Issuu on Google+




updated daily April 8-14, 2013 Vol. 28, Number 01

$2.00 ©2013 Providence Business News Inc.


Providence Business News

REEL LIFE Local indie cinemas begin the process of converting to digital.

your local source for business news in southern new england

Economic Activity

page 3


Housing: market shift to sellers? By Patrick Anderson

House hunters diving into the spring real estate market may encounter something unseen since the giddy days of the subprime bubble: a bidding war. Fueled by pent-up demand and a suddenly tight supply of houses, what has been an unqualified buyer’s market for the past four years is tilting, at least in some circumstances, back toward the seller. And it’s not just in Boston and New York. Even Rhode Island and southeastern Massachusetts real estate agents are touting a surge in multiple-offer scenarios despite inhospitable weather for the first three months of 2013. “I have lost out on three multiplebid situations with my clients and am now working with them knocking on doors to see if people want to sell their houses, because we can’t find anything on the market,” said Arthur Chapman, broker with William Raveis Rhode Island in Newport. “I did an open house that was on the market in the low $300,000s and we had 25 parties through the door. I haven’t seen that number of people at an open house in years.” Considering how far the real estate market fell after the crash, and then double dipped in 2010, any hint of a See Inventory, page 26


Exchange at forefront of changes

READY TO ROLL: Christine Ferguson, executive director of the R.I. Health Benefits Exchange, told more than 450 people at the Providence Business News-sponsored summit last week that the online marketplace for insurance will open for business Oct. 1. And while employees from small businesses will have to wait an extra year, until Jan. 1 2015, to purchase health insurance in federally run exchanges, Rhode Island will offer that choice beginning Jan.1, 2014. Pictured with Ferguson is Christopher F. Koller, R.I. health insurance commissioner.


Counseling can speed job re-entry Coaching firms prepare job seekers for success By Rebecca Keister PBN PHOTO/TRACY JENKINS

BACK TO WORK: Smithfield resident Dennis Fernandez credits OI PartnersLifocus with helping him gain the knowledge needed to re-enter the labor force.

Dennis Fernandez thought he knew how to properly navigate his job search. But when the Smithfield resident, who said he typically changes jobs every two or three years, was let go from

subscribe today! Get Providence Business News at your home or office. 855-813-5805 or

a Mansfield medical-device startup last January, he found out he actually knew very little about what it was going to take to re-enter the workforce. “I thought I had a pretty good handle on what it takes to land a job,” Fernandez said. “But I learned quite a bit. Now I’ve got a whole game plan.” Fernandez attributes his new-found

Main street

knowledge, and skills, to outplacement counseling he received from OI Partners-Lifocus Inc., a coaching and leadership-development firm with a Warwick office. The services were provided as part of his severance package from Primeria DX, a molecular-diagnostics company. See Re-entry, page 19

Focus on Professional Development

Powering research out of this world. PAGE 12



Inside: Newsmakers BizBest News Briefs Sales Moves Focus Section

4 12 13 15 16

Calendar People in the News Editorials Mackay’s Moral

22 23 24 24


Page 2 April 8-14, 2013

Providence Business News contacting us

Inside this issue

400 Westminster Street, Providence, RI 02903

Providence loan program victim of own success

Main phone: 401-273-2201 Subscriptions Services: 855-813-5805 President & Publisher Roger C. Bergenheim

Thirty-three companies, including Betaspring graduates, could be last to take advantage of federally funded city loans offered to entrepreneurs. 5


FM Global is using sports to link message and markets in its first global marketing campaign. 6 Dining Out: Cod among the tastes of early spring at Blaze. 8 Health Matters: Westerly Hospital expected to get state regulatory approval this month. 10 Health Care Summit A recap of last month’s PBN-sponsored Health Care Summit, which focused on health care reform and patient-centered care. HC1-HC12 FOCUS: Professional Development Many Rhode Island educators are embracing continuous changes in technology and trends in peer-topeer training to enrich professional development. 16 What happens when a high-level professional does their best to compartmentalize whatever personal stresses they’re facing and fails? 16 LIST: Business & Professional Associations


NEWSMAKER Joe Dziobek, president and CEO of Fellowship Health Resources, discusses the Affordable Care Act’s impact on behavioral health. 4



Student chefs show their wares Cranston Area Career & Technical Center students David Vargus, left, and Terrell Paci, right, prepare their menu starter of pesto grilled toast, homemade fresh ricotta, tomato and onion, topped with honey. They were among 34 students who competed March 28 in the 2nd annual Rhode Island Hospitality Education Foundation ProStart Culinary competition at Warwick’s Radisson Providence Airport Hotel. Students from Exeter Job Corps and William M. Davies Jr. Career & Technical High School will move on to represent the state in a national competition.

Executive poll


Copy Editor Justin Sayles Staff Writers Patrick Anderson

680-4824 680-4830 680-4828


Rhonda Miller

It’s increased 61.3%

Yes, they’re aware 74.2%

It’s decreased 19.4%

No, that’s not discussed openly 19.4%

If your company’s revenue suddenly increased by 5 percent, what would you prefer to do with the extra cash? Amp up marketing efforts 43.3%


(Energy/Environment, Entrepreneurship, Financial Services)

Researcher Lindsay Lorenz 680-4838 Contributing Writers Richard Asinof (Health Care)


Production Director Darryl P. Greenlee Production Artist Christopher Medeiros

Unsure 6.5%

Sensible 32.3%

Fax: 401-274-0670 Editor Mark S. Murphy 680-4820 Managing Editor 680-4826 Michael Mello Web Editor Emily Greenhalgh 680-4836

(Hospitality & Tourism, Education/Workforce and Non-

Do most employees know the state of company finances?

When it comes to budgeting expenses, how would you describe your company’s attitude?


Rebecca Keister

In the past few years, how has your company’s revenue changed?

It’s about the same 19.4%

Fax: 401-274-0270 Vice President, Sales and Marketing 680-4800 Christopher Santilli Events Coordinator 680-4832 Donna Rofino Marketing and Events Director 680-4818 Nancy Adeszko Senior Account Managers David C. Dunbar 680-4801 Jim Hanrahan 680-4816 Lisa Pagano 680-4806 Lauren Soares 680-4812 Account Managers Ellen Goodlin 680-4808 Advertising Coordinator Joyce Rylander 680-4810

(Government, Manufacturing, Real Estate/Development)

Money, money, money

Cautious 64.5%

An article in the April 1 issue entitled “Insured best policy when traveling” incorrectly described a vacation taken by Candy Adriance and her husband. They were traveling with two friends and a driver when the vehicle crashed in the desert outside of Mopti, Mali.


680-4860 680-4868

CIRCULATION 1-855-813-5805

ADMINISTRATION Fax: 401-274-6580 Business Manager Michelle Fiori


Hire additional staff 30%

Lavish 3.2%

Upgrade office technology 16.7%

The Providence Business News Executive Poll is a weekly survey of 70 business leaders throughout the state, representing small and large companies in a variety of industries.

Providence Business News is published weekly by Providence Business News, 400 Westminster Street, Provdence, RI 02903 (USPS 002-254) (ISSN 0887-8226) Periodical postage paid at Providence, R.I.

Raises for all 10%

POSTMASTER: Please send address changes to 400 Westminster Street, Providence, RI 02903.

Index to This week’s Featured companies 121nexus

5 Cherrystone Angel Group Coastal Medical

5 Crowne Plaza Providence-Warwick American Mathematical Society 19

5 HC2

Lee Hecht Harrison






Blaze East Side


Hasbro Children’s Hospital

Brown Family Seafood

Haven Hill Cafe


Brown University


Bryant University



Gregg’s Restaurants and Pubs 22

Blue Cross & Blue Shield of Rhode Island HC2, 26

Jane Pickens Theater

of Realtors

HC2 Massachusetts Teachers

3 FM Global

22 8


Association Mass. Board of Appeals


Maternova Inc.


Metropolitan Regional Career and Technical School


OI Partners-Lifocus Inc.



Century 21 Crossroads


CharterCare Health Partners


Landmark Medical Center Leadership Development Worldwide


and West, LLC Providence College


Rhode Island College

R.I. Department of Labor and Training


R.I. Health and Educational Building Corp.

Food Bank

Residential Properties


Rhode Island Health Benefits Exchange


Rhode Island Library Association Rhode Island Payday Lending R.I. Department of Education

The Rhode Island Foundation 14 The Washington Trust Co. 14

Tufts Health Plan

26 22 HC2

16 R.I. Health Benefits Exchange HC2

Rhode Island Community

Reform Coalition

3 Pannone Lopes Devereaux

Cable Car Cinema

for the Future of Nursing Rhode Island Association

Alektrona Corp. Avon Cinema


Rhode Island Action Coalition


UnitedHealthcare R.I. Historical Preservation and Heritage Commission 14 of New England Inc. Roger Williams University 16 University of Rhode Island

HC2 26

Salve Regina University


Seven Stars Bakery

8 Warm Center


5 Westerly Hospital


5 Wheaton College


Slater Technology Fund 13 Splitwise 11 St. Joseph Health Services

HC4, HC6 R.I. Department of Environmental of Rhode Island 11 Management 8 The Arbella Insurance Foundation 10 26 R.I. Department of Health

14 13

William Raveis Rhode Island


Yardney Technical Products


Providence Business News

April 8-14, 2013 n 3


Theaters get the picture, begin investing in digital By Patrick Anderson

Needing $48,500 for the conversion, by the end of March 681 Cable Car supFew plot twists sound more cruel or porters had come through with $54,581. “For us it would have been cost-proominous for small, independent cinhibitive,” said Cable Car co-owner Danemas than the death of film. iel Julius Kamil about the prospect of Hollywood’s decision to abandon the grainy flicker of celluloid for the switching to digital without donations. “We are tapped out from the renovation computerized clarity of digital images we did in 2010 and our own finances are is inflicting steep costs on art houses deep in here.” and drive-ins across the Kamil’s wife and thecountry, many already ater co-owner, Emily Stefbarely scraping by thanks fian, said the campaign to home cinema and the also served as a kind of refInternet. erendum on the business’ By the end of the year, importance to the commumovie studios say they nity. will stop making the 35 “If they care we will millimeter prints that mofind out and if not we will tion pictures have been find that out too,” Steffian shown on for a century, said before the campaign forcing theaters to invest was completed. in new digital projectors The move away from or go dark. film toward digital has Richard Dulgarian In New England, small been in the works for years Avon co-owner theaters without the revand affects most theaters enue to buy new digital around the world. systems, which can cost upwards of From the movie studios’ perspective, $100,000, are turning to their customers the switch is difficult to argue with. and Internet fundraising for help. Instead of having hundreds of physiFollowing in the footsteps of the cal prints of each film developed, at a Brattle Theater in Cambridge, Mass., cost of several thousand dollars each, and the Jane Pickens Theater in New- then shipped in canisters to theaters port, Cable Car Cinema in Providence around the world, digital movies are launched a successful online fundrais- uploaded and sent to theaters on a coming campaign on the website Kickstart- puter hard drive. to buy a new projector. Kamil said last year a Massachusetts

‘I am told my picture will be brighter and sharper, and the sound will be better.’



REELED IN: Cable Car Cinema co-owners Emily Steffian and Daniel Kamil in the theater, which is transitioning to digital-projector technology this year.

company called FilmTrans that had delivered prints to theaters throughout the region abruptly folded when it became clear they had no future in the digital transition. Most multiplex chains have the cash flow to absorb the new equipment and many, if not most, made the switch a long time ago. How much the switch costs each theater depends on the size of the operation and how much besides the projector, such as the sound system, needs to be changed. Kamil said until recently digital projectors have all cost around $100,000, but new models for use in smaller theaters have brought the price down to the $50,000 to $60,000 mark. The 75-year-old Avon Cinema in

Providence is also preparing to make the switch to digital. Avon co-owner Richard Dulgarian said his theater will finance its transition without asking for donations, and he expects to pay somewhere around $80,000 to complete the project. “It’s something we have to do and, I don’t want to disrespect the others, but I think it is something theaters have a responsibility to pay for ourselves,” Dulgarian said. Like many art-house-theater owners, Dulgarian hasn’t been in a hurry to make the switch and is bittersweet about abandoning film as an aesthetic choice. “I am told my picture will be brighter and sharper, and the sound will be See Cable Car, page 9

Introducing the • No Fees • No Closing Costs • No Points • 30-Day Closing Guarantee* Home Equity Loan

3.69% APR 10-year Fixed-term

Leveraging the equity in your home can be a smart borrowing option and adds an extra source of credit to help you better manage and organize your financial life. And right now, you can take advantage of our special, No-fees, No-closing costs, and No-points Home Equity Loan. Enjoy a low rate of 3.69% Annual Percentage Rate (APR), 10-year fixed-term, and, with our 30-day closing guarantee*, we’ll give you $100 back if we don’t close the loan in 30 days. *Visit for details

bank rhode isl a

10-Year Fixed Home Equity Loan Offer: Home Equity Loan (HE Loan) with a 3.69% Annual Percentage Rate (APR) for a new, 10-year BankRI loan, 1-4 units, primary residence in first or second lien position with a minimum loan amount of $50,000 and a maximum amount of $650,000. Repayment terms: A 10-year HE Loan for $100,000 would be paid in 120 monthly payments of $997.78. Payment amount does not include taxes or insurance premium. Rate requires auto debit from a BankRI Checking Account. Property cannot be listed for sale within 6 months. If a home equity loan is paid in full within (12) months of loan closing, a prepayment penalty will apply. Loans in RI are subject up to $250, but not to exceed 2% of the balance due at the time of payoff. A trust review fee may apply. Property insurance required. Flood insurance where required by law. Other rates and terms available. Higher rates may apply for longer terms. Other conditions apply; ask a BankRI representative for details. Offer valid for applications submitted from April 9, 2013 through June 30, 2013. Program Overview: BankRI guarantees to be ready to close a new Home Equity Loan within 30 days, excluding Saturday, Sunday and Federal Holidays from the date of receiving a “completed application” by an applicant(s). The 30-day period does not begin until we have received the “completed application”. Should 30 days be exceeded, BankRI will pay the applicant $100. When an application includes more than one applicant, the total maximum is $100. Refer to additional important information contained below. Only closed and funded home equity loans qualify for the Guarantee. Completed Application: A completed application is defined as an oral or written request for credit in which BankRI received all “required information and documentation” to evaluate the application for the amount and type of credit requested. Required Information and Documentation: In addition to the oral or written request for credit, required information and documentation from the applicant(s) includes but is not limited to: income pay stubs, W-2 statements, tax returns, any other type of verification necessary to substantiate income, asset verification, title verification and any other additional information requested by BankRI. Additional Important Eligibility Information: To be eligible for the 30-Day Guarantee, the application must be for a one - four family owner occupied home equity loan and must be approved and closed. Ready to Close Notification: The applicant can be notified by phone or voice mail message of BankRI’s readiness to close. When an application includes more than one applicant, only one applicant will be notified. Any delays by the applicant after being notified are not covered in the 30-Day Guarantee. Offer valid for applications submitted from April 9, 2013 through June 30, 2013.

Page 4 April 8-14, 2013


Providence Business News

ACA to encourage linking physical, behavioral health By Rebecca Keister

PBN: How will blending physical and behavioral health care help navigate the Affordable Care Act? DIZOBEK: Insurers are going to be required to offer parity when it comes to behavioral health care. That’s a good thing. There is definitely a connection between the mind and the body. When you start to integrate behavioral health into primary health care, you’re addressing the whole problem as opposed to part of the problem. When I went for my annual physical, there was a questionnaire and two questions were trying to get at whether I had any depression.

Joe Dziobek, president and CEO of Fellowship Health Resources, has, in his nearly 40-year career there, helped the nonprofit behavioral health care agency grow from $1 million to $33 million in annual revenue, and established several departments, including the Office of Peer Recovery Services, and Studio 35, a healing arts and recovery program. His most recent work has focused on expanding children’s mental-health services and integrating physical and behavioral health care services. In early March, the National Council for Community Behavioral Healthcare awarded Dziobek one of its Awards of Excellence to acknowledge his leadership and innovative and inspirational efforts. PBN: Why did you enter and then stay in the behavioral health care field? DZIOBEK: There had been some mental illness in my extended family. I remember visiting my aunt at a state hospital and just feeling kind of drawn to the idea. My game plan when I was thinking of a vocation was to do something that would make a difference. That was kind of my compass. PBN: What is the state’s behavioral health care system’s greatest asset? DZIOBEK: I think you’ve got a pool of very dedicated people working in Rhode Island. You’ve got a resource pool that has worked with people with severe mental illness and a long-term history of mental illness for a long time. By and large it’s not people who are leaving for a more lucrative field, but who are


PROVIDED FOR? Joe Dziobek, president and CEO of Fellowship Health Resources, says the No. 1 issue affecting the provider community is underfunding.

dedicated to working with people who present some challenging situations. PBN: What is the field’s biggest challenge here? DIZOBEK: There are several. I think No. 1 is the provider community is underfunded. We’ve seen a reduction in rates, and budgets, and amounts of dollars allocated. [Next], Rhode Island has prided itself as being one of the first in the nation to go down the road of health homes and that also presents problems from the perspective that there’s no experimental history to fall back on. We’re kind of going ahead and doing what we think is right, but making mistakes along the way. … I think with the Affordable Care Act kicking in, you’re going to have a groundswell almost of people who become eligible for health services who haven’t before.

PBN: Fellowship Health Resources runs a peer-recovery program. How effective is this? DZIOBEK: It’s extremely effective. We refer to it as people with lived experience. The person who runs the services, Bob Russo, is a graduate of Notre Dame and is extremely intelligent and capable. He’s an extremely effective leader and administrator. He also happens to have a diagnosis of mental illness.

wake-up call. PBN: What other qualities are necessary for nonprofit leadership? DZIOBEK: In a CEO position, you have the opportunity to work with a number of people over the years. My philosophy has always been to attract the best and the brightest to work in whatever position the organization has, especially at the senior level. Once you have them onboard, you have to listen to them. … I believe honesty and integrity go a long way. I’m honest and straightforward. If I give my word, I keep my word. PBN: There’s an identified need for more child behavioral health care workers. How can Rhode Island attract them? DZIOBEK: Pay rates in the field are not competitive, to be honest with you. What’s really driving service delivery now is how much money is there. I don’t think that yields the same kind of beneficial results [as before]. I think people who enter this field today do so with the best of intentions but I think Rhode Island has to create a better [environment] to make it more attractive for organizations to do the work that we do. I think people need to feel there is a real partnership between all parties involved. There’s a lot of tension in the system and I think that can create some difficulty in attracting people. There’s so much change right now. n

There’s a lot of tension in the [behavioral health care] system.

PBN: You once lost funding for programs in Massachusetts and to keep the organization going, bid on services in other states. How important is it to think outside the box in executive leadership? DZIOBEK: We didn’t stand around wringing our hands and saying “that’s not fair.” We said we needed to find new markets and reduce our dependence on Massachusetts. Today we’re twice the size we were back then but we have less risk associated with those contracts. It was a

INTERVIEW Joe Dziobek Position: President and CEO of Fellowship Health Resources Background: Dziobek has been at Fellowship Health Resources since 1975, beginning as a mentalhealth counselor at Westwick House, a residential group home. He became director of programs in 1983, and president/ CEO in 1984. Education: Bachelor of Science, psychology, Northeastern University, 1974; Master’s of Science, social work, Rhode Island College, 1983 First Job: Caddy at a Seekonk country club Residence: Lincoln Age: 61

As hands-on now as we’ve ever been. In an ever-changing industry, one thing that never changes is our hands-on personal service. Call us and we’ll guide you through all the options and find the right solution at the right price. The result: better, more cost-effective printing that helps you to compete. ◆ 401.434.8130 offset printing ◆ digital printing ◆ large format ◆ direct mail

Providence Business News

April 8-14, 2013 n 5

economic development

Suspended city loan program victim of own success By Patrick Anderson

121nexus used its $50,000 Providence Innovation Investment Program loan to hire its first employee and four interns to develop a mobile voter-data system in time for the 2012 presidential election. Splitwise used its city loan to pay rent, hire an employee and keep improving its mobile check-splitting application until the company’s first round of private financing kicked in. “It came at a really important time for Splitwise, months before we were going to be able to close any private investment,” said CEO Jon Bittner about the Providence investment. “In our case it also helped give other investors – friends, family, angels – more confidence in us, because they realized they were investing with the city.” Splitwise and 121nexus were among 33 companies – including most graduates of the last two classes of the Betaspring startup accelerator – to take advantage of the federally funded city loans offered to select entrepreneurs who agreed to stay at least one year in Rhode Island’s capital. They could also be among the last. The city suspended the loan program, a victim of its own success, late last month after it had burned through $650,000 more than the $1 million set aside when it was launched in the fall of 2011. Although $50,000 loans don’t sound significant in economic-development terms, t h e y ’ v e played a big part in the rapid Foster Sayers growth of 121nexus CEO Betaspring and the startup hub thriving at its Chestnut Street headquarters. With cities and startup accelerators across the country competing to attract entrepreneurial talent, the city money gave Betaspring a major edge it’s now scrambling to replace. And as a public investment in the technology sector, the Innovation Investment loans represented a stark strategic alternative to job-creation incentives for large companies, such as the 38 Studios LLC investment, that are often a feature of state economic-development efforts. “I think it is important not to underestimate the [significance] of $50,000 for startups companies: it is a bridge fund that lets them settle in Providence,” said Melissa Withers, Betaspring chief of staff. Withers said of the 31 Betaspring companies that received city financing over 18 months, none have left the city, and none, as far as she knows, have folded yet. Although the long-term success rate for technology startups is low, those 31 companies have already raised $4.6 million in private capital, Withers said. Officially, Providence Mayor Angel Taveras has paused the city loan program to study it, but it’s difficult to imagine the loans returning as they were. Whether for better or worse, they never worked exactly as intended. When it was launched, the Innovation Investment Program was designed

‘When we found we were able to get $50,000 to stay, we decided to stay.’

to piggyback on the investments of three organizations: Betaspring, Slater Technology Fund and Cherrystone Angel Group. Any company backed by one of those three was eligible for a city loan under the premise that leveraging the experience and judgment of these specialized groups would have a greater impact than the city trying to invest on its own. But because Betaspring is so different from the other two, working with far more companies at much earlier stages of development, graduates of the accelerator snapped up virtually all the money. Of the two city loans to non-Betaspring companies, only one – to Slater-backed Alektrona Corp. – actually

followed an investment from one of the other two participating organizations. The other Innovation Investment loan to a non-Betaspring company went to Maternova Inc. because city officials thought it was backed by Slater, said Ann Gooding, director of communications for the Providence Department of Economic Development. Maternova was actually supported by an investment from Social Venture Partners Rhode Island. Cherrystone Angel Group never had a company that it invested in take advantage of the program. “We never came across a deal in Providence that would have qualified,” said Peter Dorsey, executive director of Cherrystone Angel Group, which in-

vests in early-stage companies. Dorsey said the $50,000 could have been a useful addition to a financing package if Cherrystone had invested in a company that fit the Providence residency requirement while money was still available. At Slater Technology Fund, not long after the Alektrona funding round last February, Managing Director Richard Horan inquired about financing for another company but was told the city money had already run out. “Capital formation for seed and early-stage companies is a scarce resource and any sort of reliable source of funding to build these ventures is valuable,” Horan said. “We followed with interest the announcement of the program and See LOAN, page 9

Commercial Banking

Can we take care of all your commercial banking needs?

Just ask Atrion.

Atrion, Washington Trust customer

As Rhode Island’s largest independent bank, Washington

RI’s Bank of Choice for Commercial Banking • • • • •

Financing up to $20 million Comprehensive cash management services International banking capabilities Wealth management services for executives Bank-at-work convenience for employees

T r u s t e d

Trust combines comprehensive commercial banking services with a level of personalized attention that bigger banks simply can’t match. Whether your business needs financing up to $20 million, cash management solutions, or international banking capabilities, find out why we’re the bank of choice for leading organizations statewide, including Atrion. Call James Hagerty, Executive Vice President & Chief Lending Officer, at 401-348-1288 or visit Member FDIC.

A d v i s o r s

S i n c e

1 8 0 0

Providence Business News

6 n

April 8-14, 2013

financial services

FM Global using sports to link message, markets New ad campaign focuses on ‘resilience’

those markets, and their related businesses, as well as public-sector clients like universities and hospitals, add up to FM Global clients in 130 countries. By Rhonda Miller “These markets are coming together more all the time as the world becomes Hurricanes, tornados, floods, wild- a smaller place, especially because of fires and other natural disasters claim the availability of technology and the lives and leave in their wake the de- speed of communications,” said Butler. struction of businesses and livelihoods “So we decided it’s time to speak with around the globe. And the growth of one voice.” FM Global’s message is: “When complex international supply chains you’re resilient, you’re in business.” means these disasters cast Market research a wide economic net. brought the resilience The convergence of message into clear focus, these elements – natural even though FM Global, disasters and the global one of the world’s largest marketplace – is the tercommercial property inritory where Johnstonsurers, has been helping based FM Global has deRoberta Butler businesses prevent, deal veloped a new marketing FM Global senior with or recover from distrategy focused on resilvice president for marketing saster since it was foundience. ed in 1835, Butler said. “It’s our first global Research also defined the theme of marketing campaign,” said FM Global Senior Vice President for Marketing the message: sports. “We have not used sports before,” Roberta Butler about the marketing project launched April 1. “As an Amer- Butler said. “We took a step back and ican-based company, we’d run market- put a global team together to develop a ing programs in the U.S. Then we’d go single voice for FM Global that we can and develop something in sync with the use in all of our key markets, ways of depicting resilience. The universal lanlocal markets.” The company’s major markets are guage of sports rose right to the top.” Still images and videos include the U.S., Canada, the U.K., France, Germany and Australia. But companies in men’s and women’s soccer, rugby and

‘We decided it’s time to speak with one voice.’


GETTING BACK UP: FM Global’s first global marketing campaign is using sports images to personify the meaning of resilience and give examples of overcoming obstacles and challenges.

boxing. The images personify the meaning of resilience and give examples of overcoming obstacles and challenges. “Resilience prepares,” says one of the segments of the marketing campaign that features a boxer. “Any great boxer knows resilience is an attribute acquired through years of training. For more than 175 years, our scientists and engineers have tested innovative ways not only to help prevent property loss, but also to help businesses bounce back stronger should one occur.” With the international strategy of one voice, the message, “When you’re resilient, you’re in business,” will appear in English, Butler said. For print

ads in Germany and France, the text, other than the main message, will run in the local language. Seizing the international concern about the frequency of natural disasters, and the possible relation to climate change, is a clever strategy, said Bryant University assistant professor of marketing Srdan Zdravkovic. “I find it very interesting because their whole mission is to provide insurance solutions and property-loss prevention,” said Zdravkovic, who teaches international marketing. “They’re going after some of these global events.” The fear factor often used in advertising, in this case, fear of loss, is a major See FM Global, page 8

It’s picnic Time! char broiled burgers

Ice Cold Lemonade

bbq ribs

Down Home BBQ chicken

April 8-14, 2013

Providence Business News n 7

Efficient homes could save more than energy If you buy or own an energy-efficient house, does this make you less likely to default on your mortgage? Is there a connection between the monthly savings on utility costs and the probability that you’ll pay your loan on time? A new study by the University of North Carolina suggests that the answer to both questions is a resounding yes. Using a massive sample of 71,000 home loans from across the counKenneth R. try that were origiHarney nated between 2002 and 2012, researchers found that mortgages on homes with Energy Star certifications were on average 32 percent less likely to default compared with loans on homes with no energy-efficiency improvements. Energy Star homes, which can be renovated dwellings or newly built, provide documentable savings of 15 percent or higher on utility bills compared with houses containing minimal energy improvements. Researchers took pains to statistically separate out factors other than energy-efficiency savings that might account for the strikingly different performances by borrowers on their mortgages. They controlled for house size; age of the house; neighborhood income levels; house values relative to the area median; local unemployment rates; borrowers’ credit scores; loanto-value ratios; electricity costs; and even local weather conditions. The sample came from a giant mortgage data repository managed by CoreLogic, a California-based company that has access to millions of loan files and payment records supplied by major banks, lenders and servicers. The average sale price of both the energyefficient homes and the others was approximately $220,000, removing the possibility that the energy-efficient properties were high-end houses purchased by families who are less likely to default. So why the big difference in payment performance among borrowers during the roller-coaster decade that saw the mortgage bubble, the housingprice boom, the calamitous bust and the start of a recovery? To Cliff Majersik, executive director of the Institute for Market Transformation, a Washington, D.C., think tank that sponsored the research, there’s no question. “It stands to reason,” he said, “that energy-efficient homes should have a lower default rate because the owners of these homes save money on their utility bills, and they can put that money toward their mortgage payments.” In light of the superior performance of mortgages on certified energy-saving houses, what discounts or preferences can borrowers or owners of such houses expect at the bank when they go in for a loan? After all, a key component of the interest rate you pay on a mortgage is compensation for default risk – that is, the possibility that you’ll go belly up, walk away, end up in foreclosure and produce big losses for the lender or bond investor. For example, if you have a low FICO credit score of 620, you present a high risk of nonpayment to the

The Nation’s Housing

lender and are virtually guaranteed to be charged a higher rate. On the other hand, if you have a platinum 800-plus FICO score, you’re likely to be quoted the best rates and generous underwriting terms – all because your statistical risk to the lender is lower. But here’s the problem with the way the mortgage system treats energy efficiency: Under current practices, you’d be hard pressed to find any lenders who’ll give you a better rate quote on your mortgage application, even if you showed them your Energy Star or HERS certifications along with documentation that your house saves buckets of money on utility bills. The authors and sponsors of the study think lenders should start fac-

toring energy efficiency into their underwriting. They’ve also begun meeting with officials from the mortgage industry, Congress and government to suggest how to do it: If not a lower interest rate, they argue, then at least give loan applicants who can demonstrate significant energy bill savings a break on upfront fees, debt-to-income ratios, or maybe some wiggle room on minimum down payments. It just makes sense. Bob Sahadi, a mortgage-industry veteran who now works for the Institute for Market Transformation, said in an interview that lenders “have wanted hard evidence” that energy savings reduce defaults. Now they’ve got it.

Steve Baden, executive director of RESNET, a national nonprofit group that helps homeowners with energyefficiency improvements, takes the issue one step further. He argued that if mortgage lenders – confronted with statistical proof that borrowers who buy houses that save on energy outlays are at lower risk of default – decline to start recognizing this fact with more favorable pricing, they “are indeed overcharging consumers.” Sounds right. n Ken Harney is a member of The Washington Post Writers Group. He can be reached at

Providence Business News

8 n

April 8-14, 2013

Cod among the tastes of early spring at Blaze The first taste of spring, at least this spring, is not found in a meadow just coming into bloom, or at dawn on a misty pond with the new season as fresh as the promise of the coming day. It is in a city neighborhood where a chef-restaurateur is starting the season as she ended the last one, preparing seafood fresh out of local Bruce Newbury waters. Chef Phyllis Arffa owns Blaze East Side located on Providence’s Hope Street Restaurant Row. The neighborhood is fast becoming an upscale, retail row as well. Her patrons, like those of the specialty shops and the other eclectic eateries on the street, care about where their food comes from, as well as how it is prepared. All winter long Arffa was pleasing her customers with native cod she gets from another local entrepreneurial business, Brown Family Seafood. Since the first of the year, Blaze’s diners have been treated to Narragansett Bay cod that was caught by Capt. Christopher Brown just hours before from the still-icy waters. According to Chef Arffa, cod is relatively plentiful year round, but this time of year has the offshore waters more or less to itself. When summer warms the ocean later this year, mahi

Dining Out

mahi and tuna will migrate north and join the school. But for now the catch of the day is cod, along with monkfish and scup. Arffa buys from Brown Family Seafood almost exclusively. Brown supplies her with whole fish and she expertly filets them, turning the entire cod into fish and chips, New England cod chowder or thick, cut cod loins, which accentuates its flaky texture and which she serves with flavorful and unusual side dishes. Brown Family Seafood could be called the second generation of the practice known as “boat to table.” Formerly with another company begun by fishermen and founded to shorten the time between boat and table, Chris Brown struck out on his own, delivering orders directly to restaurants and retailers with the help of some family members. The idea is for the seafood to pass through the fewest number of hands between being caught and being delivered to the restaurant. Actually, the process is a bit more involved than that. Today’s food-safety regulations that were an outgrowth of the industry’s best practices, added steps, personnel and delays between bay and restaurant. All seafood sold commercially must be registered with the R.I. Department of Environmental

Management. It was not economically feasible for a fisherman to handle such administration until technology caught up and made it possible to complete the job while still out at sea. A fish that was pulled out of the water in the afternoon can be on our plate at a local restaurant by dinner time. In fact, Brown Family Seafood has landed fish off Rhode Island and had it in a restaurant in Las Vegas within 24 hours. “It’s the freshest, most beautiful stuff! I love it,” said Arffa recently on my radio show about Capt. Brown’s catch. Depending on the species of fish Brown brings to Blaze, she sometimes presents it as a “special,” which gives servers the opportunity to shine and describe the source ingredient as well as its preparation. It may be flounder stuffed with seafood and pan seared with a light sauce to bring out the delicate flavor. Another night it may be monkfish, referred to as “poor-man’s lobster.” Arffa has other plans in the works for this spring. She is planning to introduce weekend brunch, which is a continuation of two traditions she and business partner Christine Edmonds have had since they opened their first restaurant nearly 20 years ago. Haven

The idea is for the seafood to pass through the fewest … hands [before delivery] to the restaurant.

Hill Cafe in Cranston was known for its breakfast menu created by the two women who put their skill as bakers to expert use. The tradition continued when the team opened Blaze in 2006. As the menu was tweaked to reflect changing tastes of the neighborhood, the breakfast menu became brunch, centered around the most popular day to enjoy that weekend midday meal, Mother’s Day. The Blaze Mother’s Day brunch is an event looked forward to with great anticipation in the neighborhood and far beyond. Beginning this May, Arffa will serve weekend brunch every Saturday and Sunday morning. Local farm-to-table ingredients will play a large role on the menu, from eggs in a variety of Benedicts to Portuguese sweet bread and other baked products from Seven Stars Bakery, which has a location a few blocks down Hope Street. With the emphasis on sourcing her ingredients from local farms and Capt. Brown’s fishing fleet, Phyllis and Blaze are ushering in spring with its promise of warmer days and the return of nature’s yield from sea, farm and field. n Bruce Newbury’s Dining Out food and wine talk radio show is heard Saturdays and Sundays on WPRV-AM 790 and stations throughout New England. He can be reached by email at

MetaCoMet Country Club FM Global from page 6

• Donald Ross Design • Located 5 minutes from Downtown Providence • Top conditioned course • League and tournament play

JOIN US Melissa Trapp

Marilyn Walsh

Senior Vice President Investment Sales Manager Bank Rhode Island Member since 2006

Special memberships now available Senior Vice President Human Resources Care New England

Individual and Corporate

Member since 2001

For More Information Call At 401-438-1122 ext. 4 Or Visit Us At

concern for global businesses, he said. “This time is full of opportunity, but it’s also full of uncertainty. You’re heavily dependent on your supply chains. So as I interpret FM Global’s campaign, they’re saying, ‘We’re here to provide you with a safety net,’ ” said Zdravkovic. “That would help keep companies from being in a position like the car manufacturers when the tsunami hit Japan and they weren’t able to manufacture because they couldn’t get paint from some of their suppliers,” he said. Timing is a strong and critical element in FM Global’s marketing campaign, said Zdravkovic. “They’re using the latest weather patterns to promote this message and saying essentially, ‘we can help,’ ” he said. “I am not an expert in insurance, but we live in a global environment where supply chains are spilling over the borders. It’s impossible to make a cereal bar without ingredients from all over the world. “And, of course, sports is a nice touch because sports is all about resilience,” said Zdravkovic. Citing the competitive nature of the marketplace, Butler declined to give the cost of the marketing campaign. But there’s one thing that’s obvious about the campaign, she said. “The love of sports and team loyalty – I don’t think it matters where you live in the world,” Butler said. “The sports might vary from market to market, but the interest and intensity is in all markets.” n

April 8-14, 2013

Loan from page 5

tapped into it for one company. We will follow the developments and see if they find more capital.” By last June, the city had already spent the $1 million initially set aside for the Innovation Investment Program, but wasn’t ready to stop the program, which is managed by the Providence Economic Development Partnership. So the city tapped into the partnership’s revolving loan fund, which is funded through the same U.S. Housing and Urban Development grants as the Innovation Program, for $650,000 to finance the next round of Betaspring startups. It was only four weeks before another 15 Betaspring companies would have been eligible for the $50,000 loans that the city froze the program to evaluate its effectiveness and whether the current Betaspring-heavy structure is optimal. “At the beginning there was no understanding of who would come through the door and the loans were open to all three [organizations],” Gooding said. “Our expectation was that we would receive interest from all three entities. We didn’t know that so many Betaspring companies would take it. “The mayor is very interested in seeing entrepreneurs grow in Providence and stay in Providence, but we want to be able to justify how the money is spent,” she added. As is often the case with public economic-development investments, evaluating the effectiveness of the Innovation Investment loans promises to be challenging. Of the 33 companies to receive loans,

Cable Car from page 3

better, and I will benefit,” Dulgarian said. “But I like 35 millimeter and have not seen enough digital to make a comparison.” “It might be the difference between a compact disc and vinyl records,” he added, using the analogy most connected to the switch. “The slight graininess to the film stock is something I am used to but might not be missed.” As a sign of his attachment to his old projector, a hulking, mid-century piece with chrome and curves, Dulgarian said he is going to keep the unit around just in case. Perhaps a bigger concern, and not just at small, independent cinemas, is what happens to projectionists, who aren’t needed to spool reels and monitor the picture anymore. With digital, entire multiplex programs could be run from a laptop in an office block. Dulgarian said the Avon has eight part-time projectionists and he has offered to keep them on to do other tasks at the theater, but none have expressed any interest. “It’s sad – I usually have the most in common with them,” Dulgarian said about the projectionists. “I will probably keep them on at least for a transitional period, because even with digital someone has to be around in case something goes wrong.” At the Jane Pickens Theater in Newport, a converted church that first started showing films in 1919, a Kickstarter campaign successfully raised $61,351 from 535 backers between Thanksgiving and Christmas for a new digital projector and sound system. It is scheduled to be installed in mid-March. Jane Pickens owner Kathy Staab

Providence Business News 12 of them have not filed required monitoring reports meant to update the city on their progress. Gooding said the city is not aware of any companies having left the city or folded, but acknowledged that officials don’t know a great deal about what some of them are doing. Companies that took a city loan have the option of paying it back with interest or converting it into equity, with Providence getting preferred stock at a 20 percent discount. Considering the fledgling nature of most Betaspring companies and how many have scant revenue, the equity route is likely to be popular and is automatic when startups raise $100,000 or more of new private money. Gooding said no companies have begun paying the city back yet, but the reports that have been filed point to at least 46 new hires from loan recipients. If only one of the startups who took the city loan hits it big, it could easily pay back the investment on the rest, but it could be years before anyone knows if that will happen. But even if that doesn’t happen, the investment could pay off for the city by attracting entrepreneurs who wouldn’t come here, or stay here, without it. “We had decided we would move to Providence for three months and when we found we were able to get $50,000 to stay, we decided to stay,” said 121nexus CEO Foster Sayers. Withers said Betaspring will wait to see what the city will do with the Innovation Investment Program and will also consider outside funding sources to replace some of what has dried up. “This program helped us get to critical mass really fast,” Withers said. “We have created a legitimate entrepreneurial community.” n noted that the theater, which she took over in 2001, has been a part of each major technical evolution in cinema, from silent films to talkies, reel-to-reel to platters, and now digital. In a nod to history, Jane Pickens is showing “Singing in the Rain,” about the silent film transition to sound, and “Cinema Paradiso,” about the friendship between a boy and a projectionist. “We have gone through all the different changes over the years as technology has shifted and this is the next stage in the evolution,” Staab said. Staab said the two projectionists at the Jane Pickens have other jobs that support them and told her they will be alright without the part-time work. At the Cable Car, Kamil said he will keep the theater’s four projectionists employed in other roles. The cinema has added beer and wine, and its café now accounts for 60 percent of revenue. Not having to pay projectionists should save cash-strapped theaters some money, as will the lower shipping costs of a hard drive compared with film canisters. But Kamil at the Cable Car expects most of the savings from digital conversion will stay with the movie studios, which will keep charging theaters the same amount for each film. With so many entertainment choices available thanks to streaming video and services such as Netflix, Kamil said independent cinemas have had to diversify offerings – many are expanding live performances – and offer things people are unlikely to see elsewhere. “One of the things we are fortunate for is, because our revenue streams are diversified, we can take more programmatic risks like documentaries, music, and a range of subject matter, from art to politics, that would not run in a major theater,” Kamil said. n n 9

Included: Superior service from a Type
















At Webster, we care about helping local businesses succeed. That’s why we provide accessible financing that your business needs to achieve its goals. Talk with us today and together, we’ll find a way to make it happen. For more information about our asset-based financing solutions, contact Charlie Ciovacco at 617.717.6852, or go to for an application. NEW YORK






Business Credit


All credit facilities are subject to the normal credit approval process. ©2013 Webster Bank, N.A. Member FDIC. The NYSE ticker symbol of WBS is assigned to Webster Financial Corporation and does not constitute an offer to buy or sell securities by the Company, All rights reserved. its subsidiaries or any associated party and is meant purely for information purposes. Webster Business Credit Corporation is a subsidiary of Webster Bank, N.A. The Webster Symbol and Webster Business Credit are registered in the U.S. Patent and Trademark Office.

Passion - Ciovacco Studio Number: 015102013 Ad Code: WFC-WBC-3365

03/29/13 GD: Jessie PBN

Size: 1/4 Page (4.875” x 6.75”) Color: BW MM: Joanne Renna

Attention Rhode Island Employers! 2013 Annual Incumbent Worker Training Grants Funds Available for Employee Training The Governor’s Workforce Board is pleased to announce the release of $1.1 million to fund Incumbent Worker Training that helps RI companies build and retain a highly-skilled, high-performing workforce. Unlike smaller Express Grants, which offer up to $5,000 in matching training grants on a rolling basis, the Incumbent Worker Training Grants offer up to $40,000 in matching training grants and are offered on an annual basis. Rhode Island for-profit and not-for-profit organizations (except those that received an Incumbent Worker Training Grant in 2012) may apply if they currently contribute to the Job Development Fund. The RFP may be downloaded at A Pre-Proposal Conference will be held on Monday, April 22, 2013 at 8:30 AM at the Community College of RI (Flanagan Campus), 1762 Louisquisset Pike, Room 2706, Lincoln, RI. Attendance is highly recommended. GWB staff will review the RFP in detail. To register, contact Dan Brown at 462-8823 or Please bring a copy of the RFP with you. For interpreter services, call TDD (401) 462-8006 three days prior to the meeting.

Proposals are due on Friday, May 10, 2013 no later than 4:00 PM at the Governor’s Workforce Board, 1511 Pontiac Ave., Building 73-1, Cranston, RI 02920. For more information, please call (401) 462-8823. Lincoln D. Chafee, Governor

Constance A. Howes, Chair

TTY via RI Relay 711 / Equal Opportunity Employer/Program Auxiliary aids and services are available upon request to individuals with disabilities.

Page 10 April 8-14, 2013


Providence Business News

Westerly Hospital sale OK expected this month By Richard Asinof


Contributing Writer

f all goes as expected, Westerly Hospital’s sale for $69 million to Lawrence + Memorial Hospital of New London, Conn., will be approved by Rhode Island state regulators this month, W. Mark Russo, the court-appointed special master, told Providence Business News. “I hope to have regulatory approvals by the middle of April,” said Russo, speaking after a brief public hearing March 27 at the Westerly Middle School during which only two people testified. “I would suspect that we would close within 30 days after that. … I don’t see any last-minute snags on the horizon.” The public hearing, one of two back-to-back sessions held that day, sought public comment from Westerly residents about the pending sale. The hearings were conducted the R.I. Department of Health and the attorney general’s office, the two state agencies charged with overseeing the sale of hospitals under the state’s Hospital Conversions Act. Jodi Bourque, Rhode Island assistant attorney general, opened the hearing by saying to a mostly empty auditorium: “We’re here to listen.” After brief statements from Russo, R.I. Attorney General Peter F. Kilmartin and Dr. Michael Fine, director of the R.I. Department of Health, only two residents stepped forward to offer comments. In contrast, similar public hearings held in April 2012 at Woonsocket City Hall on the proposed sale of Landmark Medical Center to Steward Health Care drew an overflow crowd of several hundred Woonsocket residents. However, after receiving approval by state regulators, Steward backed out of the deal in September 2012. A new suitor, Prime Healthcare Services of Ontario, Calif., is now pursuing the purchase of Landmark. The first Westerly resident to speak, Steven Hartford, Westerly’s town manager, put a positive spin on the low turnout. Hartford said the low attendance at the hearing was a sign that most people were “comfortable” with the sale, even


LIFE CHANGES: One controversial change under the merged entity is that Westerly Hospital will no longer maintain its maternity services, a result of declining births at the hospital as well as financial difficulties.

if they were “frustrated by the reality” cal staffs and tax status. One controversial change under the that their acute-care community hospital could no longer financially sustain merged entity is that Westerly Hospital will no longer maintain its maternity its operations by itself. “We understand that a partnership services, a result as much due to changhad to be made, and this is the best ing demographics and the declining possible partnership” available, Hart- number of births at the hospital as its ford said. The sale, he financial difficulties. continued, “is preserving Richard Sorensen, the only other person to testhe hospital in the best tify at the hearing, praised possible way in a rapidly Westerly as a “wonderful changing health care environment.” haven to retire in.” SorenHartford also praised son claimed that he was “the first baby boy, along the work ethic of Russo in helping get the deal done. with his twin sister,” to be Under the pending purborn at Westerly Hospital chase agreement, Lawin 1940. rence + Memorial will Sorensen urged the regDr. Michael Fine assume $22 million of ulators, the special masR.I. Department ter and the state’s health Westerly Hospital’s debts, regulators to find a way invest about $6.5 million of Health director in the first two years to to reconsider the decision support the hospital’s operations and the close the maternity services. spend another $30 million in upgrade The sale of Westerly Hospital promthe hospital’s infrastructure. Lawrence ises to be the first of four pending hospi+ Memorial and Westerly hospitals will tal transfers in Rhode Island to be comhave the same corporate parent, but pleted, according to Kilmartin. they will have separate licenses, medi“We are now considering our fourth

‘We don’t really have tools to shrink or change hospitals.’

conversion,” Kilmartin told PBN. In addition to Westerly Hospital, he continued, “we have Landmark, Care New England and Memorial, and CharterCARE. The only completed application is for Westerly,” which he expects to be approved. After the hearing, Fine praised the collaborative work done on the sale of Westerly Hospital. “We’re all working hard,” he said. “It’s a great collaboration. We’ve all been thinking together and learning from each other.” Everyone, he continued, “wants to do what’s right for the health and safety of Rhode Islanders. We understand the General Assembly’s perspective about financially distress hospitals.” On March 19, the state’s Health Care Planning and Accountability Advisory Council sent out a draft report to stakeholders, with the final version to be presented to the General Assembly, assessing Rhode Island’s current and future health care system’s inpatienthospital capacity. The report, prepared by The Lewin Group, created a “Bed Need Model” to provide planning guidance to the state on the ideal number, location and type of hospital beds that will be need through 2017. The model also creates a methodology to estimate the cost of excess capacity – including an estimated projected excess capacity of more than 200 hospital beds in Rhode Island in 2017. When asked about the draft report and how it plays out with the pending sale of Westerly Hospital, Landmark Medical Center and the mergers of Memorial Hospital with Care New England and the recently announced proposed merger of CharterCARE with Prospect Medical Holdings Inc., a forprofit California company, Fine said he was not sure about the report’s immediate impact. “We don’t really have tools to shrink or change hospitals,” Fine continued. “As to whether we should have those kinds of tools or not, that’s a call for the General Assembly.” n

Providence Business News

April 8-14, 2013

Education News Briefs

13 PC teachers participating in trial iPad program PROVIDENCE – Thirteen Providence College professors are taking part this semester in a trial program to incorporate Apple iPads into classrooms to allow them to move about freely while lecturing and to let students access recordings or notes after class. The Academic Media Services and the Information Technology departments outfitted five classrooms with an Apple TV, which wirelessly connects an iPad to a projector. In order to test the iPads in as many environments as possible, the classrooms differ in setup and purpose. Professors using the iPads include those teaching theology, accountancy, global studies, engineering/physics/ systems, chemistry and biochemistry, foreign-language studies and history. “A few professors came to us wanting to try this. The idea came from the faculty,” said Siobhan Ross Humphries, coordinator of the Instructional Technology Department program. “There’s a lot less sitting and just taking notes in class. Students can be more involved now.” If students and professors involved in the trial program give a positive review, the number of classrooms equipped with the iPads and Apple TVs will be expanded next semester.

Salve announces R.I.’s first ABA master’s NEWPORT – Salve Regina University has announced a new, 36-credit master’s degree in applied behavioral analysis, the first program of its kind in Rhode Island. The program will train students in what the university called one of the fastest-growing professional areas in psychology. “There is a desperate need for trained ABA professionals,” said Sheila Quinn, the university’s graduate director in psychology. The university is currently enrolling students for the program’s fall 2013 classes. The program incorporates six master’s-level courses and practicum experience required by the Behavior Analyst Certification Board to sit for the national certification exam. Graduates would be prepared to work in a variety of settings, including law enforcement and corrections, business, hospitals and treatment centers. Applied behavior analysis is a systematic approach to behavior change that examines variables that influence social behaviors.

RILA backs financial literacy library series PROVIDENCE – The Rhode Island Library Association will celebrate Money Smart Week at Your Library April 20-27 with a series of financial-literacy programs at participating libraries. The public-awareness campaign was started in 2002 by the Federal Reserve Bank of Chicago and the American Library Association. The 2012 National Financial Capability Study, by the Financial Industry Regulatory Authority Investor Education Foundation, found that 67 percent of Rhode Islanders have difficulty covering expenses and paying bills and that only 36 percent of Rhode Islanders have emergency funds.

“With statistics like these, it’s no wonder people are concerned that they’ll never be able to retire,” said Julie DeCesare, librarian at Providence College and co-coordinator of Money Smart Week, in a statement. Topics at this year’s Money Smart Week include family budgeting, retirement planning, money tips for kids and college students, and fraud and identity theft. For a complete list of programming, visit RILA is a professional association of librarians, library staff, trustees, and library supporters.

New Wheaton business major offers internships NORTON – Wheaton College has established a new major in business and management aimed to prepare students as future organizational leaders. It will offer internships, which will be required as part of the program, to students through affiliations with business and nonprofit organizations. “This is a comprehensive and novel approach to the study of business and management that takes advantage of the intellectual strength and range of the liberal arts,” said Provost Linda Eisenmann. “The study of business may not be considered a traditional discipline within the liberal arts, but the design of this program fits Wheaton perfectly. … Our emphasis on cross-disciplinary study provides a foundation that will help us to offer an outstanding course of study in business.” Wheaton College President Ronald Crutcher said in a statement that the major also will address “the nation’s need for a workforce of skilled and flexible learners who can adapt to a rapidly changing, technological and global society. “In survey after survey, business leaders across the country consistently say that they want to hire employees who possess the critical thinking, communication and creative, problemsolving skills that liberal arts study emphasizes,” Crutcher said.

Met breaks ground on East Bay campus PROVIDENCE – The Metropolitan Regional Career and Technical School broke ground on the Paul W. Crowley East Bay Campus, named after the late state representative, earlier this month. The Met’s new campus, which is planned to be the first net-zero state facility in conjunction with the R.I. Department of Education, is meant to help continue Crowley’s legacy of demanding excellence in public education. The R.I. Department of Education is pursuing a design-build approach for the campus with an anticipated completion this year. Staff and students of the Easy Bay Met campus will be committed to the efficient use of the facility and to teach and learn about sustainability, green technologies and the environment. The building project will comply with the department’s school-construction regulations and the Northeast Collaborative for High Performance Schools. The campus will maximize renewable energy sources available on site and minimize energy consumption with an air-tight, well-insulated exterior envelope. The Met is a network of six small, public high schools in Providence and Newport. Met campuses have an emphasis on strong family engagement and individualized learning. n n 11


WORLD TRADE DAY MADE IN THE USA: Globalization Starts Here

Bryant University May 22, 2013

At WORLD TRADE DAY 2013, whether you are a seasoned global marketer or just beginning to reach beyond borders, you will:

Featured keynote speaker and presentation:

• Get an insider’s view into regional firms achieving global success.

with Jill Schlesinger, CFP, editor-atlarge for CBS and host of the nationally syndicated radio show Jill on Money.

• Join interactive discussions on best practices for navigating the global marketplace. • Network to build relationships, partnerships, and processes.

Gold Sponsors

John H. Chafee Center for International Business at BRYANT UNIVERSITY

Global Money Watch: Overview of the Global Economy

C-Suite Panel Discussion: “Making It In The USA” with Giovanni Feroce, CEO of Alex and Ani; Cheryl Mechant, president and CEO of Hope Global; and John Hazen White, Jr., president of Taco. REGISTER at

Bronze Sponsors Certified Public Accountants Trusted Advisors

Silver Sponsors

Media Sponsors


Page 12 April 8-14, 2013

Providence Business News

What’s in a name? Everything When it comes to finding a great name for a business, brand, product or service, it really comes down to this: A good name should make someone smile or nod, not scratch their head in confusion. But this notion, mind you, is not universally held. Many businesses – and the branding agencies they hire Daniel Kehrer to help them – have lately leaned toward combining letters and sounds into invented names that are hard to pronounce or understand. Others prefer to aim for fresh, unexpected names that you don’t need a computer to decipher. One such advocate for fun and likable names and taglines is a San Francisco-based naming firm called Eat My Words (www. that specializes in helping people who find themselves in a business or product-naming pickle. Here are some naming tips from the pros at Eat My Words who come up with creative, brand-name suggestions and emotionally driven company tag lines daily:



SUPER CHARGED: Yardney Technical Products’ lithium-ion batteries have traveled far. “The last four missions to Mars have all had our batteries on them,” said Yardney President and Chief Operating Officer Vince Yevolli, pictured above.

Powering research out of this world Yardney moved across border from Connecticut with help from EDC By Rhonda Miller

Naming a Business n Don’t name your business after yourself. As tempting as that might be, the name is essentially meaningless to your future customers and evokes nothing about your business. What’s more, many names are hard to pronounce, spell or remember. One exception: If your name lends itself to clever word play such as a consultant named Steven Lord who call’s his business “Lord Knows.” n Don’t date your business name. If you select something trendy or numerical (i.e. Women 2.0) the name might appear dated in a few years. Stick to names that can withstand the test of time. n Use a name that will scale to fit future products. As Eat My Words notes, you don’t want to outgrow your business name.

Naming a Product n Keep it simple and conceptual. According to Eat My Words, basic yet powerful words make for the best product names. A few they’ve created include a travel make-up kit named Dash; an all-natural energy drink called Bloom; and a line of gourmet dips for kids called Monkey Dunks. n Avoid acronyms. You should only expect people to remember one name, not two. n Name your product before your company. That’s not always possible, of course, but if people only remember one thing, it’s better they remember the name of the thing they will actually be buying (and searching for online). n

Daniel Kehrer can be reached at


ardney Technical Products sends its lithium-ion batteries far and wide, including two that landed on Mars in August 2012 on NASA’s Curiosity rover. “It’s an electric vehicle on Mars and our batteries are powering the vehicle,” said Yardney President and Chief Operating Officer Vince Yevolli. “The vehicle is about the size of a Mini Cooper.” “Those batteries do most of the work. They power the motors that driver the rover. The batteries power the equipment for the experiments,” said Yevolli. That landing of its batteries on the Curiosity was nothing new for Yardney. “The last four missions to Mars have all had our batteries on them,” said Yevolli. The batteries are recharged with a nuclear isotope, kind of like a tiny nuclear power plant, Yevolli explained. Yardney also produces a silver zinc battery. One of Yardney’s lithium-ion batteries is used in the Juno spacecraft bound for Jupiter, and 10 of the company’s silver zinc batteries were used in the rocket that launched the spacecraft from Cape Canaveral, Fla., in 2011, according to the company’s website. The innovative products at Yardney, a subsidiary of Ener-Tek International Inc., cover a broad spectrum in size and use. Yardney has designed, developed and produced batteries for the B-52 bomber and Global Hawk aircraft, an unmanned aerial vehicle that does surveillance, Yevolli said. The company also produces batter-

COMPANY PROFILE Yardney Technical Products OWNER: Richard Scibelli TYPE OF BUSINESS: Research, development and manufacturing of high-energy density batteries for aerospace and military use LOCATION: 2000 South County Trail, East Greenwich EMPLOYEES: 140 YEAR ESTABLISHED: Moved to Rhode Island in January 2013; company founded in 1944 ANNUAL SALES: WND

ies for hearing aids. That kind of innovation was welcomed in Rhode Island with incentives. The communication began several years ago when Yardney began considering a move over the state line. The company was downsizing from a 260,000-square-foot facility in Pawcatuck, Conn. “It was an old mill. It had kind of worn out its useful life,” Yevolli said. Looking at the business climate of Rhode Island, he said the taxes were about the same as Connecticut. Finding a suitable, 140,000-squarefoot facility in East Greenwich was the impetus that pushed the company over the border, he said. Yardney had to do a lot of work to make it meet the company’s needs. That’s where the incentives come in. The R.I. Economic Development Corporation and Webster Bank partnered to provide Yardney with financing that included a $6 million, tax-exempt bond from the Rhode Island Industrial-Recreational Building

Authority, according to an EDC press release. The bond was used for the purchase and renovation of the manufacturing, research and development facility. An overriding reason for moving such a short distance was Yardney’s determination to maintain its existing, highly skilled workforce. “We’ve got 140 people living in the area. With the move, about 99 percent of them stayed with the company,” Yevolli said. They are about evenly divided between Connecticut and Rhode Island, he said. Those employees include engineers, scientists and technicians. Yardney was founded by Michael Yardney in New York City in 1944, under the name of Yardney Electric Corp. It was among the first companies in the world to successfully produce and commercialize rechargeable silver zine and magnesium silver chloride batteries, according to the Yardney website. The company was acquired by Whittaker Corp. in 1969. It moved to Pawcatuck, Conn. in 1970. The company was privately acquired by the current owner, Richard Scibelli, in 1990 and the name changed to Yardney Technical Products. The company has a long history of innovation. A Sept. 14, 1958, article in The New York Times had the headline, “Battery Maker Aiming at Moon” and said, “The automatic camera that first shoots the dark side of the moon and some of the first truly portable television sets may be made by Yardney Electric Corp.” Now Yardney’s batteries link American research to Jupiter and Mars – a link that greatly expands the landscape of innovation in America’s smallest state. n

April 8-14, 2013

Providence Business News

Rhode Island & Massachusetts News Briefs

Report: Investments boost Massachusetts life science industries BOSTON – The Boston Foundation released a report showing that Gov. Deval L. Patrick’s administration’s investments in the life sciences sector are making a “measurable impact on job creation and spurring economic growth” throughout Massachusetts. The report also encourages continued funding of the Life Sciences Initiative, the 10-year, $1 billion investment package in the life science industries. In 2007, Patrick proposed the Massachusetts Life Sciences Initiative, which was passed by the Legislature in 2008. The Massachusetts Life Sciences Center was tasked with implementing it. The report, “Life Sciences Innovation as a Catalyst for Economic Development: The Role of the Massachusetts Life Sciences Center,” said that initiative has had “a measurable impact,” helping the state’s life sciences cluster create jobs in Massachusetts at a faster pace than any other industry sector in the state. Additionally, since 2008, Massachusetts has overtaken all “competitor states” in the rate of life sciences job creation. The report was conducted through the Kitty and Michael Dukakis Center for Urban and Regional Policy at Northeastern University.

Four insurance firms settle overcharge claims BOSTON – Four auto-insurance companies have settled allegations that they overcharged consumers relating to auto-insurance surcharges that were overturned by the Mass. Board of Appeals or otherwise removed from driving records, Attorney General Martha Coakley announced last week. The settlements were with The Premier Insurance Co. of Massachusetts, Plymouth Rock Assurance Corp., Pilgrim Insurance Co., and Massachusetts Homeland Insurance Co. They mandate audits to determine the amount of restitution owed to Massachusetts consumers and will block surcharge overcharges from reoccurring. “Our investigation has revealed troubling defects in the policy-processing systems used by auto-insurance companies,” Coakley said in a statement. “While we are pleased to have secured the return of these overcharges for Massachusetts consumers, these cases underscore the need for insurance transparency and oversight.” Under the terms of the settlements, the four insurance carriers will engage in audits supervised by Coakley’s office of the relevant insurance policies to determine refund amounts and will pay full refunds to consumers going back to 2003, plus 6 percent interest.

Arbella foundation raises $149K for hunger aid QUINCY, Mass. – The Arbella Insurance Foundation last week announced that the fifth annual Let’s Drive Out Hunger raised $149,617 – more than double the previous year’s total of $62,775. The campaign centers on a gift program in which Arbella matches donations from approximately 500 independent agents throughout New England. While the match has been two-to-one in previous years, Arbella gave the program an extra boost this year by rais-

ing their contribution to three-to-one in honor of the campaign’s fifth anniversary. According to a news release, a total of 117 agents participated in the campaign, an increase of 33 percent over the previous year. Over the past five years, hundreds of donations from independent agents have helped Arbella’s Foundation raise more than $432,000 for local food pantries, soup kitchens and food programs across more than 100 New England communities. Arbella said that the Rhode Island Community Food Bank is among the program’s recipients.


Have lunch with PBN

Mayors join fight against payday loans PROVIDENCE – The mayors of four Rhode Island cities joined several state legislators and a coalition of advocates last week in calling for the passage of legislation aimed at freeing Rhode Islanders from a cycle of debt caused by ultra-high-interest payday loans. At a Statehouse news conference organized by the Rhode Island Payday Lending Reform Coalition, mayors Scott Avedisian of Warwick, James Diossa of Central Falls, Alan Fung of Cranston and Leo Fontaine of Woonsocket lent their support to the legislation, which would eliminate a special exemption from the state’s usury law that has allowed payday lenders to charge borrowers triple-digit interest rates, because of the adverse effects payday lending is having on their communities. The legislation would strip the exemption for cash-advance lenders, making them subject to the same usury laws that govern other lenders, which limit annual interest rates to 36 percent. A similar federal law applying to active military members and their families was enacted in 2006 after the U.S. Department of Defense determined that payday lenders’ predatory practices were harming military members. That bill also capped interest rates at 36 percent. Seventeen states and Washington, D.C., have similar laws. Mayor Diossa highlighted the fact that payday lenders target single, female and minority families saying, “Payday lenders have set up shop in my town and target those who can least afford 260 percent APR loans and are more likely to get trapped in a cycle of debt.” n

INVESTMENT STRATEGIES to create and preserve



minimizing taxes

R.I. becomes 14th state to decriminalize pot PROVIDENCE – Rhode Island last week became the latest state to roll back criminal penalties for minor marijuana possession, replacing the threat of jail time for those caught with pot with something akin to a traffic citation, The Associated Press reported. It will remain a criminal offense to drive while under the influence of marijuana. However, adults caught with an ounce or less of marijuana now face a $150 civil fine and a hearing at the state’s traffic court. Minors will also be required to complete community service and a drug-awareness class. The incident will not appear on an individual’s criminal record. Anyone cited three times within 18 months will face misdemeanor charges, the AP said. Fourteen states have now decriminalized the possession of small amounts of marijuana. The law was passed last year but its enactment was delayed until April 1 to give police time to prepare, the AP said. n 13

Watch Providence Business News Editor Mark S. Murphy during the noon news on WJAR-TV NBC 10 with Frank Coletta.


President and CEO

free consultation,

call 401-262-0350 JPD is a Registered Investment Adviser. JPD does not maintain custody of clients’ assets.

Listen local. Rhode Island PublIc RadIo RIPR.oRg

Providence Business News

14 n



Take advantage of low advertising rates and put your best sales message in front of 37,500 top executives.

Reach these key decision-makers: n n n n

44% influence information technology purchases 38% Telco equipment 54% Desktop computers 52% Office copiers

Coming May 6 Please contact Dave Dunbar at PBN to discuss rates and space availability.

401.680.4801 2 â– breaking news, March 28 – April 3, 2013

Brown among 7 Ivy schools to admit fewer this year PROVIDENCE – Brown University was one of the seven Ivy League colleges to accept fewer students this year, admitting 9.2 percent of the nearly 29,000-applicant pool, compared to 9.6 percent of applicants last year. Brown accepted 2,649 students to its 2017 class, which it called “the most diverse admitted class in university history.� “We are grateful to the nearly 29,000 students who gave us the opportunity and the privilege of learning so much about them and their remarkable accomplishments,� James Miller, dean of admission, said in prepared remarks. “The class of 2017 has the potential to be among the most accomplished in Brown’s history.� Seven of the eight colleges and universities that make up the Ivy League, including Brown, lowered their acceptance rates since last year. Harvard University had the lowest admittance rate at 5.79 percent, a 0.01 percentage point decrease from last year’s acceptance rate. Yale University came in second for selectiveness, admitting 6.72 percent of applicants, versus 6.81 percent last year. Of the eight Ivy League colleges, Dartmouth College was the only institution to increase its acceptance rate this year. Dartmouth accepted just over 10 percent of applicants for the incoming 2017 class, making it slightly less selective than the 9.43 percent admissions rate for the 2016 class.

Federal EUC benefits cut by 12.2% in R.I.

These decision-makers will know what your company has to offer when they see your ad. You can build response and recognition. PBN will help you create your advertising message, at no additional charge.

Tech Showcase

PROVIDENCE – Due to the effects of federal sequestration, weekly benefits for the Federal Emergency Unemployment Compensation program will be reduced by 12.2 percent starting April 21, the R.I. Department of Labor and Training announced April 2. Because unemployment-insurance claimants receive benefits one week after they are accrued, the 12.2 percent reduction will not be reflected in benefit payments until the week of April 28. The EUC program is a federally funded, extended-benefit program, which allows long-term unemployment job seekers up to 47 additional weeks of unemployment insurance beyond the 26-week maximum offered through regular unemployment insurance. The DLT said it estimated that up to 8,000 Rhode Island claimants may be impacted by these benefit cuts. The average EUC benefit is $377 and the average reduction will be $46 a week. According to the DLT, this represents an estimated loss of $1.5 million in total benefits each month.



Fitch puts St. Joseph’s bonds on positive watch MONTH XX-XX,200X

NEW YORK – Global rating firm Fitch Ratings Ltd. has placed $17.8 million in bonds from St. Joseph Health Services of Rhode Island on ratingwatch positive, due to a letter of intent gy nolo tech s is the premiere Carousel Industrie erful maintaining pow signed by the hospital’s parent Charimplementing and ng, igni ide. des onw solutions provider se customers nati orks for enterpri terCare Health Partners and Prosmunication netw converged com pect Medical Holdings. AGE NT VA AD EL THE CAROUS The $17.8 million, series 1999 bonds Provider Technology Solutions ’ Full Service ucts “Best of Breed� Prod ’ Large Portfolio of Partner Certification ’ Highest Levels of r Satisfaction ’ Legendary Custome rage ’ Nationwide Cove Service and Support ’ Complete Design, Art NOC through State of the ’ 24/7 Monitoring g Options ncin Fina of ty Varie ’ A


PRODUCTS AN P Communications

Â’ Mobility Solutions

April 8-14, 2013

issued were issued by the R.I. Health and Educational Building Corp. on behalf of the North Providence hospital and are currently rated ‘CCC’ by Fitch. According to a Fitch release, the bonds are secured by a pledge of St. Joseph’s gross receipts, real estate and debt-service reserve fund. The positive rating watch reflects the recently signed joint-venture letter of intent between SJHS and for-profit California health care company Prospect Medical Holdings. Fitch said it expects the venture to be finalized between the organizations over the next six to nine months. According to the Fitch report, St. Joseph’s financial profile is characterized by operating losses, “extremely low� liquidity and weak debt-service coverage. “However, debt-service payments continue to be paid on time,� said Fitch.

Foreclosure starts, deeds fall in Bristol County BOSTON – Bristol County, Mass., foreclosure starts dropped 46.8 percent in February, while finished foreclosures dropped 46.4 percent compared with the second month of 2012, The Warren Group said last week. The real estate tracking firm reported 84 Bristol County foreclosure petitions (the first step in the foreclosure process) filed in February, down from 158 in February 2012. The number of foreclosure deeds filed in February, marking completed repossessions by lenders, dropped to 30 compared with 56 deeds filed in February 2012. Statewide, Massachusetts foreclosure starts dropped 38.6 percent year over year in February to 856 from 1,394, while finished foreclosures dropped 68.7 percent to 240 from 767 in February.

N. Prov. mill lands spot on historic register NORTH PROVIDENCE – The Lymansville Co. Mill, following long-term restoration, has been added to the National Register of Historic Places by the National Park Service. The recognition comes after more than two decades of restoration and rehabilitation work on the wool and yarn textile mill, which enshrined the property due to its value to the “history of industry and architecture,� according to a release from the R.I. Historical Preservation and Heritage Commission. The mill is now included in a state catalog of 59 similar sites. “A hundred years ago, mills like Lymansville were the backbone of Rhode Island’s economy and offered widespread employment,� Edward F. Sanderson, executive director of the commission, said in prepared remarks. “Today, rehabilitation of vacant, historic mills like Lymansville once more offers the promise of economic development and employment.� Mostly vacant of industry, the current owners plan to convert the property for residential use. The historic recognition includes perks for the mill site, including tax benefits on historic-restoration projects and special treatment from federally managed or assisted projects. n

For up-to-the-minute reports on the business scene in Rhode Island and Bristol County, Mass., visit To sign up for our breaking news or single-subject e-mail newsletters, click “Subscribe� at the bottom of the home page.

Â’ Integrated Voice Solutions (IVR)


Benefits exchange examined HC2

Change coming to care, too


ACA effects on employers HC8 PRESENTING SPONSORS


HEALTH CARE SUMMIT RECAP Rhode Island can learn from Mass. reform effort

Providence Business News

Page HC2 April 8-14, 2013

By Richard Asinof Contributing Writer

Many of the top supporters of health care reform in Rhode Island joined in a Providence Business News-sponsored panel discussion on “Health Care Reform and the Insurance Exchange,” held March 28 at the Crowne Plaza Providence-Warwick. Christine Ferguson, executive director of what’s now called the R.I. Health Benefits Exchange, began the dialogue with a nuts-and-bolts overview of the exchange, promising that it will be “amazing and fantastic.” She called it a “once in multiple-generation” opportunity to change health care delivery for the better in Rhode Island – and the nation. The exchange will be open for business on Oct. 1, Ferguson said, with a Web presence and comparison-shopping for the different health-insurance plans, as well as an informational contact center to help consumers with questions. Actual enrollment through the exchange will begin on Jan. 1, 2014, Ferguson continued. There will be a six-month open-enrollment period for individuals, beginning in October, and small businesses with less than 50 employees will have a running enrollment period, depending on their renewal dates. On April 2, the U.S. Department of Health and Human Services said that


IDEAS EXCHANGE: Tufts Health Plan President and CEO James Roosevelt Jr., speaking, wearing glasses, says that the insurer is committed to the R.I. Health Benefits Exchange.

it was delaying employees from small businesses the choice to purchase health insurance in federally run exchanges for a year, until Jan. 1, 2015. However in Rhode Island, the plan remains to offer employees that choice beginning in Jan. 1, 2014. “Our extensive outreach in the business community has shown that both small-business employers and

employees clearly value choice in the exchange marketplace, and our intention is to build a program that will offer them full employee choice beginning in 2014,” said Ian Lang, associate direction of marketing and communications for the R.I. Health Benefits Exchange. Testing of the exchange’s new IT system – which will include online Medicaid eligibility and enrollment for

approximately 270,000 Rhode Islanders – will begin in April. By Jan. 1, 2015, the exchange will need to become self-sustaining, without support from federal funds. Ferguson did not share any details of how that will be accomplished; fees consumers and insurers may be charged for the exchange’s services were not explained. The biggest news Ferguson delivered in her opening remarks was that the exchange would have a new name. “The new name and branding of that name will be revealed as part of a marketing and outreach effort scheduled to begin in early summer. When asked about who is eligible to participate in the exchange, Ferguson suggested that those in attendance with questions go to the exchange’s Web site for specific details, adding: “The exchange is available for individuals who don’t have access to affordable health insurance.” Affordable, she continued, is defined as premiums that are less than 9.5 percent of income. The exchange is also open for small businesses with less than 50 employees, she said. It is not aligned with Medicare members. James Roosevelt Jr., the president and CEO of Tufts Health Plan, spoke about what Rhode Island can learn from Massachusetts’ experience with its state health care reform law. Acknowledging that the state and federal laws are different, Roosevelt said that See Effort, page HC6

Patient-centered care key to curbing costs cussion stressing the importance of patient-centered care in new insurance products and investments in health care delivery service by Blue Cross. “I’ve been in the health insurance By Richard Asinof business for 30 years,” he said, saying Contributing Writer that the emphasis has supposed to be The CEOs of three commercial about building a relationship with prohealth insurers in Rhode Island joined viders and patients. “It’s been anything the leaders of Lifespan, the state’s largbut that. We’re just beginest hospital network, and ning to change the incenCoastal Medical, one of tives.” the state’s largest phyBlue Cross has investsician-run primary care ed in new shared savings practices, for a March 28 contracts and in patientdiscussion on “Health centered medical homes in Care Reform and the InRhode Island to encourage surance Exchange.” population health manageTogether, they offered ment and root out waste, details of new insurance according to Andruszkieproducts and new health wicz. care delivery models that He pointed to the rapid they are bringing into growth of Blue Cross’ inthe market. At the center vestment in patient-cenStephen Farrell of those efforts is an attered medical homes. In UnitedHealthcare of New tempt to engage with the the last three years, it has England Inc. CEO consumer and make the grown from six practices patient the focus of health with 14,000 patients to 80 care delivery. practices with more than 160,000 paFor the more than 450 people crowd- tients. ed into the Grand Ballroom at the James Roosevelt, Jr., president and Crowne Plaza Providence-Warwick CEO of Tufts Health Plan, offered some for the Providence Business News- insights into his health-insurance’s sponsored event, it was a glimpse into plans for the Rhode Island market, with the future direction of health care in a push to help small businesses become Rhode Island. self-insured. He also suggested that a Peter Andruszkiewicz, president plan similar to one in Massachusetts, a and CEO of Blue Cross & Blue Shield partnership with Steward Health Plan of Rhode Island, began the panel dis- that created a tiered, limited-network

Insurers, care providers invested in outcomes

‘Our goal is to align the interests of the patient, the provider and the insurer.’


TALKING POINTS: More than 450 people attended the PBN-sponsored Health Care Summit at the Crowne Plaza Providence-Warwick last month.

insurance product, is something under consideration to be offered on the new R.I. Health Benefits Exchange. Neither Steward nor Tufts has offered any detailed enrollment numbers to date. Stephen Farrell, CEO of UnitedHealthcare of New England Inc., talked about the ways that UnitedHealthcare was attempting to engage the consumer in its new products, such as “Choice Advanced.” “Better information leads to better decision-making leads to better health outcomes,” he said. Farrell called his firm’s products “groundbreaking” in their attempts to make costs visible and transparent to consumers, so that they

are empowered. Farrell touted UnitedHealthcare’s national, for-profit reach – with more than $20 billion in insurance revenue annually, investments in 10 accountable care organizations nationwide, with two of the innovative entities here in Rhode Island, at Coastal and at Lifespan, and the ability to mine health IT data from some 75 million customers in better managing population health. “We have a very fragmented health care system,” Farrell continued. “Our goal is to align the interests of the patient, the provider and the insurer.” Dr. Timothy J. Babineau, president See Key, page HC4

Providence Business News


Page HC3 April 8-14, 2013

Follow the leader. Are you serious about health and wellness? So are we.

First in the Northeast to be NCQA accredited in Wellness and Health Promotion.

Page HC4 April 8-14, 2013


Providence Business News


tice of medicine is about the exchange of information,” he said. The choice of Epic, he continued, was reinforced by the decision by Partners Healthcare in from page HC2 Boston to choose Epic and invest $800 and CEO of Lifespan, the state’s largest million to rebuild its IT system. Care hospital network as well as its largest New England, the second-largest hosprivate employer, with more than 12,000 pital network in Rhode Island, has also employees, talked about the need to re- partnered with Epic to rebuild its amdesign health care delivery around the bulatory care IT system, as well as creneeds of the patient, not the provider. ate a unified platform for its physician Despite the great advances in science practices. Babineau said that the Lifespan netand technology in health care, Babineau said, “If you think about health work had 280 separate IT interfaces; care as an industry, we’ve evolved very with EPIC, in the future, every department and surgical center little in terms of respondwould now operate across ing to the market.” one platform. In terms of the need William P. Deveraux, for cutting medical costs, a partner at the law firm Babineau continued, it of Pannone Lopes Deneeds to be “much more vereaux and West, LLC, than paying 95 cents incalled the new health IT stead of a $1 for a Bandsystems and the transparAid.” ency they promote “a wonBabineau praised Lifesderful thing for software pan’s efforts to redesign engineers and lawyers, bethe delivery of care to be cause there was a signifipatiented-centered, thinkcant risk of inadvertent Dr. Timothy J. ing about health care not disclosure.” just as what occurs in a Babineau Dr. G. Alan Kurose, hospital, but what hap- Lifespan president and CEO president and CEO of pens before and after, too. Coastal Medical, counBabineau cited the extered Devereaux, saying that the lack perience at The Joint Center at The of clinical information available to proMiriam Hospital, where through the viders at the point of care was a much use of Lean and Six Sigma techniques, more significant problem – “a hundred the hospital has been able to reduce the times, 500 hundred times, 1,000 times number of patients who need to go to a greater” – than inadvertent disclosure nursing home for rehabilitation stays of personal medical information. from 60 percent to 21 percent. “That’s Kurose also offered details of Coastal where the opportunity is,” he said. Medical’s innovative, shared-savings Babineau also talked about the new contracts with Blue Cross and its $100 million investment by Lifespan to accountable-care organizations with rebuild its health IT system using Epic Medicare and with UnitedHealthcare. Before coming to the forum that software and technology. “The prac-

‘Health care … [has] evolved very little in terms of responding to the market.’


BREAKING DOWN BARRIERS: Coastal Medical President and CEO Dr. G. Alan Kurose, second from left, says that health-IT reform is removing the issue of the lack of clinical information being available to providers.

morning, Kurose said he reviewed Excel spreadsheets at the breakfast table, with some 67 databases looking at the total cost of Coastal’s operations. The inpatient hospital costs were about 21 percent for Blue Cross; for Medicare, the inpatient hospital costs run about 39 percent. What that points to, he continued, is the need for system redesign, because about 80 percent of the costs incurred with Blue Cross happen outside the hospital, and with Medicare, 60 percent of the costs happen outside the hospital. Kurose also touted Coastal’s inno-

Just one of the 6OO,454 people who actually like their insurance company. Recent surveys ranked Delta Dental number one in brand recognition, brand quality, and most important, customer satisfaction. In fact, 92% of you would recommend us to a friend. And we can’t ask for more than that. To learn more, contact your broker or visit

Sources: 2011 Member Satisfaction Survey; 2012 Brand Awareness Survey

vative approach to providing primary care 365 days a year, as a way to deliver “the right care at the right place at the right time.” Sen. Joshua Miller, D-Cranston, chairman of the Senate Committee on Health and Human Services, called the panel discusion “a great opportunity” for someone like himself who is trying to keep up with all that is happening. Edward Quinlan, president of the Hospital Association of Rhode Island, said it was “a great service to the community.” n

Providence Business News


Page HC5 April 8-14, 2013


“What we do, we do for all.” –Dr. Ethel Percy Andrus

Over 50 years ago, Dr. Ethel Percy Andrus founded AARP because she was inspired to help others and change the world. Dr. Andrus couldn’t ignore people’s needs for health and financial security. AARP has continued her work to help all Americans pursue their best lives. AARP is making a difference for families in Rhode Island where it is needed most—right here at home. AARP works to make life better for all. Discover more of what we do for every generation at



Real Possibilities is a trademark of AARP.

Page HC6 April 8-14, 2013


Providence Business News


that the rules were being configured to avoid this pitfall. “We have the opportunity to do this right from day one here,” he said. from page HC6 Roosevelt said that there would be a price to pay for the effort to deliver some general principles apply. As a health insurer, he continued, health care in a more affordable and Tufts is “very committed” to Rhode Is- more transparent manner. “There will land and its exchange. “The goal is to be increases in premiums,” he said. provide high-quality, affordable health “You don’t get anything … for nothing.” Jumping into the conversation, R.I. care. This is going to require developing new products with different fund- Health Insurance Commissioner Chrising methods,” Roosevelt said. It will topher F. Koller warned the audience to also require providers, payers and be careful when they read stories prestakeholders working together, he con- dicting what increasing costs will be as a result of health care retinued, “something I think form. “Nobody knows for we are all doing now.” sure about costs,” he said. Roosevelt also urged Stories that attempt to prethat the emphasis be on dict the costs, Koller conwhat works, rather than tinued, “will be attempting what may be held up as an to make a political point.” ideal. Lt. Gov. Elizabeth H. “One thing that MasRoberts attempted to resachusetts did that was frame the discussion really important was the around costs, saying: “If outreach effort and marwe were to keep doing the keting campaign of its same thing that we are exchange, known as ‘The now, the costs are going Connector,’ ” Roosevelt James Roosevelt Jr. to go up,” she said. “We’re said, describing how the Tufts Health Plan not really changing how state partnered with the president and CEO we get health insurance, Boston Red Sox to get the but how we get health message out to people. “This is a new concept for people, and care.” Ferguson touted the accessibility you have to explain how it works and and transparency of information on the why it matters,” he said. Like everything else in life, Roo- new exchange, saying that consumers sevelt continued, “there are people will be able to make apples to apples who will try and game the system,” de- comparisons 365 days a year. The total scribing what he termed “jumpers and costs of health insurance will be transdumpers,” people who signed up for parent, she promised. Further, she prehealth insurance to deal with particu- dicted that most employers in the state lar medical needs, and once they were will not try to game the system, citing statistics that 98 percent of employers met, dropped their insurance. In Rhode Island, Roosevelt said with more than 50 employees in Rhode

‘This is going to require developing new products with different funding methods.’


GAME CHANGER: Lt. Gov. Elizabeth H. Roberts said at last month’s Health Care Summit that “we’re not really changing how we get health insurance, but how we get health care.”

Island offer employees health insurance. And about 50 percent of employers with under 50 employees also offer health insurance to employees. “Employers will want to be engaged,” she said. William E. O’Gara, a partner in the law firm of Pannone Lopes Devereaux and West, LLC who heads the firm’s litigation and employment teams, voiced optimism that the new exchange may provide some relief to businesses. “We’re in a state where the economy is so difficult,” he said. “Health costs suck all the oxygen out of the economy. The

entire system stopped working several years ago.” Ferguson said the new exchange system may provide employees with new freedom to choose jobs, because until now they have been shackled with what she termed the “golden handcuffs” of health-insurance benefits, unable to leave a position that they don’t like. “I would be really careful about how you think about health insurance,” she warned employers. “A happy employee is a more productive employee,” Roosevelt chimed in. n

When faced with a cardiac issue, there is nothing more

The Miriam Hospital joining forces to form the

comforting than knowing that the team that is working

Cardiovascular Institute, you now have access to

to heal you is bringing years of experience and knowl-

an unprecedented depth of cardiac experience

edge to your care. With Rhode Island Hospital and

and resources whenever you need them. Major teaching affiliates of The Warren Alpert Medical School of Brown University

152 Emory Street Attleboro, MA 02703 508-226-7515

2 Dudley Street, Suite 360 Providence, RI 02905 401-606-1004

208 Collyer Street, Suite 100 Providence, RI 02904 401-793-7191

185A High Service Avenue Providence, RI 02904 401-354-6050

New office! 950 Warren Avenue, 2nd Floor East Providence, RI 02914 401-606-1004 New office! 1454 South County Trail, 2nd Floor East Greenwich, RI 02818 401-606-1100

Providence Business News




Page HC7 April 8-14, 2013




Alternative Dispute Resolution • Corporate & Business • Criminal Defense • Employment Estate Planning & Administration • Government & Legislative Strategies • Health Care Litigation • Municipal Infrastructure • Nonprofit Organizations Real Estate & Commercial Lending • Special Masterships




PANNONE 317 Iron Horse Way, Suite 301 LOPES Providence, RI 02908 DEVEREAUX & 401 824 5100 WESTLLC NEW YORK


HEALTH CARE SUMMIT RECAP ACA checkup can help keep firm healthy Providence Business News

Page HC8 April 8-14, 2013

There’s another wave of health care reform mandates under the Affordable Care Act (ACA), commonly called “Obamacare,” that employers need to know about. These “play-orpay” mandates will Kate Saracene require many compaand Stephen nies to make changes Zubiago in whether and how they provide health care benefits to their employees, and employers who fail to comply face significant penalties. Though not effective until January 1, 2014, employers are wise to start thinking about these issues now. Below is a list of the top items to consider. n Determine whether you are a “large employer” subject to the coverage mandate. All employers with an average of 50 full-time equivalent employees during 2013 will be required to offer health coverage. Full-time equivalence is determined by aggregating the number of “full-time employees” (those who average 30 hours, including paid time off, per week), and the full-time equivalent number of part-time employees. If businesses share at least 80 percent common ownership, or where certain service organizations have joint activity or control, those businesses are considered a single employer. n If you are a large employer, you may need to redefine your policies governing eligibility for health insurance.

Guest Column

The ACA requires that large employers offer coverage to at least 95 percent of their “full-time employees.” However, many employers currently consider “full-time employment” to be 32, 35 or 40 hours per week (instead of the 30 hours required by the ACA). Some employers’ policies even exclude entire categories of W-2 employees, such as temporary or seasonal employees, or per diems, all of whom may now need to be offered coverage. Large employers who fail to comply with these rules face an annual “sledgehammer” penalty equal to $2,000 times the number of all full-time employees. n Employers with fewer than 50 full-time equivalent employees are not required to provide coverage to their employees, but the ACA offers incentives and opportunities to do so. For example, employers with 50 or fewer employees will be eligible to purchase insurance through the new Rhode Island Health Benefits Exchange, and those with 25 or fewer employees may even be eligible for a federal tax credit to help pay the employer’s share of premiums. n Determine whether you have any variable-hour or seasonal employees subject to special rules. If you have employees whose hours fluctuate, or if you employ seasonal workers, then you may have the option to average their

hours over a period of six to 12 months. If an individual averages 30 hours per week during this “measurement period,” then they must be offered health coverage during a “stability period” that follows, which generally must be the same length as the measurement period. n If you do offer health coverage, determine whether it satisfies the ACA standards for “minimum value” and “affordability.” The “minimum value” standard requires that the plan must pay on average at least 60 percent of the costs for covered benefits. The regulators are developing a minimum-value calculator, where employers will be able to input certain information about the plan, and get a determination as to whether the plan complies. The “affordability” standard requires that an employee’s share of the premium for single coverage cannot exceed 9.5 percent of the employee’s wages. If you discover that your current cost-sharing method makes coverage “unaffordable,” you will need to decide whether to adjust your employer subsidy to make it affordable for all employees, or whether to pay the penalty, equal to $3,000 times the number of your full-time employees who receive a federal government subsidy through an Affordable Health Insurance Ex-

Obamacare allows employers to pay a penalty and opt out of the coverage mandates.

change. n Revise your health-plan terms to comply with new mandates. The ACA requires that you must offer coverage to your employees’ biological, step, adopted and foster children. It also imposes a 90-day maximum on eligibility waiting periods, and caps the permitted out-of-pocket maximums. n Use modeling tools to determine whether it is more affordable to “play” or to “pay.” Obamacare allows employers to pay a penalty and opt out of the coverage mandates. You should think about which option is better for your business. n Consider changes to your business model. For example, some owners of multiple businesses are selling off shares in order to become “small employers” exempt from the coverage mandate. n If you have a unionized workforce, negotiate with the unions representing your employees regarding changes that need to be made to your collective-bargaining agreements to ensure compliance. If your unionized employees participate in the union’s own health plan, you are not off the hook either, and you need to make sure that the union’s plan complies, or you as the employer will face the penalty. n Kate Saracene is a labor and employment and employee-benefits lawyer with Nixon Peabody LLC. Stephen Zubiago is a health-services partner with the firm.

Providence Business News


Page HC9 April 8-14, 2013

The New Health Insurance Marketplace: It’s time to plan for 2014! Each state has filed a blueprint for creating a Health Insurance Marketplace (formerly known as the American Health Benefit Exchanges). These Exchanges are projected to be operational on January 1, 2014, and we expect to inundated with new guidance and regulations in the coming months. Join USI Insurance Services for an interactive breakfast seminar where our compliance experts will discuss the current status of the legislation. If you are a CFO, CEO, COO, President, Business Owner or HR Director, you can’t afford to miss this timely session. This session has been approved for 2.5 HR Credits.

Topics include: 

Predictions of the Future of Employer Sponsored Health Care

How Health Care Systems in your market are likely to evolve

The Affordable Care Act, State and Federal deficits

Who are the real winners and losers under reform

The "New American Compromise" – What it really means for Americans and Business

Effective solutions to minimize the HCR impact on your company


Thursday, May 16, 2013


Crowne Plaza Hotel, 801 Greenwich Avenue, Warwick, RI 02886


8 – 8:30 a.m. Registration/Continental Breakfast / 8:30 – 11 a.m. Seminar


Jack McStravock, Practice Leader, Legal & HR Compliance Consulting David Glade, Senior Vice President, USI Employee Benefits Ted Larson, Senior Vice President, USI Employee Benefits


Please email to register

A program of intense study focused on leading transformation in American healthcare. Executive Master of

Healthcare Leadership

Transforming Leaders.

Transforming Healthcare.


Page HC10 April 8-14, 2013 TA-HalfPageAd032913_Layout 1 3/29/13 12:57 PM Page 1

Providence Business News

Tunstall’s telehealthcare solutions

Never before has innovation in healthcare delivery been more critical.

We help healthcare


industry stakeholders create better outcomes

Investments in innovative solutions are accelerating because the beneďŹ ts for patients and healthcare organizations are truly compelling. Personal emergency response services


Contact center support

Home monitoring solutions

Multi-channel engagement

for patients. Our customized solutions with technology and service integration span the spectrum of healthcare. Tunstall Americas helps our clients improve patient safety, provide vital sign monitoring, and increase patient adherence and wellness support.

For more information 877-354-8111


2 1. Panelists Blue Cross Blue Shield CEO, Peter Andruszkiewicz and William Devereaux, Pannone Lopes Devereaux & West 2. UnitedHealthcare New England CEO, Stephen Farrell (center), listens to first panel. 3. Robert Anderson of RIMS Brokerage asks the panelists a question 4. Joan Greenwell, Starkweather & Shepley, talks with David Glade and Jeff Minuto of USI Insurance 5. Janet Farrell, Brown University Continuing Education 6. Carlos Fuentes, VP of Delta Dental 7. Paula Rossi, VP of Coastal Medical 8. Dr. John Murphy, Lifespan 9. Deanna Casey, AARP








Providence Business News






4 3



1. 2. 3. 4. 5. 6.




8. 9. 10. 11. 12. 13.


Page HC11 April 8-14, 2013


Caitlin McBride and Laurie Ufland, Tufts Health Plan Christine Ferguson, director of the RI Benefits Exchange Sam Slade, USI Insurance William O’Gara, Pannone Lopes Devereaux & West, and Lt. Governor Elizabeth Roberts Tufts Health Plan CEO, James Roosevelt, Jr., talks about the “Mass Connector” Stephen Farrell, CEO of UnitedHealthcare NE, Lifespan CEO Dr. Timothy Babineau, and Dr. Alan Kurose, CEO of Coastal Medical Jim Ryan, Pannone Lopes Devereaux & West, listens to Panel 1 discuss the Benefits Exchange Doris Haskins and Alan Neville, AARP Christine Ferguson talks with Peter Andruszkiewicz, BCBSRI CEO James Roosevelt, Jr. talks with fellow panelist, William Devereaux Dr. Timothy Babineau and Dr. Alan Kurose Kim Hadsell (center) of USI Insurance John O’Hara, AARP, asks the Panelists a question concerning Medicare


Page HC12 April 8-14, 2013


s e e y o pl m E y h t l a r e He w e f have . s m i a l C h t Heal Duh.


Providence Business News

Providence Business News

April 8-14, 2013 n 15

Discerning between presentation, communication How do you communicate? How good of a communicator are you? If you want to make a winning sales pitch, it takes a combination of your presentation skills and your communication skills. It’s the littleknown sales skill: How to get others to listen to you. Or better stated, WANT to listen to you. Time is spent on Jeffrey Gitomer presentation skills, and the presentation itself, but very little or no time is spent on communication skills. Until now. All your life you heard the lesson: It’s not just what you say, it’s how you say it. Presentation is what you say. Communication is how you say it. The best way to clarify communication skills is to ask you to think about the teachers and professors you had in school. Sometimes the most brilliant ones were the worst communicators – and as a result, left you short of both education and inspiration. Then think of the teachers you loved. You couldn’t wait to get to their class, and you hung on their every word. In fact, you still remember him or her and you talk about them. They were great communicators. In sales, great communication skills are one of the lost secrets of success. Sales messages focus around “value prop” and “value add” and other sales drivel. You get a slide-deck form of marketing, that’s both boring and repetitive – with not one word on how to communicate your message. Here are several “wake-up” questions to get you thinking about your communication – and I’ll throw in a few challenges: n What is the clarity of the meaning behind your message? What’s your motive? n How clear is your delivered message? Not clear to you, clear to them. n How understandable is your message? Would I get it, and agree with it? n What’s the attitude behind your spoken words? What’s the tone of your words? How do they sound? n Are your gestures in harmony with your words and your delivery? Do your gestures indicate and confirm a relaxed, confident style? n How succinct is your message? Short and sweet or way too long? n Does your message or your words sound scripted or insincere? Conversational is the best communication strategy. n How organized is your message? Are you fumbling or on a roll? n Does your message have a start and a finish? A finish that ends in a commitment from the prospective customer? n Do you make solid and consistent eye contact? Especially when asking for the sale or confirming the offer. n Are you making statements or asking questions? Who are the questions in favor of? Questions create interactive dialog, and will tell you, both by body language and gestures, the level of genuine connection – the smiles, the willingness to talk and tell the truth.

sales moves

Presentation is what you say. Communication is how you say it.

n How transferable is your message? Does the prospect “get it,” and agree with it? n Are you asking for confirmation that what you’re saying is completely understandable? n Can anyone/everyone define exactly what you mean to say? n Do you talk too fast? Only your recording will tell you that. n Are you using industry buzzwords that could create misunderstanding? Classic example of miscommunication. n Are you using acronyms that everyone understands, or are you just showing off? Another classic example of miscommunication. And the ultimate self-tests of communication:

n Have you ever recorded your message so you can hear your own communication skill level? Most salespeople have not. n Have you played your message for others? A huge opportunity for coaching and improvement of your communication skills. I TWEETED THIS: A passionate message without clarity will fall on deaf ears. #gitomer #communication The object of communication, especially sales communication, is for others to UNDERSTAND your message, AGREE with your message and thenTAKE the correct ACTION. Buy. If you’re really interested in better communication skills, take a course in it. Dale Carnegie (www.dalecarnegie.

com) offers the best programs. All of them are based around the 75-yearold business-book classic, “How to Win Friends, and Influence People.” It doesn’t get any better than that. If your communication skills are the heart of your sales message, maybe it’s time to uncover just how strong they are. n Jeffrey Gitomer is the author of “The Sales Bible” and “The Little Red Book of Selling.” President of Charlotte-based Buy Gitomer, he gives seminars, runs annual sales meetings, and conducts Internet training programs on selling and customer service at www.trainone. com. He can be reached at (704) 333-1112 or email to

WHAT’S YOUR TROPHY MOMENT? Over the years I have had the privilege to participate in the sport of gymnastics as a gymnast, coach, and aunt of a gymnast. During this time I have experienced many trophy moments that I am so honored and proud of, however the BEST moment is when my mentors awarded me with a success trophy. In June of 1992, after graduating from East Greenwich High School and competing in the National Gymnastics Championships, my parents celebrated my achievements by presenting a trophy with this caption on the plate, “Becoming a National Gymnastics Champion, You are one of the few who has learned that without risks, you will suffer no defeats: and, likewise, you will also win no victories. Let this victory give you the guidance to fulfill your future dreams. Love, Mom and Dad” I place this trophy in my office to remind myself each day to deliver the same message to all our future athletes and hopefully I can aspire to be their BEST mentor as my parents have been to me!

Amy Nelson-Bryant President, Aim High Academy, Inc.

Page 16 April 8-14, 2013


Providence Business News

Teacher support is just tweet away in R.I. By Rhonda Miller

welcomed by administrators and teachers as one way to ease the continuing Many Rhode Island educators are pressures of tight school budgets. “It can be done for free. There’s no embracing continuous changes in techcharge, no cost to participate,” Miller nology and trends in peer-to-peer training to enrich professional development. said. “It’s easily accessible. That’s the “The whole climate of professional great thing about technology.” More than 100 educators usually development has changed,” said Shawn Rubin, director of technology integra- take part in the Sunday evening chats, tion for Highlander Charter School in Miller said. To give the project longProvidence. “One of the biggest chang- term value, he archives the Twitter es is Twitter. It’s become a profession- conversations on the website al-development engine for teachers.” Topics archived on the Twitter chat Sunday nights at 8 p.m., educators include a longer school day and school from Rhode Island join the ongoing conversation on Twitter by using the year and the continuum of teaching and learning. hashtag #edchatri. Participants include The project was created many Rhode Island eduby Don Miller, principal at cators, including a middle Shea High School in Pawschool principal in East tucket and Alan Tenreiro, Greenwich, the principal principal at Cumberland at Coventry High School, a High School. reading specialist in Prov“Alan and I have idence, a math teacher at known each other for five Cranston East High School or six years and we both Dan Callahan and an English professor appreciate the value of EdCamp founder at Rhode Island College. technology and what it R.I. Commissioner of can offer us and our teachers,” said Miller, who began the conver- Elementary and Secondary Education sation using #edchatri with Tenreiro Deborah Gist is no stranger to #edlast spring. They knew of the national chatri. “The commissioner has participated “ed-chat” and decided starting one with a Rhode Island focus would be valuable. from time to time in that online discusThey didn’t have to wait long to dis- sion group,” said state department of cover the worthiness of the project, education spokesman Elliot Krieger. The Twitter chat draws educators said Miller. “It’s amazing because it allows us to from around the country and the world. collaborate with educators throughout Those whose comments are archived the state and all over the world from online include an assistant school suthe comfort of our own home,” Miller perintendent in Pennsylvania, an elementary school principal in North said. The negligible cost of this type of Carolina, an assistant principal in Virprofessional development is especially ginia, a high school principal in Iowa

‘A lot of us took our professional learning into our own hands.’


LAUNCHING PAD: Shawn Rubin, standing, director of technology integration at the Highlander Institute, helps teacher Dan Baldassi learn how to use iPads in class.

and third-grade teacher in Venezuela. Superintendent of Smithfield Public Schools Robert O’Brien finds the Sunday evening Twitter chat useful. “It’s good because you see comments from teachers around the state. We’re sharing information. It’s all about collaboration,” he said. That’s the key to the new stream in professional development, said O’Brien. “The old model of professional development was, you went to a workshop, came back to the classroom and closed the door,” O’Brien said. “Now we have professional-learning communities. We’ve been doing this for years,” said O’Brien, who is delighted at the results and continuing interest in a recent project. “We offered iPads to the first 50 teachers who would give up a week in the summer to go to training,” O’Brien said. “At the end of the week, they had to have a project-based unit they were going to incorporate into their class-

room in September. One team in the iPad training was made up of a physical education teacher and an art teacher. They created a multimedia project with art, dance and a YouTube video. The excitement among teachers and students over the projects has created continuing interest in the iPad training, O’Brien said. “It’s been unbelievable. I had a lot more than 50 teachers who wanted to do it, but we didn’t have enough money for more iPads,” he said. “We didn’t pay them. They took it on as part of their professional responsibility. So I’m hoping to do it again next summer.” The trend in teachers giving their time coincides with the increased responsibility they have for their own professional development. “There is no state funding explicitly for professional development, but many of our initiatives do involve some form of professional development,” See Teachers, page 17

Bad moods, behavior at the top can sour workplace By Rebecca Keister

Everyone has bad days. In business, professionals are told to leave their problems at the office front door. The workplace is no place for emotional meltdowns, bad moods and distractions. But what happens when a high-level professional does their best to compartmentalize whatever personal stresses they’re facing and fails? What happens when, despite their best effort, a grumpy mood prevails and they aren’t even aware of that? “This could rub off on others in terms of their body language, in terms of what they’re likely to say, in terms of what they might be listening to, in terms of behavior,” said Frank Eyetsemitan, associate dean of social sciences at Roger Williams University. “Emotion is very, very powerful in terms of affecting the workplace climate.” Emotional intelligence was defined in a 1990 paper on the subject by psychologists from the University of New Hampshire and Yale University as the “ability to monitor one’s own and other’s feelings and emotions, to discriminate among them and to use this information to guide one’s thinking and actions.”


COOL HEADS PREVAIL: Career coach Leslie Long helps clients identify triggers that they can work through instead of engaging in unproductive behavior.

Its importance as a leadership quality has long been studied by academics, psychologists and executive coaches. According to Talent Smart, a California-based provider of emotional-intelligence training programs, 90 percent of top performers have high emotional

intelligence and emotional intelligence is responsible for 58 percent of job performance. The company’s website says emotional intelligence determines how a person manages behavior, navigates social complexities and makes person-

al decisions for positive results. Having a high emotional intelligence means a person is self-aware and has good selfmanagement skills, which means effectively using emotional awareness to control your behavior. When leaders aren’t able to do this is when problems can occur. “The first important thing is selfawareness and recognition of a set of behaviors. Closely related is not only recognition but recognition that it’s not leading to optimal results,” said Tony Saccone, managing partner of Leadership Development Worldwide, a Providence-based company that provides, among other services, executive coaching and development and conflictresolution counseling. “ Saccone said he sees poor leadership related to emotional problems in three degrees. He very infrequently encounters an executive who is genuinely emotionally unstable. More common is a leader who is having trouble controlling emotions under pressure, which results in temper outbursts, and can be attributed to an executive maturity problem. Most likely, he said, is that a leader’s mood takes a downturn when they are under great stress. That permeates See Mood, page 17

Providence Business News



Saccone said executives must first recognize their unproductive behavior in order to correct it. That, he said, can from page 16 come from what is called 360 degree feedbacks, in which stakeholder groups down through the ranks, creating a give anonymous feedback on their stressful work environment fueled by peers and supervisors. impatience and micro-managing that Once a leader knows they may be no one wants to be in. creating an unproductive workplace “There’s the potential for retention through emotional ups and downs, they issues. People could leave. If [a leader] need to be motivated for change. gets impatient and over-controlling, the “They need to get better equipped quality of decision-making may not be to manage stress,” Saccone said. “Difas good,” Saccone said. “It tends to creferent people respond in different deate more passivity in a group because grees. When pressures are renewed, they’re waiting for their boss to tell they might cycle back. It’s the voice of them what to do. They could [become] experience.” trained to not provide an answer and it Saccone said his firm advises exrestricts their development.” ecutives to evaluate the Leslie Long, an indetrust they have in team pendent career coach in members to combat microProvidence with a corpomanaging and to create a rate background in human buffer for responsibility resources, said anything overload. can bring about bad emoLong said she also fational behavior that would vors a 360-degree review leave a leader feeling anxsystem, which, she said, ious, depressed, shamed, can help create a corporate angry, and even with a culture of being able to sense of failure they aren’t Leslie Long recognize and report when used to as successful busicareer coach an executive is not leading nesspeople. effectively. “For them to not be able She advises employees to go to their to handle something can be very upsetting. It’s not how they see themselves,” human resources department with said Long. “They’ll use the workplace such concerns. She helps clients identify triggers to compensate for that.” Work could be used as a distraction that they can then recognize and work for an emotionally upset person, Eyet- through instead of responding immesemitan said, and gave the example of diately and engaging in unproductive a worker who has had a loved one re- behavior, such as lashing out at cocently die. workers. That person may not want to sit “It’s more than a coaching process. If home and be alone in their grief. there’s a clear context that it’s person“You’ve got to understand the com- al, we’re going to explore how it’s affectplexities of all of these in terms of emo- ing [work],” she said. “A willingness to tions,” he said. “[Some] might go the ex- explore what’s going on to become selftra mile of acting out on someone else. aware is therapeutic in and of itself. It The prevailing climate is set by leader- is very, very likely that someone who is ship [and] could affect motivation or willing to take a look at themselves is morale.” going to have positive outcomes.” n

‘To not be able to handle something can be very upsetting.’

Teachers from page 16

Krieger said. “For example, we might provide some funds to help with the turnaround of low-achieving schools, and some of those funds may be earmarked for professional development,” he said. Funds from Race to the Top, a federal initiative to encourage states to create ambitious projects for education reform, have been used to train educators in Common Core Standards, which could be considered a form of professional development, Krieger said. State requirements for teacher certification have been changing, with individual evaluation plans phased out during the past couple of years, Krieger said. Professional-development oversight is the responsibility of each school district, he said. Those evaluations are done by the school district, generally with the principal or evaluation teams, he said. “The system used to be that teachers needed a certain number of hours at continuing education programs to get continuing education credits,” said Rubin. Now, with the evaluation model, and the emphasis on the accountability of

teachers in the classroom, teachers have unique ways to engage in professional development, said Rubin, who organized EdCamp Providence in November 2012, an “unconference” attended by about 120 educators. “An unconference doesn’t have a set schedule like most traditional conferences,” said Dan Callahan, chairman of the board and a founder of EdCamp in 2010. “The schedule is put together by the participants on the morning of the event.” An EdCamp “unconference” draws on the skills and experience of the participants. One person might lead a discussion on using Twitter in professional development, another might share good strategies for reading, he said. Callahan is an instructional-technology specialist in Burlington, Mass., public schools, and a member of a teachers union, the Massachusetts Teachers Association. He was previously a special-education teacher in Philadelphia. Callahan said teachers tend to have internal motivation and innovation has created a wave of enthusiasm. “I’m doing it because I want to become a better teacher,” said Callahan. “Professional development has basically changed because a lot of us took our professional learning into our own hands.” n

Page 17 April 8-14, 2013

We put our legal experience to work for organizations every day. It’s just good business.

Corporate and Business Law – I n Good Company. Our Corporate and Business Law Group E. Colby Cameron* | Joseph F. Whinery, Jr. Joseph A. Anesta | Sandra Matrone Mack | John W. Wolfe W. Thomas Humphreys* | Lori J. Lousararian* *Also Admitted in Massachusetts 301 Promenade Street, Providence, Rhode Island 02908 Phone 401.331.5700 | Fax 401.331.5787 |

Are you looking for a top quality Electrician?

We have nearly 1,000 of them right here in Rhode Island, and close to half a million more all across this great Nation. 24 hours a day, seven days a week, we have the workforce you need. IBEW Local 99, based in Cranston, Rhode Island, has been powering Rhode Island homes, businesses and the industry since the dawn of electricity well over a century ago. Today we have expanded into harnessing the power of the sun, the wind and embraced every form of alternative power that is being introduced into the market. We also have experts in Thermal Imaging, Power Quality, Medium and High Voltage Transmission and every form of electrical distribution that you may require. Whether you need a small project in your residence or if you are in the planning stage of a power house, we want to talk to you. Our network of contractors have proven themselves to be the highest skilled, the most productive and the safest working women and men in the electrical industry.

Please visit our website to find out more about what we have to offer you. You will not be disappointed, we guarantee it!

Page 18 April 8-14, 2013


Providence Business News

Business & Professional Associations (ranked by number of members) 2013 rank

2012 rank

Executive director Website

No. of members Annual dues

Purpose/mission statement



Rhode Island Bar Association 115 Cedar St. Providence, R.I. 02903 (401) 421-5740 Fax: (401) 421-2703

Helen Desmond McDonald

6,300 $115 to $225

To uphold and defend the Constitution and laws of the United States and to maintain representative, democratic government; to promote the administration of justice




Leading Women of NE P.O. Box 1124 Charlestown, R.I. 02813 (401) 789-0441 Fax: (401) 783-7952

Susan Colantuono, CEO, Lisa Bergeron, president

4,800 $150

Provider of leadership development solutions for women in organizations and in business




Rhode Island Association of Realtors 100 Bignall St. Warwick, R.I. 02888 (401) 785-3650 Fax: (401) 941-5360

Susan C. Arnold, CEO

3,900 $196.50

To support members in conducting their real estate businesses ethically and competently




Rhode Island Society of Certified Public Accountants 45 Royal Little Drive Providence, R.I. 02904 (401) 331-5720 Fax: (401) 454-5780

Robert A. Mancini

1,946 $245

To enhance the image of the CPA profession and the success of members through education, leadership and advocacy




Manufacturing Jewelers & Suppliers of America Inc. 57 John L. Dietsch Square Attleboro Falls, Mass. 02763 (401) 274-3840 Fax: (401) 274-0265

David Cochran, president and CEO

1,900 $130 and up

The U.S. trade association for jewelry makers, designers and related suppliers. It provides the resources to achieve professional excellence and maintain a competitive edge




Rhode Island Medical Society 235 Promenade St. Providence, R.I. 02908 (401) 331-3207 Fax: (401) 751-8050

Dr. Newell E. Warde

1,680 $525

To promote the art and science of medicine and to advocate for patients and for good public policy in health care




Leadership Rhode Island 1570 Westminster St., 1st Floor Providence, R.I. 02909 (401) 273-1574 Fax: (401) 273-0054

Mike Ritz

1,600 $100

To provide leaders and emerging leaders with knowledge and access to resources that will enable them to positively affect their communities




Greater Providence Board of Realtors 365 Eddy St., Suite 1 Providence, R.I. 02903 (401) 274-8383 Fax: (401) 421-4705

Michele L. Caprio, CEO

1,400 $200

To ensure the professional success of members




Kent Washington Association of Realtors 2240 South County Trail, Suite 3 East Greenwich, R.I. 02818 (401) 885-9300 Fax: (401) 885-5968

James M. Wetzel, executive vice president

1,400 Varies

Provide resources and support services that will enable members to maintain high standards of integrity, knowledge, professionalism and community involvement, while protecting the public's right to own, transfer and use real property




Rick Nyle Harris

1,004 $190

To enhance human well-being and help meet basic human needs of all people, with particular attention to the needs and empowerment of people who are vulnerable, oppressed and living in poverty




William B. Vernon, state director

900 $365

To promote and protect the right of members to own, operate and grow their businesses




National Association of Social Workers, Rhode Island Chapter 220 West Exchange St., Suite 007 Providence, R.I. 02903 (401) 274-4940 Fax: (401) 274-4941 National Federation of Independent Business/Rhode Island 1800 Mineral Spring Ave., Suite 271 North Providence, R.I. 02904 (877) 262-7662 Fax: (800) 664-8701 Rhode Island Builders Association 450 Veterans Memorial Parkway, No. 301 East Providence, R.I. 02914 (401) 438-7400 Fax: (401) 438-7446

John Marcantonio

900 $400 to $450

To support the building industry's effort to enhance the economic growth and quality of life in Rhode Island; to promote the highest standards of professionalism for the betterment of the building industry and those it serves




Rhode Island State Nurses Association 150 Washington St. Providence, R.I. 02903 (401) 331-5644 Fax: (401) 331-5646

Cathy E. Duquette, president, Donna Policastro, executive director

750 $155 to $275

To foster improvement of health standards and the accessibility of health care for all, foster high standards of nursing practice and promote educational advancement for nurses




Smaller Business Association of New England 1601 Trapelo Road, Suite 212 Waltham, Mass. 02451 (781) 890-9070 Fax: (781) 890-4567

Robert A. Baker, president

700 $350 and up B

Enabling successful growth through profitable connections, innovation, 1938 leadership, advocacy and education



Rhode Island Hospitality Association 94 Sabra St. Cranston, R.I. 02910 (401) 223-1120 Fax: (401) 223-1123

Dale J. Venturini, president and CEO

652 $135 and up, varies based on business type

Voice of Rhode Island's lodging, restaurant and tourism industry




Rhode Island Dental Association 875 Centerville Road, Building 4, Suite 12 Warwick, R.I. 02886 (401) 825-7700 Fax: (401) 825-7722

Valerie G. Celentano

600 Approximately $1,200 C

To improve the dental health of the public and promote the art and science of dentistry




Rhode Island Trucking Association 660 Roosevelt Ave. Pawtucket, R.I. 02860 (401) 729-6600 Fax: (401) 729-5220

Christopher J. Maxwell, president and CEO

600 $275 and up, dependent on operations

To enhance the motor carrier industry's image, efficiency and productivity through promoting highway safety, providing valuable information and educational programs




Northern Rhode Island Board of Realtors 2178 Mendon Road, Suite 400 Cumberland, R.I. 02864 (401) 333-6343 Fax: (401) 333-0120

Michele L. Caprio, executive officer

475 $150

To provide members with the tools and support they need to serve the 1921 real estate market in the most ethical and professional manner and to foster the reputation of the board and its members



Rhode Island Section of the American Society for Quality P.O. Box 225 Seekonk, Mass. 02771 (508) 979-2238

Patricia Ellis, chairperson

358 $143



Rhode Island Manufacturers Association 333 Bucklin St. Providence, R.I. 02907 (401) 751-0160 Fax: (401) 751-0161

William A. McCourt

300 $250 and up D



Rhode Island Society of Environmental Professionals 105 Martin St. Rehoboth, Mass. 02769 (401) 301-7198

Chris Kuppens, president

300 $30-$175

To achieve world-class leadership in customer satisfaction by 1950 continually striving to create, promote and stimulate interest in quality technology and information; to foster continuous improvement, mutual respect and individual growth of all members and economic viability of the RIASQ section To serve as a unified voice for manufacturing in Rhode Island; to 1997 enhance the business and economic climate for local manufacturers by promoting the importance of manufacturing in economic and workforce development and lobbying for more business-friendly policies. To encourage and facilitate the development and support of the 1989 environmental services industry in Rhode Island and to provide a collective voice for the environmental community in the identification of key regulatory issues and reforms



Tech Collective 3 Davol Square, Suite 330A Providence, R.I. 02903 (401) 521-7805 Fax: (401) 521-7809

Kathie Shields

200 $150 and up

To inspire, engage, educate and employ a burgeoning technological work force in Rhode Island




Mark A. Male

193 $474

Trade association for life and health insurance agents




National Association of Insurance and Financial Advisors - Rhode Island E 2400 Post Road Warwick, R.I. 02886 (401) 739-2977 Fax: (401) 732-1708 Independent Insurance Agents of Rhode Island E 2400 Post Road Warwick, R.I. 02886 (401) 732-2400 Fax: (401) 732-1708

Mark A. Male, executive vice president

185 $625 F

To advocate on behalf of independent insurance agents and their clients




Year founded

Dues are based on the member company's number of full-time equivalent employees. Includes dues for the American Dental Association and one of eight local components. Dues are based on the number of full-time employees the member has in Rhode Island. The Independent Insurance Agents of Rhode Island and The National Association of Insurance and Financial Advisors - Rhode Island are both managed by Rhode Island Association of Insurance Agents. Dues vary depending on the size of the member agency.

LIST RESEARCHED BY Lindsay Lorenz Some survey recipients may not have responded; information is the best and most complete available as of press time. It is not our intent to endorse the participants. While every attempt is made to ensure the accuracy of the top lists, omissions and errors sometimes occur. Please send additions or corrections to: Researcher, Providence Business News, 400 Westminster St., Suite 600, Providence, R.I. 02903. To request a survey or to update contact information, write to

Upcoming Lists: Intellectual Property Lawyers (deadline May 16) and Executive Compensations (deadline May 23)

Providence Business News



but it looks dramatically different. I’ve had a number of comments that said it was much better,” he said. “When the from page one company offered the service, I said, “well I really don’t need this.” But after “I don’t know if [finding a job] will be just four sessions, I learned just how easier, only because of where the econo- much I didn’t know.” my is. But I know I’m better prepared,” Dave Rogers, senior vice president Fernandez said. and general manager at Lee Hecht OI Partners-Lifocus advertises that Harrison, a New Jersey-based firm Fernandez in fact will have less trouble with a Lincoln office that provides, finding a new job after going through among other services, career transition its program, which is custom-applied counseling and coaching, said his firm to clients’ laid-off workers, depending tracks their success rate for helping on employee position and employment laid-off employees find new jobs. length, among other factors. Compared to the replacement time The company recently released re- frames provided by the U.S. Bureau of sults of a survey it conducted with some Labor and Statistics, Rogers said, work140 clients and those companies’ for- ers who receive outplacement counselmer employees throughout the United ing re-enter the workforce about 50 States. percent faster than those who do not Seventy-eight percent of laid-off receive such services. workers rated their job-search skills as According to the bureau’s latest reexcellent or very good after receiving leased numbers, the majority of workcareer counseling. ers, at 53.1 percent, spend more than 15 After completing counseling pro- weeks on the job hunt; 38 percent spend grams, the number of former employ- at least 27 weeks searching. ees reporting just good or average job“What a coach does is help provide search skills declined 73 percent, going a clear focus for the job seeker, to help from 78 percent before counseling to 21 them find the best job for them and to percent after. land more quickly,” Rogers said. “Job “The crux of that survey is that folks seekers are often unprepared, they are who have been provided outplacement apprehensive, they lack confidence. Afare much more likely to land a position ter all, they just lost their in their industry and know job.” about the concept of how The American Mathto conduct a job-search ematical Society, a Provcampaign than those in idence-based organization companies that provide that works to advocate for no outplacement,” said mathematical research Thomas Wharton, managand scholarship through ing partner of OI Partnerspublications and other Lifocus. “There’s a lot to programs, hired OI Partlearn. There’s so much ners-Lifocus to offer outthat we do for them.” placement assistance to Margaret-Ann Cole Wharton founded Lisix employees laid off durRight Management focus 18 years ago and afing an August 2012 workvice president filiated with OI Partners force reduction. about nine years ago. “We just didn’t get the extra work The company and other local out[orders] we thought we would,” said placement firms often start working Tammy Walsh, human resources direcwith an organization before layoffs tor. happen, helping to guide client organiThe employees’ positions were elimzations through that process and then immediately working to help displaced inated and Walsh said the company, workers cope with the trauma of losing which places an emphasis on its caring culture, wanted to be sure the affected their job. “We help them get their confidence workers had severance packages that back. You can’t show up to get a new job would help them move on. “We felt that whether they would until you’ve got that confidence,” said transition to retirement or whether Margaret-Ann Cole, regional vice president in charge of career and manage- they were going to be out there looking, ment practice for the Northeast region that we wanted a service that would at Right Management, which recently be able to help them with that,” Walsh said. “We thought outplacement would reopened its offices in Warwick. “The reason for that [reopening] was help focus them.” Walsh said that each of the six embecause our clients have been clamorployees was offered varying amounts ing to have a local presence,” she said. The OI Partners-Lifocus survey, of outplacement services. At least one which included 510 displaced workers, previous manager now is employed revealed that those undergoing out- elsewhere. “I think everybody took advantage of placement counseling felt they most benefited from identifying key career the full amount of time that they were accomplishments (94 percent), market- provided,” Walsh said. “I’m not sure ing their strengths (93 percent), better they all utilized it as best they could.” Cole acknowledged that services defining their skills, values and attributes (91 percent), and evaluating their need to be tailored to individual workskills and marketplace demand for ers in order to have the best impact. She said Right Management comthem (90 percent). Fernandez, 57, said his counseling, pany surveys indicate that job seekers which involved four one-hour sessions, feel they benefit most from personal inmade it surprisingly clear that he didn’t teraction with the coaches. “Every person who is looking for a even know how his resume should be job looks for that in a different way,” written. Eighty-eight percent of survey re- Cole said. “When people think about spondents said their counseling helped outplacement, they don’t really understand. They think you’re just going to a with writing a winning resume. “I thought [mine] was pretty concise recruiter and that’s it. That’s not it.” n

‘You can’t show up to get a new job until you’ve got that confidence.’

Page 19 April 8-14, 2013

Providence Business News

20 n

April 8-14, 2013

health services

Aetna suit challenges high investor-owned-ER fees Bloomberg News After developing a chest cold and breathing problems last year, Susan Alexander went to First Choice ER, an independent emergency room in League City, Texas, drawn by its motto: “Real ER. Real Fast.� Treatment was indeed speedy, about 20 minutes. It was also real expensive, Alexander said. The bill was about $2,000, or as much as five times what the 56-year-old nurse might have paid for similar care at a doctor’s office. The charges included a $1,518 “facility fee,� typically assessed by hospitals and their ERs to support the space, services and equipment needed to keep dozens to hundreds of beds available. Yet First Choice looks nothing like a hospital. It sits in a single-story commercial building that shares parking space with a hair salon and an energy company. Alexander was left with an out-of-pocket bill of about $700. “I was astonished,� she said in a telephone interview. “It’s a rip off.� Freestanding ERs are among the fastest-growing areas of medical care, often offering 24-hour service, minimal waits, board-certified emergency specialists and complex testing technology. Proponents say they provide a safety-valve for overcrowded and understaffed hospital ERs. Critics worry they will make care more expensive for those not seriously ill, adding to national medical costs expected to rise to $3 trillion in 2014 and undercutting efforts by the 2010 health care law to reduce payments for individual medical

Some stand-alone ERs are owned by services. First Choice and other stand-alone doctors and investors, and others by ERs say consumers should expect hospitals, which do take Medicare and charges on par with those in hospitals Medicaid and are bound by a U.S. law because the service it offers is similar. that they treat all emergencies. Critics “We’re an ER,� First Choice spokes- say both often bill excessive fees even woman Heather Weimer said in a tele- though they largely treat patients with phone interview. “That means it will noncritical ailments such as the flu or cost more. We don’t try to hide it.� sore throats who could be seen in docAlexander’s case was “atypical,� ac- tor’s offices or urgent-care centers. cording to Weimer. It required a chest “Physician and investor-owned X-ray, steroid and breathERs are skimming off ing treatment and took the cream-of-the-crop palonger than 20 minutes, tients,� said John Milne, she said. First Choice had chairman of emergency medicine at Swedish Medno control over her out-ofical Center, a nonprofit pocket costs since that was health care system in Isbased on what her insurer saquah, Wash. “Many are covers, Weimer said. glorified urgent-care cenConsumers and some ters, but they still bill ER health insurers have a difcharges.� ferent view. Led by Aetna Texas passed a law in Inc., they say the facility fees charged by many of 2009 requiring licensed the new ER services aren’t stand-alone ERs to provide John Milne justified and lack transparwhatever treatment is Swedish Medical Center ency. Hospitals contend needed to ensure patients chairman of emergency the facilities drain away are stabilized, which genthe privately insured, erally means they can be medicine high-paying patients they safely transferred to a hosneed to survive. And many pital, regardless of their don’t treat the uninsured or patients on ability to pay. The state also has rules government health plans, people hos- governing hours of operation and repital emergency departments are re- quired equipment. As of Feb. 12, Texas had 56 licensed, stand-alone ERs, acquired to serve. That has prompted some states to cording to the state’s health-services require freestanding ERs that don’t department. take Medicare and Medicaid to provide At least 16 states have laws allowcritical treatment to anyone having ing freestanding ERs, with varying a health emergency, regardless of the licensing and operational guidelines, according to the American College ability to pay.

‘Physician and investor-owned ERs are skimming off the cream-of-thecrop patients.’

of Emergency Physicians, or ACEP, in Washington. Delaware doesn’t restrict who can own stand-alone ERs and requires that they provide service 24 hours a day, according to ACEP. Rhode Island doesn’t require they be open around the clock and Idaho says they must be owned by a hospital with a dedicated emergency department of its own. Forty-five states now have freestanding ERs owned by hospitals, led by Ohio with 29, Texas with 26, and Mississippi with 20, according to the American Hospital Association. Aetna, the third-largest private Medicare insurer, has sued at least three freestanding ERs and a hospital. In a lawsuit filed in August and amended in December 2012 in Houston federal court, Aetna said the ERs have “masqueraded as hospital emergency rooms, without a license or any of the associated overhead.� Hospital-owned ERs shouldn’t be lumped in with other facilities, said Trevor Fetter, chief executive officer of Tenet Healthcare Corp., the thirdbiggest publicly traded U.S. hospital chain. ERs owned by hospitals, he said, are indistinguishable from those located inside the main facility and they help keep the medical centers on an even financial keel. Building a hospital may cost $130 million, he said, versus $5 million or $10 million for one of Tenet’s freestanding ERs. Tenet has four such facilities, all in Texas, that the Dallasbased company says charge the same fees as those located inside a hospital. n


Locate your ad in the right neighborhood! Reach the upscale buyers you’re looking for... Business executives in the market for a beautiful new home in RI & nearby Mass.

FINE HOMES IS SHOWCASED ONCE A MONTH Feature your properties in FULL COLOR monthly No design fees • All ad sizes available



Gorgeous “Sammartino� custom Colonial is sited on a lushly landscaped acre on Love Lane. This 3652 sq ft, 9-room, 4 bed/2.5 bath home offers a spacious elegant interior, updated cherry/granite kitchen, and a gracious Dining Room. There are 2 fireplaces, large bedrooms and a versatile Bonus Room. Summer’s coming and the lovely gunite pool awaits! Easy walk to downtown E. Greenwich shops, restaurants, and marinas. Offered at $569,900

Enjoy the lifestyle that this Award Winning Waterfront Community affords. This stunning 3733 sq ft, 4 bed/3.5 bath home features a versatile floor plan w/a fabulous 1st floor suite/den addition. Fully appliance Chef’s kitchen opens to Family Room, 2nd floor Master suite offers its own deck and water views. High end appointments throughout with many amenities for the discriminating buyer. Community dock. Absolute move-in condition! Offered at $849,900

# %;OW\Ab`SSbÂ’3Oab5`SS\eWQV@7 && "&&"&#

Š2010 Coldwell Banker Real Estate LLC. Coldwell Banker is a registered trademark licensed to Coldwell Banker Real Estate LLC. An Equal Opportunity Employer. Equal Housing. Owned and operated by NRT LLC. RE16266 9/10

AGENTS Brand yourself or

Low Classified Rates - Discounts for frequency

your agency to PBN’s

The next FINE HOMES publishes May 20th AD DEADLINE IS May 14th

and professional

Call Ellen at 401.680.4808

extensive business

readership to sell your Executive Homes.







F ine Homes s n e

Real Estate Services from Here to Home


Private 12-ac waterfront exquisitely appointed custom estate. Scenic views from every room, tennis, mooring, 3-car gar, wine cellar, 2+ BR guest cottage.



Providence Business News

April 8-14, 2013 n 21

MARKETPLACE Commercial Real Estate

Commercial - East Bay

To advertise here

FOR LEASE – Bristol, RI

contact Ellen Goodlin

Retail | Commercial | Office

at 401-680-4808

The Bristol Shopping Center


Established 1959

to reserve your

Hope St. (Rt. 114) & Gooding Ave. Intersection

space today !

2+ Acre PAD Site 3,100 SF End Cap 660 SF 2nd Floor Office Space 6,100 SF Adjacent to Dollar Tree


On-Site Management | Easy Access Spacious Parking | High Traffic Intersection

Quickbooks Training Classes

Key businesses: Dollar Tree, ACE Hardware, Dunkin Donuts, Bank Newport, People’s Credit Union, restaurants, consignments, laundromat, pet foods, nail salon.


Tel. 401-253-3190 Fax 401-253-3494

Now enrolling! Join Heather Satterley, an Intuit Certified Quickbooks Expert, for in-depth QuickBooks training. Each session runs 6 weeks and meets evenings in Warren, RI. Classes are taught hands-on using state-of-the-art computers and the latest QuickBooks Premier software. Or register for our 1-day Bootcamp session! To learn more, visit, email or call 401-433-3636! Supply Chain Networking and Learning INSTITUTE OF SUPPLY MANAGEMENT (ISM) Membership Applications Available Rhode Island Chapter of ISM is open to members from the surrounding area. ISM Greater Rhode Island supports the CPSM Certification as well as monthly dinner meetings with informational speakers and industry tours. Another benefit of membership is the CPSM exam preparatory classes held annually in the area. Watch our web site for class schedule for the CPSM Exams. Add Supply Chain Management to your resume and join ISM-GRI today. FOR MORE INFORMATION: See for details or call ISMGRI Office at (401) 335-3593


All Companies offering Business-to-Business Services List your company’s profile in PBN’s

Business Resource Directory Accounting/Tax/Bookkeeping Services • Advertising/PR/Marketing • Architectural Services • Art Services • A/V/Technology/Telecom • Building Services/Maintenance • Catering • Commercial Cleaning • Commercial Interior Design • Computer & Equipment Providers/Service/Repair • Consultants/Training • Contractors • Corporate Travel • Credit Card Processing • Delivery Services • Electronics/Computer Recycling • Environmental Remediation Events Planners • Financial Services • Global Trade • Graphic Design HR • Insurance • IT/Web Design/Networks • Landscaping/Plant & Floral Services Legal Services • Office Equipment/Furniture/Supplies • Parking Facilities • Phone Services • Printing • Promotional Products • Security Systems • Signage • Staffing • Transportation • Utilities

Amounts to less than $40/week and runs every week for 13 weeks/3 months. (Prepaid quarterly at $515.)


Focus Report

Real estate &


COMMERCIAL REAL ESTATE SALES April 22nd To advertise your Commercial or Residential properties, agency, agents or Real Estate related services in this high-profile issue.

Contact Ellen Goodlin at 401.680-4808 or email

ReseRve/Ad coPy By APRIL 16th 400 Westminster Street, Suite 600 Providence, RI 02903

Providence Business News

22 n

THROUGH SALES of special cake, Gregg’s Restaurants and Pubs have donated approximately $125,000 to Hasbro Children’s Hospital. Pictured from left to right are Dr. Robert B. Klein, pediatrician-in-chief of Hasbro Children’s Hospital with Bobbie and Bob Bacon, co-owners of Gregg’s Restaurants and Pubs.

Gregg’s Giving Cake sales raise $12,000 for Hasbro As a result of its annual Giving Cake Program, Gregg’s Restaurants and Pubs recently donated $12,000 to Hasbro Children’s Hospital. For more than a decade, Gregg’s has been able to raise money for the hospital by donating a portion of the sales of its special four-layer chocolate peanut butter cake, The Giving Cake. This cake was originally created specifically for the cause by the restaurant’s master bakers. For each slice sold, Gregg’s donates 25 cents to the hospital, and for each

cake sold, it donates $2. Since the Giving Cake Program began in 1997 as a community partnership with the hospital, Gregg’s Restaurants and Pubs have raised approximately $125,000. “We owe this wonderful accomplishment to all of our loyal and dedicated customers,” said Bob Bacon, owner of Gregg’s Restaurants and Pubs. “It is with their support that our fundraiser for Hasbro Children’s Hospital continues to be a success, year after year.” n

Calendar of Events

Island Chamber of Commerce will hold an inaugural meeting for a network for newbusiness owners from 6 to 8 p.m. at the Chamber, 6 Blackstone Valley Place, Suite 402 Lincoln. This group is for new smallbusiness owners interested in having fellow business owners to talk to and share ideas, questions and frustrations in a confidential environment. Participants cannot have been in business for more than three years, and cannot be individuals in the start-up stage. Participants will be limited in terms of competitors. Meetings will be held once a month and are limited to 12 to 15 people. Cost: $15 per session. For more information or to register, contact Douglas Jobling at (401) 263-5124 or

THURSDAY, APRIL 11 HR-MANAGEMENT CONFERENCE The Rhode Island Society for Human Resource Management will hold its 15th Annual Legislative and Employment Law Conference from 8 a.m. to 5 p.m. at the Providence Marriott Downtown, 1 Orms St., Providence. Attendees will have breakfast and hear from a variety of speakers on employment law, compliance and legislative issues. Speakers include Christopher Koller, Rhode Island health commissioner; Christine Ferguson, director of the Rhode Island Health Insurance Exchange, Peter Andruszkiewicz, president and CEO of Blue Cross & Blue Shield Rhode Island, and others. Registration and breakfast will begin at 7:30 a.m. Cost: $95 members, $120 nonmembers, $135 at the door, $40 students. For more information or to register, email or visit

MONDAY, APRIL 15 CONGRESSIONAL BREAKFAST The Greater Providence Chamber of Commerce will hold its 2013 Congressional Breakfast from 8:15 to 10 a.m. in the Grand Ballroom of the Crowne Plaza ProvidenceWarwick, 801 Greenwich Ave., Warwick. The breakfast includes a dynamic discussion with Sen. Jack Reed, Sen. Sheldon Whitehouse, and U.S. Reps. David N. Cicilline and James R. Langevin. The politicians will focus on critical issues facing the business community. Cost: $45 individuals, $600 tables of eight. For more information or to register, call (401) 521-5000 or visit

TUESDAY, APRIL 16 NEW-BUSINESS NETWORK The Rhode Island Small Business Development Center and the Northern Rhode

WEDNESDAY, APRIL 17 EAST BAY NETWORKING The East Bay Chamber of Commerce will host a business-after-hours event for networking from 5:30 to 7 p.m. at Luna Sea, 259 Thames St., Bristol. During the event, members of the local business community will chat and exchange business cards. Cost: $5 members, $10 nonmembers. Attendees are asked to bring a nonperishable food item to be donated to local food pantries. For more information or to register, call (401) 245-0750 or visit

MONDAY, APRIL 22 ROTARY MEETING The Rotary Club of Providence will host guest speaker Dr. Chris Van Hemelriyck at 12:15 p.m. at the the Providence Marriott Downtown, 1 Orms St., Providence. Van Hemelriyck will discuss Earth Day, focusing on water for Cambodia. Cost: $20, includes lunch. For more information, call Suzanne Cannon at (401) 885-7017.

April 8-14, 2013

FROM LEFT: Dennis Algiere, a senior vice president with Washington Trust; Joseph J. MarcAurele, Washington Trust chairman, president and CEO; and Russell Partridge, executive director of the Warm Center, tour the newly constructed facility’s kitchen.

Washington Trust provides $50,000 to Warm Center The Warm Center, a resource for those in need in Westerly, recently announced that is has received a $50,000 gift toward its capital campaign from The Washington Trust Co. The center, which provides food, shelter and other services, is currently in the process of raising money for the construction of a new center and for renovations of its existing center, a building lacking adequate space and accessibility for those who use wheelchairs. In its new center, the organization

TUESDAY, APRIL 23 THE INSIDE TRACK The Greater Providence Chamber of Commerce will offer a seminar on harnessing creativity from 8 to 9:15 a.m. at the Chamber, 30 Exchange Terrace, Providence. “The Inside Track – Creativity: Your Business Depends on It” includes local business leaders who will share information on developing internal pipelines for cultivating solutions and cost-saving ideas for businesses. Participants include Jeanette Palmer, director of client services at NAIL Communications; Kara Orr, vice president of special projects at DCI; Peter Bramante, managing director at FirstWorks; and Anne Berg, owner of Backroads Clothing. Additional presentations will be given by Annette Tonti, CEO of MoFuse Inc.; Scott Berkey, CEO of Dassault Systemes Simulia; and Dr. Todd Flaherty, president and CEO of The College Crusade of Rhode Island. This event is free, but open to members only. For more information or to register, call (401) 521-5000 or visit Chamber ANNUAL MEETING The Newport County Chamber of Commerce will hold its annual meeting from 5:30 to 7:30 p.m. at OceanCliff Hotel, 65 Ridge Road, Newport. During the evening, the Chamber will welcome new board members and present its 2012 Community Fund Awards. Capt. Douglas Mikatarian, commanding officer of Naval Station Newport, will be the guest speaker. Cocktails and hors d’oeuvres will be served. Registration is free for members, but registration is required. For more information or to register, contact Jane Roggero at (401) 847-1608 or jane@, or visit


plans to offer affordable apartments for those with disabilities, and more space for case management and the implementation of job-readiness programs. “Once again Washington Trust has taken a leadership role to help our community protect and shelter those in need,” said Russ Partridge, executive director of the Warm Center. Joseph J. MarcAurele, chairman, president, and CEO of Washington Trust, said the bank was proud to support the center. n HarboneOne U will offer a seminar on executing a proactive sales plan from 8:30 to 10:30 a.m. at its campus, 131 Copeland Drive, Mansfield. Participants will hear from Ken Cheo, owner of Winfree Business Growth Advisors, on how they can turn more referrals into prospects, focus marketing efforts to attract the right targets and implement a predictable and controllable selling system. This event is free and open to the public. For more information or to register, call (508) 895-1300 or visit BUSINESS AFTER HOURS The Newport County Chamber of Commerce will hold a business-after-hours event for networking from 5 to 7 p.m. at The Newport Beach Club, 22 Newport Harbor Drive, Portsmouth. Attendees will socialize with fellow members of the business community and enjoy refreshments and a complimentary photo booth. Door prizes include tickets to Firehouse Theater, a $25 Newport Gift Certificate, computer-training sessions and tennis lessons. Cost: $5, can be paid online or at the door. Proceeds benefit Chamber programs and events. For more information or to register, call (401) 847-1608 or visit the

FRIDAY, APRIL 26 MILITARY, VETERANS JOB FAIR A free job fair for military members, veterans and their families will be held from 11 a.m. to 3 p.m. in the fifth floor ballrooms of the Rhode Island Convention Center, 1 Sabin St., Providence. Businesses with jobs available are encouraged to exhibit. There is no fee for companies or job seekers to participate. Companies will be provided with a table, tablecloth and discounted parking. Preregistration for companies is required by Friday, April 19. For more information, company registration or job-seeker registration, call (401) 462-8970 or visit


Providence Business News

Rev. Dyszlewski new minister at First Unitarian Rev. Eugene Dyszlewski, an ordained minister in the United Church of Christ, was recently installed as minister of social justice at First Unitarian Church of Providence. Dyszlewski, an advocate of gay, lesbian, bisexual and transgender rights, is the chair of the Rhode Island Religious Coalition for Marriage Equality and has served on the board of directors of Marriage Equality Rhode Island. He is also the founding coordinator of East Bay PFLAG (Parents, Families and Friends of Lesbians and Gays), and is the recipient of the Rhode Island Pride Committee’s 2008 Pyramid of Pride Award for outstanding contribution to the GLBT community. PBN: Tell us a little bit about your role. DYSZLEWSKI: As community minister for social justice, I am charged with taking action in addressing social issues. For Unitarians, church is more than just a meeting on Sunday morning; I provide a pastoral presence in our outreach and advocacy efforts. My approach is to engage in dialogue on social justice concerns with various groups in the community.

Resilient children are children who are loved and cared for.

PBN: In addition to serving First Unitarian Church of Providence, you’re also the chair of the Rhode Island Religious Coalition for Marriage Equality. Why is this cause important to you? DYSZLEWSKI: The children in my Sunday school with two mommies or two daddies are no less precious to me than the children with a mom and a dad, and a mom or a dad. There are no substandard church families. I believe in the value and the sanctity of marriage. Gay and lesbian couples want to marry for the same reasons straight couples do – to show their love and commitment to each other and to nurture and protect their family. PBN: Before you became a minister, you spent 25 years in the behavioral health care field. How has that experience informed your work? DYSZLEWSKI: Being a therapist offers valuable insight into the inner workings of the human soul. After listening to people struggling with problems and issues in their lives, I have grown in admiration for their courage and perseverance. Suffering happens but healing is possible. I have also come to believe very convincingly that it really does take a village to raise a child. Resilient children are children who are loved and cared for by the many adults in their lives. n

ARCHITECTURE Keara Duffy has been hired as an intern architect by Vision 3 Architects. Duffy has completed two internships with the firm and is currently a member of the projects teams working on Majestic Honda and a McDonald’s. She holds a master’s degree in architecture, in addition to a B.S. in architecture with a double minor in art and architecture and digital media/ photography from Roger Williams University.

David Rozen has been promoted to senior vice president and chief financial officer of Corvias Group. Rozen, who previously served as senior vice president of finance, will oversee external financial relationships with the company’s institutional partners while continuing to run day-today financial operations of the company and its divisions. Rozen holds an MBA from Boston University.

Christen Robbins has been appointed to the board of directors of the Rhode Island chapter of the American Institute of Architects. Robbins, who also serves on the organization’s committee on the environment, is a LEED Accredited Professional and is employed with Vision 3 Architects. She holds a bachelor’s of architecture degree from Roger Williams University.

Raymond Way has been hired as a project manager at Site Specific, where he will be responsible for managing commercial, institutional and residential construction projects in the Rhode Island area. Way has more than 10 years of experience managing construction projects throughout New England and holds a master’s degree in business administration from Johnson & Wales University.



Diana Mangaser has been hired as junior designer and project assistant at Site Specific. In her dual role, Mangaser will collaborate with the design team and play a critical support role in project management. She holds a bachelor’s degree in architecture from University of California, Berkeley, and a master’s degree in architecture from Rhode Island School of Design.

Kristin L. Kaczmarek has been hired as a landscape architect at Joe Casali Engineering, where she is responsible for preparation of landscape plans, construction documents and environmental permitting for commercial, residential and public projects. She holds bachelor’s degrees in landscape architecture and fine arts from the University of Rhode Island.

HEALTH CARE Sandra Cullen has been appointed vice president of LeadingAge RI. Cullen is property administrator of Winslow Gardens, where she is responsible for the development, implementation, evaluation and direction of the facility as well as its programs and activities. She holds an associate degree in nursing from the Community College of Rhode Island and is a licensed assisted-living administrator and certified occupancy specialist. Thomas Day has been appointed to the board of trustees of the Providence Center. Day serves as senior vice president in the Providence office of Janney Montgomery Scott LLC and is also a senior partner with the Elder, Gardner & Day Group. He holds a bachelor’s degree in finance from the University of Rhode Island and Series 7, 65 and Rhode Island Insurance licenses. Dr. Renee B. Rulin has been appointed to the board of trustees of the Providence Center. Rulin is a boardcertified family physician with more than 20 years of experience. Currently, she is UnitedHealthcare’s chief medical officer for Rhode Island Medicaid. Rulin has previously worked in community health centers and in private practice. She holds a master’s of public health from Harvard University.

Page 23 April 8-14, 2013

Matthew Trimble has been appointed president of LeadingAge RI. Trimble is administrator of the St. Elizabeth Home in East Greenwich, where he directs the day-to-day operations. Trimble has served on various professional and civic boards and is a graduate of the Theta II class of Leadership Rhode Island. He holds a bachelor’s degree in health management and policy from the University of New Hampshire.

INSURANCE Brian Feeney has been named finance manager at FM Global. He is responsible for managing a team that performs financial analysis related to the company’s special projects and corporate initiatives. Feeney joined FM Global in 2007 as an accountant. Previously, he was the financial controller at Brown Broadcasting Service. He holds a bachelor’s degree in accounting from Bryant University. Dennis Martell has been named director of professional relations and network development at Altus Dental. He will oversee the development of a comprehensive recruitment program designed to grow the Altus network in the Northeast Region. Martell has nearly 20 years of related experience and holds a bachelor’s degree in business administration from University of Massachusetts at Lowell. n

Page 24 April 8-14, 2013


Providence Business News


Nursing project salve to R.I. health needs With the creation of the Rhode Island Coalition for the Future of Nursing, we are witnessing the power that collaboration can have to solve problems in the 21st century. Driven by a $3 million initiative of the Robert Wood Johnson Foundation and AARP to improve health outcomes for the nation’s communities, the program is designed to help nurses gain access to better education while supporting effective – and cost-effective – primary care. The host of Rhode Island organizations involved speaks to the need for the program, which will provide residencies for unemployed or underemployed nurses as well as new nursing-school graduates that reach beyond traditional acute care to include nursing care and community-health clinical care. Twelve different stakeholders in the state’s health care system as well as The Rhode Island Foundation, the Robert Wood Johnson Foundation and, most importantly, the Governor’s Workforce Board have contributed a total of $645,500 to support the effort. The program is seen as unique in the country for the breadth of its scope and has given some of the stakeholders a sense that it may be able to attract even more funding, which would help expand its size from the expected 20 residents in the first session this fall and 40 residents in the next session. But even if this exciting new coalition is not able to garner more investments, it should stand as an example of how the public and private sectors should be able to leverage Rhode Island’s talents to solve major problems. All it needs is for someone to identify a clear goal and for each of the players to put aside their egos and put their shoulders into the effort.

Great CFOs do more than add numbers Last week, Providence Business News held its third Chief Financial Officer Awards program, a celebration of the men and women who help secure the success of their companies. As the honoree profiles in the special section that is included in this week’s issue make clear, being an outstanding CFO is about far more than making accurate numerical calculations. From understanding the cultures of different companies in order to make a merger work to selling a company to potential (and existing clients) to teaching other employees how they play their part in the company’s financial success, the modern CFO needs to immerse himself in the enterprise’s details and learn to communicate clearly and consistently to the rest of the staff and often the outside world. If he doesn’t, it doesn’t matter how well he knows how to add and subtract. Read the profiles, and if you are a CFO, think about expanding your perspective to better serve your company. And if you are looking for a CFO, keep in mind that the best ones are far more than human calculators. n

The art of the apology Have you heard the story of the colossal custom- appoint a second time. The shallow “if I offended er service bungle over the “bedbug letter”? anyone” indicates that you are only sorry because A guest in a hotel finds himself attacked by bed- you were forced into the apology. I’m curious, does bugs during his stay. He writes an angry letter to anyone take those kinds of apologies seriously? Or the president of the hotel company. Within days, do they sound like something your mother made the president sends the guest a heartfelt apology, you say when you were a child? which reads in part: “I can assure you that such In business situations, apologies are generally an event has never occurred before in our hotel. I related to poor service or defective products or promise you it will never happen again.” missed deadlines. Those apologies must go beyond Sounds good, except for one small detail: Includ- words. ed with the apology is the guest’s original letter. First, admit your mistake. Don’t gloss over the Scrawled across the top is the message: “Send this error or the effect it had on your customer. Get to idiot the bedbug letter.” the point and own the situation. You will So it begs the question, who is sorry not win the blame game. now? Next, offer a solution that will demonThere are several lessons to be learned strate your sincere desire to make things from this tale: right. Even if the customer had some ren Remedial customer service may start sponsibility, the cost of fixing one mistake with an apology. is much lower than trying to repair a repun Never, ever mess up an apology. tation after you’ve been panned on Facen The apology is almost always the start, book, Twitter or Angie’s List. not the end, of finishing things. Third, express your intention to make n If you think being sorry solves a probsure the same mistake never happens lem, you will really be sorry. again. Offer the customer an opportunity n Finally, the cost of the fix is nearly to make suggestions, and be prepared to always greater than doing things right the Harvey Mackay deal with critical feedback. Be sure to first time. thank the customer for his input. Start with the premise that everyone Finally, learn from the experience and use the makes mistakes. It’s human nature. What happens next is what demonstrates the true level of re- lesson to train your staff. Make sure they undergret. The hotel president likely lost that customer stand that even minor mistakes and disappointforever. Unfortunately, it doesn’t stop there. That ments can cause major damage to your company’s customer tells family, friends and anyone who will good name. listen about his experiences – both with the bugs So my ideal apology might read: “We are so sorry and the insulting letter. Reputations are ruined in for messing up what could be our only opportunity an instant. to serve you. Your disappointment in us is comBusinesses have long understood that bad cus- pletely justified. We will fix this problem immeditomer experiences will be reported to family and ately and will not consider the case closed until you friends nine times more than good experiences. are completely satisfied. Here is the name, email Misery loves company, I guess. and phone number of the person you can contact Even the most sincere apology has limited effect. 24 hours a day to question, complain or check the But if it helps a little, it’s worth the effort. So don’t progress of your situation.” Then insert the name blow what could be your only opportunity. of the president of the company. That should let the We see an apology from some thoughtless public customer know that you’re serious. n figure every week: “If I offended anyone, I apologize.” “My words were taken out of context.” “I Mackay’s Moral: Saying you’re sorry and didn’t realize that my actions would cause such a showing you’re sorry are not the same thing. stir.” All pretty pathetic attempts at sounding sorry, in my opinion. Train your brain to think before you speak, act Harvey Mackay is the author of the New York Times or tweet. Self-restraint is not old-fashioned. Re- best-seller “Swim With the Sharks Without Being member that your private conversations or anon- Eaten Alive.” He can be reached through his ymous postings may be anything but private and website,, by emailing or by writing him at anonymous. The apology is just the beginning. It is critical to MackayMitchell Envelope Co., 2100 Elm St. SE, get it right. So take steps to be sure you don’t dis- Minneapolis, MN 55414.

Mackay’s moral


Providence Business News

Page 25 April 8-14, 2013

Hospital beds, health planning and controlling costs In business, many major projects begin with a needs assessment. Since becoming involved with health care reform years ago and helping Ted Almon to form the grassroots reform group today known as HealthRIght, I have long advocated such a planning process for our health care system. I can happily report we have made some progress in convincing our state’s leaders of the importance of a highly organized and informed planning process toward re-engineering Rhode Island’s health care infrastructure to be more efficient, more effective and less costly. Coordinated health planning was passed by the General Assembly several years ago and finally received at least nominal funding at the outset of the Chafee administration. Now, with the release of the hospital-bed assessment by the Lewin Group, we are starting to see results, admittedly sketchy, of that effort. With the report, Lewin has provided a rather broadstroke overview of the state’s system of hospitals, the single-

Guest Column

most-costly element of our provider infrastructure. Already some in the media are excitedly drawing conclusions from the report which are not explicitly stated, namely that the state may have several hundred “extra” hospital beds and perhaps even one excess facility. Before leaping to a conclusion, however, a more reasoned analysis of the findings would seem to be in order. With regulators in the R.I. Department of Health and the attorney general’s office facing imminent decisions about changes in control of a number of the state’s hospitals, I think we need to get this right. Such decisions, once made, will not be easily corrected, and the costs and results will be with us for a long time. The report itself acknowledges that there is no recognized standard for how many hospital beds are needed to support a given population. It depends on myriad variables and begs the question of how much “excess capacity” should be maintained for seasonal fluctuations and/or emergency or disaster situations. Should we decide to bear these risks and lean down the hospital network, it is still

rather uncertain how much would be saved. Most hospital insiders concede that simply reducing bed capacity across the entire system would decrease costs only marginally. If an entire facility could be eliminated, how would we choose which one? There will be those who suggest that market forces should be the only proper way for the system to evolve. If that opinion prevails, we will essentially have a natural selection process as crude and disorderly as any in nature. Like shipwreck survivors on an island with insufficient food and water for all, the fiscally fittest will eventually outlast the others. If we allow private (for-profit) enterprises to support some of the weakest, the drama will last longer and could have different outcomes. In spite of my business orientation and belief in true competitive markets, I cannot see how such a process makes any sense when rational planning and collaboration among our existing charitable

Letters To The Editor Expanded sales tax putting too much pressure on pet servicers To the Editor: For more than 70 years, my family has dedicated their lives to taking care of family pets in Rhode Island. From grooming and day care to veterinary services and boarding, we have devoted our expertise and our passion to pets. Those of us who work at the Rhode Island Animal Medical Center and Four Paws Resort, do what we do for the love of animals. It’s not just the family business – it’s a “calling.” But the state of Rhode Island has interfered with our business, and our decades-old passion to help keep animals safe and healthy and serve the community.

I am a small-business owner. Since the Great Recession, many pet owners have had to cut back on various services – either they have not brought their pets in at all, or their visits have been less frequent. Our expenses do not become fewer just because we have fewer clients. Last year, the state passed a bill to impose a 7 percent tax on pet services. That law went into effect this past October. Since this tax has gone into effect, our tax burden has increased six-fold, from an average of $600 per month to over $3500! In addition to losing clients, the penalties for being late are more than the sum total of two months of our old monthly tax rate. Our staff, like our clients, is like family to us. We employ a great many low-

hospitals could alleviate the disruption, chaotic transition and danger to patients the “free market” alternative would surely involve. Of course planning is one thing, but in business we take for granted that we have the authority and ability to implement our plans once they are fully developed. This certainly isn’t the case for the Health Care Planning and Accountability Advisory Council. No matter how prescient the conclusions and recommendations from its research may be, no matter how fair and objective, whatever it produces as advice to the legislature will be immediately subject to a tsunami of specialinterest lobbying. Frankly, I think having given the power to appoint the members to the legislature and governor; we should then give the group the authority to enforce its decisions. Now I realize this may seem like a drastic centralization of power, which is where the concept of coordinated health

Like shipwreck survivors on an island … the fiscally fittest will eventually outlast the others.

income residents of Rhode Island. If we do not receive some relief, we will have to substantially reduce our staff. This is not what we want, it is not fair to the employees and it does not bode well for Rhode Island. Why are pet services being singled out for this service tax? I’ll tell you why: because Rhode Island lawmakers know we do not have the well-funded resources required to produce a strong lobby as some other occupations – like attorneys, carpenters, plumbers, medical professionals and other trades. We not only must bear the undue burden of this tax, which is negatively affecting our businesses, but we also have to suffer bullying from those in power who know we have the weakest coffers to fight them. Most groomers work their jobs as second incomes for their families and

planning comes in. The present system is so fragmented that it has lost the ability to affect the health care system in any meaningful way. A perfect example is the Health Services Council of the Department of Health. Despite statutory authority through the director to rule on licensure and capital spending, the lack of an overarching plan often has made its deliberations meaningless, and the dedication of its expert volunteers squandered in petty skirmishes. HealthRIght intends to introduce legislation later in the session to fix the coordinated health planning process – to make it more robust, better funded and effective in guiding the inevitable changes which we need. Most notably we will propose to change the name and hence the mission of the Council to the Healthcare Planning and Accountability Authority. Stay tuned. n Ted Almon is the co-chair of the executive committee of HealthRIght, a statewide coalition of health care industry, small business and labor dedicated to health care reform, and this piece represents the position of the executive committee.

do not earn much more than $25,000 per year if they are lucky. This proposed tax is hurting the working poor as day care and boarding staff jobs support many low-income households and young workers. But lawmakers have the power to change that. There are three bills in front of the General Assembly that could repeal this burdensome 7 percent tax on pet services. House bill 5095, House bill 5117 and Senate bill 66 would remove the language from the law that currently imposes this tax. If these bills are passed, we can continue to offer our services to Rhode Island, maintain our current staff levels and be part of a growing, rather than a dying, local economy.

Charles Callanan

Director of the Rhode Island Animal Medical Center, Warwick

Reader response A look at’s weekly poll, plus this week’s poll March 24-30

This week’s Poll

Should the NECAP tests be one of the benchmarks used to determine high school graduation?

Are you looking forward to the full

Page views: 687

implementation of the Affordable Care Act?

• Yes • No • I’m not sure To vote in this week’s poll, go to and follow the link on the home page.

Op-Ed, Letters policy: Providence Business News welcomes opinion pieces as well as letters from its readers on local business, financial and political issues. Opinion pieces and letters cannot have been published anywhere else before appearing in PBN. They should include a daytime telephone number and e-mail address. All pieces may be edited for space and clarity, as well as for length. Send to: Editor, Providence Business News, 400 Westminster Street, Suite 600, Providence, RI 02903,, or by fax: (401) 274-0670.

26 n

Providence Business News

April 8-14, 2013

Health Care

Nurse residency program seen improving patient care By Lindsay Lorenz

The current demand for nurses is only expected to grow in the coming years. Add to that the challenges of a changing health care system on today’s nurses, and the need for a statewide clinical nurse residency and mentoring program becomes clear. The $645,500 program, spearheaded by the Rhode Island Action Coalition for the Future of Nursing and announced last week, is supported by numerous partners in the private and public sectors. The program, expected to recruit and place nurses this summer, is designed to improve patient care in Rhode Island while increasing the skills of unemployed and underemployed nurses. It will also provide experience to new graduates of the state’s nursing programs. The Rhode Island Foundation CEO Neil Steinberg called the program an “intersection of health care and economic development,” and added he was proud to see that Rhode Island had attracted national money, and that its businesses and organizations had partnered together to make a difference.

Inventory from page one

turnaround is welcome relief for homeowners trapped under large mortgages. Across the country, home prices have climbed steeply in recent months – the Case-Schiller 20-city composite index rose 8.9 percent in January – pulling many who owed more than their houses were worth above water, while raising concerns about a new real estate bubble. Of course, Rhode Island and the Providence metropolitan area have been one of the last places to feel the rebound – the state ended 16 months of year-over-year price declines in October (as measured by Multiple Listing Service) and Providence-Fall RiverNew Bedford median prices in January only increased 0.6 percent, according to Corelogic. But there’s a growing consensus that even this market is headed in the right direction. The Rhode Island Association of Realtors last month reported Ocean State single-family sales rose year over year for the 20th consecutive month in February and the median price climbed 11 percent. (February 2012 had the lowest Rhode Island median single-family sale price, $170,000, since the recession.) What’s puzzling about the local recovery is that the increase in demand hasn’t prompted more homeowners to test the waters and put their homes on the market. In February, the 4,301 houses listed for sale in Rhode Island represented an 18 percent decline from the same period last year and 17 percent decline from the same period in 2011. “The inventory thing we are seeing everywhere, even more in the West than the Northeast,” said Patrick Newport, an economist who tracks real estate with IHS Global Insight in Lexington, Mass. “Part of it is seasonal, but in most of New England there hasn’t been a need to build in so long, because the population isn’t going up, that now there just isn’t that much out there.”

“Investing in this first-of-its kind program shows that together, we are investing in the future of our state’s health care professionals and quality health care for all Rhode Islanders,” he said in a statement. According to Lynne Dunphy, a University of Rhode Island faculty member, plans for the initiative have been in the works for a few years, since the release of the Institute of Medicine 2010 Future of Nursing recommendation of a residency program for the state. Dunphy said what’s unique about the program’s statewide model is that it’s educative, not retentive. Often, nursing graduates will start at a hospital, which will invest in the graduate, and then the graduate will leave, taking what they’ve learned to another institution. That’s not a concern with this program, Dunphy said. Rather, it aims to provide experiences to students that will enhance their employment opportunities, improve their skills and create a vehicle to attaining a bachelor’s degree. But it’s also focused on encouraging nurses to practice beyond acute care. Nurses who are selected will receive a stipend and will practice at three Setting aside the lack of new construction in New England, which preceded the recession and has its own drivers, Newport said the top reason more homes are not hitting the market is that so many remain too far underwater for recent price gains to mean much. “If you are still deep underwater you can’t sell; but even if you are a little bit underwater, because things seem to be picking up, you may wait it out a season or two to have a little equity built up,” Newport said. “Interest rates are so low that you make nothing having money in the bank, but if you wait it out a few years, maybe you will make 5 percent on appreciation.” Despite the recent market upswing, homeowners in the Providence area who bought too much house at the wrong time are still a long way from getting their head above water. According to figures from CoreLogic that defy most market trends, the number of upside-down homes in the Providence area actually rose from 73,375 in the third quarter of last year to 76,655 in the fourth quarter, with 22 percent of all mortgages in negative equity. As recently as two years ago, foreclosures and short sales kept a steady stream of properties on the market even when most homeowners weren’t considering listing their houses. But those properties, many requiring major renovations, have been bought in large numbers for low prices by investors and the flow of distressed sales has ebbed in the past year. A few have deteriorated so much they’ve been condemned, reducing the total housing stock further. For those interested in selling so they can reinvest in a property with more upside, the lack of houses available can be a self-reinforcing deterrent to testing the market. “In some areas of the state, such as Barrington and the East Side of Providence, people are not putting houses on the market because they are afraid they will sell too fast,” said Sally Lapides, president of Residential Properties in Providence. “They are worried they will end up with no place to go.”

Collaborative effort Sixteen different funding sources raised $645,500 for the new clinical nurse residency and mentoring program: n $247,000 – Governor’s Workforce Board n $150,000 – Robert Wood Johnson Foundation n $75,000 – Employer incentives from Governor’s Workforce Board n $75,000 – Routhier Foundation n $37,500 – The Rhode Island Foundation n $37,500 – Blue Cross & Blue Shield of Rhode Island n $8,000 – Lifespan n $5,000 – R.I. Center for Nursing Excellence n $3,000 – Care New England n $2,500 – R.I. State Nurses Association n $2,500 – R.I. Nursing Institute n $2,500 – University of Rhode Island, Rhode Island College, Community College of Rhode Island, St. Joseph’s Hospital and Salve Regina University COURTESY UNIVERSITY OF RHODE ISLAND

different sites. Residencies could last up to nine months and will take place in practice settings such as nursing homes, hospitals and community clinics across the state. Rick Brooks, executive director of the Governor’s Workforce Board, said health care is changing, and one of the issues in the industry is constriction in the acute-care sector and expansion in the outpatient, nonacute sectors. This particularly affects nurses with associ-

ate degrees who might not have the necessary skills for other areas. Peter Andruszkiewicz, CEO of Blue Cross & Blue Shield of Rhode Island, said the program encourages nurses to serve in primary care, a critical part of health care. He said that there are already programs to attract physicians to this practice area, but none for nurses. “But without nurses there is no primary care,” he said. n


SUPPLY AND DEMAND: Robert Martin of Century 21 CrossRoads shows off a Cumberland house. He says demand has increased, but bidding wars are uncommon.

Looking to the traditional spring buying season, Lapides expects a typical increase in homes listed due to the warm weather, but the improving market shouldn’t cause a dramatic rise in “for sale” signs on Rhode Island streets. “You will see more inventory in the spring, but not a glut, just a normal spring inventory,” Lapides said. “And I think we are going to have a steady growth in the market, but I don’t think a huge appreciation. I don’t see prices going up 10 percent here.” In northern Rhode Island, Robert Martin, of Century 21 Crossroads in Woonsocket, said demand has increased, but the kind of bidding wars experienced in more rarified parts of the region are uncommon. “I see inventory tightening, but it is not that there are no houses available,” Martin said, attributing at least some of the low inventory to the comparatively harsh 2013 winter. “I find in northern Rhode Island the market that is tightening the most is homes from $150,000 to $260,000, those are being gobbled up and sell much faster if they are priced

correctly.” Back in the hotter market of Newport, Chapman at William Raveis said even though job growth and population in Rhode Island have been stagnant, the absence of new homes entering the market combined with increasing populations and prices elsewhere point to appreciation. “We are starting to get referrals from buyers in Boston who are looking at commuting from the East Side of Providence because the markets in Boston and Wellesley are just so tight,” Chapman said. The second-home market in Newport is strong and speculative construction is even returning to some pieces of land on Aquidneck Island, he added. “I think nationally you are going to see 8 percent to 9 percent appreciation, and you’ll see that in some Rhode Island communities,” Chapman said, “statewide maybe 5 percent. Providence County is an 800-pound gorilla because it has so many homes and was one of the last areas to rebound.” n

Providence Business News

April 8-14, 2013 n 27

Recognizing the Best and the Brightest!

2005 Inaugural Event

Coming in July

CLASS of 2013 Nomination Forms at

Class of 2006

Class of 2007

Class of 2012

Class of 2008

Class of 2011

Class of 2009


Providence Business News

28 n






We’re working with Rhode Island businesses to provide health care benefits that work well for everyone. At UnitedHealthcare, our goal is to help every business get the right coverage at the right price. We have developed a variety of plans for Rhode Island that provide a combination of value, options and quality. And all our plans provide your employees with innovative tools and resources to help make it easier to achieve a balanced and healthy lifestyle, which in turn may be good for your business. Learn more about all the solutions we can offer your business. Contact your broker or visit us at

© 2013 United HealthCare Services, Inc. Insurance coverage provided by or through UnitedHealthcare Insurance Company or its affiliates. Administrative services provided by United HealthCare Services, Inc. or their affiliates. Health plan coverage provided by or through UnitedHealthcare of New England, Inc. UHCRI636108-000

April 8-14, 2013

04-08-2013 Issue