January 2016 Tri-Cities Business Journal

Behind the scenes with Susan Reid The First Tennessee Development District may be the most influential people you never hear about

Plus:

The AB&T and CSX

and

Northeast State hits 50

Susan Reid at First Tennessee Development District headquarters.

JANUARY 2016

$3.00 Volume 28 Number 4

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January 2016 | The Business Journal of Tri-Cities TN/VA

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The Business Journal of Tri-Cities TN/VA | January 2016

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| INSIDE THIS EDITION

Business Journal The

| COVER STORY 8 Susan Reid and the

of Tri-Cities Tennessee/Virgina

First Tennessee Development District:

Office 423.854.0140 Publisher William R. Derby bderby@bjournal.com 423.979.1300

The most influential people you never hear much about.

Co-Publisher Jeff Derby jderby@bjournal.com 423.306.0104

Cover photo: Susan Reid of the First Tennessee Development District. Photo by Tara Hodges, Sweet Snaps

Managing Editor Scott Robertson srobertson@bjournal.com 423.767.4904

Photography.

Associate Editor Jeff Keeling jkeeling@bjournal.com 423.773.6438

| FEATURES 14 The AB&T and CSX Kathy Pierce’s Alliance for Business and Training is helping displaced workers laid off by CSX find gainful employment elsewhere in the private sector.

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Northeast State Hits 50 In five decades, the former Tri-Cities Area Vocational-Technical School has gone from 35 students to 6,000+, with more growth is on the way.

Tennessee’s new lead agri-businessman A Tri-Cities resident is the new president of the Tennessee Farm Bureau.

22

State considering healthcare merger comments

23

KOSBE Awards

A hearing in Nashville gave interested parties a chance to speak out on the upcoming COPA. Highlands Physicians, among others, took the opportunity.

A Bristol-based businessman is the keynote speaker at the Kingsport Office of Small Business and Entrepreneurship awards dinner.

| DEPARTMENTS 5 From the Editor

24 On the Move

6 Trends

26 Awards & Achievements

7 FYI

27 Med Briefs

30 The Last Word

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 Beth Collier bcollier@bjournal.com 423.470.2009 Robin Williams rwilliams@bjournal.com 423.794.6938 Creative Derby Publishing, LLC Graphics Director / Judd Shaw jshaw@bjournal.com 423.833.2726

The Business Journal of Tri-Cities Tennessee/Virginia is published monthly by Derby Publishing, LLC 1114 Sunset Drive, Suite 2 Johnson City, TN 37604 Phone: 423.854.0140 ©2015 Periodicals postage paid at Johnson City, Tenn. and additional offices.

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The Business Journal of Tri-Cities TN/VA | January 2016

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| FROM THE EDITOR

Legislators return to state capitals with shorter business-related agenda T

he National Federation of Independent Business has a great line about the need for businesses to be well represented when state legislatures start to meet: “You are either at the table, or you are on the menu.”

As rhetoric goes, it’s an appeal to fear, so it’s not quite as strong with business owners who are naturally confident, or with those who are already well-represented by their local and state Chambers of Commerce. But still, it’s a great line.

At this writing, as the calendar turns, there are fewer business-related hot topics being hyped by the business lobby in Nashville than any year in recent memory.

Part of that is due to that lobby’s own effectiveness.

In previous sessions, for instance, the legislature has done a great deal to clean up Tennessee’s once-onerous Workers’ Comp laws. Just so, the unemployment laws in Tennessee are now more favorable to employers than in many other states.

No divisive issue stands to pit moderates against conservatives the way Medicaid expansion did last year.

There is, however, the seemingly strong possibility of a gas tax hike proposal. That proposal could pit social conservatives - who reflexively rail against any and every proposed tax increase - against fiscal conservatives, who see maintaining roads and bridges as necessary for the private sector to thrive, and thus are willing to consider a higher gas tax as an investment in jobs and in competitiveness with other state economies. Taking dollars from other areas of government to replenish highway reserves that were plundered during the Bredesen administration could serve as an olive branch to social conservatives to show that the current administration is not just playing tax-and-spend.

During a telephone interview with The Business Journal in December, Tennessee Chamber of Commerce President Catherine Glover appeared less concerned with

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how the gas tax question will play out than with education and workforce development concerns.

Glover called Governor Haslam’s Drive to 55 push for more effective education, “vital to success in the workplace.” Glover pointed to the impending wave of baby boomer retirements as a driver of the need for qualified young employees for the businesses of Tennessee. “We’re coming up on an employee shortage,” Glover said, “especially in IT, healthcare and manufacturing.” Some of the state’s largest employers could lose as much as 40 percent of their respective workforces to retirement within the next five years alone. “Addressing the workforce is key to Tennessee’s continued success,” Glover said.

Across the border in the Commonwealth, a headlinegrabbing bill has already been filed. Senate Bill 88 would increase the Virginia minimum wage from its current federally mandated level of $7.25 per hour to $8.00 per hour effective July 1, 2016, to $9.00 per hour effective July 1, 2017, and to $10.10 per hour effective July 1, 2018, unless a higher minimum wage is required by the federal Fair Labor Standards Act (FLSA). The measure would also provide that the cash wage paid to a tipped employee would not be less than 50 percent of the minimum wage and that the tip credit would equal the difference between the cash wage required to be paid to a tipped employee and the minimum wage.

The question is not whether that bill will pass.

Passage is highly unlikely. The question is whether in an election year, the vote will be closer than it has been in the last two sessions, when a nearly identical bill has been voted down soundly. Last year, the bill never sniffed the floor of the full assembly, dying in January on an 11-3 Commerce and Labor Committee vote.

Counting the District of Columbia, 30 states have now enacted minimum wages above the federally mandated $7.25/hour, and Democrats see it as an issue that could help the party in down-ticket elections come November.

There is absolutely no chance the Tennessee State Legislature will vote to raise its own state minimum wage this session. That’s because Tennessee is one of five states with no minimum wage to raise.

January 2016 | The Business Journal of Tri-Cities TN/VA

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| TRENDS

Local home sales continue at brisk pace in November The Northeast Tennessee housing market continued at a record-setting pace in November.

Closings were up 8.7 percent compared to November last year and that was enough to push the year-to-date volume past the total for all of 2014. November was also the seventh straight month of year-over-year and year-to-date sales increases. There were 388 closings in November, down 81 from October and 31 more than November last year. Year-to-date, closings total 4,843, up 393 from the first 11 months of last year. The average days-on-market for a single-family home sold in November was 154.

NOTE: NETAR counts city sales as those made in a city’s high school zone. City data is included in county totals.

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The Business Journal of Tri-Cities TN/VA | January 2016

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| FYI

&Downs

Ups

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

Nuclear Fuel Services – NFS immediately came to the table when local political and economic development leaders asked who might be able to absorb former employees of CSX when the railroad company shuttered its Unicoi County operations (see page 14 for more details). Part of that action is simply good business. NFS figures to be hard hit by baby boomer retirements in the next five years and could use qualified replacements who are even a few years farther from collecting gold watches. But part of it, including NFS’ taking on the time and expense of working with the Alliance for Business and Training and Northeast State to set up a program specifically designed to give former CSX employees skills they need to be eligible for hire, is being a solid corporate citizen.

King University – A good part of the mistrust that led to the departure of the university’s last permanent president was caused by a sense that little, if any input from outside the top administration offices was being heard. So kudos to the university for setting up and promoting a webpage informing anyone who cares to read it about the search for the next president. The page includes the candidate profile being used by the search committee, which is nice. But what’s really impressive is the listing of the committee members – with their contact information.

Transparency is the wellspring from which trust flows.

Tennessee FOCUS Act - If implemented, the act would allow the six Tennessee Board of Regents universities – including East Tennessee State University – more control over their own affairs. Local governing boards for each school would be created, and TBR’s primary focus would shift to community colleges and technical schools. ETSU President Dr. Brian Noland, who has experience with state-level higher ed policy having served at West Virginia’s Higher Education Policy Commission and at the Tennessee Higher Education Commission, was the only TBRuniversity president named to a working group that will provide detailed recommendations regarding the act’s implementation. Noland has spoken favorably about the act’s theoretical premise: allowing the local boards to appoint presidents, manage their budgets and set tuition. He said it will help ETSU more quickly and efficiently respond to the needs of business, industry and the community. First, though, the act must pass. Following that, the state must 1) allow real local autonomy, and 2) not use the act as a means for underfunding higher education at the state level.

Alpha Natural Resources – Alpha execs cannot have been happy that their request to be allowed to pay millions of dollars in bonuses hit the public record at the same time their plan to cut employee benefits did. Do executives at Alpha deserve to be paid bonuses while the company is in bankruptcy protection? One could argue the company needs to pay those bonuses to keep execs from jumping ship to greener pastures. Then there’s the question of whether it is good policy to cut employee benefits as a way to progress back out of bankruptcy.

One could easily say yes to that (although it tells the rank and file they are clearly more welcome to leave than executives are) as well. But to do both at the same time makes life easy for union organizers elsewhere and harder for workers who want to stay with the company here.

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January 2016 | The Business Journal of Tri-Cities TN/VA

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| COVER STORY

Susan Reid flanked by key staffers (Back row, L-R) Director of Finance Joel Faidley, Industrial and Housing Programs Director Bill Forrester, Economic and Community Development Deputy Director Ken Rea, Assistant Executive Director Chris Craig, (Front row, L-R) Special Projects Director Mark Stevans, Reid, and Area Agency on Aging & Disability Director Kathy Whitaker Photos by Tara Hodges, Sweet Snaps Photography.

First Tennessee Development District a quiet force in regional economic development

By Scott Robertson

U

nder Director Susan Reid the First Tennessee Development District (FTDD) hasn’t chased headlines. But behind the scenes the organization has been a regional economic development player for years.

It’s not unusual for companies to issue press releases and hold groundbreakings or ribbon-cuttings when they make major hires or purchase a new facility. But what’s rarely said in the releases or the speeches is the role the FTDD played in making the move possible.

“In addition to infrastructure like water lines and sewer lines, we do things on the economic development side like site preparation for new industry, access roads, rail spurs, power lines, that kind of thing,” Reid explains. So whether it be by helping wrangle grant funds, providing loans or just acting as a liaison between

“

the public and private sectors, the FTDD helps businesspeople get business done. And if anyone questions the value of such activities, Reid has only to look back at the first loan she oversaw with the FTDD to answer. “Our first loan in our loan program was to Scott Niswonger when he was getting started,” Reid says. That loan, it’s safe to say, provided a pretty good return on investment.

“We had a couple of loan programs that were federally funded,” Reid says.

“Rural Development and the Department of Commerce both gave us funds, and then the state gave us money to match that. So those are revolving funds. We have done about 95 loans. We have a loan committee that oversees our loans. Then we have a loan board with several bankers on it, plus folks like former TVA economic development official Tommy Olterman and ETSU business professor Alan Spritzer.”

We have to address these education and workforce issues. We don’t have any choice.

Susan Reid

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The Business Journal of Tri-Cities TN/VA | January 2016

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At some point, interest developed in doing a private loan program as well. Several banks came together under the FTDD umbrella to help businesses in downtown Johnson City. “Those loans were mostly for facades and internal things,” Reid says.

“I believe there were 10 banks that put in $60,000 each. That has gone really well. We have made quite a few loans there.

That’s been going on for more than 10 years and they have all renewed.”

Now Greeneville has decided it would like to start the same kind of program, Reid says, “and we have made our first loan in that program. There may be another community coming up very soon to do the same thing.”

Part of the success of the private loan program is the way the FTDD has gone about administering it. “We have had a really good track record with our loans,” Reid says. “We review them very seriously. In fact, we got a little bit of criticism because we didn’t have any bad loans for the first eight to 10 years. But we managed them very well and we made serious decisions. So now we have had three or four defaults through the tough times. But if we had not, that would probably mean we were being too stringent.”

Being at the point of running an organization with a multi-million dollar budget is far from where Reid started with the FTDD. She was originally hired in 1973 as an assistant to the finance director. “I was hired,” she says, “but before I got to work here, the finance director left. So Jack Strickland, the original executive director at the development district asked me when I got to work, ‘How would you like to be the finance director?’ I said, ‘Well, we’ll give it a shot.’”

When she got her first look at the books, she says her heart sank. The FTDD had a grand total of $373 in the bank. “I don’t remember how many employees we had, but $373 was not going to go far,” she remembers.

Strickland and Reid rolled up their sleeves and began catching up on delinquent paperwork so Strickland could go to Nashville and get the funds flowing again. It was an eye-

Susan Reid with Bill Forrester

Susan Reid at First Tennessee Development District headquarters

opening experience for Reid, and one that taught her the value of keeping first things first. “Cash flow has never been an issue since,” she says.

Reid worked as both finance director and assistant director before applying for the top job at the district upon the retirement of Tom Moore in 1988. “From 1989 to 2015 we have done 587 grants and loans for $183 million out of the Economic and Community Development Department,” she says. “In 2015, that department did 31 projects and $10 million. I don’t know that that money would have gotten here had (Deputy Director Ken Rea’s*) department not done that. We’re not talking just about money. We’re talking about things like water and sewer service.

Sometimes it can be easy to forget about the real impact when you talk about it in terms of dollars instead of the people who benefit.”

2016 will likely see the FTDD enter into a new area of endeavor, Reid says: K-12 education. “We hope to try to make a difference, and our county mayors want to make a difference, in the effort regarding what are called ‘work-ready communities.’

Hopefully we can help improve some reading proficiencies.”

It’s important that the county mayors are on board because they make up a large portion of the FTDD board, and appoint other board members as well. The board includes all the city and county mayors from Carter, Greene, Hancock, Hawkins, SEE FTDD, 10

Online at bjournal.com

January 2016 | The Business Journal of Tri-Cities TN/VA

9

| COVER STORY FTDD, CONTINUED

Johnson, Sullivan, Unicoi and Washington counties, in addition to one state representative and one state senator from the region. Each county mayor also appoints one industrial development representative to the board.

“(K-12) Education is not an area we’ve worked in before,” Reid says, “but we want to bring in partners to address those issues, because working together is how you get things done.

If we can provide our employers with people who are ready to work, and whose skills have been certified, that will be a huge plus. We have to address these education and workforce issues.

We don’t have any choice.”

While the K-12 landscape is new to the FTDD, the district does have a history of helping bring consensus and positive change in higher education to Northeast Tennessee. “We have assisted on so many things,” Reid says. “We were supportive on the Medical School effort and the Pharmacy School effort at ETSU. When the region’s elected officials come together with one voice, it can be very effective. We have been fortunate to have a very good board that’s been very involved in these things throughout the years.”

And all the economic development accomplishments have been achieved using only a portion of the FTDD budget and resources. The majority of the funding (and the majority of the Ken Rea with Susan Reid

10 The Business Journal of Tri-Cities TN/VA | January 2016

Online at bjournal.com

47 staff members) is dedicated to the work done by the Area Agency on Aging & Disability.

“(Our total budget is) $6.8 million and about $4 million to $5 million of that is aging, and is subcontracted out,” Reid says. “We get federal dollars, and we do a lot of contract work with the state. Then we get an allocation of $180,000 from the state legislature. We use that for the most part to match our federal dollars that require a match. We get Appalachian Regional Commission funds and we get Department of Commerce economic development funds. Then the aging dollars are mostly federal dollars that come through the Tennessee Commission on Aging. And we make that $180,000 stretch.

We are very frugal.”

From helping businesses get infrastructure to helping create new jobs and investment to helping small rural communities get clean drinking water, Reid says the FTDD offers a unique opportunity to its entire staff. “How fortunate are we that we work somewhere where everything we do is good.” *Rea is also responsible for the bulk of FTDDs data gathering and analysis, Reid says. Data pulled from the FTDD website can be found on the following two pages.

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January 2016 | The Business Journal of Tri-Cities TN/VA

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| FEATURES The First Tennessee Development District: Clearinghouse of information The First Tennessee Development District keeps tabs on demographic information regarding its own counties, as well as, in some cases, surrounding counties for easy comparison. Some of that information, perhaps more accurately described as a drop in the bucket, is available on the organization’s website, ftdd.org. Shown here are three graphic representations of statistics FTDD has readily available. More impressive is the treasure trove of information available in the FTDD Comprehensive Economic Development Strategy, an 85-page document also available (in pdf format) at ftdd.org.

Average Annual Wage % Change 2012-2014

Source: ftdd.org/regional-statistics/

2014 Total Housing Units Average Persons Per Housing Unit HAWKINS

26,839 Units

CARTER

2.12

27,836

Persons Per Unit

Units

2.06 Persons Per Unit

UNICOI

8,845 Units

2.07 JOHNSON

8,914

Persons Per Unit

Units

GREENE

2.05

31,162

Persons Per Unit

Units

58,889 Units

2.14

Persons Per Unit

WASHINGTON, TN

SULLIVAN

74,115 Units

2.09 Persons Per Unit

2.12

Source: ftdd.org/regional-statistics/

12 The Business Journal of Tri-Cities TN/VA | January 2016

Persons Per Unit

Online at bjournal.com

Total Population

County Population Growth % Change 2000-2014

COUNTY

7.1

-4.4 2.6

2.1

5.9 17.8 8.6

Online at bjournal.com

1.7

0.3

2000

2010

2014

Carter

56,742

57,424

56,886

Greene

62,909

68,831

68,335

Hawkins

53,563

56,833

56,735

Johnson

17,499

18,244

17,859

153,048

156,823

157,047

17,667

18,313

17,963

Washington, TN 107,198

122,979

126,242

23,403

23,177

22,384

51,103

54,876

54,729

Sullivan Unicoi Scott, VA Washington, VA

Source: ftdd.org/regional-statistics/

January 2016 | The Business Journal of Tri-Cities TN/VA

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| FEATURES

Kathy Pierce, with Unicoi County Mayor Greg Lynch, right, speaks at a meeting concerning the CSX closure. Photo by Scott Robertson

Alliance for Business and Technology assisting former CSX employees Pierce’s empathy, experience benefit 300 who were laid off

By Sarah Colson

W

hen CSX Transportation announced it would close its Erwin, Tenn., operations, laying off around 300 employees, Kathy Pierce and the Alliance for Business and Technology (AB&T) began working to help those 300 individuals re-enter the workforce.

Pierce, AB&T’s executive director, immediately oversaw the opening of a temporary AB&T Career Center in Erwin.

The center is on ETSU property at 1413 North Main Street, and will serve until a larger site is opened later this month or in February.

“We’re going to look for approximately 4,000 to 5,000 square feet,” Pierce said.

“We’ll have a fully functioning computer lab there. We will be offering specialized 14 The Business Journal of Tri-Cities TN/VA | January 2016

classes for career readiness certification, basic and advanced computer training, academic preparation and a number of other customized training programs for the folks there in Erwin.”

The AB&T has also put in seven different applications for a total of $668,000 in Tennessee Department of Labor and Workforce Development funding, Pierce said. “I was told unofficially by the staff that they’re going to send us a check,” Pierce said in mid-December, “so we are going to be moving forward ASAP.”

Pierce has also met with leaders of the Distance and Evening Education program at Northeast State Community College to design a specialized class in college math and chemistry with the specific aim of

making those who pass it eligible to apply for positions at Nuclear Fuel Services, also in Erwin.

The CSX closure, Pierce said, was the most complicated she’s ever witnessed, mainly because of the number of different labor unions involved, each with their own bargaining agreements. “It has both complicated things and also given us an opportunity to reach out to the workers.”

Pierce maintains a positive outlook fostered by her parents, who encouraged her to go to college despite having only one high school diploma between them, and from the experience of having been laid off herself in the mid ‘80s. Pierce worked during that time for Unisys Computers in Bristol. Her job moved to Mexico, leaving Online at bjournal.com

her overqualified and unemployed.

“It absolutely devastated me because I had all these credentials,” she said. “I had done all the things I thought I was supposed to do and losing my job was really difficult. I came into this line of work as a result of that. I started with AB&T being the dislocated worker coordinator and so I had a special place in my heart for people I sat across the table from who were in the same position that I had been in previously.

So it has never been just a job. It has been a calling. I’ve had the opportunity to give back over the course of my (28) years here.

“I know what being out of a job feels like,” Pierce said. “I know what it means to a family when that happens. So we have moved rapidly to set up a service capacity in Unicoi County that had not been there before. I say to people, if I can do it, you can do it. It just takes perseverance and a little extra bit of energy.”

Pierce’s unfailingly positive demeanor is encouraging to individuals who are facing hard times, but, she said, it’s not a facade. “It’s just who I’ve Kathy Pierce always been and I’ve just tried to channel it in a way that is productive and that encourages other people,” Pierce said, adding that she’s nothing special, just someone who has a set of experiences and is doing her best to help other people as a result of that. “I’ve just done what millions of other people find themselves needing to do in the current work environment.”

Situations like the CSX closure, Pierce said, are worst-case scenarios. In the most ideal situation, AB&T help employers sustain the employees they already have.

Pierce said that she has seen workforce development evolve from what was originally narrow and not well-understood into something much more vital for the economic development and health of a region. Pierce refers to a recent survey of site selectors that states workforce development is now “recognized as the number one factor in determining business expansion, business relocation, business development and the economic health of a region.”

Because of that, Pierce at AB&T and her partners in the Tennessee Department of Labor and Workforce Development take their jobs of promoting and maintaining economic Online at bjournal.com

health of Sullivan, Washington, Carter, Johnson and Unicoi counties very seriously. And with the closing of CSX and the shift from a manufacturing-dependent workforce to a more skills-focused emphasis, Pierce and her team are making sure those in the region have all the resources necessary to provide for their families.

Some of the resources Pierce said employers are looking for in an employee these days require constantly updating skill sets, additional on-thejob training and post-secondary education.

“We focus both on people who are already in the work place who need additional skill training,” she said, “and those who are trying to get into the work place to make sure that they are able to earn those higher wages and thereby economically benefit our whole region.

We are also in the business of retaining the jobs that we have. It’s a lot more cost effective and more efficient to keep the employers that you already have in your region than it is to go out and try to recruit someone new to come in.”

At the same time, employees must take the initiative to keep themselves hirable. “It really is more difficult than it used to be,” she said.

“That’s why you have to be so focused. It’s why you have to get additional education. It’s why you really have to keep your skills sharp and be a lifelong learner. You don’t just finish school at whatever level, get a job and stop. You have to keep that focus on what can I learn, what can I do to improve myself, what can I offer to the employer, not what can the employer do for me. What benefit can I be to help my employers succeed?”

Those same questions are the ones facing the laid off CSX employees, many of whom are trying to find new jobs despite being close to retirement age. “It won’t be easy,” Pierce said. “It will take a lot of courage on their part to get involved early and to stick with it when things get a little tough, but the good news is that we and other partners in our system, folks from the Department of Labor and Workforce Development and the training providers are working on making that happen.”

Jeff Keeling and Scott Robertson contributed to this report.

January 2016 | The Business Journal of Tri-Cities TN/VA

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| FEATURES In 1965 James Pierce is named superintendent. He is literally a one-man show, with duties including marketing, recruiting, curriculum development and purchasing.

Construction had begun in 1964, and the first students were due on campus in 1966.

By the fall of 1966, 120 students are enrolled and evening classes are started with special courses for working adults. Shown is a sewing class.

1965

1969 Classes begin in the spring of 1966 with 35 students enrolled.

Six programs are offered: auto mechanics, drafting and tool design, electrical technology, machine shop, office occupations and welding. Shown is Ray Dixon, welding instructor.

By late 1969, the school has around 400 students. The state changes the name of the school to Tri-Cities Regional Vocational-Technical School.

The school adds associate degree programs in electronic engineering, mechanical engineering and chemical technology.

Northeast State hits 50

Anniversary celebration to begin January 11

By Thomas Wilson

A

U.S. education act long ago breathed life into Northeast State. The simple charge: provide “education for persons of substantially varying needs.” Through the years, there have been name changes, five presidents, several new buildings, and a thousand other transformations. But Northeast State has always lived up to that original mission of serving individuals with diverse needs. Whether a student needed a place to start, a second chance, or a boost to the next level, the college has held to its motto: “We’re Here to Get You There.”

Northeast State students have become valued employees and solid citizens. They are mechanics, welders, accountants, attorneys, nurses, teachers, police officers, physician’s assistants, office workers, entrepreneurs, engineers, programmers, and paramedics, to name a few. While it’s impossible to tell the college’s complete story with a few paragraphs and bullet points, what follows are some of the milestones Northeast State has achieved.

1960s

Northeast State grew out of the Vocational Education Act of 1963 and legislation by the Tennessee General Assembly. It was originally named the Tri-Cities Area Vocational-Technical School.

• Construction began in Blountville in 1964 with a General Studies Building and 16 The Business Journal of Tri-Cities TN/VA | January 2016

two Technical Education labs – a total of 26,286 square feet.

• In 1965, James M. Pierce was named superintendent.

• Classes began in the spring of 1966 with 35 students enrolled.

1970s

By late 1969, expansion was under way for an 18,000-square-foot addition to the school, which now enrolled about 400 students. According to news reports of the day, the construction project cost $400,000 with another $300,000 allotted for equipment.

• The expansion brought approval from the State Board for Vocational Education in November 1970 for the creation of a Technical Division. The school’s name was changed to the Tri-Cities Regional Vocational-Technical School.

• As a result, the school added associate degree programs in Electronic Engineering Technology, Mechanical Engineering Technology, and Chemical Technology. These were the first degrees of this type offered in the state, according to news reports. Enrollment was expected to grow to about 700 students over the next few years. In 1972, the school received a five-year accreditation from the Southern Association of Colleges and Schools. A 15,000-square-foot Automotive and Weld-

The first administration team: Tommy Haws, Evelyn Vires and President James Pierce.

ing building was built in 1975 and opened for classes in 1976.

• In 1978, the school’s name was changed to Tri-Cities State Technical Institute. Effective July 1, 1978, all of the school’s 16 programs became associate degree programs. At the end of the decade, enrollment had grown to 1,400 students.

1980s

As the 1980s dawned, Tri-Cities State Tech saw enrollment jump to 1,800 students. The growth was so rapid, the school had to use the old Holston Middle School for English, math, and social studies classes.

• The influx of students led to several Online at bjournal.com

Following an 18,000-squarefoot expansion in 1969, a 15,000-square-foot expansion for automotive and welding classes is built in 1975. Expansions will continue through 2015.

As enrollment rises above 1,800 in the early 1980s, more buildings are needed. The school builds an auditorium in 1982, an administration building in 1983 and a general studies building in 1985.

1978

1983

In 1978, the school’s name is changed again, this time to Tri-Cities State Technical Institute. All 16 of the school’s programs become associate degree programs. Within two years, enrollment grows to 1,400 students.

construction projects in the early 1980s.

An 8,500-square-foot auditorium (later to become part of the Student Services Building) was constructed in 1982, the 32,000-square-foot Administration Building was built in 1983, and an 8,300-squarefoot General Studies Building addition was finished in 1985.

• Dr. James Pierce retired in 1983 after 18 years at the helm of the school. Appropriately, the new Administration Building was titled the James M. Pierce Administration Building. Some 30 years later, the College’s first mascot – a bear - would carry his initials: J.P.

• On July 1, 1983, Tri-Cities State Tech officially became part of the State University and Community College System of Tennessee.

• Dr. James Owen was selected from a field of 28 candidates to replace Pierce and assumed duties on Sept. 19, 1983. During his watch, Tri-Cities State Tech received accreditation from the Commission on Colleges of the Southern Association of Colleges and Schools in December 1984.

• Other noteworthy accomplishments of Owen’s administration included the creation of a foundation for fund-raising and support in 1985, and the purchase of about 60 acres of land adjacent to the campus.

• More than 2,200 students were enrolled at the school in 1985-86.

• After three and one-half years as president, Owen left to become president of Piedmont Community College in North Carolina. Dr. R. Wade Powers, was named his replacement effective in 1987.

• A new semester system was installed Online at bjournal.com

Instructor Edwina Paul poses in a room full of brand new electric typewriters.

Following the retirement of James Pierce in 1983, Dr. James Owen takes the helm.

Tri-Cities State Tech receives accreditation from the Southern Association of Colleges and Universities in 1984.

The 1970s brought expansion in both college programs and fashion sensibilities.

in the fall of 1988 with a minimum of problems, helping students to transfer credits more easily. The college completed its self-study and received reaccreditation the same year.

services and faculty office buildings. The new buildings were unveiled July 31, 1992.

• The college also broke ground in November 1991 for the Center for Applied Technology in Gray, which opened in the summer of 1992.

1990s

• By 1993, enrollment had climbed

There’s no doubt 1990 was a watershed past 3,500, prompting the Tennessee year for Northeast State. The college Board of Regents to approve funding for a officially became Northeast State Technical 25,000-square-foot classroom/laboratory Community College, a comprehensive building. The College broke ground for the community college on July 1, 1990. project in February 1994 and the project

• The change promptly increased the was completed in 1995. It would later be school’s enrollment to 2,826, a 35 percent named the Wade Powers Science/Math increase over the previous year. To handle Building. the influx of students, the college expanded • In 1994, Northeast State landed offerings at off-campus sites in Bluff City, a significant Department of Education Elizabethton, Erwin, and Mountain City, as matching grant designed to increase the well as holding evening classes at neighbor- college’s scholarship endowment. Based ing Holston Middle School. on a two-for-one matching component, the

• In the spring of 1991, Northeast College was charged with raising $250,000 State started construction on a $5.5 million SEE NORTHEAST, 18 construction project that included student January 2016 | The Business Journal of Tri-Cities TN/VA

17

| FEATURES Owen governs the school for less than four years, and is replaced by Dr. R. Wade Powers, appointed by the Tennessee Board of Regents in 1987. Powers continues to expand the college’s offerings, enrollment and campus.

In 1991, Northeast State breaks ground on a student service building and a faculty office building on campus, as well as a Center for Applied Technology in Gray. All three buildings open in 1992.

1987

1996 In 1990, the college officially becomes a comprehensive community college, and is renamed Northeast State Technical Community College. Enrollment swells above 2,800. The college begins offering classes off-site in Bluff City, Elizabethton, Erwin and Mountain City.

NORTHEAST, CONTINUED

partnership with the City of Kingsport and Sullivan County to create the Educate and Grow Scholarship program, which provided for two years of tuition for graduating high school students. The college realized a longstanding goal in January 2002 when a new $12.8 million, 55,000-square-foot library opened its doors. The facility was dedicated in May in honor of Wayne G. Basler, a longtime supporter of Northeast State.

to achieve $500,000 in matching funds.

• By early 1995, the college achieved its $250,000 goal and was awarded the additional $500,000 grant. The amount was placed, per grant regulations, in an investment account for 20 years. The $750,000 pushed the Northeast State Foundation’s endowment to more than $1.1 million.

• Dr. Powers announced his retirement in early 1996 and was succeeded Aug. 1 by Dr. William W. Locke, who was chosen from a field of 69 candidates.

• The college celebrated its 30-year anniversary in 1996 with a day-long celebration that included tours, music, workshops, and storytelling.

• The late ‘90s also saw one of the College’s greatest dreams realized when Gov. Don Sundquist authorized funds for a 55,000-square-foot, $12.8 million library. When completed the project would increase library space six-fold and provide many improvements on the campus including new parking lots, Northeast State continues to provide sidewalks, lighting, and landscaping. opportunities for career advancement.

• Northeast State continued to grow as well, breaking the 4,000-student barrier • The footprint for the college exin fall 1999 and increasing enrollment more panded into the city of Kingsport with the than 1,000 students in a single decade. downtown opening of the Regional Center for Applied Technology on Sept. 9, 2002.

2000s

• Northeast State achieved landmark

Northeast State continued its season of success in fall 2004 when enrollment exprogress early in the decade. ceeded 5,000. Also that year, an economic

• The college posted an 18 percent study reported the college contributed $213 enrollment growth from 1995-2000, million to the regional economy between making it the fastest-growing community 1999 and 2004. college or university in the state.

• In spring 2006, construction was

• Northeast State established a started on a new $15 million humanities 18 The Business Journal of Tri-Cities TN/VA | January 2016

Following the 1996 retirement of Dr. Powers, Dr. William Locke is chosen from a field of 69 candidates to lead the college. Shortly afterward the state authorizes funding of a $12.8 million library.

Enrollment surpasses 4,000.

complex on the Blountville campus.

Building plans included the expansion of classrooms and offices for the Humanities and Behavioral/Social Sciences divisions, as well as a 500-seat theater for the performing arts. The complex was finished and occupied in 2007. The building was named the William W. Locke Humanities Complex.

• In 2007, the State Board of Nursing approved the college’s proposal to admit students into the college’s new associate of applied science in nursing degree program. It was the first associate degree nursing program approved by the state board in seven years.

• As the decade neared its close, the City of Kingsport and Northeast State realized a collaborative vision for higher education and workforce development in downtown Kingsport known as the Kingsport Academic Village.

• After 13 years at the helm, Dr. Locke announced his retirement effective June 20, 2009. He was succeeded by Dr. Janice H. Gilliam, vice president of Student Development Services at Haywood Community College in North Carolina.

• The college once again changed names on July 1, 2009, becoming Northeast State Community College to better reflect the diverse range of programs offered by the institution.

2010s

A large part of Northeast State’s direction in recent years has been determined by the Complete College Tennessee Act of 2010 – legislation which ushered in an emphasis on student performance and graduation rates in higher education. The Online at bjournal.com

Northeast State and Kingsport collaborate to create the Kingsport Academic Village: comprised at the time of the Regional Center for Health Professions, the Regional Center for Advanced Manufacturing, and the Kingsport Center for Higher Education.

Governor Bill Haslam initiates Tennessee Promise. Northeast State Community College (the word Technical was dropped from the name in 2009) enrollment surges above 6,000.

2009

2015

Following the retirement of Dr. Locke in 2009, Dr. Janice Gilliam leaves Haywood Community College in North Carolina to become president at Northeast State.

act challenged Northeast State and all community college to increase participation rates of citizens in higher education and completion.

• The act also coincided with the College’s tremendous enrollment growth. In 2010, Northeast State enrollment climbed to new heights as the College welcomed 6,775 students for the fall semester, making it the fastest growing community colleges in the TBR system.

• Dr. Janice Gilliam encouraged faculty and staff with a vision of “Access, Completion, and Community” to turn the act’s challenges into reality. The college responded to the test with a number of initiatives. Redesigned Learning Support courses, a common course numbering system to support the transfer process, and sustainability efforts to save resources and energy were just a few of the efforts.

• The Pal Barger Regional Center for Automotive Programs opened in 2012 in downtown Kingsport and currently houses the auto body service technology program.

• The Northeast State at Bristol campus opened in May 2013 at 620 State Street in downtown Bristol. The site houses the Entertainment Technology Program and offers lab and classroom space on all three floors of the facility.

• Northeast State at Elizabethton campus embarked on an expansion that will add 15,000 square feet to the campus.

The project includes new classrooms, a computer lab, and office space for a number of student-related services.

• The College welcomed the community with an October 2015 grand opening of its Johnson City campus. The campus Online at bjournal.com

Northeast State opens its Johnson City campus Aug. 24, 2015 with five classrooms, several offices, and an enrollment of 288 students. In October, additional space opens, including a multi-use classroom, a student lounge, and a learning resource lab. The facility’s science labs are expected to be completed in spring 2016, bringing the building to 38,700 square feet.

Northeast State’s total enrollment has grown to more than 6,000 students.

debuted for the fall semester with an enrollment of 288 students.

• The City of Kingsport earned a 2009 Innovations in American Government Award from Harvard University for its collaboration with the College on the Educate The college has expanded programs to imand Grow Scholarship program and the prove the workforce for area businesses.

Kingsport Academic Village.

• In 2013, Northeast State was among of the state’s 13 community colleges, 27 a select group of colleges noted by the colleges of applied technology, or other American Association of Community eligible institution offering an associate’s Colleges as a finalist for the AACC Award degree program. The scholarship pushed of Excellence in the Outstanding College/ the college’s enrollment up 4.1 percent to Corporate Partnership category.

6,082 students.

• In 2013, Gov. Bill Haslam visited

• The college started an Aviation MainNortheast State to announce $35 million tenance Technology program in fall 2013, in funding for the College’s Emerging offering a 29-hour certificate.

Technologies Complex. The largest capital

• To accompany the Tennessee campaign in the TBR system to date, the Promise program, the college initiated facility will accommodate Business and the iNortheast program in 2015. With Advanced Technologies programs. Conaid from the Northeast State Foundation, struction will commence in 2016. the Northeast State provided iPad mini

• The Tennessee Legislature passed 2 devices to Tennessee Promise students Gov. Haslam’s Tennessee Promise initiaand eligible full-time, degree-seeking tive in 2015, providing a scholarship and students. Approximately 1,800 students mentoring program for high school seniors. received the devices.

Students may use the scholarship at any January 2016 | The Business Journal of Tri-Cities TN/VA

19

| FEATURES

Area farmer Aiken elected Tennessee Farm Bureau president

By Jeff Keeling

J

eff Aiken stood outside a barn at his Bowmantown farm in the crisp December air, one of his most crucial tools in hand. Unlike many of the important implements in his agricultural career to date, this one won’t show its usefulness through a weathered combination of grease, dirt and feed.

In fact, exposure to any of those ubiquitous elements of farm life would spell big trouble for Aiken’s smart phone – and that, in turn, would put the recently elected president of the Tennessee Farm Bureau (TFB) in at least a temporary pickle.

Though he’ll miss being around the 900 acres he works with two brothers and a nephew, Aiken said last week he is “humbled and honored” at the chance to lead the largest Farm Bureau in the nation.

Aiken, who had been vice president of the organization since 2012, was elected without opposition at the organization’s annual convention in Franklin earlier this month. The 52-year-old replaces Lacy Upchurch, a Cumberland County farmer who had served five terms as president.

Aiken, a 1981 Daniel Boone High School graduate, said farmers – who experienced an interesting year weatherwise and were hit hard locally by plummeting prices for beef cattle – face important issues on a number of fronts. While he can’t do anything about commodity prices or weather, Aiken said the TFB, which represents about 644,000 family members statewide, is a critical resource for promoting and protecting the interests of farmers and rural communities, both at the state and national level.

“It’s a demanding position with a lot of travel, but my love for agriculture and the rural areas of the state of Tennessee caused me to think it’s just an opportunity that if I had it, I couldn’t pass it up,” Aiken said. “I like Washington County and I like the farm, so I hope to make it home as often as possible – at least on weekends.”

Aiken, who was Tennessee’s young 20 The Business Journal of Tri-Cities TN/VA | January 2016

Jeff Aiken, right, talks with fellow Washington County farmer Wesley Squibb while Weston Squibb, 9, looks on. Photo by Jeff Keeling

farmer of the year in 1992, will be joined in Nashville by his wife Carol. “I need her for moral support,” he said with a grin, before showing evidence of the job’s demands on his phone screen – a number on the icon for his email app showing he had more than 700 emails to sift through, with less than two hours to go before the “weekend” officially started.

“There’s a lot of stuff to think about and consider,” said Aiken, who had completed American Farm Bureau Federation training for new state presidents in Washington, D.C. earlier in the week. “I’m a little overwhelmed, just to be honest with you. It’s a major change of lifestyle already, but I am also enjoying and looking forward to the challenges and the opportunities.”

Legislation, regulation and bureaucracy are among the crops to which Aiken must tend now that he has become the eighth president in TFB’s 94-year history.

At its convention, the organization took

positions on several key issues on which Aiken, as its leader, will press for favorable legislative or governmental action.

One is related to that important tool Aiken always has close at hand.

“There are a lot of rural areas that don’t have access to reliable, dependable and affordable broadband,” he said. “It puts agricultural and rural communities at a disadvantage, and that’s one that will be worked on.”

He said the TFB also will advocate to prevent a bill that passed the state senate last year and was held up in the house, which would allow weight limits on county roads. That’s something Aiken said could affect farmers’ and loggers’ ability to get products in to their farms or deliver to market.

Underscoring transportation’s importance to agriculture, the bureau also settled on language regarding a state gasoline or fuel tax increase. It was a Online at bjournal.com

change in position, Aiken said.

“We could support a fiscally responsible state fuel tax increase, if and only if the money that was taken out of the funds under the Bredesen administration were first returned to the fund, and as long as the monies collected would go toward building and maintenance of roads and bridges in the state and nothing else.”

Between fiscal 2002 and fiscal 2007, a total of $280 million in revenues generated from the state’s 21.4-cent-per-gallon gasoline tax (18.4 cents for diesel) was transferred from the state’s highway fund to the general fund.

On an issue that affects many farmers personally, the TFB came out in favor of legislation that would allow undocumented students who are Tennessee residents to qualify for in-state college tuition. The state Senate passed such a bill 21-12 last session, but it never reached Gov. Bill Haslam’s desk after falling one short of the required 50 votes in the House. According to the National Conference of State Legislatures, 18 states allow in-state tuition for undocumented students who meet specific requirements.

“The Farm Bureau took the position that we think they should be allowed to pay in-state

tuition and get an education, primarily because we believe that a good education cures a lot of social ills,” Aiken said. “Therefore we firmly support the opportunity for anybody that wants an education to get an education.”

He’ll know a great deal more about the national positions that various state presidents and leaders will be carrying to Washington after delegates set those guidelines at the national convention in Orlando, Fla. next month. That event is also likely to see Aiken, as president of the largest single state bureau, elected to the American Farm Bureau Federation’s board of directors.

“A lot of those things will be at least related to overregulation,” Aiken said of the national platform. A “Waters of the United States” ruling by the Environmental Protection Agency – currently under a stay issued in October by the U.S. Court of Appeals for the Sixth Circuit – is under close watch.

Aiken said another likely area of discussion will center around, “concern about the public perception of antibiotic use in livestock.

There’s misconceptions out there that I would presume our resolutions would try to address, to protect the integrity that already exists on a farm but the general public doesn’t realize.”

Spend less time worrying about your bank account and more time watching your business grow.

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Online at bjournal.com

300 Sunset Drive Johnson City, TN

2681 Boones Creek Rd. Johnson City, TN

(423) 915-2200

(423) 915-2270 January 2016 | The Business Journal of Tri-Cities TN/VA

21

| FEATURES

State considering comments before updating hospital merger rules

By Jeff Keeling

A

s Mountain States Health Alliance and Wellmont Health System work toward applying jointly for a “Certificate of Public Advantage” (COPA) that would allow them to merge, possible changes in the rules governing any such merger draw nearer.

Their initial goal for filing a merger application two months past, Mountain States and Wellmont now say they expect to file early this year. The systems’ Sept. 16 letter of intent with the Tennessee Department of Health said they expected to officially apply for a COPA in early November. The COPA, and similar arrangements in Virginia, is intended to regulate mergers so disadvantages to consumers associated with reduced competition are outweighed by advantages that wouldn’t be possible without a merger.

Several interested parties submitted comments in writing, and personally at a Sept. 25 rulemaking hearing in Nashville.

Those comments related to the final rules that will govern any COPA granted in Tennessee. Full written are at tn.gov/health/ article/certificate-of-public-advantage.

Malaka Watson, a lawyer with the Department of Health, authored the emergency rules (which expires Jan. 10) and moderated the hearing, which included additional department representatives.

Brant Kelch, the CEO of Highland Physicians Inc. (HPI), one of the region’s largest independent physicians’ groups, said his membership has “a diversity of opinions” about a merger. HPI operates throughout the Wellmont-MSHA service area.

“The opinions range from ‘oh my God, the sky is falling’ to ‘this is really going to be good,’” Kelch said. “Probably most of the people are in the middle, and are concerned, and think that typically monopolies are not good unless you are one, but do believe that this could be a good one for the community and will be a good one if it’s done right.”

HPI’s written comments make clear the group’s multiple areas of concern.

HPI’s letter notes in its introduction that the proposed merger, “is of major concern to our members and other independent providers.” HPI added that due to the market concentration the merger would bring, 22 The Business Journal of Tri-Cities TN/VA | January 2016

independent providers, “need meaningful protections to ensure this concentrated market power does not reduce competition or otherwise impede the innovation and entrepreneurship for which our members are known.” It provides 14 specific sets of “comments for consideration” tied to specific sections of the governing rules.

One concerns the emergency rules’ requirement that the hospital systems explain how their cooperative agreement will assure that providers not included in the merger retain their ability to operate independently and competitively. The section urges that the final rules include a request for explanations as to how this will be assured.

The section also warns of a “deep concern” that a merged system, without proper restraints built into the COPA, could use its employed physicians as essentially “loss leaders” to capture patient referrals to their inpatient facilities and ancillary services. And it expresses concern that a merged system could treat independent physicians unfairly, and should be regulated as to granting of medical staff privileges and access to operating and procedure rooms, among other things.

The FTC warned of a high degree of anticompetitive risk when mergers occur in concentrated health care markets. It announced its readiness to weigh in as the state considers the merger’s implications – and it emphasized its general concern, “about COPA programs and other antitrust exemptions.”

The commission noted that the Department of Health must consult with the state attorney general’s office as it evaluates potential reduction in competition, and that the AG’s office, “may consult with the FTC during this process.” The letter noted as well that, “in our experience, mergers between close competitors in highly concentrated health care provider markets are more likely to result in significant consumer harm than a merger in a less concentrated market.”

In its own consideration of mergers, the FTC said, against the “likely anticompetitive harm,” it assesses the, “efficiencies and procompetitive benefits likely to result from

a merger.”

Using information from merging parties and outsiders, it credits as counterbalances to anticompetitive effects only efficiencies unlikely to be achieved Brant Kelch without a merger.

Those must be “substantiated and nonspeculative,” and also likely to be passed through to consumers. “This methodology is appropriate when applying a ‘clear and convincing’ evidentiary standard, as the Tennessee Department of Health is required to do,” the FTC wrote.

The federal government may not have much authority in the matter. The COPA is designed to provide “state action immunity” from investigation and possible prosecution by the FTC, with its basis in the 1943 “Parker v Brown” Supreme Court decision.

It articulates a policy to displace competition, and it provides for active state supervision. The FTC’s three-page letter suggests such laws shouldn’t be necessary if health care mergers are truly “procompetitive” – having results that improve quality, reduce costs and improve patient access to services.

“The FTC only seeks to prohibit under the antitrust laws those collaborations that are likely to undermine these goals and result in harm to consumers, including higher prices without any offsetting quality improvements,” the letter says. “Consequently, efforts to shield such conduct from antitrust enforcement are likely to harm Tennessee health care consumers, no matter how rigorous or well-intentioned the regulatory scheme may be.”

Read an expanded version of this story at bjournal.com/rulecomments. An article on the emergency rules is at bjournal.com/ rules-governing-hospital-merger-published.

Online at bjournal.com

| FEATURES

KOSBE Awards honor entrepreneurs

By Scott Robertson

The 2015 class of KOSBE Award winners

T

he Kingsport Office of Small Business Development and Entrepreneurship (KOSBE) feted 14 area businesses at the 2015 KOSBE Awards Dec. 10 at the MeadowView Conference Resort and Convention Center. In addition to presenting awards to small business owners and operators, KOSBE each year presents an interview with a successful businessperson from the region. This year’s keynote speaker was Steve Johnson of Johnson Commercial Development. Johnson was interviewed by Jessica Larkin, news anchor at ABC19 / WKPT-TV.

Larkin asked Johnson what maxims he held to in operating a successful business. “As a team, whether in a locker room, a board room or an office,” Johnson said, “establish a goal. Obviously, the question of ‘what are we trying to accomplish here?’ is question one. Everyone agrees to it and believes in it. It’s established.

“No. 2 is roles,” Johnson continued. “Everybody on your team has a job to do. It’s critical for every business owner to make sure everyone knows and does their job. In football, the tight end can’t do what the fullback does and the quarterback can’t do what the free safety does. Which leads to No. 3, which is production. This is obviously critical. At the end of the day, did you get it done? Goals are great and roles are great, but did you get the job done? That can be difficult, because the attributes that lead to production are intrinsics. You can’t put a dollar value on them. You can’t necessarily hire them. It’s hard to coach, hard to teach. This person either has them or they don’t. These are things like work ethic, dedication, desire, drive, passion, energy and attitude. Those are what make people productive. Playing sports, I had to have all

Online Online at at bjournal.com bjournal.com

2015 KOSBE Award Winners Young Entrepreneur JWP Rentals Innovation MedFit Center New Business East Coast Wings Business Excellence Under 10 Employees TUC Technologies Commercial Industrial Mullins Company Woman-Owned Brushstrokes N’ More Franchise Subco East

Small Manufacturing Per Vivo Labs Ecopreneur Vintage Timbers Business Excellence 10+ Employees Martin Dentistry Veteran-Owned Tele-Optics Gazelle Premier Pharmacy IMPACT Jeff Lane Caped Crusader Angela Baker

those things to the tenth degree to be successful. Those same things are being applied today.

“The last thing,” Johnson said, “and maybe the most critical is persistence. We all face challenges and it’s easy sometimes to get discouraged and throw your hands up. But you never give up.

You keep fighting, scratching and clawing. In my business, ‘no’ doesn’t mean no until they say, ‘hell no.’”

“Whether you’re in sports, in business or tending to your family,” Johnson said, “you can apply these four things to whatever you do.”

January January 2016 2016 || The The Business Business Journal Journal of of Tri-Cities Tri-Cities TN/VA TN/VA

23

| DEPARTMENTS ON THE MOVE Administration Bonnie Brown and Katherine Tassell have joined the staff of Tusculum College in the Office of Enrollment Management Bonnie Brown and Marketing.

Brown has been named admission representative and will work with potential students and advise them through the college application and selection process.

Katherine Tassell In her role she will conduct campus tours, as well as promote the college through travel and telecounseling.

In working with prospective students, Brown can draw on her own experiences as a Tusculum student. She earned a bachelor’s degree in English literature from Tusculum College in 2014.

Prior to joining the Tusculum staff, Brown worked at Mountain View Bulk Foods and at the Johnson City Medical Center.

While attending Tusculum, she gained experience in working with “The Tusculum Review” and with the Tusculum Theatre Box Office.

Tassell, a 2010 graduate of Tusculum, has been named enrollment representative for the Tusculum College Graduate and Professional Studies program. She is also the owner of KFit, LLC, located in Greeneville. KFit is an in-home personal training business. During her time at Tusculum, she was a member of the Tusculum College cross country team.

In her new role, Tassell will work with potential students of the Graduate and Professional Studies program through all aspects of the enrollment process. She will serve as a recruiter, but also as a resource for anyone interested in finding out more about continuing or starting their path to an advanced degree.

in the health care industry, including four years as director of nursing at another Asbury Place campus and most recently as interim director of nursing at Asbury Place Kingsport.

Christie Pohto

“Christie’s clinical and organizational skills are exceptional, and her service as interim director of nursing was a wonderful success,” said Marjorie Shonnard, chief operating officer for Asbury Inc. “With her commitment to promoting teamwork among the staff and quality of life for our residents, Christie is a perfect fit for our organization. We are glad to have her on our team.”

Pohto said she is particularly proud to be part of a nonprofit organization that gives back to its community of residents and the community at large. Pohto is a two-time graduate of East Tennessee State University, having earned her Bachelor of Science in nursing in 2006 and a Bachelor of Science in human development and learning in 2001.

Chamber of Commerce for 10 years before returning to the Tri-Cities area.

“We are pleased to have Kristi join the Airport Authority’s management team,” said Patrick Wilson, airport executive director. ““Kristi’s experience working with chambers of commerce, economic development and her familiarity with our region will prove valuable in her new role with the Tri-Cities Airport Authority.”

Asbury Place continuing care retirement communities has named Christie Pohto, director of nursing for its Kingsport campus. Pohto has a 10-year career

Sylvia Musgrove has been named senior project manager for The Corporate Image (TCI), an integrated communications firm headquartered Sylvia Musgrove in Bristol, Tenn.

Musgrove’s responsibilities include client projects that involve research, writing and media relations. She will develop news releases, feature stories and media pitches, and assist in the planning and execution of news conferences and other events.

Musgrove comes to TCI with more than 20 years of experience in corporate Marketing communications, marketing and events

The Tricoordination. She has worked with King Cities Airport Pharmaceuticals, King University and Authority welcomes Gracetree Investments, and most recently Kristi Haulsee as served as manager of communications for the new director of Bristol Motor Speedway. marketing and air A native of Bristol, Va., Musgrove service development. holds a bachelor’s degree in English from Kristi Haulsee She replaces Melissa King University in Bristol, Tenn., and Thomas, who had held has served on boards and committees for the position since 1996. Thomas is leaving multiple area organizations, including the airport to take a more active role in her Healing Hands, the Buechner Institute and family business in Johnson City. Haulsee the YWCA. will be responsible for marketing, public

“I am excited about this opportunity relations and working with airlines to retain to be a part of the team at TCI,” Musgrove and recruit service. says. “This company has been an integral

Haulsee comes from a chamber of part of the Tri-Cities region for more than commerce and economic development 20 years, and I’m eager to play a role in the background, most recently as a business company’s continued success.” development specialist for Bristol, Tenn.

Founded in 1993, TCI is an integrated Haulsee holds a bachelor’s degree in public relations and marketing firm that communications from Appalachian State specializes in strategic corporate comUniversity. She is from Kingsport and munications. TCI’s marketing division, worked for the Kingsport Convention and Corporate Marketing, designs, develops Visitors Bureau and Kingsport Chamber and implements targeted marketing and of Commerce for six years. She relocated advertising strategies for clients. to Chattanooga and was vice president of Member Services at the Chattanooga Area SEE ON THE MOVE, 26

24 The Business Journal of Tri-Cities TN/VA | January 2016

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| DEPARTMENTS ON THE MOVE, CONTINUED

Our long-term relationship with John and the Mitch Cox Realtor team and their reputation in the community made our decision fairly simple. Their knowledge and expertise were very instrumental in this process, which made it easy for us.

They did a great job.

Will Kelly,

VP and Chief Administrative Officer at NN, Inc.

Since 1979, Mitch Cox Realtor has provided strategic and comprehensive commercial real estate brokerage services in Johnson City, Kingsport, and Bristol. Contact us today.

Sales

Nash and Powers has added Kris Belcher, commercial insurance representative, to its insurance team. The Kris Belcher Bristol, Tenn., native will be handling property and casualty insurance. Prior to joining Nash and Powers, Belcher worked at both Cintas and Dex Media establishing long-term business relationships. “The Nash and Powers team is very excited to have Kris join us,” said Jud Powers, co-founder of the insurance company. “He has an excellent sales background and his personality and enthusiasm are sure to be a great asset.” Nash and Powers Insurance is a customer-focused insurance agency known for providing business insurance and risk management solutions.

Management

Adam Maurer has been named general manager of the Millennium Centre in Johnson City. Maurer has 20 years experience working in retail and hospitality Adam Maurer sales environments. Most recently Maurer was the merchandise and operations manager of Sam’s Club in Knoxville where he comanaged a $98 million facility. He has been involved in marketing and membership managerial positions within Sam’s clubs in Tennessee and Virginia.

“We are excited to have Adam as a valuable member of the Sodexo team in Johnson City” said Sean Anderson, vice president operations for Sodexo, which manages the 25,000-square-foot, city-owned facility. Dr. Jon Smith, board chair of the Public Building Authority of Johnson City added, “We are pleased to welcome Adam, and are confident he will expand our business and further strengthen partnerships with our clients and the community.”

“I am thrilled to be part of the team at the premier meeting venue in East Tennessee,” Maurer said.

(423) 282-6582 • mitchcox.com 26 The Business Journal of Tri-Cities TN/VA | January 2016

AWARDS & ACHIEVEMENTS Bristol Motor Speedway’s Caldwell earns Promoter of the Year

Bristol Motor Speedway General Manager, Jerry Caldwell, was recently named Speedway Motorsports Inc.’s Promoter of the Year.

The Promoter of the Year award is presented by Speedway Motorsports President and CEO Marcus Smith to the general manager who best displayed the creativity, innovation, leadership, planning and execution that are fundamental to the company’s success.

Caldwell was honored for outstanding achievement promoting both of Bristol Motor Speedway’s 2015 NASCAR event weeks, plus events in Nashville with Dale Earnhardt Jr., Regan Smith and Old Crow Medicine Show to promote the Food City 500’s new April race date and the Steven Tyler concert that revved up the August Night Race. Caldwell also spearheaded efforts to promote the 2016 “Battle at Bristol” between Virginia Tech and Tennessee, billed as college football’s biggest game ever. In addition, Caldwell announced plans for Colossus, the world’s largest outdoor, permanent, center-hung digital display, currently under construction and scheduled to make its debut in April.

“I’m truly honored to accept the Promoter of the Year award on behalf of all the talented and hard-working team at Bristol Motor Speedway,” Caldwell said. “It’s been an incredible year for the team and I’m grateful that Bruton and Marcus take the time to recognize the efforts of others.”

Eastman honored as one of the best places to work in 2016, a Glassdoor Employees’ Choice Award Eastman has been honored with a Glassdoor Employees’ Choice Award, recognizing the Best Places to Work in 2016. The company ranked 11th in the large business category.

The Employees’ Choice Awards program, now in its eighth year, relies solely on the input of employees, who elect to provide feedback on their jobs, work environments and companies via Glassdoor. This is the third consecutive year Eastman has received the award.

On Glassdoor’s site, current and former employees of companies worldwide can share insights and opinions about their work environments by sharing a candid company review of what it’s like to work at particular jobs and companies. Employees are asked to rate their satisfaction overall and with key factors like Online at bjournal.com

career opportunities, compensation, benefits, work/life balance, senior management, and culture and values.

The Best Places to Work are determined using company reviews shared by U.S.-based employees between Nov. 3, 2014 and Nov. 1, 2015. To be considered for the large category, a company must have at least 1,000 or more employees and have received at least 75 company reviews from U.S.-based employees during the window of eligibility. The final list is compiled based on Glassdoor’s proprietary algorithm, and takes into account quantity, quality and consistency of reviews.

The complete list of the Glassdoor Best Places to Work in 2016 can be found at glassdoor.com/Best-Places-to-WorkLST_KQ0,19.htm.

services of B.E. Smith executive search firm.

More than 100 candidates expressed an interest in the position. The candidates were screened by the search firm and committee, until two finalists were recommended to Mountain States President/CEO Alan Levine and Washington County CEO Melody Trimble. Niswonger Children’s Hospital benefactor Scott Niswonger also participated Lisa Carter in the interviews of the finalists as a representative of the donor community which has been so important to Niswonger Children’s Hospital.

“The process was very competitive, and Lisa Carter stood out as someone who had both experience and passion for Niswonger Children’s Hospital,” said Trimble. “Certainly, there were incredMED BRIEFS ibly strong candidates, and many of them will make fine CEOs, Carter named CEO of Niswonger Children’s Hospital but Lisa’s passion and unique understanding of the region were

Mountain States Health Alliance officials announced recently impressive to the committee and to our leadership. We have that Lisa Carter, RN, MSN, NE-BC, has been named Chief Execu- found the person we can all rally around to take Niswonger to the tive Officer (CEO) of Niswonger Children’s Hospital. Carter has next level.” been serving as interim CEO for Niswonger Children’s Hospital

During her tenure as chief nursing officer for Niswonger and since September and previously served as vice president and Johnson City Medical Center (JCMC), the hospital achieved 99th chief nursing officer for Niswonger and for Johnson City Medical percentile in patient satisfaction for the family birth center and Center. pediatric emergency department. Carter also recently led the

Officials from Mountain States Health Alliance formed a JCMC trauma department to successful state re-designation for search committee composed of community leaders and physilevel 1 services with commendations. cians to lead the process of finding a new CEO, and engaged the SEE MED BRIEFS, 28

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| DEPARTMENTS MED BRIEFS, CONTINUED

“Lisa has a real passion for the children in our region, and this passion will inspire her to lead the children’s hospital for all the right reasons,” said Levine. “She earned this position. She competed with some exceptional talent from all over the nation, but in the end, she stood out as absolutely being the right person and the best fit. We are proud of Lisa.”

Carter first joined the team at Niswonger Children’s Hospital in 2001 after experiencing children’s health care from the patient’s perspective. Following a high-risk pregnancy, she delivered a premature baby and spent several weeks with her son in a neonatal intensive care unit. It was this occurrence that inspired her to focus on children’s health care.

“I was amazed by how well my baby was cared for,” Carter said. “I will always be an advocate for our team members and our families, because I’ve experienced the blessing of Niswonger Children’s Hospital from the patient’s perspective.”

“I am pleased with the process that led to Lisa’s selection, and with the quality of candidates we attracted,” said Niswonger.

“Anyone who is asked to contribute to the future of Niswonger Children’s Hospital should be pleased and confident that their resources are being placed in the hands of someone who is doing it for the right reasons, was selected for the right reasons, and has the competence and passion to demonstrate results. I know we are in good hands.”

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| THE LAST WORD

When it comes to health care reform, we’re all frogs – and scorpions

By Jeff Keeling

A

recent news release from a lobbying group for health insurance companies regarding the proposed Mountain States Health Alliance-Wellmont Health System merger brought to my mind the fable of the frog and the scorpion.

In the story, a scorpion and a frog encounter each other on a stream bank. The scorpion asks the frog to carry him across the stream on his back, since he can’t swim. The frog, its self-preservation instinct kicking in, responds with a highly appropriate question: “How do I know you won’t sting me?” The scorpion answers, quite logically, “because if I do, I will die, too.”

Convinced by such a logical response, the frog agrees and they set out. Midway across the stream, the scorpion stings the frog, who almost immediately feels paralysis setting in. With both creatures about to drown, the frog asks the scorpion, “why?”

The scorpion replies, “it’s my nature.”

When it comes to the hospital systems and the lobbying group (America’s Health Insurance Plans), I can’t say who is the frog and who is the scorpion.

AHIP released a report Nov. 13 “from leading economists” predicting a MSHA-Wellmont merger will increase costs and limit choices for consumers. I suppose it would consider itself the frog, being asked by the MSHA-Wellmont scorpion to help the system cross the river of health care reform.

On the other hand, the hospital systems – who quickly pooh-poohed the AHIP report – have dealt with plenty of pointed behavior from the insurance companies over the years, and particularly since the advent of Obamacare. Both systems’ financial folks told me last month that a rise in high-deductible plans among moderate and middle-income patients is driving a rise in delinquent accounts.

Those $2,500 and $3,000 deductibles, where they used to be $250 or $500, are hurting not just

30 The Business Journal of Tri-Cities TN/VA | January 2016

the hospital systems’ finances. They’re also causing financial hardship and all the stress that accompanies it for many families not just in this area but nationwide.

In fact, one could argue consumers/patients best fit the role of the frogs in this tale, with multiple scorpions piling on their backs – insurance companies, hospital systems, medical device and pharmaceutical makers and other interest groups who have profited handsomely from fee-for-service medicine and now want to reach the other side of the reform river as intact as possible.

I would suggest, however, that all the players in this game are both frogs and scorpions. By allowing health care costs to consume an ever-increasing portion of our economy and our incomes, we have created an unsustainable mess on this side of the “river.” Consumers are as much to blame as anyone, having happily come along for the ride as we created a system with little to no accountability for our own physical wellness. Wait until you’re sick, go hand the provider a piece of plastic, and let others sort out the details. That’s what insurance is for, right?

So now, we’re all tempted to respond out of our natures. The insurance companies blast the hospital systems. The medical device companies lobby for elimination of the 2.3 percent excise tax on their products. Hospital systems attempt to merge, sell out or buy smaller fry to achieve scale and leverage. Consumers pine for the good old days and keep sitting on the couch eating processed food.

The fact is, we all need to get to the other side of the river. To get there, everyone’s behavior and approach will have to change – that of doctors and hospitals, insurance companies and drug makers along with that of consumers.

Perhaps, rather than a thousand attempted journeys across the river with frogs carrying scorpions, we need to build a boat that can carry us all across. Everyone will have to give a little when it comes to the boat’s features so we can all fit in together, and everyone will have to be willing to pull on the oars – together. It’s time to start getting in shape so we’ll be able to enjoy life on the other side.

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Quality is no accident.

Congratulations to the doctors, nurses and other health professionals who make our hospitals great.

1 in nation

#

Top 10% in nation

for medical excellence in interventional carotid care at Holston Valley

for patient satisfaction in overall medical, surgical and hospital care at Hawkins County Memorial

1 in state

#

for medical excellence in joint replacement at Bristol Regional

Top 100 in nation for medical excellence in heart attack treatment, joint replacement and trauma care at Bristol Regional for patient safety in heart attack treatment, interventional carotid care and neurological care at Holston Valley

for medical excellence in cardiac care, neurological care and heart attack treatment at Holston Valley for medical excellence in cardiac care, overall medical care, major orthopedic surgery, pulmonary care and stroke care at Bristol Regional for patient safety in cardiac care, gastrointestinal hemorrhage, heart attack treatment, joint replacement, orthopedic care, pneumonia care and trauma care at Bristol Regional for patient safety in pneumonia care, trauma care and vascular surgery at Holston Valley

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2016 CareChex速

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