Augus t201 7
SPECIAL SECTION:
WHO’S WHO – Business Professionals
Featured in the 2017 Annual Report – Biggest Issue of the Year! Be recognized as a leader in your industry and be seen by more than 25,000 CEOs and executives. Plus, the Annual Report will be distributed to more than 1,500 Annual Event guests at the Bayfront Convention Center. Read by more than 25,000 key decision-makers! Distributed throughout Pennsylvania, eastern Ohio and western New York. Displayed yearlong at the Association’s Conference Center. Digital version that links directly to your company’s website!
Banking
Nonprofit L. Kolivoski, MBA Name: Denise Director Title: Executive e on National Allianc Company: The I) of Erie County (NAM Mental Illness es Provided: Products/Servic and tion educa Mental health pment programs workforce develo
mation: Contact Infor Email: rg denise@namierie.o Phone: 814/456-1773 Address: , Suite 105 1611 Peach Street Erie, PA 16501
Education: n University MBA from Ganno Associations: Professional iation; Business Assoc Manufacturer & y ors, the Erie Count Board of Direct Human Services Department of itions: Awards/Recogn The Foundation and Erie Community unity rship’s Comm Nonprofit Partne 2015 and two Report Award in unity s for the Comm additional award Advertising the from Report 2015 , and two Telly Association of NWPA s for Excellence (Pennsylvania) Award Fabulous NAMI’s in Marketing for Boas are Back” Golf Outing, “The ) promotion (2016
mation: Contact Infor Email: NC.com Kenneth.slaney@P e: Phon or 814/871-9234 78 toll-free 888/438-78 Address: 901 State Street Erie, PA 16501
pnc.com
D. Slaney, CPA, CFP Name: Kenneth ry President – Fiducia ement Title: Senior Vice Manag for PNC Wealth Market Director lvania Market in Northwest Pennsy Bank Company: PNC : Slaney directs and Products/Services y function within the g oversees the fiduciar lvania market, ensurin Northwest Pennsy of fiduciary activities on consistent executi ions, policies fiduciary regulat within legal and sible He is also respon full and procedures. ies to deliver the for executing strateg y platform in order to the breadth of the fiduciar y business and assure grow the fiduciar experience. highest level of client from raduate degree Education: Underg MBA from the and Clarion University rgh. He is a certified University of Pittsbu certified financial and public accountant planner. nt of ations: Preside Professional Associ trustee g Council of Erie; rs of the the Estate Plannin Board of Directo of the Metropolitan former trustee of the Erie; r volunteer YMCA of Greate nity Foundation; North East Commu Growth & Chamber the on Erie Regional er Committee and Partnership’s Chambg and Program Review nity United Way’s Fundin president of Commu ve committee; past of North East; Executi r of Nursing Services r of the Erie Chapte d Public Committee membe Certifie of e Institut Erie. the Pennsylvania te of Leadership Accountants; gradua s: Earned BEST Awards/Recognitionsales performance onal Award for excepti for PNC’s highest and nominated Performance Award.
namierie.org
Business Services
Automotive ll Name: Scott Bonne Title: Owner ll’s Auto Group Company: Bonne Provided: es ervic Products/S a reputation based Scott Bonnell has lifelong passion on quality and a of er you’re in need for cars. Wheth creating the street collision repair, s, looking to have rod of your dream hield replaced your cracked winds vehicle, new a for t or in the marke line of companies Bonnell and his d. For more has you covere on, Bonnell’s Collisi information on Bonnell’s Auto Bonnell’s Rod Shop, ll’s Auto sales, Glass and Bonne onnellsauto.com. please visit www.b mation: Infor ct s: Conta Association Professional Business Email: Manufacturer & lcollision.com Member for Auto sbonnell@bonnel Association, Board Charities Racers for Kids Phone: itions: cogn Awards/Re 814/835-4351 Body, I Car Auto ved AAA Appro ed, AAA Approved Address: Gold Class Certifi Street 2570 West 26th Auto Glass Erie, PA 16506
bonnellsauto.com
Name: Erin Green Title: President Services, LLC Company: Verify es Provided: Products/Servic of trained Verify! is a team lizing in the professionals specia ercial-related comm management of phone, Internet, ing expenses includ electric. cellular, gas and Associations: al ssion Profe member and Founding board of the Innovation current secretary member Collaborative. Active Chamber Area of the Venango Erie Regional the erce, Comm of th Partnership Chamber and Grow ittee, the Comm y Small Business Crawford Count Meadville-Western erce, and the mation: Chamber of Comm nt Contact Infor Exchange. Curre Pittsburgh Social panel coordinator A Advanced ATHEN r at the Erie Email: ervices.net and business mento erin.green@verifys ator. Technology Incub gnition: Phone: Awards and Reco rLink Program 1-800-400-7180 2014 ATHENA Powe t for finalis 2016 ent, recipi ess Award Address: itment to Erie Busin or fewer Comm St. ike Turnp 706 Service - 50 for Community t mentee at the Waterford, PA 16441 employees, curren Incubator. Erie Technology
verifyservices.net
Who’s Who in...
LEGAL • BANKING • REAL ESTATE • EDUCATION • FINANCE • STAFFING • NONPROFIT • HEALTH/MEDICAL • INSURANCE • SERVICE • TECHNICAL • MANUFACTURING • HOSPITALITY • TRANSPORTATION • CONSULTANTS • CONTRACTORS • ADVERTISING/MARKETING • AND MORE!
Professional Listing $425
Please submit: - High-resolution photo and company logo (300 dpi or higher) - Responses to “fast facts”: name, title, institution, products/services provided, education, professional associations and awards/recognition.
PROFILE RESERVATION DEADLINE: Wednesday, August 16, 2017 PROFILE MATERIALS DUE: Wednesday, August 23, 2017
ADVERTISING CONTACT:
David Thornburg • dthornburg@mbausa.org • 814/833-3200 • 800/815-2660 Manufacturer & Business Association • 2171 West 38th Street • Erie, PA 16508
BUSINESS VOL. XXX NO. 8 | AUGUST 2017
MAGAZINE
SPOTLIGHT Q&A:
HOW THE ERIE VA MEDICAL CENTER IS SUPPORTING VETERANS, FAMILIES A LEADER IN INNOVATIVE PROGRAMS FOR HEALTHIER EMPLOYEES, MORE PRODUCTIVE EMPLOYEE CAREGIVERS
TIPS FOR IDENTIFYING RETURN-TO-WORK OPTIONS
TWO BIG EVENTS. ONE GREAT BIG CELEBRATION! Don’t miss your opportunity to be a big part of the fourth annual Manufacturing Day celebration.
MFG SHOWCASE EVENT (8 a.m. – 1 p.m.): Our kickoff event gathers more than 2,000 students, teachers, administrators, policy and industry advocates into our Exhibit Hall to explore numerous hightech exhibits and interactive demonstrations, including 3D printing, robotics, CNC machining, drone technology and more! Plus, this year’s event offers even more cutting-edge breakout sessions for attendees to interact with a diverse group of industry experts and learn about the high-paying jobs available in a variety of manufacturing industries.
MBA ANNUAL EVENT (Starts at 5 p.m.): Our evening gathering, which includes more than 1,000 business and community leaders, begins with a two-hour networking and cocktail reception inside the Exhibit Hall, giving ample opportunity for sponsors and exhibitors to reach some of the most influential business people in our region. We believe that by working together, we can promote the importance of a robust and innovative manufacturing industry — the most powerful force behind our nation’s economy, which continues to provide outstanding career opportunities for our young people.
BE BIG! Please consider joining this year’s Manufacturing Day Celebration as a sponsor, exhibitor or both! We have a variety of packages designed for every interest and budget. Please contact Patty Welther at pwelther@mbausa.org or Lori Joint at ljoint@mbausa.org for more information.
SPONSORED BY:
FEATURES FEATURE STORY | WHAT’S INSIDE
3
WORK AND CAREGIVING How Employers Can Make an Impact
COVER STORY | LOCAL PROFILE
4
HIGHMARK Company representatives share how one of America’s leading insurers is finding new ways to enhance its benefits model that assists members — including their caregiving employees and covered family members.
SPOTLIGHT Q&A | RESOURCES
7
DEPARTMENTS
SPECIAL SECTION
12
BUSINESS BUZZ
EVENTS & EXTRAS
13
PEOPLE BUZZ
17
HR CONNECTION
18
LEGAL Q&A
WHAT’S NEW
21
EDITORIAL
NETWORKING & MORE
HEALTH MATTERS | SOLUTIONS
9
AWARDS AND PROMOTIONS
WORKPLACE TRENDS
GET ANSWERS
John Gennaro, executive director of the Erie Veterans Affairs Medical Center, talks about how the Erie VAMC is supporting veterans and their families with caregiving responsibilities.
READ ON THE GO! For the most current Business Magazine updates, visit mbabizmag.com
How population health management can save you big money. Marion McGowan, Ph.D.
LEGAL BRIEF | PLANNING
11
Why you should know the benefits of personal care arrangements. Shaun Adrian and Matthew Wachter
ON THE HILL | UPDATE Executive Editor Karen Torres ktorres@mbausa.org Contributing Writers Shaun Adrian Marion McGowan, Ph.D. Matthew Wachter
Feature Photography Highmark Additional Photography iStockPhoto.com Casey Naylon
Advertising Sales David Thornburg 814/833-3200 dthornburg@mbausa.org
15
Design, Production & Printing Printing Concepts Inc. printcon@erie.net
Guest columnist Adam Long of McNees Wallace & Nurick in Harrisburg addresses whatever happened to the new FLSA overtime regulations.
On the Cover: Through its new reimbursement model and other exciting initiatives, Highmark is taking an active role in improving quality of care and coverage that can benefit employers and their employees, especially those taking on costly caregiving roles. See page 4 for full story. Mission Statement: The Manufacturer & Business
Association is dedicated to providing information and services to its members that will assist them in the pursuit of their business and community interests. – Board of Governors
Manufacturer & Business Association 2171 West 38th Street | Erie, Pa. 16508 814/833-3200 or 800/815-2660 www.mbausa.org
© Copyright 2017 by the Manufacturer & Business Association. All rights reserved. Reproduction or use of editorial, pictorial or advertisements created for use in the Business Magazine, in any manner, without written permission from the publisher, is prohibited. Unsolicited manuscripts cannot be returned unless accompanied by a properly addressed envelope bearing sufficient postage. The magazine accepts no responsibility for unsolicited manuscripts or artwork. The Business Magazine and Manufacturer & Business Association do not specifically endorse any of the products or practices described in the magazine. The Business Magazine is published monthly by the Manufacturer & Business Association, 2171 West 38th Street, Erie, Pa. 16508. Phone: 814/833-3200 or 800/815-2660.
mbabizmag.com • AUGUST 2017
1
See the Difference, Choose HealthSouth When you think about it, no two things are really the same. That goes for rehabilitation programs too. And no one knows that better than HealthSouth Rehabilitation Hospital of Erie. We are licensed to give the most intensive level of rehabilitation services recognized by Medicare. Our physicians* and therapists plan a personalized comprehensive rehabilitation program to get you back on the road to recovery. Rehabilitation can make a real difference following an illness or injury. Schedule a tour and see the difference a higher level of care can make. * The hospital provides access to independent physicians.
A Higher Level of Care® 143 East Second Street • Erie, PA 16507 814 878-1288 • healthsoutherie.com ©2017:HealthSouth Corporation: 1068073
On behalf of Mercy Center for Women, we wish to thank the Roar on the Shore® for choosing Mercy Center for Women as its 2017 charity. Mercy Center for Women is grateful to the sponsors, riders, volunteers and everyone for supporting our mission. The Mercy Center for Women was established in 1994 by the Sisters of Mercy. Our mission embraces women and children faced with homelessness, addiction, domestic violence and mental illness. For 23 years, our staff and volunteers have walked this difficult journey with our residents to the road of recovery. Without the support of our community, we cannot fulfill the hopes and dreams of those we serve. The Roar on the Shore® gave us the opportunity to continue the journey, empowering women one day at a time.
2
AUGUST 2017 • mbabizmag.com
THANK YOU ROAR ON THE SHORE®!
FEATURE STORY | WHAT’S INSIDE
Work and Caregiving
HOW EMPLOYERS CAN MAKE AN IMPACT Human resource departments typically work with employees on many issues that may affect their work productivity. There are programs for drug and alcohol abuse, domestic violence and illness, but today, more and more companies nationwide are directing their HR departments to provide resources, education and group help for a wide range of caregiving issues. And it makes financial sense.
According to recent research, about 17 percent of U.S. full-time workers act as caregivers. They report missing an average of 6.6 workdays per year, which amounts to 126 million missed workdays each year. In 2011, 36 percent of caregivers missed one to five days while 30 percent reported missing six or more days. Employees with caregiving responsibilities cost their employers an estimated 8 percent — an additional $13.4 billion per year — more in health-care costs than employees without caregiving responsibilities. Research indicates that many employers would be willing to offer caregiving support services, if only they were aware of the need. The National Alliance for Caregiving, for one, estimates that half of working caregivers are reluctant to tell their supervisor about their caregiving responsibilities. According to a Gallup poll, employers can help by providing: • An employee assistance plan to promote discussions about emotional distress experienced by the working caregiver;
• Access to health counselors or “ask a nurse” for information on the care receiver’s condition; • Access to counselors or others to make referrals and give advice about caregiving facilities. The Society for Human Resource Management (SHRM) also considers workplace flexibility a “dynamic relationship defining how, when, and where work gets done as well as how careers are organized — that works for both the employer and employee,” noting that it is an important business strategy. For instance, according to SHRM, one of every five employees provides eldercare — a number that will increase to almost half of the workforce over the next several years.
— including their caregiving employees and covered family members. In addition, we’ll hear from John Gennaro, recently appointed executive director of the Erie Veterans Affairs Medical Center, about the numerous services that are available to veterans and their caregivers in the region. There are numerous benefit options that can assist employees and their families with the issues associated with caregiving. Contact the Manufacturer & Business Association’s HR Services Division at 814/833-3200 or 800/815-2660 to learn more about the resources that can help you, your employees and your organization.
In this issue of the Business Magazine, we’ll talk with Highmark about the ways in which the insurer is finding new ways to enhance its benefits model that assists members
A New Era in Benefits
mbabizmag.com • AUGUST 2017
3
COVER STORY | LOCAL PROFILE
Highmark’s integrated delivery and financial system presents a unique approach to coordinated care and coverage.
A Leader in Innovative Programs for Healthier Employees and More Productive Employee Caregivers Whether it’s caring for an elderly family member, a disabled relative or a sick child, the cost of caregiving for employees and their employers can be substantial.
We want our providers to be thinking more broadly from a population health standpoint about patients, and the journey of those patients when they’re not in front of physicians.”
According to a survey by Gallup-Healthways, caregiver absenteeism costs the U.S. economy an estimated $25.2 billion in lost productivity. Additional research shows these caregiving employees also are more likely to report health problems like depression, diabetes, hypertension or heart disease, costing employers an estimated additional health-care cost of 8 percent per year, or roughly $13.4 billion annually.
From his experience working with value-based models in a number of markets across the country, Burns understands the challenges of both practitioners and patients in an Affordable Care Act (ACA) era and post-Centers for Medicare & Medicaid Services MACRA world, which established new ways to pay physicians for caring for Medicare beneficiaries, and where value-based reimbursement can impact up to one-third of their income.
Experts agree that employers should be prepared to manage the impact of caregiving responsibilities on their workforce. Today, one of the most impactful ways is through a qualitybased approach to health-care and prescription coverage.
“We are now saying we want physicians to focus on very specific quality and outcome-based metrics, while emphasizing the importance of managing the total cost of care,” says Burns.
Highmark Inc., one of America’s leading health insurers, is finding new ways to enhance its benefits model. The insurer has implemented innovative programs and initiatives to ensure its members — including their caregiving employees and covered family members — are getting access to even better quality health coverage. Among these initiatives is Highmark’s new, value-based True Performance reimbursement program, as well as a more coordinated approach to care, and its integrated Pharmacy benefits, which are helping to control costs and improve outcomes.
Presently, 1.3 million of Highmark’s members are receiving care under a provider that is participating in the True Performance program. “We’re seeing better performance on almost every quality metric for doctors who are in True Performance and those who are not,” notes Burns. “In fact, we are observing that physicians are performing better than they were a year ago.”
True Performance – Quality Not Quantity
Introduced in January 2017, True Performance is an incentive payment program for primary care physicians (PCPs) that is part of the movement toward reimbursement for high-quality, cost-effective care, not volume. Participating physicians are rewarded for the right care, at the right price, instead of the number of patient visits. True Performance’s goal is to help patients — and, consequently, employers — avoid costly care — in the future. “In our view, True Performance is one of the more forward-looking programs in the country,” explains Sean Burns , vice president, Provider Reimbursement & Network Infrastructure at Highmark. “It’s not just about the volume of visits.
4
AUGUST 2017 • mbabizmag.com
Highmark’s True Performance reimbursement program requires providers to consider how they deliver care and overall cost of care.
The program encourages increased touchpoints between the patient and physician’s offices. For example, one practice in True Performance is requiring two visits a year, with a nurse calling two or three days, four times for the rest of these other check-ins. “That is a way that is better experience for the patient, which will ultimately drive better outcomes,” says Burns. And it provides a greater return on investment. Highmark estimates in the first two years of the program, there will be about 1-percent to 3-percent cost savings over the entire PCP network. With more savings and transparency of payments — knowing exactly where health-care dollars are being spent — employers will be able to do more with benefit design and build more strategies around employee engagement. “We’re changing the way that providers are paid. By doing that, we are getting much more aligned with what the customers want, what we want as a payer, and, ultimately, what the members are looking for in their health-care journey,” says Burns.
A Network of Support
To achieve this new level of quality coverage, coordination of care is paramount. Lori C. Hough, Highmark’s vice president of Clinical Care and Wellness, and Clinical Services, for one, is leading operations and programs for case management, disease management, wellness and the Blues On-call services provided to Highmark members. Her team helps people deal with complex medical issues, chronic conditions, those with a need to make lifestyle changes, or acute health-care needs requiring nurse triage support. “Highmark is skilled at empowering members to make better health-care choices and decisions,” states Hough. “When members are empowered to manage their health in a way that aligns with evidence-based medicine, affordability will follow.” For instance, one of Highmark’s signature programs is its Integrated Delivery and Financing System (IDFS). “The IDFS offers a one-stop shop for employers in high-performance networks,” says Hough. “Our multi-disciplinary team collaborates closely with providers to achieve specific goals in the treatment and care plans. This team serves as ‘in-between provider visit’ support to members.” Services are delivered telephonically, online or with face-to-face visits. Highmark’s clinicians and health coaches coordinate care in supporting the provider’s treatment plan, as well as services like employee assistance programs, disability and behavioral health. Another example is the Highmark Cancer Collaborative, which combines the medical expertise of Allegheny Health Network and the Johns Hopkins Kimmel Cancer Center with Highmark’s insurance and financial expertise. The goal is to improve cancer care by identifying and promoting the best evidence-based treatments, removing administrative barriers and waste, and finding smart ways to control costs while ensuring the highest quality of care. “Our goal is to make a difference in people’s lives by improving the quality of care and reducing costs, while creating a seamless experience for our members,” Hough says.
Highmark’s carved-in approach to integrated pharmacy benefits is helping to control skyrocketing health-care costs.
For example, a patient with rheumatoid arthritis or hepatitis C may consider a certain drug. But Highmark is taking it one step further, asking about the severity of the disease, alternative drugs and dosage requirements before it is prescribed. According to Sara Marche, vice president of Pharmacy Services at Highmark, “If an employer is going to bear the cost of these medications and pay for these high cost claims then, at least, they will have comfort knowing that Highmark is ensuring it’s in the right patient population.” Also helping to contain costs is Highmark’s formulary that encourages generic utilization. “Every percentage increase of generic prescribing reduces pharmacy costs by 3 percent,” says Marche. That is significant cost savings when you consider the rising cost of the prescription drug benefit. “We’re really trying to build a formulary that encourages generic first, before you will get to a brand-name drug.” Highmark’s “carve in” approach — in which employers are contracting directly with them for medical and pharmacy benefits — is critical to both improved patient outcomes and cost containment. The insurer estimates a $172 per member per year medical cost saving when prescription drug and benefits are carved in vs. carved out. For a 1,000-member employer group, that adds up to $172,000 in savings for an employer. “A pharmacy benefits manager (PBM) really doesn’t have any incentive because they don’t insure lives,” says Marche. “They don’t have as much of an incentive as a health plan to lower the actual claims cost.” Highmark currently utilizes Express Scripts to handle claims processing and pharmacy network management. Through the partnership, the insurance company is tapping into the size of the PBM while leveraging their ability to negotiate good unit cost discounts and passing it on to customers. “The carve-in approach is the best of both worlds because it is leveraging what a PBM can provide us with their size and scale, but then also doing ourselves what we believe a health plan can do better, and that is managing costs,” says Marche. For more information about Highmark’s innovative coverage and pharmacy programs, visit www.discoverhighmark.com.
Integrated Pharmacy Benefits
Through Highmark’s integrated pharmacy benefits, the insurer is also leading the charge to combat skyrocketing prescription drug costs, which today account for the fastest-growing part of healthcare spending, at 20 percent. With the rise of specialty drugs to $54 billion in the past five years and the cost of four of the top 10 prescription drugs, which have risen 100 percent since 2011, Highmark is differentiating itself in its utilization management (UM) and formulary management strategies. The health insurer wants to see that appropriate drugs are being used for the right patient, at the right time.
Highmark Inc. and its health insurance subsidiaries and affiliates collectively are among the 10 largest health insurers in the United States and comprise the fourth-largest Blue Cross and Blue Shield-affiliated organization. Highmark Inc. and affiliates operate health insurance plans in Pennsylvania, Delaware and West Virginia that serve 5.2 million members and hundreds of thousands of additional members through the BlueCard® program. Its diversified businesses serve group customer and individual needs across the United States through dental insurance, vision care and other related businesses.
mbabizmag.com • AUGUST 2017
5
SENIOR CARE ONLY BETTER Serving Erie and surrounding counties including Clarion, Crawford, Forest, Venango and Warren. Senior Helpers stands ready to serve your family’s needs with personalized, in-home care and expertly-trained, professional caregivers. We offer assistance with daily living activities, along with the social interaction needed to help adults stay healthy, happy and at home! Affordable assistance is right at your fingertips. For questions or to schedule a free, no-obligation, in-home assessment, please contact Tony Viglione, 814.823.9306 or aviglione@seniorhelpers.com.
Care and comfort at a moment’s notice.
Senior Helpers 3104 State St. Erie PA 16508 www.seniorhelpers.com/erie All rights reserved. Senior Helpers locations are independently owned and operated. ©2016 SH Franchising, LLC.
Contractors & Construction Managers Since 1906 814.454.7147 | www.eeaustin.com
Hamot Heart Institute, Erie, PA
WCA Hospital, Jamestown, NY
Saint Vincent Hardner Building, Erie, PA
Olean Outpatient Surgery, Olean, NY
FIRST CHOICE in Regional Healthcare Construction...EE Austin & Son
EE Austin & Son offers a dynamic management team committed to providing construction excellence. Austin is the leading regional general contractor and construction management firm...and has been delivering for its clients since 1906. EE Austin & Son remains steadfast in its century old promise to... “Do the right thing...all the time.” It’s the Austin Difference.
Healthcare • Education • Institutional • Retail • Hospitality • Industrial • Concrete
6
AUGUST 2017 • mbabizmag.com
SPOTLIGHT Q&A | RESOURCES
Erie VA Medical Center Provides Support to Veterans, Families
The Erie Veterans Affairs Medical Center (Erie VAMC), which is accredited by The Joint Commission and is located on a 20-acre site in Erie, Pennsylvania, is a general medical and surgical facility that provides a full range of primary care services for veterans in an eightcounty area within northwestern Pennsylvania, eastern Ohio and southwestern New York. Here, Erie VAMC’s new Executive Director John Gennaro discusses the Erie-based operation and the numerous resources available to veterans and their caregivers. The Erie VA Medical Center is one of our region’s larger and more visible employers. Please provide an overview of this extensive operation, from how many veterans you serve and number of employees to the operating budget and facilities that you manage. Erie VAMC proudly serves more than 21,000 veterans throughout the tri-state area in northwestern Pennsylvania, northeastern Ohio and western New York with a total operating budget of more than $140 million. Erie VAMC employs 770-plus dedicated employees along with a robust volunteer program with 605 volunteers. In addition to the main medical center located in Erie, Erie VAMC also operates five community-based outpatient clinics (CBOCs) — located in Ashtabula, Crawford, McKean, Venango and Warren counties — aimed at making health care more accessible to veterans in rural communities. What are some of the most indemand services that you provide to area veterans? The two highest volume services provided at the Erie VAMC include primary care and behavioral health care. Last year, Erie VAMC had 262,272 primary care outpatient visits and 51,524 Behavioral Health Clinic visits. Erie VA’s Behavioral Health Clinic is ranked No. 1 in the country for their commitment to providing exceptional same-day services to veterans needing emotional support. In addition to primary care and behavioral health-care services, our Connected Health (telehealth) program continues to expand rapidly with one out of every two veterans using some form of Connected Care services.
In addition to the benefits and services for veterans, the Erie VAMC also has a number of services designed specifically to support family caregivers. Please explain. Erie VAMC recognizes that family caregivers in a home environment can enhance the health and well-being of veterans under VA care, which is why we offer a Caregiver Support Program. To accommodate for our caregiver’s demanding schedules, we provide both face-to-face and virtual support. The licensed professionals who man the Caregiver’s Support Line (1-855260-3274) are there to help caregivers access services, connect to the local Caregiver Support Coordinator, answer questions, and, most importantly, to provide a listening ear and support when it’s needed most. Our local Caregiver Support Coordinator also provides a variety of social work support to family caregivers and serves as a navigator to ensure they receive the proper support and benefits. To connect with our local Caregiver Support Coordinator, please call 814/860-2657. The Erie VAMC has undergone a number of construction and renovation projects in the past few years. What’s new and what’s next for the Erie facility? The Erie VA Medical Center is building for the future to ensure the veterans we serve have the most state-of-the-art and progressive care facilities available to them. Erie VAMC has been selected as the VISN flagship site and is one of 18 facilities in the nation that will be implementing a wellness program as part of the CARA legislation. A strategic goal of the initiative is to reduce
opioid use for chronic pain amongst Veterans. The wellness program will include complimentary alternative medicines such as acupuncture, chiropractic care, massage therapy, health coaches and community partnerships. Construction is already under way on the first of two standalone phases on the Community Living Center. This $7.8 million 24,000-square-foot project will enhance the environment veterans live in our nursing home and will include all single occupancy rooms, bathrooms, courtyards, kitchenettes for family cooking and recreational spaces. An additional program enhancement for veterans will be an eight-bed Domiciliary for Substance Abuse Disorder. This comprehensive evidencedbased program will be available for veterans who are dealing with substance abuse and homelessness. A number of infrastructure projects are also under way to enhance both the energy efficiency and emergency preparedness of the medical center. How can local employers support the Erie VA Medical Center? There are a number of ways local employers can support the Erie VA Medical Center. First and foremost is to get the word out about VA services available to local veterans. In addition, any employer wishing to donate to the VA or volunteer, can contact our Voluntary Service Director Karen O’Neal at 814/860-2454.
mbabizmag.com • AUGUST 2017
7
LO INSURAN ESEL-SCHAAF CE AGEN CY, INC.
90 Years of Service
LOESEL-SCHAAF INSURANCE AGENCY, INC. 8
AUGUST 2017 • mbabizmag.com
Population Health Management Can Save You Big Money
HEALTH MATTERS | SOLUTIONS
An Investment in Healthy Employees Drives ROI productive employees. And with the right PHM program in place, employers often see more engaged employees that enjoy increased levels of job satisfaction. The goal is to try to prevent those who are well from becoming ill and improving the quality of life and enhancing health outcomes for those who have developed one or more chronic conditions. Should employers ask their health insurance company about population health management? Employers absolutely should ask their insurance carriers about PHM. Employers need to know the value they are getting and that they’re getting the right care for their employees. The chief cost drivers in any health insurance plan are your sickest employees. But a good PHM strategy can help anticipate the needs of the employees who use the most health care. It can also tailor interventions to help curtail unplanned and costly care and help employees with chronic conditions get the preventive care they need before it becomes more expensive for everyone.
Marion McGowan, Ph.D. is the chief clinical officer and senior vice president of population health for the UPMC Insurance Services Division, which includes UPMC Health Plan, WorkPartners, LifeSolutions, UPMC for Life, UPMC for You, UPMC for Kids, Askesis, and Community Care Behavioral Health. The Integrated Benefits Institute recently reported that poor health costs the U.S. economy nearly $600 billion per year, with a significant chunk of that cost coming from lost productivity. But there are ways employers are fighting back. One is by incorporating population health management into your benefits package. Population health management is an increasingly popular and powerful tool that
helps employers to rein in employee healthcare costs. For the latest on how population health management can help you lower healthcare costs and raise employee productivity, we spoke with Marion McGowan at UPMC Insurance Services Division. What exactly is population health management (PHM)? Population health refers to the specific illnesses or health problems that exist within a targeted group of individuals, such as the employees of a particular company. Managing population health involves developing interventions and incentives and other strategies that lead to better individual health. Interestingly, the trend toward managing the health of employees represents a sea change among employers. In today’s workplace, making use of PHM extends the responsibility and interests of the employer beyond just providing salary and benefits. Why is population health management important to employers? Many employers see improving workforce health as a key to long-term cost management. Healthy employees translate into more
In terms of overall employer costs, is it worth it to invest in a population health management program? What’s the ROI? There is growing evidence that the investment is worth it. The ROI for a population health management program ranges from $1.40 to as much as $13 in benefits per dollar spent on the program. Does a population health management program make sense for smaller companies? Because of the investment dollars that large employers have at their disposal, they are most involved in PHM programs. But it’s arguably even more important for small companies to invest in PHM as part of their benefit design. In a small company with only a few employees, one person with a chronic disease can skew the cost curve and risk pool dramatically and as we know, healthy employees tend to be present more at work, which increases overall productivity. Whether it’s a large corporation or small family-run business, every employer has the opportunity to positively affect the health of their employees. For more information, visit www.upmchealthplan.com. mbabizmag.com • AUGUST 2017
9
Know the Benefits of Personal Care Agreements
LEGAL BRIEF | PLANNING
Power and Authority to Act When naming a care provider under a Personal Care Agreement, it may be advantageous to name the care provider as the care recipient’s “agent” in any separately executed financial or healthcare power of attorney document. The care provider may more readily assist and manage the care recipient’s financial and medical affairs if designated as agent under such documents. Individual facts and circumstances should always be considered, and despite the potential advantages, it may be wise to separate the role of care provider and agent among two or more parties in some circumstances.
Shaun B. Adrian is a senior partner at MacDonald Illig and a member of the firm’s Estates and Trusts Group. He works with individuals and families to establish estate plans tailored to the client’s needs, personal goals and tax objectives during life and after death. Shaun concentrates his practice in the areas of estate planning, estate and trust administration, and elder law.
Matthew B. Wachter is an associate at MacDonald Illig, where he is a member of the firm’s Business Transactions and Trusts & Estates practice groups. He concentrates his practice in the areas of business and tax, business succession planning and estate planning and administration.
A Personal Care Agreement is a formal document that outlines the role, responsibility and duties of a care provider. In the right circumstances, the agreement can eliminate uncertainty and limit the anxiety associated with ensuring that care is provided for loved ones and family members who require help and assistance.
day-to-day activities and life skills grows over time.
Providing Peace of Mind A Personal Care Agreement appoints a specific care provider and tasks him or her with providing for the daily needs of a care recipient. A care recipient does not give up personal freedom or the right to provide for themselves; rather, a care provider is named by the document and tasked with ensuring that a safe and healthy environment is maintained for the care recipient. The care provider is tasked with increasing the care and services provided as the need for care and assistance with
Service Provided Although the terms of a Personal Care Agreement are detailed and specific, the document should give the care provider the flexibility necessary to respond to everchanging circumstances. Nonetheless, a care provider is generally required to ensure that a care recipient is provided with balanced meals, safe and clean accommodations, clean laundry and bedding, assistance with financial matters and adequate medical care. The document outlines when services begin, the location where services are performed, the minimum time commitment required (for example, number of hours per week) and compensation paid. Safeguards can be included to remove a care provider who does not adequately perform his or her duties.
Payment for Services Rendered A care provider is compensated for services performed under the terms of a Personal Care Agreement. The amount of compensation must be “reasonable,” and such amount will vary depending on the means of the care recipient, scope of care provided and any understanding between concerned loved ones and family members. A care provider typically acts as an “independent contractor” and reports and pays self-employment and income tax as required. Consequences to Medicaid Qualification As the care recipient’s assets diminish, it is important to note that compensation paid to a care provider in a properly drafted Personal Care Agreement should not jeopardize eligibility under any state and federal programs that pay for nursing home care. This is especially important when a family member is paid to provide care to an elderly parent (or family member) who subsequently applies for Medical Assistance. In such instance, the Pennsylvania Department of Human Services will not treat the amount paid to a family member as a gift for purposes of determining eligibility for nursing home benefits under the Medical Assistance program. Conclusion A Personal Care Agreement is a great tool to ensure that a trusted care taker looks after the welfare of a care recipient, and when properly drafted, the document may provide the added benefit of “peace of mind” to the care recipient’s loved ones and family members. For more information, contact Shaun B. Adrian or Matthew B. Wachter at MacDonald Illig Attorneys at 814/870-7600. mbabizmag.com • AUGUST 2017
11
BUSINESS BUZZ | WHAT’S NEW ERIE FEDERAL CREDIT UNION OPENS NEW CORPORATE HQ
The former Glenwood Elementary School is now the new Corporate Headquarters and fullservice branch office for the Erie Federal Credit Union (EFCU). According to EFCU officials, the building was carefully designed to preserve the historic aspects of the former Glenwood Elementary school while integrating the new structure into the existing community and adjacent neighborhood. At nearly 42,000 square feet, the building is large enough to allow for the credit union’s future growth. The 3,000-square-foot branch will be the credit union’s ninth location. A variety of financial services are being offered at this location including: new account opening, consumer and business loans, traditional face-toface teller transactions, drive-thru service including large drive-up ATM and night depository, safe deposit boxes and wealth management services. For more information, visit www.eriefcu.org.
SARAH REED LIVING CENTER HOLDS OPEN HOUSE
Sarah Reed recently held an open house for the $18 million addition to its Reed House skilled nursing center, located at 227 W. 22nd Street in Erie. The more than 47,000-square-foot addition provides more space for residents with 104 new rooms. The addition also features new therapy, recreation, kitchen and courtyard areas. The facility was established by Erie’s first social service agency, organized by 30 women, including Sarah Reed, who worked together in 1871 to address community needs. For more information, visit www.sarahreed.org.
ERIE BREWING COMPANY, JOHN’S WILDWOOD PIZZERIA ROLL OUT PUB & PIE
Erie Brewing Company and John’s Wildwood Pizzeria announced details about Pub & Pie, a new brewpub destination opening at 6008 Knowledge Parkway, which will feature Erie Brewing Co. beers along with a newly expanded menu from John’s Wildwood Pizzeria. In June 2016, Erie Brewing Co. announced its relocation to a newly constructed 20,000-squarefoot building in Harborcreek that houses the company’s brewery, where it produces more than 6,500 barrels of craft beer annually for distribution throughout the East Coast. Visitors can now take a self-guided tour of the state-of-the-art brewing process down a glass-walled corridor behind the Main Bar. The new building is also the home to a second location of John’s Wildwood Pizzeria. For more information, visit www.eriebrewingco.com.
12
AUGUST 2017 • mbabizmag.com
Erie Federal Credit Union recently celebrated the grand opening of its new corporate headquarters and branch office, along with representatives from the Manufacturer & Business Association and local community and business leaders. D&E INVESTS IN NEW MACHINING EQUIPMENT D&E Machining, Ltd., located in Corry, Pennsylvania recently made a significant investment in new equipment to its machining operations. The company added a new, large capacity Doosan Puma 400C CNC Lathe to its CNC machine lineup, which includes several other existing large capacity CNC lathes, as well as a new Okuma GENOS M560-V Vertical Machining Center, which will add size and spindle speed to D&E’s current capability in vertical and horizontal CNC machining. In addition, a new Infor VISUAL ERP system has been implemented to help streamline operations, control costs and strengthen productivity. This integrated system gives D&E the inventory control, shop order tracking and forward planning visibility to ship quality products on time to their customers. “These investments, along with continuous improvement measures, will further increase our capacity and greatly improve our capabilities — crucial to achieving success in a highly competitive market where every day counts,” said D&E President Frank Polanski. D&E Machining, Ltd. is a ISO 9001:2008 certified, fully integrated supplier of make to order CNC machined components and assemblies for the aerospace, defense, transportation, power generation, medical and material handling industries. For more information, visit www.demachining.com.
HOWARD INDUSTRIES REVOLUTIONIZES PEDESTRIAN CROSSWALK SAFETY Howard Industries recently introduced its brand new Pedestrian Crossing Safety System featuring a myriad of warning signals that operate in unison to alert approaching drivers, from a distance, of pedestrians traversing the roadway. These signals include: an outdoor black-out LED direct-view amber wide angle flashing pedestrian symbol, 7” LED illuminated XING copy, multiple LED strobe light heads and, most notably, an ultra-bright, pure-white LED illuminated light beam that projects over 16 feet into the roadway. In addition to its safety function, Howard Industries’ Pedestrian Crossing Safety System offers a unique way for facilities and institutions to display and reinforce their brand image throughout the exterior of their property. These systems can be custom painted using brand specific colors, adorned with printed logos, utilized to display campus maps, provide directional information and more. Due to their multi-functional purposes, these systems are ideal for colleges, universities, healthcare facilities, senior living environments and beyond. Howard Industries is an architectural signage manufacturer of both interior and exterior wayfinding signage. Located in northwestern Pennsylvania, occupying over 50,000-squarefeet and employing nearly 50 individuals, Howard Industries fabricates a large line of architectural signage systems utilizing more than 120 proprietary aluminum extrusions. For more information on Howard Industries’ Pedestrian Crossing Safety System visit www.PedestrianCrosswalk.com or contact sales@howardindustries.com.
CLARK NAMED PRESIDENT OF SAINT VINCENT HOSPITAL Allegheny Health Network (AHN) recently announced the appointment of Christopher Clark, D.O., MHA, as president of Saint Vincent Hospital. Dr. Clark assumed his new position in early June. Born at Saint Vincent and a lifelong resident of the Erie community, Dr. Clark is a practicing family physician who has served in a number of leadership roles at the hospital over the past decade, including senior vice president of Medical Affairs, chief quality officer, associate chief medical officer and director of Continuing Medical Education. For the past two and a half years, Dr. Clark has worked in Erie as a medical director for Highmark Inc., responsible for helping guide strategy, product development and interventions designed to optimize the health and well-being of the insurer’s member populations. Cynthia Hundorfean, president and chief executive officer of AHN, said Dr. Clark’s depth of experience with both the delivery and financing of health care makes him uniquely qualified to lead Saint Vincent at a transformative time in the hospital’s history and as the industry transitions to a value-based model. Last week, AHN broke ground on the initial phase of a $115 million capital investment strategy for Saint Vincent, including construction of a new, state-of-theart emergency department and operating room suite. “Saint Vincent and the Erie community are critically important to our Network, and we are thrilled to have such an exceptionally talented, dedicated and community-oriented physician leader accept this important role for our organization,” Hundorfean said.
ACES TO HONOR LORD CORPORATION’S MARK ROSE AS OUTSTANDING CITIZEN
Americans for the Competitive Enterprise System, Inc. (ACES) will honor LORD Corporation’s Mark Rose as its 2017 Bob & Betty Merwin Outstanding Citizen at an Annual Awards Luncheon on August 15 at the Sheraton Erie Bayfront.
Rose, who is a member of the Manufacturer & Business Association Board of Governors, was born and raised in Erie, Pennsylvania and earned a bachelor of science in industrial engineering from the Pennsylvania State University and further earned his master of science degree in industrial engineering, specializing in manufacturing engineering. Employed by LORD for 26 years, Rose was named director of Aerospace Operations & Supply Chain in 2012. He is an active supporter of ACES, serving in the past as both judge and speaker at the programs. He is being honored for his commitment to the Erie community, his own philanthropic endeavors, and his ongoing advocacy of the American free-enterprise system. During the luncheon, ACES also will be honoring Debbie Humphreys of Fort LeBoeuf High School as the 2017 ACES Educator of the Year.
ERIEBANK APPOINTS OHIO ADVISORY BOARD MEMBER
ERIEBANK recently announced the appointment of Kevin D. Malecek to serve on ERIEBANK’s Ohio Advisory Board. Malecek will join the board’s seven inaugural members in providing leadership and guidance as ERIEBANK continues to develop its presence in the northeast Ohio region. “We are privileged to welcome Kevin to our Advisory Board,” President David Zimmer said. “He brings a deep knowledge of the region and a distinguished record of serving the community in a variety of professional and volunteer roles, consistently advancing important initiatives to make northeast Ohio a better place to live, work and do business.” Malecek is senior development officer for the Lakeland Foundation and Lakeland Community College. He has served in a variety of capacities in the governmental, business, nonprofit, and political arenas in northeastern Ohio including Lake County Commissioner, president and CEO of the Mentor Area Chamber of Commerce, District 3 Councilman and Council president for the City of Willoughby Hills, Ohio. Additionally, he previously served as the director of the nationally-ranked part-time MBA program at the Weatherhead School of Management at Case Western Reserve University and currently holds an adjunct lecturer position at American University in Washington, D.C. ERIEBANK, a division of CNB Bank, is a $2.6 billion bank that provides financial services to communities in northeast Pennsylvania and northwest Ohio.
PEOPLE BUZZ | AWARDS AND PROMOTIONS UNITED WAY ANNOUNCES 2017 TOCQUEVILLE AWARD HONOREE United Way of Erie County recently announced James “Jim” B. Ohrn as the 2017 Tocqueville Award recipient. The award was presented to him during United Way’s Leadership Recognition Reception on June 20 at the Warner Theatre in Erie. The prestigious award recognizes outstanding volunteer service to the community through personal leadership and long-time commitment. According to the United Way, Ohrn’s entire career has been the embodiment of sustained volunteerism for the benefit of others. A native of Corry, Pennsylvania, Ohrn is a 1972 graduate of Grove City College, and in 1974 he earned an MS degree in accounting from Arizona State University. He served as a 1st Lieutenant in the United States Air Force from 1974 to 1976. He received his certified public accountant designation in 1976 in Pennsylvania, and he has been a tireless worker in community activities. Since 1997, he has been the vice president/chief financial officer of Custom Engineering Company and Lamjen, Inc., located in Erie, and Venango Machine Company in Wattsburg. Ohrn has been a volunteer for many organizations over his career, beginning with his service in our nation’s armed forces. For United Way alone, he has volunteered for more than 15 years in various roles. He has served or is presently serving on the boards of many additional nonprofit organizations, including Hospice of Metropolitan Erie, Americans for the Competitive Enterprise System (ACES), Presbyterian Homes of the Presbytery of Lake Erie and UPMC Corporators, among many others.
LUTZ APPOINTED EXECUTIVE DIRECTOR OF SEWN’S ERIE OFFICE Deb Lutz, a Venango County native, has been hired as the new regional director of the Steel Valley Authority’s Erie office of the Strategic Early Warning Network (SEWN), overseeing the programs ongoing efforts to retain jobs and manufacturing in Erie and surrounding counties. Lutz previously served as vice president of Economic Development for the Oil Region Alliance of Business, Industry & Tourism in Venango County for 13 years. She holds an MBA from Clarion University and was formerly a county commissioner in Venango County and worked in banking in the private sector. Steel Valley Authority is a multi-municipality government authority addressing layoff aversion throughout the Commonwealth of Pennsylvania.
mbabizmag.com • AUGUST 2017
13
TESTIMONIALS FROM PEOPLE LIKE YOU! “…The work you do is amazing and so very helpful....especially for libraries and nonprofits. We rely on your expertise on these kinds of things to help us get through!” — Justin Hoenke Executive Director Benson Memorial Library Titusville, PA
“Thank you so much for the extensive data you provided me. The monitoring by the Association and your efforts in particular provide me with confidence that we are getting good value through EnergyAdvisors!” — Jim Hynes CFO Swanson-Erie Corp. Erie, PA
“…you have gone above and beyond for us. It is the first time ever, that I feel that I can TRUST a person with rate information.” — Mary Anne Strand Nick’s Place Edinboro, PA
ON THE HILL | UPDATE
Whatever Happened to Those New FLSA Overtime Regulations? Adam Long is a member of the Labor & Employment practice group at McNees Wallace & Nurick LLC in Harrisburg. He represents employers in single plaintiff and class-based employment litigation matters and before various governmental agencies, including the Equal Employment Opportunity Commission, the Pennsylvania Human Relations Commission, and the National Labor Relations Board. For much of 2016, employers and HR professionals were focused on preparing for the new Fair Labor Standards Act white-collar overtime exemption regulations. The Department of Labor (DOL) issued the final regulations on May 18, 2016, with an effective date of December 1, 2016. As you may remember, the new regulations more than doubled the minimum weekly salary requirement for most white-collar overtime exemptions from $455 to $913. The new regulations contained a number of additional provisions, the vast majority of which were not viewed favorably by employers.
And then, right before Thanksgiving, everything came to a screeching halt. A federal district court issued on November 22, 2016, a nationwide preliminary injunction blocking the new FLSA white-collar overtime exemption regulations from taking effect on December 1. Few anticipated the issuance of an injunction blocking the regulations, much less one a mere eight days before the regulations were set to take effect. Happy Thanksgiving, indeed. You may have noticed that there hasn’t been much of an update on this issue since the issuance of the injunction in November 2016. That is because, frankly, not much of note has happened, either in the litigation in which the injunction was issued or regarding the issue in general. As expected, the Department of Labor filed an appeal of the preliminary injunction on December 1, 2016. The DOL initially sought to fast-track the appeal, asking the Fifth Circuit Court of Appeals for an expedited briefing schedule. The motivation for this strategy was obvious. The DOL’s leadership was set to change with the inauguration of Donald Trump in January, and the best hope for the new regulations was to have the injunction overturned before this change in leadership could affect the DOL’s litigation strategy. The DOL’s strategy initially was successful, with the Fifth Circuit agreeing to an expedited briefing
schedule, with all briefs regarding the appeal set to be filed by February 7, 2017. However, on January 25, 2017 (that is, shortly after the Trump administration took office), “the DOL asked the Fifth Circuit for an extension of time to file its reply brief “to allow incoming leadership personnel adequate time to consider the issues.” The Fifth Circuit ultimately agreed to extend the deadline for the DOL to file its reply brief until May 1, 2017. Meanwhile, the federal district court that issued the preliminary injunction in November is still considering a summary judgment motion that could result in a final order being entered in that case. Also, a motion filed by the Texas AFL-CIO in December 2016 to intervene as another defendant in the case also remains pending before that court. The AFL-CIO sought to intervene because of its fear that the DOL’s new leadership will decide to cease defending the challenged regulations. Time is not on the side of the currently enjoined FLSA overtime exemption regulations. As the appeal of the injunction drags on, the likelihood of the Trump administration DOL withdrawing the appeal and abandoning the fight to defend the regulations grows. If it does so, the injunction likely will become permanent, placing the final nail in the coffin of the controversial regulations. So, as we have been saying for months, stay tuned.
mbabizmag.com • AUGUST 2017
15
Register for Term I classes August 7 – 25.
Automotive Technologies Business & Management Commercial Truck Driver
Classes begin the week of September 5.
Computer Training Construction Trades Drafting & Design HVAC Industrial Technologies Manufacturing Technologies Medical Technologies Special Interests Welding
Accelerate your success. RCTC is a leading provider of quality career and technical training programs for adults. We offer a variety of courses, affordable tuition, convenient class schedules and TIA/WIOA approved classes.
Visit www.rctcerie.org for a complete course schedule or call 814.464.8601 for more information.
NOW! RIDE the e, TAKE ROUTE 3!
8500 Oliver Road • Erie, PA 16509 The RCTC is a division of the Erie County Technical School, an equal opportunity educational institution.
HR CONNECTION | WORKPLACE TRENDS SUPPORTING CAREGIVERS AT WORK IS GOOD INVESTMENT, STUDY SAYS
Employers need to be aware of the potential payoffs for offering benefits and services that make caregiving an easier burden for employees to bear, says a report from Northeast Business Group on Health (NEBGH).
The Caregiving Landscape: Challenges and Opportunities for Employers says that maximizing productivity, reducing future employee health-care costs, and attracting and retaining talent are among the reasons employers should consider specific policies and services designed to help employees who are providing care to loved ones.
Tips for Identifying Modified Duty Return-to-Work Options A return-to-work (RTW) plan is a tool for managers to proactively help ill or injured employees return to productive employment in a timely and safe manner. Below are some helpful tips to consider using at your operation: Review job descriptions of other positions. Think about the less physically demanding elements of each position within your company. Ask other managers or supervisors if they have any “extra” work that needs to be done. Sure, re-organizing the toolboxes on the trucks would help, but who has the time? Answer: Your injured employee! Yes, having well-stocked first aid kits in every vehicle would be a nicety, but who has the time? Answer: Your injured employee! Keep this list in the same place you keep your workers’ comp (WC) insurance information — there’s no need to reinvent the wheel the next time you experience a lost time claim.
Challenges to better supporting these employees include resistance to being labeled as a “caregiver,” the absence of best practices for employers, and the need for buy-in from executive management. “More than one in six Americans who work is also a caregiver, and this number is going to grow significantly given demographic trends,” said Laurel Pickering, president and CEO of NEBGH. “Many employers — including our members — are expanding company-paid leave, experimenting with peer-led caregiving support groups, providing subsidies for services that offer back-up caregiving, and connecting employees with resources who can help navigate the complexities of caregiving.”
CAREGIVER JOB MARKET AMONG FASTEST GROWING
Ask the injured worker. It is astonishing how many employers don’t involve the injured worker in the RTW conversation. I bet there are at least 10 things that you do, weekly, if not daily, that fall into the “other duties as assigned” category of your job description. Most likely, your boss doesn’t even realize they’re being done, but would sure notice if they weren’t. The point is, the injured worker knows their job better than anyone else and if asked, they could probably identify a handful of things they could do. Offer a few hours of cross-training. Consider any type of cross-training opportunities. Could they learn to answer the phones? Make follow-up customer satisfaction calls? Even if it takes 10 hours to train someone, it could yield weeks of valuable, meaningful, productive modified duty. This could also free up some of your other team members to get to more pressing issues.
According to the U.S. Bureau of Labor Statistics, the caregiver job market is poised to be the second fastest-growing job group in the nation over the next decade. The U.S. Census bureau projects that the population age 65 and older will double between 2000 and 2050, fueling the demand for caregivers. Nationwide, the personal and home aides classification is expected to grow by more than 50 percent between 2006 and 2016, increasing from 767,000 to a projected 1.15 million jobs. The federal government defines home care aides as professionals who help the elderly, disabled, ill and mentally disabled who live in their homes or in residential care facilities.
Use a work injury as an opportunity to improve safety. Consider having an injured worker review safety materials, watch safety videos for your industry, or even conduct a “tool box talk” that will help prevent future injuries. When the message is coming from an injured worker, it carries greater weight. This shouldn’t be punitive, but it should be viewed as an opportunity to increase safety culture, to learn from a negative event, and to accommodate restrictions.
Sarah Tayts, AIC, ARM, CPCU is a claim support manager for Eastern Alliance Insurance Group, which is a member of the ProAssurance family of companies. Contact her at 1-855-533-3444.
mbabizmag.com • AUGUST 2017
17
LEGAL Q&A | GET ANSWERS WE HAVE AN EMPLOYEE WHO WE ARE LETTING GO. DO WE HAVE TO PAY THEM SEVERANCE PAY?
Absent some agreement stating otherwise, no, you do not. There is no legal requirement that employers pay severance to workers. In most cases, this is a voluntary decision that the employer makes in its discretion, including how much severance to pay (for example, one week for each year of service). However, an employee may be entitled to severance pay if there is an employment contract that guarantees severance pay.
DO WE HAVE TO REIMBURSE PERSONAL AUTO MILEAGE FOR BUSINESS-RELATED TRIPS?
There is no federal law that requires employers to pay employees’ expenses when employees use their own vehicles for business purposes. However, employers must ensure that employees who drive their personal cars for work do not incur expenses that would drop their pay below minimum wage. For those who do reimburse, the IRS standard business mileage rate is generally used by employers when determining the amount to reimburse their employees. The IRS mileage rate is a maximum rate that employers may use for tax-free reimbursement. Employers that reimburse more than the IRS rate are required to treat any amount above the IRS rate as taxable income to the employee(s). The IRS rate is only a guideline, and employers can choose to reimburse at a rate below the IRS rate.
I AM A BUSINESS OWNER WITH 10 EMPLOYEES. SHOULD I HAVE AN EMPLOYEE HANDBOOK?
No matter the company size, there are many tools that a business owner can have to help protect the company from lawsuits. One of those tools is an employee handbook. An employee handbook is an important tool for effective employeremployee relations. It notifies employees of the company’s values, policies, and procedures; promotes compliance with labor and employment laws; and helps create an orderly, efficient and transparent workplace.
Department of Labor Withdraws Guidance on Joint Employment, Misclassification of Employees On June 7, 2017, the U.S. Department of Labor (DOL) withdrew two Administration Interpretations (AI) that were issued in the past two years. The first AI, “Joint Employment under the Fair Labor Standards Act and Migrant and Seasonal Agricultural Worker Protection Act,” expanded the “joint employer” doctrine for purposes of the FLSA and Migrant and Seasonal Agricultural Worker Protection Act. In this AI, the DOL provided two analyses to determine whether otherwise separate businesses might be considered joint employers of the same workers. The second AI, ”The Application of the Fair Labor Standards Act’s ‘Suffer or Permit’ Standard in the Identification of Employees Who Are Misclassified as Independent Contractors,” focused on employer misclassification of employees as independent contractors under the Fair Labor Standards Act (FLSA) and emphasized that the applicable inquiry in determining whether an individual is an “employee” versus an “independent contractor” is whether the individual is “economically dependent” on the employer such that he is an employee.” While businesses view these withdrawals as a win, the DOL’s announcement did remind employers that while the AI’s were being withdrawn, an employer’s legal responsibilities remain the same. Courts will likely return to the long-standing interpretations of independentcontractor and joint-employment principles as determined by courts in each jurisdiction. Absent the AIs, to decide whether entities are joint employers for purposes of the FLSA, the circuit courts will use different tests established through decided cases. Regardless of the differences in these tests, courts have emphasized that the analysis is a flexible one. In the misclassification analysis context, courts apply traditional economic realities test factors to determine whether an individual is an employee under the FLSA. Courts have interpreted the economic realities factors very differently depending on the facts and jurisdiction.
Tammy Lamary-Toman, JD, PHR, SHRM-CP, is the vice president and legal counsel for the Manufacturer & Business Association. Contact her at 814/833-3200, 800/815-2660 or tlamary@mbausa.org.
18
AUGUST 2017 • mbabizmag.com
Serving the Community Since 1871, Sarah Reed Senior Living is a Continuing Care Retirement Community Offering Residential & Personal Care Apartments, Memory Support, Short-Term Rehab, Skilled Nursing Care. • Now Offering Private Rooms for Short-Term Rehab • Ask Your Hospital Discharge Planner to Contact Us
Visit our Website sarahareed.org to learn more! 227 West 22nd Street, Erie, PA 16502 | 814-878-2600
You need it. You want it. We’ve got it. You’ll love the choice of flexible meeting rooms all equipped with WiFi, flat-screen TVs and laptops. And our onsite business center with phone, fax, copier and computer, plus complimentary breakfast, beverages and afternoon snacks, maximizes convenience for you and your guests!
So relax, you’ve come to the right place. Contact Norm Zymm at 814/833-3200 or 800/815-2660, email nzymm@mbausa.org or visit Google at https://goo.gl/Hxz2ou for our new virtual tour!
mbabizmag.com • AUGUST 2017
19
MBA Ad (HP0617) .indd 1
An affordable decision your family can feel good about.
6/14/17 5:16 PM
W hen your loved one requires
assistance with personal needs and medications, yet wants an independent lifestyle, they’ll enjoy the caring atmosphere at Westlake Woods. And our simple monthly fee includes all the personal care most residents need when first joining our Community. All from a caring, trained staff that feels like family. Call today for a personal visit! The first and ONLY licensed assisted living community in the greater Erie area.
Leading the Way in Assisted Living 3302 West Lake Rd. ❖ Erie, PA 16505 (814)835-0330 ❖ LifeServicesAssistedLiving.com
Deficiency free for five years!
20
AUGUST 2017 • mbabizmag.com
EVENTS & EXTRAS | NETWORKING & MORE The Manufacturer & Business Association (MBA) strives to keep its members informed on the most current business issues affecting employers in the region. For more information about upcoming events, visit the Association’s website at www.mbausa.org.
ciation and the Erie Regional The Manufac turer & Business Asso hosted the Commonwealth p ershi Partn th Chamber and Grow sylvania Prosperity at a briefing Penn to Foundation to discuss the Path t at er, ce Cent 2171 West 38th Stree on June 20 at the MBA Conferen ue. Aven Pittsburgh
Lenny McAllister, director of Entrepreneur Engagement for western Pennsylvania at the Commonwealth Foundation, discusses the issue of paycheck protection, the pension crisis in Pennsylvania and the state budget and its impact on businesses and individuals, during the Path to Pennsylvania Prosperity briefing at the MBA Conference Center. Harry Eighmy, chairman of the Manufacturer & Business Association (MBA) Board of Governors and chief operating officer at American Turned Products (ATP), congratulates recent graduates of the Association’s professional development courses. More than 60 graduates from 40 companies were honored at the recent training luncheon at the MBA Conference Center.
Debbie DeAngelo and HR Essential Series graduate Kelly Carson of UPMC Hamot were among the company representatives in attendance at the MBA’s recent Training Recognition Luncheon.
Paul Moneta (center) duc ts (ATP) employee American Turned Pro ate with MBA tific Cer ies Ser ls y Skil shows off his Supervisor rating Officer Ope ef Chi ATP irman and Board of Governors Cha rews (right). And en Kar ATP HR Manager Harry Eighmy (lef t) and
mbabizmag.com • AUGUST 2017
21
PRSRT STD US POSTAGE PAID ERIE, PA PERMIT #199
When the happiness of your employees depends on the network of your health plan, choose us.
The success of any organization depends greatly on the health and happiness of its employees. That’s why it’s so important to choose the right health coverage. With UPMC Health Plan, your employees get affordable in-network access to the doctors and hospitals they trust. And you get a health plan that makes sense for your company.
Call your producer or visit www.UPMCHealthPlan.com/employer
Network
Service
Affordability
Depend on it.