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CONTENTS DECEMBER 2021 | VOLUME 37 | NUMBER 12 | AKBIZMAG.COM
FE AT UR E S 10 INSURANCE
Port of Alaska
Risks, Rewards, and Expectations COVID-19’s impact on insurance trends By Tracy Barbour
16 FINANCE
Debt Restructuring: Strategies and Options Securing a win/win for lenders and borrowers By Tracy Barbour
20 TELECOM & TECH Innovation and Internet
Forging new connections mitigated the effects of the pandemic on businesses—at least those with access By Isaac Stone Simonelli
66 OIL & GAS
Smaller Players in the Big Oil Game Little roles have major results in the oil fields By Alexandra Kay
70 TOURISM
Passenger Port Expansions Improving tourist experience, easing local congestion By Vanessa Orr
54 CONSTRUCTION 2021 Construction Season Wrap-Up
Projects move forward despite a year of challenges By Rachael Kvapil
60 TRANSPORTATION Preparing for the Surge
Cargo hubs connect Alaskans to the world By Brad Joyal
ABOUT THE COVER
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Dr. Maryna Chumakova-Orin was twelve years old when she first aspired to a career in medicine. She had broken her elbow, and what she saw in the hospital amazed her. “Everything about seeing the surgeon, doing the surgery, everything about the operating room just took my breath. I was like, ‘This is it,’” she says. Orin made history this summer when she arrived at Anchorage Bariatrics, the first woman in her field in Alaska. Our December cover story, “Voices of Healthcare,” explores such changes. In addition to Orin, we hear from an ER physician, a former EKG technician, a Doctor of Physical Therapy and a PT assistant, an environmental services manager, and a hospital CEO and former flight nurse, each sharing their perspectives from Anchorage, Palmer, Dillingham, and Ketchikan. Cover Photo: Kerry Tasker
QUICK READS 8 FROM THE EDITOR
74 INSIDE ALASKA BUSINESS
78 ALASKA TRENDS
74 ECONOMIC INDICATORS
76 RIGHT MOVES
80 OFF THE CUFF
4 | December 2021
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CONTENTS DECEMBER 2021 | VOLUME 37 | NUMBER 12 | AKBIZMAG.COM
SPECIAL SECTION: HEALTHCARE 34 HEALING HANDS FOR ALASKA’S WORKFORCE Physical and occupational therapy prepares workers for the field or office By Isaac Stone Simonelli
40 LEADERSHIP RENEWAL & FINDING INSPIRATION
The end of extreme effort to improve work outcomes By Woodrie Burich
50 CHECKING IN WITH ALASKA BEHAVIORAL HEALTH Meeting increasing demand for mental health services
44 THE STORM IS THE NORM
COVID-19 Lessons Learned By Rindi White
PeaceHealth Ketchikan
Providence Alaska Medical Center
By Amy Newman
26 VOICES OF HEALTHCARE: PROFESSIONAL PERSPECTIVES The Alaska healthcare landscape By Scott Rhode
Alaska Business (ISSN 8756-4092) is published monthly by Alaska Business Publishing Co., Inc. 501 W. Northern Lights Boulevard, Suite 100, Anchorage, Alaska 99503-2577; Telephone: (907) 276-4373. © 2021 Alaska Business Publishing Co. All rights reserved. No part of this publication June be reproduced without written permission from the publisher. Alaska Business accepts no responsibility for unsolicited materials; they will not be returned unless accompanied by a stamped, self addressed envelope. One-year subscription is $39.95 and includes twelve issues (print + digital) and the annual Power List. Single issues of the Power List are $15 each. Single issues of Alaska Business are $4.99 each; $5.99 for the July & October issues. Send subscription orders and address changes to circulation@akbizmag.com. To order back issues ($9.99 each including postage) visit simplecirc.com/back_issues/alaska-business.
6 | December 2021
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FROM THE EDITOR Recently I was at Bagoy’s in Anchorage, acting as a fly on the wall as Junior Achievement of Alaska President Flora Teo interviewed owners Chanda and Randy Mines in preparation for the Junior Achievement Hall of Fame in January 2022. It was a memorable Thursday—Veterans Day, and Anchorage had been blanketed overnight with several inches of snow, the first real snowfall of the season. Before the interview, as Rick Mallars, president and CEO of Upper One Studios, was setting up AV equipment, we were all making the small talk that professionals who have disconnected from their phones and are waiting around for something to start make: the weather, personal but not-too-personal anecdotes, interesting shows and books. Amid that casual and essential connection building, Teo mentioned how unexpected, large snowfalls are just one thing that connects all Alaskans. For better or worse, we all deal with the weather together. And earthquakes. And being at the end of the supply chain. I believe there are no casual Alaskans. Anyone who calls themselves Alaskan loves this place in a way that every other Alaskan understands. Maybe I prefer to dipnet and you like to hunt, or my favorite trail is paved and yours isn’t even on a map, or I’ve earmarked boats to buy while you spend the weekend finding a qualified mechanic for your bush plane—the details don’t matter when you and I cross paths getting gas in Glennallen as we set out on an adventure or pack it up to head back. We’re all home. One of the things I love about Alaskans is how we don’t need to follow anyone’s path or program. We are environmentalists who understand the need for industry. We value and advocate for fish and wildlife while communicating the critical importance of runways and roads with our elected officials. Our whole history as a state is seeing what we have, establishing what we need, and finding solutions to move forward that suit our environment and our circumstances, whether that’s a massive pipeline, a ground-breaking land settlement, or a globally-ranked permanent fund. So yeah, there’s a lot going on right now: a pandemic, climate change, political parties moving further and further from each other, social issues concerning love and life and death that we all feel deeply about. But we still have so many things that connect us—even as we’re relatively spread out. When asked for her final thoughts at the Executive Q&A following our annual Top 49ers presentation in October, Chugach Alaska Corporation Chairman and Interim CEO Sheri Buretta said: “Be kind to each other in this time. We owe it to our community and each other as Alaskans to be compassionate and caring.” It bears repeating: let’s be kind to each other.
VOLUME 37, #12 EDITORIAL STAFF Managing Editor Tasha Anderson
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I
INSUR ANCE
Risks, Rewards, and Expectations COVID-19’s impact on insurance trends
By Tracy Barbour
nsurance is an invaluable instrument that businesses employ to address potential risk, but how do insurance companies and brokers navigate an unprecedented event like the COVID-19 pandemic? The novel coronavirus caught the world completely off guard, is persisting much longer than anticipated, and is having unforeseen effects on the future. Yet the future for insurance seems more certain. “I emphasize not to make light of the tragedy of the pandemic,” says Bob Shake, Director of Growth for Anchorage-based RISQ Consulting, “but there are opportunities for us to grow our business by being more proactive and being out in front of our customers soliciting new business.” Perhaps ironically, the hard times for everyone else are an opportunity for insurance providers to expand their client base. It could not be otherwise, Shake says: “In any business environment, growth is not an option. If you don’t have growth, you don’t survive.” So insurance—sometimes considered a necessary evil—will be even more valued in the future, according to Shake. “I think from a business perspective, insurance will become a higher priority.”
Direct Impact of COVID on Insurance In the COVID-19 era, insurance professionals are focusing more on advice about managing risk than they did prior to the pandemic. “They are more of a consultive advisor in regard to an insured’s risk portfolio,” according to Shake. “They’re paying a lot more attention to risk mitigation to provide better services and avoid potential losses as the pandemic extends on.” As it happens, this shift is a perfect fit for RISQ Consulting, which provides specialized risk management, customized insurance programs, and comprehensive employer services for a wide range of industries, businesses, and individuals. “We’ve really focused on risk mitigation and risk management and by doing so have become more of a trusted advisor to those that we insure,” Shake says. A simple but important area where RISQ Consulting is closely advising 10 | December 2021
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clients is workplace safety. The firm is using its resources and experience to go into the work environment and identify areas where clients have potential risk issues. Then it offers recommendations on how the company can address those concerns. “As an agency, we are making an investment that we needed to make to take care of our insureds and make sure risk mitigation is a top priority,” Shake says. Risk management is also a priority for another Anchorage insurance firm, Parker, Smith & Feek. Keeping clients informed about regulatory changes and safety is of the utmost importance for the insurance and risk management brokerage firm, according to Account Executive Matt Thon. “Our conversations have shifted to, how does a business owner protect their business, employees, and customers through this pandemic as well as [stay] compliant with local, state, and federal mandates and laws,” he says. “What we have found is not every exposure created through this pandemic is insurable, and it takes a combination of active risk management and safety to dovetail together practices that will, hopefully, mitigate any sort of financial or physical losses.” Higher insurance costs were inevitable given that for years the industry was in a “soft market” that featured lower insurance premiums compared to the total cost of risk. “It was just a function of time whereby insurance companies couldn’t continue to be profitable while operating on such thin margins,” Shake says. “Even prior to COVID, we saw commercial insurance premiums rising in all lines of business—with the exception of workers’ compensation—which has been a benefit to insurance agencies in Alaska overall. In Alaska, we had been in a soft market for many years, which placed increased emphasis on revenue growth while also requiring that operating expenses are proactively managed.”
Consulting must treat their existing clientele like they are new customers. Shake explains: “The carriers are requiring additional information while asking more and more questions. There’s just more attention to detail, and while that’s not a bad thing, in many cases we have relationships that have existed for decades where we have literally gone back to square one and treated as if they were brand new accounts. It forces us to be more diligent in our practice, which again is a good thing for all concerned." He
“In any business environment, growth is not an option. If you don’t have growth, you don’t survive.” Bob Shake, Director of Growth, RISQ Consulting
Information and Exclusions In addition to charging higher premiums, insurance companies are requiring insureds to provide more details now than before the pandemic. In some respects, agencies like RISQ www.akbizmag.com
Alaska Business
December 2021 | 11
“I actually benefited from [remote work], being hired as an Associate Claims Executive for the Alaska office, but I live in Texas.” Matt Thon Account Executive Parker, Smith & Feek
adds, “Now what I considered to be a ‘no-brainer’ has become tougher to get because insurance carriers are requiring a lot more information and requiring a lot more details about your internal operations.” For example, “They’re looking at systems, integration, system back-up capacity, employee backgrounds, just to name a few.” Thon says carriers also are requiring “pandemic exclusion” in policies, making it clear there is no intention to cover pandemic-related claims—particularly in relation to the business interruption claims in property policies. In addition, there’s more scrutiny around employment practices liability policies and the potential influx of claims related to the pandemic and working environments. “Remote work has created confusion regarding protocols for policyholders to implement to ensure employees do not experience discrimination related to preferences or requirements to be in the office—or even pressures to get vaccinated,” he says. Insurance companies are in business to analyze and price risk for a
negotiated premium. And despite the unprecedented nature of the COVID-19 pandemic, they have provisions in place to deal with the ramifications of an infectious disease. “Communicable disease and virus-related exclusions have been present in insurance policies for some time,” Thon says. “Throughout the pandemic, insurers have clarified their coverage forms as they relate to COVID-19 losses and in some cases rewrote policy language to eliminate any ambiguous language that could be interpreted as providing coverage for COVID-19 related claims.” Also, while insurance companies are still selling a cyber liability insurance, there are many more exclusions than in the past, and a number of carriers have stopped offering to write cyber liability coverage. Shake says cyber liability insurance used to be reasonably priced, and his job was to reinforce with the insureds the fact that they couldn’t afford not to have cyber coverage. Due to the large increase in cyber-attacks, cyber liability claims, and the impacts associated with the pandemic, cyber insurance premiums have risen dramatically.
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The changes to policy forms are on a “go-forward” basis, Thon says. Business interruption claims filed under property policies due to the pandemic have been vigorously defended by insurers. “This response was expected due to the absence of an actual physical loss, such as a fire,” he explains. “A business interruption claim under a property policy requires a trigger from a covered cause of loss directly impacting their ability to operate. In almost all instances the shutdowns were governmentordered, or the policies contained a specific exclusion for communicable disease. In rare cases some property coverage included communicable disease response coverage, so some insureds were provided coverage, but the insured was subject to providing significant documentation as to the extent of contamination at the insured property, and the coverage provided was limited. Insurers are definitely not positioning themselves to provide coverage for pandemic-related losses; you could say they are working to limit their exposure.” Thon recommends taking advantage of the numerous resources that
www.akbizmag.com
are available. “We are obviously in unprecedented times, and we’re all learning together,” he says. “Keep yourself informed regarding CDC guidelines; focus on keeping your employees and customers safe, and keep yourself informed on insurance industry trends. Your insurance broker likely has tools, such as on-line training, courses, monthly newsletters, et cetera to help you. Don’t feel like you have to go at it alone; utilize your business partners around you and don’t be afraid to ask questions.”
Trends Around Voluntary Benefits Related to insurance is the area of voluntary benefits, also called supplemental insurance or employeepaid benefits. Voluntary benefits are typically offered by the employer through the workplace, and employees can choose to buy them in addition to any core benefits they might receive. These benefits can be fully funded by the employee or split between the employee and employer. The most common types of voluntary benefits are disability insurance, accident
Alaska Business
insurance, and dental insurance, but workers also can choose soft benefits like retail discounts, professional advice, and personal perks. Voluntary benefits can address some of the specific needs employees have as they deal with financial, health-related, and other challenges of the pandemic, according to Pamela Whitfield, the owner of Elite-VB. “The studies are in, and it’s clear just how overwhelmed employees are now in navigating increasing financial pressure,” says Whitfield, who works as a broker in the Alaska and Hawaii markets and has more than twentyfive years of experience with voluntary sales and agency ownership. “BenefitsPRO teamed up with Lively [health savings account provider] in mid-September of this year and revealed some sobering statistics: Only 55 percent of employees feel in control of their financial health; 75 percent of employees want their workplace to provide more resources to help with financial wellbeing; 33 percent of Americans are worried about short-term healthcare costs; and, sadly, 40 percent of Americans
December 2021 | 13
“No one knows how long the pandemic will continue, and disability, critical illness, life, hospital, and even ID theft plans make a difference in people’s lives.” Pamela Whitfield, Owner, Elite-VB
14 | December 2021
expect to spend 40 percent of their savings on healthcare.” Voluntary benefits are also key to hiring, retaining, and engaging talent. The Corestream 2021 State of Voluntary Benefits Report indicates that three in four employees consider voluntary benefits to be a deciding factor for whether they work for and stay with an employer. “SHRM [the Society for Human Resource Management] calls it the ‘turnover tsunami,’” Whitfield says, “and voluntary benefits can play a big part in employees working for and staying with a company. In Corestream’s findings, not only does it say that voluntary benefit offerings will retain employees (83 percent) and engage employees (72 percent), but also aid in attracting new talent (72 percent).” She continues: “The survey also said that a more robust voluntary offering will save employees money (63 percent) and increase productivity (63 percent). With all that HR and employers have to deal with now, such an easy ‘no-cost’ solution that delivers this kind of bang for the buck is too valuable to ignore.” Still, Whitfield says she finds there are employers that discount the value of employee-paid benefits programs (especially in Hawaii). Whitfield’s hope is that employers will shed their limiting beliefs and embrace how important voluntary benefits are in recruiting talent and making a difference in their employees’ lives to financially survive an injury, illness, COVID diagnosis, and other difficulties. “All carriers now provide 100 percent ‘guarantee issue’, which is great as most people’s health has waned during this period and many missed their preventative visits in 2020,” says Whitfield, who previously served as president of the Alaska Association of Health Underwriters. “Industry officials believe this will result in higher claims in 2022.” Whitfield advises employers to value their voluntary benefits program. And if they don’t already have such a program, they should get one in place—now. “No one knows how long the pandemic will continue, and disability, critical illness, life, hospital, and even ID theft plans make a difference in people’s lives,” she says.
She also urges employers to find an expert who knows how to blend products, benefits communication, enrollment tools, and an on-going service model to achieve success. “New benefits will continue to emerge, and you can keep your voluntary offering fresh by working with an expert who specifically knows voluntary benefits as a benefit broker/banker may not have the skill set.”
In the Same Boat Some changes to the insurance industry wrought by the pandemic are the same as those in other professional workplaces. For instance, like any other office, RISQ Consulting had to pivot to remote work. Thankfully, Shake says, productivity levels for the firm’s employees, many of whom are located outside of Alaska, have remained consistent during the pandemic. Parker, Smith & Feek is also experiencing the direct impact of COVID. Accommodating remote work, Thon says, has in some ways “broadened the insurance industry’s hiring pool, making it possible to recruit talent in other areas when before this wasn’t considered,” he says. “I actually benefited from this, being hired as an Associate Claims Executive for the Alaska office, but I live in Texas.” To say the least, the pandemic has been challenging for many business sectors, and the insurance industry has had to be extremely sensitive toward the impact this event has had on its clients. While businesses face rising insurance premiums, exclusions, and other changes to their coverage, Shake says RISQ Consulting is diligent about reaching out to keep clients informed. “The last thing our insureds want to hear is that their premiums are going up,” Shake says. “We’re doing a better job at getting out in front of our clients to engage them with honest, open, and frequent communication.” Shake—whose professional success has been driven by relationships— encourages businesses to get back to basics and connect face to face with clients as much as possible. “I think sometimes in business we make things more complicated than they need to be,” he says. “We need to get back out in front of our clients.”
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FINANCE
Debt Restructuring: Strategies and Options Securing a win/win for lenders and borrowers By Tracy Barbour
16 | December 2021
A
normal part of operating a business is taking on debt, but if that debt is not effectively managed, it can cause cash flow crunches, financial distress, and many other problems. Fortunately, borrowers can use debt restructuring to renegotiate their delinquent financial obligations, so they can restore liquidity and continue their operations. Companies utilize debt for various reasons, depending on their unique needs. Small businesses often take on debt for the purpose of cash flow leveling, according to Michael Branham, a partner and senior financial planner with The Planning Center in Anchorage. “For example, for companies with the uneven realization of revenue (like a financial planning firm that might bill quarterly), but that still have to meet regular monthly expense needs, a line of credit can be a useful tool to fund expenses in an interim period until revenue or accounts receivable are realized,” he explains. Branham also sees small businesses assume debt for acquisitions, capital investments or equipment purchases, or funding a business succession or ownership change. Small business owners also typically restructure debt to improve interest rates, and some small businesses opt to consolidate multiple types of debt—capital loans, lines of credit, and possibly real estate loans—to ensure they can pay their existing financial obligations. Companies that are restructuring debt can seek lenient repayment terms and even ask to be allowed to write off some portions of their debt. “Debt restructuring can eliminate the risk of defaulting,” says Lori McCaffrey, Alaska market president and commercial banking sales leader at KeyBank, “as well as providing an alternative to bankruptcy when a borrower is experiencing financial distress. It can benefit both the borrower and lender.” Sheila Lomboy, vice president and lending unit manager at First National Bank Alaska (FNBA), expressed similar thoughts on the rationale for debt restructuring. “The end goal for the borrower is to allow some breathing space, a chance to reset or refocus, by changing the direction of how they got there in the first place,” Lomboy says.
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“For the lender, restructuring debt is a way to reduce the credit risk.”
When to Consider Restructuring Debt Determining exactly when to restructure debt will depend on the borrower’s situation. However, early detection is critical. “It’s easier to approach a bank when you have historically paid the loan as agreed,” Lomboy says. Paying the bank first is key. “If you have to make the difficult decision on who to pay first—lender versus vendors—that is the sign to contact the bank and have an honest conversation,” Lomboy says. The borrower can start the process by reviewing the current debt, including the interest rate and the loan terms. This information can facilitate devising an approach to resolving the issue. “Short loan terms equate to larger monthly obligations,” Lomboy says. “Consult with your banker on how they can properly restructure the debt to lower the payments or lengthen the term.” It also can be helpful to recognize fundamental balance sheet shifts that
might require the business to have more capital on hand. For instance, if a company is seeing its accounts receivables begin to stretch, the company must address this use of cash. “It might mean that a larger line of credit is needed for additional working capital into the business,” Lomboy explains. McCaffrey also advocates that borrowers take a preemptive stance if they begin having complications with their cash flow. If a business is experiencing financial distress, its managers or owners should immediately assess why and communicate this information to their financial institution. The institution, acting as a trusted advisor, will consider the circumstances around the company’s liquidity issue, including an impending change in ownership. Ideally, business borrowers should have plenty of liquidity to help them through a dip in their finances, Lomboy says. However, the prolonged COVID-19 pandemic has made maintaining liquidity more difficult for many businesses and has amplified the importance positive cash flow. “The
“I think the first priority is to work with a current lender, with whom you've developed a banking and lending relationship… But in a situation where there's little relationship equity, looking at other lenders could be a viable solution.” Michael Branham, Senior Financial Planner The Planning Center
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recent pandemic has allowed business owners to realize that cash is king,” she says. “Without proper reserves, it is hard for businesses to continue paying rent, paying payroll, and buying supplies when there is a sudden halt in their revenue.” For borrowers that are having trouble repaying their debts, their lenders might explore these questions: “Do they have enough cash saved up in the event that their revenues drop? Can businesses maintain to pay their fixed operating expenses and the debts they promised to make? If so, for how long?” These scenarios are some common signs that businesses may need to restructure their debt. A reduction in revenue is another indication that debt restructuring may be warranted— although not always. “Revenue drops can be due to competition in the market. Having to outbid competition can equate to low margins on jobs,” Lomboy explains.
Approaches to Restructuring Debt restructuring is distinctly different from bankruptcy or refinancing. Bankruptcy is a process in which a debtor facing financial difficulty defers payments to creditors through a legally enforced pause. If debtors cannot honor the terms of the repayment plan, they must liquidate in order to repay creditors. Refinancing is simply replacing an old debt with a newer debt, usually with minor changes to terms, such as a lower interest rate. When restructuring debt, Lomboy says, “Borrowers may begin by refinancing existing debt with their lender to lower their interest rates. In addition, some lenders can structure loans by lengthening the maturity date to reduce the monthly obligations. Another alternative is to change the payment status to interest-only for a brief period of time... Additional approaches to restructuring involve consolidating debts or equity extractions for borrowers who can demonstrate loan repayment.” At FNBA, the timeline for restructuring debt depends on the original loan collateral and the agreed changes between the borrower and lender. “Credit approval for any modifications to original terms must be underwritten to evaluate the impact on the business’ future performance 18 | December 2021
and collateral condition to determine the overall credit risk,” Lomboy says. “Borrowers should keep in mind that refinancing and restructuring debt that deals with real estate might require a commercial appraisal. In this case, the borrower should count on four to six weeks for a commercial appraisal to be completed.” At KeyBank, it can take weeks to months for a borrower to complete the entire process to reconfigure their debt. The process generally encompasses an assessment of need, negotiating a proposed modification of terms and conditions, completing a financial analysis, underwriting, and closing. Since circumstances will vary for each ownership entity, market, property, and credit facility, KeyBank often customizes debt restructures with negotiations tailored to specific situations. “Depending upon the circumstances,” McCaffrey says, “reduced or deferred amortization [or] forbearance of payment for a period of time may also be considerations, as well as consolidation of debt, different covenant structures, addition of personal guarantees, increased monitoring, collateral exams, et cetera.” Apart from dealing with lenders directly, numerous third-party companies are also available to help borrowers navigate the process. In Alaska, The Planning Center offers financial planning and advising to businesses and individuals. Its broad services include asset, debt, cash flow, and income management, as well as investment management, estate planning, and tax management. Borrowers can also consult with online debt restructuring options like Second Wind Consultants, which touts its ability to work with major banks and creditors to help clients avert bankruptcy, liquidation, and financial trouble.
Working Directly with the Lender Usually, though, borrowers work with their lender instead of a thirdparty mediator when restructuring business debt. “I think the first priority is to work with a current lender, with whom you've developed a banking and lending relationship,” Branham says. “But in a
situation where there's little relationship equity, looking at other lenders could be a viable solution.” FNBA, the state’s largest locally owned community bank, prides itself on working alongside its customers to help them navigate through the best solutions to help them succeed financially, Lomboy says. “Business owners and lenders should have a working relationship built on trust,” she says. The bank treats restructuring based on the situation presented to meet the needs of the borrower best. FNBA can recommend how it can help borrowers modify their loan to resolve their situation. That is, “As long as the bank understands how the loan will continue to be repaid, the bank is likely to modify the terms reasonably to the benefit of the customer’s ability to repay,” Lomboy says. “Once an agreement is set, the banker and the borrower will provide updates until the loan has been satisfied.” With the typical debt restructuring to alleviate financial stress, the lender will review the overall risk profile of the client. This can include historical and projected performance and cash flow forecasts to determine the client’s forecasted cash burn; liquidity position and access to liquidity; ability to service debt, including upcoming debt payments from other lenders; legal liabilities (lawsuits), if any; capital expense, in particular deferred maintenance; owners’ distributions and tax liabilities; and the type of industry, its volatility, and industry-inherent risks. “If the client has a proven history of navigating through difficult financial conditions in the past, that would prove beneficial to them in a restructuring of debt situation,” McCaffrey says. “Dependent upon the client’s overall risk profile, the lender may also take into consideration the availability of personal guarantees, additional collateral, or other protective measures.” By working closely with their lender to restructure their business debt, borrowers can facilitate the process—and keep their financial institution from being caught off guard. “Just like with all relationships, no one likes a surprise,” Lomboy says. “Always keep the lender involved, and sometimes even a small mishap
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“Just like with all relationships, no one likes a surprise… Always keep the lender involved, and sometimes even a small mishap is okay to let the lender know about. This builds credibility.”
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Debt Restructuring Tips Like debt itself, restructuring is a tool. Financial experts agree that honest communication with lenders is the first step to straightening out a business’ debt payments. Branham encourages business owners to establish a proactive relationship with their bank or potential lender, especially when a small-town bank or credit union is involved. “It can make the discussions more tenable when it comes time to increase borrowing or restructure existing debt,” he says. McCaffrey agrees, adding that early communication and responsiveness can be effective in managing lender expectations. “A borrower should have the requested information readily available,” she says. “And a financial institution can often be more accommodating to a restructuring request when the loan is current.” “Trust is built both ways,” Lomboy says, “and lenders should be able to identify and provide feedback on the vulnerabilities that a business owner may encounter.” Debt restructuring is a strategic tactic that can be implemented by businesses large and small. And regardless of the company’s size or approach to reorganizing debt, the primary objective is to minimize financial harm, overcome financial hardship, and improve the business. www.akbizmag.com
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December 2021 | 19
I
TELECOM & TECH
Innovation and Internet
Forging new connections mitigated the effects of the pandemic on businesses—at least those with access
By Isaac Stone Simonelli
20 | December 2021
n an age where private businesses are sending people to outer space, the technology that makes the difference for rural entrepreneurs is something many Americans take for granted: stable access to the internet. And the COVID-19 pandemic has forced even businesses in urban centers, such as Anchorage and Fairbanks, to step up their digital presence and embrace processes or tools already utilized by companies in the Lower 48. “Small businesses were really challenged on the front end,” says Jeffrey Salzer, the Alaska deputy district director at the Small Business Administration (SBA). “Especially those that were lagging in technology.” When the pandemic hit nearly two years ago, businesses were scrambling, particularly small “main street” businesses that had very limited digital presences, despite being on Alaska’s fiber network, Salzer explains.
Adapt and Overcome One of the biggest technological changes for businesses was focused on point-of-sale. This was perhaps most prominently seen in the restaurant industry. “A large majority of them before the pandemic weren't really optimized for online ordering, takeout, and delivery,” explains Jon Bittner, the executive director of the Alaska Small Business Development Center (SBDC). “They weren't using the delivery services: the third-party services like DoorDash and things like that.” Businesses that had relied on walk-in customers suddenly found themselves with a point-of-sale system that simply didn’t work during the pandemic. “It definitely forced more of those businesses to engage with their customers on a meaningful level digitally, as opposed to before where it had been mostly in person or through the phone,” Bittner says. Those restaurants had to transition and figure out how to work with other partners to integrate this new point-ofsale technology, explains Salzer.
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“Technology has kind of become what we've all gone to, to cope with the changes and how we do our jobs,” Salzer says. Even the SBA wasn’t immune from the need to adapt and change to meet the needs of the businesses that relied on it. The administration was forced to find new ways to help businesses overcome technological barriers just to access funds for the Paycheck Protection Program, the Shuttered Venue Operators Grant, and the Restaurant Revitalization Fund. “You needed access to technology to do that,” Salzer says. The SBA, along with SBDC, the Veterans Outreach Center, the Women's Business Centers, and other partners, exerted a lot of energy to make sure that the information about resources made available by Congress was getting out to the people who really needed it, says Steve Brown, the Alaska district director at the SBA.
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Face to Virtual Face Another industr y segment that saw a rapid adoption of technology was mental health ser vices, says Bittner. The need for social distancing and the increased need for such services created an environment that drove change. “They have discovered that it's actually quite feasible to do that through a video link. And I think that that's going to allow them to offer a lot more flexibility in their services and cover a larger geographic area,” Bittner says. Alaska is well known for being a leader in telemedicine because of the need to provide ser vices to rural communities; however, Bit tner says that the pandemic created a need for a rapid, almost industr y - wide implementation of telemedicine of ferings . “So, instead of sort of doing the slow and steady, we just sort of had to flip a switch,” Bittner says. “I think that in particular worked very well.” Running in tandem with changes in the Lower 48, how meetings are conducted in Alaska has also evolved because of the technological solutions to pandemic-era problems. “I suspect that there will be a lot more discussion in businesses of all stripes about replacing in-person www.akbizmag.com
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December 2021 | 21
“If you are a business of any size that wants to grow, eventually you reach maximum capacity for your area and you have to find ways to expand beyond your sort of immediate location. And the best way to do that is digitally.” John Bittner Executive Director Alaska Small Business Development Center
meetings with virtual meetings or other digital options,” Bittner says. “We're seeing a lot more people talking about the Asana workflow program and Slack rooms.” Video conferencing has also become a mainstay of business operations. “Zoom is pretty well ubiquitous,” says Vickie Kelly, the Alaska business development manager for Leonardo DRS, which specializes in offering broadband services, as well as technology support, cybersecurity, and network operations. As part of its core operations, the company operates fiber optic, microwave, and satellite networks, including a 600-mile microwave network from Fairbanks to Allakaket. “It seems like Zoom has really cornered the market,” Kelly says, though she does see some use of Microsoft Teams. “With the pandemic hitting so quickly, and people having to figure out a way to interact with their employees and with their customers, I think Zoom really rose to the top because it was free.” Additionally, Zoom developers created the hooks necessary to automatically import meetings into Outlook and other calendar services— keeping workflow straightforward for less tech-savvy business owners. “We're also seeing a lot more flexible work arrangements, even as people start transitioning back to in-person workspaces,” Bittner says.
Cyber-Commuters Part of the reason some companies are continuing to create a blended in-person, at-the-office environment is not just because of the continued presence of the novel coronavirus— it’s because both companies and employees have gotten used to the arrangement, says Bittner. “For the most part, we've heard that efficiency is not a real problem and employee morale tends to go up,” Bittner says. “I think that it's going to be particularly impactful in Alaska. One of the reasons being that we're a small population state spread out over a very large area.” The more flexible work arrangement allows smaller communities to have access to a much larger labor pool than they normally would, Bittner 22 | December 2021
explains. He points out that prior to the pandemic there were often attitudes that if a person had an office job, they needed to come into the office to get it done. “The internet is the great equalizer,” Salzer says, noting that those in Alaska who do have access to the fiber network can do anything anyone in one of the financial centers in the world can do. “One of the great things that we've learned about during the pandemic is we're able to do what we do… [mostly] untethered from a physical location. And we're seeing that with large corporations and small businesses alike.” Even before the pandemic, there was talk in Alaska that recent advancements in technology allowed people who had jobs in the Lower 48 or elsewhere to base themselves in the Last Frontier. Though the possibility existed, it was rather unusual for people to take advantage of it—even at the height of the gig economy, Bittner explains. “But now we've moved away from only high-tech startups [thinking this way] and now it's everybody,” Bittner says. “We're talking about counselors; we're talking about lawyers; we're talking about architects and general office workers. They are all very familiar and savvy with working remotely.”
Reaching Eyeballs Social media has also created avenues for direct sales to consumers that were less understood and rarely put into practice a decade ago. In Alaska, entrepreneurs can create Facebook pages, using them as a stand-in for a website while also making sales through the Facebook marketplace. “And it's not just for the individuals selling individual services, but you've also got businesses that are brand new and brought from the ground up that sell specifically online,” Salzer says. “Folks that were able to sell online and keep their products moving and their inventory moving really made the difference for a lot of folks—I know it made a difference for the consumers.” Digital advertising, already a mainstay for many companies, became important for even small Alaskanowned businesses.
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“As the pandemic persists, people are more isolated than normal— they're also not going out as much as normal, they're not engaging in the day-to-day sort of Brownian motion of society, as they normally would before the pandemic,” Bittner explains. “Largely speaking, they're online. Everybody is binge watching Netflix and checking social media and trying to stay connected through digital means.” As marketing goes, businesses want to put their name, branding, and deals where their consumers are absorbing information. This can be particularly important for rural entrepreneurs, though even those growing their businesses in city centers will most likely start feeling their geographical constraints if they don’t. “We're spread out over a large geographic area. Most of our populations are fairly small,” Bittner says. “If you are a business of any size that wants to grow, eventually you reach maximum capacity for your area and you have to find ways to expand beyond your sort of immediate
location. And the best way to do that is digitally.”
Know What You’re Doing Because an entrepreneur no longer needs to have an advanced degree in programming to reach digital markets, artists and creatives operating in rural communities can support themselves by accessing customers all over the world, Bittner says. “Anybody that really, theoretically, wants to sell something online can,” Bittner says. “But you have to know what you're doing, and you have to understand what doesn't work. And that's really the learning curve that we as a state should probably work on addressing.” The SBDC provides a variety of training for Alaskan business owners. It offers everything from website design to how to utilize financial programs, such as QuickBooks. One of the most popular trainings is how to market a business in the modern digital age, Bittner says. The SBDC also provides training on cybersecurity issues, which Bittner says
is an increasing problem as businesses adopt new technology and expand into a more digital space. “If you can afford it, it definitely is not a bad idea to talk to a company that specializes in showing you how to protect yourself online,” Bittner says, noting there are several excellent Alaska-based companies for this. “If you're a smaller company, maybe even just a sole proprietor, I'd highly recommend checking out some of the free online training tools and guidelines that people like the SBA and my organization, the Alaska SBDC, and others provide.” Companies can also benefit by engaging with more cloud-based services, such as online transactional platforms, online financial processing services, and online logistic management systems. Bittner points out that such services allow businesses to get real-time logistics, sales, and financial information, providing decision makers with the best data available. “It is definitely going to improve your odds of being able to weather what's coming,” Bittner says, referring to the
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Alaska Business
December 2021 | 23
“Rural connectivity is one of the pinch points for small businesses… I mean, cutting-edge technology for a lot of Alaska is just trying to get a good cell phone signal.” Steve Brown Alaska District Director Small Business Administration
weakened international and national supply chain. “You'll find that even large-scale providers, the Amazons the FedExes... they've all either begun to or have already developed a suite of programs and services and outreach efforts specifically to smaller businesses,” Bittner says. “I think that the reason there is that it's sort of a feeder program.” Bittner explains that if these corporations can engage with small businesses by providing the tools they need to optimize early on, there will be dividends paid when the businesses grow and expand.
Bridging the Gap Digital marketing, Zoom meetings, online marketing and cloud-based logistics, human resources, and financial services don’t work without at least some access to the internet. “Rural connectivity is one of the pinch points for small businesses,” says SBA’s Brown. “This is particularly an issue in rural Interior Alaska.” The state is focused on bridging the internet gap so more of the opportunities created through such
connectivity can make it to smaller communities and rural villages, Brown says. “I mean, cutting-edge technology for a lot of Alaska is just trying to get a good cell phone signal,” Brown says, noting that connectivity alone has created hurdles for the SBA in its efforts to get its programs and services into the hands of rural entrepreneurs. There is a dearth of access to broadband for communities in Alaska that are not directly connected to Quintillion fiber, which runs through a handful of Alaska hubs. “It's when you get into the interior of Alaska where you do not have access to fiber,” Kelly says, noting exceptions, such as Fairbanks. “There’s just a real lack of sophisticated infrastructure here to really support our more remote areas. And, even when you can put that infrastructure in, the cost is high.” Depending on providers, businesses in rural areas that can connect to broadband sometimes have to shoulder internet bills that are in the range of $600 to $800 a month, Kelly says.
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“It's not just access to the internet, it's quality access to the internet, right? It means it has to be stable,” Kelly says.
New Connections Depending on the type of connectivity a company has in rural Alaska, such as a geostationary satellite, it can be frustrating and even uneconomic to try to operate cloud-based business suites designed for small businesses. “Latency really plays a significant role in cloud-based applications,” Kelly says. Her company, Virginia-based Leonardo DRS, has implemented what it calls caching servers for some of its clients to help with this issue. This allows an application or a cloud-based solution to download information that decision makers need frequent access to and cache it locally, Kelly explains. By doing this, the service doesn’t need to connect to the internet every time it needs to find something. The future of Alaska internet connectivity, however, will be low Earth orbit (LEO) satellites, Kelly says. OneWeb, SpaceX, and Telesat are all providing or set to provide LEO-based internet options.
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“This is awesome news for rural Alaska, because they're going to be able to get internet at fiber speeds for a fraction of what it costs on a geostationary satellite today,” Kelly says. Kelly warns that there will be limited bandwidth available at first, so she advises businesses to be early adopters of LEO and coordinate their needs with their providers. With several one-time federal infrastructure cash infusions on the horizon for Alaska, Kelly says it's going to be vital for the state to be smart with how it brings internet connectivity to rural communities. “Over the next five years, we're gonna see a lot of change and connectivity and pricing and availability in the state, which is good,” Kelly says, pointing toward LEO projects. “We're lacking a lot of last mile infrastructure and a lot of money to be able to supplement the cost of what people are paying for their internet connectivity.”
Built to Last Navigating the need for connectivity and other technological hurdles has not been easy for many businesses.
Alaska Business
Brown points out that more than 40 percent of businesses will not be able to keep their doors open by the time the state reaches the other side of the pandemic, and a significant number of those that do won’t make it another five years. “Some of the difficult lessons learned and adaptations that came as a result of the pandemic—we're going to see business built on those lessons,” Brown says. “I think we're going to see a greater adaptation and improvement on what was created through necessity.” Bittner agrees that out of the adversity and chaos caused by the pandemic there have been innovations that will last. “I hope that as a state… we really take the good and run with it and support it and find ways to help our businesses continue to grow. Because the more we understand the technology, the more we get engaged, the more we can access customers outside of our state or outside of our cities, the stronger our economy is going to be overall and it will benefit all of us for many years to come,” Bittner says. “And, quite frankly, we could kind of use a win right now.”
December 2021 | 25
H E A LT H C A R E SPEC I A L SEC T I O N
Voices of Healthcare: Professional Perspectives The Alaska healthcare landscape By Scott Rhode
“I
Dr. Maryna Orin Kerry Tasker
26 | December 2021
think there’s been a change in culture, and I think Alaska has been a little bit more progressive in promoting women,” says Ella Goss, CEO of Providence Alaska Medical Center (PAMC). Goss started working at Anchorage’s largest hospital in 1997 as an ER nurse and rose through the ranks of management. Providence has intentionally promoted female leaders from within, she says, developing their potential because the talent pool in Alaska is so small due to the state’s population. The population was even smaller when four Roman Catholic nuns followed the 1902 gold rush to Nome and started a hospital there. In 1910, they built a hospital in Fairbanks, and in 1939 they built a fifty-two-bed hospital in Anchorage. PAMC has grown Ella Goss to 401 beds and is one of the Providence Alaska Medical Center largest employers in the state. From the Sisters of Providence to the face of Alaska’s COVID-19 response, Dr. Anne Zink, women have led the way when it comes to keeping the Last Frontier healthy. Without discounting the contributions of the entire medical community, Alaskans have relied on female physicians, nurses, therapists, technicians, administrators, and support staff as the backbone of the healthcare system. Because of this history, we sought women’s perspectives on the state of healthcare in Alaska, particularly as the pandemic has tested the system and everyone who works to maintain it.
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optometry, pharmacy, physical therapy, radiology, and the laboratory. The chief medical officer for the State of Alaska never set out to have that job. In fact, when Dr. Anne Zink was growing up in Colorado, “I told myself I would never be a physician.” She studied inorganic chemistry instead, but she wound up in med school anyway. After working in the ER in Palmer, public health caught her interest, and from there she Anne Zink was appointed Dr. Kerry Tasker to a position most Alaskans never hear about. On her watch, the COVID-19 crisis came, and Zink became the doctor to the entire state’s bedside. However, Zink says she doesn’t see herself as a role model, if only because she feels inspired by so many others. While some are drawn into healthcare, Dr. Jennifer Kolanko strove to enter the field from a young age. “As early as third grade,” she says, “a good friend of mine and I would rent books from the library with a medical focus.” Kolanko, the manager of PeaceHealth Ketchikan Medical Center’s Rehabilitation Therapies department, credits her interest to growing up with hearing-impaired parents and a hearing-impaired sibling. She figures that pointed her toward helping those in need. Ella Goss was only a bit older when she set her sights on medicine. “When I left high school, I knew that nursing was in my future,” she says. “I started with a hospital-based RN diploma program [it was a three-year program] and absolutely loved nursing.” Goss, originally from Canada, became a travel nurse, and during an assignment in Alaska she loved the place so much that she stayed. As she acquired experience, Goss rose to leadership positions. “I was invited to apply for a director job when I was a chief flight nurse,” she recalls. However, “I didn’t meet the qualifications, which was master’s preferred, bachelor’s required. And so I went to my boss and said I’m not qualified, and they changed the Wash your hands | Socially distance | Wear a mask
requirements… I was flattered that the requirements were changed for me, but I didn’t think it was appropriate.” So she sought the necessary degrees anyway. Goss says she only began working in the emergency department because other specialties were highly unionized in Canada. Emergency medicine was Zink’s chosen specialty, though, after she observed close cooperation between colleagues and realized she could learn from them. Orin specialized in bariatrics after a residency in Cleveland. There she saw she was making a difference for her patients, “seeing immediate results from surgery and then seeing them long term, seeing them a hundred pounds lighter two years from now, and how they’re able to chase their kids around and have a normal life back.” Physical therapy became Kolanko’s specialty because of her interests in overall wellness and prevention of disease. Likewise, Jodi Pfeiffer became a physical therapist assistant (PTA) simply to help people. “Physical therapy is a way to help people achieve their highest level of function and perform the activities that they need and want to do,” she says, and Jodi Pfeiffer UAA PTA Program now Pfeiffer is the PTA program director at UAA.
Obstacles To succeed in healthcare, professionals must overcome various hurdles. The training and education can be a challenge—at least, finding the time for it, according to Goss. “I think the biggest obstacle for many of my colleagues is work-life balance. Many of my female colleagues need to work full time… [so] furthering of their education becomes a luxury versus a priority.” When she mentors female leaders, Goss encourages them to make school a priority, though she acknowledges that she’s fortunate to have been able to do so. A language barrier kept Erly Areniego from becoming a nurse, as she once dreamed, but she still makes an impact as Environmental Services December 2021 | 27
HE ALTHC ARE SPECIAL SEC TION
Many Paths Prior to statehood, barely a dozen MDs worked in Alaska, and female doctors were even rarer. When Helen Whaley and Elizabeth Elsner arrived in the territory in the ‘50s, they were the first of their kind. Such firsts still occur in the 21st century. This summer, Dr. Maryna Orin came to Anchorage as the first woman in Alaska practicing in her specialty, bariatric surgery. If she had not left her home country of Belarus, Orin might not be helping obese and severely overweight patients today. “A career in medicine in Belarus was not a highly sought career path for many political reasons, and I just kind of brushed it off,” she says. Maybe she would’ve become an engineer, except that she came to the United States as an exchange student in Indiana. “That’s when I allowed myself to explore what is it that I really want, not what society thinks I should do but what is it I want,” Orin recalls. Her path began with volunteering at hospitals, then going to a community college, transferring to a four-year school, then to medical school, and then a fellowship at Duke. “Just because something seemed impossible at the time, don’t give up on your dreams.” Happenstance is how Stephanie Spencer describes her entry into healthcare, starting in the ‘70s as a technician performing electrocardiograms (EKG) for extra cash while attending college. Spencer recalls, “A male friend of mine told me about an EKG job at a large hospital on the midnight shift. Of course, at that time I didn’t know Stephanie Spencer Bristol Bay Area Health what an EKG Corporation technician was, but with my incessantly inquiring mind, I asked him to show me what he did, then went to the college medical library to find out everything else I could about the job!” Spencer became a supervisor, then manager. She earned a master’s degree in healthcare management, and now she oversees clinical services for Bristol Bay Area Health Corporation in Dillingham, responsible for audiology,
H E A LT H C A R E SPEC I A L SEC T I O N
Manager at PeaceHealth Ketchikan. Speaking Tagalog as her first language, Areniego has studied business English and worked her way up from laundry attendant in 2009 to section lead in charge of a crew of twenty-seven. Responsible for ordering, scheduling, and communicating with other departments, the position also came with a raise that helped support her son’s education. Now he’s a surgical nurse at Ketchikan Medical Center. For Spencer, sexism and racism stood in her way, when she was getting started. “I remember at that time, part of the interview process required a picture of the applicant, as well as disclosing personal information that is not allowed today: marital status, age, gender. I remember very clearly feeling that I may not get a job because of ethnicity” as an African-American. “I have always made sure that I dressed well, not expensively, but in my mind there should never be a physical reason not to be hired for a job.” Pfeiffer encountered prejudices, as well, when she was new in the field. “[M] any people did not take me seriously,” she says. “They were sure that I did not have enough knowledge and life experience to perform the job well. In addition, many did not think that I was physically strong enough to perform the activities necessary.” Kolanko learned that sometimes patients themselves are an obstacle to providing care. “You can try as hard as ever to push your recommendations and advice on some patients—but ultimately, they have to buy in and do the work.” When that fails, Kolanko says it’s hard not to take it personally. “I’ve overcome that by being confident and accepting that if I’ve followed the research, used good clinical reasoning, considered the patient’s participation in my plan of care, and ruled out red flags—I’ve done all I can for that patient, and it’s time to refer out. But I’ll never stop being compassionate about wanting my patients to succeed.”
Erly Areniego PeaceHealth Ketchikan
Challenge of Alaska From whichever perspective, healthcare professionals can agree about one thing: Alaska has some special challenges. Zink describes it as the centralization of healthcare into urban areas, which Goss is all too 28 | December 2021
Jennifer Kolanko works with a patient pre-pandemic. She says, "I'll never stop being compassionate about wanting my patients to succeed." PeaceHealth Ketchikan
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If People Only Knew…
trauma from the 1918 Spanish Flu pandemic that is still an ever-present remembrance of the devastation that occurred, particularly in rural Alaska.” “Alaskans have a different lifestyle than people in the Lower 48,” says Pfeiffer. “The lifestyle is more physically demanding than it may be in other areas,” and when their health changes, people may have to change their living arrangements. Pfeiffer adds that people “are so motivated to work hard and achieve their highest level of function.”
“The ‘ job’ doesn’t end at 5:00 pm,” Spencer says. “The ability, want, and desire to help people lives second by second, minute by minute, hour by hour in the interactions that are created at the hospital, grocery store, gas station, and hardware store.” That holistic approach means “supplying them with hope,” as Goss describes a CEO’s role toward caregivers, patients, and everyone in her hospital. Similarly, Kolanko says her administrative functions are, in their
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HE ALTHC ARE SPECIAL SEC TION
aware of. “Even though we are what we would call a mid-size hospital,” she says of PAMC, “in other states we wouldn’t be considered the same because there would be so many other facilities around that state. But in Alaska, Providence is really the catch-all… All things come to us.” It’s a fact of life Orin noticed within her first months in the state. “A great portion of your patients are going to be from small towns that are very remote.” Although telemedicine helps, Orin says there are other challenges. “For example, when I’m seeing a new patient, we have a standard set of labs… imaging that we need to do… and unfortunately, not every small community has a hospital nearby that has everything.” Challenges don’t end after patients are discharged, according to Kolanko. “How will they enter their home that has thirty stairs to enter, that they can’t climb? Will we need to have them transported by the medics? The patient lives nearby on a remote island that is only accessible by floatplane. How will we get that patient safely transferred onto the plane?” Certain resources are limited and often not covered by insurance, Kolanko says. She and Zink both note that Alaska’s vast distance adds to costs. From her vantage point in Dillingham, Spencer says all patients must receive the best care regardless of distance: “The patient that is 300 miles from the only hospital in a region still deserves to get their medication, lab results, and other healthcare in a timely manner.” Ketchikan likewise has a limited number of specialty services provided locally, but Kolanko says, “[W]e do a fabulous job overcoming that by hosting visiting specialty provider clinics and through creating relationships with vendors that are willing to provide equipment to our patients.” Alaskans themselves are unique and challenging, Spencer says. “Navigating native customs, political correctness, and social norms all play a part in ensuring great healthcare to the residents of the communities that I serve.” As an example, she says COVID-19 has been a challenge partly because of Alaskans’ cultural memories. “One must understand the historical
H E A LT H C A R E SPEC I A L SEC T I O N
Harbor view of PeaceHealth Ketchikan Medical Center. PeaceHealth Ketchikan
way, a form of treatment. “The support I provide my team directly correlates with their ability to provide optimal patient care,” she says, “and that impacts more patients than I can physically treat on my own.” Support staff touch all aspects of hospital operations. Areniego observes that her environmental services crew might be called at any moment to complete unexpected tasks, but the staff is always willing to help. It provides for good job security, she adds. Healthcare professionals need the public to understand their specific fields. For instance, Orin explains that bariatric medicine is not cosmetic surgery, like tummy tucks or liposuction. “We do sleeve gastrectomies, bypasses, some centers do duodenal switches… It’s not the easy way out.” Similarly, Pfeiffer feels PTAs are misunderstood. “[M]any people would tell me that I was a wonderful PTA and ask when I was going to finish my degree to become a Physical Therapist [PT].” What those people should know, she says, is that being a PT assistant is its own career: “PTAs chose to do this and do not want to become PTs. This being Jennifer Kolanko said, after the PeaceHealth Ketchikan plan of care is established, PTAs can carry out the plan established by the 30 | December 2021
PT.” Assistants have their own training and licensure exam, so Pfeiffer says payment and reimbursement regimes should recognize their expertise. Pfeiffer and Kolanko both feel their field is underappreciated. Kolanko says physical therapists don’t just treat orthopedic and neurologic injuries: “A PT can help with dizziness, bladder dysfunction and pelvic pain, wound care, chronic pain, and swelling of the limbs after cancer care, and so much more!” She adds that the public overrates massage and ultrasound therapy; they are among the least applied interventions that she considers effective. Spencer wishes everyone knew that smaller hospitals, like Kanakanak Community Health Clinic in Dillingham, don’t necessarily have smaller problems. On the contrary: “We have to be able to maintain a patient’s life while waiting for a medevac in horrific weather. Medical staff in remote areas are trained in emergency medicine, geriatrics, and pediatrics, and encounter all types of patients at any time of the day and night.” Not that big hospitals have it easy, according to Goss. “You never truly understand the pressure, within and externally, that is on you as a chief executive to ensure that you’re not only caring for people within your scope of responsibility (all of your caregivers, all of your patients, all of your visitors, all of your physicians) but also how the community views your organization
and how one misstep or misspoken word or one small lapse in care can really affect the reputation of your facility and of your caregivers.” Goss is very concerned about being understood in the proper context, given what she calls “the political climate of the community.” She says, “You end up feeling like you can’t trust people to have conversations because you always put your best foot forward and you try to talk about things appropriately and honestly, and you try to ensure that you’re seeing both sides of the situation, and only what people want to hear is what they take away.” As COVID-19 improbably became a political issue, Zink had to keep the focus on fighting the virus. The enemy is not other people, she says, even though she’s aware some Alaskans think she tells different audiences different things. She quotes Abraham Lincoln: “No man has a good enough memory to be a successful liar.” Besides, Zink says “chief medical officer” sounds like a grand title, but the truth is “I have very little authority.”
Times Change Even a relatively young physician like Orin has seen rapid changes in the healthcare field. Robotics are something to stay on top of, she says. Goss adds that “digital interaction” is changing how care is provided these days, compared to the pre-internet ‘90s. “You had to go to a brick-and-mortar doctor’s office, you had to make an appointment,” says
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Goss. “Now you can download an app and have your blood pressure and your pulse and your temperature taken. You can go to a drive-through lab and have your influenza shot, you can go to a drive-through lab and have your blood drawn, and you never have to see a provider in person.” Even the environmental services department has been computerized. Since she became section lead in 2010, Areniego has seen electronic systems used to track room cleaning, ordering, and call systems. The Digital Age also allows workers to move from company to company, so Goss sees less loyalty to a single organization. She also observes a generational difference in priorities. “Many young people coming into professions have a much healthier work-life balance than we did,” Goss says. “I remember hiring brand new nurses and them telling me, ‘No, I’m not gonna work nights and I’m not gonna work weekends.’ I was kind of like, ‘Uh, everybody does.’” Another change is that specific fields are becoming better understood by the public. Pfeiffer says, “People now realize that PT and PTA are two separate careers that work together in providing physical therapy.” And Orin says her field of bariatric surgery has less of a stigma attached, though it is still significant. “I think people are starting to realize that it is truly the best long term solution that we have for obesity. So we’re seeing that more of these patients that would benefit from surgery are coming through our door, though that number is still very small, only a fraction of the people who qualify.” Orin has also seen more women entering the field of medicine, as well as her specialty. Pfeiffer sees more respect for women as PTAs: “While the profession has historically been predominantly women, we are no longer misjudged for our age or size.” And female CEOs are becoming more common as well. Goss says, “When I think back over the chief executives that were in my role as I’ve come up through, they were all males. When I think about Alaska Regional, Julie Taylor was the first female chief executive over there (that I was aware of).” 32 | December 2021
Dr. Orin chose her specialty because she could see immediate results as patients lost weight and regained mobility. Kerry Tasker
Of all the hospitals and healthcare systems in Alaska, nearly half have female CEOs—a much higher rate than the national average and among the highest of any industry. Goss feels much of the change has taken place in just the last five years.
Room for Improvement What does the future hold for healthcare in Alaska? Orin and Spencer agree that telemedicine should become a bigger factor. Spencer would like to see the technology available for “mental health, optometry, and other disciplines not traditionally known for this type of patient-provider interaction.” Pfeiffer, Kolanko, and Zink all point to accessibility as the biggest area in need of change. “First, we need to improve the Medicare system,” says Pfeiffer. “It is essential that this payment source be revamped to improve for payment of services. This is a barrier for many to receive quality patient care.” In Kolanko’s view, “Healthcare should always be provided based on medical necessity. It is really unfortunate when medical treatment cannot be provided because insurance won’t cover it or doesn’t believe it to be a ‘necessary’ service.” Or, as Zink puts it, make the system work for people.
Zink and Orin both would like to see more emphasis on prevention. For Zink, that includes vaccines for preventable diseases. For Orin, that means referring patients earlier for treatable obesity. “It’s not a failure on their part with diet and exercise,” she says. “This is the standard of care for obesity in 2021.” Spencer and Pfeiffer both want to see changes in the healthcare workforce. Pfeiffer sees the need for more workers in her field: “PTAs are perfectly positioned to provide services in rural and underserved areas. At this time, PTAs are underutilized and could help to decrease the provider gap.” Spencer figures the way to make more healthcare providers in Alaska is to make more Alaskans, by recruiting from the Lower 48. However, she says, many Outsiders “see it as too challenging because of the weather or see it as an opportunity for ‘a trip to Alaska’ for a site visit but do not want to remain here to work.” The solution, she says, is for every Alaskan to sell the state. “We are all ‘marketing’ our everyday lives to promote the benefits and rewards of living here via our social media presence, face-to-face exchange, and telephone interactions. We owe it to ourselves to present the very best we can to attract a vibrant workforce.”
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Alaska Native Tribal Health Consortium
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Healing Hands F for Alaska’s Workforce Physical and occupational therapy prepares workers for the field or office By Isaac Stone Simonelli 34 | December 2021
rom extracting oil on the North Slope to hauling nets in Bristol Bay, the physical nature of work in the Last Frontier can be brutal and demanding. Keeping the workforce mobile is the job of occupational medicine. However, occupational health isn’t just for laborers doing the heavy lifting; desk jockeys can also suffer wear and tear after long hours at their computers—especially when they’re working from home. Layoffs, furloughs, cut hours, and a whole slew of other environmental, social, and physical factors connected to the pandemic have led to the deconditioning of many people within Alaska’s workforce—especially those who were hospitalized by COVID-19. As the pandemic continues to grind communities down and more people
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‘Industrial Athletes’ “Generally speaking, most people just want to be well and healthy and want to be able to provide for their families and want to get back to work,” says Doctor of Physical Therapy Neetu Trivedi, who has been working in occupational medicine for about eighteen years and is a regional manager for Select Physical Therapy out of California. There are many tools and programs now that can help people meet those goals, Trivedi says. Select Physical Therapy uses a biopsychosocial approach that helps practitioners ensure that they are focusing on patient-centered goals and education. By uncovering the psychosocial factors associated with an injury, therapists can unpack the non-physical elements of injury-connected trauma that can be affecting a patient. “It's not that they're faking it because they don't want to go back to work,” Trivedi says. “It's because they just don't have the coping skills. There's a lot of
stress factors around their injury that they don't understand. We as therapists can help them understand and kind of get them to gain more control and independence back.” Trivedi says it’s not only about helping patients break perception barriers but it's also getting employers to understand how they can be better partners in encouraging people to return to work in a safe and healthy way. “The musculoskeletal impairments that we find are obviously going to be similar whether you're an industrial athlete or a sports athlete playing baseball,” Trivedi says. “But all the other factors, the pressures, are different.” Trivedi points out that the patient populations, support systems, and final goals can be significantly different between an athlete and a fisherman or office worker. An athlete might be better prepared and have a stronger support system for quickly healing than an average worker injured on the job, she says. “You can't really cookie cutter the same treatment plan because the diagnosis is similar. The way that you
apply a treatment methodology is really going to depend on that individual's unique characteristics plus their system issues,” Trivedi says. Whatever the treatment, the primary goal of occupational medicine (a specialty within the field of physical therapy) is helping people get back to work, which is a daunting goal during the pandemic. Select Physical Therapy has seen a spike in the number of psychosocial factors that put patients into high risk categories, Trivedi explains. “There's more fear associated with getting back to work; there's more fear associated with potentially contracting COVID, if they do go back,” Trivedi says. “There was a lot of this particularly in 2020.” It’s not only patients wrangling with work; all forms of physical therapy, including occupational medicine ser vices, struggled at the onset of the pandemic.
Essential Divide The pandemic created a divide within the physical therapy community about whether or not the
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look for opportunities to return to work, it’s important for future employees and employers to plan that return safely.
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number of practitioners in its ranks— about half—leave as stay-in-place orders were issued in Alaska. In March 2020, seeing the writing on the wall, Phelps put everyone who wasn’t in the clinic on layoff status. Those that remained took cuts to their benefits as they prepared to ride out the long storm while continuing to care for their communities.
Advanced Physical Therapy
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services they provided were essential, explains Valerie Phelps, founder and practice director at Advanced Physical Therapy. Phelps grew Advanced Physical Therapy in Alaska from four therapists in 2002 to more than eighty employees operating in Seward, Soldotna, Wasilla, Fairbanks, and Anchorage before the beginning of the pandemic. “Half the staff thought that we were not essential, and the other half thought we were essential,” says Phelps, who was firmly on the essential side of the discussion. Physical therapists keep people out of emergency rooms, help optimize immune systems, and support better health and wellbeing. All important services—especially during the pandemic, Phelps says. “They stopped surgery for what, three or four months?” Phelps says. “We were working to help people survive [and] not go down a rabbit hole of drug abuse or alcohol abuse and self-medication while they were waiting for surgery.” Like many physical therapy providers, Advanced Physical Therapy saw a huge
“We're not in it for the money, we're in it because of the love of care and the love of patients,” says Phelps, who continued to work with patients despite being in her sixties and having two autoimmune diseases. Patient numbers also dropped by about 50 percent for Advanced Physical
Therapy. Initially they dropped to 30 percent, and then trended downward over the next six months to 50 percent. “The Advanced Physical Therapy paradigm of treatment,” according to Phelps, “is you need to restore integrity of the myofascial structures and the joints and the movement system before you ask it to move, before you do strengthening, endurance, balance coordination, that kind of thing.” Phelps explains how her services can extend beyond what is normally thought of as physical therapy to assessing and triaging acute, recurrent, or chronic musculoskeletal injuries, helping keep people out of hospitals at a time when healthcare facilities are hitting their capacity due to surges in COVID patients.
Improving Outcomes It’s been a balancing act for healthcare providers to determine when and how to provide different treatments for patients. “We tried to do some more handsoff [work], especially with the COVIDpositive patients, and we collaborated with nursing and respiratory therapy
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TRICARE® approved facility
affects their balance,” Martin says. The isolation that COVID-19 patients faced in hospitals—despite the best efforts of staff—also had an impact.
Advanced Physical Therapy
Climbing Back
Martin explains that at times recovering COVID-19 patients were apprehensive or reluctant to participate in therapy sessions because they were fearful of losing their breath. The best tool in a therapist’s toolbox for such situations is educating patients about what
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Therapists working in hospitals face daily reminders that the storm hasn’t passed and there are good reasons for people to still take basic safety precautions to prevent the spread of COVID-19. Martin emphasizes the importance of people taking care of their physical, mental, and emotional health. “That way, we can continue to improve and boost our immune system and fight this virus,” Martin says. “With [patients’] deconditioned state, also with some of the anxiety that they got from contracting COVID, I think outpatient or home health will pick up.” This is a trend Select Physical Therapy and Advanced Physical Therapy are both already seeing. Slowly, patients have been returning.
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they’re facing and what their road to recovery could potentially look like. “The more care and therapy I think a person can get while they're with us, the higher their chances are I think for success being in the outpatient setting,” Martin says.
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to do some basic exercises to help provide some care for these patients,” says Abbey Jackson, clinical practice manager in the Physical Therapy department at Alaska Native Medical Center in Anchorage. However, Alaska Native Medical Center also has a Level II Trauma designation, so against the trend for other physical therapy providers, the workload didn’t decline. “The traumas did not stop. It was actually one of our biggest trauma seasons—ever,” Jackson says of the summer of 2020. Some of the treatment for trauma, as well as COVID-19, left patients in a deconditioned state, explains Alaska Native Medical Center physical therapist Anthony Martin. Eventually, there was a turning point as the team realized that it was becoming vital for patients to have more significant in-patient therapy work done. Physical therapy, occupational therapy, speech language pathology, and respiratory therapists at the hospital worked together to help patients. “It's their muscles, and they have a hard time getting up, standing. It
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“You can't really cookie cutter the same treatment plan because the diagnosis is similar. The way that you apply a treatment methodology is really going to depend on that individual's unique characteristics plus their system issues.” Neetu Trivedi Regional Manager Select Physical Therapy
Advanced Physical Therapy now has about 85 percent of its pre-pandemic caseload, Phelps explains. “We're slowly, slowly climbing our way back,” Phelps says. Despite this, 20 to 30 percent cancellation rates have become the new norm. A large part of this is due to people canceling even if they have the sniffles, which Phelps says she’s grateful for. Part of the spike in work for Advanced Physical Therapy and Select Physical Therapy has been for post-hire, preplacement testing. “Once a candidate is offered a job, but it's a conditional offer, they would have to go through a physical abilities test to make sure that they meet the physical demand level,” Trivedi says, noting that because of the deconditioned state of so many people due to the pandemic, some employees are returning to work only to be injured a couple months later. “There's a huge return on investment for employers, the more that they invest in injury prevention,” Trivedi says. Rebecca Tamaki, a physical therapist that specializes in occupational medicine for Select Physical Therapy in Anchorage, says another reason for the steady increase in demand for physical therapy has been people avoiding help earlier in the pandemic. “I think people are just saving up all their medical conditions and now they're all going out and they're all wanting therapy,” Tamaki says. Phelps is inclined to agree. “There are people that didn't do any health care for the past year and a half,” Phelps explains. “So now they're getting out and trying to get things taken care of.”
Healing Slowly Select Physical Therapy has developed a post-COVID therapy treatment program focused specifically on patients who have been deconditioned due to their battle with the virus. “They do have issues sometimes that are lingering with their ability to just get that energy, that stamina to keep up with their work demands,” Trivedi says. “So we have a recovery and reconditioning 38 | December 2021
program that we've started that really focuses on the patient that may have had COVID at some point.” Unfortunately, for many patients— even if they haven’t contracted COVID-19—it can be a longer road to meet their goals than it would have been eighteen months ago. “To this day, people are healing slower,” Phelps says, pointing toward the environment of fear and anxiety that has gripped much of the nation from vaccine politics to COVID-19 itself. “There is great research out there about the stress or anxiety in an individual slowing healing times by 30 to 60 percent.“ Healthcare providers are not immune to these stressors. While the increase in business and the increase in patients accessing care are positive changes for therapists and the communities they take care of, these practitioners are under significant pressure. Phelps points out that dealing with unvaccinated patients continues to be a source of stress and risk for providers. “By May, 50 percent of my personal clients had not been and refused to get vaccinated, and I just felt like I was playing Russian roulette with those patients,” Phelps says. Phelps, who is part of at least two COVID-19 at-risk groups, was eventually able to get those patients transferred to her younger, healthier colleagues. “We have anxiety about people coming in who aren't vaccinated,” Phelps says. “The whole thing has had a detriment on the health of everybody who's trying to provide healthcare.” The threat of burnout and the intensity of therapy work is particularly high for therapists. “I myself suffered burnout this spring, just because it was becoming a lot, becoming too much,” Phelps says. “We're suffering as providers… We're struggling to get back on our feet.” Nonetheless, those offering occupational medicine services are determined to help Alaskans safely return to work. “When someone comes to me, they're like, ‘I cannot work and feed my family or pay my rent because I injured my back at work,” Tamaki says. “This is something I feel passionate about.”
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Leadership Renewal & Finding Inspiration The end of extreme effort to improve work outcomes By Woodrie Burich
40 | December 2021
ork-life has been busy and stressful for a while. Even pre-COVID-19, the average worker in the United States worked more hours than those in the United Kingdom, Japan, Germany, France, Italy, and most other industrialized nations, according to the Organisation for Economic Co-operation. Excessively long work hours are defined as regularly working 48 hours or more, according to studies by the United Nations International Labour Organization, and they are tied to poor health outcomes, lower productivity and performance, and a host of other negatives. The average US-based fulltime salaried worker already exceeds this limit by working on average 49 hours per week, says Lydia Saad in Gallup article The 40-Hour Workweek Is Actually Longer—by Seven Hours. My personal experience as a consultant and executive coach validates this trend: most professionals I’ve witnessed (especially in the managerial/leadership ranks) exceed fifty-hour weeks, and many work much more. Recent technology advances and 24/7 access to work seems to add to an overall sense of urgency and our consistently high workloads. Those late evening texts, emails, and weekend/vacation work-creep are rampant in most leadership positions. COVID-19 has exacerbated this problem by blurring lines between our personal and professional boundaries. This blur has become a reality and created additional work burdens. Yet with every crisis comes opportunity, and we are seeing some silver linings. Mental health is no longer pushed to the sidelines. There is collective recognition in the fact that working parents need serious support and that our childcare structures are close to breaking. Since the boundaries between personal and professional life have been severed, the need for serious stress-relief and true support for teams is finally coming to the forefront of leadership conversations. Why? Addressing work stress has become a necessity for organizations to function. The science and research on supporting staff is clear, but now we are starting to see the impact of
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Since the boundaries between personal and professional life have been severed, the need for serious stress-relief and true support for teams is finally coming to the forefront of leadership conversations.
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what happens when people are not supported. The Great Resignation is but one indicator, with burnout, employee retention, and poor work outcomes being others. On the flip side, the opportunities for organizations that step up to this challenge are huge—including improvements to creativity, decision making, and complex problem solving to name just a few. The benefits of shifting our corporate cultures and leadership styles toward a more sustainable path are immense. Consider research out of Harvard and Yale that shows consistent time pressure can drop creativity by a whopping 45 percent. Creativity is at the heart of innovation and competitive differentiation, and it contributes significantly to problem solving. Imagine if we could reduce time pressure and increase creativity by just half that amount. What impact on work outcomes would that have? For more good news and promising opportunities, look at the recent research conducted with elite forces in military branches by Dr. Amishi Jha. Her expertise is on the neuroscience of focus, attention, and mindfulness, and her research, as published in Mindfulness Training as Cognitive Training in High-Demand Cohorts: An Initial Study in Elite Military Servicemembers, shows that the simple daily practice of breathing and focus increases a person’s ability to discern key information under chaotic situations and improves working memory. In other words, it leads to increased performance and complex problem-solving skills under stressful situations. The idea that taking a pause in the midst of a busy day, relaxing with some focused breathing, to improve performance is downright exhilarating in a sea of exhaustion. What leader doesn’t want improved results along with gaining some personal relief? We are at a crossroads in leadership, and our teams and our organizations feel the strain of it. We are in desperate need of a shift in our orientation to work—and we are in desperate need of people who can model healthy, successful, and boundaried work lives. People are going to have to choose how they move forward.
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Those who align themselves with the research and science will reap the rewards, and those who ignore the signs will continue to struggle as we shift collectively into this new era of work.
What to Do Recognize that work culture is shifting. Multiple factors are contributing to this, including the transition of generations in the workplace, COVID-19-related personal and professional stressors, the recognition of mental health (seen in high performing/striving athletes and professionals alike), and the outdated and broken “over-striving/overworked” leadership cultures we have been contributing to over the past few decades. We have reached the law of diminishing returns in relation to work hours, productivity, and positive outcomes that originate from “striving.” We need to back off, step back, and shift our approach to work if we are going to meet the challenges of tomorrow. It will demand more creativity, strategic visioning, and complex problem solving—skills that all thrive when cultivated through providing ourselves space and time for both personal and collective reflection and inquiry. Take Action: Familiarize yourself with recent trends and research on work stress and ways to combat it. Some favorites include the following: 1) Dying for a Paycheck by Dr. Jeffrey Pfeffer, organizational behavior professor at Stanford University, 2) Overwhelmed by Brigid Schulte, New York Times bestseller, award-winning journalist, and director of the Better Life Lab at New America, and 3) the International Labour Organization’s World Employment and Social Outlook Trends report for 2021.
Where to Start It’s important to support yourself and your teams. Self-care and wellness programs are not enough. While self-care is important (largely because it improves our energy levels that in turn increase physical, emotional, and mental reserves), self-care alone doesn’t change the structure of how we engage work. I often use the example of “bubble 42 | December 2021
baths and Friday night unwinds.” While they feel great, they won’t shift our workloads. For the structure to change, we need to implement work boundaries and honor others to do the same.
It is not enough to practice self-care outside the office; we need tools and strategies to support people directly within the corporate setting. Take Action: Understand how self-care, awareness/attention, and boundaries intertwine and work together. Self-care and awareness are the first steps towards setting boundaries, and they work in tandem. We need both the time and space to tend to our own needs, as well as the time and space to reflect and focus our attention on solid solutions for our situation. It is not enough to practice selfcare outside the office; we need tools and strategies to support people directly within the corporate setting. We also need to honor time between meetings and cultivate the space needed for true strategic and creative work—something that will benefit individuals and organizations alike. Case Study: Work boundaries arise when we combine strong selfcare with a commitment to internal reflection and awareness of our situation. Work boundaries require both. The challenge is often we start with self-care and as soon as we start to feel better, we stop. A good example of this is seen with the example of Mary (the subject’s identification for the study, changed for confidentiality purposes). Mary averaged fifty-hour weeks and her
days were intense. She had planned well and organized herself in advance so she could claim a well-deserved vacation. She was able to “mostly unplug,” but still took the occasional call and checked email out of her concern for being overwhelmed upon return (a common scenario for many professionals; we work on vacation simply to avoid being inundated after the break). She was able to find some much-needed downtime and it offered her relief. She had a joyful time and even identified some personal life epiphanies. However, upon return to the office, that feeling of space, calm, and joy vanished. She was right back in the “rat race,” and despite her epiphanies, had trouble shifting her day-to-day work patterns. Mary’s story is much too common and reflects a clear pattern. Self-care (in this instance a vacation) begins to provide us energy. When this energy is combined with reflection time, we often stumble upon some new awareness (epiphany). The challenge in Mary’s situation was she stopped short after her discovery of the epiphany due to the inability to maintain her self-care and space needed for reflection/awareness. Many of us can likely relate to this concept. We simply end the reflection/awareness process too early, resulting in a sort of neverending cycle of short-term relief with no long term solution. In order to actually shift our work lives and begin to implement changes to how we work, we need a continued commitment to this process. This means we need to find, protect, and maintain boundaries that allow us to commit to our own self-care and reflection/awareness process.
Expect Pushback and Get Creative It will take time to shift our work cultures. Many of us have become inured to overtime and weekend work, and we’ve come to expect others to always go the extra mile. Make no mistake about it, striving for excellence is still vital and critical at different stages and moments throughout our career. However, if our trend lines show that the striving is constant, and extreme effort has become the norm,
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Case Study: Bill (the subject’s identification for the study, changed for confidentiality purposes) led the hiring process for his organization. Their application process stressed the importance of independent work, a strong work ethic, and the ability to respond to the intensity and high workloads common within their industry. As a result, the company’s interview questions included a segment on an applicant’s ability to multitask effectively—both how well the applicant multitasked and their ability to effectively work in high-pressure situations. After learning about the ill effects of multitasking, Bill chose to remove this question from their application and hiring process. In addition, he and company leaders reflected on how to support manageable workloads and segment tasks more effectively among staff moving forward.
In Summary The benefits of supporting ourselves and our teams with work boundaries are immense. On the one hand, we can look at the statistics and recognize we are in a moment of “work crisis.” On the
other hand, we can also look around and recognize the opportunities and creative potential that is, as of yet, largely untapped within our work structures. It’s an amazing notion to think that by relieving our stress and claiming more space and time for ourselves, we will benefit personally and professionally. In a time where we feel exhausted, depleted, and drained, it’s an inspiring thought to realize that work outcomes can improve and our creativity can be enhanced by reducing our workloads and eliminating our extreme efforts. Woodrie Burich is a national speaker, executive coach, and owner of the Integration Group, which empowers professionals to create sustainable and thriving work lives that enable them to enjoy more, stress less, and connect with their communities in positive and meaningful ways.
Reach healthcare's largest employers photo: ANMC
Alaska’s healthcare sector pays out more wages than any other industry in Alaska, and more than 5,000 new healthcare jobs are expected to be added to the workforce over the next 10 years. ASHNHA just released Alaska Healthcare Workforce Analysis, a report outlining demographics, trends, and projections for healthcare jobs and wages.
Join ASHNHA as an Associate Member to download the report and reach Alaska's healthcare leaders. www.akbizmag.com
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something in the structure of how we work is broken. Take Action: Reflect on how you and your teams work regularly. Consider hours worked, breaks incorporated, boundaries honored, or not. Consider whether team members have manageable workloads, whether they are required to multitask, and to what extent multitasking is expected (note: multitasking is shown to cause permanent brain damage, drain energy reserves, reduce productivity, and significantly increase errors in the workplace). Be sure to also reflect on time pressure and the levels of stress with project- or industry-specific deadlines (note: consistent time pressure is linked with up to 45 percent drops in creativity). Reflect on whether you personally feel the pace of work has increased, remained the same, or decreased over the past five to ten years. Then, consider the magnitude of all of this—the real prevalence of overwork and how it shows up within our work cultures and for us personally. Finally, explore the opportunities and the possibilities that arise from shifting this for yourself and your teams.
The Storm Is the Norm COVID-19 Lessons Learned By Rindi White
Better Communication, Better Care
Providence Alaska Medical Center
H E A LT H C A R E SPEC I A L SEC T I O N
2
021 has not been a postpandemic year. Vaccine rollouts in the beginning of the year spelled hope for many and led to a broader reopening of businesses. Summer saw a return to travel and other normal activities. But overall, an uncertain economy, goods shortages, and a third-quarter resurgence in COVID-19 cases has made it clear that the pandemic is still very much with us, along with many of its lingering side effects. What impression has COVID-19 left on 2021? Where are we in the pandemic, and what has Alaska learned so far? The lessons are basic, and the message is simple: Be prepared, be flexible, and mind your mental health.
44 | December 2021
Providence Alaska Medical Center has been on the leading edge of the COVID-19 response in Alaska. It hasn’t been easy, and it has required Providence to make some changes in how information is disseminated within their healthcare facilities. Some of those changes will carry over, long-term. “From an infection prevention lead position, I think the most effective strategy we employed early on in the pandemic was coming together as a leadership group and mobilizing around the most pressing needs of the day,” says Providence’s Manager of Infection Prevention Rebecca Hamel. “I don’t typically sit at the executive level; it really allowed me to have access to leadership.” The fluid nature of both the pandemic and the recommended response to it meant sometimes changes happened fast, Hamel explains. Being able to ask Providence leaders to weigh in on best-practices decisions allowed the healthcare provider to incorporate those changes and continually adapt. With personal protective equipment, for example, Hamel says her team had to navigate supply chain constraints and find alternative sources. “There were a couple of times the decision we made at the beginning of the day was a different decision than at the end of the day,” she says.
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“You have to work fast to win,” says Dr. Michael Bernstein, Providence’s regional chief medical officer. “We made a decision, we did it, and then we would adapt. It was a little different than the usual pattern; in quieter times, we had longer meetings and maybe six months of planning, but in this we had to work very quickly.” Providence set up its first drivethrough COVID-19 testing site in just days. Advice about whether patients should be intubated early in their treatment also changed. Best practices, such as putting patients in a prone position, face down, proved to be effective at helping them breathe. Noninvasive breathing support tools have also proven effective. Staff learned how to conserve protective equipment. Everyone learned that masking and social distancing really did help reduce the virus spread. Those rapid shifts in thinking are still happening today, Bernstein says. Elizabeth Paxton, Providence’s regional chief nursing officer, says finding best practices for keeping workers safe while continuing to provide top-level care for patients was crucial. “We’re surging again and experiencing some changes,” she says. “Having those communication mechanisms, especially as large as we are, [is key]. And to try to be as consistent as we possibly could, so we can be a single source of truth.” Helping workers understand and effectively incorporate the changing protective equipment rules and changes to day-to-day care practices has been very important in keeping workers safe, Hamel says. One way her team has done that is by using a strategy she first picked up via the social media platform Twitter. She’s part of an infection prevention group that posts regularly—a professional outlet that has been helpful during the high-stress days of dealing with the pandemic, she says. A post she saw showed a staff member with a white vest labeled “safety monitor.” A person in this role is regularly on the floor, stocking supplies or simply doing rounds with staff. Hamel and her team incorporated the idea and found that doing so opened the door for encouraging staff to use protective
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Providence Alaska Medical Center workers test the fit of new N95 masks. Providence Alaska Medical Center
equipment properly, helped the infection preventionists recognize recurring problems or fatigue— someone putting used gear on the “clean” cart instead of the “dirty” cart, for example—and helped her team to see if a workflow was too cumbersome, so a different solution could be found. “One of the biggest things we’ve learned is, it takes everyone in the building to make sure our patients are cared for,” Paxton says. “[That has meant] reducing the silos and increasing communication and making sure everyone is functioning together as a whole team.” Nearly two years into the pandemic, Paxton says the emergency incidentcommand style of communication that was used at the beginning of the pandemic is still somewhat in effect, although in a hybrid fashion. “We are trying to understand how to incorporate COVID response daily. It is challenging us to come up with, ‘What if this is the norm? What if this is the state that we will be in in the next six months?’ Fatigue is something we are also trying to combat,” she says.
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Fatigue and burnout have accelerated personnel shortages that Alaska and other states are seeing in the healthcare workplace, Bernstein says. When the Delta strain began to cause a surge in cases, it created a crisis. Healthcare industry leaders asked the state for help and, in response, 475 workers from out of state were given courtesy credentials and brought in as relief workers. Providence, with typically around 5,000 employees at locations around the state, received 140 workers to use in various locations. Paxton says the emergency temporary workers included registered nurses, certified nursing assistants, and respiratory therapists. The temporary workers are on hand through December 19. “They’ve been very, very helpful; our staff has been very relieved,” she says. The out-of-state workers aren’t expected to be in Alaska long-term. Alaska Department of Health and Social Services Commissioner Adam Crum likened the worker shortage to a disaster scenario. “We had record high hospitalizations, record turnover at hospitals, the
hospitals were running at redline,” Crum says. “This was a true emergency situation. Think about it as, basically, Red Cross workers.” Bernstein says it underscores the need for training a new workforce. “We knew we were heading toward a workforce crisis in healthcare in the next decade, but the pandemic absolutely sped that up. It emphasized for us how much we need to take care of our workers, to be attentive to their mental care, their family needs. They are the foundation of what we do and we have to be much, much more proactive about that and develop our own supply chain for the workforce. We have to encourage young people to go into healthcare… so we can have a strong future, caring for the community,” he says. Alaska Public Health Director Heidi Hedberg says the state is continuing to work with hospitals and universities to develop a plan. Expect to see more about that soon, she says. “There has always been a healthcare workforce shortage. What is different is that we have an exhausted workforce,
and they are leaving the industry. Before the pandemic, there was interest and desire to address the workforce shortages but the parties lacked funding or programs to expand workforce trainings. Now we’re trying to nail down what we can do… to get more Alaskans to enter into the healthcare sector,” Hedberg says.
Collaborative Success Crum says the brightest area of success from his perspective was the collaborative approach the state public health workers and tribal health system managers took in getting vaccines, testing, and other needed components in place. By starting the discussion about vaccines in July 2020, months before any vaccines were available, Hedberg says plans were laid for a collaborative rollout. This was a lesson learned from the early days of the pandemic when the federal government sent testing supplies. “The federal government… was pushing testing supplies to the state and through Indian Health Service. We saw some communities that had a lot of
Baby, it’s Still Covid Outside By Charles Bell, VP of Sales
Y
es, it is winter in Alaska—and the holidays are here—and as Frank Loesser wrote in his 1944 classic song, baby, it’s cold outside! Unfortunately—so is COVID-19. Two years of living through the realities of a pandemic has been difficult for everyone. #CoronaLife #InThisTogether Fortunately, business in Alaska has been remarkably resilient. Even as some companies have folded, numerous others have opened their doors or even expanded and grown. Alaska Business’ opportunity to be an advocate for business in Alaska is a blessing. We know we have been fortunate,
and that’s thanks to you: our readers and advertisers. So, whether your plans for the holidays are playing in the snow or soaking up the sun, take solace in the fact that Alaskans are resilient, and we have, and will, make it through whatever gets thrown our way. We are ever optimistic about the future of business in Alaska. From all of us at Alaska Business Publishing Company, we wish you warmth and joy this holiday season and happiness and prosperity in the new year.
Charles Bell is the Vice President of Sales at Alaska Business Publishing Co. and is known for his witty puns and successfully helping advertisers reach their target audience. Having worked at Alaska Business since 1998, Charles is well-versed in Alaska’s economic landscape and looks forward to assisting magazine clients with their marketing endeavors.
CHARLES BELL
907-257-2909 | cbell@akbizmag.com – S P O N S O R E D
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C O N T E N T–
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Fresh Faces at the Right Time
H E A LT H C A R E SPEC I A L SEC T I O N
New safety gear gets a thumbs-up. Providence Alaska Medical Center
A healthcare worker assists a traveler with paperwork at Ted Stevens Anchorage International Airport. The state in 2020 set up COVID-19 testing sites in three major and seven smaller airports around Alaska. Providence Alaska Medical Center
48 | December 2021
testing supplies and some communities that didn’t have any,” she says. In addition to working to make sure tests were distributed around the state, Crum says Alaska led the way in staterun testing sites. Hedberg explains, “We stood up testing sites at three major and seven smaller airports. We have continued testing and added vaccines.” Since the sites opened, 5,452 people have been identified as COVID-19-positive as they traveled through Alaska airports, she says, and 6,206 people have gotten vaccinated at an airport site. “We stood that program up in eight days,” Crum says. “There was a lot of work done in a very short time by [D]HSS and Transportation—and the
mobile website [Covidsecure] was up by that time, too.” Hedberg says a great success story for the state’s economy has been how the seafood and oil and gas industries have worked with public health to find ways to continue doing business—which for both industries entails an influx of both in- and out-of-state workers living dormitory-style—while keeping their workers, and the communities they are in, safe. The state continues to use the collaborative model to offer new services to Alaskans. “Now we are using that model with monoclonal antibodies and possible future therapies as well,” Hedberg says. The monoclonal antibody treatment, seen as an effective tool in reducing severe COVID-19 cases, was made available first to hospitals, she says, but the logistics of administering the therapy was initially hard to overcome due to time and space. For some hospitals, infusion labs are where highrisk patients are treated, and potentially exposing them to COVID-19 seemed risky. So Public Health set up an infusion center at the Alaska Airlines Center in Anchorage, demonstrating that the monoclonal antibody treatment can be done “in a group setting that is safe and effective,” she says. “Then we started to see it was a little like wildfire. It started in Anchorage and rolled out to other communities. We saw this evolution of a process for administering monoclonal antibodies,” Hedberg says. “We are aware there are future therapies that are out there going through the administrative process of the FDA. Together we can make sure that all Alaskans have access to those as well.” Ultimately, like all of us, Crum and Hedberg say they are ready to move on to new challenges. “The general public is completely done with COVID, and it’s important for them to know, so are we,” Crum says. Hedberg says she wants to boost Alaskans’ knowledge that the basic tenets of good health—sleep well, eat healthy foods, and move your body— are the best tools to boost general respiratory health and overall happiness. She is looking forward to that message being the prevalent message she gets to deliver in 2022.
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Checking In with Alaska Behavioral Health Meeting increasing demand for mental health services By Amy Newman
W
ith facilities in Anchorage and Fairbanks, Alaska Behavioral Health (ABH) has provided mental health and wraparound behavioral health services to Alaskan children, youth in transition, adults, and families, including those with cooccurring substance misuse, for more than forty-five years. Throughout that time the agency has constantly evolved to meet its patients’ needs, increasing treatment options, creating specialized programs, and extending its reach across the state. That evolution includes a 2020 name change from Anchorage Community Mental Health Services, which it operated under since it first opened its doors on June 11, 1974. The change to Alaska Behavioral Health was intended to reflect both the array of services the clinic provides and its reach across the state. “A little over a year ago, we made the change to Alaska Behavioral Health, with the goal of serving people statewide and having facilities in Anchorage and Fairbanks,” explains CEO Jim Myers. “Our basic philosophy is trying to improve capacity to meet demand, which is a never-ending struggle in behavioral health. We’ve grown 30 percent per year over the past three years, and we’re continuing to grow.” ABH operates several different programs in Anchorage and Fairbanks designed to meet that increased demand for mental health services. In 2013, ABH opened Fairbanks Community Mental Health Services and in 2016 created Alaska Seeds of Change, an indoor hydroponic farm in Anchorage that serves as vocational training program for youth ages sixteen 50 | December 2021
to twenty-three. ABH also assumed operation of the POWER Center in 2016, a drop-in center and clinic for teens and young adults. Each of these programs now operate under the Alaska Behavioral Health umbrella. That expansion continued in 2021 with the introduction of several new programs and treatment options in Anchorage and Fairbanks, each designed to improve ABH’s reach and its ability to meet its patients’ needs.
Meeting Patients Where They’re At When state and local shelterin-place orders went into effect in March 2020 in an attempt to slow the spread of COVID-19, medical providers scrambled to expand or, in some instances, implement telehealth options to facilitate their delivery of non-essential healthcare services. ABH was better positioned than most to make the transition. That’s because telemedicine delivery was a key part of its strategic plan long before COVID arrived, Myers says. “It was a recognition that we do have a number of specialized services and there is a lack of services across the state,” he says of ABH’s decision to implement a telemedicine program. ABH had utilized telemedicine in the past, but Myers says appointments were point to point between the Anchorage and Fairbanks facilities. Tools like Zoom, coupled with a growing acceptance of virtual healthcare, made it more convenient to deliver services to clients in their homes. Because the transition to a telehealth model had already been in the works, ABH’s rollout was smoother and more
efficient than it otherwise would have been, Myers says; by April 2020, 80 percent of services were being delivered via Zoom. “It’s really based on client choice,” Christine Alvarez, chief clinical officer of adult services, says of whether patients utilize services in-person or via Zoom. “Some people are just more comfortable [using Zoom] or it works better for their schedule or there are fewer barriers.” Myers estimates that roughly 40 percent of patients currently utilize the telehealth option. “It’s a long-term strategy to be able to serve people through Zoom where appropriate, with appropriate being where it’s the right kind of service for them and it makes the service more convenient and effective for them,” he explains. ABH is also meeting patients where they’re at with the October soft launch of a mobile crisis team in Fairbanks. A collaboration between ABH and the Alaska Mental Health Trust, the mobile crisis team will dispatch a clinician and peer support specialist—alone or in tandem with EMS or police, depending on the severity of the call— to help mitigate mental health crises in the field. “Mobile crisis teams come in and provide de-escalation and very, very quick linkage [to services],” Alvarez explains. “We can get them an appointment at the clinic right away. We have medical providers that have same or next-day slots; we’ll be able to get them in and get them restarted potentially on their medications or coordinate with other care providers. We’re mitigating that crisis really quickly, so we’ll be able to prevent hospitalizations.”
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EmPOWERing Youth Located in Spenard, the POWER (Peer Outreach Workers Education and Referral) Center is a drop-in center and clinic for teens and young adults between the ages of thirteen and twenty-three. Staffed by a clinician and peer support specialists, the Center is a safe, supportive, non-judgmental space for youth to hang out with peers and have access to education and both mental health and non-mental health resources. The Center has historically served youth who are homeless or lack stable housing, but clinical manager Marissa Hanson says the Center is open to all youth regardless of circumstances.
so, when the opportunity came to purchase the building next door, we thought, ‘Okay, we can build in these things, we can build in space for a shower facility, we can build in space for a laundry, we can build in space so we can accommodate more youth, more treatment space to provide more treatment.’ So, that’s what really drove that need.” Though the opportunity to purchase the building arose quickly, the desire to expand the Center both in terms of size and offerings wasn’t a new one. “It’s been a long time coming of wanting to be able to serve more people and have access to laundry, have access to more of our peer outreach workers on site,” Hanson says. “We’ll have more standalone programs, more structured and group services to work on independent living skills, which includes things like budgeting and cooking, as well as helping ensure good communication and study skills. And embedded in those is our mental health [services].” The increased space means the Center can expand its clinical and
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“People can just come in. There’s no kind of expectation for engagement in services,” she says. “There’s food and activities and clothing and hygiene products and resources. We are able to get people hooked up with housing and rental assistance, driver’s licenses, and other needs through that.” Social distancing requirements during the pandemic initially dropped the number of youths the Center could serve at one time down to six, but the easing of restrictions has allowed them to double capacity. Even without COVID-19 restrictions, the Center lacked sufficient space to fully meet the needs of the youth population. In 2020, ABH purchased an adjacent building that will triple the Center’s capacity and increase clinical space and group-based options. It will also allow them to provide shower and laundry facilities, something staff didn’t initially realize was a need. “You would see kids in the bathroom trying to wash themselves in the sink,” Myers says. “The Seeds of Change program would let kids use the laundry machine to wash their clothes. And
Alvarez says the hope is to expand the unit’s reach to the entire Fairbanks North Star Borough, with the possibility of a telehealth option to reach rural communities. For now, the program will be limited to calls in Fairbanks. “I think it’s always a matter of [being] mindful of ramping up and being able to provide the services that you provide well,” she says. “Right now, we just want to start small to see what the need is and then expand from there.”
H E A LT H C A R E SPEC I A L SEC T I O N
A peer outreach worker stocks the pantry at the POWER Center, a drop-in center and clinic where youth and young adults can relax with peers and access resources such as food, computers, clothing, and mental health treatment. Alaska Behavioral Health
outreach staff as well. An additional clinician will improve ABH’s ability to provide same-day, in-person crisis intervention services, while additional peer outreach workers will allow for more “outreach in the community to connect homeless youth to our center and to resources, as well as provide resources on-site,” Hanson says.
Closing ‘Significant’ Behavioral Health Gaps In most states, the behavioral health system operates under a continuum of care that provides inpatient and residential mental health services, partial hospitalization programs, and intensive and traditional outpatient services, with the goal of placing patients in the least restrictive treatment setting, Myers explains. But as is typical in Alaska, there were significant gaps in the availability of these services on a regional and statewide level. 52 | December 2021
“Alaska only really had the traditional outpatient [services] and the inpatient through Alaska Psychiatric Institute, Fairbanks Memorial Hospital, and Bartlett Hospital in Juneau,” Myers explains. “There was really nothing in the middle, and really nothing for the long-term care.” That meant, depending on the type of care needed, patients’ only options were to seek treatment in Anchorage or the Lower 48 or forego it and utilize a level of care that didn’t adequately meet their needs. Approval of the Section 1115 Medicaid waiver in 2020, however, is helping fill in those gaps by allowing ABH to accept coverage for pilot projects offering previously unavailable services. “What we were really missing was a higher level of care for someone who maybe couldn’t access outpatient clinic-based services,” Alvarez says. “So, what we’ve been able to do
is expand the community-based services, intensive case management, and that’s where 75 percent to 80 percent of the services are provided. So, it really increases client ability to participate in treatment; you kind of are able to meet them in the community where they are, their home or whatever.” An adult mental health residential treatment program in Fairbanks, scheduled to open in November, will provides 24/7 residential care to patients who are not yet able to maintain their recovery safely in the community but are stable enough that they do not require inpatient services, Alvarez explains. “That’s going to be a huge need for the community,” she says. “As of right now, if anybody needs that in Fairbanks, they’re coming to Anchorage, and before we opened our [residential] facility in Anchorage [in January 2021], the only option was to go out of state.” The facility, which will serve adults eighteen and older diagnosed with a mental health or co-occurring disorder and a history of continuous, high-service needs, will provide medication and individual and group therapy under the supervision of an interdisciplinary team composed of advanced nurse practitioners, mental health clinicians, clinical associates, and peer support specialists. The ability to remain in Fairbanks for treatment, rather than seek services in Anchorage or even out of state, is important for a patient’s long-term recovery. “It’s always ideal when somebody needs treatment to have it in their own community, so when you link them to outpatient providers, you have their supports in place, so we’re very excited about that for Fairbanks,” Alvarez explains. Even with the new programs ready to launch, ABH is already exploring new options to meet the continued demand for mental health services. “We’ve been looking at various options for how we can make the next big expansion of space, shuffle things around so multiple things can grow,” Myers says. “We’re just trying to grow to meet demand; I don’t see an end point for that.”
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December 2021 | 53
CONSTRUCTION
2021 Construction Season Wrap-Up Projects move forward despite a year of challenges
Kerry Tasker | Cornerstone Construction
By Rachael Kvapil
54 | December 2021
Alaska Business www.akbizmag.com
A
s the 2021 summer construction season comes to a close, there is a renewed optimism in the industry. Despite the lingering uncertainty of the COVID-19 pandemic, designers, contractors, and crews were prepared to manage health and safety with well-established mask and social distancing protocols along with vaccine accessibility. New challenges presented themselves in the form of labor and materials shortages, an indirect effect of manufacturing disruptions last year and current shipping complications worldwide. Regardless, designers and contractors completed several projects statewide, with many more on the horizon for 2022.
Designs Become Reality Every project starts with a solid design. The design phase usually starts several years before construction, though the timeline varies depending on the urgency of a project, the financial resources of a client, and the capacity of everyone involved. R&M Consultants, an Anchoragebased, multi-disciplined firm, saw the completion in 2021 of several projects they designed during the last decade. One of their main design projects was a major improvement to a 5-mile stretch of the Seward Highway. Mile 100 to 105 is known as a highly trafficked area where drivers regularly speed past the Turnagain Arm community of Indian. Crews reconstructed 5 miles of the Seward Highway in the Bird Creek and Indian areas and improved drainage infrastructure and safety by widening the turn lanes in two critical areas. The Indian Creek Bridge was reconstructed and raised, enabling the bike path to pass under the bridge to the other side without pedestrians needing to cross the highway. The pathway was extended farther toward Anchorage, enabling access from the neighboring communities. Streams were rerouted and re-established to further improve fish habitat along the corridor. R&M completed the design in 2014. Mass Excavation (MassX) completed the construction for this project in 2021. A smaller but equally important project design by R&M that is nearing the end of construction is Phase II of the Chanshtnu Muldoon Park. The www.akbizmag.com
park, at the intersection of Debarr Road and Muldoon Road in East Anchorage, opened in June 2018 after crews completed Phase I, including a skating loop, playground, and farmers’ market area. Phase II focuses on the central area of the park and includes a mix of facilities and natural areas. Improvements include an off-leash dog park, community garden and food forest, parking lot, bouldering and nature play area, bicycle pump park, landscaping, trails, and overlooks. This project is a continuation of an approved 2015 master plan developed by the Municipality of Anchorage Parks and Recreation department. R&M completed the Phase II design in 2015. Construction began in fall 2019 and wrapped up this summer. “Residents didn't really have a park or playground until Phase I of the Chanshtnu Park was completed,” says Christine White, communications manager for R&M Consultants. “Now the community has an area for kids to play, people can congregate, and eventually those who don't have large yards can have a place to grow food.” Shannon & Wilson, a geotechnical engineering and environmental consultancy firm headquartered in Seattle, completed several design projects this year. A project for the US Coast Guard in Kodiak required both it's geotechnical engineers and design services for a cargo dock expansion before the arrival of new cutter ships in the next few years. Their geotech engineers characterized soils and collected information that designers used when creating their plans. In addition to dock expansion, the project includes housing, office space, and additional storage areas. “This project greatly expands the Coast Guard’s capabilities in Kodiak,” says Shannon & Wilson Vice President Kyle Brennan. “The Coast Guard provides an important service to this state and country by protecting our waters and assisting with search and rescue operations.” The Municipality of Anchorage requested similar services for the design of Anchorage Water and Waste Utility’s (AWWU) King Street Warm Vehicle Storage Building. Shannon & Wilson began the geotechnical work last year and continued through Alaska Business
“A lot of projects were successfully completed given the circumstances. A lot of that boils down to finding different products to fulfill the same role and rearranging things to make the material schedule work for the project.” Ryan Watterson Preconstruction & Development Manager Watterson Construction
this year. This expansion includes a building to house existing vehicles, new vehicles, equipment, and code compliant workspaces necessary to operate and maintain water and sewer infrastructure during planned and emergency activities. Brennan says the existing facility is in good condition; however, as the Anchorage population grows and demand increases for water and wastewater services, an expanded warm storage building will allow AWWU to better respond to emergencies and avoid long delays in service.
Contractors Tackle Tight Timelines In addition to the Seward Highway MP 100-105 project, MassX completed several additional projects in 2021, including projects in Southeast. MassX was founded as a subsidiary of Davis Constructors and Engineers, a well-established statewide general contractor, and is now a separate entity acting as a civil contractor offering a diverse range of services, from large December 2021 | 55
Phase II of the Chanshtnu Muldoon Park, designed by R&M Consultants, provides an outdoor recreation space for residents in the neighborhood who previously had to travel somewhere else for family activities. R&M Consultants
project development to intricate building site improvement details. MassX recently completed the logistically challenging Tudor Bingo Water Rehabilitation, near the Seward Highway overpass at Tudor Road. The project required isolating a service tee off a 20-inch water main to replace the deteriorating pipes without stopping water to surrounding businesses and residents. Crews excavated 25 feet deep across almost all lanes with only a thirty-day contract completion time and a fourteen-day closure allowance for Tudor Road. The detour increased adjacent road congestion and risks to a construction crew inside a closure. “The project team used the excavation spoils as a giant barricade for extra protection for the crew on both the east and west ends of the project,” says MassX Vice President and General Manager Mark Erickson. “The project was executed very efficiently, and the impact to the travelling public was minimized.” In 2021, Davis Constructors started two important projects in Midtown Anchorage. Currently underway is the 56 | December 2021
renovation of the space in which REI was previously located at Northern Lights Boulevard and Spenard Road, which will become a new Providence Medical Group Midtown Clinic. “The client selected this location due to the lack of primary care access in the area,” says Matthew Helzer, project manager for Davis. “This new clinic allows providers to serve people throughout Anchorage.” When completed, the 17,848 gross square feet will include a clinic, a physical therapy gym, and an urgent care clinic co-located on the first floor. The common areas will also feature two new stairwells, an elevator, entry vestibule, and lobby. The clinic features fifteen exam rooms, three behavioral health/consult rooms, and associated support spaces. In partnership, the Providence Medical Group and Urgent Care clinic teams identified synergies between the two projects, eliminating the duplication of usable spaces for both clinics, such as shared clean utility storage, soiled utility storage, restrooms, laboratory spaces, exam rooms, and waiting and reception areas.
Also in 2021, Davis Constructors began the Covenant House of Alaska Expansion and Renovation Project on A Street in Downtown Anchorage. The project consists of a 9,471-squarefoot addition to the existing Youth Engagement Center to create twenty-two new on-site “micro-unit" apartments to serve young people ages eighteen to twenty-four who are experiencing homelessness. Both Davis projects are scheduled for completion in 2022. One of the most time intensive projects handled by Cornerstone General Contractors, an all-Alaskan firm specializing in education, government, healthcare, housing, and industrial sectors, was the earthquake repair of Gruening Middle School in Eagle River. The building sustained extensive damage in the 7.1 magnitude earthquake in 2018. Pearl-Grace Pantaleone, Cornerstone’s business development and marketing manager, says it was one of the few schools deemed too dangerous for students, and for two and a half years Gruening students attended class at Chugiak High
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School. The Anchorage School District approved funding and a design/build contract with Cornerstone in the spring of 2020, and immediately designers went to work. Pantaleone calls it one of the most logistically challenging projects, as crews of more than 150 people had to complete eighteen months of construction work in twelve months so that students could return to the building by fall of 2021. “So many scopes of work happened simultaneously,” says Pantaleone. “With COVID, we took every safety measure and social distanced as much as possible. We are proud to say we had no COVID outbreaks on this project.” With an early cold snap, Cornerstone decided to finish remaining landscaping details next year. Farther north, Cornerstone also completed the Interior Gas Utility (IGU) Liquid Natural Gas Storage and Vaporization Facility in North Pole. The facility allows IGU to further natural gas expansion into Interior communities. The project included the construction of administrative offices and storage for two 75,000-gallon LNG storage tanks. IGU installed 72 miles of distribution
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Mass Excavation, a subsidiary of Davis Constructors & Engineers, faced tight timelines to repair water mains on Tudor Road in Anchorage. The company was only allowed to close the road for fourteen days during its thirty-day contract. Davis Constructors & Engineers
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lines around North Pole and fifteen service lines last year. Pantaleone says IGU has already seen an increase in conversions to natural gas in the North Pole area since the facility was completed in February. In mid-May, Watterson Construction, an Alaskan owned and operated commercial contractor, began the first phase of the Spenard East Project, a forty-eight-unit Cook Inlet Housing Authority (CIHA) development consisting of three buildings surrounding a small park. The buildings are on land across the street from existing CIHA housing on the corner of 36th Avenue and Spenard Road in Anchorage. When completed—anticipated in July 2022— these buildings will offer a mix of senior and affordable family housing. Project Manager Shawn Morgan says the new buildings will go a long way toward decreasing the shortage of affordable housing in Anchorage. Watterson Construction also began renovation of Fort Wainwright Building 1001 in Fairbanks. The barracks were first built in 1946 and had to be gutted before remodeling the interior as a more livable facility for unaccompanied
soldiers. Crews will also install new exterior insulation to upgrade the building envelope. The design/build project was awarded last year, but the start was delayed six months due to the pandemic. The building is projected to be finished in late 2022.
In This Together Compared to 2020, designers and contractors expressed greater satisfaction with the 2021 season. Overall, they found the workflow steady and timelines flexible despite disruptions in the supply chain. Communication played a big role in making sure stakeholders understood the reason for project delays and rescheduling. Everyone agreed that their clients were incredibly understanding of the situation as the pandemic had affected nearly everyone’s life either personally or professionally. “We experienced similar supply shortages that the industry as a whole experienced,” says Ryan Watterson, preconstruction & development manager for Watterson Construction. “A lot of projects were successfully completed given the circumstances.
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A lot of that boils down to finding different products to fulfill the same role and rearranging things to make the material schedule work for the project.”
Next Season Projects in the queue for 2022 fall into two major categories: health and infrastructure. R&M Consultants has several designs ready to start the construction phase, including the renovation of four airports in Bethel, Ekwok, Kipnuk, and Togiak. Shannon & Wilson will continue geotech work on several sites affected by the 2018 earthquake. Brennan says repairing damaged infrastructure is a high priority for the Alaska Department of Transportation and Public Facilities. However, its other major infrastructure project is along the White Pass and Yukon Route Railroad near Skagway. Currently, the railroad is replacing a bridge along the railway system, and Shannon & Wilson will start work on a 70-foot retaining wall that will support the soil along this section of the pass. Brennan says this project is extremely important to Skagway’s economy since they can’t run the train past a certain
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point, which affects popular tourism and travel. Cornerstone General Contractors will tackle another school project in 2022. The Inlet View Elementary School replacement in Anchorage is scheduled for the design and preconstruction phase; however, Pantaleone says that crews may break ground in April depending on the outcome of a proposed school bond. The replacement school will be built on a lot adjacent to the existing structure to avoid placing students in portable buildings. Once the new school is completed, crews will demolish the old structure and build a playground. Pantaleone says the new school is needed since the existing structure, built in 1957, has aged out. The new Inlet View Elementary will also have a capacity for 300 students; the current building contains about 250 with a designed capacity of 168. Watterson Construction also recently signed a contract to start construction on the expansion and replacement of the Girdwood Health Clinic. Morgan says the clinic will enhance the capability of social service and mental
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Designers and contractors say healthcare and infrastructure are prominent in their 2022 schedule. Watterson Construction just signed a contract to build a new facility in Girdwood starting next year. Watterson Construction
healthcare while increasing the ability to offer intensive medical services. Phase I of this project began in August and is slated to finish in April of 2022, at which time Phase II and Phase III will begin, with turnover in the Fall of 2022. Though no one has a crystal ball, and no one is yet ready to speak with certainty about the future, designers
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and contractors are still positive that 2022 will continue to move closer to normal as the supply chain stabilizes and materials edge closer to pre-pandemic prices. It is generally agreed that the Biden administration’s infrastructure bill would positively affect the construction industry, as Alaska would receive a significant amount of funding.
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T R A N S P O R TAT I O N
Preparing for the Surge Cargo hubs connect Alaskans to the world By Brad Joyal
T
he state’s entire population relies on ports and airports to connect them to the outside world. It’s Alaska’s major cargo hubs that allow vital materials to enter the state and be distributed throughout it. “The trick with Alaska cargo is Alaskans don’t grow a lot of food up here, and we don’t manufacture a lot of goods in the state,” says Jim Jager with the Port of Alaska. “So, if you’re consuming it in the state, it’s probably being shipped in.” Many of the state’s busiest ports and airports are undergoing changes to keep up with increased cargo traffic, which continues to steadily surge.
Doorstep to the Arctic Nome wants a piece of the cargo action. The Port of Nome has undergone a series of projects designed to create a more efficient space for those looking to transport cargo, most notably the Arctic Deep Draft Port project. The project still has about a year remaining in the design stage, and upon completion it will extend the
60 | December 2021
existing causeway by nearly 3,500 feet while adding an outer basin dredged to roughly 40 feet, which nearly doubles the current depth of 22 feet. The additional space would accommodate more icebreakers, fuel tankers, and oversized cruise ships. Nome’s Port Director Joy Baker says the project “alleviates the majority of concerns about weather,” especially for the Alaska Marine Lines (AML) barges that frequent the port. “Right now, we have the large AML barges coming in, and if you’ve got a bump out on the water in Southeast or Southwest, it’s very uncomfortable for them to get alongside the barge with the tug— it’s just a real challenge,” Baker says. “They’ll either tow in if there’s minimal winds and they grab ahold of the barge so they can push it into the dock, but it’ll delay.” The new project will include the addition of an “L-shape” to the existing causeway which, working with the new deep-water basins, will “break the swell so the vessels can approach from the southeast and east and be able to come
in, make it up to the barge, and push it into the dock fairly easy without the impact of the current and the swell on the surface of the water making it extremely difficult,” according to Baker. “It’s going to knock out, I’d say, 75 or 80 percent of the weather issues,” she says. “It’s an issue almost all the time now in certain times of the year, and that’s going to also allow the tankers to come into the deep-water basin and offload fuel. We could probably get our entire year’s fuel delivery in just about two deliveries instead of about eight to twelve, depending on the volume and whether the weather is going to let you sit there and discharge it all from a barge.” Other recent projects the Port of Nome has undergone include the replacement of a concrete ramp in the inner harbor that, according to Baker, serves as one of only two ramp options for transloading cargo from the mainlines from Seattle, Anchorage, and Seward. “Our transshipping purpose being our hub, we have a high ramp and then a launch ramp that
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doubles as a second cargo ramp—the vessels use it to get in and out of the water and the cargo vessels use it to load and unload equipment and cargo when the other dock is busy with other vessels doing the same thing,” she says. “That is being replaced.” While Baker notes that it seems as though the port is experiencing some new project almost around the clock, the port director also recognizes many of the improvements should have come a long time ago. “It’s primarily because of the state and federal funding for the project in the area,” Baker says of the influx of cargo-related projects. “It’s long overdue—we went through a period where everybody knows the state kind of sunk in that recession, and we saw the dip in the construction mobilizations and demobilizations coming through and the export of gravel material—we saw the dip, but it seems like a lot of those projects are moving nowhere near the amount they would if there was funding. The construction projects are growing, and we’ve had a number of project materials and equipment come through Nome going to projects recently.”
The Petroleum and Cement Terminal in Anchorage was expected to be complete by December, but an increase of beluga whale activity slowed construction work. The completion date is now pushed back into 2022. Port of Alaska
Basic Industries cement plant. The PCT project is the first phase of the Port of Alaska Modernization Program, which is expected to be entirely completed by 2024. “If everything works great, we will be well into design and permit work by next summer, and construction on the new docks and demolition of existing docks will probably resume in 2023 or 2024, somewhere in that neighborhood,” Jager says.
T he por t is maintaining a strategy of “build, demo, build, and demo,” Jager says, pointing out that construction began south of the port’s existing docks. When the Por t of Alaska Modernization Program is complete, Por t of Alaska will have a dock that ’s slightly shor ter than the existing dock located about 400 yards south of the existing location and about 150 feet fur ther into the ocean.
Open Wide “Alaska’s big cargo logistics challenge is we’re a relatively small market—three quarters of a million people for the whole state—at the end of a very long supply chain,” says Jager, the Director of Business Continuity and External Affairs and Facility Security Officer for Anchorage’s cityowned Port of Alaska. “Not only that, but our three quarters of a million people are spread out over a huge area. So what that means is we’re not a very efficient place to supply, and cargo logistics drive every decision. We don’t have a big enough market to support redundant ports like the Port of Alaska, so what that means is if we have a failure here, basically the whole state is bunched.” The state’s busiest shipping port is perhaps the closest to seeing changes as it nears the completion of its new Petroleum and Cement Terminal (PCT). The PCT will give the port a pilesupported dock south of its existing terminals and alongside the Alaska www.akbizmag.com
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According to Jager, the PCT portion of the project is critical due to corrosion that continues to build on the existing Petroleum Oil Lubricants Terminal 1. “One of the issues we suffer here in Anchorage is our wharf piles have a condition called accelerated well water corrosion,” he says. “It’s actually a fairly common thing in northern ports; if you’ve been to Norway or Russia or other northern ports, they have the same issue. There’s a critter in the mud—a microbe—that in the area of the pile that is near the mud that gets occasional oxidation from extreme low tides, your corrosion is extremely accelerated.” The PCT was expected to be complete by December, though an increase of beluga whale activities near the port has caused delays. “We’ve had a lot more work stoppages this year than we did last year,” Jager says. “We had contingencies worked in for the work stoppages, but all of the beluga activity is pushing us a little bit. A huge challenge has been the permitting, specifically the permitting for the endangered
marine mammals. Building this facility without disturbing whales or with minimal whale disturbance has been a challenge.” Even with unanticipated delays, ceasing operations is not an option at the Port of Alaska. “We have to stay open the whole time. Eighty percent of Alaskan container freight is coming across our dock, and Alaskans need that to eat,” Jager says. “We can’t afford to close the dock down, that means we have to keep everything open.” “Of everything that comes into the state, about half crosses the Port of Alaska docks and about half of the cargo that crosses our dock ends up at a final destination outside of Anchorage,” Jager explains. “Port of Alaska is the place where most of the containers are coming in, and it’s also where most of the fuel is coming into Southcentral Alaska. Basically, 100 percent of the fuel consumed at JBER [Joint Base Elmendorf-Richardson] crosses our dock, about 60 percent of the fuel consumed at Ted Stevens International Airport crosses our dock. That not only has statewide and
nationwide but worldwide implications because Ted Stevens last year was the fourth-busiest cargo airport on the planet by tonnage landed.”
Air Cargo Keeps Booming More than 3.2 million tons of air cargo landed at Ted Stevens Anchorage International Airport (ANC) in 2020—a 15 percent increase over the record-setting volume landed in 2019. That year-after-year growth is unlikely to slow down for 2021, according to Airport Director Jim Szczesniak. “From January to July and as of right now,” he says, “we are up 23.45 percent versus that time in 2020,” as of late September. Szczesniak attributes some of the airport’s recent cargo growth to a COVID-19-related e-commerce boom, though the director also acknowledges the airport had been trending to become a conduit between North America and Asia long before the pandemic began. “From our perspective, e-commerce is definitely driving a lot of that growth,” Szczesniak says. “We were anticipating that to happen, but it’s
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just been condensed into such a short period of time.” In order to keep up with the increased cargo demand while helping ANC maintain its status as a prominent cargo hub, the airport has a series of cargo-related projects in the works with a total construction cost of more than $1 billion. Among the biggest projects is IC Alaska’s planned maintenance hangar that will increase the airport’s ability to house jumbo jets while also offering additional warehouse space at the south end of the airport. Furthermore, 6A Aviation has proposed a 195,000-square-foot warehouse and six parking positions for cargo jets; Alaska Cargo and Cold Storage is building a $200 million refrigerated warehouse; and UPS and FedEx both have plans to include their respective cargo hubs within the airport. “Cargo and Cold Storage and 6A Aviation—both of those have their leases signed,” Szczesniak says. “IC Alaska, the lease signing on that project is imminent, and then FedEx and UPS are going through their processes to get those projects approved by their
As the first phase of the Port of Alaska Modernization Program, the new Petroleum and Cement Terminal will give the port a pile-supported dock south of existing terminals and alongside the Alaska Basic Industries cement plant. Port of Alaska
Board of Directors, and once those are through the board of directors process, we’ll execute leases with them.” Although Szczesniak says the airport can maintain operations during construction, he notes that many more projects are needed to make ANC an efficient cargo destination.
“It’s not a ‘build it and they will come’ scenario,” he says. “They are already here. The airplanes are here. The problem is they can’t be efficient because we have no infrastructure for them to do cargo transfer stuff. With these new projects, that will definitely enable the aircraft to be
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more efficient by doing the cargo transfer here.” Szczesniak is confident that ANC’s investment in improving its status as a c a r g o h u b w i l l h a v e l a s t i n g e f f e c t s for Anchorage and the surrounding communities. “We see that as a catalyst for future development in and around the Anchorage economy because of the fact that we might be able to do more with the cargo that’s here—some value-added services to the stuff that comes through here,” Szczesniak says. “And then obviously the cold storage facility is going to be an excellent conduit for Alaskan seafood and peonies and stuff that needs that cold storage option here. That will get us some higher-margin products that we can ship out of Anchorage— the example is taking a fish from the Bering Sea into Anchorage and then Anchorage to Asia, they could actually sell it fresh and not frozen because they will be able to keep it cool on that relatively short journey to Asia.” That connection between Alaska and Asia is fundamental in Anchorage’s plans to be a cargo hub, according to Szczesniak. “We sit in the exact perfect spot that gives us the ability to capture lots of Asian traffic and lots of North American traffic and connecting those markets,” he says. “As an example, we have pretty much daily flights from Halifax, Nova Scotia—747 flights just filled with lobsters going into Asian markets. There’s weird and cool stuff like that, but we at the airport are always trying to open new destinations to be able to get that cargo hub and spoke effect here. Vietnam was definitely a target of ours, and so we’ve seen an increase in that market.” Exactly what is arriving from Asia, Szczesniak can only guess. “It’s a little hard to discern exactly what is in all of the planes all of the time, but the one thing I will say we’ve noticed is an increase in our number of flights from Bangkok and Hanoi, and so we know that generally those are going to be garments that are coming through here,” he says. “All of your Christmas sweaters are probably on those airplanes.” 64 | December 2021
The next phases of the Port of Alaska modernization are scheduled to be well into design and permitting by summer 2022, and construction on the new docks and demolition of existing docks can resume the following year, with completion slated for 2024. Port of Alaska
Of roughly 3.3 million tons of freight shipped to Alaska annually, 1.7 million tons arrive at the Port of Alaska on TOTE Midnight Sun or Matson container ships. Port of Alaska
When modernization of the Port of Alaska is complete, a slightly shorter dock will be located about 400 yards south of the existing location and about 150 feet farther into Turnagain Arm. Port of Alaska
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E
OIL & GAS
Smaller Players in the Big Oil Game Little roles have major results in the oil fields By Alexandra Kay
veryone in Alaska knows the big players in the oil patch: ExxonMobil, ConocoPhillips, Hilcorp, and potentially soon (again) Shell. They are responsible for petroleum production that returned $3.1 billion in state and local taxes and royalties in fiscal year 2019. Counting those dollars spent from public coffers, in addition to the industry’s direct spending, the oil industry drives about half of Alaska’s overall economy, according to the Resource Development Council. The sector also accounts for one-quarter of Alaska’s jobs—but not by those major players alone. They have help. In the shadow of the giants, smaller operators with less familiar names carve out their pieces of the pie. They form a parallel industry: oil field support. These companies provide environmental services, management, engineering, contracting, and supplies. They would not be in Alaska without the major companies, yet the multinationals would not be able to function without their relatively Lilliputian assistants. Often locally owned, support companies draw on very specific expertise, allowing the big companies to focus on what they do best.
Chill Out “We manufacture passive refrigeration devices that are used to keep the ground frozen up north,” says Edward Yarmak, president and chief engineer of Arctic Foundations, Inc. (AFI). But isn’t the North Slope permanently frozen? Indeed, oil and gas wells are drilled through permafrost as much as a quartermile thick, but the action of drilling, and later the extraction of oil or gas, creates heat. “You can imagine that hot oil coming up through permafrost is something that’s going to thaw things out,” Yarmak says. Softened earth can collapse around wells or underneath pipelines or buildings. That’s where AFI comes in. AFI makes thermoprobes, which are two-phase thermosyphons that provide passive refrigeration to either create or maintain permafrost. These thermoprobes allow for the construction of heated structures on permafrost without the ground settling, 66 | December 2021
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and they also allow oil drilling without well collapse. The devices consist of a vertical pipe or tube that goes down some depth into the ground with a portion of the vessel above ground. The tube is filled with a working fluid; AFI usually uses carbon dioxide. When the outside is cold, the vapor condenses on the interior of the cooled part of the tube, releasing heat, which then causes the pressure on the inside of the vessel to drop, resulting in the liquid absorbing heat from the ground, boiling, and vaporizing. Condensate at the top flows down the tube, and whenever it runs into something warmer than it is, it starts to evaporate and causes that portion of the tube to cool. “As long as it’s cold outside, it will continue to cool the ground, and there are no pumps or motors. It’s passive,” Yarmak explains. “Generally we’re just moving heat up out of the ground.” Yarmak says the company has thermoprobes around many wells in Alaska. AFI also manufactures load bearing thermosyphons, called thermopiles, for the foundations of buildings constructed on permafrost.
The founder of the Anchorage-based company, Erv Long, invented the Long thermopile in 1956, and the devices have been used ever since for tundra homes, utility towers, and vertical support members of the Trans Alaska Pipeline System. AFI has also been involved in some active refrigeration projects at non-oil field sites, and Yarmak notes that active refrigeration might extend to oil fields in the future, as the climate warms.
Element of Supplies Building an oil field requires a lot of materials. Just building a road to reach a work site takes material, too—specialized material that must be sourced and transported long distances. One of the companies providing those materials is NorthStar Supply. The Palmer-based company supplies civil and industrial construction and maintenance materials, including geotextiles, temporary and permanent erosion control materials, asphalt maintenance products, drilling fluids, and dust and ice control products. “We support construction all around the state with an emphasis on a lot of
remote and village applications,” says co-owner Jason Carmichael. NorthStar Supply’s main customers are contractors building infrastructure for oil and gas companies. In other words, it supports the supporters. One of the company’s biggest selling items is its geotextile fabrics, used for separation and stabilization between road surfaces and the underlying ground. Mostly made of polypropylene, geotextiles make roads stronger and allow for structures to be built in certain areas where ground conditions might not be conducive to road building. Geotextiles are widely used in road construction. NorthStar Supply’s job is to deliver the material to the contractor. “We have a reliable freight network that allows us to get stuff anywhere we need to get it,” Carmichael says. The company also supplies maintenance materials for roads and roadbeds. Its products are meant to extend the life of asphalt and reduce costs overall in the harsh Alaska environment. The company offers commercial-grade products for parking lots, taxiways, roads, and more.
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“The biggest part of the logistics is going to be all of the support, like transporting people and materials and setting up all of the transport into Alaska [in some cases] and then from in state to the field.” Justin Shields President Valley General Energy Services
Another of the company’s products, Dust Blocker, is environmentally friendly, non-corrosive, and nontoxic. It is hygroscopic calcium chloride, so it attracts moisture from the air and then binds to solid particles, so they don’t go floating off into the air. “It provides huge benefit, especially in environmentally fragile areas or in areas that are susceptible to erosion,” says Carmichael. This helps protect valuable equipment at oil field sites, as well as the surrounding environment. NorthStar Supply also provides a variety of drilling fluids, which are circulated in the borehole to suspend cuttings, control pressure, provide buoyancy, stabilize exposed rock, cool, and lubricate. Without drilling fluids, oil and gas wells would be uneconomical, so a reliable supplier is essential to continued production.
Cool, Clear Water Oil field camps, even seasonal sites far from the Prudhoe Bay Operations Center, can be home to hundreds of workers. At that size, they dwarf many permanent
communities in Alaska as prominent as Whittier, Cantwell, or Kaktovik. Town-sized camps need town-sized utilities, and that’s a job for Arctic Fox Environmental. From its analytical testing laboratory and hazardous waste consulting office in Prudhoe Bay, the company takes care of clean water regulatory requirements for oil and gas companies. “There are drinking water systems and wastewater systems that have to be tested regularly,” says Michael Priebe, director of sales and marketing. “They bring those samples to us.” Some analyses are performed at the company’s Deadhorse lab; others are sub-contracted to laboratories in Anchorage or out of state. The company also provides emergency spill response services. “We have samplers in Prudhoe Bay that are available 365 days a year,” says Priebe. And the company’s lab is also operated twenty-four hours a day, seven days a week. Arctic Fox environmental scientists can accept, analyze, and collect samples in and around the Prudhoe Bay oil field area. They can also prepare and transport hazardous
SEWARD INTERMODAL GATEWAY DEVELOPMENT OPPORTUNITIES Dock Facilities • Freight Dock: Preferred for cargo • Passenger Dock: Cruise ships and
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• Mooring Dock: Short or long term berth for non-cargo vessels
Real Estate
Land available for lease within busy waterfront
Rail Transportation
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Photo by Luke Davis, courtesy of the Alaska Railroad
Visit AlaskaRailroad.com/real-estate for available properties For more information please contact: Christy Terry, Seward Port Manager 907.265.2209 or TerryC@akrr.com or Erin Ealum, Leasing Manager 907.265.2325 or EalumE@akrr.com Alaska Business www.akbizmag.com
waste. “We’re not regulators,” Priebe says. “We provide the service for it. We do hazardous waste characterization, and obviously there’s demand for that on the Slope.” Most days, the Arctic Fox lab is staffed by one person, flown in from Anchorage. This time of year, that’s lab manager Timothy Johnson. He says having water testing at Prudhoe Bay is an enormous benefit to the bottom line of major oil companies. “If we weren’t up here, they would be spending twice as much money, and it would take them three times longer to get things done.” Johnson takes pride in his company’s rapid turnaround for testing.
At Your Service To set up town-sized camps, the energy industry needs a variety of generalized services. Valley General Energy Services can help with that. The Wasilla-based company covers logistics planning, rig support, camp services, engineering, and quality control. For example, if an oil company needs an ice road to access a specific area for drilling, Valley General Energy can do
everything from the planning phases of that road through its construction phase and beyond. First, the company flies someone out in the summer to find the best A to B route for the road based on environmental dynamics. It will help the oil company pick the route, and it works on getting permits for the road. Valley General Energy will then create a construction design and put it out to bid, helping to choose the right contractor for the job. Once a contractor is chosen, Valley General Energy provides complete oversight and management of the project itself by embedding a staff member at the job site. And when the season is over, the company will perform the cleanup and a summer study to see if the project can run another year. If things are good with the summer study, the company will then plan another season of work. Valley General Energy also does rig support services, which involves a robust transport capability. Company president Justin Shields explains, “The biggest part of the logistics is going to be all of the support, like transporting
people and materials and setting up all of the transport into Alaska [in some cases] and then from in state to the field.” Part of the rig support provided by Valley General Energy also involves project management, which can include coordinating contracts for pipe, drilling products, and fuel. Shields says the company implements services with an eye toward schedule and budgeting that ensures success for clients. Valley General Energy specializes in providing its services to projects in remote areas of Alaska, and Shields is proud of his business. “Our team has over 100 years of experience combined, and we support projects all over the state.” Currently, Valley General Energy is working with Hilcorp and Pantheon, but the company has worked with BP, Doyon, and Arctic Slope Regional Corporation. Shields opened for business in early January of 2016, and he hopes to continue growing his company. “I have two sons I’m raising,” he says, “and I hope they’ll be able to grow up and work in the oil and gas industry.”
WHERE ENGINEERING MEETS THE ENVIRONMENT. Specializing in: • Bridges • Roads • Site Work • Environmental Cleanup
CATEGORY WINNER: General Contractors www.akbizmag.com
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T
TOURISM
Passenger Port Expansions
Improving tourist experience, easing local congestion
MRV Architects
By Vanessa Orr
wo years after the pandemic began, tourism is slowly beginning to get back on track. Major cruise lines scheduled 78 voyages with nine ships in 2021, a decrease from more than 500 voyages in 2019 but an improvement over 2020’s zero. Thanks to Congressional action allowing cruises to Alaska to bypass Canadian ports, bookings opened in June. In case passengers feel hesitant boarding a ship amid the simmering pandemic, ports of call are going out of their way to make them feel welcome. Juneau’s well-developed waterfront is hardly finished adding cruise ship amenities, and as cruises returned this summer, August saw new expansions in Ketchikan, Sitka, and Hoonah. The first cruise ship arrived at the new two-berth Mill at Ward Cove, which is located seven miles north of Ketchikan. Built on the site of the former Ketchikan Pulp Mill, which closed in 1997, construction is ongoing, as the project was slowed by the pandemic. The $50 million renovation, which includes a welcome center and passenger transport facility, is being developed by the Ward Cove Group, which partnered with Fairbanksbased tourism operator Godspeed, Inc. Norwegian Cruises Line also invested in the dock project in exchange for priority use of its berths. After Phase I, which includes refurbishing the Ketchikan Pulp Mill—featuring a re-creation of the Tongass National Forest inside—Phases II and III will include more retail, food, tourism, and entertainment opportunities.
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Sitka August saw completion of the first phase of the Sitka Sound Cruise Terminal Dock, which not only provides more tourist amenities but enables larger ships to dock at the berth. The dock's majority owner is Halibut Point Marine Services, a Sitka family-owned business, with financing support and minority ownership by Royal Caribbean Group and Ceres Terminals (a Nashvillebased port management firm). “Previously, we were able to dock one ship up to 980 feet—the old Panamax size—as well as one smaller ship up to 600 feet on a double-sided berth,” explains Chris McGraw, owner and manager of Sitka Sound Cruise Terminal. “We extended the pier so that we can now accommodate two of the neo-Panamax ships, which are approximately 1,150 feet, one on each side.” In conjunction with the dock extension, upland development included the expansion of passenger facilities. “We previously had an 8,000-square-foot passenger terminal where we would stage shuttles into downtown Sitka,” says McGraw. “We have since constructed 30,000 more square feet of space in multiple buildings, which includes retail space, food and beverage options, and tour and passenger staging areas.” These expanded berthing facilities will allow more passengers to come into Sitka, as well as larger ships. “In 2019, our passenger count was 200,000 guests, and we anticipate seeing 470,000 passengers next year—roughly 430,000 who will come through the new dock facility,” says McGraw. “These are passengers on vessels who were not previously able to dock here, for example, the Royal Caribbean’s Ovation of the Seas and Quantum of the Seas and the Norwegian Bliss. “With this increased guest capacity, it’s important that we provide things for guests to do once they’re in Sitka,” he adds. “Our previous facility was maxed out at 3,000 passengers a day, and now we’ll be able to accommodate 9,000 passengers per day. So we’ve designed this new area to ensure the smooth flow of guests getting on shuttles and going on tours, and we’ve expanded retail www.akbizmag.com
A rendering of one iteration of the Long Range Marina District Plan for the City and Borough of Juneau includes a new Norwegian Cruise Line dock that would be shared with the US Coast Guard, as well as a new dock for small craft. MRV Architects
and food and beverage offerings right here at the port.” Construction on the project began in 2019, and unlike most projects, it was not adversely affected by COVID-19. “It actually made it a little easier not having ships here last year; we didn’t have to work around guests,” says McGraw. “It did make construction more nerve-wracking from a development standpoint, however, especially since we had no clear picture of what the future would hold.” Phase II, still in the conceptual stage, will focus on additional uplands development, which may include onsite attractions such as an amphitheater for shows and demonstrations. Alaska Business
Adventure Sitka, which is owned by Halibut Point Marine Services and Latitude 49, which is affiliated with Alaska Coach Tours, is also working on the development of a 17-acre parcel adjacent to the dock facility, where they will offer tour products including shore excursions for cruise ship passengers. “We’re working with Shee Atika [Sitka’s urban Native corporation] to build structures for cultural tours, as well as building trails, an aerial adventure park, and a ropes challenge park,” says McGraw. “With 9,000 passengers coming into town in a day, we want to disperse them through the entire Sitka area so that everybody is not in one spot at one time.” December 2021 | 71
He adds that two new tour products will be added next season, followed by one or two the year after. The City and Borough of Sitka is also in the process of developing a short-term tourism master plan to facilitate the growth of the area from a traffic and congestion standpoint. “Our goal is to minimize the impact on local Sitkans, while providing a pleasurable visitor experience,” says McGraw.
Hoonah Also in August, a ribbon cutting was held to celebrate the opening of the Wilderness Landing pier at Icy Strait Point, which was built in partnership between Norwegian Cruise Line’s parent company Norwegian Cruise Line Holdings and Huna Totem Corporation. The pier is located about 2 miles from the Native community of Hoonah. Even though the community already had an impressive port— Icy Strait Point’s Adventure Landing was chosen as the 2020 Port of the Year in the Seatrade Cruise Awards— Wilderness Landing offers even more amenities to customers who travel on Norwegian cruises. Guests can travel on a new high-speed Transporter Gondola between the two ports through the surrounding rainforest or choose to walk the approximately 1-mile trail. The aerial tramway with thirty-three suspended cabins creates an entirely vehicle-free zone, eliminating the need for about 100 buses, with the capacity to transport up to 5,600 guests per hour. While at Adventure Landing, visitors can tour the now fully restored historic Hoonah Packing Company Cannery Village and enjoy traditional dining in the restored original cannery cookhouse. They can also watch Native dance and other performances at the new Heritage Center Theater, which showcases Tlingit history and culture. The gondola ride, which lasts about three minutes, is complimentary for those purchasing shore excursions, including rides on Icy Strait Point's Ziprider, the longest in the world at 5,330 feet with 1,330 feet of elevation. A second high-speed transport, the Mountain Top Gondola, which opened in October, takes passengers to the top of Hoonah Mountain, saving them a long bus ride to get to the Ziprider. 72 | December 2021
“Our investment in Icy Strait Point is providing our guests with more opportunities to experience and understand the natural and cultural beauty of the destination and its people,” says Harry Sommer, president and CEO of Norwegian Cruise Line. “Since Icy Strait Point’s inception, we’ve strived to balance the needs of our Alaska Native community with those of Alaska’s growing cruise industry and this development was a natural step for us,” adds Russell Dick, CEO of Huna Totem Corporation. “We are grateful to Norwegian for believing in our vision and we hope our sustainable model can lead the way for positive expansion of the cruise visitor industry in Alaska.”
The transporter gondola links the Wilderness Landing pier and the Adventure Landing pier at Icy Strait Point. Norwegian Cruise Line
Juneau Not to be left out, the City and Borough of Juneau (CBJ) is also looking at the idea of expanding its port area to take advantage of more tourism opportunities, though there is not a fixed timeline for construction. Norwegian has proposed building a new dock perpendicular to shore as well as a multistory building with bus parking underneath on a threeacre parcel of waterfront land in downtown Juneau. “The CBJ recently completed a study focusing on the community’s perception of tourism and growth and how that balances with quality of life, right before COVID clamped everything down,” says Paul Voelckers, president of MRV Architects. “They are now doing a specific tourism survey talking to Juneau residents online and through random phone calls to determine public perception on allowing a new dock.”
If the majority supports amending the city’s waterfront plan to allow a new dock, as expected, work would begin immediately to update the plan to present to the public and the assembly. “That in turn would set up an analysis of Norwegian’s application for the deep water lease they need to build the dock,” Voelckers explains. If the lease is supported, a “finergrained” look will be taken at proposed upland features, which include public park space, a sea walk, and other developments. The plan may also include the creation of an Ocean Center that would serve as a hybrid visitor center, museum, and educational facility. “Right now, the preliminary design places the [Alaska] Ocean Center on a premium corner of the site, taking up about 20 percent of the total Norwegian footprint,” says Voelckers. “The [nonprofit] center has been around as a hypothetical project for about five years now, and Norwegian thought it would make an irresistible waterfront destination, so they invited the 501(c)(3) to be part of the early design.” According to Voelckers, this section of Juneau’s waterfront has not been developed in the past thirty years because of the uncertainty of what would happen to the three-acre property that was owned by the Alaska Mental Health Trust Authority. “Nor wegian’s $20 million purchase of the Mental Health Trust property provided some fundamental clarity, and now there are a number of ideas of what can happen on either side of that site,” says Voelckers, whose firm is working with the city on sketches, including an extension of public park space or the sea walk. Nor wegian hopes to partner with the US Coast Guard, which owns the property immediately adjacent to their parcel, to build a dock that both the USCG and the cruise ship company could share. “While determining a budget is still a ways away, speaking in generalities, building a dock of this scale is a roughly $40 million-plus project,” says Voelckers, adding that the upland development would cost tens of millions of dollars as well. Even if everything goes as planned, Juneau would probably not see a
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finished dock for at least two years, though uplands development could proceed more quickly. “Docks require a lot of permitting and regulatory approval, and the studies alone take months,” says Voelckers. “A general rule of thumb is that it takes a year to get federal permits in place for working in a marine setting. So you’re looking at a year, at least, of permitting, design, and testing, and then a relatively short four- to six-month construction period.”
On the Horizon Though a major undertaking, an expansion of Juneau’s passenger port is expected to make a meaningful difference to the tourism industry in the capital city. “Even though Norwegian is a huge multinational, it was relatively late to the Alaska market, and there’s a hierarchy of access to the docks,” says Voelckers. “Currently, the company needs to hot berth, which means taking ships in and out the same day. They also dock furthest from downtown, which can create vehicular and pedestrian congestion and result in logistical delays. “What both the public and the tourism industry like about Norwegian’s proposal is that the area they want to develop is in the least impacted part of town with the best road infrastructure already there,” he adds. “This would make it much easier to handle the necessary infrastructure and tourism burden that comes with passengers taking tours. People would arrive at their destinations faster, it would be a smoother operation, and locals would get less jammed up from the impact on the downtown core. It would be a substantial improvement.” He adds that, like any tourism project, building a new port is all about striking the correct balance. “Juneau’s economy is heavily dependent on tourism, but at the same time, its residents are focused on the quality of life and the enjoyment of living in such a remarkably beautiful place,” he says. “It’s a critical balancing act, finding that sweet spot of accommodating tourism without diluting the local experience.” www.akbizmag.com
Norwegian Encore is the first ship in the industry to berth at the new Wilderness Landing pier at Icy Strait Point. Norwegian Cruise Line
Norwegian Cruise Line President and CEO Harry Sommer and Huna Totem Corporation CEO Russell Dick at the ribbon cutting ceremony of the new Wilderness Landing Pier. Norwegian Cruise Line
Sitka anticipates the arrival of 470,000 passengers next year, up from 200,000 in 2019. These are guests on vessels that were not previously able to dock at the cruise ship terminal, for example, the Norwegian Bliss and Royal Caribbean’s Ovation of the Seas and Quantum of the Seas. Sitka Sound Cruise Terminal
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December 2021 | 73
INSIDE ALASKA BUSINESS Hilcorp
Alaska USA
Now that Hilcorp has taken BP’s place in Alaska, the Texas-based company is absorbing ExxonMobil’s operations at the Point Thomson natural gas field. ExxonMobil will continue to own 62 percent of the North Slope field, which started producing gas liquids in 2016, but Hilcorp will become the operator, pending regulatory approval in early 2022. Hilcorp owns 37 percent of Point Thomson as part of the $5.6 billion purchase of BP’s Alaska assets in 2020. An ExxonMobil spokesman says thirty-eight of the company’s employees will either be reassigned outside Alaska or interview for new jobs with Hilcorp. hilcorp.com
Alaska USA Federal Credit Union is seeking federal regulatory approval to merge with Washington-based Global Credit Union. The combination of the Anchorage-based financial institution, with 700,000 members in Alaska, Washington, California, and Arizona, and the 45,000 members of Global Credit Union in Washington, Idaho, and military bases in Italy, would create one of the fifteen largest credit unions in the country, with more than $11 billion in assets. alaskausa.org
AGDC Slow down global warming by sending North Slope natural gas overseas: that’s the sales pitch from the Alaska Gasline Development Corporation (AGDC), based on a new report. The state-backed firm hired experts from EXP, SLR Consulting, and Ashworth Leininger Group, who conclude that Chinese power plants could cut carbon dioxide emissions in half by importing liquified natural gas instead of burning local coal. The study also found that the proposed 807-mile gasline from Prudhoe Bay to Nikiski would have less environmental impact than rival LNG projects on the US Gulf Coast and Australia. AGDC is seeking long-term customers to finance construction of the estimated $40 billion gasline. agdc.us
ANTHC Alaska Native Tribal Health Consortium is looking for a new CEO. Garvin Federenko resigned as CEO in October to “pursue new business opportunities,” Alaska’s News Source reports. Federenko began working for the state’s largest tribal health organization in 1998. He became chief financial officer in 2020 and was elevated to CEO earlier this year. He was also briefly acting president, after the resignation in February of Andy Teuber, who later disappeared in a helicopter crash. Former lieutenant governor Valerie Nurr’araaluk Davidson has since been named consortium president. anthc.org
Bartlett Regional Hospital A hired gun is taking over as CEO of Juneau’s city-owned hospital. The board of Bartlett Regional Hospital named Jerel Humphrey as interim chief executive, a job he does across the country, most recently in Pennsylvania. Humphrey
replaces Kathy Callahan, who had been chief nursing officer and came out of retirement in September after the previous CEO, Rose Lawhorne, abruptly resigned. bartletthospital.org
Chugach Electric Idled office space in downtown Anchorage, Midtown, and the UMed areas led to decreased power sales for Chugach Electric Association, according to a filing with the Regulatory Commission of Alaska. Chugach reports a $16.2 million annual loss from its North District, formerly served by Municipal Light & Power (ML&P), compared to $400,000 in reduced sales from the Southern District, which is mostly residential. Chugach is asking regulators to adjust the terms of its billion-dollar purchase of ML&P to keep a promise not to raise electricity rates. chugachelectric.com
Alaska Chip Company Some of the country’s best barbecueflavored potato chips are made in the middle of Anchorage. Out of thirty regional brands sampled by food critic Kevin Pang for America’s Test Kitchen, Alaska Chip Company’s Grizzly Chip ranked among the six winners. Since that announcement, company owner Ralph Carney says he’s been seeing interest from outof-state distributors. Grizzly Chip was the flagship product when Alaska Chip Company started turning locally grown potatoes into crispy snacks in 2003. akchip.com
ECONOMIC INDIC ATOR S ANS Crude Oil Production 471,710 barrels 3% change from previous month
ANS West Coast Crude Oil Prices $85.63 per barrel 9% change from previous month
Statewide Employment 349,200 Labor Force 6.3% Unemployment
10/28/21 Source: Alaska Department of Natural Resources
10/29/21 Source: Alaska Department of Natural Resources
9/1/21.. Adjusted seasonally. Source: US Bureau of Labor Statistics
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RIGHT MOVES Alaska Business This very magazine is beefing up its bullpen with a few new hires. James Barnhill comes aboard as Full-Charge Bookkeeper, responsible for accounts receivable, accounts payable, and payroll. Originally Barnhill from the Yukon River village of Galena, Barnhill is an eleven-year veteran of the US Marine Corps. His experience with military training was handy in his previous position just outside of Camp Pendleton: for four years, he was principal of West Coast Baptist School, a private K-12 school with thirty students in Oceanside, California. Down the coast in La Jolla, he attended National University and earned a bachelor’s degree in accounting. Barnhill enjoys carpentry and hockey. Fulvia Lowe is the new Graphic Design and Production Manager, responsible for crafting ads and marketing materials. Lowe Originally from Lombardy, Italy, her family emigrated to the United States in 1985. Since then, she’s traveled the world, including a road trip from Alaska to the south end of Patagonia, Argentina. Lowe earned a degree in public policy from Montana Tech before switching to graphic design. “My zest for life shows in my personality along with being a creative visionary with the spark to keep things imaginative and artistic,” she says. Scott Rhode recently joined the team as Editor and Staff Writer, where he helps take pressure off the managing editor, polishes articles submitted by freelance authors, and compiles the flashiest feature in Alaska Business: Right Moves! Monthly deadlines
are a change from the hourly grind of News Radio 650 KENI, where listeners heard his voice from 1996 until 2020. Rhode grew up in Eagle River Rhode and earned a Bachelor of Liberal Studies degree from UAA. He can sometimes be seen on stage in community theater productions.
AKPM Tune in to the new Host of Hometown, Alaska on Alaska Public Media (AKPM). Justin Ezell Williams joins the rotation with current hosts Kathleen Williams McCoy and Dr. E.J.R. David. Williams is best known for his social media brand Justin’s Alaska Eats, which explores the economic and anthropological aspects of local foods. Williams was born and raised in Anchorage and studied art and sociology at UAA. AKPM Chief Content Officer Linda Wei says Williams’ background and interests “will reveal engaging and illuminating conversations.” Hometown, Alaska airs Mondays at 10 a.m., repeating at 8 p.m., on KSKA 91.1.
NANA Former state legislator John Aġnaqłuk Lincoln is the choice of NANA Regional Corporation’s board of directors to take over as Lincoln President and CEO. Lincoln replaces Chief Operating Officer Bill Monet, who had led the corporation on an interim basis. Lincoln has worked a combined eighteen years for NANA and the regional nonprofit Maniilaq Association,
most recently as NANA’s vice president for external affairs. In 2018, Lincoln was appointed to fill a vacancy in the state House of Representatives and served until his term expired earlier this year. Lincoln graduated from Kotzebue High School as class valedictorian and earned a bachelor’s degree in management science and public policy from Stanford University. Lincoln was named a Top Forty Under 40 leader by the Alaska Journal of Commerce for 2021.
SCF The interim President and CEO of Southcentral Foundation (SCF) can keep the position for the long term. The board of directors Kyle decided to stick with April Kyle, who has led SCF since August 2020, previously serving as vice president of the behavioral services division. A shareholder of Cook Inlet Region Incorporated (CIRI), Kyle began working for CIRI’s healthcare nonprofit two decades ago. She received a master’s degree in business administration from the University of Washington.
UAA The new Executive Director of Alaska Native Education and Outreach at UAA is Michele Yatchmeneff, the current assistant director of the university’s Alaska Native Yatchmeneff Science & Engineering Program (ANSEP). Yatchmeneff, an Unangax̌ who grew up in the Aleutian Islands, was an ANSEP student herself before earning her bachelor’s in civil engineering, master’s in engineering
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management, and doctorate in engineering education. “I found that, in addition to academic college readiness, ANSEP provides a sense of community and emotional support that prepares students for higher education,” she says. In this new role, Yatchmeneff will work across the entire UA A community.
Katmai Conservancy Katmai Conservancy hired Guy Runco as its first Executive Director. The conservancy is the official nonprofit partner of Katmai Runco National Park and Preserve, which fits with Runco’s experience in the nonprofit sector, specifically in wildlife conservation, fundraising, and outreach. Most recently, he served as executive director of the Bird Treatment and Learning Center in Anchorage.
USACE The US Army Corps of Engineers–Alaska District tapped Tracy Wickham as Chief of its contracting division. He Wickham takes responsibility for the Corps’ contracting mission in Alaska. In a typical year, this workload involves about $400 million in new contract awards; $1 billion in ongoing construction, engineering, and service contracts; and another $1 billion in planning. Prior to his arrival in Alaska, Wickham served as chief of the contracting division for the Portland District since 2015. Wickham earned a bachelor’s degree from the University of Northern Iowa and holds an MBA from Babson College in Massachusetts.
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R&M Marta Kumle recently joined R&M Consultants as a Senior Hydrographer, expanding the firm’s services to hydrographic surveys, previously possible Kumle only by teaming with consultants. Kumle has a bachelor’s degree in Oceanography and a masters of GIS and sustainability management, both from the University of Washington. Kumle worked at the Alaska Ocean Observing System, surveyed for underwater pipelines and cables, and has Antarctic experience as a marine technician aboard the research vessels Laurence M. Gould and Nathaniel B. Palmer. Kumle also volunteers as a ski patroller at Arctic Valley.
Launch Alaska Launch Alaska welcomes Penny Gage as Managing Director to head up its Tech Deployment Track program, helping companies worldwide Gage deploy energy, transportation, water, and food technologies in the Last Frontier. Gage, whose Tlingit name is X´waséeya, is a member of the Sitka Tribe. She has a bachelor’s degree from UAF and a master’s in foreign service from Georgetown University. Gage is on the board of the Anchorage Museum and was recognized by the Alaska Journal of Commerce in 2019 as one of the Top Forty Under 40.
Tlingit and Haida The Central Council of the Tlingit and Haida Indian Tribes of Alaska hired Heidi Davis as Staff Attorney for the Office of the President. Davis provides legal counsel and representation to Tlingit & Haida in the areas of contracts, employment, federaltribal relations, federal-state relations,
Alaska Business
and tribal jurisdiction. Davis graduated from the University of Arkansas at Little Rock with a bachelor’s degree in criminal justice and political Davis science, then went to UALR School of Law for her juris doctor degree. Originally from the Raven Coho clan in Kake, Davis was raised in Sitka and Juneau. She enjoys exploring tide pools and going on hikes in Juneau.
AOGA The Alaska Oil & Gas Association (AOGA) named Dawn L. Crater as its new Regulatory and Legal Affairs Manager. Crater comes to the industry group from the state government, where she Crater worked in the Department of Natural Resources as Director of Appeals and Policy Implementation. At AOGA, Crater will evaluate government actions and coordinate the association’s response to them. Crater has a bachelor’s degree in Earth science from UC-Berkeley and a JD from Golden Gate University School of Law.
PGS Professional Growth Systems (PGS) is adding another Business Consultant to their roster. Erin Bellotte brings experience in manufacturing Bellotte operations, process improvement, organizational strategy, and employee development to her new position on the Kenai Peninsula. Bellotte earned a bachelor’s degree in business administration from Valparaiso University and her MBA at Indiana State University. She met her husband, an Alaskan, while managing scholarships and fellowships at the University of North Texas.
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ALASKA TRENDS An art director who might, say, design a data graphic for a monthly magazine can expect an average salary of $63,030 in Alaska. According to the US Bureau of Labor Statistics (BLS), that’s considerably lower than art directors earn in the Lower 48, mostly in the advertising and movie industries. [Art Director’s note-to-self: check life choices.] An editor who prepares text for publication has a mean annual wage of $53,290, according to BLS. That’s also a bit lower than the same job pays outside of Alaska, [Editor’s note: Sterchi-Lowman, check my life choices, too.] but a bit more than the average emergency medical technician, who earns more in Alaska than elsewhere. The Alaska Department of Labor & Workforce Development (DOL&WD) counts twenty-six art directors, about the same as the number of audiologists, and eighty-one editors, nearly equal to the number of chiropractors. However, DOL&WD projects that the number of editors will shrink to about seventy by the end of this decade. Let’s blame a declining appreciation for excellent writing. Or computer spellcheckers. Whatever. The entire BLS category of “Arts, Design, Entertainment, Sports, and Media Occupations” totals 2,800 in Alaska, counting every journalist, photographer, disc jockey, professional coach, and floral designer. That’s far less than the single occupation of home health aide. As the boom of babies from the mid-20th century becomes a bulge of senior citizens by the middle of the 21st, healthcare occupations can only gain importance. In this edition of Alaska Trends, we take the pulse of healthcare employment and wages. SOURCE: How health care wages in Alaska rank , Alaska Economic Trends, December 2018 US Bureau of Larbor Statistics https://www.bls.gov/oes/current/oes_ak.htm#29-0000
How Many MDs? BLS counts 30 Pediatricians, 40 Psychiatrists, 80 Surgeons, 90 General Internal Physicians, 420 Family Physicians, and 660 Other Physicians, for a total of 1,320.
Nurses Dominate Bring Home the Bacon Alaska is the highest paying state for healthcare, followed by Hawaii and California. Here are the highest and lowest paying states. Alaska $98,020 Hawaii $96,670 California $96,130 Mass. $95,660 US AVERAGE $80,760 Kansas $69,170 W. Va $68,280 Arkansas $66,450 Louisiana $64,850 Miss. $64,620 78 | December 2021
Alaska has 6,240 Registered Nurses alone, plus 770 Nurse Practitioners, 330 Licensed Practical and Vocational Nurses, and 50 Nurse Midwives.
Against the Trend While average healthcare wages for most fields in Alaska are higher than the national rate, four fields earn less.
Health Diagnosing/Treating Practitioners Occupational Therapists Athletic Trainers Nurse Midwives
Alaska Average
National Average
$76,630 $82,810 $46,240 $83,580
$84,210 $84,640 $48,630 $103,640
Kids Cost The healthcare occupations with the highest average wages in Alaska are OB/GYNs and Pediatricians. Alaska Business www.akbizmag.com
20,000
60,000
40,000
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Double Your Money
Dental hygienists are paid more in Alaska than anywhere, more than double the average in Alabama. Alaskan optometrists are the highest paid in the nation, nearly double those in Washington, D.C.
Alaska Business Obstetricians & Gynecologists
Psychiatrists
Physicians & Surgeons, All Other
Family & General Practitioners
Internists, General
Pediatricians, General
Dentists, General
Nurse Anesthetists
Pharmacists
Optometrists
Nurse Practitioners
Physician Assistants
Nurse Midwives
Physical Therapists
Radiation Therapists
Occupational Therapists
Health Diagnosing/Treating Pracitioners, All Other
Chiropractors
Speech-Language Pathologists
Dental Hygienists
Occupational Health & Safety Specialists
Registered Nurses
Diagnostic Medical Sonographers
Magnetic Resonance Imaging Technologists
Respiratory Therapists
Health Care Practitioners & Tech Workers, All Other
Radiologic Techs
Dietitians & Nutritionists
Therapists, All Other
Cardiovascular Technologists & Techs
Hearing Aid Specialists
Occupational Heath & Safety Techs
Surgical Technologists
Athletic Trainers
Clinical Laboratory Technologists & Techs
Health Technologists & Techs, All Other
Licensed Practical & Vocational Nurses
Medical Records & Health Information Technicians
180,000
Opticians, Dispensing
Ophthalmic Medical Techs
220,000
EMTs & Paramedics
240,000
Psychiatric Techs
Pharmacy Techs
Dietetic Techs
280,000
260,000
Cha-Ching
Health care practitioners and technicians in Alaska make an average of $98,020 a year, making Alaska the highest-paying state for these jobs overall.
200,000
HIGHEST PAYING STATE
LOWEST PAYING STATE
AVERAGE ALASKA WAGE
160,000
140,000
120,000
100,000
80,000
Annual Mean Wages
Occupations with the highest average wages are dominated by healthcare, taking up the first five spots on the list of top-paying jobs in Alaska, according to the US Bureau of Labor Statistics.
General Internal Medicine Physicians $282,730 All other Physicians $266,200 Family Medicine Physicians $264,010 Pediatricians $263,390 Dentists $242,850 Airline Pilots $180,100 CEOs $166,360 Psychiatrists $166,180 Judges $153,880 Physician Assistants $150,430 Petroleum Engineers $150,390
December 2021 | 79
AT A GLANCE What book is currently on your nightstand? I’ve been writing these law review articles every couple of years, so my latest one I’ve been working on is an article about proxy challenges in ANCSA corporate elections. So I’ve been doing an awful lot of reading, but it’s not books. It’s cases and other legal material to try to get that done. What charity or cause are you passionate about? Akeela, which does substance abuse treatment and prevention. Just hearing the stories of our clients… has kept me on that board for twenty-one years now. What’s the first thing you do when you get home after a long day at work? [He laughs] Well, usually my stop is not first at home, it’s usually at the hockey rink. My kids play hockey, and I do help coach with U8 [kids under age 8]. What vacation spot is on your bucket list?
Image © Kerry Tasker
There’s one thing I really would like to do at some point, and that’s go to Argentina and hunt doves… There’s millions of these birds, and you do a lot of shooting down there, so it’s right up my alley. If you could domesticate a wild animal, what animal would it be? I’d love to have a big mountain lion. That would be an ideal pet to go hunting with. Like, you’re in the woods and you have a real nice camp dog; you can’t beat a mountain lion, can you? [he laughs] 80 | December 2021
Alaska Business www.akbizmag.com
OFF THE CUFF
Aaron Schutt O
ne way or another, Aaron Schutt would’ve been flying across Alaska, from village to
village. He didn’t follow one childhood dream to become a bush pilot, but he still gets around (or did, before COVID-19) as President and CEO of Doyon, Limited. He considers the best part of his job to be visiting the Interior hometowns of the regional Native corporation’s 20,000 shareholders and understanding their current needs and their histories. “Wherever they live now,” he says, “they’re from somewhere.” Schutt, a Koyukon Athabascan enrolled in the Native Village of Tanana, grew up in Tok, graduating high school with just eighteen classmates. He earned a master’s degree in civil engineering and then pivoted to Stanford Law School, becoming a lawyer like his twin brother
do worse than when I’m not. So I really struggle with that one. Should I watch or should I not? AB: Have you ever had a supernatural experience? Schutt: People see sasquatch and all this stuff out in the woods, and I’ve spent an awful lot of time in the woods… I’ve never seen anything! So I’m waiting for it to happen. AB: Dead or alive, who would you like to see perform live in concert? Schutt: We went to the Eagles a couple years ago [in Las Vegas]… wouldn’t mind going back. AB: What’s your greatest extravagance? Schutt: Once in a while, I pay way too much to watch an NHL game somewhere. AB: What’s your best attribute and worst attribute? Schutt: My worst is I’m a procrastinator. Like, serious procrastinator. Maybe that’s the best, too. Makes me efficient. Last minute.
Ethan (himself an executive vice president at Bristol Bay Native Corporation and a Permanent Fund trustee). AB: What is your favorite way to exercise? Schutt: Gotta be late-night, beer league hockey. AB: What’s the most daring thing you’ve ever done? Schutt: [he laughs] I’ve bungee jumped, I’ve skydived, I’ve done all the… people think they’re crazy, but it doesn’t seem to bother me too much. AB: What’s your favorite local restaurant? Schutt: Taco King. [he laughs] I mean, there’s the fancy restaurants, and we’ve got some really good ones… but my local lunch spot is the Taco King on Huffman. I’m happy every day I eat there. AB: Is there anything you’re superstitious about? Schutt: All kinds of things! [he laughs] Half the time when I’m watching my team, whatever sport it is on TV, I feel like they www.akbizmag.com
Alaska Business
December 2021 | 81
ADVERTISERS INDEX 3-Tier Alaska Civil Engineering & Surveying............................................... 23 3tieralaska.com Airport Equipment Rentals....................... 83 airpor tequipmentrentals.com Alaska Communications Systems.............. 3 acsalaska.com Alaska Mergers & Acquisitions, LLC......... 24 fink@alaska.net Alaska Pacific University............................11 alaskapacific.edu Alaska Railroad Real Estate Division.......................................... 68 alaskarailroad.com
Color Art Printing, Inc............................... 12 colorar tprinting.com
Nenana Heating Services, Inc.................. 19 nenanaheatingservicesinc.com
ConocoPhillips......................................... 67 alaska.conocophillips.com
New Horizons Telecom, Inc..................... 25 nhtiusa.com
Conrad-Houston Insurance Agency....... 12 chialaska.com
North Star Behavioral Health System........................................... 37 nor thstarbehavioral.com
Construction Machinery Industrial............ 2 cmiak.com Cook Inlet Tug & Barge Inc...................... 61 cookinlet tug.com Deeptree Inc............................................. 41 deep-tree.com First National Bank Alaska.......................... 5 fnbalaska.com
Alaska State Hospital & Nursing Home Association (ASHNHA).............................. 43 ashnha.com
Great Originals Inc................................... 19 greatoriginals.com
Altman, Rogers & Co................................ 24 altrogco.com
HC Contractors........................................ 58 hccontractors.net
American Heart Association.................... 35 hear t.org/Alaska
JAG Alaska................................................ 63 jagalaska.com
AT&T.......................................................... 15 at t.com
Jim Meinel, CPA, P.C................................ 45 meinelcpa.com
Avis Rent-A-Car........................................ 59 avisalaska.com
Lifemed Alaska.......................................... 49 lifemedalaska.com
Beacon Occupational Health & Safety Services..................................................... 51 beaconohss.com
Lynden...................................................... 84 lynden.com
Carlile Transportation Systems................ 65 carlile.biz Central Environmental Inc....................... 17 cei-alaska.com Chugach Alaska Corporation................... 36 chugach.com
Northern Air Cargo.............................. 76,77 nac.aero Northrim Bank.......................................... 33 nor thrim.com Pacific Dataport........................................ 31 pacificdatapor t.com/oneweb Pacific Pile & Marine................................. 75 pacificpile.com Parker Smith & Feek.....................................7 psfinc.com Providence Health & Services Alaska....... 39 providence.org RESPEC (formerly PDC Eng)..................... 45 respec.com Span Alaska Transportation LLC............... 62 spanalaska.com T. Rowe Price............................................ 53 alaska529plan.com Tutka, LLC................................................. 69 tutkallc.com
Material Flow & Conveyor Systems, Inc.............................................. 57 materialflow.com
United Way of Anchorage.......................... 9 liveunitedanc.org
Medical Park Family Care, Inc.................. 46 mpfcak.com
USI Insurance Services............................. 13 usi.com
MTA - Matanuska Telephone Association............................................... 21 mtasolutions.com
Wilson Albers............................................ 29 wilsonalbers.com
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