Crain's Cleveland Business

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$2.00/JANUARY 20 - 26, 2014

Campus connection District featuring St. Vincent, Tri-C and CSU is joining with stakeholders for 24/7 community

ROOM TO GROW Planners looking at the Campus District (shaded) see a 24/7 mixed residential and commercial community connected to downtown and the lakefront. Below are five areas that have large growth potential.

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See CAMPUS Page 6

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New look for Scene The Euclid Media Group, led by Andrew Zelman, 30, is now calling the shots for the Cleveland alternative weekly and three similar publications.

PAGE 3

UH is fast becoming ‘regional player’

By JAY MILLER jmiller@crain.com

It’s downtown, but it’s not the downtown of high-rise office buildings and white-tablecloth restaurants.

The 500-plus acres east of Cleveland’s central business district has been seen as a sea of low-rise office and warehouse buildings punctuated by a few island campuses — Cleveland State University, Cuyahoga Community College and St. Vincent Charity Hospital.

Now, though, those big institutions, which have made significant investments in their campuses in the last few years and by their nature provide long-term stability to their neighborhood, are joining with some smaller stakeholders to plan for a future as a 24/7 residential and commercial community connected to downtown and the lakefront.

The advocates of this area, called the Campus District, believe they can expand the definition of downtown Cleveland by building upon the continuing investment by CSU, Tri-C and St. Vincent. One key to that strategy is residential development, which has gotten a boost from Cleveland State’s plan to build housing and attract residential students.

One thing that makes the Campus District attractive for residential construction is the inventory of property available for development or redevelopment. Campus District Inc., or CDI, a nonprofit community development organization, has identified more than two dozen sites in the district that have development potential. Among those properties are the former juvenile court complex on East 22nd Street and the Third District police station on Payne Avenue.

According to a 2011 transportation study, the Campus District has 19,000 full-time employees, 26,000 students and a total of 100,000 people working, living in or traveling through the district daily — hence, the potential for residential growth.

INSIDE

Superior Arts Quarter

Developers are beginning to turn former factories into housing alongside a growing number of restaurants and art galleries.

Construction is underway on a former clothing factory at 2320 Superior Ave.

Second-largest health care provider in NE Ohio is seizing its chances to bulk up

By TIMOTHY MAGAW tmagaw@crain.com

2

Old Third District Police Station

Cleveland police will vacate this building next year. It’s seen as the future home for a neighborhood school.

3

Cleveland State University

The university broke ground in December for the $45 million Center for Innovation in Health Professions on Euclid Avenue.

REBECCA R. MARKOVITZ

4

Former juvenile justice center

The now-vacant court and detention center, put up for sale by Cuyahoga County, is considered ripe for redevelopment.

5

Cuyahoga Community College

The college has opened the new Advanced Technology Training Center and completed a renovation of its wellness and recreation center.

PHOTOS BY STAN BULLARD (1), JAY MILLER (2, 4) AND MCKINLEY WILEY (3, 5)

University Hospitals sits comfortably as Northeast Ohio’s secondlargest health care provider, but that status hasn’t stopped it from seizing on opportunities in recent months to add more heft to the enterprise.

And UH likely isn’t finished bulking up on the road to expanding its regional footprint, local health care observers say.

UH last month added two struggling hospitals to its portfolio — and $1 billion in annual operating revenue — and last week announced plans to take over another, Robinson Memorial in Portage County. All told, UH now boasts a network of 14 hospitals, including its relationship with Southwest General in Middleburg Heights and part-ownership of St. John Medical Center in Westlake, and about $3.3 billion in annual operating revenue.

While the health system’s actions of late, including last month’s integration of Parma Community General and EMH Healthcare in Elyria, are aggressive, UH officials say they’ve only acted swiftly on merger opportunities that bubbled up.

See UH Page 18

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NEWSPAPER

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SPECIAL SECTION

WHO TO WATCH We take a look at those who are making a difference in local health care ■ Pages 13-16 PLUS: Q&A WITH AREA LEADERS

Entire contents © 2014

by Crain Communications Inc. Vol. 35, No. 3

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CRAIN’S CLEVELAND BUSINESS

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ON THE UP AND UP

COMING NEXT WEEK

There were 89,735 new-business filings in Ohio in 2013, the fourth consecutive year in which such filings increased, according to data from Ohio Secretary of State Jon Husted’s office. From 2009 to 2013, filings are up 18.7%. Despite the overall record number of filings for last year, December 2013 had 6,941 new entities file to do business, slightly less than the 6,967 filings from December 2012. Here’s data on the state’s new-business filings for the last five years:

Positive interaction Crain’s Social Media Stars will take a look at 12 businesses and organizations that effectively are using online platforms in unique and effective ways. Find out how they have used social media, and why it has worked.

Year

REGULAR FEATURES Classified ....................18 Editorial ........................8 From the Publisher ........8 Going Places ...............12

JANUARY 20 - 26, 2014

Milestone ...................19 Reporters’ Notebook....19 Talk on the Web .............8 The Week ....................19

Number of filings

Change from previous year

2013

89,735

+1.9%

2012

88,068

+6.6%

2011

82,601

+2.9%

2010

80,273

+6.2%

2009

75,584

NA

■ Source: OhioSecretaryofState.gov

NOMINATIONS NOW OPEN

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CRAIN’S CLEVELAND BUSINESS

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3

INSIGHT

Commercial real estate regains footing Annual survey shows 2013 was a solid year for sales, but total was well short of ’07

By STAN BULLARD sbullard@crain.com

For Alec Pacella, managing partner of the NAI Daus real estate brokerage in Beachwood, the question for some time has been, “Are we

there yet?”

No, the questioners are not his kids in his car. The people asking are commercial real estate owners, lenders and brokers who run into Mr. Pacella, who produces an annual survey of Northeast Ohio

commercial real estate sales. His answer after finishing his report on 2013 transactions: “I think we are back to normal.”

Or, he adds, as normal as real estate may get after a watershed event such as the 2008 financial

crisis.

The volume of commercial sales increased 11% to $790 million in 2013 from almost $712 million in 2012.

Last year was the fourth consecutive year of rising sales since the

INSIDE: Northeast Ohio office market also “performed very well” in 2013.

Page 4 bottom dropped out of the market in 2009, when Mr. Pacella reported $190 million in sales of commercial and industrial properties not owned by their occupants.

See REAL ESTATE Page 4

HR pros weigh in on quick ax for Coach Chud Firing after just one season may have been best course, but aura of instability lingers

By KEVIN KLEPS kkleps@crain.com

Did Jimmy Haslam and his management team pull the trigger too soon in firing Rob Chudzinski as head coach of the Cleveland Browns after just one year on the job?

No one can know for certain, acHaslam cording to local human resource experts. However, just as in business, the cost of terminating a coach’s contract one year into his tenure can be less of a price to pay than to hold on to a leader in which the organization has lost faith — though it also risks missing out on an emerging talent.

Greg Reynolds, director of client development for Cleveland human reChudzinski sources consulting firm Dise & Co., said the two most costly mistakes an owner can make is a bad hiring decision and waiting too long to dump a leader who isn’t working out.

“Jim Haslam was caught in the middle of those two dynamics,” Mr. Reynolds said of the Browns owner.

See BROWNS Page 10

JANET CENTURY

Euclid Media Group, under the direction of Andrew Zelman, 30, owns Scene and three other alternative publications.

NEW VOICE IS ON SCENE

CHANGES IN COMMAND

Former sales, marketing exec ushers in a different era at alt-weekly

A look at the Browns’ history of head coaches since they returned in 1999 (x-interim coach):

By JAY MILLER jmiller@crain.com

Season(s) 2013 2011-12 2009-10 2005-08 2004 2001-04 1999-00

ndrew Zelman calls himself a news junkie. Now he’s out to prove he can be a seller as well as a user.

As president of the new, familyowned Euclid Media Group, Mr. Zelman will be running Scene, the Cleveland alternative weekly and website,

Coach Rob Chudzinski Pat Shurmur Eric Mangini Romeo Crennel x-Terry Robiskie Butch Davis Chris Palmer

W-L 4-12 9-23 10-22 24-40 1-5 24-34 5-27

Pct. .333 .281 .313 .375 .167 .414 .156

A

and three other similar alternative publications in Detroit, Orlando, Fla., and San Antonio, Texas. He’s leading a management group that includes Chris Keating, publisher of Scene, and Michael Wagner, publisher of the San Antonio Current.

Though he has no media background, the Beachwood native believes he can make his mark in alternative media, which are distributed

free and traditionally have relied on advertising — especially classified advertising — for revenue.

Until recently, the 30-year-old Mr. Zelman was a sales and marketing executive at Royal Chemical Co., a Twinsburg contract chemical blender and maker of cleaning products owned by his family and led by his father, Daniel Zelman.

See SCENE Page 11

THE WEEK IN QUOTES “When you look at the Cleveland neighborhoods that are having any type of success reinventing themselves, they are those neighborhoods that include a number of key stakeholders that can help push redevelopment. The Campus District is not short on those types of stakeholders.”

— Damon Taseff, a board member of Campus District Inc. and a principal with Allegro Realty Advisors. Page One

“We have challenges ahead of us, no question about it.”

— Richard A. Barone, chairman, Mace Security International Inc. Page 9

“That just touched me to no end. The policy I helped create helped save someone’s life.”

— Tamiyka Rose, manager of state government relations, The MetroHealth System.

Page 13

“I don’t want to ever be in a meeting with a family and say, ‘I don’t have any options to cure your cancer.’ That is the worst conversation you can have.”

— Dr. Robin Norris, director, Pediatric Developmental Therapeutics Program, UH Rainbow Babies & Children’s Hospital.

Page 16

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CRAIN’S CLEVELAND BUSINESS

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Office market has big 2013

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The downtown Cleveland office market dodged a bullet in 2013, as the opening of Ernst & Young Tower — the first multitenant office building constructed downtown in 20 years — and the departure of Eaton Corp.’s headquarters to Beachwood did not boost vacancy as some observers feared.

CBRE Group’s recently completed survey of Northeast Ohio’s office market shows downtown vacancy slipped to 18.2% at the end of 2013 from 18.4% a year earlier, thanks to factors that included removing the empty, hulking former home of Huntington Bank from the calculation of 2013’s vacancy rate. “The market performed very well in 2013,� said Doug Leary, a CBRE senior vice president. “This time last year, we were holding our breath about it.�

CBRE didn’t include the building at 925 Euclid Ave., once home to Huntington’s Northeast Ohio operations, in its calculations because the affiliate of Miami-based Optima International that owns the 1 million-square-foot property took it off the market. Optima has not said what it intends to do with the building, although real estate observers expect it to be repositioned as a mixed-use property with some of its office space giving way to apart-

ments or a hotel.

David Browning, managing director of CBRE’s Cleveland office, said the broker did not exclude the building from its calculations to pretty up its results. Instead, it removes obsolete inventory that isn’t being marketed to better reflect the reality of the office market, particularly to out-of-state lenders and investors who may give it only passing interest.

Typically, new office buildings add empty space to a market because it takes time for tenants to commit to new offices and be outfitted for them. However, the 400,000square-foot Ernst & Young Tower ended the year more than 91% occupied, partially due to signing more tenants than observers had expected, from the OM Group chemicals concern to the McKinsey & Co. consulting firm’s Cleveland office.

Also, because the tower’s two major tenants — the Ernst & Young accounting firm and the Tucker Ellis law firm — both moved from the 925 Euclid Ave. building, they did not add empty space to the CBRE calculations.

Another factor in the decline in the vacancy rate is that the Cleveland Metropolitan School District leased 80,000 square feet of the 300,000 square feet availableat 1111 Euclid Ave., formerly Eaton Center, which Eaton shed when the industrial giant moved to the headquar-

ters it built in the suburbs.

Mixed suburban bag Meantime, suburbs in the Cleveland Metropolitan Statistical Area continued to trim vacancy. Total suburban vacancy fell to 19.9% at the end of 2013 from 21.3% in 2012 and almost 23% in 2011 as the office market continued its slow recovery from the recession.

However, in the largest suburban submarket — the eastern suburbs along Interstate 271 that surround Chagrin Boulevard in Beachwood — vacancy rose to 17.4% at the end of 2013 from 16.4% a year earlier.

In the second-largest submarket, the south suburbs along Interstate 77 surrounding the Rockside Road office corridor in Independence and Seven Hills, vacancy fell to 20% at the end of 2013 from 22% a year earlier.

The increasing occupancy rates in some submarkets mean something tenants will not enjoy as much as building owners: rent increases.

CBRE says the average asking lease rate climbed to $18.48 a square foot downtown as 2013 ended from $17.25 a square foot in 2012. In the suburbs, average asking rents fell to $16.62 a square foot at the end of 2013 from $16.80 a year earlier, reflecting the increased vacancy in the large but pricey east suburban market. â–

Real estate: Great Northern was largest deal continued from PAGE 3

The local market peaked in 2008 with $1.3 billion in sales, which shows how far the market fell and how long it has taken real estate types to find ways to do deals with less debt and for the lending spigot to reopen.

Mr. Pacella said he has believed for years that Northeast Ohio is a market that can sustain commercial sales of about $700 million a year, given the size of the region.

Looking forward, he sees more of the same. “There is a solid pipeline of deals that will come to the market,� Mr. Pacella said. He also cited widespread indications that lenders are ready to provide more loans for commercial real estate in 2014 than last year.

As is usually the case, megatransactions set the pace for the market.

The largest single sale by dollar volume was the $197 million purchase last November of the 1.2-million-square-foot Great Northern Mall in North Olmsted by Chicagobased Starwood Retail Partners from Australia’s Westfield Group.

The second-largest deal was the sale of five office buildings in Independence to an affiliate of Five Mile Capital LLC of Stamford, Conn., by Duke Realty Corp. of Indianapolis in a $62 million deal.

The third-largest transaction was K&D Group’s sale of the 949-suite North Pointe Apartments in Euclid to Suffolk Family Trust in a $56 million deal. The NAI Daus report did not disclose the headquarters of Suffolk.

The fourth-largest sale was a portfolio transaction, the $53 million purchase of 16 industrial buildings scattered around Northeast

MARKET MATTERS A look at the number of commercial real estate transactions in Northeast Ohio, along with the total value of the sales, each year since 2007: Year Deals Total 2007 175 $1.286 billion 2008 108 $696,289,849 2009 41 $190,995,760 2010 33 $290,182,767 2011 53 $405,085,312 2012 81 $711,834,402 2013 79 $790,407,751 ■Source: CBRE survey Ohio by Los Angeles-based Hackman Capital, according to Mr. Pacella’s analysis. The seller of the buildings in Highland Heights, Solon, Strongsville and Twinsburg was the California State Teachers Retirement System.

Next on the list was the purchase

by Morgan Management of Rochester, N.Y., of K&D Group’s Marsol Apartments in Mayfield Heights. Morgan paid $42.5 million for the 986-suite complex.

Retail space heats up For the first time, Mr. Pacella analyzed commercial sales by various property types, with retail sales unexpectedly accounting for 43% of the region’s deals by dollar volume.

The strong showing by retail properties was a surprise, Mr. Pacella noted, given how much the recession roiled retailers.

Apartment properties, universally regarded as a favorite by investors and lenders in the wake of the home-ownership bust and soaring occupancy rates, accounted for 22% of the sales by dollar volume, while office properties ac-

counted for 16% and industrial properties 7%.

Mr. Pacella is not alone in expecting the pace of commercial real estate sales to continue apace this year. “The last few years, much of the volume was from the sales of distressed real estate,� said Vicki Maeder, a vice president in Cleveland with the CBRE Group brokerage who focuses on commercial sales. “Most of that’s gone now and we’re getting back to conventional deals. “There’s more of a return to normalcy in values,� Ms. Maeder said. “We’re seeing fewer buyers who want to offer 50 cents when the price is a dollar.� She also said more buyers from outside the United States, particularly Canada and Mexico, are looking for properties in the region again.

Michael Glass, the Independence-based Ohio regional manager for Marcus & Millichap Inc., said he expects to see more deals and higher property values in the coming year. “The big unknown is where interest rates will go,� Mr. Glass said. “We don’t think an uptick will affect the market too much because so much capital is chasing real estate.�

Mr. Glass said the 2013 rise in retail property deals locally may be just the start of increased shopping center transactions because investors are beginning to look in the Midwest for retail deals due to price increases on the coasts and are perusing older properties because fewer prime properties are available.

Mr. Glass also expects more industrial and even office deals this coming year because occupancies and rents are increasing. â–

Volume 35, Number 3 Crain’s Cleveland Business (ISSN 0197-2375) is published weekly, except for combined issues on the fourth week of December and fifth week of December at 700 West St. Clair Ave., Suite 310, Cleveland, OH 44113-1230. Copyright Š 2014 by Crain Communications Inc. Periodicals postage paid at Cleveland, Ohio, and at additional mailing offices. Price per copy: $2.00. POSTMASTER: Send address changes to Crain’s Cleveland Business, Circulation Department, 1155 Gratiot Avenue, Detroit, Michigan 48207-2912. 1-877-824-9373. REPRINT INFORMATION: 800-290-5460 Ext. 136

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CRAIN’S CLEVELAND BUSINESS

Corporate United won’t stop innovating After company’s suppliers reached their lowest price points, Westlake-based purchasing organization changed ways

By CHUCK SODER csoder@crain.com

The low hanging fruit is gone, so Corporate United had to start climbing the tree.

Four years ago, the Westlakebased group purchasing organization embarked on what would become a years-long effort to get its stable of suppliers to find new ways to create value for Corporate United clients.

It was after ways that don’t involve lowering prices on the products and services those 200-plus companies buy through Corporate United. After years of negotiations, many of those suppliers already have dropped their prices significantly and can’t afford to go much lower, according to David Clevenger, senior vice president.

“In most of those cases, the supplier has put up the stop sign,” Mr. Clevenger said. “The pen is now 50 cents, and that’s as cheap as the pen can be.”

So, Corporate United is in the process of rolling out a program that embodies its new philosophy.

It is starting to work with suppliers to create new methodologies they

can use to help Corporate United clients identify specific ways to save money or derive more benefit from their relationship.

Two years ago, Clevenger Corporate United started piloting the program with one supplier, CVS Caremark, that provides pharmacy benefits management to many Corporate United clients, which tend to be large companies. Now CVS Caremark is helping Corporate United clients find ways to implement wellness programs, increase the use of generic drugs, manage the use of costly specialty drugs and discourage employees from filling prescriptions at more expensive pharmacies.

Since then, OfficeMax and Weichert Workforce Mobility — a Morris Plains, N.J., company that specializes in helping employees move — also have signed on to create socalled “business advancement plans” for their Corporate United customers. This year, Corporate United aims to enroll five more

“In mose of those cases, the supplier has put up the stop sign. The pen is now 50 cents, and that’s as cheap as the pen can be.”

– David Clevenger, senior vice president, Corporate United suppliers in the program.

Room for improvement Companies such as OfficeMax might not be able to create plans that have as big an impact as plans created by CVS Caremark, given the high cost of pharmaceuticals, Mr. Clevenger said. Even so, most Corporate United suppliers should be able to find room for improvement, he said. In the process, they’ll deepen their relationship with customers, who will be less likely to switch vendors, he said.

Business advancement meetings are replacing the standard annual reviews Weichert Workforce Mobility traditionally has conducted with its Corporate United clients, said John Bartoloni, vice president of strategic relations at the company.

Now Weichert is focusing less on “what we did last year” and more on “what do we do going forward,” Mr. Bartoloni said.

Corporate United, which has 35 employees, started focusing more on the quality of supplier products

and services about four years ago.

That’s right around the time Mr. Clevenger penned an article in Supply & Demand Chain Executive magazine arguing that the purchasing field needed an overhaul because it focused too much on cutting costs.

Soon thereafter, Corporate United revamped the way its staff works with suppliers. Employees who’d focused broadly on purchasing or account management were reassigned to become specialists in a particular product category, such as human resources, information technology or facilities, allowing them to develop more subject matter expertise. The company has five category managers today and is hiring another.

“This is much more a product management role than it is a traditional supply chain or sourcing role,” he said.

Organizations such as Corporate United can improve the services provided by suppliers, but some clients still will be heavily focused on securing lower prices, according to Bill Michels, who is senior vice president at the Institute for Supply Management in Tempe, Ariz.

That said, Corporate United is right to try to help suppliers add value in new ways, because they can’t keep cutting their prices, Mr. Michels said.

“At some point, you want them to bring in innovation — new products, ideas,” he said.

■

ON THE WEB

Story from www.crainscleveland.com

Drury starts early work on former school district HQ Workers have installed black chain link fences around the former administration building of the Cleveland Metropolitan School District at 1380 E. Sixth St. in downtown Cleveland, but its makeover as a hotel will not get into gear for several months.

Look for more cleanup and asbestos abatement crews to be working on the building soon, said Dennis Vollink, president of St. Louis-based Drury Hotels Southwest. However, construction work for the proposed Drury Plaza Hotel may not begin in earnest until next summer, Mr. Vollink said.

Multiple steps remain to be taken before work takes off, including seeking an Ohio Historic Preservation Tax Credit in the March round of the competitive state program and securing city approvals for Drury’s plans.

The cleanup will continue as the company fine-tunes its plans for the landmark. They call for as many as 180 rooms — the initial figure when Drury snagged the property at auction was 100 — and the makeover is estimated to cost more than $35 million.

— Stan Bullard

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JANUARY 20 - 26, 2014

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CDI sees the Campus District offering a residential inventory more diverse than what now is available downtown, including new construction with ample parking, starting with the 370-unit Langston apartment complex within Cleveland State’s footprint.

The district also can add to downtown a mix of amenities not currently available, including retailers, unique commercial properties, such as the former clothing factory at 2320 Superior Ave. that is undergoing conversion into student housing, and green space. At a recent City Club of Cleveland event at the under-construction Ameritrust complex at East Ninth Street and Euclid Avenue, several downtown residents bemoaned the lack of a nearby dog park.

Bobbi Reichtell, CDI’s executive director, said those amenities can attract residents and businesses that want to be close to the action downtown but that might not be ready for or interested in a denser, high-rise urban environment.

Ms. Reichtell said it also is likely that the district would be home to a neighborhood school, which could make downtown a place to live for more than young singles and empty nesters.

‘We do have a new focus’ Commercial redevelopment also is in the district’s future. In particular, two buildings, now publicly owned, have private-sector potential. Developers are looking over the former county juvenile courts building, and the city of Cleveland will vacate the old Third District police station when a new, $16.8 million building on Chester Avenue near East 55th Street opens, which is expected to be in spring 2015. “We do have a new focus,� said Michael Schoop, CDI’s board chairman and president of the Metro Campus of Tri-C. “We think we’re in a position to build on the broader development structure and infrastructure we have that will be here for the long term. “And it’s worth pointing out that there is a range of amenities here that people can take advantage of,�

Mr. Schoop said. He noted that his

campus has a theater, an auditorium and a recreation center that are available to the public, “and PlayhouseSquare is in walking distance from here.�

Even before Campus District Inc. completed a strategic plan late last year, it tackled one big impediment to knitting together the district — the lack of north-south through streets.

The Northeast Ohio Areawide Coordinating Agency awarded the city a $1.5 million grant to improve East 22nd Street from the U.S. Postal Service complex on Orange Avenue to Euclid Avenue. The money will help the city improve traffic flow and make the street more comfortable for walking and bicycle riding.

Ms. Reichtell is looking to foundations for as much as $4 million in additional support to extend the work on East 22nd north.

Lofty goals Ms. Reichtell sees enormous potential for the Campus District to serve as a linchpin in the ongoing effort to make downtown Cleveland an attractive place to live. “I want the Campus District to contribute to growing to 25,000 the residential population downtown,� she said. “To reach 25,000 (residents), downtown needs an array of housing at various price points and to provide a school.�

Ms. Reichtell said CSU estimates a demand for 1,200 beds of student housing and 300 units of marketrate housing. Some of that demand will be filled by the planned redevelopment by Clayco Realty Group of Chicago and St. Louis of the former Jewish Community Federation building on Euclid Avenue into 217 apartments for CSU students.

The Campus International School, a part of the Cleveland Metropolitan School District, is operating temporarily as a K-5 school at the Cole Center on the Cleveland State campus. But Ms. Reichtell said to reach its goal of K-12 education, the school needs to find its own building, and she would like that building to be the Third District police station.

Other goals for the district are to build an arts and a live/work residential district along Superior Av-

enue and improve safety. CDI has an agreement with the Downtown Cleveland Alliance, a nonprofit that has developed a successful “clean and safe� program for the heart of downtown, to assist it with real estate development and marketing of the district.

Perhaps the most vexing issue facing CDI is finding a way to co-exist with the people who come to the Lutheran Metropolitan Ministry’s homeless shelter at 2100 Lakeside Ave. at the district’s northern end.

Ms. Reichtell is less concerned with the shelter and its clients than with the homeless who stay outside and use doorways and other public places instead of a toilet to relieve themselves. “The shelter isn’t going away, but we’ve got to figure this out,� she said.

Firm hand on the rudder Damon Taseff, another CDI board member and a principal with Allegro Realty Advisors, said he is bullish on the Campus District. “When you look at the Cleveland neighborhoods that are having any type of success reinventing themselves, they are those neighborhoods that include a number of key stakeholders that can help push redevelopment,� said Mr. Taseff, who lives in Cleveland’s Ohio City neighborhood and was on the board of Ohio City Inc., another community development group, as it helped transform the West 25th Street area. “The Campus District is not short on those types of stakeholders,� Mr. Taseff said. “As those institutions (CSU, TriC and St. Vincent) grow, supportive uses will need to fill in around them,� he said. “All of that land on the south (end of the district) has a lot of upside if they position themselves correctly.�

Mr. Taseff had particular praise for the work of Ms. Reichtell and CDI. “Having them out in front of things helps us stay coordinated and ultimately realize some longterm goals that everyone is aiming for,â€? he said. “Without that kind of hand on the rudder, if you get there, it’s by chance.â€? â–

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CRAIN’S CLEVELAND BUSINESS

WWW.CRAINSCLEVELAND.COM

JANUARY 20 - 26, 2014

PUBLISHER/EDITORIAL DIRECTOR:

John Campanelli (jcampanelli@crain.com) EDITOR:

Mark Dodosh (mdodosh@crain.com) MANAGING EDITOR:

Scott Suttell (ssuttell@crain.com)

OPINION

Right chord

C

leveland’s gift to the world, the Cleveland Orchestra, makes older members of our staff jealous of the younger ones. That’s how good a job the orchestra is doing at connecting with the under-40 crowd as it tries to secure its future by attracting a new generation of music lovers.

The latest example of the orchestra’s youth-oriented initiatives is “The Circle,” a new group aimed at young professionals. According to the orchestra, The Circle looks to “increase engagement opportunities for young people ages 21-40 and to help develop future volunteer community leaders.”

The orchestra recognizes that many young adults aren’t content simply with doing their day jobs.

They want to become involved in the community, but often don’t know where to go to do so.

The Circle provides them with an inexpensive avenue for involvement that comes with perks.

The cost of joining The Circle is $15 a month for one membership and $20 a month for two. For that price of admission, Circle members will have the chance to meet with musicians and socialize at Severance Hall and Blossom Music Center, which is the orchestra’s summer home. Membership also includes bi-monthly concert tickets “along with opportunities to attend social gatherings to network with friends and cultural business leaders of Northeast Ohio,” the orchestra said.

The Circle is in keeping with the orchestra’s push over the last few years to engage and build a younger audience. And the effort has not gone unnoticed, even by national media.

The Wall Street Journal last month ran a story on how orchestras nationwide are stabilizing their bottom lines by dropping their stuffy images as they target “nontraditional concertgoers.” The story quotes Jesse Rosen, president of the League of American Orchestras, in citing Cleveland as among the “bright spots” in this youth movement. The Journal notes that the orchestra has scored a big success with its evening “Fridays at 7” program, which starts early and features unique guest artists such as banjoist Béla Fleck.

More than most arts organizations, the Cleveland Orchestra has become extremely purposeful in reaching beyond its walls and tearing down the barriers that exist between Joe and Jane Public and most bastions of culture. Last October, for example, the orchestra announced it would be doing a weeklong residency in Lakewood in May, featuring solo and chamber performances in unique locations, educational programs at local schools and artistic collaborations with neighborhood arts and cultural organizations.

It is no accident that the orchestra chose Lakewood. Both the inner-ring suburb and Cleveland’s Gordon Square neighborhood, where the orchestra introduced neighborhood residences last May, are popular enclaves with young career people in their 20s.

As any fisherman worth his bait knows, if you want to catch fish, you go to where the fish are. The Cleveland Orchestra is doing a great job of trolling for young people in the waters they inhabit. Others could learn from its example.

FROM THE PUBLISHER

Good times fade in the distance up to daylight. She could complete the became a Browns season ticket ritual before the network came back holder during high school, in the from commercial. offseason between “The The folks in my section beDrive” and “The Fumble.” JOHN came beloved characters. “Pro By some miracle, my buddy CAMPANELLI Set” would get into a lineVic and I found seats together backer stance for each play in the lower bleachers, nine and then offer an expletiverows from the field. I think it laced critique, with all the exwas $120 for that first season pertise that came from four — 12 bucks a game. years of special-teams play in In the almost quarter of a high school. century that passed until I The “Sewing Lady” had apgave up the seats in 2011, I exparently robbed a Jo-Ann Fabperienced so much more than rics store. Each week she, her watching a team win and husband and son showed up (mostly) lose. in hand-sewn pants, shirts and hats, all In the old stadium, our seats were in a made from Browns fabric. section of old-fashioned wooden bleachAnd then there was “Mr. Negative,” ers that sat in front of the permanent who loudly complained, all game long, concrete structure. This meant that you about everything: They shoulda gone for could slip between the wood planks to it. They shoulda blitzed. They shoulda the ground below to retrieve a dropped played more Bob Seger during that timeglove, hat or Thermos (you could bring out. one in back then).

I saw more fights than a jail warden, Or, if you were like Mary, who sat next more drunks than a bartender. I watched to me, you could lower yourself during a people roll down steps and roll up joints. timeout, empty your bladder in relative I brought my then-fiancee to a sunny privacy and then reach up and tap the September game in the early-’90s, took foot of someone in Row 9. That was the off my shirt (when in Rome!) and then signal to reach down and pull Mary back

I

paid for it when the guy behind me pressed his lighted cigarette into my bare back as he passed out.

In the concourse during halftime, I once saw a Browns fan coldcock a Steelers fan, fist to the jaw. The guys standing next to me saw it, too. “Where’s security?” asked one. “You just saw security,” deadpanned the other.

But I also saw unmatched passion: folks shouting themselves hoarse, crying after a brutal loss or hugging complete strangers in victory.

In the years after 1999, the characters began slowly disappearing, a few each season.

The antiseptic new stadium, the assault on the senses that blasted from the scoreboards during timeouts, the high prices — they all took a toll. And, of course, the losing.

But most of all it was the slow bleed of hope that came with each new coach, quarterback or front office. Those of us who’ve left believe the rebuilding might never stop.

The Browns need to be careful. If the chaos keeps up, they may forever be stuck in the darkness, with no one to tap to pull them up into daylight.

■

TALK ON THE WEB

POLL POSITIONS

Re: Succeeding Chudzinski ■ Jim Tressel makes $210,000 a year at the University of Akron. Is he a candidate for the Browns’ head coaching job?

He could make more in a month with the Browns than he does in a year at UA. — Robert Chalfant

Re: Julie Boland to lead E&Y’s Cleveland office ■ Congratulations, Julie! Excellent selection by Ernst & Young. — Dale Chorba

Re: Diversity in Crain’s pages ■ Good! Northeast Ohio is behind the times on this stuff.

I can’t tell you how many times some has insisted to me that so-and-so white man is such a genius. Fine, but it’s always a white man who is such a godsend

Reader responses to stories and blogs that appeared on: www.crainscleveland.com

to the community. I noticed this immediately when I finished grad school. All the white men I graduated with were so wonderful, even ones that I wasn’t particularly impressed with. The women and minorities, even the most impressive ones, never seemed to receive the same reception.

This is a very difficult climate, in my opinion, for women and minorities. It can only change by intentional action. I really hope Crain’s sticks to it! I think the paper does a good job in a lot of areas.

— Angie Schmitt

Re: Athersys making progress ■ Well, as positive as the Jan. 13

Target now says 70 million people were affected by its big security breach. Will this change your buying behavior?

Yes. I'm not shopping at Target and I'm less likely to use a credit card.

20.5% No. How else are you going to shop, especially online?

79.5%

article sounds, even from the fellow at Piper Jaffray, there is a ways to go and a mountain to climb, so here’s to them!

Let’s hope for victims of stroke that what they are saying does come to pass.

(Also, it will help the well being of shareholders.) — Mike Schneider

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Mace is seeking balance Cleveland company is going beyond its line of pepper sprays with new technology

By RACHEL ABBEY McCAFFERTY rmccafferty@crain.com

Mace Security International Inc. wants to be known for more than pepper spray, and it’s turning for help in its adopted home of Cleveland to extend the connection of its name to other security and safety products.

Garnett Meador, Mace senior vice president and general counsel, said there are two challenges when it comes to Mace’s brand recognition.

For one, consumers associate the name with the general product of pepper spray — a plus, until they assume a competitor’s pepper spray is the same as that made by Mace.

In addition, consumers often think Mace just sells pepper spray, when the company also sells other personal defense items, such as electronic surveillance and alarm systems.

There are other hurdles for Mace, but branding is a big one.

“We have challenges ahead of us, no question about it,” said Mace’s chairman, Richard A. Barone.

So, Mace has taken steps to better understand consumers and how they interact with its products. In the last 18 months, Clevelandbased product design firm Balance Inc. has been working with Mace to learn more about why consumers buy pepper spray and how different regions perceive it.

“We needed to understand their wants and needs,” said Sandy Hridel, director of marketing at Balance.

Through national surveys and focus groups, Balance found the product gives consumers a sense of confidence. But consumers aren’t interested in a universal approach — they want a product that fits a specific need, like a keychain container they easily can carry around or a bear spray for hikers to take along on the trail.

Rene Polin, president and founder at Balance, said the company has moved into product development

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with Mace and currently is focusing on line and product extensions. Mr. Meador declined to share specifics of coming products, but said in an email that the research strengthened Mace’s resolve to be a leader in safety and security technology through internal product development and strategic partnerships.

Mace also has been working to overhaul its website to focus more on education about the brand, how to use its products, and safety and security in general. Mr. Meador said the current site is more like an online catalog while the new one — due out in the first quarter of 2014 — will be more interactive in order to engage consumers.

More than pepper spray While Mr. Meador called the pepper spray products the company’s core, Mace also is embracing electronic security technology, and will release products this year that reflects the desire to further expand its reach.

For example, Mace at the end of 2013 entered into a partnership with SoloMetrics LLC, a research and development company in Chicago that specializes in technology for the security sector. Mr. Meador said that partnership should help Mace develop tech-based products such as pendants or chips that help track individuals’ locations.

Mace also plans to expand its alarm system products this year by introducing a lower-priced, homebased alarm system that uses WiFi, Mr. Meador said. Both the new system and existing, hard-wired system will let users monitor and control them from a phone or computer.

A big area of focus for the company going forward is offering comprehensive security risk assessments to schools — something Mace began about six months ago. Mr. Barone said the company offers “realistic approaches” in a world where the conversation has focused on whether to arm everyone with firearms or to test everyone’s mental health.

The cost of the assessments, which are offered through partnerships with security companies, start in the low thousands of dollars and increase based on the number of buildings and the complexity of a school’s current technology, Mr. Meador said. There is no obligation

for schools to buy Mace-branded products after the assessment is done. The assessment identifies specific strengths and weaknesses and offers issues to consider.

“Each school we treat uniquely,” Mr. Meador said.

Mr. Meador said in an email that the company is reaching out to school districts and universities to let them know about this service and advertising it in education-related publications. The company also is becoming active in grass-roots organizations such as parent-teacher associations and school safety counsels, he said.

Mr. Meador declined to share any of Mace’s current customers, because he said the process is ongoing.

Road to Cleveland was rough Mace leadership expects 2014 to be a good year for the company, which would be a change of pace. Recent years have been tough on Mace, which has had three CEOs since Louis D. Paolino Jr. was let go in May 2008.

Its current president and CEO, John J. McCann, joined the company at the start of 2012 after serving in those same roles at Fitness Quest Inc., a distributor of home exercise equipment.

According to documents Mace filed with the U.S. Securities and Exchange Commission, Mr. Paolino was let go for “willful misconduct,” related to the board’s “belief that Mr. Paolino has not followed the instructions of the board or sufficiently performed his supervisory duties.”

In 2011, a cash-strapped Mace put together a refinancing initiative, issuing rights to shareholders to buy new shares. Mr. Barone said the company had exhausted its funds by that time. Mace was losing money as it worked to divest itself of unrelated businesses, such as car washes, and it took an additional loss in 2010 when it paid about $4.6 million in a settlement with Mr. Paolino, its former CEO who had refuted the charges of misconduct.

After the rights offering, investment advisory firm The Ancora Group Inc. of Beachwood picked up shares from hedge funds or on behalf of clients, ultimately controlling more than 40% of Mace. Mr. Barone, who is Ancora’s chairman, said even after the refinancing, Mace continued to lose money through the end of 2013. Last year’s move to Cleveland represented a fresh start for Mace, which combined its headquarters and its pepper spray production in Cleveland. Production had been in Bennington, Vt., and the headquarters was in Horsham, Pa. before a temporary move to Solon about a year ago, Mr. Meador said.

The move to Cleveland allowed for more production efficiencies and expanded overnight delivery options, Mr. Meador said. Mace has about 90 employees total, with 25 to 30 involved in production in Cleveland.

The majority of Mace’s pepper spray products now are made within its 50,000-square-foot building at 4400 Carnegie Ave., while the Mace-branded electronics are bought from suppliers. Mr. Meador said some products are made to Mace’s specifications on a contract basis, while other are purchased and sold under a private label.

Mr. Barone said he thinks the company has reached its inflection point and that it took its final major losses in 2013. He expects 2014 to be a big year for the company, one in which it can introduce new products, make small acquisitions to build its profile and build awareness of the brand.

■

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CRAIN’S CLEVELAND BUSINESS

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JANUARY 20 - 26, 2014

Browns: Firings of ‘so many coaches’ have created pattern for team continued from PAGE 3

Mike Milby, president and CEO of Ratliff & Taylor, a talent management and HR consulting firm in Independence, said corporate studies have shown that replacing an executive can cost “at least five times” the salary of the departed employee. Recruiting costs, the “down time” in which the position is vacant, the learning curve for the new leader and other factors often amount to a loss in revenue, Mr. Milby said.

Still, despite these negatives, the best decision an organization often can make is to let a key employee go quickly if it believes it doesn’t have the right person in the job, according to Mr. Milby.

“So often, people feel they need to wait longer” to fire someone, Mr. Milby said. “When they do wait longer, it’s a lose-lose for everybody. If they do wait, the person might be miserable. And if they’re not doing well in their role, the damage that can be done to the organization is far greater than the cost of letting that person go and finding the right person.”

Downside risk Of course, the flip side of the

GETTY IMAGES

Browns CEO Joe Banner, left, and owner Jimmy Haslam are searching for their second head coach in a year. seemingly annual conundrum for a Browns franchise that is searching for its fourth head coach since 2010 is the possibility, at least in the case of Mr. Chudzinski, that it didn’t give a young coach enough of a chance to succeed.

“Is one season enough? I have no idea,” Mr. Milby said. “If, in fact, that was an unreasonable amount of time and if Chud would’ve proven he was a good hire, the consequences are huge.”

It isn’t that change is uncommon

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in NFL coaching circles. Assuming the rest of the head coaches’ jobs are safe until next season begins, 14 coaches will enter 2014 in their first or second years with their current teams. More than half of the league’s 32 head coaches — 18 — will be in their first, second or third year in 2014.

“I think sometimes there can be value” in the quick decision on a coach, said Dan Mahony, dean of Kent State University’s College of Education, Health and Human Services, who also teaches sports management.

“If you made the wrong hire, it doesn’t make sense to keep him,” Dr. Mahony said.

However, with the Browns’ repeated change in the head coaching role, the team could find itself shunned by potential successors to Mr. Chudzinski because of a perceived lack of stability.

“I think the Browns’ problem is they have fired so many coaches, it’s more like a pattern than one mistake,” Dr. Mahony said. “You can look at it and say the past leadership did that, but if you look at their current search, it indicates they may be having some issues finding the right person.”

While the Browns soon will hire their fifth head coach in the last six years, their division rivals haven’t had a coaching change since John Harbaugh replaced Brian Billick as the Baltimore Ravens’ coach in 2008.

Marvin Lewis has been the Cincinnati Bengals’ coach since 2003. Mike Tomlin, who was hired in 2007, is the Pittsburgh Steelers’ third coach since 1969.

“On one hand, you’re being decisive” by firing a coach, Mr. Reynolds of Dise & Co. said. “But on the oth-

er, you’re creating constant turmoil and upheaval.”

Owner goes on offense Mr. Haslam is aware of the negative perception of his franchise and last week took a step to address it.

With criticism of his organization mounting faster than the defeats in any one of the Browns’ 12 doubledigit loss seasons since 1999, Mr. Haslam had a letter delivered to the inboxes of the team’s season-ticket holders last Wednesday, Jan. 15.

Mr. Haslam said in the letter that the Browns “have purposely been very methodical” in their search for Mr. Chudzinski’s replacement. The owner also said the position was a “very attractive one” in NFL circles — a belief that isn’t shared by various members of the national media after the Browns for the first time in team history didn’t bring a head coach back for a second season.

Mr. Chudzinski, the first of seven NFL head coaches to lose their jobs after the 2013 regular season concluded, had three years and $10.5 million remaining on his contract.

The Browns are responsible for the entire total, minus any salary Mr. Chudzinski would receive from another team through 2016.

Jim Kahler, executive director of the Center for Sports Administration at Ohio University and a former executive with the Cleveland Cavaliers, called the decision to part with Mr. Chudzinski so quickly “a big statement from ownership.”

“The Browns fan in me appreciates that Mr. Haslam is willing to say, ‘If we made a mistake, that’s a $10.5 million mistake, and let’s get it done the right way,’” Mr. Kahler said. “That’s admirable that you have an owner that is willing to throw that kind of money away.” ■

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11

Scene: Publication’s younger audience has some ‘spending money’ continued from PAGE 3

Euclid Media bought the four publications from Times-Shamrock Communications of Scranton, Pa., which had put them up for sale last August. Times-Shamrock had purchased Scene from Village Voice Media, a national owner of alternative weeklies, and a Scene competitor, the Free Times, from Times Publishing Co. of Erie, Pa., in 2008 and merged the Free Times into Scene.

Mr. Zelman would not disclose the purchase price for the four weeklies and only would say that Euclid Media is backed primarily by his family. He said he had been looking for a new business opportunity for some time — he even had inquired about Scene earlier last year before it was put up for sale.

“I’m a news junkie; I’m very interested in news and the newspaper business,” he said. “I want to see those unique voices continue.”

A lack of experience might be a handicap in some fields. But because few people in media have yet figured out how to make significant money in the digital age, Mr. Zelman sees no reason why he can’t make an impact.

He isn’t alone in that thinking.

He’s part of a trend of business people who are crossing over into media; they include Jeff Bezos, the head of Amazon.com Inc., who last year bought The Washington Post.

No staff cuts are anticipated at Scene or the other three media operations now owned by Euclid Media Group — Detroit Metro Times, Orlando Weekly and the San Antonio Current. Mr. Zelman said Scene employs 25 people at its Warehouse District office in downtown Cleveland and the company employs a total of 85.

A media sector in flux Some alternative weeklies have

struggled amid a sharp industrywide decline in classified advertising as free advertising venues such as Craigslist arose, though others are thriving, said Tiffany Shackelford, executive director of the Association of Alternative Newsmedia.

One of the industry’s pillars, the Boston Phoenix, closed in 2013.

“Like everyone else in the media, we’re in flux,” Ms. Shackelford said.

“There is competition (online) for listings and classifieds that were a foundation of alt-weeklies.”

If alternative weeklies have a strength, it’s the loyalty of a targeted audience that can be attractive to some advertisers. The audience is young and local, and in many cases it uses the alt-weeklies for the latest information on the local music scene and other goings on around town.

The audience at Scene and most other alternatives is a post-college one in the 25- to 40-year-old range, Mr. Zelman said.

“People who have a little spending money,” he noted.

Scene’s emphasis editorially is on music and dining, though it also was described recently by Cleveland Magazine’s Eric Trickey as “a rebellious alt-weekly” that scored with its coverage of the young women held captive by the late Ariel Castro.

The paper frequently splashes crime stories on its cover. The Oct. 16 cover story is a good example — “Inside the Biggest Heroin Bust in Northeast Ohio History.” It tracks a drug sting from a heroin bust in Chicago in 2012 back to Cleveland.

Distribution of the print version of Scene is about 50,000 weekly, according to Mr. Zelman, who said Scene’s website has increased its page views from an average 400,000 a month in 2012 to 1.8 million in December.

Some of those additional eyeballs may be attributed to Scene’s coverage

of Ariel Castro and the real circumstances behind the sudden departure last fall of David Franklin as director of the Cleveland Museum of Art. Scene was first to report that the “personal reasons” for Mr. Franklin’s quick exit included the affair he’d had with a former museum staffer who committed suicide in April.

But there are other reasons people read, too.

“The music coverage attracts readers,” said Cindy Barber, coowner of the Beachland Ballroom & Tavern, a regular Scene advertiser and a former editor of Free Times in the 1990s. But whether that coverage will be enough to keep Scene going is open to question in Ms. Barber’s mind.

“I think that everybody is scrambling to translate to online, but I don’t think anybody in Cleveland has done a good job of it,” Ms. Barber said.

“The future is translating updated information constantly about what’s going on,” she said.

“Whether (Scene) can pull it off, I don’t know.”

Eye on events Mr. Zelman said he believes creating digital advertising packages that sell a combination of the website and Scene’s social media sites can boost

revenue. But, he said that in the near term, “I think a good amount of the revenue growth will be in events, because we found we can run them at a pretty profitable rate.”

Scene put on four events in 2013, including an ale fest and “Flavor,” an affair most recently held last November at the Western Reserve Historical Society that allowed attendees to sample the offerings of some of the area’s top chefs. It attracts as many as 1,000 people.

Event sponsorship is not new for media companies, but it’s a growing trend among alternative media, said Alexa Schirtzinger, former editor of the alternative Santa Fe (N.M.) Reporter, who is examining future revenue models for local media at Stanford University.

“I would say that events are the biggest trend (for alternatives) and one that I feel is most promising,” Ms. Schirtzinger said. “These papers have unparalleled brands in their communities and relationships with their advertisers and readers. They just have to leverage those relationships.”

Ms. Schirtzinger cited the success of other alternative weeklies at staging events, most notably the South

by Southwest multimedia festival and conference begun in 1987 in Austin, Texas, as a music festival by

the alternative Austin Chronicle.

Ms. Schirtzinger, who is in the midst of a nine-month John S. Knight Journalism Fellowship at Stanford, said the print editions of alternative weeklies also are thriving in many markets.

“What has been surprising to me is seeing a big demand among readers and advertisers for the print product,” she said. “There’s not that ‘gloom-and-doom’ ethic that print is going to disappear and it’s all going to go to hell.”

Mr. Zelman said the papers in his group are a mixed bag financially, with two of the publications doing well and the Cleveland and Detroit publications trailing behind.

“One of our goals is to get all four evened out to a nice, profitable level,” he said.

Mr. Zelman said he expects to be able to restore profitability at the two laggards.

“In Cleveland, there was a big push to really improve the editorial work and the staff and do investigative reports, as well as a push to increase the sales staff,” he said of moves that began before he took over. “There’ve been a lot of changes over the last couple of years, and now were starting to see that coming to fruition along with increasing the digital presence.” ■

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WHAT THE HEALTH CARE COMMUNITY IS SAYING ■ What attributes are necessary to be a leader in the health care sector of tomorrow?

DANNY WILLIAMS Executive director The Free Medical Clinic of Greater Cleveland

I

WHO TO WATCH IN HEALTH CARE

T

here are so many people doing interesting things within Northeast Ohio’s health care sector. Their efforts range from direct patient care to administrative and research work, but all

DR. DAVID CHAND Pediatric hospitalist, deployment director Akron Children’s Hospital

D

r. David Chand always assumed he’d become a physician, just like both of his parents and his sister.

What he didn’t know is that he’d spend most of his time diagnosing medical problems of a different kind — the kind that keep his hospital from running at full tilt.

Dr. Chand is a pediatric hospitalist at Akron Children’s Hospital, but nowadays he spends only five or six weeks a year working with patients. The rest of the time he’s

TAMIYKA ROSE Manager of state government relations The MetroHealth System

L

ast year was a watershed year for Tamiyka Rose and MetroHealth — the organization she tirelessly advocates for in Columbus as its manager of state government relations.

She and her team successfully lobbied state and federal regulators for an experimental Medicaid waiver program known as Care Plus, which extended health coverage to nearly 30,000 uninsured residents in Cuyahoga County. Later, MetroHealth, along with other health care providers, successfully lobbied for an expansion in Medicaid eligibility.

Still, Ms. Rose’s name isn’t the one in press releases or on the

are facing a changing health care environment full of new challenges — and opportunities.

In this section, we take a look at just a few of those whose efforts within the region’s health care sector are worth watching.

trying to make the hospital as efficient and effective as it can be.

As one of five project leaders within the hospital’s Mark A. Watson Center for Operations Excellence, Dr. Chand has had a big impact on the hospital since he was hired in 2008.

One example is under construction today: Dr. Chand helped lead the design of a new emergency department. The department is being incorporated into the first floor of the new tower the hospital is building as part of a $180 million expansion project.

His team was able to reduce the size of the department by 20% compared to the original plan. For instance, they reduced the number of

exam rooms by using data to estimate future demand, by making the new rooms flexible enough to handle almost any patient and by having patients get tests done before going to an exam room.

He also got the architects, contractors, staff members and other stakeholders involved in the design process.

“By involving everyone from the beginning, you lose a lot of waste,” he said.

In 2011, while studying for his master of business, operational excellence degree from Ohio State University, he helped the hospital’s outpatient psychopharmacology clinic cut the average wait time to get an appointment from 50 days to about seven.

news when MetroHealth has a breakthrough, and she’s OK with that. After all, she’s not in it for the fame or money. She’s also not a doctor, so her work helps MetroHealth’s patients in a far different way.

“It’s all about how I’m able to impact and change lives of those who are less fortunate than I am,” she said. “I’m able to impact policies that can improve the health of those less fortunate than I am.”

While she spends a great deal of her time in Columbus, Ms. Rose regularly mingles with MetroHealth’s patients. Ms. Rose receives treatment for multiple sclerosis once a month.

During one of her treatments, she met another patient with a rare condition who said the coverage she received through the Care Plus program helped save her life.

“That just touched me to no end,”

Ms. Rose said. “The policy I helped create helped save someone’s life.”

John Corlett, MetroHealth’s vice president for government relations and community affairs, described Ms. Rose as “quietly effective.”

“She’s not a person who talks a lot about herself, brags or promotes herself,” Mr. Corlett said.

“She just goes about getting her work done. She has shown a wonderful capacity to connect with all kinds of people, particularly our physicians because she works with them on different projects, trying to connect them with resources on the state level.”

While 2013 was a year of professional successes for Ms. Rose, a personal achievement — the birth of her daughter, Jasmyne — outshone them all. Also, in her spare time, she volunteers for the National MS Society where she offers legislative advocacy advice and volunteers, raising money for the organization. — Timothy Magaw

See CHAND Page 16

think it’s important to address this question both from the perspective of the health care institution as well as the individual health care leader.

Institutions should be seeking leaders who are comfortable with emerging new technologies and who understand both the benefits and limitations of those technologies.

In addition, health care institutions should seek leaders with the requisite content expertise, but who also have the maturity and emotional intelligence needed to nurture and motivate an increasingly diverse work force.

Finally, from the institution’s perspective, an effective leader must have a sufficient ethical mooring to allow him or her to stay focused on the organization’s mission in the face of significant pressures to produce ever-increasing returns on investment.

Individual leaders hoping to have a long-term career in health care must have a strong interest in life-long learning. Today’s challenges require an ability to develop and apply creative new approaches, while also adapting old strategies to new problems.

Effective leaders also must have an ability to leverage their own impact through common and uncommon collaborations. And, an appreciation of the value of respectful persistence is indispensable. There is no substitute for perseverance.

STEFFANY LARKINS Executive vice president, chief of staff, diversity officer Medical Mutual of Ohio

A

t Medical Mutual, we recently have gone through a process to redefine the competencies we expect our leadership team to possess.

At the top of the list is the “Ability to Conceptualize,” which we define as an ability to mentally assemble multiple and divergent pieces of information into a coherent whole. The entire health care industry will continue to be dynamic and unpredictable as the Affordable Care Act unfolds, and we expect the ways in which care is delivered and financed will be transformed.

Key attributes of a transformational leader include a strong ap-

titude toward innovative and strategic thinking, the ability to align organization resources, and the ability to create new and effective partnerships. Additionally, it is expected that health care leaders will be managing in two worlds for the foreseeable future as current operations must successfully continue while complex transitions to completely new ways of doing business occur.

MEREDITH BOND Dean and professor College of Sciences and Health Professions, Cleveland State University

A

bility to fully integrate preventive medicine, especially health behavior modification, into population health, as a means to make health care delivery most effective.

■ Ability to understand the rapidly changing face of health care and how the Affordable Care Act will influence health care delivery and primary care physician shortage; need to be nimble and willing to lead the changes in health care nationally.

■ Value the contributions of all health care professionals.

■ Be fully engaged with business and local community organizations to understand hurdles with implementation of the Affordable Care Act. ■ Be a strong advocate for wellness and healthy lifestyle education. Walk the walk.

■ Be highly sensitive to the human and economic costs of health disparities. Work with local partners to focus leadership team on developing strategies to address health issues of medically underserved.

■ Have a global perspective on health — be an advocate and leader in developing international partnerships to combat global health problems.

DR. RONALD GOLOVAN Medical director Be Well Solutions

T

omorrow’s successful leaders will be able to adapt to and accept that change is both inevitable and necessary.

The economic and demographic forces that will drive health care did not exist in years past. In response, new avenues to deliver care such as worksite wellness programs and patient centered medical homes will provide alternatives to traditional delivery models.

Effective leaders will adapt, but will not simply accept change for the sake of change. Relying on vision they acquire from their experiences will also guide leaders toward a successful future.

FOR MORE Curious what these health care leaders think the next challenges will be?

Follow us on Facebook (CrainsCleveland), Twitter (@CrainsCleveland) or LinkedIn (crain’s-cleveland-business), check out our daily email newsletter this week or go to: www.crainscleveland.com/challenge.

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14 CRAIN’S CLEVELAND BUSINESS

DR. SUMITA KHATRI Co-director, Asthma Center Cleveland Clinic Respiratory Institute

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r. Sumita Khatri’s goals in her professional life are to break down disparities in treating asthma and help increase the number of women in medical leadership.

“I feel good when I hear about people with asthma getting the treatment they need,” said Dr. Khatri, who sees patients and works in the Clinic’s intensive care unit in addition to serving as a co-director of the respiratory institute and helping oversee medical research associated with asthma treatment.

In 2013, she co-hosted Northeast Ohio’s first World Asthma Day, designed to break down bar-

ELIZABETH V. LOONEY Second-year student College of Medicine, Northeast Ohio Medical University

I

t was Elizabeth V. Looney’s commitment that helped catch the attention of the committee that awarded her $30,000 a year for the remaining years of her studies.

Ms. Looney, a Northeast Ohio Medical University student who received the scholarship last year, not only voiced her passion for serving disadvantaged communities — she already had done it.

During her junior year at the University of San Francisco, Ms. Looney studied abroad in El Salvador. When the fall semester ended, she stayed for the spring to volunteer with an organization

BENJAMIN SUTTON Vice president, Integrated Innovations and Strategy Summa Health System enjamin Sutton never intended to land in the health care industry. Having completed his undergraduate degree in mathematics and economics at Denison University, Mr. Sutton claims he was “qualified for just about nothing.”

But a chance gig at Medimetrix, a Cleveland-based health care consulting firm, gave him his start in the field. Now, at 36 years old, Mr. Sutton serves as vice president of integrated innovations and strategy for one of the region’s

B

WHO TO WATCH IN HEALTH CARE

JANUARY 20 - 26, 2014

riers between area medical institutions in order to educate patients and their families about properly managing the lung ailment.

That effort, along with her service on local and regional American Lung Association committees, led to the group naming the institute a regional “Lung Champion.”

Dr. Khatri, who did a residency in pulmonary critical care at the Clinic, was recruited in 2010 from MetroHealth because of her interest in asthma. The Clinic was forming its respiratory institute to focus attention on respiratory illnesses, according to Dr. Herb Wiedemann,

the institute’s chairman.

Dr. Khatri is one of three co-directors of the institute and serves as its administrative lead, said Dr. Wiedemann, who noted, “She balances many different activities and does them well.”

Terming herself “a homing pigeon,” Dr. Khatri grew up in Lyndhurst and returned here after five years in Atlanta, where she served on the staff of the medical school at Emory University and earned a master’s degree in clinical research.

She said she is a “Midwestern” person at heart. “I enjoy Cleveland,” she said. “It’s a big city but you can meet everyone you need to know to get things done.”

And she does get things done.

After discussing how few women

are in medical leadership with Dr. Pamela Davis, dean of the School of Medicine at Case Western Reserve University, the dean asked her to create a program to help remedy it. The result is a competitive program that gives selected candidates from local medical institutions workshops on executive skills and leadership.

Asthmatic herself, Dr. Khatri said she originally planned to practice pediatrics in a rural area, but switched course to pulmonary medicine, in part because her late father was treated for lung cancer.

She said she was struck by how important it was to pulmonary patients in the intensive care unit that she was there for them, even if they could only communicate “with a hand squeeze.” — Stan Bullard

that worked to pair up communities, churches and schools in the United States, Australia and Canada with community projects in the Latin American country.

She left inspired.

“Growing up on the West Side of Cleveland, you’re not rich but you’re not poor,” said Ms. Looney, a native of Cleveland’s West Park neighborhood. “It really helped me see my position in the world, how privileged I really am … how much of a difference I can really make.”

More recently, Ms. Looney is the student point person for VWeek, a week of events, education sessions and workshops coming in

February to NEOMED that’s aimed at increasing awareness of and raising funds to stop violence against women and girls.

“Elizabeth has a demonstrated ongoing life story which suggests that she’s committed to providing care to communities that need it most,” said Erik Porfeli, assistant dean of community engagement and admissions for NEOMED. He chairs the selection committee for Choose Ohio First, the state-funded program that awards scholarships to medical students who commit to practicing primary care in the state. Ms. Looney is one of six NEOMED students to receive the award in 2013.

Ms. Looney, 29, is almost halfway to her medical degree, and already, Dr. Porfeli says she connects with people on a “very

personal level,” recognizing them for who they are and what they need.

“This is exactly the kind of person we need in health care, now and in the future,” Dr. Porfeli said.

“As health care gets increasingly overburdened because of the shortage of physician providers, (we) need people who can connect quickly and intimately.”

Ms. Looney’s passion for serving the underserved has roots, she said, in the Jesuit model of service and how her family has committed to ministry.

“I want to be an advocate and an ally for people who don’t always have their own voice, who don’t have somebody to give expression to their experiences,” she said. “… That’s what drives me.”

— Michelle Park Lazette

health care powerhouses — Summa Health System in Akron.

“I knew as much about health care as any other industry and just went with it,” said Mr. Sutton, who later earned his MBA from Ohio State University.

He added, “It’s a really interesting industry that is in no way simple and is constantly changing …

While I don’t touch patients on a daily basis, I feel some connection with the end result.”

In his role with Summa, Mr. Sutton supports the development

and execution of the system’s business plans. In 2012, he took on an additional role of leading the team aimed at pulling roughly $1 billion in costs out of the system over the next decade.

He’s also been instrumental in developing the relationship with HealthSpan Partners, the subsidiary of Catholic Health Partners in Cincinnati that recently purchased a minority stake in Summa. Mr. Sutton joined the health system in 2006 as the planning manager.

Summa CEO Thomas Strauss described Mr. Sutton as someone who’s “unflappable,” saying that Mr. Sutton shows little emotion and is very deliberate and thoughtful. Given that he spends so much

time with him, Mr. Strauss said he almost considers Mr. Sutton a son.

“These are stressful times, and we keep layering stuff on him, and he’s pretty resilient and able to step up and get it done,” Mr. Strauss said. He added, “It’s been fun to see him and his team put out these new plans that work on improving efficiency and profitability.”

Mr. Sutton, a native of Charleston, W.Va., lives in Hudson with his wife and two daughters. Time spent not working or with his family is devoted toward baseball card collecting. His goal is to have every type of George Brett card in existence. At present, he has nearly 600 cards of the former Kansas City Royals third baseman.

— Timothy Magaw

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The Center for Health Affairs and CHAMPS Healthcare

KATE FOX NAGEL Chief administrative officer Care Alliance Health Center

K

ate Fox Nagel didn’t know anything about public health until her husband, then heading to medical school, suggested the field to her.

“He went to a medical school that had a big emphasis on public,” she recalled. “And when we would talk about what I wanted to do with my life, he said, ‘You should really look at this public health field,’ because it was always important to me to be on the front end, I wanted to help people not get sick.”

Ms. Nagel got a master’s degree in public health from Johns Hopkins University and joined the Cleveland Clinic in 2004, working in a variety of external relations jobs before helping create and direct its department of public health and research in 2009. She is currently working toward a doctorate in public health through the University of North Carolina at Chapel Hill.

In March 2012, she joined the Care Alliance Health Center as its chief administrative officer. The Care Alliance provides comprehensive medical and dental care and patient advocacy, with a focus on the city’s homeless population and public housing residents.

As a Federally Qualified Health Center, it gets much of its $5.2 million annual budget from the federal government. While many patients may qualify for free care, Care Alliance patients may pay a portion of the cost of care based on their income.

With federal and foundation funding the agency is building a new clinic on the city’s East Side, at East 30th Street and Central Avenue. It currently operates three centers, one downtown on St. Clair Avenue, another at the Carl B. Stokes Social Services Mall on Woodland Avenue on the city’s East Side and one at Riverview Towers on the West Side.

Francis Afram-Gyening, the Care Alliance’s CEO, said Ms. Nagel’s role “is to oversee all of our administrative functions, but more importantly oversee our strategic initiatives. She is responsible for seeing that we are moving forward.”

Mr. Afram-Gyening said the new strategic plan focuses on raising money for and building the new East Side center and in establishing a program of behavioral services for patients.

“We’re a small community health center, and we take care of the most disenfranchised of our community,” Ms. Nagel said, adding that the Care Alliance has been described as “the safety net of the safety net.”

Because the centers are focused not just on medical care but on the most basic needs of the people who come to the centers — such things as blankets, shoes and finding food — Ms. Fox believes her work has an impact.

“It’s always been important to me that I go home at the end of the day and feel good about how I spent my day,” she said.

— Jay Miller

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DR. BENITO A. ALVAREZ Senior vice president of physician alignment, president of Akron General Partners Physician Group, staff physician Akron General Health System

D

r. Benito A. Alvarez’s responsibilities as the senior vice president of physician alignment for the Akron General Health System and as president of its Partners Physician Group require him to have a deep understanding of what it means to practice medicine in the system.

That’s not a problem for Dr. Alvarez, who also still works in obstetrics and gynecology at Akron General. “That’s my world,� Dr. Alvarez said. “That’s what I’m used to doing.�

But this isn’t a case of everyone must do more — Dr. Alvarez insisted on the dual role when he returned to Akron General from the Cleveland Clinic about six months ago.

In 2011, Dr. Alvarez spent about six months as Akron General’s senior vice president of medical affairs, chief medical officer, which was a purely administrative role. He liked working in the health system, but left for the Cleveland Clinic so he could start seeing patients again.

When Akron General came calling, he had just one request: “Listen, I’ll come back if I can be a doc,� he said.

Dr. Alvarez’s career has taken him in a variety of directions, from large hospital systems to a private practice.

He spent five years as a flight surgeon in the Air Force. He joined in 2003, after Sept. 11, with the intention of helping the country and of setting a positive example for his two children.

He was raised about an hour from West Point in New York, the child of Cuban parents who left when Castro took over.

Today, Dr. Alvarez spends about 40% of his

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WHO TO WATCH IN HEALTH CARE BRIAN GRIMBERG

“That’s my world.

That’s what I’m used to doing.�

Assistant professor of international health Case Western Reserve University School of Medicine’s Center for Global Health and Diseases

– Dr. Benito A. Alvarez on his roles with the Akron General Health System and its Partners Physician Group time practicing medicine and about 60% on administrative tasks. The divide keeps him “grounded,� he said, and helps him understand what the doctors in the system are going through.

As the senior vice president of physician alignment, he works to establish relationships with doctors in the community who aren’t officially affiliated with the health system — and lets them know they can change that. “I’m the relationship guy,� he said.

And as the president of the Partners Physician Group, he works with the approximately 140 physicians Akron General has in-house.

It’s difficult to be an independent doctor in today’s world, Dr. Alvarez said, and the health system can take some of that burden in terms of paperwork. He’s been working to get to know the doctors in the system one-on-one and encouraging them to get to know each other, too.

He’s aiming to reduce the number of patients who leave the system simply because their Akron General physician didn’t know there was a relevant specialist, like a cardiac surgeon or an endocrinologist, in the system.

Dr. Alvarez is a person who gets a handle on issues quickly, looks for solutions and does what needs to be done, said Dr. Thomas L. “Tim� Stover, president and CEO of Akron General Health System. “He’s a problem-solver,� Dr. Stover said. — Rachel Abbey McCafferty

B

rian Grimberg is not a medical doctor, but that doesn’t mean he’s not in the business of saving lives.

Dr. Grimberg just prefers to save them en masse — which is what he hopes to do with his research into malaria and the invention of an important new diagnostic tool to help combat the disease.

He began studying infectious diseases when he was just 16 — at the Governor’s Institute for the Gifted and Talented at Case Western Reserve University, where Dr. Grimberg now works. But he didn’t focus on malaria until after he earned his doctorate from Wake Forest University in 1996.

Since then, he’s been all over the world studying the disease and the five species of protozoa that spread malaria among humans. That includes such destinations as Peru or Papua New Guinea, where Dr. Grimberg said some residents can get up to 10,000 mosquito bites in a single night.

The disease gets a lot of attention, and deservedly so, because it’s a killer — even though most adults who get it will survive the disease. “You are not in danger, but your children are — especially if they’re infants,�

Dr. Grimberg said. “About 95% of the million deaths a year caused by malaria are children under 5.�

As a result of his studies, Dr. Grimberg not only has attracted new research money to his institution, but he’s the lead

CRAIN’S CLEVELAND BUSINESS 15 inventor of something called a RAM Device, which stands for Rapid Assessment of Malaria.

Like something out of a “CSI� crime drama, the device uses light and magnetic fields to identify the magnetized waste that malaria parasites emit in their host’s blood.

With a single drop of blood, the device can confirm the presence of malaria, at a fraction of the cost of other devices and in a hand-held size that is dwarfed by other pickup-truck-sized tools now used. It also produces results in 20 seconds, instead of the full hour or more that current diagnostic methods require.

Though he jokingly describes the device as “two refrigerator magnets and a laser pointer,� the invention is a mix of medicine, physics and electronics. Few other people could have brought it to fruition, says Dr. Grimberg’s lab manager, D’Arbra Blankenship. “Part of what makes him so innovative is he’s using so many different branches of science in order to create a real solution,�

Ms. Blankenship said. “Engineering, physics, biology — they talk differently, they think differently and they value projects in different ways.�

Already, the invention has gotten the interest of the military, health-related nongovernmental organizations, national governments, large hospitals and other organizations. Now, Dr. Grimberg hopes to complete the final testing of the device and bring it into production, hopefully with a manufacturer in or near Northeast Ohio.

If the device works, it could help save countless lives, not to mention the productivity lost to malaria.

As for Dr. Grimberg, he’ll still have work, he said. If the diagnosis of malaria can be improved, so can its treatment, he reasons. — Dan Shingler

Executive MBA for Healthcare Professionals Information Sessions Kent State’s College of Business Administration provides a top-notch, high-quality Executive MBA degree customized for the healthcare professional at a tremendous value. Ê Ê Ê Ê Ê Ê

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Session Dates - Start Time 6:30 p.m. >Â˜Â°ĂŠÂŁ{ĂŠUĂŠ iL°Ê£ÓÊUĂŠ >Ă€VÂ…ĂŠÂŁĂŽĂŠĂŠ

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WHO TO WATCH IN HEALTH CARE

16 CRAIN’S CLEVELAND BUSINESS

JAMIE STANOS Chief operating officer The Centers for Dialysis Care

W

hen Jamie Stanos took over in 2008 as director of operations for the Centers for Dialysis Care, the economy was in the midst of a tailspin.

Still, Mr. Stanos — who was 35 years old at the time he joined the CDC — has managed to help lead his organization forward, working to trim costs, improve facilities and participate in the broader national discussion of ways to improve the health care system.

The 40-year-old nonprofit for which Mr. Stanos works has 18 locations and 20 programs, including a site as far east as Youngstown. The $85 million organization employs about 550 people and has more then 80 referring nephrologists.

“CDC was for the longest time a well-kept secret in the community,” said Mr. Stanos, who noted that his organization launched a new branding campaign within the past several years. “That’s something I’ve been working on changing.”

A Northeast Ohio native, Mr. Stanos’ previous experience prior to the CDC had included working as director of operations for Nashville, Tenn.-based Renal Care Group and as executive director of the Westlake branch of the YMCA of Greater Cleveland. He earned his bachelor’s degree from Kent State University and his MBA from Cleveland State University.

Mr. Stanos said he largely has focused on operational efficiencies, reducing total expenses by $1.8 million since 2010 without any large-scale staff cuts.

Tracy Douglas, corporate director of dialysis services at the CDC, said Mr. Stanos has very methodically and strategically built his team, and he is not someone who

is afraid of trying a new approach.

“He has a good gut instinct and vision for where to take the organization in the future,” said Ms. Douglas, who also worked with Mr. Stanos at the Renal Care Group.

Recently, the CDC has been undertaking a $5 to $6 million effort to renovate a number of its locations, including those in Euclid, Shaker Heights, Cleveland West (West 25th Street) and Cleveland East (University Circle).

The organization additionally in 2013 created a 160-page document that outlined the parameters for a dialysis-specific Accountable Care Organization. The CDC was selected by the Centers for Medicare & Medicaid to work on the project aimed at developing an improved care model for patients with end-stage renal disease; it was the only small dialysis organization in the country to submit an application to participate.

Ultimately, Mr. Stanos said his goal is to continue building a system of comprehensive care for the CDC’s roughly 2,000 patients, one that includes education, partnerships and a broad base of services, including outpatient interventional procedures.

Indeed, Mr. Stanos noted that service in the past year has been opened up to provide pain management, uterine fibroid embolization and tumor ablations, among other things — new territory for an organization that had provided primarily dialysis services and treated dialysis access.

“We strive for a better future every day,” he said. “… If you ride a bicycle down the street and stare at the front wheel, you’re going to run into something.”

— Amy Ann Stoessel

TONI HARE Vice president CHAMPS Oncology

“

B

ig data” is a term that only in the last few years has become part of the public vernacular. But Toni Hare has been dealing with big data her entire career — and using it to help hospitals and other institutions chart more effective courses of action to treat patients with cancer.

Ms. Hare, 59, is a Commission on Cancer-trained consultant (one of only 36 nationwide) who specializes in compliance consulting for the national cancer registry, a massive collection of data related to cancer and tumor diseases.

A big part of her job, as well as that of the cancer information specialists at CHAMPS Oncology, an affiliate of the Center for Health Affairs, is to work with cancer programs in 15 states to analyze data and to turn it into information that can be used to achieve accreditation, to improve administrative planning, to bolster community outreach and to clarify cancer care objectives.

In addition to cancer registry management, CHAMPS Oncology provides clients with specialized compliance management services, including Commission on Cancer consulting, as well as workflow and productivity analysis. Ms. Hare said the cancer data help CHAMPS Oncology clients evaluate their patients’ outcomes and quality of life, which leads to long-term improvement in treatments.

That’s all intensely detailed, data-driven work. But for Ms. Hare, the job has long been about more than just numbers.

In college, Ms. Hare knew she was interested in a career in health care, but realized that instead of be-

JANUARY 20 - 26, 2014

“There is not one family out there that has not been touched by cancer. ... I found the place where I could make the biggest contribution.”

– Toni Hare, on her role as vice president at CHAMPS Oncology

coming a doctor or nurse, her talents would best be used in health information management.

“There is not one family out there that has not been touched by cancer,” she said. By devoting herself to a career that involved the use of data analysis to improve the prospects of people battling cancer, “I found the place where I could make the biggest contribution.”

William D. Keckan, executive director of system integration for the Cleveland Clinic’s community hospitals and family health centers, which use CHAMPS Oncology’s services, said Ms. Hare is “a very impactful person” in the health care industry in Northeast Ohio and beyond.

For instance, he said CHAMPS Oncology’s analyses have helped the community hospitals and family health centers improve cancer patient navigation, which can be confusing in large hospital systems. Improvements in navigation — on issues including finances, transportation and patients’ fears — ease the burden on patients during a particularly difficult time in their lives.

“We have a lot of data, but Toni takes us to how we can use it to improve patient care,” Mr. Keckan said. “She really has her eye on the future of where cancer care is going.”

As a result of her experience in the field, Ms. Hare has been a featured speaker at conferences of the National Cancer Registrars Association, the Association of Community Cancer Centers and the Commission on Cancer.

Among whitepapers she has written or co-authored are “How Health Reform is Transforming U.S. Healthcare: Implications for Cancer Care Providers” and “Multiple Program Accreditations: Mastering the Juggling Act, Oncology Issues.”

Ms. Hare said health care reform underscores the importance of CHAMPS Oncology’s work.

“Quality data that’s actionable, in a timely manner, makes providers more efficient, which is what reform is trying to do and ultimately benefits the patient,” she said. — Scott Suttell

Chand continued from PAGE 13

Where futures begin

SM

The hospital dedicated more staff time to the clinic, but some of the reduction is likely due to the efforts of Dr. Chand, who also spent two years as a health care consultant for McKinsey & Co. He prompted the clinic to start a “daily huddle” where they work together to fill empty appointment slots, and he reorganized the way the clinic gathers patient information so doctors can focus more on treating patients.

DR. ROBIN NORRIS Director, Pediatric Developmental Therapeutics Program UH Rainbow Babies & Children’s Hospital

I

n just 16 months at UH Rainbow Babies & Children’s Hospital, Dr. Robin Norris has helped secure two prestigious grants for the institution’s pediatric cancer research.

The first was a $500,000 award from The St. Baldrick’s Foundation, a Monrovia, Calif.-based nonprofit that has raised more than $140 million to fund cancer research. The second was a 10-year, $1.2 million grant from Alex’s Lemonade Stand Foundation, a Wynnewood, Pa.based nonprofit named after Alexandra Scott, who in 2004 died at age 8 after battling cancer.

“She’s terrific,” said Dr. John Letterio, who leads the Division of Pediatric Hematology/Oncology at University Hospitals Case Medical Center and Rainbow, of Dr. Norris.

“She’s only been here a year, and she’s already captured two very prestigious awards.”

Dr. Letterio said the $500,000 grant went to UH, and the $1.2 million award went to the Case Comprehensive Cancer Center.

The funds will help Dr. Norris and her colleagues in their daily quest to identify safer, more effective treatments for children, adolescents and young adults with cancer.

Dr. Norris said she is a “translational researcher.” She works in the lab, but sees patients individually and in clinical trials conducted with the help of UH’s Seidman Cancer Center.

“What is unique about Rainbow is there is a strong relationship with the adult program at Seidman,” she said.

The New Jersey native was recruited to Rainbow after a sevenyear stint at Children’s Hospital of Philadelphia. Dr. Norris was put in charge of a program that is searching for effective cancer therapies that have “less toxic effects” on children.

“That’s what’s most rewarding for me,” Dr. Norris said of working with patients and their families during clinical trials and other treatments. “That pushes me to find more drugs (that work). I don’t want to ever be in a meeting with a family and say, ‘I don’t have any options to cure your cancer.’ That is the worst conversation you can have.”

Dr. Norris and her husband, Dr. Peter de Blank, a pediatric neurooncologist with whom she “shares a wall” at Rainbow, have two daughters — Casey, 5, and Reed, 3.

— Kevin Kleps

Grace Wakulchik, chief operating officer at Akron Children’s, described the Northeast Ohio native as a great listener and a team player. He’s also driven and disciplined, she said, noting that he eats right and is a fan of CrossFit workouts.

As the only doctor within the Center for Operations Excellence, he’s done a lot to get the hospital’s physicians focused on process improvement, Ms. Wakulchik said.

“He has shown the organization that process improvement is not just for managers and administrators,” she said. — Chuck Soder

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WWW.CRAINSCLEVELAND.COM

CRAIN’S CLEVELAND BUSINESS

17

LARGEST ARCHITECTURAL FIRMS RANKED BY LOCAL REGISTERED ARCHITECTS

Name of firm Address Rank Phone/Website

Local registered architects 01-1-2014

01-1-2013

Total staff

Local office revenue (millions) 2013

2012

Major current projects

Top local executive Title

Cite de Democracie, Libreville, Gabon, Africa; FutureGen Visitor, Research, and Training Center; Cleveland Clinic Avon Medical Center; Pennsylvania Academy of the Fine Arts; Renwick Gallery, Smithsonian Institution

Paul E. Westlake Jr. managing principal

1

Westlake Reed Leskosky 1422 Euclid Ave., Suite 300, PlayhouseSquare, Cleveland 44115 (216) 522-1350/www.wrldesign.com

46

46

140

NA

NA

2

GPD Group 520 S. Main St., Suite 2531, Akron 44311 (800) 955-4731/www.gpdgroup.com

34

24

418

$69.6

$53.3

Cuyahoga County Library, South Euclid Library; Akron Firestone High School; Strongsville City Schools; McDonalds; YUM Brands; Jo-Ann Fabric and Craft Stores; City Of Akron Water Distribution Building

Darrin Kotecki president

3

Herschman Architects Inc. 25001 Emery Road, Suite 400, Cleveland 44128 (216) 223-3200/www.herschmanarchitects.com

25

22

56

$11.0

$9.5

National retailers-Dick's Sporting Goods; HH Gregg; Z Gallerie; Fred Meyer Jewelers; Jo-Ann; Staples. Shopping centers in Southlake, Texas; Bismarck, N.D.; Williamsburg, Va.; Westfield, Ind.; Indian Wells, Calif. Rescue Village

Mike Crislip president

4

KA Inc. Architecture 1468 W. Ninth St., Suite 600, Cleveland 44113 (216) 781-9144/www.kainc.com

24

22

48

NA

$10.0

The Quad, St. Charles, Ill.; Knollwood Mall, St. Louis Park, Minn.; Macy’s G. Burk Department Stores; Horseshoe Casino, Baltimore, Md.; Liberty Center, Liberty John president Township; Eaton House, Dublin, Ireland; Johnson Court, Cleveland

5

Perspectus Architecture 13212 Shaker Square, Suite 204, Cleveland 44120 (216) 752-1800/www.perspectusarch.com

21

16

36

NA

NA

5

Vocon 3142 Prospect Ave., Cleveland 44115 (216) 588-0800/www.vocon.com

21

18

130

$28.5

$18.5

KeyBank; Omnova; PricewaterhouseCoopers; Collection Auto Group; Cleveland Deborah V. Donley Clinic; Goodyear Tire & Rubber Co. principal

7

URS Corp.

1375 Euclid Ave., Suite 600, Cleveland 44115 (216) 622-2400/www.urscorp.com

20

22

236

$47.6

$56.0

Cuyahoga County; U.S. Coast Guard, Va.; Wylie, Columbus; Boeing; Care Alliance

Dana S. Mitchell, vice president, Cleveland/Akron office manager

8

Domokur Architects 4651 Medina Road, Akron 44321 (330) 666-7878/www.domokur.com

18

15

38

$6.6

$5.4

KSU Tri towers; BGSU; Ridgecrest; J.M. Smucker Co.; FirstMerit; Forest Preserve District of Cook County

Michael Domokur owner

8

ThenDesign Architecture (TDA) 4135 Erie St., Willoughby 44094 (440) 269-2266/www.thendesign.com

18

17

38

NA

NA

Lakeland Community College science wing; University of Notre Dame Stinson Field; Brooklyn City Schools; Thiel College; Max Hayes High School; Beacon Health; Brokaw Advertising; Cleveland State University STEM laboratories

Robert A. Fiala managing partner

10

Bostwick Design Partnership 2729 Prospect Ave., Cleveland 44115 (216) 621-7900/www.bostwickdesign.com

17

16

40

$7.5

$5.8

Cleveland Clinic; Parkersburg, W. Va. public library; Penn State Erie; UPMC Hamot; CWRU; Porter Wright; BGSU; Erie Insurance; Saint Vincent Health System; Cleveland Public Library; KSU; CSU; Baldwin Wallace University

Robert Lewis Bostwick president, director of design

11

C.C. Hodgson Architectural Group 23240 Chagrin Blvd., Suite 350, Cleveland 44122 (216) 593-0057/www.ccharch.com

16

12

48

NA

NA

Weils Memory Support; Catholic Health CCRC; Baptist Life Alexandria CCRC; Pineapple House, Fla.; Abbey Delray South Rehab Center, Fla.; Montefiore Hospice; Montgomery Place, Chicago; Veterans Affairs Martinsburg, W. Va.

Cornelia C. Hodgson president

11

Hasenstab Architects Inc. 190 N. Union St., Suite 400, Akron 44304 (330) 434-4464/www.hasenstabinc.com

16

17

35

$5.2

$7.4

Akron Children's Hospital Critical Care Tower; John Carroll University Murphy Hall Dormitory; Ohio MHAS campus expansion; ARDL new office and compounding facility

Dennis Check president

13

Bialosky + Partners Architects LLC 2775 S. Moreland Blvd., Cleveland 44120 (216) 752-8750/www.bialosky.com

15

15

34

NA

NA

Crocker Park, Phase III; Schofield Building renovation; Parkwood corporate headquarters; Intesa at University Circle; Portage Crossing, Cuyahoga Falls; 401 Lofts student housing-Akron; Ursuline College-CCHA

Jack A. Bialosky Jr. senior principal

13

Dorsky + Yue International 23240 Chagrin Blvd., Suite 325, Cleveland 44122 (216) 468-1850/www.dorskyyue.com

15

13

56

NA

NA

Crocker Tower Fla.; Easton Center Ill.; Shops at Nanuet; Mixed-use resort William Dorsky complex, Azerbaijan; MetPark III, Va.; Seasons Town Center, Canada; Palisades at Crossgates; Medical/Commercial District, Turkey; Tanger Outlets managing principal

15

Richard L. Bowen + Associates Inc. 13000 Shaker Blvd., Cleveland 44120 (216) 491-9300/www.rlba.com

14

14

84

NA

NA

KSU College of Architecture; Vitamix headquarters; Hard Rock Rocksino; COTA transit facilities; 3rd District Police; Kent Courthouse; The Shoppes at Parma; Tri-C police and fire; Walsh Univ. Ctr. for Transformative Learning

Richard L. Bowen president

15

Stantec Architecture 3700 Park East Drive, Suite 200, Beachwood 44122 (216) 454-2150/www.stantec.com

14

14

25

$7.1

$6.5

University of Houston science building; Cleveland Clinic Taussig Cancer Center; Cleveland Institute of Art; University of Akron Zook Hall renovation

Michael Reagan, v.p., science and technology; Michael R. Carter, managing principal

17

ADA Architects Inc. 17710 Detroit Ave., Lakewood 44107 (216) 521-5134/www.adaarchitects.cc

13

13

40

NA

NA

National retail - large, medium and small box stores; shopping centers; renovation and adaptive reuse; educational K-12; child care; senior living; supermarkets and office

Martin Strelau, president Kurt Schmitz vice president, director

18

Braun & Steidl Architects Inc. 1041 W. Market St., Akron 44313 (330) 864-7755/www.bsa-net.com

10

10

24

$4.4

$3.4

Akron Control Center, Akron; Greystone Hotel, Akron; The Depot student Charles Louis housing and parking garage, Akron; Student housing, Toledo; Courtyard Hotel, Schreckenberger Orlando; Hyatt House, Raleigh; Residence Inn, Durham N.C. president

18

RDL Architects Inc. 16102 Chagrin Blvd., Suite 200, Shaker Heights 44120 (216) 752-4300/www.rdlarchitects.com

10

9

25

$4.5

$3.5

The Heights at Linden Square; Pinstripes Georgetown; Farrell Homes; Sisson Reserve; Magnolia Glen; Arhaus Furniture; George Street Commons

Ron Lloyd president

20

Richard Fleischman + Partners Architects Inc. 1020 Huron Road, Suite 101, Cleveland 44115 (216) 771-0090/www.studiorfa.com

9

9

22

$2.1

$2.7

J.W. Peck Federal Building, Cincinnati; Northern Kentucky University, Highland Heights, Ky; Cuyahoga County Public Library, Brook Park; Wickliffe Public Library, Wickliffe; Near West Theatre, Cleveland

Richard Fleischman president

21

The Austin Co. 6095 Parkland Blvd., Cleveland 44124 (440) 544-2600/www.theaustin.com

8

8

89

$58.4

$49.0

BASF lab renovation and expansion, Beachwood; Airbus new aircraft assembly Michael G. Pierce plant, Mobile, Ala.; Bimbo Bakeries new bakery, Allentown, Pa. president

21

Holzheimer Bolek + Meehan Architects 1382 W. Ninth St., Suite 300, Cleveland 44113 (216) 421-1100/www.hbmarchitects.com

8

6

16

NA

NA

Library projects in Ohio, Tennessee, Wisconsin, Colorado, Kansas, Virginia, Louisiana, Missouri, Illinois, Texas, Georgia, Pennsylvania. Gilmour Academy Theatre

23

CBLH Design Inc. 7850 Freeway Circle, Cleveland 44130 (440) 243-2000/www.cblhdesign.com

7

8

14

NA

NA

GSA; VA Pittsburgh Healthcare System; CWRU; The Medical Center Co.; Marc B. Bittinger BGSU; MetroHealth; EMH; Mercy Medical Center; Signet Enterprises; The Ohio Michael D. Liezert State University, VMAC Wade Park, Columbus; Dayton and Clarksburg W. Va. principals

23

Herman Gibans Fodor Inc.- Architects 1939 W. 25th St., Suite 300, Cleveland 44113 (216) 696-3460/www.hgfarchitects.com

7

8

19

$2.3

$2.3

Slovene Home renovation, Cleveland; Westerly Apartments renovation, Lakewood; Anna Maria of Aurora, Aurora; Maple Park Place, Maple Heights; Kingsbury Apartments and Townhouses, Cleveland; Walton Retirement Home

James G. Herman president

23

Makovich Pusti Architects Inc. 111 Front St., Berea 44017 (440) 891-8910/www.mparc.com

7

7

12

NA

NA

Cleveland Clinic; University Hospitals; MetroHealth; Robinson Memorial Hospital; Cleveland State University; Cuyahoga Community College; Veterans Administration Cleveland

Ronald J. Makovich president

23

Strollo Architects 20 W. Federal St., Suite 604, Youngstown 44503 (330) 743-1177/www.strolloarchitects.com

7

6

20

$3.7

$3.7

St. Elizabeth Boardman Health Center expansion; Inn at Ironwood

Gregg Strollo, president, principal; Rodney Lamberson, executive vice president, principal

27

Hengst Streff Bajko Architects + Engineers 1250 Old River Road, Suite 201, Cleveland 44113-1243 (216) 586-0229/www.hsbarch.com

6

5

22

$4.2

$3.9

TMW relocation and renovation, Mayfield Heights; Volunteers of America Collinwood - Cleveland; BASF LEED EBOM and renovation, Beachwood

Jim Streff, principal architect, CEO; Peter Kamis, principal, engineering

27

Lesko Associates Inc. 27955 Clemens Road, Suite A, Cleveland 44145 (440) 835-0850/www.lesko-associates.com

6

6

10

$1.6

$1.1

Avon Local Schools, new middle school; Vermilion Local Schools, new W. Blatchford Jr. elementary school, middle/high school renovations; Toronto City Schools, new Robert president middle/high school; Midview Local Schools, new middle school

27

Robert P. Madison International Inc. 2930 Euclid Ave., Cleveland 44115 (216) 861-8195/www.rpmadison.com

6

8

12

$1.2

$1.2

Convention Center Hotel; Upper Chester Housing; CH-UH High School; Cuyahoga County Data Center; CMSD Almira School; APS Seiberling School; St. Agnes Sanctuary Expansion; CMHA

Robert P. Madison chairman, CEO

27

Van Auken Akins Architects LLC 1422 Euclid Ave., Suite 1010, Cleveland 44115 (216) 241-2220/www.vaakins.com

6

7

23

NA

$4.0

NA

Jill V. Akins principal

Health care (hospitals, medical office buildings, surgery centers, laboratories, physician offices and rehab/fitness centers); government; higher education; senior living; retail; sports and recreation facilities; country clubs

Source: Information is supplied by the companies unless footnoted. Crain's Cleveland Business does not independently verify the information and there is no guarantee these listings are complete or accurate.

Lawrence Fischer William Ayars managing principals

Dan Meehan, Peter Bolek, David Holzheimer, principals

RESEARCHED BY Deborah W. Hillyer

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JANUARY 20 - 26, 2014

UH: System’s accountable care service line is one of nation’s largest continued from PAGE 1

Differing philosophies

They’re not necessarily knocking on doors, begging struggling hospitals to come on board.

“Where there are opportunities for growth and improvement and where there are opportunities for us to provide world-class care close to home, we will do that,” University Hospitals CEO Tom Zenty said in an interview last Zenty week with Crain’s.

Asked whether University Hospitals had other targets in mind — particularly Akron General Health System, which is on the prowl for a suitor — Mr. Zenty was less than forthcoming, noting, “If we do, we’ll be sure to call you.”

Still, industry observers say it wouldn’t be a stretch for UH to build itself into a hearty regional health system, especially as the rival and much-larger Cleveland Clinic eyes opportunities beyond Northeast Ohio and the state.

UH officials don’t dispel the notion that the health system won’t bypass chances to grow via acquisition, as it has in the last year.

“You don’t want to miss when you have those opportunities,” said Dr. Eric Bieber, who oversees University Hospitals’ western outposts and serves as president of its accountable care organization. “We absolutely believe we’ll be able to do all the things we need to do to make these (hospitals) valuable parts of University Hospitals.”

When Mr. Zenty took over for Farah Walters as University Hospitals’ chief in 2003, the health system was predominantly a player on Cleveland’s East Side. At the time, its annual operating revenue was $1.6 billion — about half of what it is now.

In the decade under Mr. Zenty, the health system has become a fundraising juggernaut that’s now in the midst of a $1.5 billion fundraising effort, which so far has brought in $1.12 billion.University Hospitals’ geographic reach grew considerably on the heels of a $1.2 billion construction initiative that began in 2005 and was completed in 2011. It added a bevy of new facilities to the system’s portfolio, including the $298 million Ahuja Medical Center in Beachwood and the $260 million Seidman Cancer Center in Cleveland.

UH’s recent string of takeovers also will add significantly to the health system’s market share in a relatively short period of time and give it more leverage in negotiating contracts with insurance companies.

“I think UH continues on a strategy of wanting to be more of a regional player,” said Bill Ryan, president of the Center for Health Affairs, an advocacy group for local hospitals.

“When I first got here 12 years ago, UH was largely an East Side hospital system,” Mr. Ryan said.

“Part of Tom’s vision has been to make it a real regional system.”

The Cleveland Clinic, an operation with about $6 billion in annual operating now, went on a similar

buying spree of Northeast Ohio community hospitals in the 1990s and early 2000s. In the last few years, though, the Clinic has preferred to extend its reach in other ways, particularly through affiliations and consulting agreements — arrangements that inherently carry less risk than scooping up cashstrapped hospitals.

“The Clinic is basically saying, ‘You throw out the bucks, and we’ll give you the intellectual capital,’” said Tom Campanella, director of Baldwin Wallace University’s health care MBA program. “That’s not a bad deal. That strategy has some great potential for great returns.”

Still, the Clinic appeared to be warming to the idea of buying another local hospital. It had planned through a joint venture with Community Health Systems, a national for-profit hospital operator based in Tennessee, to acquire Akron General. However, CHS and the Clinic couldn’t agree how to structure the deal, and Akron General decided to look for another suitor.

Too much, too fast?

Health care experts said University Hospitals is exposing itself to moderate risk by growing so big, so quickly, particularly by taking on money-losing hospitals. Robinson Memorial, for one, had a $10.2 million operating loss — a negative 8.1% operating margin — for the first 11 months of 2013, according to a December report from Moody’s Investors Service.

“The stronger the hospital and the better they’re doing, there’s less risk involved,” Mr. Campanella said.

However, Mr. Zenty argued that 25% of hospitals nationwide lose money on their operations. He already sees ways UH can help Robinson reduce costs, especially through sharing administrative functions and group purchasing.

“It’s not uncommon for hospitals in today’s environment to be challenged economically,” Mr. Zenty said. “Based on what we saw in the (request for proposal for suitors) from Robinson, we can do some things to immediately to help their financial situation.”

Despite its ambitious building projects and appetite for community hospitals, Mr. Zenty said University Hospitals is in a comfortable position financially. He said the health system has been able to avoid knee-jerk budget cuts and widespread layoffs because of its ability to steadily trim its spending.

Over the last three years, UH cut $180 million in expenses, Mr. Zenty said. By contrast, the Clinic in September announced it would cut $330 million from its budget over the next year — a move that included 3,000 early retirement offers and could warrant layoffs.

Acting on accountable care University Hospitals has been especially aggressive with investments in its accountable care organization service line. ACOs are a facet of health care reform designed to band together medical providers, such as primary care doctors and specialists, and to reward them with financial incentives for providing quality care for a defined group of people at a con-

trolled cost.

University Hospitals’ ACO service line, which is among the nation’s largest, continues to grow and now includes more than 170,000 self-insured, commercially insured, Medicare and Medicaid members and beneficiaries. The health system recently inked deals with Cigna and UnitedHealthcare to build ACOs for their members, which Mr. Zenty cites as validation of University Hospitals’ early ACO efforts.

Other hospital systems, such as the Clinic, have approached the ACO movement more cautiously. For instance, the Clinic declined to participate in the Medicare Shared Savings program, which is perhaps the most well-known ACO. Instead, the health system rolled out miniature versions of ACOs and population management programs at a handful of its primary care locations.

“ACOs require an investment,” said Allan Baumgarten, a Minnesotabased health care consultant who studies Ohio’s health care industry.

“It requires changing practice by your providers, investments in health IT to track what your providers are doing. They are taking a risk.”

University Hospitals agrees there is some risk to jumping so early into ACOs and that there will be some learning curves, but the health system believes it made the right call.

“We think we read the tea leaves correctly,” Dr. Bieber said. “We see folks who really want to work with us and partner with us on this.

We’re not turning a light switch on.

This is a long journey of delivering care differently.”

■

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THEINSIDER

THEWEEK JANUARY 13 – 19 The big story: University Hospitals plans to roll Robinson Memorial Hospital, a 117-bed hospital in Ravenna, into its growing enterprise.

If the deal goes through later this year, it would be the third hospital UH will have added to its portfolio in recent months. In late December, the health system finalized mergers with Parma Community General Hospital and EMH Healthcare in Elyria. Separately, UH said it plans to establish a new health care center in Fairlawn in 35,000 square feet of office space it has leased at the 3800 Embassy Building. See related story, Page One. She’s the boss: The Cleveland office of Ernst & Young LLP will welcome a new leader come July 1. Julie Boland, who joined the Big Four accounting firm in 2010 and has more than 26 years of financial and business management experience, will become managing partner of the local office, succeeding Lee Thomas, a 38-year veteran of the firm. The firm counts 1,300 professionals in the region. Ms. Boland currently serves as the East Central Region’s energy market segment leader.

Fingers crossed: The Greater Cleveland Partnership will ask the Kasich administration and the General Assembly to come up with $20.3 million to help finance $210 million in regional development. Several projects GCP hopes will be included in the state’s biennial capital spending budget are designed to enhance public use of the Lake Erie and Cuyahoga River waterfronts. At the top of the regional chamber of commerce’s list for inclusion in the capital budget is $7 million for a long-sought pedestrian bridge to connect the area of the new Cleveland Convention Center to the lakefront.

REPORTERS’ NOTEBOOK BEHIND THE NEWS WITH CRAIN’S WRITERS

Venturing jointly isn’t on the horizon ■ The Cleveland Clinic’s partnership with Community Health Systems, a large forprofit hospital operator based in Tennessee, hasn’t completely unwound after the two couldn’t come to terms on a deal to jointly acquire Akron General Health System — though it doesn’t seem they’ll be chasing down any acquisitions together anytime soon.

In a statement to Crain’s, CHS spokeswoman Tomi Galin said the two health systems would continue to collaborate on clinical programs. They initially are focusing on cardiovascular services.

However, the prospect of trying to buy a hospital together seems remote for now.

“At this time, CHS and the Cleveland Clinic are not planning to pursue any joint venture acquisitions,” Ms. Galin said in an email.

CHS and the Clinic announced their “strategic alliance” last March, with Clinic CEO Dr. Toby Cosgrove saying at the time the organizations would share clinical and operational expertise in Cosgrove order to improve care and reduce costs. The relationship allows the Clinic to extend its reach beyond its Northeast Ohio home without investing millions to acquire existing enterprises or building new facilities.

Now that talks with the Clinic-CHS com-

MILESTONE

town Cleveland, which housed the long-gone but once famous Pat Joyce’s Tavern, may return to its roots primarily as a parking garage, but with a new twist: apartment lofts in the place of office space on its top floor. Building owner Jim Breen plans to transform the empty fourth and fifth floors from office/storage space to parking.

The plan for the sixth-floor living space is driven by the presence of a tall ceiling, more than 19 feet above the floor. Mr. Breen envisions 17 suites on the top floor.

$2.5 million into Segmint, an Akron company that makes software designed to help marketers target individuals. The company raised the money from a total of 50 investors, according to a document Segmint filed with the U.S. Securities and Exchange Commission. The company uses data to analyze the products and services consumers might want to buy.

Seeing the light: PlayhouseSquare Foundation on May 2 will unveil and light the “GE Chandelier,” which it says will be the world’s largest, permanent outdoor chandelier. The 20foot-tall chandelier produced by GE Lighting will be the most unique element of the PlayhouseSquare neighborhood transformation plan and will grace the intersection of Euclid Avenue and East 14th Street.

This and that: Cleveland Botanical Garden set an all-time attendance record with 188,669 people visiting in 2013 — a 17% increase over the previous year’s numbers. This is the garden’s sixth straight year of attendance increases. In 2012, the garden attracted about 160,000 people. … Petco CEO Jim Myers and his wife, Josie, donated $1 million to John Carroll University for scholarships. Mr. Myers graduated from John Carroll in 1980 with a bachelor’s degree in accounting. He now serves on the university’s board of directors.

HealthSpan connection proves healthy for Ahuja ■ Late last year, University Hospitals became the surgery and acute-care provider for 80,000 members of HealthSpan, a new nonprofit HMO that comprises Kaiser Permanente’s former Ohio operations. So far, the deal has proven fruitful for University Hospitals’ 3-year-old crown jewel, the $298 million Ahuja Medical Center in Beachwood.

Last week, University Hospitals CEO Tom Zenty said Ahuja was at full capacity.

“The demand for patients in that service area has exceeded our expectations from a business planning standpoint,” Mr. Zenty said.

Ahuja now serves as HealthSpan’s primary community hospital, with UH Case Medical Center taking on the most complex cases. When Kaiser was still in business, the Cleveland Clinic served as the insurer’s health care provider for acute care.

HealthSpan, a subsidiary of Catholic Health Partners in Cincinnati, acquired Kaiser Permanente’s Ohio operations last year.

HealthSpan also bought a 30% stake for about $250 million in Summa Health System in Akron. — Timothy Magaw

The urge to merge

COMPANY: Orban’s Fruit & Flowers, Cleveland OCCASION: Its 100th anniversary The company that is now Orban’s Fruit & Flowers was started in 1914 by Martin and Mary Orban in a small greenhouse at the corner of East 72nd Street and Union Avenue in Cleveland. The business moved in 1921 to its current retail location at 11520 Buckeye Road, in a neighborhood that was home to the largest settlement of ethnic Hungarians outside of Hungary.

As the business grew, Martin and Mary opened a second greenhouse in Medina. After World War II, the couple followed their entrepreneurial spirit and moved to California to grow oranges. They sold the Buckeye Road location to Edith and Ed Wrobel and the Medina location to their nephew, Bill Orban.

As local greenhouses found it harder to compete with flowers flown in from California, Bill Orban closed the Medina greenhouse and moved his growing operation to Bradenton, Fla., where Orban’s nursery today covers 16 acres and claims to be the largest grower and supplier of Poinsettia plants in the state.

In 1970, the Wrobels’ son Edward joined the business, where today he serves as the company’s president. “It is our sincere hope that Orban’s will be here to serve them for the next 100 years,” Mr. Wrobel said.

Akron appraiser opens Cleveland outpost ■ Gary Barker, a commercial appraiser, said he is taking on what he called “the Akron thing” directly and commuting to downtown Cleveland from his home in Green to do so. He opened a downtown Cleveland office at the Leader Building Jan. 4 in order to compete for more business in Cleveland.

Mr. Barker, senior managing director and a founding principal of the Valbridge Property Advisors appraisal firm, said he has done work for Cleveland-based clients for years and frequently ran into the question from prospective clients, “Why are we having someone from Akron do this?” About 30% of his firm’s work is from the Cleveland Metropolitan Statistical Area and 50% in the Akron-Portage MSA, he said.

However, the firm is not giving up its Akron roots. To add the new office, Mr. Barker assigned himself to Cleveland while his business partner Michael Flak opened a new office in the Mitchell Building, 1655 W. Market Ave., Akron. In the process, they exited larger offices in Akron.

Adding the Cleveland office will make it easier to recruit another associate for the firm if things go as planned, Mr. Barker said.

He said the commercial market is improving “to a trickle” compared to the flood of business before the 2008 financial crisis.

Messrs. Barker and Flak rolled their prior firm, Akron Appraisal Group, into Naples, Fla.-based Valbridge last March when 60 firms across the country combined to provide nationwide coverage for valuation services. — Stan Bullard

BEST OF THE BLOGS Excerpts from recent blog entries on CrainsCleveland.com.

Lincoln lofts: The Lincoln Building in down-

Market Segmint: Investors poured another

bination have ceased, Akron General is hunting for a new partner.

Health care observers said it is possible the Clinic or CHS could make a move for the health system independent of the other. — Timothy Magaw

■ There were 88 law firm mergers and acquisitions announced in the United States in 2013, up nearly 50% from 60 deals in 2012, according to data compiled by Altman Weil MergerLine.

The 2013 figure, which included a deal announced last Nov. 22 between BakerHostetler of Cleveland and Woodcock Washburn of Philadelphia, was the highest number of law firm combinations recorded in the seven years that Altman Weil MergerLine has been compiling data.

In a statement, Altman Weil principal Ward Bower said the surge in 2013 numbers “was driven by a boom in acquisitions of small law firms. These kinds of deals are smart, low-risk moves to enter new markets and acquire new clients, and we expect the trend to continue in 2014.”

Firms with 20 or fewer lawyers accounted for 82% of last year’s acquisitions, according to Altman Weil.

Most of the larger 2013 deals involved a bigger firm that was at least five times the size of the smaller firm it acquired; such was the case with BakerHostetler, which has more than 800 attorneys, and Woodcock Washburn, which had about 70.

“Most law firm combinations these days are really acquisitions, not mergers,” Mr. Bower said. “The complexity of a true merger of equals is exponentially greater.

There are any number of potential pitfalls on the way to the altar.”

Draft day ■ Only one Ohio institution made the cut of Draft magazine’s list of America’s 100 best beer bars for 2014, but it’s one local beer lovers know well.

Nano Brew, at 1859 W. 25th St. in Cleve-

land, upholds the drinking honor of the Buckeye State.

The Akron Beacon Journal’s Beer Blog noted that in 2013, the Buckeye Beer Engine in Lakewood, Bier Markt in Cleveland and La Cave du Vin in Cleveland Heights all made the Draft list.

Walk this way ■ Cleveland is making big strides as a city for walkers.

Governing magazine ran a long analysis of how “many localities across the country are continuing to push policies and planning initiatives aimed at making communities more walkable.” Recent census figures “depict a wide variation in commuting habits among the nation’s urban centers, showing some have done much more than others,” according to the story.

The magazine listed the 10 cities with the highest rates of people who walk to work — a list dominated by cities such as top-ranked Cambridge, Mass., with short city blocks, dense urban development, and/or nearby college campuses. It also included the 10 cities that posted the largest increases in the share of walk commuters between 2007 and 2012.

Cleveland ranked fifth on that list. In 2012, 5.6% of Clevelanders walked to work, up 1.8 percentage points from 3.8% in 2007. Only Fayetteville, N.C. (a gain of 3.7 percentage points), Portland, Ore. (+2.6), Boston (+2.1) and Atlanta (+2.1) showed greater gains.

The city has a long way to go to crack the list of places with the highest rates of people who walk to work. The No. 10 city on that list, Providence, R.I., had a walk-to-work rate of 10.8%.

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