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Bahrain

August 2010 Issue 01

CNBS-C 12034340

Islamic FINANCE Bahrain on HIGHER GROUND

10 new economic plan for 2011 Islamic Financial Services Board Summit 2010 “Global 35 7th Financial Architecture: Challenges for Islamic Finance” Enters World’s Top 30 in WEF 08 Bahrain Technology Rankings


Bahrain

Islamic FINANCE >> contents

fall 2009 Bahrain on the state of health care in Northwest Indiana HIGHER GROUND

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BUSINESS ADVISORY BOARD Dan Nita, Horseshoe Casino PUBLISHER NOTES by Publisher Bill Masterson Jr.

BY THE NUMBERS Statistics Concerning the Region’s Economy COVER STORY The State of Health Care in Northwest Indiana 10 Three Hospital CEOs on the State of Health Care in NWI by Sarah Tompkins 12 Physicians’ Perspectives on Universal Health Care by Lu Ann Franklin 14 Health Care Communications Specialists Balance Patient Protection and Community Concern by Lu Ann Franklin 16 H1N1 - The View on the Ground by Sarah Tompkins

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SALUTE Promotions and Accomplishments of Local Business People

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OUR TURN The Case for Tort Reform by W. Patrick Downes, Nicholas K. Lagina and Carrie L. Flores

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HELPING HAND Innovative Marketing Helps Fund Health-Related Research by Karen M. Lauerman

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NEW FUTURES A New Blueprint for Health and Treatment in the U.S. by Daniel Dumezich

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MY BUSINESS Simulators in Healthcare Education Ease Anxiety for Students by Bill Thon

BIZ BUZZ Updates on Area Businesses cover photograph by ROBERT WRAY

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>> publisher’s letter

BUSINESS

August 2010 Issue 01

S E RV I N G N O RT H W E S T I N D I A N A & C H I C AG O L A N D

Working as teams to take care of others who can’t take care of themselves

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just left a summit meeting of Lake County hospitals CEOs where Ian McFadden of Methodist Hospitals, Donald Fesko of Community Hospital and Gene Diamond of Sisters of St. Francis Health Services, Inc., had a real world discussion about not only what’s happening on the front lines right now, but also about their genuine concerns regarding what the future of our system in Northwest Indiana looks like to them. These professionals may be competitors but it certainly didn’t seem that way from the conversation. There are plenty of patients and future clients out there needing quality care; the challenges and opportunities are getting it right 24/7. And right means many things to different people. Being able to keep dozens of trained specialists available in areas where the needs are great, being able to get the full benefit of technological advancements and having the educational system’s support to help fill the pipeline with qualified caregivers now and in the future. The big takeaway from our meeting is the same as the theme of this issue: there are no small issues in health care. Our discussion began with a shortage of H1N1 vaccine (the boat has sailed) and concerns about a shortage of Tamiflu for treatment of an ongoing epidemic. We moved quickly into the proactivity and collegial planning surrounding standardization of codes and records to keep patients safe. This includes, of course, patient involvement in asking questions and an active approach to helping care for themselves. But the most intense area of discussion was the population shift and the potential shortage of physicians, nurses and other highly skilled and professional health care providers. Yes, it’s true, as Gene Diamond says, that the level and quality of treatment, facilities and technology is excellent and unprecedented at this time, but the future from some logical points of view is still frightening. I was somewhat reassured about our position in Northwest Indiana in relation to our health care institutions. Here in the Region we have grown in innovative ways, especially in the last 10 years, and we have been quite effective with creative approaches to complex questions. It is people like these CEOs and their very dedicated staffs which keep us moving forward, because despite difficulties and challenges, they care about us and each other. We will be meeting with the CEOs in Porter and LaPorte County in first quarter 2010. Until then,

FALL 2009

VOLUME 6 ISSUE 5 Publisher Bill Masterson Jr. Founding Editor Bill Nangle

Associate Publisher/Editor Pat Colander Director of Product Development Chris Loretto Associate Editors Crista Zivanovic Julia Perla Matt Saltanovitz Creative Director Joe Durk Art Director Matt Huss Contributing Writers Heather Augustyn Ed Charbonneau Wil Davis Dan Dumezich Lu Ann Franklin Rick Mazer Bill Thon Contributing Photographers Robert Wray Natalie Battaglia Advertising Director Lisa M. Daugherty Online Account Executive Craig Chism Advertising Managers Deb Anselm Frank Perea Jeffrey Precourt BUSINESS ADVISORY BOARD Ron Bush DRD Wil Davis Gary Jet Center Dan Dumezich Mayer, Brown, Rowe and Maw LLP Vince Galbiati Northwest Indiana Forum Barb Greene Franciscan Physician Hospital Karen M. Lauerman Northwest Indiana Forum Terri G. Martin Gary Community Health Foundation Inc. Dan Nita Horseshoe Casino Stephan K. Munsey Family Christian Center

BIL L M A STE RSO N J R. PU B L I S HER , B U S INES S WE WANT YOUR FEEDBACK. E-mail me at bill.masterson@nwitimes.com or write to me at: BusINess Magazine, The Times, 601 W. 45th Ave., Munster, IN 46321

Colleen Reilly NiSource Bert Scott Indiana University Northwest Bill Thon Ivy Tech State College Copyright, Northwest Indiana/Chicagoland BusINess, 2009. All rights reserved. Reproduction or use of editorial or graphic content without permission is prohibited.

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Islamic FINANCE 7th Islamic Financial Services Board Summit 2010 “Global Financial Architecture: Challenges for Islamic Finance”

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he theme of the 7th Annual Summit is “Global Financial Architecture: Challenges for Islamic Finance”. This theme is particularly timely. As the dust settles after the financial crisis it has become increasingly clear that there will be no return to business as usual for the financial industry. In the advanced economies there is a determination to make sure that there is no risk of a repeat of the crisis and an acceptance that in practice this means financial institutions will be smaller and less profitable than in the past. Governments, central banks and regulators around the world are now busy constructing a new financial architecture. New institutions and new regulations are being put in place. The structure of the financial industry itself is open to review, with some distinguished people questioning whether it is desirable to allow the combination of commercial and investment banking. Some fundamental questions are being asked about the type of financial system that can best serve the economic needs of society. The UK’’s Lord Turner has even questioned whether the activities of some investment banks have been, in his words, “socially useless”. The Islamic financial industry cannot stand apart from these developments. The fundamental question that the industry now needs to ask is: to what extent has the global financial crisis been a game changer for Islamic finance as well as for conventional finance? The issue is not whether the Islamic financial industry needs to learn lessons from the crisis, but what lessons it should learn and how it needs to adapt in the light of lessons learned from the crisis. We are all familiar with the rapid growth of the Islamic financial industry in the years before the crisis. In Bahrain we saw the total assets of the Islamic banks jump from US$2 billion in the year 2000 to US$26 billion by the end of the decade. The market share of Islamic banks increased from 1.8% of total banking assets to over 11% in June 2009. The story of the Sharia compliant insurance and

of strong growth. This pattern was repeated other financial centres with a significant presence of Islamic financial institutions. In the early days of the crisis there was a widespread assumption that Islamic finance would continue this strong growth into the future. The view of many people in the industry was that it was not at risk from the crisis. The prohibitions on riba and speculation had kept Islamic banks free of the types of structured financial instruments which soon became known as “toxic assets”. The interest shown in Islamic finance by conventional institutions that were eager to learn lessons from the crisis added to the feeling that the Sharia-compliant industry would emerge stronger as the interestbased industry stumbled. These recent developments are what make the sessions that are planned for the next two days so very timely. I hope that the panels will be able to draw lessons from the crisis for Islamic finance and that they will be able to assess the impact of the new global architecture on the industry. There can be little doubt that new regulatory policies on such matters as capital adequacy and liquidity will have major implications for the standards that are applied to the Islamic financial industry. One of the most important lessons of the crisis has been the need for good liquidity risk management by financial institutions. Given the problem of liquidity risk management is one that has confronted Islamic financial institutions for a long time, the events of the past two years should give a new sense of urgency to our attempts to find a solution. Corporate governance is another issue that I believe is very important. Although none of the panels at this Summit is specifically devoted to this subject it has been a focus of the IFSB’’s work in the past, and I am sure it will be a recurring theme during the next two days. As I have said in the past, corporate governance is especially important for banks because they have a special task - that of looking after other people’’s money. This places a heavy responsibility on their boards of directors and senior management. In the case of Islamic financial institutions the responsibility is greater still since they must take into account the interests of investment account holders, who bear many of the risks of shareholders, but without

The UK’’s Lord Turner has even questioned whether the activities of some investment banks have been, in his words, “socially useless”. asset management sectors was a similar one

the same control rights that a shareholder would enjoy. This means that ensuring high standards of corporate governance is even more important for Islamic financial institutions than for their conventional peers and it is perhaps the single most important lesson that the crisis has for the Islamic financial industry.

BH NEWSBITS The Central Bank of Bahrain (CBB) announces that the monthly issue of the short-term Islamic leasing bonds, Sukuk Al-Ijara, has been oversubscribed by 330%. Subscriptions worth BD 33 million were received for the BD 10 million issue, which carries a maturity of 182 days. The expected return on the issue, which begins on 25 March 2010 and matures on 23 September 2010, is 0.98%. The Sukuk Al-Ijara are issued by the CBB on behalf of the Government of the Kingdom of Bahrain. This is issue No. 55 (BH000A1AQVA5) of the short-term Sukuk Al-Ijara series.


August 2010 Issue 01

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Bahrain

Islamic FINANCE Bahrain Enters World’s Top 30 in WEF Technology Rankings

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ahrain has entered the top 30 economies ranked by the World Economic Forum’s (WEF) Global Information Technology Report, published today. A climb of eight places for the second year running puts the Kingdom 29 of 133 economies worldwide. Bahrain is the highest climber of the Gulf nations in this year’s rankings and over a three year period, having gained 21 places since 2006. Now a close second in the region, the Kingdom’s rise reflects a commitment to ICT as both a sector in its own right and an enabler of continued economic growth, modernisation and competitiveness, according to Kamal Ahmed, Chief Operating Officer of the Bahrain Economic Development Board (EDB). “In Bahrain, we recognise ICT as crucial in ensuring the optimum business environment for international companies looking to locate in the Kingdom to best access the trillion dollar

Gulf market and wider Middle East. It is key in helping to achieve the ambitions of Vision 2030: to drive private sector growth, support further diversification of the economy and ultimately elevate national living standards by creating greater opportunities for Bahrainis,” he said. Published for the ninth consecutive year in cooperation with INSEAD, the report is the world’s most comprehensive and authoritative international assessment of the impact of Information and Communication Technologies (ICT) on the development process and competitiveness of nations. Its Networked Readiness Index (NRI) assesses how prepared countries are to use ICT effectively on three dimensions: 1) general business, regulatory and infrastructure environment for ICT; 2) the readiness of three stakeholder groups – individuals, businesses and governments – to use and benefit from ICT; and 3) their actual

usage of the latest technologies available. The report highlights Bahrain’s ICT and business friendly market environment (15 of 133 economies worldwide); high individual readiness (21); outstanding government readiness (17) and usage (10); and top-class e-government services (8) together with widespread e-participation (11). The findings follow news in January this year that the Kingdom was ranked first in the Gulf and wider Middle East and 13th of 192 countries worldwide by the 2010 United Nations Global e-Government Readiness Survey. Bahrain is one of the Gulf’s technological pioneers. Earlier this year the Kingdom hosted MENA ICT Week, one of the leading ICT events in the region, and highlighted the growing potential for foreign investment in the sector.


August 2010 Issue 01

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Bahrain

Islamic FINANCE

biz buzz >> CROWN POINT

Crown Point’s Ross president of state insurance and advisor group

Community Hospital extends number of private rooms Community Hospital in Munster has added 26 more private patient rooms on the second floor of the West Pavilion that opened July 6 to cardiac patients in need of specialized monitoring. Following the relocation of oncology care in February to the fifth floor with private suites, the second floor has been renovated to accommodate a new cardiovascular-intermediate care unit, called CV-IMCU. The new CV-IMCU incorporates advanced technology to help deliver faster results and better care. Each room is equipped with technology that can detect conditions affecting the heart’s function. Data is displayed on the monitors in the nurses station. A built-in tube system enables staff to send tissue and blood samples to the laboratory for analysis, and also relays medicines from the pharmacy to the nurses station for convenience. The new CV-IMCU floor on 2 West is the third phase of a $10 million expansion project to provide additional private patient rooms at Community Hospital. A $5 million expansion of the hospital Family Birthing Center was completed in September 2008, with all new private room accommodations for moms and their babies. Earlier this year, an Inpatient Oncology unit on the fifth floor and a medical/surgical unit on the sixth floor featuring 52 new private rooms in total opened to patients and their visitors. To date, an estimated 40 new jobs, nursing and support staff, have been created with the opening of the expanded units on the fifth and sixth floors of the hospital. Community Hospital also recently received the 2009-10 Women’s Health Excellence Award from HealthGrades, the nation’s leading independent health care ratings organization, based on a newly released study of patient outcomes. For more information, visit http://www.comhs. org/community/

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>> MERRILLVILLE

Spring Mill receives customer service award Spring Mill Health Campus, 101 West 87th Ave., recently received the President’s Award for Excellence at The Trilogy Health Services Spring Meeting. The award was based on customer satisfaction results from a semi-annual survey that is sent to residents’ family members. Spring Mill Health Campus received recognition for their customer satisfaction scores in staff attitude, quality of nursing care, food quality, activity programming and appearance/ cleanliness. “We are excited and pleased to receive such great recognition,” Executive Director Marnie Davisson said. Spring Mill Health Campus offers a full range of personalized senior living services. For more information, contact Davisson or Amy Nikruto, community service representative at (219) 756-0744 or visit www.trilogyhs.com.

>> MICHIGAN CITY

Vanair Manufacturing acquires Air N Arc Inc. Vanair Manufacturing recently reached an agreement to acquire Air N Arc Inc. Air N Arc operations will relocate to Vanair’s new manufacturing facility in Michigan from its current facility in Hiawatha, Kan. Vanair will maintain the current Air N Arc product line and dealer network. For more information, call (800) 526-8817 or visit www.vanair.com.

photograph by Judy Fidkowski

>> MUNSTER

George G. Ross, of Lakes of the Four Seasons, has been elected to serve as 2009-10 president of the National Association of Insurance and Financial Advisors, Indiana Chapter. Ross was elected in mid-May at the state convention in French Lick and assumed office July 1. Ross, CLU, ChFC, has been with Prudential Financial since 1986. He manages an office on the Crown Point square. Ross has served as president of the group’s local Indiana chapter four times. He is the current chairman of its Make a Dream program. He has been on the state board as trustee and officer for the past seven years. He also is on the Board of Directors of the Greater Crown Point Chamber of Commerce. Founded in 1890 as the National Association of Life Underwriters, NAIFA is composed of nearly 800 state and local associations representing the business interests of 60,000 members nationwide. Members focus their practices on life insurance and annuities, health insurance and employee benefits, and financial advising and investments. For more information, visit www.naifa.org.


by Karen M. Lauerman Northwest Indiana Forum August 2010 Issue 01

Innovative marketing helps fund health-related research

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he healthcare marketplace has become fiercely competitive, with cause, disease and healthrelated organizations battling for attention, assistance and awareness while they work simultaneously to operate and effectively fulfill their missions. Achieving these goals, however, requires ongoing “behind-the-scenes” responsibilities, from differentiating and providing programs and services to generating financial support and building relationships. The list is endless. Corporations are constantly seeking innovative ways to differentiate their products and services in sustainable ways while operating a financially sound organization. Competing globally requires a strong brand, building new and deeper connections with consumers and communities and gaining access to new markets. As a result, there is a growing trend of companies and health-related nonprofits creating a variety of partnerships that advance both the mission of the nonprofit organization and the business purpose of the company. Healthcare is about more than just medicine. It’s about research, advocacy, funding and cures. In today’s healthcare environment, finding partners who understand the synchronicity between business and health related issues is crucial. Corporations and nonprofits do in fact speak different languages, especially when it comes to what the return on investment should be for both parties. A successful working relationship will address goals, priorities and activities. As well as funding the activities, endorsing a key message, or marketing which generate awareness and media visibility for both organizations. Think about Yoplait’s “Save Lids to Save Lives” Campaign in support of the Susan G. Komen for the Cure. Each pink lid that consumers turn in results in 10

cents for the organization. Another national example is the American Heart Association and Subway partnering on Heart walks, Fresh Fit meals for children, and financial support for other activities. Regionally, Sisters of St. Francis Healthcare Services joined with national sponsor Macy’s for the local Go Red for Women Campaign. Horseshoe Casino supports the Alzheimer’s Association where proceeds from the gala are an investment in both discovering treatments and an eventual cure, and will provide support to those faced with the challenges of caring for loved ones with dementia. All illustrate the transformational opportunities that now exist for the organizations involved in the partnership. Key to these relationships is the return on investment. Linking a company and its products to a health issue or cause in order to enhance the corporation’s image while benefiting the cause or organization is at the heart of a sustainable partnership/mission impact. The value can be found in the corporation’s ability to enhance employee and customer recruitment. The cause benefits with enhanced credibility for health education programs, increased activities and potential new partners to join the cause. Healthcare is a promise that patients and their families will be well cared for. Healthcare-related programs and services that empower, support or research what ails them become the causes that require the support of strong corporate allies in the fight. To be successful, you have to think creatively. Whether you are on the corporate or non-profit side of the arrangement, think less about cause-marketing and more about partnering—becoming the partner of your collaborator—and you will have more success.

There is a growing trend of companies and healthrelated nonprofits creating a variety of partnerships

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Bahrain

Islamic FINANCE McLaren Move Reflects Bahrain Track Record as Gateway to Trillion Dollar Gulf

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ews that McLaren Automotive has chosen Bahrain for its regional HQ reflects the Kingdom’s own track record as an international business hub, according to Shaikh Mohammed bin Essa Al Khalifa, Chief Executive of the Bahrain Economic Development Board (EDB). The British high-performance sports car manufacturer announced last week that it will site its head office in Bahrain’s capital, Manama. The competitive cost andease of setting-up business in Bahrain were cited as key factors in the firm’s decision by Middle East, Africa and Asia Pacific regional director Ian Gorsuch. For Shaikh Mohammed, it is further endorsement of the steps taken to create anenvironment conducive to doing business in order to attract foreign economic investment. Shaikh Mohammed said: “McLaren is just one of a growing number of international companies that recognise Bahrain as the

diversification of the economy and ultimately elevate national living standards by creating greater opportunities for Bahrainis. McLaren Automotive has close links with Bahrain; Bahrain Mumtalakat Holding Company has a 50 percent stake in the company and a 42 percent stake in McLaren Group. Like Mumtalakat, ranked the second most transparent sovereign wealth fund in the Middle East and North Africa (MENA) by the independent Sovereign Wealth Fund Institute , Bahrain places a high priority on openness. The Kingdom is ranked the freest economy in the Middle East and 13th in the world by the 2010 Heritage Foundation / Wall Street Journal Index of Economic Freedom. Bahrain has substantial experience in the automotive sector. Last month the Formula One (F1) Gulf Air Bahrain Grand Prix returned to the Kingdom for the seventh consecutive year. The first race of the 60th

Shaikh Mohammed said: “McLaren is just one of a growing number of international companies that recognise Bahrain as the location of choice from which to access the trillion dollar Gulf market and wider Middle East. location of choice from which to access the trillion dollar Gulf market and wider Middle East. In Bahrain, our plan has always been about building sustainable growth through sound andflexible economic policy, a highly educated and skilled national workforce, diversified economy, and tried and tested regulation. In today’s re-set world, our strong track record provides the optimum environment to do business both in and from Bahrain.” The EDB, which has the responsibility for creating the right climate to attract foreign investment, is leading the process of Bahrain’s Vision 2030 under the guidance of His Royal Highness Prince Salman Bin Hamad Al Khalifa, the Crown Prince of Bahrain and Chairman of the EDB. The plans are designed to drive the private sector as an engine for growth, support further

anniversary season of the FIA Formula One World Championship also brought news that CNBC had chosen the Kingdom as its regional editorial hub to cover the Middle East. This followed an announcement by Deloitte earlier this year that it had chosen the Kingdom to host its new Islamic Finance Knowledge Centre (IFKC). The companies join the likes of American Express, BNP Paribas, DHL and Kraft which had already selected Bahrain as a regional bas


August 2010 Issue 01

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Bahrain

Islamic FINANCE ART GRAND PRIX have applied to enter the Formula One World Championship next season. “Yes, we have submitted an application to the FIA to join the F1 World Championship in 2011,” Vasseur was quoted as saying. Meanwhile, Todt, who is also the manager of Ferrari’s Felipe Massa, does not expect any favourable treatment from motor racing’s governing body with regards to their bid, despite the fact that father his father is the FIA chief. “Our dossier needs to be better than any others, because I do not expect any gifts from the FIA, quite the contrary,” Todt was quoted as saying. Todt said that he would like to see ART enter F1 as a French team. He also hopes to have a French driver in the cockpit of one of their cars. “That would be even more enjoyable; and even better with French technical partners as well,” he said. “France has an enormous reservoir of human talent and enterprise at a very high level. There is certainly enough to show the English what we are capable of.”

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he popular motor racing team is partly owned by His Royal Highness Prince Salman bin Hamad Al Khalifa, Crown Prince and Supreme Council for Youth and Sports president. Prince Salman owns ART along with Frenchman Nicolas Todt, who is the son of former Ferrari boss and current International Automobile Federation (FIA) president Jean Todt. ART currently race in F1 feeder series GP2, the lower-rung GP3, and the highly competitive Formula Three Euroseries.

ART team principal FrŽdŽric Vasseur earlier this week confirmed that they had submitted their official application to the FIA. In March, motor racing’s governing body invited possible teams to apply for entry to the 2011 F1 season, and announced that there will be a new selection process following USF1’s inability to make the grid this season despite being given a slot. As well as finding a 13th team, the FIA are also looking for one or more possible ‘reserve’ entrants. The FIA hopes to announce the successful entrant by July.

The grid for the 2011 season will be expanded to 13 teams, while the season calendar will be expanded to 20 rounds following the addition of the inaugural Indian Grand Prix. ART have helped develop the careers of some of F1’s star drivers on the current grid, including McLaren’s Lewis Hamilton, Mercedes GP’s Nico Rosberg, Toro Rosso’s Sebastien Buemi, Williams F1’s Nico Hulkenberg, and Virgin Racing’s Lucas di Grassi.


August 2010 Issue 01

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Bahrain Islamic FInance Magazine  

Islamic FInance Magazine