A New Electricity Alliance: Manufacturer & Business Association, EEA-PA and NRG Business Solutions
Since its inception, Employers’ Energy Alliance of Pennsylvania (EEA-PA) has supported our members’ energy needs. The latest example comes with our new alliance with NRG Business Solutions. Many of our members wanted a variety of energy services to choose from that we alone couldn’t provide. An alliance with NRG Business Solutions allows us to provide this range – from fully fixed to fully variable and everything in between. The choice is yours and we’re here to help you. You will also receive the same level of service you’ve come to expect from the Manufacturer & Business Association (MBA) and EEA-PA while significantly expanding our experience and expertise in servicing your electricity needs with NRG Business Solutions. Trust and expertise … a combination you can continue to count on.
Contact us today to learn how we can help meet your electricity needs.
Chuck Jenkins 814.833.3200 cjenkins@mbausa.org
NRG is a federally registered trademark of NRG Energy Inc. “Reliant” and “Reliant Energy” are federally registered trademarks of Reliant Energy Retail Holdings, LLC. (DE No. 7894, MD No. IR-2058, PA No. A-2010-2192350, DC No. EA-10-15, BPU No. ESL-0093, MA No. CS-072). NBS.1645
BUSINESS M A G A Z I N E Manufacturer & Business Association
VOLUME XXVI, NUMBER 2
FEBRUARY 2013
Lucretia A. Atti, CEO
‘Getting people back to work… to play… to living.’ / Page 10
FIRM. firm (fûrm) Adjective: Constant; Steady; Securely or Solidly Fixed in Place Verb: To Give Additional Support To Synonym: MacDonald Illig
Usage: MacDonald Illig is the firm that Western Pennsylvanians have trusted for over a century.
100 State Street • Suite 700 • Erie, PA 16507 • MacDonaldIllig.com • 814-870-7600
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February 2013
Blue Ocean Strategy Center
EDITORIAL >
FEATURES >
How online HR/Benefits administration can save companies money, while increasing efficiency and security.
Manufacturer & Business Association President Ralph Pontillo explains why Pennsylvania’s businesses and consumers deserve more when it comes to public health insurance exchanges.
9 / Health Matters
JOHN GALLEY
15 / Legal Brief
What you should watch out for in the False Claims Act when doing business with the government. MATTHEW W. MCCULLOUGH
17 / Aging & Wellness
Why we should prepare ourselves to be our parents’ keepers. DIANNE CUNNINGHAM
SPECIAL SECTION > Insert / Training Catalog
Learn more about the Association’s upcoming professional development and computer training courses in our current quarterly training schedule! T R A I N I N G
E S C H E D U L
Training That Develops Effective Leaders the Manufacturer & Business “Our team has utilized for every aspect of our Association (MBA) coursescourses are much more business. The food safety because it is a one day convenient at the MBA taking the courses class. We also save money myself included, leaders, at the MBA. Our team Supervisory Skills Series, have learned from the and Management courses, keep Leadership Classes, HR more. The instructors computer classes and and current. Every the information interesting been information there has class I have attended ly. Having the I could put to use immediate courses as webinars has — in opportunity to take some difference in our team been helpful too. The skill — has been extremely their confidence and to grow and improve. helpful as we continue — Liz Brown, Training Computer cation President webinar and Food Safety Certifi Safety HR Food r, Association for Team Leaders LJ Development, Inc. rvisors and Essential Tammy Draye ership for New Supe n and HR graduate. From left: ; Carli Braine, Lead Essential Skills Safety Certificatio n ers, Top 10 participant Certificatio Nick Wag Diana Groters, Food y, Food Safety uate; grad Karen Hane n graduate; Certificatio Series graduate; and n Certficatio al development
3 / For What It’s Worth
5 / Risking It All
Clemont Austin, president of E.E. Austin & Son, Inc., with offices in Erie, Pennsylvania, and Falconer, New York, addresses the rewards of owning your own business — and the risks you take to keep your company relevant.
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10 / HealthSouth Rehabilitation Hospital of Erie Leadership staff discuss what HealthSouth Rehabilitation Hospital of Erie, the region’s only subspecialty hospital for rehabilitative medicine, is doing to distinguish itself as a leader in individualized therapy and patient care.
16 / On the Hill Guest columnist Dan Danner, president and CEO of the National Federation of Independent Businesses, argues why it’s time to slam the brakes on the federal government’s rule-making machine.
As a leader in profession programs for more and computer training Manufacturer & than 20 years — the expert trainers Business Association’s e and skills you need deliver the knowledg business world. to compete in today’s
DEPARTMENTS > 6 / Business Buzz 18 / HR Connection
5
22 / HR Q&A 24 / People Buzz
Read on the Go! For the most current Business Magazine updates, visit our website, www.mbabizmag.com, fan us on Facebook and follow us on Twitter! February 2013 > www.mbabizmag.com > 1
A n ew lev el o f h e A rt cA r e is born.
SaintVincentHealth.com/HeartTeam Opportunity. It’s what defines our most recent clinical affiliation with the Cleveland Clinic Heart & Vascular Institute—ranked number one in the nation for heart care for the past 18 years by U.S. News & World Report. This unprecedented affiliation between two exceptional heart programs firmly establishes a new benchmark of excellence in Erie. Ensuring you and your loved ones local access to the highest standards in cardiovascular care. Enhancing our physicians’ ability to deliver new innovations and new technologies. And providing our community with an advanced level of heart care that rivals any health system in America.
EDITORIAL > by Ralph Pontillo
For What It’s Worth
VOL. X X VI, NO. 2 FEBRUARY 2013 Manufacturer & Business Association Board of Governors
Blue Ocean Strategy Center
Pennsylvania’s Businesses, Consumers Deserve More When it Comes to Public Health Insurance Exchanges Ralph Pontillo is the president of the Manufacturer & Business Association.
There is considerable confusion concerning public health insurance exchanges — and with good reason. Much of the confusion is a direct result of the federal government’s failure to provide adequate guidance on the rules and regulations that will ultimately control the exchanges. Governor Tom Corbett’s recent decision not to support a state exchange in the Commonwealth was the right decision for Pennsylvania citizens. In a statement, Governor Corbett said, “Health-care reform is too important to be achieved through haphazard planning. Pennsylvania taxpayers and businesses deserve more.” We couldn’t agree more. The full impact of the state exchanges on the cost, access, quality, marketplace choice, taxes and regulations on health care has yet to be fully explained. We are glad that Governor Corbett has joined the 21 other state officials who have declined to set up state exchanges due to the increased costs, higher taxes, and unclear regulations handed down by D.C. lawmakers. It’s important to note that while there is a great deal of confusion surrounding the state exchanges, the federal government was very clear on at least two very important aspects of the public exchanges: one, that the federal government would maintain ultimate authority and control; and two, that federal financial supports would be temporary, and as such, the cost burden would be transferred to state taxpayers. Corbett’s decision was the right one, as it would have been fiscally irresponsible to put Pennsylvania’s citizens on the hook for a health-care system with a price tag that has yet to be determined and rules that have yet to be written. It is also very important to understand that public exchanges are initially designed for the uninsured. Under the new law, uninsured individuals must purchase health insurance. Those who are currently insured will have access to both public and private exchanges — the latter of which will operate under a different set of rules and regulations that are far more flexible, self-determined and driven by private-market incentives. If the government plans for states to meet its January 2014 deadline, which most experts agree is unrealistic, it needs to cut through the confusion surrounding the exchanges — and soon. The Manufacturer & Business Association will continue to monitor this process and keep our members and our community updated as to its progress. A haphazard approach to health-care reform is not acceptable — and our state’s taxpayers and businesses deserve more.
Yvonne Atkinson-Mishrell Joel Berdine John Cline Dale Deist Bill Hilbert Jr. Donald Hester Timothy Hunter J. Gordon Naughton John B. Pellegrino Sr., P.E. Dennis Prischak Sue Sutto
Editor in Chief
Ralph Pontillo rpontillo@mbausa.org
Executive Editor
John Krahe jkrahe@mbausa.org
Managing Editor & Senior Writer
Karen Torres ktorres@mbausa.org
Digital Media Manager
Jessica McMathis jmcmathis@mbausa.org
Contributing Writers
Dianne Cunningham John Galley Matthew W. McCullough
Feature Photography
Meghan Badolato R. Frank Photography 4320 Miller Avenue Erie, PA rob@rfrankphotography.com
Advertising Sales
Patty Welther 814/833-3200 or 800/815-2660 pwelther@mbausa.org
Design, Production Printing Concepts Inc. & Printing printcon@erie.net
ON THE COVER: HealthSouth Rehabilitation Hospital of Erie CEO Lucretia A. Atti shares how the 108-bed acute inpatient rehab hospital has become a leader in rehabilitative medicine. For full story, see page 10. Mission Statement The Manufacturer & Business Association is dedicated to providing information and services to its members that will assist them in the pursuit of their business and community interests. – Board of Governors Manufacturer & Business Association 2171 West 38th Street Erie, Pa. 16508 814/833-3200 or 800/815-2660 www.mbausa.org © Copyright 2013 by the Manufacturer & Business Association. All rights reserved. Reproduction or use of editorial, pictorial or advertisements created for use in the Business Magazine, in any manner, without written permission from the publisher, is prohibited. Unsolicited manuscripts cannot be returned unless accompanied by a properly addressed envelope bearing sufficient postage. The magazine accepts no responsibility for unsolicited manuscripts or artwork. The Business Magazine and Manufacturer & Business Association do not specifically endorse any of the products or practices described in the magazine. The Business Magazine is published monthly by the Manufacturer & Business Association, 2171 West 38th Street, Erie, Pa. 16508. Phone: 814/833-3200 or 800/815-2660.
February 2013 > www.mbabizmag.com > 3
MILLCREEK GERIATRIC EDUCATION AND CARE CENTER
You can benefit from the resources that provide . . .
www.LECOMtotalhealth.com
EDITORIAL > by Jessica McMathis
Risks, Reinvention Drive a Century of Success Behind E.E. Austin & Son, Inc.
EDITORIAL > by Ralph Pontillo
Risking It All
The Business Magazine’s “Risking It All” section highlights the entrepreneurs who made sacrifices to build their businesses in our region. This month, we sat down with Clemont Austin, president of E.E. Austin & Son, Inc., with offices in Erie, Pennsylvania, and Falconer, New York, to talk about the rewards of owning your own business — and the risks you take to keep your company relevant. For more than 100 years, E.E. Austin & Son, Inc. has been providing quality construction services to northwest Pennsylvania and the southern tier of New York. And for 37 of those years, Cle Austin, great grandson of founder Edward Everett Austin, has been at the helm of the general contracting company — one of the region’s oldest and largest.
Cle Austin is the president of E.E. Austin & Son and Austin ServAll Concrete.
Today, E.E. Austin & Son — which began as one of the nation’s first 100 ready-mix concrete plants and is responsible for the construction of Erie-area landmarks such as Veteran’s Memorial Stadium, Erie International Airport and the formerly named Louis J. Tullio Arena — offers general construction and construction management for institutional, industrial and commercial clients, as well as a concrete division that manufactures and delivers ready-mixed concrete. It’s also operated by the same values of personal integrity, technical competence and consistent quality on which it was built. But it hasn’t always been easy. When Cle took over the business in 1976, the firm’s clients were mostly public entities, which meant little work, and cash was hard to come by. “We had no capital, no equipment, no customers,” Austin explains. “We were an old company with old-fashioned ways.” To stay relevant meant taking risks — one of which was reaching out beyond the typical Austin customer and participating in the construction of regional medical centers, manufacturing facilities, hotels and casinos, and large-scale office buildings. As a result, the business became a force in the regional construction industry — and a name for quality among its peers. It also meant that they didn’t always have the best or newest equipment, buying used trucks to reserve capital.
Among some of E.E. Austin & Son’s most recent projects are the REDC at Penn State Erie, the Behrend Campus (now known as the Burke Center), the Lake Erie Biofuels plant, and Johnson Reservoir.
“We used to say we bought the worst half of the truck, the second half of its life,” says Austin. “But because of those decisions, we’re now able to enjoy the best half — the first half of its life.” Success has been gratifying, and allowed both Austin and the company to give back to the community with donations of both money and time. Yet it wouldn’t have been possible without the hard work of loyal employees who have kept the business at the top of the construction and concrete game for more than a century. “In the construction business, you have to be able to pick and choose who you work with and how you do it,” says Austin. “Fortunately for us, the people we’ve been able to hire and train are among the best, brightest and hardest working people out there.” For those looking to go into business for themselves, Austin offers a small bit of advice.
Erie County presented the 2012 Excel Award to E.E. Austin & Son in October.
“Build your customers and your staff one at a time,” he offers. “Start small, conserve your cash, and don’t overextend yourself when it comes to purchasing hard assets. “There’s a lot of flexibility in owning your own business if you do it well.” For more information about E.E. Austin & Son, Inc., visit www.eeaustin.com. February 2013 > www.mbabizmag.com > 5
Business Buzz ERIE BUSINESS CENTER RECEIVES PRESTIGIOUS ACICS AWARDS The Erie Business Center (EBC) recently was recognized by the Accrediting Council for Independent Colleges and Schools (ACICS) at its Centennial Gala in Las Vegas. EBC received three awards, acknowledging the school’s longevity, ongoing accreditation and contributions to postsecondary education. The ACICS, based in Washington, D.C., is one of the most respected and longest-established national accreditors of academic institutions. Recognized by the U.S. Department of Erie Business Center CEO Samuel Education and the Council for Higher Education McCaughtry and Executive Director Donna Perino present Accreditation (CHEA), ACICS accredits more than the awards EBC received from 900 private post-secondary institutions, as well the Accrediting Council for Independent Colleges as institutions offering associate’s, bachelor’s and Schools. and master’s degrees in programs designed to educate students for professional, technical or occupational degrees. EBC, which is recognized as an ACICS Founding Institution, is one of only five original ACICS-accredited schools — along with Everest Institute of Pittsburgh, Miami Jacobs Career College, Minneapolis Business College, and Spencerian College of Louisville, Kentucky. In operation for 128 years, EBC received an award for being part of the ACICS Centennial Century Club and also was distinguished for remaining an ACIC-accredited institution for 50 or more years. To learn more about EBC, visit www.eriebc.edu. ACUTEC PRECISION MACHINING ANNOUNCES EXPANSION Acutec Precision Machining, an aerospace parts machining company with two locations in Crawford County, recently announced that a $2.65-million renovation project will add another 80,000 square feet to the already 80,000 feet the company now utilizes, according to local news reports. The company also expects to hire an additional 35 new employees.
Students in the new major will have classes in calculus, ergonomics, linear programming and statistical methods. Senior-level design projects will give them hands-on experience with industry partners.
For more information on the Saegertown, Pennsylvania-based company, visit the website www.acutecprecision.com.
For more information, visit www.psbehrend.psu.edu.
PENN STATE BEHREND TO OFFER INDUSTRIAL ENGINEERING MAJOR IN FALL 2013 Penn State Erie, The Behrend College recently announced that it will begin offering an industrial engineering major in fall 2013. 6 < www.mbabizmag.com < February 2013
The students are expected to be in much demand after graduation. The need for industrial engineers is expected to increase by 14 percent by 2018, according to the U.S. Bureau of Labor Statistics.
KNOX RECOGNIZED IN ’BEST LAW FIRMS’ RANKINGS Knox McLaughlin Gornall & Sennett, P.C. in Erie, Pennsylvania recently announced that it has been listed in Tier 1 in the 2012-2013 “Best Law Firms” rankings published by U.S. News and Best Lawyers in two practice areas.
The firm received a Tier 1 ranking both nationally and in the Pittsburgh metropolitan region for Medical Malpractice Law — Defendants. The Knox firm is one of only five law firms in Pennsylvania to receive a Tier 1 national ranking in that practice area and one of only three in the Pittsburgh metropolitan region to receive a Tier 1 ranking both nationally and regionally in the practice area. The firm also received a Tier 1 ranking in the Pittsburgh metropolitan region for Information Technology Law, one of only two firms in the Pittsburgh metropolitan region to receive that ranking in the practice area. For more information, visit www.kmgslaw.com. WASTE MANAGEMENT NAMED ’BEST CORPORATE CITIZEN’ Waste Management has been named a “Best Corporate Citizen” in the Services industry by Corporate Responsibility (CR) Magazine. This is the second year that CR Magazine has recognized companies by industry, applying the methodology from its 100 Best Corporate Citizens List to vertical segments to allow for an apples-to-apples comparison. “Our annual 100 Best list honors transparency across all industry sectors and this delineation gives our readers a deeper understanding of which companies have gone above and beyond in their consistent commitment to gold standard environmental, economic, and social values and practices,” said Dirk Olin, the magazine’s editor-in-chief. To view the full Top 10 Best Corporate Citizens by Industry list, visit www.thecro.com. MCINNES ROLLED RINGS PLANS FOR EXPANSION Erie-based McInnes Rolled Rings, a manufacturer of seamless rolled rings, is planning a future expansion, according to a recent Erie Times-News article.
DEPARTMENTS > Contact: Karen Torres
On January 2, Erie City Council held a public hearing on the proposed rezoning of several parcels in the 1500 block of East 12th Street owned by the Greater Erie Industrial Development Corp. and affiliates of McInnes. The land, currently zoned for light industrial use, would have to be rezoned for heavy industry use, based on the size and scope of the planned expansion. According to the news report, the company is considering an expansion of about 100,000 square feet that would allow it to produce larger rolled rings.
ERIE INTERNATIONAL AIRPORT RUNWAY EXTENSION OPENS FOR BUSINESS After seven years of construction and two winters ahead of schedule, the Erie Regional Airport Authority (ERAA) opened Runway 6-24 for full-length operation. Aircraft flying in and out of Erie International Airport (ERI) now have 7,500 feet of pavement available for landing and 8,420 feet for take-off. A standard 1,000 feet of safety area at both ends of Runway 6-24 are now providing enhanced safety to the flying public.
“Having full use of the extended runway enabled ERI to establish the Erie City Council approved the request 1,000-feet safety areas today, the at its January 16 meeting. primary impetus for the $83-million For more information, visit program,” said Chris Rodgers, www.mcinnesrolledrings.com. executive director of the ERAA. “The ERI Page non-standard safety area waiver Austin_MBAAds2012v2_Layout 1 6/13/12 8:55 AM 1
was set to expire in 2014. Nearly $60 million in FAA and Bureau of Aviation grants have been provided to ERI specifically to address runway safety area deficiencies. In addition, the extended runway length will improve landing and takeoff reliability in poor weather conditions.” The milestone is just one of many the ERAA board and project team expect to meet before the project wraps up in August 2013. In the weeks and months ahead, a new electrical vault will become operational, extended taxi-way Alpha will be placed into service, upgraded instrument landing system components will come online, a completely new approach lighting system will guide landing planes, and the old runway pavement will be resurfaced. For more information, visit www.erieairport.org.
The Austin Difference
HEALTHCARE • EDUCATION • INSTITUTIONAL • RETAIL & HOSPITALITY • INDUSTRIAL • CONCRETE
Contractors & Construction Managers Since 1906 Erie, Pennsylvania • Jamestown, New York www.eeaustin.com
Every day E.E. Austin lays its tradition of construction excellence on the line. Our extensive list of satisfied clients is testimony to Austin keeping its longstanding promise: “Do the right thing... all the time”. It’s a promise we’ve kept with pride for more than a century... and it’s our promise to you. It’s the Austin Difference.
February 2013 > www.mbabizmag.com > 7
Health Matters
EDITORIAL > By John Galley
Online Benefits Administration Has Its Advantages As companies grow, demands on human resources (HR) departments also increase. To satisfy those demands, employers have to be aware of the advances in selfservice technology that can increase productivity and create real cost savings. HR departments can see tremendous benefits from technological innovations such as online HR/Benefits administration. Generally speaking, companies with 200 or more employees (the size at which HR departments can become bogged down with daily administrative activities) are attracted to the advantages associated with online automated HR/Benefits administration. Automation can eliminate some of the daily tasks for HR departments so that they can focus more of their time and energy on strategic initiatives that have a greater business impact. Online HR/Benefits administration saves companies money, while increasing efficiency and security. Why Use Online HR/Benefits Administration? 1. The HR function has become more complex, difficult and timeconsuming. Often, more strategic initiatives can be squeezed out due to the daily demands and volumes of administrative issues that affect the work force every day. 2. Reduced paperwork. The paperwork associated with benefits and payroll can overwhelm an HR department. There is a need to handle a number of documents that must be filled out, signed, dated, reviewed, entered into various separate internal and external systems, such as carrier databases and
the employer’s payroll/HRIS platform, and then filed. Online HR/Benefits administration can automate much of that process for employers. 3. Staff can be freed from duplicate paperwork. Errors can be prevented and access to information improved. 4. Online HR/Benefits administration’s special features include: • Embedded communications tools that allow HR departments to customize messages to various employee populations. • The most advanced technologies do much more than handle open enrollment — they handle new hires, life events such as marriages, birth of a child, divorce, etc., as well as employment events, such as a promotion or move from parttime to full-time employment. Each of these has benefits and other HR implications that may be automated by a single solution. Advantages for Employees These technologies also provide a gateway into other platforms such that wellness, absence, and other key initiatives can be easily and seamlessly managed through the same integrated portal. Because an employee could perform all of these kinds of tasks without contacting HR or leaving his desk, it saves time for employees and HR staff, thus increasing productivity for the employer. The right online HR/Benefits system ensures greater security and privacy of information for an employee. Electronic exchanges are secure and the data is protected via various levels of security. For example, HR
administrator access can be limited to HR administrators only and the information they have access to can be further limited by role, department and location. Strategic Benefits Getting the work force access to online communications can help to make the organization more nimble and quick. Key messages can be communicated instantly to employees and these messages are actually heard and, when needed, responded to. Employers need to think beyond just employee benefits when developing their web strategy. They should think about all aspects of online self-service for employees and if they are looking for a strategic partner, find one that has the ability to offer additional services when they are ready. For more information about benefits administration from EBenefits Solutions, visit www.EBenefits.com. John Galley is the president of EBenefits Solutions, which is part of the UPMC Insurance Services Division. The integrated partner companies of the UPMC Insurance Services Division, which offer a full range of insurance programs and products, also include UPMC Health Plan, UPMC WorkPartners, LifeSolutions, UPMC for You (Medical Assistance), Askesis Development Group, and Community Care Behavioral Health.
February 2013 > www.mbabizmag.com > 9
‘Getting people back to work… to play… to living.’ At 56 years old, Aubrey “Dale” Knox never expected that he’d have to learn how to walk and talk again. But when Knox, a truck driver from East Springfield, Pennsylvania, was injured in a September 2012 car accident and rushed to an area hospital where he remained in coma for two days, he woke to find that had suffered a severe concussion, spinal cord injury and paralysis. It was then that Knox first learned he might never walk again. After an inpatient stay at a regional acute hospital, he came to HealthSouth Rehabilitation Hospital of Erie. For more than a month, Knox underwent specialized occupational, physical, and speech therapy, little by little working to regain his motor and sensory skills. Then, after undergoing surgery on his neck to treat his spinal cord, he returned for a three-week stay at HealthSouth to continue his rehabilitation.
HealthSouth Rehabilitation Hospital of Erie offers roundthe-clock nursing care and comprehensive rehabilitation for a wide range of patients and conditions.
“I went from no feeling in my hands or feet to walking,” Knox says. “The day before yesterday when I took my first step without holding on to the walker, it’s just like somebody gave me a new life.” Knox describes his recovery experience at HealthSouth as “second to none.” “I’ve got a lot of motivation and the therapy here has helped me with that motivation. They push you that little bit extra,” he notes, “and that’s the reason I’m walking out those doors today.” Tom Bateman, 49, of neighboring Conneaut, Ohio, recalls the trauma he experienced when he suffered a stroke while on a hunting trip in Colorado in December 2010. As his release from a long-term acute hospital (LTACH) in Colorado approached, his wife and family scrambled to find a rehabilitation hospital back home that would provide the best possible Stroke Rehabilitation Program.
Case managers work closely with patients and families to ensure they are provided continuity of care.
Bateman’s former employer, a local tool-and-die manufacturer — where he worked as a tool room supervisor for 18 years — even helped to make all the flight arrangements so that he could be brought straight from the airport, to an ambulance, then to HealthSouth Erie, A Joint Commission Certified Stroke Rehabilitation Center of Excellence. For six weeks, Bateman — then paralyzed on the right side — underwent a rigorous program of physical, occupational and speech and dysphagia (swallowing) therapy along with rehabilitation nursing, nutritional, respiratory and neuro music therapy. The neurologist-led Stroke Rehabilitation Team applied the latest in stroke treatment and advanced rehabilitation recovery technology. “The most impressive part was that I was admitted on the 15th of the month and my therapy started on (the morning of) the 16th,” says Bateman. “And it was pretty tough. One of the first things I remember of the physical therapy was that they strapped my arms in to a standup walker to try to train me to walk.” HealthSouth helps individuals reach the greatest possible degree of independence through its specialized therapy programs, including occupational therapy shown here.
10 < www.mbabizmag.com < February 2013
Six weeks later, “I was walking with the aid of a hemi-walker, but I was walking,” he notes. “My speech, well, I was on a liquid diet when I came in, and I was on regular food when I left.” Overall, Bateman describes his HealthSouth rehabilitation as “very good.” “The people were pleasant and easy to work with,” he says. “They help you with everyday skills, not just what they think you are going to run into.”
Mission Focused
HealthSouth Chief Executive Officer Lucretia A. Atti, who joined the Erie rehabilitation facility as chief nursing officer in 2009 and was named CEO in September 2011, says HealthSouth’s primary role is that of the region’s only subspecialty hospital Lucretia A. Atti for rehabilitative medicine. Chief Executive Officer The Erie facility is one of the more than 100 hospitals in the HealthSouth network, which together represent one of the nation’s largest health-care providers specializing in rehabilitation. “Our goal,” explains Atti, “is to get that patient back to living, to playing, and back to work, or whatever their need activity was, but back to being functional again.” Patients who come to HealthSouth have often suffered a stroke, catastrophic illness, serious injury resulting in trauma to the spinal cord or brain, neurological diseases such as Parkinson’s disease, multiple sclerosis and Guillian-Barre syndrome, or been referred to HealthSouth for orthopedic treatment. These patients are typically referred by one of the area’s acute tertiary hospitals, but can also come from a home admission, after a direct referral from a family member or a physician’s office. Once admitted, the hospital works closely with a dynamic group of doctors — admitting and consulting physicians — therapists and nursing staff, who take care of these and other medically complex patients. Each individual who comes to HealthSouth for treatment is assigned a rehabilitation team that meets once a week in a team conference to discuss his or her defined care plan. This team is comprised of the patient’s rehabilitation physician and nurse, occupational therapist, physical therapist and case manager, as well as his or her respiratory therapist, speech therapist, infection control nurse and/or wound nurse. HealthSouth’s care management model, known as “Care Management Teamworks,” even assigns a case manager to each patient and works with them and their family, starting on Day One. “The case managers help communicate and coordinate the information to the family, to the patient, while they are here in the hospital, but also a follow-up call when they go home,” states Atti. “They oversee each discharge, ensuring that equipment is obtained and that services are coordinated. We also work very closely with several tertiary hospitals for those patients who
HealthSouth Rehabilitation Hospital of Erie works with a dynamic physician staff, including (front row, from right): Thomas D. Skelly, CRNP, Neuro-rehabilitation certified registered nurse practitioner; James A. DeMatteis, MD, Board Certified Neuro-rehabilitation and Neurology physician; Danielle M. Hansen, DO, Board Certified Geriatric and Internal Medicine physician; and (back row, from left) Hospital Medical Director, Douglas B. Grisier, DO, Board Certified Family Medicine physician; Kendell Kessler, MD, Board Certified Physical Medicine and Rehabilitation physician; and James A. Gade, DO, Board Certified Family Medicine physician.
really require a higher level of care, and have to be transferred.” At HealthSouth, the average length of a hospital stay is now seven to 14 days — and given this short time frame, a comprehensive rehabilitation program is required. On the first day, HealthSouth takes a patient’s functional independence measure (FIM) — based on 13 motor tasks and five cognitive tasks — to determine the level of his or her disability and how much assistance is required to carry out the activities of daily living. Hospital officials say this criterion is far different than a skilled nursing facility that offers “short term rehab,” and where no quality metrics are required for Medicare reimbursement. “We measure what they can do and usually when they first come here it is a very low number, in the 45-50 range,” explains Atti. During the patient’s stay and “prior to discharge, we re-measure their FIM measurements and identify the gain from admission to discharge. A number of outcomes are compared, not only within our own 100-plus HealthSouth hospitals located across the country, but also with the National Standards — the UDS (Universal Data System) measurements. For the past two years in a row, we have been in the UDS Top 10 percent of all rehabilitation hospitals across the nation in our clinical outcomes. This demonstrates excellence in care.” Michelle Mayes, an occupational therapist with more than 20 years of experience and director of Therapy Operations at HealthSouth, says the hospital’s goal is to attain close to a 40-point FIM gain by the time they are discharged. “We are able to extend their stay if needed, based on their FIM improvement,” she says. “Often patients exceed that goal due to the rehabilitation they receive and how their individualized care is planned. This means sitting down with the patient and the family member upon admission and determining what the goals are for the patient, why they are here and what they need to accomplish.”
“They may have a chronic debilitating disease, general decline, experienced a fall or trauma, suffered a stroke or had a hip replacement and now their life is a little bit different returning to home,” explains Mayes. “We want to make sure that the most important things to them are >
About: Founded in 1986, HealthSouth Rehabilitation Hospital of Erie is a 108-bed inpatient, 90,000-square-foot rehabilitation hospital that offers comprehensive inpatient rehabilitation services for patients in northwest Pennsylvania, western New York and northeast Ohio. HealthSouth Corporation, headquartered in Birmingham, Alabama, is the nation’s largest owner and operator of inpatient rehabilitation hospitals in terms of revenues (approximately $2.027 billion in net operating revenues in 2011), number of hospitals (99), and patients treated and discharged, and operates in 27 states across the country and Puerto Rico. Services: In addition to caring for general rehabilitation diagnoses such as orthopedics, cardiac, pulmonary, or general debility post surgery or illness, the hospital has specialized inpatient programs for stroke, brain injury, neurological diseases such as Parkinson’s disease, multiple sclerosis and Guillian-Barre syndrome, trauma and spinal cord injury. Other services include onsite dialysis, wound and ostomy care, tracheotomy and dietitian evaluation and treatment. Employees: 264, including highly skilled physicians; physical, occupational, speech and respiratory therapists; licensed practical nurses and registered nurses, including certified wound and ostomy nurses, and infectious disease nurses; case managers; dieticians; operations and housekeeping staff; and administrators. Location: 143 East Second Street, Erie, PA 16507 Phone: 814/878-1200 for general information or 814/878-1288 for admissions/direct referrals Website: www.healthsoutherie.com February 2013 > www.mbabizmag.com > 11
accomplished. If they are left alone during the day, and need to be able to get to the bathroom, make a meal, or get the mail, that they are safe and capable, whatever the situation may be.”
Unparalleled Care
HealthSouth patients can expect an unparalleled commitment to care throughout their hospital stay. As a round-the-clock medical-surgical level specialty inpatient rehabilitation hospital, patients are cared for by certified rehabilitation nurses, seen daily by rehabilitation physicians, and receive therapy seven days a week. Typically, patients participate in rehabilitation for three hours spread over the course of day — and weekends — of physical, occupational, and speech therapy, when appropriate, in accordance with Medicare guidelines. HealthSouth meets all requirements of the state and federal government and the Joint Commission, for which it is accredited and certified. The hospital is also a subspecialty hospital certified in Parkinson’s disease, Stroke and Brain Injury Rehabilitation and has started the process for Orthopedic Rehabilitation Program Certification. These specialized therapists offer a higher level of care whether it is for orthopedics or neurology, HealthSouth’s Stroke Center of Excellence where they are NIH (National Institute of Health) certified, or traumatic brain injuries or spinal cords, along with the latest rehabilitation technology. “No other inpatient rehabilitation facility in this region comes close,” says Mayes. “There are sub-acute units in hospitals and nursing homes with short-term rehab, but we are the only freestanding rehabilitation inpatient hospital in the tri-state area, and we provide the highest level of care.” Key to this higher standard of care is the time, flexibility and creativity that HealthSouth’s therapists incorporate into each patient’s individualized care plan. HealthSouth utilizes the latest technology in physical therapy, such as this Makoto Arena, to improve patient outcomes, as well as the REO, Upper and lower extremity Bioness, Hand and Foot mentor, Game Cycle, Moto-Med, Auto-Ambulator, Wii Rehab, Vital Stimulation, Fluidotherapy, and Assisted Tech Lab, to name a few.
The hospital has a dedicated nursing staff, represented by (clockwise, from front left): Nurse Manager Elizabeth McCracken, CRRN, BSN; Wound Care Coordinator Janet Schafer, RN, BSN, CWON; Infection Control Coordinator Janet Moore, CRRN; Nurse Manager Melody Rosenbaum, CRRN; Charge Nurses Lauren Hasbrouck, CRRN and Jennifer Lemmo, RN, BSN; and Chief Nursing Officer Evelyn T-Armstrong, CRRN, BSN, MSN.
For example, notes Atti, “I may want to know that I will be able to wash the laundry, iron my clothes, cook or bake. For someone else, it may be related to what they do for a living, whether it is using a tool or putting something together where you need the dexterity that you have lost.”
all connected in getting the best customer service for the patient, from making sure that room is cleaned to ensuring that the patient is appropriately groomed. We strive to assure that our patients are comfortable and that their privacy needs are met.”
The hospital recently had a patient who needed to be able to lift and stack wood. HealthSouth’s therapy team turned to simulated activities of lifting weighted pounds using sandbags to help. “We got a little red wagon and had him practice lifting as if he were going to load wood,” notes Mayes. “You have to be really creative — and that is taking your creativity and simulating an activity so it is a function, meaning what the patient has to accomplish to go home.”
HealthSouth currently has a number of initiatives to improve satisfaction overall and employee engagement. The rehabilitation hospital has actively encouraged its nursing staff to achieve the level of certified rehabilitation registered nurse (CRRN). The comprehensive exam and classes — which are reimbursed by HealthSouth — require participants to work in rehabilitation for two years before sitting for the exam. The CRRN nurses help patients who are affected by chronic illness or physical disability achieve potential, learn to adapt to their disabilities, and work toward independent living.
The No. 1 goal for all patients who come to HealthSouth is to return them back to community living. “That can be living back home alone. It can be living with a caregiver or a family member, senior apartment or assisted living facility,” notes Mayes.
Commitment to Patient Satisfaction
HealthSouth not only values its unparalleled patient outcomes, but its patient satisfaction as well. The hospital relies on assessments from PressGaney, the industry’s recognized leader in health-care performance improvement, to compare itself not only to regional hospitals, but hospitals across the entire HealthSouth continuum. “Besides getting you home,” explains Mayes, “our goal is making sure you are a satisfied customer during your stay here.” The focus on satisfaction is a core part of the HealthSouth culture, in which employees practice the “CPR” philosophy, which stands for “Comfort, Professionalism and Respect.” “We are really connected here at HealthSouth because what a housekeeper has to do for their job really has an important impact, as well as nursing, therapy, dietary and maintenance,” continues Mayes. “We are
12 < www.mbabizmag.com < February 2013
“It is a challenging exam for all of them, and we already have over 20 CRRNs in the hospital, but it raises the level of the type of nurses that are caring for you,” notes Atti. Also raising this level of care is the type of people who come to HealthSouth to work. The hospital has instituted tuition reimbursement, loan forgiveness programs and competitive compensation and benefits packages to find the highly skilled and trained professionals to work in the rehab hospital. In addition, HealthSouth’s recognition programs — Employee of the Month and Employee of the Year — and comprehensive orientation programs help to engage employees toward a higher level of service. It is this committed team of health-care professionals, combined with its specialized therapy programs and focus on patient care satisfaction, which continues to make HealthSouth a recognized leader in rehabilitation. And, as Atti states, has allowed HealthSouth Rehabilitation of Erie to fulfill its core mission of “getting people back to work… to play… to living.” “Let us heal you,” she says.
For more information, visit www.healthsoutherie.com.
T R A I N I N G
S C H E D U L E
Training That Develops Effective Leaders “Our team has utilized the Manufacturer & Business Association (MBA) courses for every aspect of our business. The food safety courses are much more convenient at the MBA because it is a one day class. We also save money taking the courses at the MBA. Our team leaders, myself included, have learned from the Supervisory Skills Series, Leadership Classes, HR and Management courses, computer classes and more. The instructors keep the information interesting and current. Every class I have attended there has been information I could put to use immediately. Having the opportunity to take some courses as webinars has been helpful too. The difference in our team — in their confidence and skill — has been extremely helpful as we continue to grow and improve.” g omputer Trainin webinar and C Food Safety Certification HR n tio ia oc ss y Drayer, A aders and From left: Tamm aine, Leadership for Team Le participant and Br li New Supervisors tification r ar C fo ills Sk l ia nt se participant; Es Cer rs, Food Safety Wagers, Top 10 graduate; Nick cation graduate; Diana Grote pant; and Karen Haney, tifi rtici Food Safety Cer Essential Certfication Series pa HR te. graduate and tification gradua Food Safety Cer
— Liz Brown, President LJ Development, Inc.
As a leader in professional development and computer training programs for more than 20 years — the Manufacturer & Business Association’s expert trainers deliver the knowledge and skills you need to compete in today’s business world.
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Professional Development
Professional Development
Certified Supervisory Skills Series Course I Course III (Warren)
3/19 and 3/26 3/14 and 3/21
Price: $295 Members, $415 Nonmembers
Certified Supervisory Skills Series Course I Course II
Price: $295 Members, $415 Nonmembers
4/3 and 4/10 4/9 and 4/16
Leadership for Team Leaders Course I
3/27
Leadership for Team Leaders Course II
4/17
Food Safety Certification
3/18
Food Safety Certification
4/15
Price: $175 Members, $315 Nonmembers Price: $145 Members, $250 Nonmembers
Lean Operations Champion Training (Three-Day Workshop)
2/11, 3,11 and 4/19
Price: $950 Members, $1,350 Nonmembers (includes lunch)
Six Sigma-Green Belt: Certification & Implementation (Three-Day Workshop) 2/14, 3/14 and 4/18 Price: $950 Members, $1,350 Nonmembers (includes lunch)
HR Essential Certification Series Interviewing & Hiring (Bradford, 8 – 10 a.m.)
3/13 3/13 3/13 3/14 3/14 3/21
NEW HR Compensation Programs Fundamentals of Compensation (Warren) 3/21 Wage-and-Hour Fundamentals: Exempt vs. Nonexempt Meadville (Half Day) 3/7 Warren (Half Day) 3/22 Performance Management & Evaluations Meadville (Half Day) 3/7 Warren (Half Day) 3/22 Price: Full-Day Courses - $240/each Members, $480/each Nonmembers; Half-Day Courses - $120/each Members, $240/each Nonmembers
Computer Access 2007/2010 Level I Excel 2007/2010 Level I Excel 2007/2010 Level II
3/5 3/7 3/14
Price: $175 Members, $310 Nonmembers
Access 2007/2010 Level II (Two Days) Price: $350 Members, $460 Nonmembers
Price: $145 Members, $250 Nonmembers
HR Essential Certification Series: Interviewing & Hiring (DuBois, 8 – 10 a.m.)
Employment Law (DuBois, 10:15 a.m. – 12:15 p.m.) Terminations (DuBois, 1:30 – 3:30 p.m.) Discrimination & Harassment (DuBois, 9 – 11 a.m.) Compensation & Benefits (DuBois, 12:30 – 3:30 p.m.) Discrimination & Harassment in the Workplace
Price: $70 Members, $140 Nonmembers
Employment Law (Bradford, 10:15 a.m. – 12:15 p.m.) Terminations (Bradford, 1:30 – 3:30 p.m.) Discrimination & Harassment (Bradford, 9 – 11 a.m.) Compensation & Benefits (Bradford, 12;30 – 3:30 p.m.) Employment Law – What HR Should Know
Price: $70 Members, $140 Nonmembers
Price: $175 Members, $315 Nonmembers
3/12 and 3/19
“Whether it is computer classes or professional development courses, the training provided by the Manufacturer & Business Association has allowed us to provide a cost-effective solution that is critical to our ability to stay competitive.” — Joy Sherry, Human Resources Director Ainsworth Pet Nutrition
4/10 4/10 4/10 4/11 4/11 4/18
Computer Access 2007/2010 Level I Access 2007/2010 Level III Excel 2007/2010 Level I Excel 2007/2010 Level II Excel 2007/2010 Level III
Price: $175 Members, $310 Nonmembers
4/30 4/9 4/18 4/25 4/11
“After taking the HR Essential Certification Series at the MBA, I have found that all the information has become very useful in my everyday work environment. Our instructor did an excellent job presenting the information in a way that kept your attention and also taught you what you needed to know.” — Dina Heile, Administrative Assistant Intellectual Property Services
“Shorty after joining the Manufacturer & Business Association, I learned of the HR Essential Certification Series. Knowing that our company was growing and there were aspects of Human Resources with which I needed guidance, I signed up for the series. Our instructor was very familiar with both PA and federal laws. I enjoyed the fast-paced classes, which were packed with pertinent, up-to-date information and reallife scenarios from other local businesses. No matter what level of HR experience you have, you will find these classes very educational.” — Tammy Ricci, Office Manager Moody and Associates, Inc.
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5/16 and 5/23 5/1 and 5/8 5/7 and 5/14 5/29 and 6/5
Price: $295 Members, $415 Nonmembers
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Training
Professional Development Certified Supervisory Skills Series Course I Course II Course III Course III
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Regional Locations All courses are held at the MBA Conference Center in Erie, unless otherwise noted. Bradford:
Holiday Inn Express 30 Tarport Drive Extension
Erie:
Manufacturer & Business Association Conference Center 2171 West 38th Street
Leadership for Team Leaders Course III
5/22
DuBois:
Best Western 82 North Park Place
Food Safety Certification
5/20
Franklin:
Franklin Industrial & Commercial Development Authority 191 Howard Sreet
Hermitage:
LindenPointe 3182 Innovation Way
Kittanning:
Armstrong Educational Trust 81 Glade Drive
Meadville:
Holiday Inn Express 18240 Conneaut Lake Road
Price: $175 Members, $315 Nonmembers Price: $145 Members, $250 Nonmembers
HR Essential Certification Series:
Interviewing & Hiring (Grove City, 8 – 10 a.m.) 5/8 Employment Law (Grove City, 10:15 a.m. – 12:15 p.m.) 5/8 Terminations (Grove City, 1:30 – 3:30 p.m.) 5/8 Discrimination & Harassment (Grove City, 9 – 11 a.m.) 5/9 Compensation & Benefits (Grove City, 12:30 – 3:30 p.m.) 5/9 Terminations — Keeping It Legal 5/16
Price: $70 Members, $140 Nonmembers
Computer Excel 2007/2010 Level I Excel 2007/2010 Level II Excel 2007/2010 Level III
5/9 5/23 5/30
Price: $175 Members, $310 Nonmembers
Access 2007/2010 Level II (Two Days) Price: $350 Members, $460 Nonmembers
5/14 and 5/21
“Environmental Reclamation Services takes pride in the continued education of our employees. In seeking out a program that clearly defines the expectations we have for our supervisors, we looked no further than the Manufacturer & Business Association in Erie, Pa. Their leadership seminars identify and sharpen the skills necessary to produce qualified supervisors while fine-tuning the natural abilities our employees bring to the table.” — Bridget Trojanowski, Human Resource Manager Environmental Reclamation Services
“Investing in management education for both new and seasoned leaders has not only influenced corporate success, but has contributed to many successful career paths. The MBA-USA programs are high quality, accessible and affordable. That translates into great value.” — Gary M. Maras, Chief Executive Officer Medicor Associates Inc.
Mercer/Grove City: Hampton Inn, Grove City 4 Holiday Boulevard St. Marys:
Community Education Council of Elk and Cameron Counties 4 Erie Avenue, Suite 200
Warren:
Warren/Forest Higher Ed Council 589 Hospital Drive, Suite F
Williamsport:
Genetti Hotel 200 W. Fourth Street
* Handicap access and parking available at all sites.
Onsite Training Get more flexibility and convenience with our onsite training options. Join the hundreds of companies who’ve found our onsite training options to be the most cost-effective and convenient choice for group instruction. • Flexible and convenient scheduling • Customized instruction • Eliminate travel expenses Whether you need a half day or full day of professional development or computer training — let our expert trainers come to you!
Course Registration Contact Ann Miaczynski at 814/833-3200, 800/815-2660 or amiaczynski@mbausa.org to register or for more information on upcoming courses. Online registration also is available at www.mbausa.org.
ONSITE TRAINING PROFESSIONAL DEVELOPMENT Supervisory Skills Leadership for Team Leaders Customer Service One-Day Food Safety Certification And much more!
COMPUTER TRAINING Word Levels I, II, III Excel Levels I, II, III Access Levels I, II, III Outlook And much more!
How you need it. When you need it. Where you need it. Considered a leader in professional development and computer training for more than 20 years, the Manufacturer & Business Association offers you the ease and flexibility of onsite training for groups of six or more employees. Onsite Convenience: Nothing beats the convenience of training conducted at your facility. Let our expert instructors bring the training you need, when you need it, where you need it. Customized Programs: From full-day to half-day programs, all of our courses can be tailored to address your organization’s specific needs. Focused Interaction: Facilitated by our training specialists, your employees’ experience is further enhanced through group discussion on key topic areas specific to your company’s work environment.
Call Ann Miaczynski for more information about onsite training programs at 800/815-2660 or 814/833-3200, or visit www.mbausa.org.
IF IFIFYOU’RE YOU’RE YOU’RENOT NOT NOTGETTING GETTING GETTING A AAQUOTE QUOTE QUOTEFROM FROM FROMUS, US, US, YOU YOU YOUMAY MAY MAYNOT NOT NOTBE BE BEPAYING PAYING PAYING THE THE THELOWEST LOWEST LOWESTRATES. RATES. RATES. M M ME EEM M MB BBE EERS RS RS O OON NNLY LY LY
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leading leadingproviders. providers. leading providers. Call Callyour yourbroker brokeror the Call your broker ororthe the MBA MBAat 814/833-3200 MBA atat814/833-3200 814/833-3200 or 800/815-2660,or oror800/815-2660, 800/815-2660, oror visit visitmbausa.org mbausa.orgfor for visit mbausa.org for more moreinformation. information. more information.
Short and Long Term Loans Betty Reynolds,
Lines of Credit
Commercial Lender
(814) 825-2436 Ext. 1051 breynolds@eriefcu.org
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Financial Services for Employees
(814) 825-2436 Ext. 1035 kbailey@eriefcu.org
Erie Federal Credit Union is the only credit union in Erie offering business loans! Learn how Erie FCU can assist with your business needs.
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Legal Brief
EDITORIAL > By Matthew W. McCullough
Doing Business With the Federal Government? Watch Out for the False Claims Act With attention focused on healthcare reform and the “fiscal cliff,” it is a good time to be reminded of the consequences of violation of the federal False Claims Act (“FCA”), which is seen by some as an important component of any fiscal compromise in a divided Congress.
directly from the federal government as well as funds dispensed through intermediaries, such as funds distributed to and by states and state agencies that are derived from the federal government. Liability will be imputed to an employer for false claims submitted by an employee.
coupled with record recoveries in FY 2012, expect even more aggressive enforcement of the FCA in FY 2013. Likewise, increased visibility of the FCA is likely to encourage more private individuals to blow the whistle on suspected fraud by employers and service providers.
The health-care industry has felt the brunt of the FCA in recent years. The Department of Justice recently announced that it recovered a record $4.9 billion from FCA judgments and settlements in last FY 2012, with more than $3 billion coming from healthcare providers accused of defrauding Medicare and other government programs. But exposure is not limited to the health-care industry. Housing and mortgage fraud accounted for the second largest area of recovery. In fact, any government contractor or entity, including nonprofits, which receives government grants or reimbursements or otherwise “does business“ with the federal government, has the potential to run afoul of the FCA.
The FCA imposes severe damages and penalties, usually far in excess of the actual damage incurred by the government. On top of the government’s actual damages, the FCA provides for a civil penalty of between $5,500 and $11,000 for each false claim, and three times the government’s actual damages, plus costs and attorneys’ fees. In extreme cases, debarment (disqualification as a government contractor) may be imposed, but more likely threatened to leverage a settlement.
What Can be Done to Minimize Risk? Companies should review operations to ensure compliance with all billing and certification requirements and all grant or contract terms and conditions. Employees should be appropriately trained and billing procedures should be updated. Internal and external audit and control procedures should be in place, routinely updated and utilized. And, because a majority of employee whistleblowers first raise their concerns internally, employers should implement a code of conduct as well as policies and procedures to encourage internal reporting of compliance concerns.
The FCA imposes liability upon any person who knowingly submits a false claim to the government, causes another to submit a false claim to the government, or knowingly makes a false record or statement to get a false claim paid by the government. The FCA also encompasses reverse false claims, where liability is imposed when one improperly avoids payment to the government, such as when an entity that receives government funds pursuant to a government contract is overpaid but fails to return the overpayment. FCA Violations To violate the FCA, a person must have submitted, or caused the submission of, a false claim with knowledge of its falsity. Knowledge is broadly defined to include actual knowledge, deliberate ignorance or reckless disregard of the truth or falsity of the information. FCA liability may attach to funds received
In addition to the federal government, private individuals called “whistleblowers” or “qui tam relators,” may bring suit on behalf of the government. In FY 2012, 647 whistleblower suits were filed and $3.3 billion of the total recoveries resulted from these qui tam suits. Whistleblowers, who can keep up to 30 percent of the government’s total recovery, often are employees of the defendant. Not only do employee whistleblowers have tremendous financial incentive to report suspected fraud, the FCA also prohibits retaliation against whistleblowers, and an employer must be careful how it responds to an employee whistleblower situation. Liability for retaliation against an employee whistleblower can include reinstatement, twice the amount of lost wages plus interest, compensation for special damages and attorney’s fees. More Aggressive Enforcement Expected With the current debate over health-care reform, cuts in government spending programs and deficit reduction,
For more information about the False Claims Act, contact Matthew W. McCullough at MacDonald, Illig, Jones & Britton LLP at 814/870-7602 or mmccullough@mijb.com.
Matthew W. McCullough is a senior partner at MacDonald, Illig, Jones & Britton LLP. His practice consists primarily of labor and employment advice and litigation for employers, as well as a commercial litigation practice involving a wide range of contract and other business disputes in state and federal courts.
February 2013 > www.mbabizmag.com > 15
OntheHill
DEPARTMENTS > Contact: Lori Joint
Mad Enough to Slam the Brakes on Federal Regulators? Dan Danner is the president and CEO of the National Federation of Independent Businesses. For more information, visit www.nfib.com.
When Randy O’Dell opens the doors of Jafe Decorating Co. each morning, he sees the faces of 40 people, each with different talents, skills and dreams. Like most small employers, he and his employees are close, almost like family and they share a future that depends on the survival of the Greenville, Ohio glass manufacturing business. Those of you who have employees or who hope to grow big enough to need others to help you build your business appreciate the value of productive employees. They aren’t just people who punch in and out every day; they are important contributors to your business and the financial foundation that holds their nation together. But President Obama’s administration is changing that. You see it in virtually every corner of your operations — new rules, new regulations, more mandates, trickier taxes and demands that you spend your time filling out nonessential paperwork. Randy O’Dell would never call an employee “Mrs. Tenthousand, five hundred dollars;” he’d say her name. But if federal regulators aren’t reined in, that might be the first thing that comes to his mind when his crew shows up for work each morning. $10,500 — that’s how much the average small business pays per employee each year to comply with government rules. Since 2005, major federal regulations — those that will cost the economy more than $100 million or more — have increased 60 percent. Over 220 were decreed last year, the highest number ever recorded. And more are on the way. Soon to spurt from the federal pipeline are another 4,226 regulations, 845 of which will have an impact on small businesses. Meeting the demands of federal regulations costs Brad Muller’s Charlotte, N.C. Pipe and Foundry Co. millions of dollars each year in staff time, equipment and programs. And that’s just one American small business. Look around your place and you can understand that when you add all the countless hours wasted with government nitpicking, and multiply that by millions, it’s no surprise that the drain 16 < www.mbabizmag.com < February 2013
on the nation’s economy diverts $1.75 trillion a year — more than 12 percent of our gross domestic product. Maddening, isn’t it? But getting mad is only the first step to finding a solution to runaway regulation. It’s time to slam the brakes on the federal government’s rule-making machine. Join NFIB’s new campaign to bring balance to Washington’s regulatory process. Get active in “Small Businesses for Sensible Regulation” today, an important effort that will feature personal stories of small businesses like Randy O’Dell’s and Brad Muller’s that excessive regulation is smothering. The future of your business and millions of others depends on this campaign.
The Impact of Regulations on Pennsylvania • 4,128 regulations could be implemented over the next four years, which would greatly impact the American economy. • $515 billion is the estimated cost of planned regulations to the economy. • 1,025,894 people who work in Pennsylvania’s major industries could be impacted by the tidal wave of regulations. • $106 billion of Pennsylvania’s gross state product (GSP) could be negatively impacted.
Small Business Facts • Small businesses have generated 64 percent of net new jobs over the past 15 years and employ just over half of all private sector employees. • Small businesses pay 44 percent of total U.S. private payroll and create more than half of the nonfarm private gross domestic product (GDP). Source: Small Business Administration
EDITORIAL > By Dianne Cunningham
Aging & Wellness
Caring for the Aging: Preparing Ourselves to Become Our Parents’ Keepers “Our society must make it right and possible for old people not to fear the young or be deserted by them,” wrote novelist Pearl Buck in My Several Worlds, “for the test of a civilization is the way that it cares for its helpless members.” For our nation at large, and those of us engaged in caring for aging parents and seniors in our community, the test is at hand. The number of Americans age 65 and over is predicted to double in the next two decades. By 2030, there will be 71 million older adults accounting for 20 percent of our total population. Currently, in Erie County, 14.6 percent of the population is 65 or older, a demographic segment comprising nearly 41,000 people, approximately the entire population of neighboring Warren County. Most sobering is the fact that 85 percent of the 10,000 Americans who turn 65 each day will require in-home caregiving assistance during their lifetimes. Chronic diseases, chronic pain, falls and related trauma, and cognitive decline are the major factors influencing the quality of life for seniors. Chronic diseases — heart disease, cancer and stroke — account for 61 percent of deaths of people 65 and older. These and other diseases, particularly diabetes, respiratory disorders and arthritis, typically result in pain, disability, and loss of function and independence. In fact, arthritis and related rheumatic conditions are the leading cause of disability in the United States, and their incidence among the elderly is estimated at 50 percent. Falls are the leading cause of deaths due to accidents, and the most cause of injuries and hospital admissions among adults 65 and older. Dementia, a collective term for numerous brain disorders — including Alzheimer’s disease — that affect
intellectual and social function and interfere with the activities of daily living, is also a pervasive threat to older adults. The National Institute on Aging estimates that as many as 5.1 million Americans may have Alzheimer’s. In Erie County, 2.2 percent of deaths are annually attributed to the disease. Available Resources On the local level we’re meeting these challenges by ensuring that seniors have access to nationally ranked acute and secondary health care, as well as community based nursing and assisted living facilities. Nevertheless, these resources must be complemented on a personal level by informed and committed caregivers providing support services in the home. “Home care” encompasses healthcare services provided by licensed medical professionals, as well as nonmedical professionals, from a licensed agency that provides personal care, homemaking and companionship services. This later group of services entails help with the activities of daily living (ADLs) such as eating, dressing, bathing and toileting, as well as instrumental activities of daily living (IADLs) such as driving, preparing meals, housework, shopping and medication reminders. Determining the Right Choice for You Choosing the best care for aging parents and other seniors is a complex process. It’s also highly personal and often emotional. However, invaluable assistance is available from a number of community resources, such as the Independent Council on Aging, a not-for-profit coalition of individuals, agencies and businesses from the public and private sectors providing services to seniors in Erie County. The Council
can help guide family caregivers and others through a list of considerations for making more informed choices about such services as home care, retirement communities, adult day centers, nonmedical caregivers, assisted living facilities, nursing homes and hospice. It is also an excellent resource for information about financing senior living and long-term care. As the number of aging in our community increases, their quality of life will become an even greater challenge to our collective and individual commitment to meeting their needs. Their futures are in our hands. In preparing ourselves to become our parents’ keepers, we’re assured positive outcomes by making knowledge and compassion our steadfast guides. For more information, contact Dianne Cunningham at Home Instead Senior Care at dcunningham@ homeinstead.com or 814/464-9200.
Dianne Cunningham and her husband Bob are owners and operators of Home Instead Senior Care, a licensed agency that helps seniors to “age in place” by providing ADL and IADL personal care services throughout Erie County. They are members of the Independent Council on Aging and the Alzheimer’s Association of Northwestern Pennsylvania Advisory Board, among other organizations.
February 2013 > www.mbabizmag.com > 17
HR Connection HEALTH-CARE LAW MAY MEAN LESS HIRING IN 2013 Many businesses plan to bring on more part-time workers in 2013, trim the hours of full-time employees or curtail hiring because of the new health-care law, human resource firms say.
About a quarter of businesses surveyed by consulting firm Mercer don’t offer health coverage to employees who work at least 30 hours a week. Half of them plan to make changes so fewer employees work that many hours.
Under the Affordable Care Act, businesses that employ at least 50 full-time workers — or the equivalent, including part-time workers — must offer health insurance to staffers who work at least 30 hours a week. Employers that don’t provide coverage must pay a $2,000-per-worker penalty, excluding the first 30 employees.
STRESS IS TOP CONCERN FOR EMPLOYEE WELLNESS, SMALL BUSINESS OWNERS SAY A recent study of more than 1,000 smallbusiness owners and decision-makers shows small-business owners’ most pressing wellness concerns include stress and employees’ sick days. High employee stress ranks No. 1.
The so-called employer mandate to offer health coverage doesn’t take effect until January 1, 2014. But to determine whether employees work enough hours on average to receive benefits, employers must track their schedules for three to 12 months prior to 2014 — meaning many are restructuring payrolls now or will do so early next year.
The national study — by Humana Inc., one of the nation’s leading health-care companies, and the National Small Business Association (NSBA) — offers some insights into the current small business wellness environment. The study found that while an overwhelming 93 percent of small-business owners consider
employees’ physical and mental health as contributors to business results, only one-third are confident in their ability to help employees manage their health and wellness. Currently 22 percent of small businesses offer their employees access to such options. Three in four say such programs enhance their profits. “As the economy continues to improve, wellness solutions likely will continue to be of interest and an increasingly important part of the employee value proposition,” predicts Jerry Ganoni, president of Humana’s small group employer segment. According to Ganoni, it’s crucial for the health insurance industry to focus on providing small-business owners with the information they need to make wellness decisions that will help to recruit and retain employees while enhancing their bottom lines.
whatever it takes and then some
Our SmileWaySM Wellness Program has activities, videos and more to help you achieve a healthy smile. • Read oral health articles • Take the SmileWay Challenge • Subscribe to the e-newsletter mysmileway.com
D E R E G U L AT E D N AT U R A L G A S
At Delta Dental of Pennsylvania, we offer dental plans that feature: • Less out-of-pocket • More dentists • Simpler process
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DEPARTMENTS > Contact: Stacey Bruce
Private Exchanges May be New Model for Health Insurance in the Future According to a recent survey by the International Foundation of Employee Benefit Plans, 84 percent of U.S. employers report they are very likely to or definitely will continue to provide health insurance for full-time employees when public exchanges are scheduled to become available starting in 2014. The reasons for doing so are because employers wish to maintain employee satisfaction and retain current employees. Employers will face a monetary penalty for employees going to the public exchange. Although the penalty may not be cumbersome at first, many employers also may feel obliged to increase employee pay in order for the employee to pay for their own coverage. Only lowerincome individuals and families will be eligible for federal subsidies to help pay for the insurance bought in a
public exchange. The employer would then be paying the penalty, paying employees more to allow them to buy their own health insurance and lose the tax deduction attached to offering benefits. To learn more, I urge you to read this month’s For What It’s Worth column, “Pennsylvania’s Businesses, Consumers Deserve More When It Comes to Public Health Exchanges” on page 3. As a result of public exchanges, many employers may start to look into private exchanges as opposed to the public exchanges. Private exchanges do not have all the cumbersome regulations and penalties attached to the public exchanges. Private exchanges typically will offer more decision-support tools and personalized help for users that likely will not be as available in state and federal government exchanges.
Private exchanges may become the new way to offer health insurance. 2013 will be a telling year as all segments prepare to venture into the next era of employee benefits. For more information about health insurance exchanges, contact me at 814/833-3200, 800/815-2660 or psmith@mbausa.org.
Patty Smith is the director of Employee Benefit Services at the Manufacturer & Business Association.
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New for 2013 Waldameer is giving a new look to the Park with the addition of the Music Express Zone. This zone includes the new Music Express thrill ride, an updated, relocated Scrambler and a new water fountain, both featuring colorful programmed LED lighting, plus a beautiful garden with large bronze sculpture.
Why have a picnic at Waldameer? • Excellent opportunity to get to know your employees and their families, and for them to get to know you. • Great way to celebrate your company’s anniversary or other milestones. • Perfect way to reward your employees for a job well done. • A picnic at Waldameer is incredibly easy to organize because we do all the work!
HR Q&A CAN WE REFUSE HEALTH INSURANCE TO AN EMPLOYEE WHO REFUSES TO PARTICIPATE IN A HEALTH RISK ASSESSMENT (HRA)? The Americans with Disabilities Act (ADA) says that health and disability related inquiries and employee medical examinations must be “completely voluntary” unless they are specifically job-related and consistent with business necessity. An informal Opinion Letter from the Department of Labor indicated that HRA participation is not considered to be voluntary if its completion is required for an employee to be eligible for an employer’s health plan or to receive the employer contribution. Based on this information, denying an employee access to the employer’s health plan is not advisable for refusal to participate.
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WHAT REWARDS CAN I PROVIDE AS PART OF A WELLNESS PROGRAM? ARE THOSE REWARDS TAXABLE? Aside from the requirement for a standards-based program that you keep rewards to no more than 20 percent of the employee-only premium, you may implement rewards as you see fit. Studies have shown that employees are most motivated by gift cards, insurance premium reductions, and cash awards in wellness programs. Any fringe benefit you provide is taxable and must be included in the employee’s pay unless the law specifically excludes it. A de minimis benefit is any property or service you provide to an employee that has so little value that accounting for it would be unreasonable or administratively impracticable. Items
of de minimis value could include a badge, coffee, doughnuts, or a company pen, for example. Cash and cash equivalent fringe benefits (for example, a gift card or savings bond) — no matter how small the amount — are never excludable as a de minimis benefit and are always taxable. Non-cash awards that are not of de minimis value generally must be included as income at their fair market value. Fair market value is considered the amount an employee would have to pay a third party for the benefit. HAVE AN HR QUESTION? GET ANSWERS! As an Association member, you can call our certified HR specialists and labor and employment law attorneys anytime for counsel on a broad range of workplace-related issues, at no charge. Call today at 814/833-3200 or 800/815-2660!
DEPARTMENTS > Contact: Stacey Bruce
Proposed Rules Address Affordable Care Act Implementation The federal government rolled out a number of proposed rules on November 20 dealing with the implementation of the Affordable Care Act (ACA). Below are two of those requirements. Wellness Program Requirements The proposed wellness rules, which would be effective for plan years starting on or after January 1, 2014, create new incentives and build on existing wellness program policies. The proposed rules implement changes in the ACA that increase the maximum permissible reward under a healthcontingent wellness program from 20 percent to 30 percent of the cost of health coverage. They also further increase the maximum reward to as much as 50 percent for programs designed to prevent or reduce tobacco use. Health-contingent wellness programs require an individual to satisfy a standard related to a health factor to obtain a reward. For example, a program may impose a premium surcharge based on
tobacco use, or may give employees a reward for having cholesterol within a healthy range. With the exception of the modification of the size of the reward, the proposed wellness regulations relating to healthcontingent wellness programs generally maintain the five requirements of the 2006 regulations. Consistent with current regulations, the proposed rules also divide wellness programs into two categories: participatory programs and healthcontingent wellness programs. Essential Health Benefits Under the ACA, health plans offered in the individual and small group markets offer a core package of items and services, known as “essential health benefits.” These benefits must include items and services within at least the following 10 categories: • Ambulatory patient services; • Emergency services; • Hospitalization; • Maternity and newborn care;
• Mental health and substance use disorder services, including behavioral health treatment; • Prescription drugs; • Rehabilitative and habilitative services and devices; • Laboratory services; • Preventive and wellness services and chronic disease management; and • Pediatric services, including oral and vision care. The benefits also must be equal in scope to benefits offered by a “typical employer plan.” For more information, please contact me at 814/833-3200 or 800/815-2660. Stacey Bruce is the HR supervisor at the Manufacturer & Business Association.
A comprehensive physical tailored to your health. AND YOUR SCHEDULE. The UPMC Hamot Executive Physical Program provides the convenience of a full list of health screening services in just a few hours — and all in one place. After a range of specialists perform individual evaluations, our doctor will provide your personalized health report on areas including: • Laboratory results • Lipid evaluation
• Chest x-ray • Pulmonary function
• General fitness • Cardiac stress test (patients over 50)
Executive physicals are conducted at UPMC Hamot. Patients receive valet parking and follow-up consultations with a registered nurse. To make an appointment, call 814-877-5481, or visit UPMCHamot.org for more information.
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People Buzz PRESBYTERIAN HOMES WELCOMES NEW SENIOR DIRECTOR, DIRECTOR OF SALES & MARKETING Presbyterian Homes recently welcomed Roberta Gray as its new senior director and Lindsey Green as its new director of sales and marketing. Gray brings nearly 30 years of experience in senior living, personal care and skilled nursing facilities, serving as a nursing home administrator since 1983. Throughout her career, Gray has earned commendations of excellence from the Continuing Care Accreditation Commission and Commission on Accreditation of Rehabilitation Facilities. She also developed innovative programs to promote staff and resident wellness, quality improvement and social accountability to better fulfill the organization’s mission. Meanwhile, Green, a graduate of the University of Pittsburgh – Bradford, brings seven years of marketing experience to Presbyterian Homes. In her new role, Green will be responsible for marketing strategy and execution as well as referral and relationship building at Presbyterian Homes communities in Erie and Fairview. CUSTOM ENGINEERING CO. HIRES MARKETING DIRECTOR Custom Engineering Company, located in Erie Pennsylvania, recently hired Edward McDermit as the company’s marketing director. In his new role, McDermit is responsible for developing, implementing and facilitating annual marketing plans for the 24 < www.mbabizmag.com < February 2013
company; planning and administering the company’s marketing operations budget; negotiating with media agents to secure agreements for translation of materials into other media; and overseeing business development activities and corporate communication activities. His duties also include the marketing activities of Custom affiliates Lamjen, Inc. and Venango Machine Company. McDermit previously worked as a marketing consultant for PSB Industries, Mikron Valve, Ropack Packaging, Avantis restaurant and as a sales and marketing specialist with Jameson Publishing (Vert Markets). He has a degree in business administration from the Erie Business Center. HBK ANNOUNCES TEAM MEMBER PROMOTIONS Hill, Barth & King LLC (HBK), Certified Public Accountants and Business Consultants, recently announced the following team member promotions: Promoted to supervisor are: Justin Buschman (Erie); Jaclyn Thomas (Hermitage); and Daniel Dunphy (Pittsburgh). Jennifer Fisher (Hermitage) has been promoted to the senior level. HBK, which ranks as the 82nd largest public accounting firm in the nation, has more than 280 professional and support staff members who serve clients in 12 offices located throughout Ohio, Pennsylvania and Florida. HAMOT HEALTH FOUNDATION NAMES NEW CHIEF DEVELOPMENT OFFICER Ann Bula has been appointed chief
development officer and president for Hamot Health Foundation in Erie. In this role, Bula will provide leadership for all Hamot Health Foundation philanthropic programs and initiatives, including fundraising, community outreach, employee and patient support, and will collaborate with the Hamot Health Foundation Board of Corporators. Additionally, she will oversee the strategic planning efforts for Hamot Health Foundation and offer executive and Board leaders counsel on matters relating to philanthropy. Prior to joining UPMC Hamot, Bula served in various capacities at the Heritage Foundation, a well-known research and educational institution in Washington, D.C. that formulates and promotes public policy. She holds a management certificate from Georgetown University, in Washington, D.C., and a bachelor’s degree in political science from Mercyhurst College. RETIREMENT SERVICES OF ERIE ANNOUNCES OWNERSHIP CHANGE The third-party administration firm Retirement Services of Erie, LLC recently announced an ownership change. Kevin L. Slocum, CFS, a registered principal with LPL Financial, is also now the principal and owner of Retirement Services of Erie. Slocum earned a bachelor’s degree from Penn State Behrend and has 17 years of experience working in the financial services industry. Slocum holds the certified fund specialist (CFS) designation from The Institute of Business and Finance and, in 2011, completed the CFP Certification Professional Education Program from the College for Financial Planning. He also has several state security registrations as well as a Pennsylvania insurance license.
DEPARTMENTS > Contact: Karen Torres
F.N.B. WEALTH MANAGEMENT ADDS PORTFOLIO ADVISER IN ERIE First National Investment Advisors, Inc., a subsidiary of F.N.B. Wealth Management, has hired David Bonner as assistant vice president and portfolio adviser based in Erie. In this role, he will execute customized investment strategies for individual, trust and institutional clients to help them achieve their financial goals. Prior to joining F.N.B. Wealth Management, Bonner served as assistant portfolio manager with HBKS Wealth Advisors in Erie, and as a portfolio analyst for Northwest Savings Bank in Warren. He earned an MBA from Virginia Commonwealth University in addition to a bachelor’s degree
in history from the Virginia Military Institute in Lexington, Virginia.
after graduating from Indiana University of Pennsylvania with a bachelor’s degree in accounting.
NORTHWEST BANK’S GENIS EARNS CERTIFIED FRAUD EXAMINER CREDENTIAL The Association of Certified Fraud Examiners (ACFE), the world’s largest anti-fraud organization and leading provider of anti-fraud training and education, has awarded Nicole H. Genis of Northwest Savings Bank, the globally preferred Certified Fraud Examiner (CFE) credential. In order to become a CFE, Genis has met a stringent set of criteria and passed a rigorous exam administered by the ACFE.
In addition, Deborah J. Chadsey has been elected to the Board of Directors of Northwest Bancshares, Inc. Chadsey is an attorney who has practiced law for 25 years. She is currently a partner in the Buffalo, New York law firm Kavinoky Cook LLP. Prior to joining Kavinoky Cook LLP, Chadsey practiced law with Lippes, Silverstein and Phillips, Lytle, both also in Buffalo, New York.
Genis is currently an internal auditor for Northwest’s corporate headquarters in Warren. She joined the bank in 2008
FLEXIBLE MOVING SOLUTIONS FULL-SERVICE TO DO-IT-YOURSELF MOVING & STORAGE
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Celebrating our 99th year in business!
Prior to being elected to the Board of Northwest Bancshares, Inc., she has served as a member of the Northwest Savings Bank New York State Advisory Board for the past three years and the Northwest Savings Bank Board of Directors since December 2011.
Cross Town Moves, Storage and Staging Store your Mini at your place or ours! 814-459-9191 Prices include delivery of a Mini to your door. Pick-up and move to new location, then pick-up of empty Mini when move is complete.
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PRSRT STD US POSTAGE PAID ERIE, PA PERMIT #199
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