High and Tennessee High observe Ashley Roberts, a cell operator at Bristol Compressors.

$3.00 Volume 28 Number 3

Photo by Scott Robertson

bjournal.com | November 2015 | The Business Journal of Tri-Cities TN/VA

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The Business Journal of Tri-Cities TN/VA | November 2015 | bjournal.com

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INSIDE THIS EDITION

Business Journal The

| COVER STORY

10 Bristol answers the challenge

of Tri-Cities Tennessee/Virgina

Office 423.854.0140

When a leading local manufacturer told the Bristol Chamber he needed a larger, better workforce, the community picked up the gauntlet.

Publisher William R. Derby bderby@bjournal.com 423.979.1300

Students from Bristol, Va., and Tenn., high schools watch Ashley Roberts go about her work at Bristol Compressors. Photo by Scott Robertson

Co-Publisher Jeff Derby jderby@bjournal.com 423.306.0104

| FEATURES

Springing into action

Better accounting through addition

The Business Journal Q&A: Bart Hove

FWG Special Springs aims to bring jobs and capital investment into the region

Managing Editor Scott Robertson srobertson@bjournal.com 423.767.4904 Associate Editor Jeff Keeling jkeeling@bjournal.com 423.773.6438

Two major players in the Tri-Cities CPA market come together

The CEO of Wellmont Health Systems talks about adding another hospital into the merger mix, and what the timeline looks like now

20 Eastman’s EPS rocket ride continues

The Kingsport-based chemical company continues to increase its value to shareholders

21 MSHA Exec: The rise of the accountable care community

Senior VP says the new company will help communities create better health outcomes through collaboration

22 Johnson City’s downtown renaissance: has it reached the tipping point? Is the recent downtown boom sustainable, or is there work yet to be done?

26 ECU beside ETSU

Staff Writer Sarah Colson news@bjournal.com 423.854.0140 Director of Business Development and Marketing Jeff Williams jwilliams@bjournal.com 423.202.2240 Sales & Marketing Robin Williams rwilliams@bjournal.com 423.794.6938 Creative Derby Publishing, LLC Graphics Director / Judd Shaw jshaw@bjournal.com 423.833.2726

Regional credit union continues to support the regional university, this time on the gridiron

27 The presidential medallion

The Business Journal of Tri-Cities Tennessee/Virginia

Virginia Highlands Community College installs its new president

28 Replacing CSX

When the railroad company announced plans to shutter Unicoi County operations, a state legislator called in the cavalry

Periodicals postage paid at Johnson City, Tenn. and additional offices.

| DEPARTMENTS

7 From the Editor

29 Character Study

33 Awards & Achievements

8 Photo Feature:

30 Trends

35 Med Briefs

JA Golf Funraiser

31 Residential Real Estate

38 The Last Word

9 FYI

32 On the Move

The Business Journal of Tri-Cities TN/VA | November 2015 | bjournal.com

POSTMASTER:

Please send addresses to

Business Journal of Tri-Cities, TN/VA 1114 Sunset Drive, Suite 2 Johnson City, TN 37604 Subscription per year $35.

We We are are making making aa difference difference locally, locally, globally. globally. Change begins locally. Eastman has a strong history of supporting the communities in which we operate. We set our focus on Change begins locally. Eastman has a strong history of supporting the communities in which we operate. We set our focus on the right projects in the right places with the right partners. Eastman’s Corporate Social Responsibility team is dedicated to the right projects in the right places with the right partners. Eastman’s Corporate Social Responsibility team is dedicated to embedding the company’s societal commitments globally while working in partnership with organizations and key stakeholders embedding the company’s societal commitments globally while working in partnership with organizations and key stakeholders with shared values and complementary strengths. with shared values and complementary strengths.

Estonia apprenticeship programs Estonia apprenticeship programs

United Way International Initiative United Way International Initiative

Eastman Specialties at the Kohtla-Järve, Eastman Specialties at the Kohtla-Järve, Estonia, site partners with Eesti Töötukassa, an Estonia, site partners with Eesti Töötukassa, an Estonian unemployment agency that provides Estonian unemployment agency that provides employment and apprenticeship opportunities employment and apprenticeship opportunities for agency participants. Eastman provides trialfor agency participants. Eastman provides trialbasis employment and additional training while basis employment and additional training while participants are being considered for available participants are being considered for available company positions. company positions. Eastman also partners with TTÜ Virumaa Eastman also partners with TTÜ Virumaa Kolledž (Tallinn University of Technology: Kolledž (Tallinn University of Technology: Virumaa College) to provide apprenticeships to Virumaa College) to provide apprenticeships to students working on their university practicums. students working on their university practicums. Students receive scholarship money for their Students receive scholarship money for their collaborative efforts after completion of collaborative efforts after completion of program. program.

Eastman collaborates with the United Way of Miami-Dade to improve Eastman collaborates with the United Way of Miami-Dade to improve financial stability, health, and early childhood development in Latin financial stability, health, and early childhood development in Latin American countries where Eastman has a presence. Eastman supports American countries where Eastman has a presence. Eastman supports the Nacer Aprendiendo (Born Learning) program, a strategic project the Nacer Aprendiendo (Born Learning) program, a strategic project that strengthens early childhood education through teacher training that strengthens early childhood education through teacher training and innovative programs. The curriculum includes hands-on learning and innovative programs. The curriculum includes hands-on learning in the areas of math, science and the environment. Eastman’s support in the areas of math, science and the environment. Eastman’s support of the program currently impacts over 1,100 students in Mexico and is of the program currently impacts over 1,100 students in Mexico and is expanding rapidly. expanding rapidly. Eastman’s partnership with the global United Way organization enables Eastman’s partnership with the global United Way organization enables people to come together and bring real progress to communities. The people to come together and bring real progress to communities. The company’s dedication to support initiatives such as Nacer Aprendiendo company’s dedication to support initiatives such as Nacer Aprendiendo improves lives and creates positive change. improves lives and creates positive change.

To learn more, visit our website at www.Eastman.com To learn more, visit our website at www.Eastman.com EMN-GR-236 | 10/15 EMN-GR-236 | 10/15

bjournal.com | November 2015 | The Business Journal of Tri-Cities TN/VA

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| FROM THE EDITOR

A process is in place M

ountain States Health Alliance and Wellmont Health System have been, on the whole, pretty transparent about their merger plans. Media roundtables, public information sessions, a regularly updated website – all tools to inform and, it must be said, to avoid even the appearance of secrecy. There’s been only one major area where non-answers have been standard fare: how the efficiencies to be realized by elimination of unnecessary duplication of services will be managed. Then, last month, a tiny gleam of light appeared in that dim space. It came in a statement made by Tony Keck, a senior vice president at Mountain States Health Alliance. Speaking to around a dozen Johnson Citians at a public information session regarding the proposed MSHA-Wellmont merger, Keck said something that caught my attention. Before I repeat it, let me just say that up until now, every public statement I have seen or heard regarding the process of deciding how the newly merged company will be organized to maximize efficiencies has been along the lines of, “Well, we have some ideas, and we’re sure the other side has some ideas, but the Federal Trade Commission prevents us from discussing those in public or with each other directly while we are still competitors.” Every word of that is true. But do you honestly believe that two multi-million dollar companies are going to merge without each having very strong advance notions about what the other is thinking regarding the ways efficiencies will be managed once the deal closes? How could they even formulate their COPA applications otherwise? It’s an absurd notion. It’s obvious the two sides can protect themselves from entering into an agreement that could be fraught with misunderstanding. When asked about achieving efficiencies through the elimination of unnecessary duplication of services, Keck told the Johnson City meeting attendees there is, “a process in place.” That process does not yet include direct talks between the two systems on notions such as moving one program to one hospital and another to another, he said, but it does exist. So when we talked with Keck the next day about the concept of accountable care communities (a wholly laudable idea in which the new company will facilitate coordination of community efforts toward common health-related goals – see page 21), we asked about this process Keck had mentioned.

“We’re in a modeling phase right now,” Keck said. “The modeling lets us have ideas about where there are opportunities, and do we have more beds per capita than we need and so on. That can take us so far. That’s really what will drive our initial COPA applications and the commitments we make that we’ll be able to look at our utilization the best per thousand individuals. We’ll be able to look at our actual staff and number of beds and from that we can identify a lot of theoretical opportunity. “We’re also taking a look at our purchasing power across the systems. Are we using five different versions of the same medical device that if we switched to two or three we can get better prices? A lot of that is going on.” Keck then cautioned that the really important work on implementation would indeed come after closing, and would involve physicians, nurses, staff and board input – as everyone has been saying all along. “We’ll be able to say, ‘OK, we know these opportunities exist in terms of benchmarks of other well-functioning systems and so on – and we know for instance we’ve got two or something in a market – what’s the best strategy going forward?’” Keck continued. “Without being able to sit in a room and have those conversations, which we’re not really allowed to do legally because we’re still competitors, we’re not being specific about those things right now.” We asked Keck, with those limitations in mind, what conversations can be held together at this stage and what discussions must take place internally at each company. Here’s the transcript of his reply: Keck: “We actually have consultants that are helping us look at that. Some of that work is done in a black box where we can’t see what each other is doing – but consultants can –and then they’re able to give us some generalized results from that. That’s actually been a big part of our due diligence and preparation for the application is consultants working on things that we’re not allowed, under law, to see in each other’s businesses. That’s a pretty common approach, the black box approach.” Business Journal: So you’ve got a third party who can leave room for progress… Keck: “Yeah, without violating the competitive constraints.” Now we’re not here to put a halo on Tony Keck for telling more of the truth, or to vilify anyone else who hasn’t said as much in the past as Keck did here. We’re just pleased the process has reached a point at which the public is being trusted with a significant piece of new information that advances the common understanding beyond the previous party line.

bjournal.com | November 2015 | The Business Journal of Tri-Cities TN/VA

| FEATURES

Golfers tee it up for Junior Achievement E ighteen teams took part Oct. 23 in the Ninth Annual Tri-Cities Junior Achievement Golf Classic at Crockett Ridge. “It was an absolutely perfect day for golf,” said Cathy Salley, JA president. “The weather was beautiful and everyone had a great time.” The tournament, and the associated silent auction, raised around $15,000 to fund Junior Achievement classroom programs throughout the Tri-Cities. JA works to educate and inspire young people to value free enterprise, business and economics to improve the quality of their lives. Junior Achievement has been operating in the Tri-Cities for more than 49 years.

Ron Dykes, David Ford, Curtis Fullbright, and Eddie Woodward.

Charles Steagall, Gary Alber, Bill Stewart, and Phil Carriger.

The Business Journal of Tri-Cities TN/VA | November 2015 | bjournal.com

The silent auction associated with the tournament included everything from a mattress to restaurant gift cards, Dollywood passes, jewelry and clothing. Jeff Richardson’s Brock team was the tournament winner. Prizes were also given for longest drive (for both men and women), closest to the pin, and a putting contest. In the spirit of good fun, the highest scoring team also wins a prize: a free round of golf at Crockett Ridge to help them work on their game. Kel-San’s team took home that “honor” this year.

Eudoro Vander Beis, Joey Hilton, Jack Yeary, and Justin Crawford.

Darrell Shoemaker, Gary Evens, David Barger, and Brian McKee. Photos by Jeff Derby

| FYI

&Downs

Ups

A quick check of the conventional wisdom on who’s going what direction in Tri-Cities business

Armstrong Construction at 100 – As the firm continues to celebrate its first century in existence, Kingsport Alderman Mike McIntyre presented employees with a proclamation from the city honoring the company. Shown are (L-R): Isaac Webb, Leland Leonard, McIntyre, David Gonce, John Leonard, Shirley Churchwell, Ben McMurry and Janet Chapman. BMS, The Pinnacle Shopping Center, and kids from one to 92 – What is billed as the largest light show of its kind in the South got a positive jolt Oct. 29. That’s when representatives from Bristol Motor Speedway announced Speedway in Lights Powered by TVA had secured The Pinnacle shopping center as title sponsor through 2018. Pinnacle owner/developer Steve Johnson struck the Christmas Claudia Byrd Steve Johnson spirit tone in dsicussing sponsorship of the five-milelong light show, proceeds of which provide the bulk of Speedway Children’s Charities’ annual budget. “We cannot seek achievement of ourselves and forget about our community and the needs of others,” Johnson commented. Said Speedway Children’s Charities Executive Director Claudia Byrd, “All of us love seeing our guests’ eyes light up as they drive through the lights, and knowing this event does so much to benefit children in our area – it’s just the perfect experience to share during a season focused around giving.” The annual attraction opens at 6 p.m. Nov. 13. Putting politics ahead of business – When CSX pulled 300 jobs from Erwin, Tenn., some politicians rightly put the blame squarely on the Obama Administration. The coal industry is CSX’s biggest client, and coal revenues have dropped more than $1 billion in the last three years. These are more jobs lost directly to the war on coal. On the other side of the coin, some in the local GOP are trying to claim that if a Republican gets in the White House in 2016, the coal economy will come back. That train, as they say, has sailed. Power companies will not pay to re-refit for coal plants they have already paid to refit for natural gas. And the new gas-fired plants will not be refitted for coal. Pretending coal will rise again with Trump, Carson, Bush or Rubio is disingenuous, and could backfire if/when one of them wins the White House and fails to deliver a resurgence for American coal that was never going to happen in the first place. bjournal.com | November 2015 | The Business Journal of Tri-Cities TN/VA

| COVER STORY

Answering the challenge: Bristol’s manufacturing workforce focus By Scott Robertson

hen Bristol Compressors CEO Ed Gniewek told the Bristol Chamber of Commerce Board this summer that he perceived the qualified workforce in the region to be diminishing to the point where he would consider moving the company’s operations, the Chamber could have reacted in many different ways. Rather than choosing easy ways out like denial, blamestorming or hand-wringing, the Chamber’s reaction has been one of action. On Oct. 20, the Chamber had worked with Bristol Compressors to bring 30 seniors from Bristol, Tennessee High School and Bristol, Virginia High School to the company’s plant for a tour. Considering the Chamber had to juggle the schedules of two high schools and two companies (The Robinette Company also hosted the students that day) in addition to its own, the turnaround was pretty quick. Beth Rhinehart, Chamber president, said she had already been talking with local educators about promoting career paths other than four-year-college. “K-12 education is obviously the pipeline for any career choice, be it college or a trade,” she said. “We have more and more students who don’t necessarily see college as the end-all be-all. The push in K-12 to make college the end-all be-all is not working. There are other paths that are to be recognized and not judged. There’s been a lot of study done that suggests 60 percent of jobs will not require a fouryear degree.” Because the experiences children have from sixth through twelfth grade have a significant impact on their career path choices, Rhinehart said, it made sense to give them a first-hand experience with local manufacturers. “There were some kids who said, ‘Yeah, this is what I would like to do,’” Rhinehart said. “They might never have thought that if they had not had that experience.” Rick Nunley, executive director of human resources for Bristol Compressors welcomed the students to the plant before splitting them into small groups for the tour. He explained to them Bristol Compressors’ interest in hosting them. “We’re trying to go out and re-establish communication at the high school level that puts possibilities to individuals that might not have that desire to go into higher education, but might have the desire to enter the workforce right after high school,” Nunley told the students. “We want to reintroduce manufacturing down on the high school senior footprint and sometimes even below that. So you’re here today to look at 10 The Business Journal of Tri-Cities TN/VA | November 2015 | bjournal.com

Les Kestner of Bristol Compressors shows students how a compressor is made. Photos by Scott Robertson

possibilities for future labor. I don’t know what your ambitions are, but our ambition today is to expose you, to show you, and hopefully to have you walk away and realize an employer you might not even have thought about exists right here in your back yard, with the possibility of sound employment for years and years to come.” Nunley quantified the opportunity for the students, telling them they would not be the last tour group his firm hosts. “This is not a flavor of the month, because within five years we could see as many as 800 new requirements here at Bristol Compressors.” To put that in context, there are fewer than 800 students at Bristol, Virginia High right now. “You’re going into a 750,000-square-foot facility,” Nunley told the seniors. “We employ right at 900 employees. Our average tenure at this facility is 21 years. The 40-year plan still does exist here at Bristol Compressors.” The idea of spending one’s entire career with the same company was clearly something many students had not previously considered. The average American will have 13 different jobs over the course of his or her career. The Bristol Compressors tours were led by quality team leaders who could show students several different areas, pointing out the different jobs being done and giving details on what’s involved in each. After touring the facility, the students heard from David Rowe, vice president of manufacturing operations about the

Denny McClanahan shows students why a part works the way it does.

Brett Rodefer explains his job to a group of Virginia High students.

satisfaction to us in the a career in future as an manufacturing employer of offers. “Being choice. They able to say, ‘I need to see made that,’ what we need gives you and expect in a sense of terms of soft pride,” Rowe skills.” said. “You At the end need to know of the day, that manueveryone facturing is a seemed satisvalid industry fied with the to build a experience, future for Rhinehart you and your said. The family.” employers The Bristol saw enthusiCompressors astic young tour was actupotential ally the second employees. tour of the day The Chamber for the seniors, saw the two who visited groups comThe Robinette ing together, Paul Robinette has to wear hair and beard nets on the A group of students looks on as a Bristol Compressors Company in and “the employee uses a mallet to finesse a piece into place. Bristol, Tenn., Robinette Company production floor. students saw that morning. that manuCarolynn Ferrell, vice president for Students appeared enthused after facturing is not just what they always human resources and company relations the tours, peppering Paul Robinette, thought it was. There are different layers for Robinette said her company took a the company communications specialist to that environment.” different tack, showing how diverse the with questions about topics from quality No one is suggesting tours like field of manufacturing really is. “We control to sustainability. this are a panacea that will solve all of showed them our graphics department, Ferrell said her company would manufacturing’s human resources woes the mounting department, accounting welcome the opportunity to host more in Northeast Tennessee and Southwest and human resources. We told them students, perhaps from Sullivan County Virginia. But the gauntlet has been about all the different jobs that make this high schools. “We would like for students picked up. company run.” to get to know us better so they will look bjournal.com | November 2015 | The Business Journal of Tri-Cities TN/VA

| FEATURES

‘Soft landing’ speeds German springmaker’s transition to states By Jeff Keeling It took FWG Special Springs roughly a valve companies need plenty of springs for quarter century to make its first foray into their products. North America. Since the Grevenbroich, “This was No. 1 on my CEO’s list of Germany manufacturer established a tiny customers to get,” Lilly said of the Emerbeachhead in Johnson City two years ago, son Deal. The Science Hill High School things have moved much more quickly – graduate, who also took his masters in so much so that the company has bought a transitional economics while in Germany, building and is preparing to manufacture said despite its decades of German hisstateside, ahead of schedule. tory, FWG was essentially like a startup In mid-2013, company founder company in the states. The company had Manfred Albrecht visited East Tennessee State University’s Innovation Lab. Albrecht had long dreamed of marketing FWG’s springs – used primarily in valves for waterworks, oil and gas rigs, the nuclear industry and other types of process management – in the western hemisphere. In 2011, Albrecht connected with Rainer Heumann, who at the time was working for the state of Tennessee trying to recruit European businesses. Heumann introduced him to Alan Bridwell, director of the Northeast Tennessee Valley Regional Industrial Development Association, who quickly convinced Albrecht he should check out the Tri-Cities. Those connections led Albrecht and other company leaders to the I-Lab, just as Director Dr. Audrey Depelteau was working toward certification in the FWG’s man in the states, Ryan Lilly, with some of the German company’s products. international “soft landings” program. Photo by Jeff Keeling With the help of Dr. Jon Smith, director of ETSU’s Bureau of Business and Economic Research – Smith himself had a small list of customers from European a longstanding academic connection with operations over the past 35 years and a German university – Depelteau worked targeted some of those, but beyond that to steer FWG execs to the right folks for the work involved a lot of cold calls. everything from language translation and The yield includes a pair of threepayroll services to legal incorporation and year contracts – including the Emerson employee recruitment. deal – worth about a half million dollars Fast forward two years, and Ryan annually. Along with other prospects, it’s Lilly, a 20-something UT graduate with enough to have spurred FWG to buy a degrees in German and world business, building and move toward a small level of is FWG’s man on the ground in Johnson production. City. Lilly showed off FWG’s still-devel The company’s in 18,000 square feet oping digs in late October, where boxes on Rolling Hills Drive at the foot of Buffalo of product await shipping to Emerson Mountain and is using just half of it at Process Management in Mexico. Emerson this point. Over the next few months, a is the parent company for the world’s plant manager and engineering folks from largest array of valve companies, and those Germany will arrive to set up a couple of 12 The Business Journal of Tri-Cities TN/VA | November 2015 | bjournal.com

small automatic spring making machines. “It really takes just one or two people to man those, but when we start getting our cold-coiling machines over here, we’ll bump employment up to six, 10, 15,” Lilly said. A big reason FWG is investing in stateside production is the cost of shipping that occurs not once, but in many cases twice, in order to deliver products to North and South American customers. A number of the metals FWG purchases for its European manufacturing actually come from Pennsylvania, including the alloys inconel family and hastelloy, which have ultra-high heat tolerances and corrosion resistance. “They were looking for long-term contracts like the ones we have now that could justify opening up manufacturing operations here, so we can start buying cheaper raw materials and cut out the extra shipping time and cost,” Lilly said. The operation seems small, but Lilly said FWG makes most of its springs to order for customers. The most important criteria are the spring rate (strength), length and width. From there, the buyers typically provide FWG, with its expertise, some leeway to deliver high performance at a competitive cost. From here, Lilly said, it’s about continuing to gain exposure and market share in North and South America. But with raw materials more economically available here, it’s not outside the realm of possibility the company could even manufacture some product for the European and Asian markets here, Lilly said. “(Albrecht) is definitely looking forward to buying those materials here and being able to manufacture here,” Lilly said. “Our timetable depends on how fast we get new contracts (another big advance was a December 2014 long-term deal with Zurn of Paso Robles, Calif.). We need a little bit of exposure. We need to say, ‘we’re here now, we have a warehouse where we can keep your springs and deliver them to you on a two-day notice.’”

| FEATURES

Dent K. Burk Associates joining Brown Edwards Two of the best-known names in accounting in the Tri-Cities market are coming together. Dent K. Burk Associates announced in late October the firm plans to join into Brown Edwards & Co., effective Nov. 1. “This merger positions us to provide a greater depth of expertise and resources to serve the needs of our clients and strengthen Brown Edwards’ position as the largest independent certified public accounting firm in our geographic footprint,” said Don Pellillo, managing partner of Brown Edwards. “More importantly, we are adding well-respected partners and associates whom we have worked with over many years, all of whom have a similar client-centric approach to helping our clients achieve their goals.” Following the union of the two firms, Brown Edwards will have nearly 300

Stan Bowles leads Brown Edwards’ Bristol office. File photo.

associates spread through nine offices in three states. Brown Edwards will operate in Blacksburg, Bristol, Grundy, Harrisonburg, Lynchburg, Roanoke and Wytheville in Virginia; Charleston and Bluefield in West Virginia and Kingsport, Tennessee. Lee Hill, president of Dent K. Burk

Associates, said, “We are pleased to become part of a firm that shares our business vision and approach to client services. The joining of our two firms, who are committed to providing excellent service with honesty and integrity, is a perfect fit and a tremendous asset to the Tri-Cities area.”

bjournal.com | November 2015 | The Business Journal of Tri-Cities TN/VA

14 The Business Journal of Tri-Cities TN/VA | November 2015 | bjournal.com

| FEATURES

The Business Journal Q&A: Bart Hove President & CEO, Wellmont Health System The Business Journal: Thanks for taking the time to speak with us. Let’s just begin with an overview of where Wellmont stands in the merger process at this point.

we constantly give updates, whether it’s on our webpage or the Chambers of Commerce meetings or any other venues we’re asked to go to provide those updates to keep our community informed of the progress that Bart Hove: Since our April announcement, we’re making. In the meantime, we’ve had a lot of work has taken place. One of the first the discussion groups where meetings have pieces of business associated with that was been held in all of the communities that to form our joint board task force and our we’re serving now to gain input, particularly integration council, which you’ve heard a lot in four particular areas (Mental Health & of the descriptions of the makeup of those Addiction, Healthy Children & Families, two groups. The integration council is really Population Health & Healthy Communiresponsible for doing a lot of the leg work ties, and Research & Academics), but also and overseeing the consultants’ work that’s as a barometer for what’s going on in the going on in the area of cultural assessments communities and listening to any questions board, due diligence, cost savings opportuni- or concerns that are popping up. ties and validations of those. And so they For the most part it’s been very quiet report to the joint board task force which is on the opposition front. The insurance receiving the information and also providing companies in our initial meetings with them guidance back to the integration council of were receptive to the concept and the idea further clarification on work that needs to be and expressed a willingness to work with us. done. That’s been ongoing since maybe May. In the new environment that’s being created We have reviewed the emergency rules across the country in health care, and you’ve that were put out by the state of Tennessee heard us talk about the pay for value vs. payand had discussions with the commoning for volume, structuring some programs wealth of Virginia on the preliminary rules that are beneficial to the patient for keeping that they’re establishing for our public them healthy, spending less dollars for their advantage agreement in that state. We filed health and really trying to convert our whole a letter of intent Sept. 15 in both states incountry into a new approach or a new focus dicating that we would apply for Certificate on health care. So part of the importance of of Public Advantage in both states. There’s our relationship going forward is to focus a 45-day waiting period after that filing in on those types of areas that we believe Tennessee. We have used that 45-day period can really be affected by our organizations to begin the draft development of the COPA coming together and providing those types for Tennessee and the language in both of services in a different way and more states is fairly similar although not exactly cohesive way using the community agencies so. We’re using the same process in Virginia that exist as well and partnering all across and we’ll modify that slightly based upon the continuum. Interesting enough, places the regulations that they ultimately settle all across the country are looking at similar on. types of approaches to converting their health systems or hospitals to deal with this BJ: What are you hearing from the various changing evolution of health care delivery. constituencies during the waiting period? Back to your question, the support that What have been the biggest concerns of the we’ve been receiving has been really positive various parties from payers to physicians from our communities. For the most part, to the business community and the general the feedback from businesses, from the public, and how are you addressing them? insurance companies, from the individual consumers and most of the physicians has BH: Well, also along those lines of course been very positive along the lines of what

we’re trying to do. It does raise questions in peoples’ minds about the unknown—what is this really going to be like and how is it going to work and function – so it’s really important for us to try to address those questions when they come up or in the presentations that we have in community groups. We always try and make sure we have time for questions at the end of our presentations just to answer anything that might come up. BJ: Looking at the rules put out by the states, was there anything that struck you as more stringent than you originally thought? BH: Not particularly, although the devil’s in the details, as the old saying goes, and I think that what may be a practical exercise will be once we file our application. Their request for more details – certainly the state has a right and an opportunity to do that – I think that is where we may get into some other areas that maybe we didn’t expound upon in sufficient detail to meet the inquiry of the state. The original list of questions and statements were not really any kind of surprise to us and we have had the opportunity to comment in both states on those regulations and we believe that the states listened openly to comments that we wanted to file related to their regulations to begin with. There really wasn’t a whole lot of differential between our comments back to the state after the regulations were proposed. BJ: For folks who are just coming into this discussion a few months into the process, when you say ‘the states,’ what bodies are you going to be working through to hammer out all these details with both Virginia and Tennessee? BH: Well they are a little different because in Virginia, the legislation that was passed giving us the public advantage opportunity SEE Q&A, 16

bjournal.com | November 2015 | The Business Journal of Tri-Cities TN/VA

| FEATURES become reengaged with Wellmont. Indeed, once the strategy didn’t look like it there is just for southwest Virginia. So the was going to play out to work something out Health Authority Group was created to over- with Laughlin in the Greeneville market, see the work and the process of the public Adventist talked with us about becoming advantage relationship. They will report to involved at a different level again with the commissioner of health in Virginia and the Takoma facility. So we had several ultimately the attorney general is the one conversations with them about what that that’s charged with overseeing and monitor- relationship would look like. Would it be ing the activity associated with the public a partnership like we had before or would advantage. it be 100 percent ownership? We basically In Tennessee it’s a statewide legislative process that we’re experiencing and the commissioner of health is charged with doing a lot of the work and working with the attorney general in Tennessee to oversee the effectiveness of the COPA regulations and the parameters with which we’re being asked to operate. Q&A, CONTINUED

BJ: When we sat down for the roundtable discussion the day you announced plans to merge, one of the questions we didn’t ask, and we’ve been kicking ourselves for not asking, was, ‘So Takoma is out of this and gone forever, right?’ (Ed. note: Wellmont is in the process of acquiring Takoma Community Hospital from Adventist, with whom it at one time partnered to run Takoma, before leaving that partnership, only to return now to acquire Takoma completely). How has the reinsertion of Takoma into Wellmont affected Wellmont and the merger? BH: Back in 2014, June of 2014, after a lot of discussion, the two health systems decided that it would be in the best interest of Takoma and the community in Greeneville to have one owner rather than two. So we elected to step out and Adventist elected to pick up Takoma 100 percent. They actually were trying to work through their own longrange strategy in the Greeneville market with Takoma, (Ed. Note: off the record rumors of a Takoma merger with, or a sale to Laughlin Memorial Hospital were, for a time, rampant) and they did have some ongoing discussions with Laughlin at the time. When it was apparent that that strategy was not going to be successful for the Greeneville market, in part of the document that was put together for us to bow out of Takoma there was language that said if it appeared that a more regional owner would be better suited to work with the facility rather than Adventist, which is a national party, then there was the opportunity for the hospital to

came to the conclusion that it would work best if it were 100 percent ownership and the feeling was that a local ownership would be better than a relationship from afar. That was the deal that we struck at that time and as things go, we’ve been working through that process to get to a point where we could close the transaction. We’re making progress albeit ever so slowly in that arena. BJ: Do you have an estimated date on which Takoma will become a part of Wellmont fully? BH: Originally we had a target date of November. That target date is very close to being upon us and we’re not close to making that transaction occur. I would say for a host of different reasons, that transaction is slipping in time, much like we had some earlier goals with our merger and targets we wanted to hit and it’s taken a month or two

16 The Business Journal of Tri-Cities TN/VA | November 2015 | bjournal.com

or a little bit longer than we had anticipated. So we’re behind the November transition date. BJ: Do you remain confident it will close? BH: Yes. BJ: How does the fact that as the two entities, Wellmont and Mountain States are merging, one of them is adding an asset affect the merger? BH: It really hasn’t. We disclosed early on when it appeared to us, even before we had a final deal with Takoma, that just out of an awareness it looked like that facility would become part of the Wellmont Health System and therefore be part of the COPA application going forward. Interestingly enough, the attorney general in Tennessee is very familiar with our relationship with Takoma and when we talked with him about that transaction and it being a little bit nebulous about when it would happen, it didn’t cause him any concern at all. He was aware of the previous year’s separation of Wellmont from the hospital and knew fully well that there might be an opportunity for us to become involved again. It really hasn’t surprised Mountain States in this process either, as we’ve moved ahead at this time. Neither has it surprised the attorney general so it’s really not been an issue. The real issue is just the timing of, ‘Are they on board whenever the COPA’s granted or do we bring them in after the COPA’s granted as an amendment to the facility?’ BJ: As you do all this merger work, you remain Wellmont Health System, an individual and separate company from Mountain States, and the possibility exists that any number of things could go wrong and the merger not take place – or the merger could happen, but then break apart. So by law, you maintain total independence. Tell us about the process of competing with someone with whom you are merging? BH: (Smiles) It’s been a little interesting, I guess is a good word to use, as we recognize that we have to remain competitors until such time as we do have a green light from the state to merge our two institutions

together. That being the case, strategically when we look at our business plan and our evolution of care and delivery in our market place, we continue to aggressively pursue our plan as it is established now and to put ourselves in the most effective and competitive position whether we merge or don’t merge. We believe that the business strategy that we’re executing today is a solid business strategy as competitors or collectively together as partners. And because we are trying to evolve the process of the delivery of care and take a leading edge in that, we’re venturing into areas that here before have really not been well served or weak in our communities and that’s primarily on an ambulatory basis where our urgent care centers and our expansion of our cancer programs and cancer offices are having a very positive effect on the accessibility to care and in more appropriate settings or less costly settings, if you will. While that strategy has been ongoing, just recently we’ve had a first full-year in Kingsport and Bristol in those two urgent care centers and we opened up one in Lebanon and are soon to open up a few more urgent care centers, one in Rogersville and one in Bristol, Va., all really to put ourselves in a more convenient opportunity for our patients to access their healthcare needs. Again, we believe not only that but we’re on the verge of launching an e-visit type program for our primary care services within Wellmont Associates and the new technology allows you to do a lot of different things – the Epic implementation – that’s doing extremely well for us. It is continuing to provide benefits and just this e-visit approach is another opportunity where we can connect with the patient and be convenient with the patient so that they can access care when they need it.

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convenience at the ambulatory side and providing the education that’s necessary for people to live healthy lifestyles. Obviously in this region we are in a part of the country that has demonstrated historically very poor health habits. We have high incidents of obesity, cancer, drug abuse, mental health issues, stroke – moreso than the vast majority of the country experiences, and a lot of that is related to the lifestyles that people choose to live in our region. So we have an opportunity or a challenge to connect more directly with the patient to try to enhance in small increments their lifestyle choices so that

we can, over time, reduce the impact of the escalating costs of healthcare to our country as a whole while improving the health of the individual consumer. We’ve got to get a grip on the spending of health care across the country and we’ve got to broaden out the knowledge of healthy lifestyles to individuals all across the country. That is a major disruption to how healthcare has been delivered in the past. With that transition, it’s really a transition of economics, of consumer values, and trying to instill all of that at one time SEE Q&A, 18

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obviously needs to be done very slowly so that we don’t totally disrupt the economy of health care within the country. But at the same time we’ve got to do it at a pace that makes sufficient progress in a reasonably short period of time in order to start having the impact we need to have not only on the finances side but also on the consumer side and instilling those lifestyles. Part of the merger piece really is fundamentally geared towards improving the lifestyles of the folks in our region. We believe that because our region is somewhat isolated geographically-speaking, that we can connect, using the local resources that exist, that have been maybe less coordinated than we would like to see them all coordinated… a lot of the agencies do a wonderful job but they do it in such a silo, in such a small area that the agency next door to them might be doing the same thing but slightly different so the impact is not as broad and as impactful as it could be if everything was coordinated. One of the goals we have is trying to envelop all of those programs and agencies. We don’t believe that we can do it ourselves. But we collectively believe that if we can pool all of the resources together that we can have a greater impact on our community. It’s trying to build an education from very early on in the development of individuals as they’re pre-kindergarten, growing up and going through school. We believe that we can have an impact on adults but that’s years and years of habits that you’re trying to change so concurrently with working on those, we want to also establish a relationship with the pre-kindergartners to start their lives out in a healthier manner than the parents or adults that are raising them. BJ: That accountable care community concept and the public health piece in general — in the process of putting all this together, it was obvious if you’re going to merge, Wellmont and Mountain States have to agree. It was not as obvious that ETSU would become the third leg. How did that come to be? BH: One of the aspects of the COPA process itself is to help the economy of the region. Not only are we trying to save wasteful spending that we have within

the competition of our two systems going forward, but we want to channel the opportunity of additional economies and resources into our region. Collectively, we believe that ETSU has not been able to get the momentum going to develop the research components that could bring additional industry into our region. We’ve had a couple of successes in the past with some of the drug companies, Pfizer, King, and others, where they were real economic engines for our communities in a small way but over time they’ve fallen upon hard times. We believe there are substantial research dollars that are available but helping ETSU to get the momentum going forward takes some seed money. We believe some of the cost savings that we can generate from our collective coming together could be funneled into ETSU to help them kick off some of those research programs. Once you get their research talent, once you put that kindling out there and light the fire, it kind of takes care of itself over time. But getting the momentum started in the first place has been some of the hard pieces that haven’t happened to the extent that we would like to see and believe can happen in this area. With those come additional jobs that are really high-end type educational jobs. We think it would be synergetic for other physicians wanting to come for their training at ETSU or for the allied health practitioners that are needed to help support the medical industry and the research industry, then you have other businesses that want to feed off the research that’s going on. So again, it’s a long vision, a long

18 The Business Journal of Tri-Cities TN/VA | November 2015 | bjournal.com

process that we intend to go through but it’s really to help our economy as a whole rise and grow. And it goes back to again, you’ve got to do better at education so that we have more high school graduates first, then high school graduates going on to colleges and universities, then having the jobs available for them once they finish their college education that are going to help our economy to grow. It’s a long-term vision but we do believe that we would be successful in being able to generate that over time. So the third leg of the stool if you will, aside from just the obvious of the dependence we have on not only ETSU for our workforce, but Milligan and King and all the other universities, Northeast State, you name it. We’ve got an aging population. The population that works in our facilities will also be thinking about retirement and we’ve got to replenish those over time too, so we need to continue to work with all our institutions of higher learning. The biggest impact, however, is reserved for the research piece that we really think holds some great promise in improving the economy of our region. BJ: In speaking of the economy and jobs, neither side has been shy about saying there will be some pain in the form of jobs going away in the transition. What thought is being given to organizing along the lines of, say, centering cancer care in Bristol, heart care in Kingsport and women’s and children’s in Johnson City? BH: That is a question that a lot of our community residents ask us in this merger

process and it’s one of those questions that because of the regulations we’re under and scrutiny we’re under in the merger piece, we have not been able to have conversations with each other about. Services, and the location of those services, are a protected area from the Federal Trade Commission’s standpoint of strategy so we’re not able to have those conversations. I think it’s natural that the community wants to go to those questions. It’s unfortunate but the reality is that we’re not able to answer the questions at this time because we’re not able to have those conversations. What we tell the community is we appreciate those thoughts and ideas and if they want to keep those ideas and thoughts coming, they should do so through the public venues that we have. As soon as we receive approval from the states for our COPA applications, that is when we’ll start having those types of discussions and being able to effectively plan for what the future looks like in our region. BJ: But it’s fair to say that inside your organization, you’re sharing thoughts on exactly how the unnecessary duplication of services we’ve had in the past can be best put aside in the new organization and you’re looking forward to the point at which you can hear theirs, share yours and move forward? BH: I think that’s one of the opportunities that we are looking forward to in having those types of discussions. Presently we’re having to remain as competitors and as we talked about early on, we are aggressively pursuing our business strategy that we have today for the Wellmont Health System which is to be more available and accessible to the public as it relates to access into the primary care and opportunities for delivering their care in convenient and cost-effective ways. We think that strategy will serve us well in a merged organization or in a competitive environment going forward. And yes we do look forward to the day when we can have those conversations about how can we go to the next level in efficiencies within the region that we’re serving. BJ: So what is the current merger timeline? BH: We still intend to file the COPA applications in the fall, which I guess gets us up until mid-December or so. That’s still the desire of our organization so far. We’re working; our joint board task for integration council’s working on by-laws for the new system, policies about how we would operate in general, reviewing the consultancy reports, some of that information has to be put into the COPA application so that COPA application will be put out for public view and so we look forward to the input that the public would have as we get ready to file that application in the fall. BJ: And once the application is accepted, the speed of the process depends not just on you but also on two different state governments. BH: There is an opportunity once we file that application if the state determines that they want questions answered or more information the clock doesn’t start running. But there is a clock once the application is complete and it’s 120 days in Tennessee and 150 days in Virginia. I think it’s natural to expect that since this is the first time in Tennessee and Virginia that this type of request has been filed, there are likely to be questions from the commissioners of health in both states about further information they would like. So sometime after we file I’m sure we’ll get a request for more information before the clock starts running.

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bjournal.com | November 2015 | The Business Journal of Tri-Cities TN/VA

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| FEATURES

Eastman, UT Knoxville partner The growing partnership between the College of Engineering at the University of Tennessee and Eastman Chemical Co., became a working arrangement last month. A team of engineers from Eastman installed equipment and experiments in the Eastman Unit Ops Laboratory in the Nathan W. Dougherty Engineering Building on the Knoxville campus. In the lab, students can see what it is like to work on various processes that they would encounter in a working chemical plant environment. “Having people who have hands-on experience in the subject offering to share their time and knowledge of these processes is a wonderful opportunity for our students,” said Sankar Raghavan, the new Eastman Professor of Practice in the Department of Chemical and Biomolecular Engineering. “The level of collaboration that we, as a college, have with Eastman is one that can work to benefit both of us.” Raghavan himself is a perfect example of

that collaboration. He is the third individual hired by the college through the generosity of the Eastman-sponsored program. “Strategic partnerships between business and education help ensure we have a successful workforce in the future,” said Eastman public affairs representative Chrissy Idlette. “Encouraging innovative and productive thinking in a real world environment enables students to excel in problem solving, a necessary skill in the business world.” UT Eastman Professor of Practice Sankar Ragha-

Eastman releases Q3 results Eastman’s third quarter performance numbers slightly disappointed investors and analysts, meeting earnings per share targets, but missing on revenues by $130 million. “Our solid third-quarter earnings once again demonstrate the quality and value of our portfolio transformation to specialty market and product positions,” said Mark Costa, chairman and CEO. “The combination of volume growth in specialty businesses, mix

van (left to right) watches as Eastman engineers Cristina Kubicki and Stanton Wiggins calibrate a distillation column in the Eastman Unit Ops Lab at UT on Wednesday.

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20 The Business Journal of Tri-Cities TN/VA | November 2015 | bjournal.com

| FEATURES

Keck: “Newco” to help coordinate community efforts By Scott Robertson

peaking after the final scheduled community forum regarding the proposed merger of Mountain States Health Alliance and Wellmont Health Tony Keck System, MSHA Senior Vice President and Chief Development Officer Tony Keck said the newly formed company (dubbed Newco as a working title until the company name is formally announced) will try to work as a coordinator for other agencies and organizations. Healthcare alone cannot make people healthier, Keck said. “If we’re really going to improve the health of our region, we need a broad group of individuals and organizations that represent all the social determinants of health such as education, law enforcement, housing, healthcare providers and government, to get around the table, set some common goals and then all do their part in their unique way to actually move the region towards those goals.” Just as Newco hopes to work more efficiently by eliminating unnecessary duplication of services in the healthcare marketplace, Keck said, it may be possible to bring organizations with complementary aims together to reach health improvement goals more efficiently. Newco can help bring those groups together, Keck said. The key is to have broad buy-in to the concept of making the community healthier. “If we’re trying to reduce heart disease in a community, certainly one thing a provider like us can do is reach out and do more screenings for heart disease, but something that other employers might do is prohibit smoking in the workplace. Schools might get involved by running programs to keep kids and teens from starting smoking in the first place. Parks departments might create more green space for people to get outside.

Roads departments might make it easier for people to walk as opposed to just drive. When you layer all these things on top of one another in a concerted effort, there’s evidence that you can make real progress in a community.” The process of holding the ten public meetings regarding the merger has

identified more than 140 individuals and organizations throughout Northeast Tennessee and Southwest Virginia that can play a role in coordinating efforts, Keck said. “Through the merger we’re going to make dollars available to actually help fund programs in a sustainable way.”

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bjournal.com | November 2015 | The Business Journal of Tri-Cities TN/VA

| FEATURES

Johnson City’s downtown not yet at ‘critical mass’ By Jeff Keeling

Johnson City Development Authority Commissioner Craig Torbett at the east end of Founders Park in downtown Johnson City. Photo by Jeff Keeling

alk around downtown Johnson City and it’s easy to see signs of growth, from new restaurants and a community college campus to a sizeable brewery, a public park and lots of new apartments. Ask Craig Torbett whether Johnson City’s downtown has reached a tipping point signaling smooth sailing ahead for growth and redevelopment, and the longtime Johnson City Development Authority commissioner doesn’t pull any punches. “The concern I have going forward and recently is, I think there’s a lot of people looking at (downtown’s growth) and saying, ‘wow, look how far we’ve come, how fast we’ve come,’” said Torbett, who chairs the JCDA’s TIF (tax increment financing) Advisory Board. “That’s fair, but at the same time we are just scratching the surface of what I think is really possible.” Torbett was a JCDA leader when the organization gained approval a decade ago for Tennessee’s first districtbased TIF program. “Years ago, we had consultant after consultant that talked about all these different things, and one of the most repetitive things that showed up in every single one of

them was that you’ve got to continue to stay focused and stay dedicated until you push to a point that it will have its own critical mass. Absolutely, it has not reached that point.” If Johnson City is just scratching the surface, the community is scratching pretty hard. The JCDA purchased the dilapidated former Clinchfield, Carolina and Ohio railroad depot out of foreclosure in 2010 for about $150,000. When it sold the structure to entrepreneur Joe Baker in 2012 for $5,000, JCDA members were betting the private-sector development Baker planned would yield dividends far beyond the public cost of selling the building at a loss. Two years later, in June 2014, Tupelo Honey Café opened in the depot’s warehouse section. And Baker? In the past two years, he has purchased three additional historic downtown buildings, including another depot, renovated the second depot and opened Yee-Haw Brewing Co. there (a restaurant is also in the space). He also set his sights on further potential investments, including the former General Mills building a couple blocks west of Tupelo Honey. In a late October interview, Baker agreed with

22 The Business Journal of Tri-Cities TN/VA | November 2015 | bjournal.com

Torbett’s scratching the surface assessment. “I think we’re on a heck of a start right now,” Baker said. “I think there’s a lot of good things that have already happened.” Baker hasn’t been alone in his willingness to invest. Downtown redevelopment has accelerated rapidly over the past 24 months, and included a couple of major public projects in addition to numerous private ones. Torbett attributes the success to a combination of factors, including the TIF and other incentives, and the publicsector investments the City of Johnson City has made in both flood control and beautification. In 2014, before several multimillion dollar projects came on line, the 1,800-parcel TIF district’s total assessed value was $85.3 million – up from $80.7 million in 2013 and $57 million in the TIF’s base year of 2008. Baker said it is “very attractive” as a private investor to see public investment, from infrastructure to incentive programs. He and his partners haven’t taken TIF to date, but have applied for two current projects, and benefited from the initial sale price on the CC&O depot. “It makes me more comfortable to know I’ve got a partner

that is willing to invest side-by-side in working to create a good energy and a good ethos for, in this case, the downtown area,” Baker said. He also cited public projects ranging from Founders Park and the pavilion that will house the Farmers Market to sidewalk and lighting improvements. “There are many things that are going on right now outside of private investment in Johnson City that make it appealing not only to pedestrians and visitors from other communities, but to folks that are looking to invest money and grow businesses,” Baker said. “It’s (private and public investment) sort of a chicken and the egg comparison. When you look at development in downtown, it’s tough to have one without the other. When we look at starting a business, for instance with the brewery, it’s a lot easier to make that investment and take that plunge when you know there are other things happening around you.” Torbett said it really all started when Johnson City got serious about addressing downtown’s propensity to flooding, which had long been viewed as an impediment to redevelopment. The city used funds

from a stormwater fee implemented in the mid-2000s, and Torbett believes one difference-maker for private downtown investment was the flood mitigation projects’ inclusion of beautification elements – the most noticeable being Founders Park. That downtown space, completed in mid-2014, has quickly become a focal point for gatherings, and is nearly always the scene of people walking, running or cycling. “I was part of the selection committee for the engineering firms as we were going through that,” Torbett said. “I remember some of them were looking at lowest-cost options and ways to mitigate the flooding, but you would not have ended up with a Founders Park. The city, thankfully, had the forethought to realize that was important enough to make that happen.” Along with “streetscaping” along Buffalo and other major downtown streets, improved crosswalks on busy State of Franklin Road, and hanging flower baskets and decorative streetlamps, public investments have included the farmers market pavilion and the multimillion dollar investment in the Downtown Centre. Formerly home to

Washington County offices, the structure now houses a Northeast State Community College teaching site. “I truly believe the value that came from those investments is greater, just in the perception that your city is now committed to developing their core and developing their downtown, and developing linkages between ETSU,” Torbett said. “That I think then gives the businesses and the individual investors the confidence to look at, ‘ok, I’m interested, now how do I make this work?’ You still have cost hurdles in developing or redeveloping in a core area that you just don’t have if you go out and buy a raw piece of land and put up a building. TIF gets a lot of credit, and I think that’s fair and it should to a certain degree, but if TIF was there without all those other things I’m not sure that we’d be anywhere close to where we are.” Nor would downtown be as far along, he adds, without developers that can either procure financing for large projects, or self-finance. “These tools that we talk about that are credited with a lot of the SEE CRITICAL MASS, 24

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John Sevier Center – which is a beautiful building that is serving a purpose, but I think success – it’s an incentive, but you’ve got to any real estate developer would probably tell have the wherewithal and the ability to do you it’s not its highest and best use.” it,” Torbett said. Historic renovation of the mill property, Still, Torbett said, the ability for develop- Torbett said, appears to be within sight. ers such as Baker to leverage TIF – and other The Chamber of Commerce owns it and a incentives including historic and new market large contiguous property is available. The tax credits – will remain a key to continuneighborhood has had its say. The city knows ing downtown’s momentum and someday the zoning issues. And Baker has expressed reaching the critical mass that lessens the interest, with some details, in redeveloping need for public-sector incentives. Torbett said it. In the case of the Sevier Center and other the historic integrity of Baker’s renovations potential large anchors, Torbett said, the city, downtown is likely due at least in part to the Washington County and the JCDA need to incentives he’s been able to use. become more proactive. “The real beauty and benefit of Mr. Baker “You’ve got properties that may still be doing what he’s doing is, you can have a lot occupied but not the best use. So you’ve got of people that can come in and spend money to assemble properties, if parking’s an issue and do big projects that don’t necessarily you’ve got to figure out how you’re going to bring back some of the history and do them handle that. You’ve got to figure out how you in the method that he’s chosen to spend those relocate people. The whole goal here is not extra funds to do.” to have anybody be displaced, you want to So with students busily attending class, make everybody as happy at the end as you a new corporate headquarters apparently set possibly can.” to open in the former Kress department store That kind of heavy lifting is more than building, parks and farmers markets coming many developers want to do, or are capable of on line and loft apartments sprouting, why is doing, Torbett said. Better that the JCDA and Torbett so insistent the long-sought critical its government partners tee it up for them mass hasn’t been reached? For one thing, he – up to and including help finding state and said, downtown remains without the largefederal tax credits. scale “anchors” that, like malls, downtowns “We get maybe a preliminary agreement need too. on the front end that this could be available if “Downtowns frequently kind of lose we can get all these in (properties necessary sight of that,” Torbett said. “I don’t think we for a large development),” Torbett said. “And have lost sight, but if you think about, ‘are we we say, ‘here’s how we kind of see this, now at critical mass yet?’ I would ask you, ‘what give us your pitch for how could you make are your true anchors?’ We’ve definitely had that work for you and for us.’ Then we get to some great developments in Tupelo and in decide what’s the best use for the city and for Yee-Haw, but when you think about anchors, all the people involved.’ That’s what I want to it’s hard to look and say those aren’t for see us get to, and we’re not there.” example the General Mills property, or the Getting there, in Torbett’s view, is CRITICAL MASS, CONTINUED

critically important to the entire metro area’s medium and long-term future. When companies recruit workers, first impressions matter, and more and more often, Torbett said, those come from a city’s downtown. “I would be willing to bet you that if we don’t have an identifiable, vibrant cultural base to our city and county, those people are going to come up here and check it out and say, ‘where are they talking about moving me?’ You get enough people who go back and say, ‘that’s not somewhere I want to live, that’s not somewhere I want to envision spending my off time with my family,’ then you won’t get some of those relocations.” Baker agreed with Torbett’s emphasis on quality of life and place. He mentioned traffic flow, family-friendly spaces such as playgrounds and museums, and quality entertainment as among the key components if there is to be a next stage of growth. “I think really working toward a long-term plan to create an overall quality experience of life or just a visit in downtown Johnson City is very important. As we’re working together as business owners and the city, it’s important to identify needs and then try to work towards making the needs realities and serving the community in that way. The groundwork’s been laid to do just that. “When you look around at how Founders Park has developed, and the potential land use for that area and the area where Uhaul was, I think there’s been a lot of good work and a lot of good thoughts by the city planners and government to make those things possible. Now we’re at a point where we just need to continue on that path and do what’s right for the folks that live in and visit Johnson City.”

‘Beer Trail’ a toast to regionalism

Photo by Jeff Derby

24 The Business Journal of Tri-Cities TN/VA | November 2015 | bjournal.com

It may be a drop in the keg compared to what could be achieved someday, but it is regionalism. Last month, area convention and visitors bureaus made a joint announcement: they were collaborating to introduce the “Brewly Noted Beer Trail.” The nation’s first multi-state craft beer trail showcases an array of craft breweries, each offering its own distinctive atmosphere and flavor. “Through hikers,” as it were, would visit Bristol, Va.’s Bristol Brewery and Studio Brew; Bristol, Tenn.’s Holston River Brewing Company; JRH Brewing, Johnson City Brewing Company and YeeHaw Brewing in Johnson City; elder statesman Depot Street Brewing in Jonesborough; and Kingsport’s Sleepy Owl and Triple B breweries.

2014

Photos by Adam Campbell at Carnegie Hotel

Plus:

Celebrating a “Good” Long Run at Frontier Health

November 2014

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Eastman Tops It Off The Business Journal of Tri-Cities TN/VA | November 2014

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| FEATURES

Eastman Credit Union donates $250,000 to ETSU football stadium Eastman Credit Union is backing East Tennessee State University’s effort to fund a new football stadium. On Oct. 29, the Kingsport-based credit union presented the university with a $250,000 gift to be used for construction of the planned facility. “We are honored to be part of the future of Buccaneer football,” said Olan Jones, ECU CEO, “but most of all, we are honored to partner with ETSU on programs that fuel opportunity and growth in this region and that continually make Northeast Tennessee an even better place to live and raise a family.” The donation is the latest in a series of gifts ECU has made to the university. Most recently the credit union pledged $250,000 toward a proposed fine and performing arts center. ECU has also supported the ETSU College of Pharmacy and the Gray Fossil Site.

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ETSU and ECU officials announce the $250,000 donation (left to right): Norris Sneed, Brian Noland, Olan Jones, Wayne Kirk, Carl Torbush, Dick Sander, Scott Carter. Photo by Bill Derby.

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ed,

| FEATURES

Dr. Gene C. Couch, Jr. Installed as Sixth President of VHCC

r. Gene C. Couch, Jr., a native of Southwest Virginia who returned to the region after a distinguished 29-year career with the North Carolina Community College System, was installed Oct. 23 as the sixth president of Virginia Highlands Community College. The celebration marked a first for the Commonwealth, said Dr. Glenn DuBois, chancellor of Virginia’s community colleges, noting that Couch is the first Virginia community college graduate to become a Virginia community college president. “What we found in Gene is a seasoned community college leader; someone who understands our students, especially because he was one of them; and someone who loves this region and is dedicated to its success,” DuBois said. Couch was born in Abingdon and grew up on a farm in Castlewood. Following his graduation from Southwest Virginia Community College in 1982, he earned a doctorate in Educational Leadership from East Tennessee State University.

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bjournal.com | November 2015 | The Business Journal of Tri-Cities TN/VA

| FEATURES

What to do when the railroad leaves? Crowe, Holsclaw bring state officials to Unicoi County to address the post-CSX economy By Jeff Keeling

nicoi County Mayor Greg Lynch put it succinctly. “The soul of Unicoi County has been ripped out.” CSX, an intermodal transportation company best known for operating rail lines announced Oct. 15 it would significantly reduce the scope of its operations in Erwin, Tenn. The railway plans to close a locomotive service center, project shop and car shop, and eliminate switching operations at the Erwin yard. Roughly 300 CSX employees who work at the facilities and in support roles will be affected. The company has offered effected employees at least 60 days pay and benefits and is working with the union to see that employees with greatest seniority are offered positions elsewhere in the company. Still, the effect of losing 300 relatively high paying jobs will come as a significant blow to the local economy. Bureau of Labor Statistics showed Unicoi County as having an employment level of 4,788. “This is more than 300 jobs we’re talking about,” said Congressman Phil Roe. “It’s closer to 1,000. Look at the Ford dealer down the road. How much business do you think this will cost that car dealer? The trickle-down effect is devastating. And 60 days will pass very quickly.” Roe was one of several government officials brought together at the behest of State Senator Rusty Crowe and State Representative John Holsclaw Oct. 30 at Erwin Town Hall. Key among the officials in attendance was Randy Boyd, Tennessee’s Economic and Community Development Commissioner. “We’re going to find a way to fix this,” Boyd said. “What affects Unicoi County affects all Tennessee, and we’re all in this together.” Boyd immediately suggested using Rural Development Initiative resources to help address the damage to the com-

munity. “The state is looking for areas that could be developed where we can be a partner to start helping develop sites. That is convenient for this situation.” Boyd also suggested growing tourism efforts in the county, including Rocky Fork Park, which has already been seekPhil Roe ing funds for tourism development. Boyd also pointed out CSX has, “a lot of property that could be put back into the community.” An economic development site in Northeast Tennessee with on-site rail plus easy-off, easy-on interstate highway access and a good deal of flat ground is a rarity, and could be used to bring in another employer to help replace the jobs CSX is ending. “And we’re looking at the quickest ways we can help,” said Sterling Van Der Spuy of the Labor Department. “Whether it’s training into higher education or training into other business in the region.” To that end, a career center will open in Unicoi County, on property owned by East Tennessee State University, said Randy Boyd Kathy Pierce of the Northeast Tennessee Workforce Investment Board. “We have had several companies, though I won’t mention them by name, contact us to let us know they are interested in these highly skilled individuals who have an excellent work ethic.” But before that can be addressed, CSX must share with the organization how many employees will take positions elsewhere and how many will remain in Unicoi County, looking for work. Boyd told community members he was impressed with how quickly they had come together to begin working to solve the problem. “This is not the way it usually works,” he said. “Whenever I go around to talk about situations like this, I will use you as an example. You should be very proud of how you are handling this.” Rusty Crowe

28 The Business Journal of Tri-Cities TN/VA | November 2015 | bjournal.com

IT Security Practice Lead Burk I.T. Consulting rewarding to meet customers who are so relieved to discover Burk I.T. Consulting and our I.T. Security Practice, and to find out that they are not alone in their battle against cybercrime and the challenges of hat began as a part-time gig as regulated industry. The really tough days a computer room operator for a are largely the opposite side of this same grocery store chain has blossomed into coin. It can be very frustrating when you a passion and a successful career for encounter a business in need, a business Ben Lawson. He became that grocery at risk, a business struggling to meet the chain’s first network manager, its first demands of industry compliance, yet a security and compliance manager, and, business blinded by fear or doubt and ultimately, its first director of I.T. strategy unwilling to take the necessary steps to and governance. Today, he leads and keep their employees and their customers develops the I.T. Security Practice at Burk safe and secure. That certainly makes for I.T. Consulting, assisting clients in meeting a tough day. Fortunately, the tough days the security and compliance demands of a have been very few and far between. rapidly changing world.

Finish the following sentence: “In my line of work, the first rule is: Thou shalt not...” “… fail to meet the needs of the customer.” I realize this statement sounds fairly straightforward and intuitive, but when you add in the complexities of I.T. security, things can become a little more complicated. I.T. security practitioners are truly governed by a code of ethics and a desire to maintain the confidentiality, integrity and availability of our customer’s data. On many occasions, project costs and deadlines can place the wants of the customer at odds with the I.T. security needs of the customer, making my job a little more difficult. These gaps between goals can nearly always be bridged through creativity and compensating controls, but it can take time, patience and a sincere desire to work as a team. Because of this, I.T. security is rarely as simple as deploying a piece of hardware or installing an application. What makes for a really great day on the job? And a really tough day? Particularly great days are fueled by grateful customers. It is tremendously

Ben Lawson

What traits do you most value and respect in a colleague? First and foremost, I respect honesty in a colleague. As I mentioned previously, I.T. security is a discipline governed by a strong code of ethics and honesty is at the heart of that code. I am grateful to work for an honorable organization. I also value greatly the desire to continue to learn and

grow as an I.T. professional. Information technology is a highly dynamic field, so a devoted I.T. professional recognizes the need to continue to study and learn to master his or her craft. I have a tremendous amount of respect for the time and energy my colleagues pour into their professional studies, with many choosing to dedicate nights and weekends to becoming a stronger engineer and technician. What do people who like you have to say about you? And as a corollary, what do people who don’t like you have to say about you? I would like to think that those who know me and like me would say that I am dedicated to my job and its principles, that I have a decent sense of humor and that I make coming to work more fun than it ought to be at times. For those that don’t like me, I would imagine that they mistake my dedication to I.T. security as being a bit of a hard liner and a rules enforcer. I can be perceived as a security cop and hard to understand when I get on a rant about risks and controls. What aspect of your work gives you the greatest personal satisfaction? I am really motivated by the word “personal” in this question. One of the greatest satisfactions I get from my work is the opportunity to educate others about I.T. security and to see that education applied to their personal lives. I.T. security is not just about protecting corporate networks and server farms. It is a personal endeavor in which parents work to protect their children from online predators and strive to protect themselves from identity theft and cyber crime the world over. I take great satisfaction in the small role I can play in those endeavors. What about you would come as the biggest surprise to people with whom you work? One thing that would probably surprise my co-workers is how much I enjoy singing in my church choir. I will quickly profess that I do not have a melodic voice, but I love trying to make a joyful noise.

bjournal.com | November 2015 | The Business Journal of Tri-Cities TN/VA

| TRENDS EMPLOYMENT UNITED STATES

Northeast Tennessee/ Southwest Virginia Employment Statistics and Wage Data

137,412,381

AVERAGE WEEKLY WAGE UNITED STATES 1048

County TENNESSEE

Above Median Average Weekly Wage

Source: U.S. Department of Labor, Bureau of Labor Statistics

Below Median Average Weekly Wage

Employment Average March 2015 Weekly Wage

Sullivan 67,285 $923 Unicoi 4,788 $844 Washington 59,212 $730 Hawkins 12,164 $692 Johnson 4,010 $688 Greene 25,181 $666 Carter 10,554 $582

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Washington 20,169 $724 Russell 6,418 $700 Smyth 11,363 $647 Scott 4,613 $591

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30 The Business Journal of Tri-Cities TN/VA | November 2015 | bjournal.com

| RESIDENTIAL REAL ESTATE

Tri-Cities homes selling at fastest pace since 2008 Tri-Cities homes sales posted their fifth straight record-breaking month in September. Double-digit gains have been the regional norm ever since June, and last month was the second highest year-overyear gain so far this year – 18.7 percent. Since May homes have been selling at the fastest pace of any year since 2008. According to September’s report there were 495 closings on the sale of previously owned, single-family homes, 78 more than the same month last year. So far this year 3,986 home sales have closed. That’s 331 more than during the first nine months of last year and 490 more than the same period in 2008. The average days on market for September home sales was 164, up from 155 last year.

HOME SALES

SEPTEMBER 2015 HOME SALES

- 10 EXISTING HOMES

AUGUST 2015 HOME SALES

SEPTEMBER 2014 HOME SALES

JOHNSON CITY 59 / Average Price $224,827 60 / Average Price $209,633 51 / Average Price $212,872

KINGSPORT 61 / Average Price $188,261 56 / Average Price $169,942 32 / Average Price $148,901

BRISTOL, TN 22 / Average Price $160,585 27 / Average Price $148,556 15 / Average Price $101,357

BRISTOL, VA 19 / Average Price $121,371 14 / Average Price $134,493 15 / Average Price $119,721

ELIZABETHTON 16 / Average Price $120,213 16 / Average Price $110,194 5 / Average Price $105,980

GREENEVILLE 13 / Average Price $161,500 13 / Average Price $98,267 12 / Average Price $133,107

ERWIN/UNICOI 9 / Average Price $102,426 11 / Average Price $136,709 7 / Average Price $179,929

bjournal.com | November 2015 | The Business Journal of Tri-Cities TN/VA

| DEPARTMENTS ON THE MOVE Economic Development Elizabeth “Liz” Lewis has been named the first assistant director of the East Tennessee State University Innovation Lab. Lewis received her Liz Lewis M.B.A. earlier this year from the Kelley School of Business at Indiana University with a double major in entrepreneurship and corporate innovation and management. While in graduate school, she organized many entrepreneurial events in conjunction with the Johnson Center for Entrepreneurship and Innovation. After receiving her B.A. degree in business administration and Japanese studies from Illinois Wesleyan University, Lewis opened an English Conversation School in Kanazawa, Japan, where she facilitated cross-cultural communication and taught conversational and business-level English from 2004-10. She then served as assistant to the president and manager of the Global Sales Division of Yamato Soysauce & Miso Co., Kanazawa, Japan, until 2013, when she returned to the U.S. to pursue her graduate studies. “Liz comes highly recommended, and her unique qualifications in business, international relations, student incubation and entrepreneurship will prove invaluable to the economic impact we can make,” said Dr. Audrey Depelteau, director of the ETSU Innovation Lab. Dr. William Duncan, ETSU vice provost for Research and Sponsored Programs, indi-

cated that he looks forward to working with Lewis in promoting student entrepreneurship and recruiting new start-up companies to the Northeast Tennessee region.

Construction Odell Cash has assumed full responsibilities of managing and operating Mitch Cox Construction, Inc., as president, replacing Raymond McBride, Odell Cash who is leaving to start his own construction company, TRICON Builders, LLC. Mitch Cox, founder and CEO of Mitch Cox Companies, said, “I am pleased to announce that Odell Cash has been promoted to president of Mitch Cox Construction, Inc. and am confident he will continue the consistent growth of the company. Recently, Odell has managed construction at Silverdale Commons, where our new office will be relocated at the end of December.” Cash has served as senior project and operations manager at Mitch Cox Construction for the last 11 years. Cash has more than 20 years of commercial construction experience, managing over $60 million in construction projects. He is a licensed contractor in the state of Tennessee and holds an A.A.S. degree in drafting design with a concentration on architectural and structural design from Northeast State Community College. Cash said, “I’m honored and grateful for the opportunity to lead Mitch Cox Construction. Raymond has been a valued partner for over a decade, and I will miss his leadership and direction.”

32 The Business Journal of Tri-Cities TN/VA | November 2015 | bjournal.com

After 11 years with the company, McBride submitted his resignation letter on Sept. 15, stating that he would stay with the company for a short time to advance several projects to near completion and to ensure a smooth leadership transition for the company. Mitch Cox, founder and CEO of Mitch Cox Companies, said, “Raymond has done a terrific job leading the Mitch Cox Construction team. He has grown as a Christian servant leader and has made a huge contribution to the whole MCC organization. All of us at Mitch Cox Companies respect Raymond’s decision and wish him the best in his new business.”

Sales Asbury Place continuing care retirement communities recently added Sheri Collins to the sales and marketing team for its Kingsport campus. Collins has a nearly Sheri Collins 20-year career in the health care industry, with a focus on social services and marketing. She most recently worked for a national hospice care provider operating in the region and previously served as director of admissions, marketing and social services at another Asbury Place campus. “We are delighted to find an individual with such a varied and successful career in health care,” said Marjorie Shonnard, chief operating officer for Asbury Inc. “Sheri’s dual focus on social work and marketing makes her a perfect fit, and we’re glad to welcome her back to Asbury Place.”

AWARDS & ACHIEVEMENTS Northeast Community Credit Union receives national recognition Northeast Community Credit Union has been recognized by the Credit Union National Association as the 2015 Community Credit Union of the Year for its exemplary principles and service. The Community Credit Union award honors credit unions that embody credit union ideals, get involved in their community and meet the needs of their own diverse member bases. Each applicant is judged on three criteria: member impact, community impact and financial impact. This year’s awards were presented to credit unions in two asset categories: less than $250 million in assets and more than $250 million in assets, with only a first place and honorable mention winner in each category. NCCU took first place in the less than $250 million in assets category. “We are honored to accept this award on behalf of our community, our members, our staff and Board of Directors. We are passionate about serving our community and making a difference in people’s lives,” NCCU President and CEO Kathy Campbell said. NCCU was recognized for offering products and services to help its members increase their standards of living and better their lives. Credit building products, second-chance checking accounts, second-chance auto loans and payday loan alternatives were among those. NCCU donates time, money and resources to help many local charities, schools, libraries and non-profit organizations. The credit union is designated a low income financial services provider. Currently Northeast Community Credit Union provides a

Northeast Community Credit Union representatives accept their award

monthly grant to teachers to help with classroom supplies, a free monthly business spotlight display opportunity to feature member businesses for free at its branches, a $500 scholarship to local high school seniors, donates to ARM (Assistance Resource Ministries), United Way, the Boys and Girls Club of Elizabethton, TLC Women’s Center, local school sports teams, the Carter County Humane SociSEE AWARDS & ACHIEVEMENTS, 34

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| DEPARTMENTS AWARDS & ACHIEVEMENTS, CONTINUED

ety, the Carter County Imagination Library, Second Harvest Food Bank and more. It has surprised members of the community with a free gas day, and assistance on groceries, and provided lunch for the local road crews for working long hours to ensure the roads were safe to travel during snow. “Attending the conference was so inspirational,” Campbell said. “Now more than ever we are driven to work for our community and bring about positive changes. We care about our community and we prove that every day by helping to improve the lives of the people who live here.” Northeast Community Credit Union was honored at a ceremony during the annual CUNA Community Credit Union & National Federation of Community Development Credit Union Conference convention, held in Phoenix, Ariz. this year.

Fincher recognized for nearly 40 years of leadership For nearly 40 years, Dr. John Fincher

has influenced the quality of care the region’s cancer patients receive, and he continues to leave an imprint every day as medical director of radiation oncology at Bristol Regional Medical Center. His contributions to the field have captured the attention of the Tennessee Hospital Association, which honored his achievements with the meritorious service award for medical staff in early October. “Dr. Fincher has been a notable part of our medical staff for decades,” said Greg Neal, Bristol Regional’s president. “He has distinguished himself by materially enhancing our reputation and ensuring our cancer patients receive remarkable care, close to home, with a uniquely personal and professional touch.” Fincher is a well-regarded leader within Bristol Regional as chairman of the hospital’s cancer committee. He also chairs one of the tumor boards, which meet weekly with a multidisciplinary team of physicians to discuss cases and collaboratively determine the best course of treatment.

Johnson City News & Neighbor receives national recognition Johnson City News & Neighbor, sister publication of The Business Journal of Tri-Cities, TN/VA, was Bill Derby named first runner-up for the Vic Jose General Excellence Award at the international meeting of the Independent Free Papers of America Sept. 26 in San Antonio, Texas. The award honors the top free community publication in North America. The first place General Excellence Award went to Arcadia News in Phoenix, Ariz. In addition, News & Neighbor won four national awards this year. Scott Robertson’s April 22 column, “It’s not about fair…” won the award for Best Original Writing, Editorial. This marks the third straight year Robertson has won for best editorial. The first place award for Best Color Automotive Ad went to News & Neighbor for a Wallace Subaru of Johnson City ad created by Graphics Director Judd Shaw with

320 Wesley Street J o h n s o n C i t y, T N 37 6 0 1 423.283.9875 facebook.com/mailworks.tn www.mailworksinc.com 34 The Business Journal of Tri-Cities TN/VA | November 2015 | bjournal.com

assistance from Paula Giovanetti. The ad featured a Subaru Forester, a mother and an infant along with the tagline “Built to hold your most precious cargo.” In addition, News & Neighbor took second place in Best Local Business Coverage for Jeff Keeling’s article on the Mountain States-Wellmont merger announcement. Jcnewsandneighbor.com took third place in Best Internet Banner Ad for the Texas Tenors ad created for the Johnson City Symphony Orchestra. Publisher Bill Derby said, “When I was notified we were one of three finalists in the nation for the General Excellence award I was thrilled. Even though we came in second place to the Phoenix paper that averages over 70 pages per issue, it’s a great honor. Our team has worked so hard this year to make the Johnson City News & Neighbor a better community newspaper and it showed by placing second in the nation. ”

region to receive world-class cardiovascular care. It’s available right in their back yard.”

said Frontier Health President and CEO Dr. Teresa Kidd. “This Administration for Children & Families grant makes a huge Roe presents Link House $200,000 grant difference in the lives of runaway and U.S. Congressman Phil Roe, M.D., vulnerable youth.” presented a $200,000 grant to Frontier Frontier Health Senior Vice President Health Oct. 26 from the Administration for of Tennessee Children’s Services Kathy Children and Families, Family and Youth Benedetto agreed, “This grant gives us the Services Bureau. The 36-month grant opportunity to provide a safe atmosphere will help Link House continue providing at a time when an adolescent is making runaway, homeless, and throwaway youth critical decisions that may affect the rest of with emergency shelter and services. his or her life. We provide shelter and hope “We are pleased to have the opportuSEE MED BRIEFS, 36 nity to continue to provide these services,”

MED BRIEFS Holston Valley No. 1 in the country for carotid care again Holston Valley Medical Center has long been recognized across the country for its delivery of expert carotid care, and the hospital has now achieved a special distinction in this field for the second time. CareChex, a division of Comparion Medical Analytics, has ranked Holston Valley No. 1 in the country for 2016 in interventional carotid care. The honor comes four years after the national firm named Holston Valley the best in the nation for carotid artery stenting. The 2016 ranking includes the stenting procedure. Tim Attebery, the hospital’s president, said the rankings reflect the superior work performed by Chris Metzger, M.D.; Rahul Sakhuja, M.D.; and Mark Aziz, M.D., and the commitment to excellence by support staff at Holston Valley and the Wellmont CVA Heart Institute, where these interventional cardiologists practice. “We’re extremely proud of our physicians, who repeatedly demonstrate a standard of excellence that others in that specialty hope to emulate,” Attebery said. “Their outstanding skills have positioned Holston Valley and the heart institute for success and assure patients in our region they do not have to travel outside this bjournal.com | November 2015 | The Business Journal of Tri-Cities TN/VA

| DEPARTMENTS

Kathy Benedetto; Dr. Teresa Kidd; Congressman Phil Roe, Christy Mullins and Kim Trantham at the offices of Frontier Health

MED BRIEFS, CONTINUED

to steer them toward reconciliation with their family whenever possible, and most of the time it is.” Since 2003, Frontier Health has provided emergency shelter, food, clothing

and counseling to 661 youth. Link House offers outreach, provides food, shelter, clothing, crisis intervention, assessment, individual, group and family counseling to adolescents.

MSHA offers new free cancer program “You have cancer.” Those three words are frightening. The journey that begins when they are uttered can be complex and overwhelming, not only to the patient, but to the family and loved ones affected by the diagnosis. That’s why on Oct. 28, Mountain States Health Alliance announced the launch of Triumph, a new program deployed throughout Northeast Tennessee and Southwest Virginia, designed to support cancer patients and their families, advocate for the patient, and to help coordinate the patient’s care throughout the continuum of treatment – from diagnosis to survivorship. Triumph is free of charge to all patients. Those who choose to join the program will receive one-on-one assistance from specially trained oncology professionals, including nurse navigators and social workers with experience working with families fighting cancer. To request a cancer navigator, call 877-77-Triumph.

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bjournal.com | November 2015 | The Business Journal of Tri-Cities TN/VA

| THE LAST WORD

Coal’s collateral damage: A chance to face the future boldly By Jeff Keeling

s I pedaled my road bike along Johnson City’s High Ridge Road a couple weeks ago, up a steep hill and across the CSX rail line at the foot of Buffalo Mountain, the evocative aroma of burning leaves wafted across the crisp fall air. The mountain, beginning to be ablaze with color, was in sharp outline against the late afternoon blue skies, a blue the heat and haze of summer never quite allow. Against this backdrop, a coal train trundled by, black engines contrasting with the mountain’s vibrant leaves and the foothills’ fading grass. It was all quite sublime – until I thought about what that train had to do with the hundreds of folks just a few miles down that rail line, in Erwin, whose lives had just been turned upside down. CSX is cutting 300 jobs and closing its rail yard in Erwin, as it announced Oct. 15. In what some may perceive as an ironic twist, the announcement came the same day as positive job news that will mostly affect a site just north of Unicoi County and not far from Erwin. Allied Dispatch Solutions, a newish roadside assistance company, hopes to add nearly 500 jobs to its workforce. That may be cold comfort to the CSX employees who are losing their jobs, which almost surely provide better pay and benefits than the Allied positions. This is by no means intended to minimize Allied’s positive impact on the community, which is very significant. Rather, it points to the rapid changes in our economy and the types of jobs that are out there. Thanks largely to King Coal, the folks at the Erwin yard made a very good living fixing things, working with heavy tools and generally maintaining machines and equipment that have changed in degree but very little in kind since the mid-1850s. They’re part of a workforce sector that has taken its lumps in the age of automation, whereas Allied is on the cutting edge of technology, requiring a relatively small capital investment to provide 38 The Business Journal of Tri-Cities TN/VA | November 2015 | bjournal.com

remote telephone assistance with a cloud-based computer infrastructure. The Allied example seems to be where many of our jobs are headed. My well-spoken, computer-literate son and daughter-in-law both spend their days ensconced in cubicles, headsets on, eyes on screens and fingers rapidly tapping keyboards. They’re providing a service in the information age, and I’m thankful their company provides – for the area – good pay and benefits plus a chance to advance. The question is whether the types of jobs primarily available in this region, and really in our economy as a whole, will pay enough for people to raise families with some level of comfort and security just as good jobs at the factory, the rail yard or the mines once did. A related question is whether our education system and our culture will produce enough young people with the skills and the work ethic to perform well in those jobs, so they don’t go elsewhere. (For a hopeful glimpse into that possibility, see the story that begins on page 9 of this issue.) Right now, speculation about those questions is of little consequence to 300 families and, for that matter, the town of Erwin. A quick study from East Tennessee State University suggests that, conservatively, the shutdown will result in the loss of an additional 90 jobs through indirect and “induced” effects, for a total labor income loss of $18.8 million. This in a town of 6,000. Further indirect and induced effects in Washington and Carter counties are estimated at 78 jobs and $2.6 million in labor income. Almost immediately, economic development and government officials in Unicoi and Carter counties began putting their heads together with folks at the Washington County Economic Development Council to begin collaborating about ways to address this blow. And Oct. 29 and 30, the array of forces working to counteract the challenge broadened as local, regional, state and federal officials gathered in Erwin to further plan a swift response. With the coal industry on its heels from not just regulation but from cheap natural gas as a competitor, those coal train volumes are unlikely to rebound any time soon. That makes regional collaboration all the more crucial. The changes our region and this nation are undergoing as we become the latest global superpower to enter the challenges of middle age require nothing less than ethical, hard-working leadership by our elected and appointed officials at every level, our educators and our business community.

Our care makes the grade. Our team makes it possible.

• Top 10% in the nation for patient safety in pneumonia care, trauma care and vascular surgery at Holston Valley • Top 10% in the nation for patient safety in gastrointestinal hemorrhage, orthopedic care, pneumonia care and trauma care at Bristol Regional • No. 1 in the Tri-Cities for patient safety in women’s health at Holston Valley

At Wellmont Health System, quality is no accident. Our doctors, nurses and co-workers are dedicated to ensuring you receive the quality care and unparalleled experience you deserve.

Our team shares a calling and drive to positively impact the lives of everyone we encounter, from patients and visitors to our co-workers and community. In fact, we’re ranked: • No. 1 in the country for medical excellence in interventional carotid care at Holston Valley Medical Center • Top 100 in the nation for medical excellence in heart attack treatment, trauma care and joint replacement at Bristol Regional Medical Center • Top 10% in the nation for patient satisfaction in overall medical care, overall hospital care and overall surgical care at Hawkins County Memorial Hospital • Top 10% in the nation for medical excellence in cardiac care and heart attack treatment at Holston Valley and Bristol Regional • Top 10% in the nation for medical excellence in overall medical care, major orthopedic surgery, pulmonary care and stroke care at Bristol Regional

Top 10% in Nation

for Medical Excellence

Top 100 in Nation

for Medical Excellence

Heart Attack Treatment

Vascular Surgery

Holston Valley Medical Center

And we continue to raise and exceed our own expectations to create a wholly unique service that can only be found at Wellmont. This is the caring solution the people of our region can find nowhere else – and the one they return to time and again.

Discover the Wellmont Experience for yourself. Or join our team to make a difference.

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2016 CareChex®

wellmont.org bjournal.com | November 2015 | The Business Journal of Tri-Cities TN/VA

OPEN HOUSE November 15, 2015 2 – 4 PM

AUCTION

November 21, 2015 10:30 AM KINGSLEY ELEMENTARY SCHOOL 4.9 +/- ACRES 100 Emory Lane | Kingsport, TN. 37660

TERMS AND CONDITIONS OF AUCTION: 10% down day of sale (cash or good check), close in 30 days or less, sale is not subject to ability to obtain financing, property sold as is. A 10% buyer’s premium will apply. Sale is conditional on approval of winning bid by Sullivan County commission (legislative body). Minimum bid starts at $100,000. Announcements made day of sale take precedence over all advertisements.

Contact: Johnathan Forrester 423.677.8095 40 The Business Journal of Tri-Cities TN/VA | November 2015 | bjournal.com