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PHILADELPHIA: THE SILICON VALLEY OF HEALTHCARE TECH No one will argue that Philadelphia is home to some of the best hospitals and medical facilities in the nation. But what about innovation in healthcare technology? Turns out we’ve got that, too.


24 OCTOBER 2013

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CHOP Makes $50M Research Investment Following the creation of a partnership with Osage University last month, Children’s Hospital of Philadelphia announced it will invest $50 million in Spark Therapeutics. The spin-off company will continue the work of CHOP’s Center for Cellular and Molecular Therapies with a goal of advancing its gene therapy programs. The company will also advance the clinic with gene therapy programs to address blindness including retinal degeneration, neurodegenerative diseases, hepatitis B and additional hematologic disorders. In 2004, CHOP established the Center for Cellular and Molecular Therapeutics for gene therapy translational research.

New Jersey Invests In Science/Medical Education


Rutgers University at Camden broke ground on a new 100,000-square-foot facility at 5th and Federal Streets that will house the school’s nursing and science departments. Conveniently located between the Walter Rand Transportation Center and NJTransit RiverLine, the building represents the area’s first step towards creating an

“Ed-Med” corridor that will link the Rutgers campus with nearby Cooper Hospital, invigorating the downtown area. A higher education state bond will provide close to $47 million in project funds with the remainder coming from Rutgers general obligation bonds. The project is slated for completion in late 2015.

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TD Shows Interest In Citizen’s Bank In February, the Royal Bank of Scotland, owners of Citizens Financial, announced plans to hold an initial public offering within two years, aiming to sell about 25% of the the group. Bruce Van Saun, Citizen’s new CEO, indicated that might happen as soon as the fourth quarter of 2014. Citing unnamed sources, The Sunday Times of London recently reported that Toronto-Dominion (TD) Bank is exploring a deal estimated at around $13 billion.

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Police Visit City For Annual Conference See a lot of law types around the city this week? That’s because the Pennsylvania Convention Center played host to more than 14,000 law enforcement professionals from around the world this week. Representatives from local, state, county, tribal and federal agencies gathered to address critical issues, participate in workshops showcasing new technology and tactics, advancing their knowledge and careers. Over 200 seminars offered participants the opportunity to gain education on the latest law enforcement issues, presented by over 750 leading manufacturers of police equipment, services and technology. Highlights include remarks from esteemed law professionals like Attorney General Eric Holder, FBI Director James Comey and Philadelphia’s own Police Commissioner Ramsey.


Is Philly The Next ‘It’ City? Mayor Nutter Will Find Out

Philly Company Introduces “Zmail” Philly-based health-care consulting firm, Vynamic, has introduced what it calls a “zmail” policy that bars employees from sending email during off-hours, specifically on weekends and between the hours of 10 p.m. and 6 a.m. on weekdays.

Mayor Nutter addressing 100 attendees at the reception announcing a trade mission to the United Kingdom and Israel. TECHNICAL.LY/PHILLY

Mayor Michael A. Nutter, the Philadelphia Convention and Visitors Bureau (PHLCVB), Philadelphia International Airport and a consortium of area travel partners will attend the Word Travel Market in London next month, as part of the Mayor’s November trade mission. The industry event may be attended by as many as 50,000 travel professionals and members of the international trade/ consumer press. Through a partnership with Brand USA,

the PHLCVB will deck-out both the interior and exterior of 11 taxicabs with Philadelphia messages and imaging to further “drive” home the message. From there, the delegation will split. Some will depart from London to Paris to continue the European campaign. The mayor, PHLCVB Executive Director of Tourism, Brian Said will travel on to Tel Aviv, to discuss trade partnerships between the two cities.

The rule came about after the company’s annual engagement survey revealed many staff felt unduly stressed. Some staff reportedly have felt a measure of stress relief, effect: something they call “zbombing:” an increase in email sent just before 10 p.m. The good news? The recipient can reply in the morning.

Quantum Communications Welcomes Kevin Harley - former Director of Communications and Press Secretary to the Governor Kevin Sunday - former spokesperson to the PA Department of Environmental Protection




24 OCTOBER 2013




AP: Marcellus Shale Gas Growing Fast PITTSBURGH — Natural gas production from the Marcellus Shale region is growing faster than expected, according to a new federal report issued Tuesday. Marcellus production has now reached 12 billion cubic feet a day, the Energy Information Administration report found. That’s the energy equivalent of about 2 million barrels of oil a day, and more than six times the 2009 production rate. For perspective, if the Marcellus Shale region were a country, its natural gas production would rank third in the world, after Russia and the rest of the U.S. The vast majority of production is coming from Pennsylvania and Virginia. LAW

Buchanan Ingersoll & Rooney Adds To Firm Buchanan Ingersoll & Rooney announced today the addition of Grace D. Greenhall to its Litigation Section in Philadelphia. Greenhall received her J.D. from Pepperdine University School of Law where she was a member of the Pepperdine Law Review and Phi Delta Phi International Legal Fraternity. Her experience includes work as a law clerk in the Art Law group of the London office of Mischon de Reya. TOURISM

Bucks Co. Celebrates Visit Bucks County held its Annual Meeting & Luncheon on Friday, October 18 at PARX East. The 2013 event theme “We Mean Business…Together!” focused on the importance of partnership and collaboration to bring more visitors to the area and generate increased economic impact in Bucks County.

Mayor and Area Business Leaders Aim for Job Creation Philadelphia Mayor Michael A. Nutter was joined by more than 20 business leaders at a press conference on Tuesday, October 22, announcing the creation of the Philadelphia Jobs Compact, a partnership between Philadelphia Works and area employers to draw from the public workforce to fill open positions. The city’s unemployment rate is currently around 10.8%, about 3% higher than the national average. Companies who agree to take part are required to: Eblmhi^gihlbmbhglpbmama^I: CareerLink system. Bgm^kob^pZg]ihm^gmbZeerabk^\Zgdidates from the system that are either pre-qualified for positions or complete required workshops/training. Ikhob]^hg&ma^&ch[mkZbgbg`hiihktunities to help get long-term unemployed back to work. K^\knbmphkd^klbgma^I:<Zk^^kEbgd system for employee training. IZkmb\biZm^bgma^lnff^kPhkdK^Z]r program, providing unsubsidized opportunities for the city’s youth. :llblmbg]^o^ehif^gmh_ma^ikh`kZf through feedback, candidate assessments and referral processes. Prior to the conference, twelve local companies had already agreed to sign the Compact including Comcast, Drexel University, Mercy Health System, PECO and AmeriHealth Caritas. Mayor Nutter

Board Of City Trusts Postpone Girard College Plans The Board of Directors of City Trusts approved a one-year postponement in its proposal to temporarily scale back operations at the historic boarding school in North Philadelphia. Earlier this year, the Board announced that as a result of significant financial challenges that threaten the permanent closure of Girard College, it has approved a plan to temporarily suspend the high school and residential components of its education program to allow time for the Girard Trust to grow back to full financial health.


encouraged businesses large, medium and small to take part. “The workforce system brings us candidates who are screened and enthusiastic,” said William Strahan, Comcast’s Executive V.P. Of Human Resources, “We take a lot of pride in calling Philadelphia home.” Before the conference dismissed, another eight companies signed the pact including the Four Seasons, Independence Blue Cross and Thomas Jefferson University.

Chamber Announces Winners The Greater Philadelphia Chamber of Commerce today announced the recipients of its 2014 Excellence Award, celebrating small businesses that are making a positive impact on the 11-county region in ten categories:


Professional Services of the Year: LevLane (Philadelphia, PA) Retailer of the Year: Ristorante Panorama (Philadelphia, PA) Sustainable Business of the Year: Onion Flats (Philadelphia, PA) Customer Service Excellence of the Year: Technological Excellence of the Year: BQ Basement Systems (Erdenheim, PA) WorldWater & Solar Technologies, Inc. Manufacturer of the Year: IMET Corpora- (Princeton, NJ) Veteran-Owned Business of the Year: Jim’s tion (Southampton, PA) Non-Profit Organization of the Year: Jarhead Jerky, LLC(Medford, NJ) Small Business Person of the Year: Bob Bringing Hope Home (Wayne, PA) Young Entrepreneur of the Year: Anthony Moul, Artisan Mobile (Philadelphia, PA) Mongeluzo, PCS (Philadelphia, PA)

It subsequently filed a petition to that effect with the Orphans’ Court of Philadelphia, which must approve the proposed changes. Under the terms of its petition, the Board originally sought to implement the proposed changes in September 2014, scaling back Girard to an extended day, nonresidential school for grades 1-8. The Board’s decision delays implementation of that plan until September 2015, and it reflects a determination to ease “any uncertainties that exist for the students, parents, staff and faculty” during the pendency of the Court proceedings. “We respect the right of the Orphans’ Court to take the time it needs to consider the petition and the temporary changes that the Board has proposed,” said Board President Ronald Donatucci. “But ... it inevitably creates a sense of uncertainty and tension about the future for our students ... and staff.”

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Gov. Corbett Says Innovation Key For Job Growth Governor Tom Corbett met Friday with successful startup companies at the Ben Franklin Technology Partners’ Innovation Center and joined entrepreneurs and members of the legislature to launch Innovate in PA, a new program created to accelerate high-wage job growth through supporting small, emerging companies.” “With small businesses continuing to drive job creation in Pennsylvania, Innovate in PA is a common-sense approach to economic growth,” Corbett said. “Innovate in PA’s investments will help forward-thinking companies inspired with vision to become household names, turning Pennsylvania into the next Silicon Valley.” Innovate in PA will offer $100 million in deferred tax credits to insurance companies in the state to raise funds over multiple years. The funds raised will be directed to the highly successful Ben Franklin Technology Partners (BFTP), three Life Sciences Greenhouses and the Venture Capital investment program. Innovate in PA is projected to create a minimum of 1,850 technology jobs, nearly 3,500 indirect jobs and more than double the return-on-investment back to the state. For every dollar invested via Innovate in PA in early-stage businesses, it is projected that $2.37 will be returned to the state in additional tax revenues. “With Innovate in PA we are unleashing a wave of innovation and progress – you can see it everywhere,” Corbett said. “Life sciences companies are re-defining our economy; startups have grown into profitable businesses; and investors are selecting Pennsylvania as a high-potential location.” Corbett met with CEOs and employees from some of the startups that have received support from the three programs who will receive partial funding from Innovate in PA. Companies included: S4W Worldwide; InfraScan, Inc.; Optofluidics and Chandler Bats. The BFTP of Southeastern Pennsylvania spurs technology company growth and partnerships through providing capital, knowledge and network support. Bucks, Chester, Delaware, Montgomery and Philadelphia counties are served by the BFTP of Southeastern Pennsylvania.

AFL-CIO Rails Calls For Action Against Wage Changes In Transportation Bill BY ERIC BOEHM

old had increased with inflation since the law was passed, it This may well prove to be the deciwould now ring in at sive week for whether the General about $188,000. Assembly can get a transportation Getting the prevailfunding bill to Gov. Tom Corbett’s desk. ing wage changes may As part of any eventual package, be the final piece for the Republican majority in the state the transportation House wants to see some changes to bill, which has been Pennsylvania’s prevailing wage law, a priority for Corbett which requires the use of a union since February when payscale on public projects that cost he called for a $1.8 more than $25,000 — even when billion transportation those projects are done by nonunion package that increases contractors. taxes on gas stations. But the unions are big fans of preThough the PA AFL-CIO is opposvailing wage, since it guarantees them better pay for public projects. ing the bill over the “You wouldn’t support lowering the prevailing wage eleminimum wage to $5 an hour to try PAINDEPENDENT.COM ments, other unions to bring back manufacturing jobs have voiced support. from China. It’s the same kind of Republican staffthing here,” wrote Rick Boomingdale, ers say the prevailing president of the Pennsylvania AFL-CIO, in an email wage changes are crucial to getting GOP support for to union members and supporters Monday afternoon. the transportation bill. The email asked union members to contact their Though Democrats have indicated they would pull lawmakers to voice opposition to the prevailing wage all support for the bill if the prevailing wage changes changes. are included, the mixed support from unions makes As we reported last week, the House GOP and Cor- it likely at least some Democrats would support the bett want to raise the threshold for prevailing wage transportation bill, even with prevailing wage changes, from the current $25,000 to $100,000. A bill that on the floor. This article was originally published in Pennsylwould do so is ready for a floor vote in the state House this week. vania Independent at It’s worth noting that if the prevailing wage thresh-

Philly Housing Market Flat For Quarter BY SANDY SMITH

market fared in the city’s subregions. Prices in Lower North Philadelphia and South Philadelphia rose significantly House sales prices in Philadelphia barely budged overall during the quarter, with the index for Lower North, which in the third quarter of 2013, according to the latest Philadel- includes Brewerytown, Fairmount, Francisville, Sharswood, and the area west of Temple University, rose 25.1 percent in phia Housing Index from Econsult Solutions Inc. The index, which measures the quality-adjusted sales the quarter and stands at 220.5, while that for South Philaprices of homes in the city and the metropolitan region, delphia (above and below Snyder Avenue) rose 13.3 perstood at 159.8 at the end of the quarter, a fall of 0.5 percent cent and stands at 263.3. The steepest drops in the quarter from the previous quarter. The index for the year to date occurred in the Upper North (Logan, Olney, East and West is 2.9 percent above where it was one year ago. Econsult Oak Lane) and North (North Central Philadelphia, West noted that this performance continues the relatively flat to Kensington) districts. The index fell 7.5 percent in Upper modest but uneven growth in the housing market over the North to 162.5 and 7 percent in North Delaware to 122.9. past few years. This was originally published in the Philadelphia Real The overall figure masks significant differences in how the Estate Blog at



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Playing To Win: How Strategy Really Works


@go4biz101 go4biz exploreB2B It’s all about achieving more with less when it comes to social media and content marketing, and this Twitter account will point you in the right direction for helpful infornation. It regularly features social media do’s and don’ts and blogging tips as well. RT @go4biz101: 10 Marketing PR Mistakes to Avoid For Your Facebook Page RT @go4biz101: 7 (More) Reasons Why No One Is Reading Your Blog https://t. co/Dyu5EMijmX

Playing to Win outlines the strategic approach A.G. Lafley, former CEO of Proctor and Gamble, in close partnership with strategic adviser Roger Martin, used to double P&G’s sales, quadruple its profits and increase its market value by more than $100 billion when Lafley was first CEO. Lafley and Martin created a set of five strategic choices that, when addressed in an integrated way, will move you ahead of your competitors. They are: (1) What is our winning aspiration? (2) Where will we play? (3) How will we win? (4) What capabilities must we have in place to win? and (5) What management systems are required to support our choices? One Amazon reviewer says, “This book brings theory to life in real world examples of how strategy and strategic planning really works.”

Blackberry Messenger No matter what new mobile device comes out, it’s safe to say that there will always be a crop of business associates who won’t part with their Blackberry. Some good news is that BBM, the Blackberry Messenger that users swear by, is now available for iPhone and Android. This service lets you exchange messages, pictures and other data with BBM users over a data connection. You can see if someone has read your message and if they’re in the middle of replying. There’s also no need to exchange cell phone numbers — just a four-digit pin is needed to get rolling.


Shake Shack Opens In KOP reports that Shake Shack opened another location, this time at the King of Prussia mall taking over the old Wells Fargo Bank location. This opening comes less than two weeks after the grand opening of the Shake Shack on the Drexel campus.

Zahav Owners Plan For 2014 According to, Steven Cook and Michael Solomonov, owners of the Israeli restaurant Zahav, are opening two more restaurants in 2014. The first, called Dizengoff, will be a “casual hummusiya,” while the second, Abe Fisher, will serve “cusine of the Jewish Disapora.”







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24 OCTOBER 2013



Council To Make Use of New School Funds

Timothy Holwick is a freelance writer covering Philadelphia government.

CONTRIBUTE Send comments, letters and essays to feedback@ Opinions expressed by guest writers do not necessarily reflect those of Region’s Business.

Last week, Pennsylvania Governor Tom Corbett released $45 million in state funding to be made available to the fiscally distressed Philadelphia School District. On Thursday, October 17, 2013, Philadelphia City Council introduced a bill that would add that $45 million to the school budget on the currently operating city budget. Philadelphia’s Fiscal Year 2014 Operating Budget was approved back on June 25, 2013. However, provisions in the City Charter authorize City Council to make additional appropriations for operations “to meet emergencies which could not be anticipated when the operating budget was passed.” Essentially, the Charter allows Council to make certain retroactive amendments to the current budget, thus providing them the opportunity to implement the newly available funds. In order to properly apply the appropriations under the Charter, Council is arguing that while the school’s district’s financial situation was well-known when the budget was passed, the availability of this new funding constitutes an emergency which could not be anticipated. The transfer of the funds to the school district

will allow for the return of approximately 400 teachers, counselors, and other school staff. The funds will also be used to extend certain music and education courses for the remainder of the year. At their meeting on Thursday, City Council also passed its plan to inject $50 million into the still-struggling school district. That plan centers on lending the

... THOSE MOST CONCERNED ABOUT THE FUNDING OF THE DISTRICT CAN BELIEVE THE CITY IS STILL WORKING DILIGENTLY ON SOLUTIONS.’ district $50 million which it will repay by selling off abandoned or unused school district buildings. Mayor Nutter has gone on record as an opponent of the plan, but will now have to manifest his opinion with either a signature or veto on the bill.

Mayor Nutter has previously favored a plan that paid the school district with sales tax revenue, but no member of City Council will introduce the legislation on his behalf. While Council’s current plan would get money to the school district quickly, the bill as passed withholds any funds until the city and district reach an agreement with the Philadelphia Authority for Industrial Development, who will coordinate the marketing and sale of the properties. Council stated that some inquiries on school properties have already been received, and the plan reflects that Council expects the properties to sell quickly to pay back the $50 million. While the $45 million from the state is important for the school district in how quickly it may be available, the plan passed by Council and opposed by Nutter accents the difficulty Mayor Nutter and Council President Darrell Clarke are having in reaching their pledge of $50 million in new funding for the district. At the very least, those most concerned about the funding of the district can believe the city is still working diligently on solutions as evidenced by Council’s activity last week.

24 OCTOBER 2013




Legislative Update — October 24 BY SCOTT STARUCH This week the Pennsylvania General Assembly is in voting session on Monday, Tuesday and Wednesday. The biggest policy item being discussed this week is transportation funding legislation. As indicated last week, the original transportation funding bill — Senate Bill 1 — cleared the Senate by a vote of 45-5 on June 5th this year. Some form of agreed upon transportation funding legislation was expected to be voted on this week. As recent as Sunday, Transportation Secretary Barry Schoch was quoted in an Associated Press story saying, “I think next week’s the target date for this to occur… if it doesn’t, you run out of days. So next week’s the key week.” However, as this edition of Region’s Business goes to press, it appears no transportation legislation will be voted on this week, but rather when the legislature returns after November 12. Looking back to last week, on October 15 the Senate Finance Committee held a public hearing on the Independent Fiscal Office’s report “Analysis of Proposal

to Replace School Property Taxes: House Bill 76 and Senate Bill 76 of 2013.” Independent Fiscal Office (IFO) Director Matthew Knittel explained that the proposal would fall short following fiscal year 2014-2015, and that in FY 2018 -19 the negative net fiscal impact would be $1.031 billion. Knittel also commented, “due to the elimination of property taxes, homeowners in Pennsylvania will generally realize a higher federal income tax liability.” Also last week, both bodies of the General Assembly unanimously passed legislation to reduce the debt ceiling for the state’s Redevelopment Assistance Capital Program, known as RACP or “R-Cap”, to $3.45 billion from $4.05 billion. The Redevelopment Assistance Capital Program provides funding for projects “that display significant potential for improving economic growth and the creation of jobs.” House Bill 36, providing for an “Angel Investment Tax Credit,” was included in last week’s report and passed the House last week by a vote of 168-32. Also included last week was House Bill 1513, which amends the Local Tax Enabling Act. HB 1513 passed

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182-15. As bill sponsor Representative George Dunbar stated in his cosponsor memo, HB 1513 removes ambiguity and makes it absolutely clear when a municipality may tax a company performing work within its borders. Both HB 36 and HB 1513 have been referred to the Senate Finance Committee. Following this week’s session days, both the House and Senate reconvene on November 12. There are several committee hearings scheduled between now and then.


24 OCTOBER 2013



Obamacare Exchange Problems Only Scratch Surface

Eric Boehm is a reporter for and can be reached at EBoehm@ Follow @PAIndependent on Twitter for more. CONTRIBUTE Send comments, letters and essays to feedback@ Opinions expressed by guest writers do not necessarily reflect those of Regionâ&#x20AC;&#x2122;s Business.

President Barack Obama swallowed hard Monday morning and admitted that the health insurance exchanges simply are not working. â&#x20AC;&#x153;Nobodyâ&#x20AC;&#x2122;s madder than me about the fact that the website isnâ&#x20AC;&#x2122;t working as well as it should,â&#x20AC;? Obama told reporters at the White House Rose Garden. But aside from promising that the exchangeâ&#x20AC;&#x2122;s problems would be fixed soon, there was no indication that the White House has any sense of how long it might take to get the websites into working order. For that matter, there has been little indication that the administration even has a handle on the depth of problems plaguing the much-heralded exchanges that formed a cornerstone of the Affordable Care Act. After three weeks, the White House also refuses to release information on how many individuals have successfully navigated the exchanges and signed up for health insurance. If the experience of many state-run exchanges is any indication, there are not too many. In Pennsylvania, health insurance providers say they do not have a single person who has completed the process to sign up for coverage. Neighboring Delaware only got its first enrollee

last week. But as bad as the rollout has been, itâ&#x20AC;&#x2122;s probably safe to assume the federal government will get the exchanges into some sort of working order, eventually. The problem, however, is that many issues with the Affordable Care Act wonâ&#x20AC;&#x2122;t be fixed by debugging the exchanges. And some of those problems already are rearing their ugly heads. First, there are the costs. For a law that was literally and figuratively sold to the American people as promising â&#x20AC;&#x153;affordableâ&#x20AC;? health insurance, the Affordable Care Act doesnâ&#x20AC;&#x2122;t seem to be keeping up its end of the promise. Though the Department of Health and Human Services has avoided providing cost comparisons, some national think tanks have done their best to crunch the numbers based on the current costs of insurance through non-group plans (the closest equivalent to the Obamacare exchanges that existed before Oct. 1) and the average costs for insurance through the exchanges. According to their data, Obamacare will cause costs to decline in only five states. In Pa., the increase is expected to be in the range of 7 percent and 32 percent â&#x20AC;&#x201D; which

is actually not too bad, considering some states will see increases of more than 100 percent on average. A second problem is that young people likely will not sign up for coverage in large numbers. And thatâ&#x20AC;&#x2122;s a big deal, because the arithmetic behind Obamacare requires that lots of young, relatively healthy people buy insurance and effectively subsidize the cost of the older, less healthy, more expensive people in the system. And why are lots of young people not showing up for Obamacare? Refer back to the first problem. While all adults will see higher premiums in most states, the increases generally are steeper for young people. There are other bugaboos in the law as well â&#x20AC;&#x201D; including a tricky element that could cost people thousands of dollars in lost insurance subsidies if they get married or take a promotion for higher pay. Opponents of the law say that will end up encouraging people to stay single and limit opportunities for personal advancement, but there is little in the way of solid evidence, so far, on that front. The exchanges will get fixed. Bigger problems remain.



24 OCTOBER 2013




How Mike Ditka’s Biggest Mistake Changed Politics

Charlie Gerow is CEO of Quantum Communications, a Harrisburg-based public relations and issue advocacy firm.

CONTRIBUTE Send comments, letters and essays to feedback@ Opinions expressed by guest writers do not necessarily reflect those of Region’s Business.

He’s a guy we loved to hate. The first tight end inducted into the Pro Football Hall of Fame, he was a Pennsylvania kid who grew up in football-rich Aliquippa. Starring at the University of Pittsburgh, he was a consensus All-American and is now ensconced in the College Football Hall of Fame, as well. He even put on the green and white for a couple of seasons and caught four touchdown passes for the Birds. But for most of his storied career — both on the field and as one of the great coaches of the game — he lined up on the wrong side of the ball. He ended his playing career with the hated Dallas Cowboys and even had the nerve to catch a touchdown pass in the Super Bowl to help them beat the Miami Dolphins. Philadelphia ought to hate Mike Ditka. For all of his success on the field, his abilities on the sidelines rivaled them. He is the only person to have won championships with the same team both as a player and as a head coach. His 1985 Bears was one of the best teams in NFL history. Despite internal brawling and bickering, much of it fueled by him and Buddy Ryan, the Bears trounced the New England Patriots 46-10 in Super Bowl XX. The players carried both Ditka and Ryan off the field that day. When Buddy Ryan left for the City of Brotherly Love after that game, Ditka was asked if he was happy. “No,” said Ditka, “I’m elated.” A couple of seasons later Randall Cunningham was leading the Philadelphia Eagles to one of their

best seasons in history, and the Eagles made it to the playoffs. Expectations were at fever pitch. Buddy Ryan had finally turned things around, or so went the prevalent thinking. But our hopes were quickly crushed. We faced Ditka and the Bears as a thick fog poured in off of Lake Michigan and onto Soldier field. It was an almost eerie scene. Players could barely see five yards in front of them. Television viewers wondered what was wrong with their set. Ditka’s Bears beat the Eagles 20-12. The Eagles would not win a playoff game under Ryan. Any athlete or coach who performs at the highest level, as Mike Ditka consistently did, will have regrets — a missed shot in the final seconds, a play call that didn’t work out. You’d think it was something like that when legendary Mike Ditka recently referred to “the biggest mistake I ever made.” The mistake, it turns out, is another reason for Philadelphia to hate Mike Ditka. In oil-rich North Dakota, Ditka talked about the energy boom created by hydraulic fracturing and domestic drilling and told the country about the resulting economic boom “...if the politician don’t screw it up.” The conversation then turned to Ditka’s brief foray into politics. Ten years ago, Republican power-brokers tried to convince Ditka, who had recently retired from coaching, to run for the open U.S. Senate seat. A beloved figure

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in Chicago, and well-known and regarded throughout Illinois, he would have faced an untested and relatively unknown Illinois state senator who had voted “present” (that is, abstained) 129 times on tough votes on gun control, juvenile justice and abortion. The state senator’s name was Barack Obama. Obama had just won the Democratic primary. Republicans looked to Ditka to come to their rescue after their nominee Jack Ryan suddenly withdrew from the race for personal reasons. Asked about Ditka’s possible last-minute fillin candidacy, Obama opined that Ditka was “enormously popular. I think if he gets in, he immediately becomes a favorite.” Obama knew he faced an enormous uphill battle against Ditka. But Ditka decided not to run. Republicans turned to Alan Keyes, who had run for president several times and for the U.S. Senate from Maryland without success. Keyes ran a very troubled campaign and ended up with a scant 27 percent of the vote. Ditka’s decision not to run essentially handed Obama the seat, launching his meteoric rise to the top. Had he not make the biggest mistake of his life, history might have been dramatically altered. Obama would likely still be a backbencher in the Illinois legislature. Thanks a lot, Mike Ditka.

10 OCTOBER 2013




24 OCTOBER 2013


Nuvon Speeds Up The Process With Mobile-To-EMR Connections

From left: Jeanne Venella, John Zaleski and Nuvon CEO Christopher Gatti


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On the surface, Nuvon’s mission seems to address a problem most would imagine having been addressed years ago: Its technology platform connects wirelessly with all electronic medical record systems to automatically capture and communicate data. It’s a game-changer for an industry that has always been notoriously behind the times. “Healthcare is at least 20 years behind where other businesses are,” said Christopher Gotti, CEO of Nuvon. “A lot of what they’re tr ying to do with health care today has been adopted from multiple industries, from financial services to consumer marketing. Fifteen to 20 years ago, using data and technology to drive efficiency and improve quality of care [was unheard of ]. What we’re doing is bringing proven technology and methodology to a market in need of it, but it’s also more evolutionary than revolutionary.” Nuvon has managed to approach the industr y ahead of the cur ve by being nurtured by cable guru Noah Doyle, a Silicon Valley venture capitalist with Javelin Ventures who’s partially responsible for the growth of Google Maps and Google Earth. Mr. Doyle invested in the company as an Internet voiceover company in 2003, and repurposed it in 2008 as a health care IT

company. Its technolog y connects data from mobile de vices — table ts, especially — and seamlessly passes along data to EMRs, regardless of whether they’re inside or outside of a hospital. This saves nurses the pain of having to manually enter data, despite the system being electronic. In the five years since the company’s retooling, Nuvon has accrued 23 employees, opened an office location in South Philadelphia’s Navy Yard and snagged clients like South Jersey’s Virtua, the Cleveland Clinic and Temple University. Mr. Gotti noted that the company has several “pending” opportunities both in the region and with brand-name health systems that the company is, for the time being, keeping under wraps. “Since the end of last year, the end of the election, there’s been this strong belief that the Affordable Care Act will move forward, and we’ve seen a real increase in activity [as a result],” Mr. Gotti said. “We’ve been talking with people for a long time, but it’s always been one foot in, one foot out, and there are penalties around failing to use technology in a really meaningful way. … I’m confident about Nuvon, because we’re capturing data literally at the point of generation; people can use that data for both clinical and non-clinical purposes.”

Thought leader. Trusted advisor. Innovation partner. We work with our clients in Pennsylvania and around the globe implementing technology that simplifies business and delivers results. Here in the Commonwealth, we process more than a billion dollars of payments and disbursements each year. We help state agencies and counties transform their IT operations. We field constituent phone calls, help cities manage their parking programs, deliver government benefits to individuals via convenient payment cards, and much more. Do you want to break new ground? Control costs? Enhance service? Let’s do it together.

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24 OCTOBER 2013



Drexel Online Merges Getting The Right Talent In Startups With Drexel University DIARY OF A STARTUP

Though it’s easy to imagine the grueling step-by-step process most established businesses initiate for their hiring process, the motions are a bit muddled with startups. VenturePact CEO Randy Rayess explains in his latest “Diary” entry what hiring looks like within his ranks. In his words: This month, VenturePact has been focused on hiring. Talent is a core component of all startups — you cannot scale a company or execute on a vision without outstanding talent. Since we want to help our startups scale faster and expand their tech teams by hiring, training and housing developers for them globally, we must provide them with great people. For hiring developers, we first focus on technical skills. Then we assess for cultural fit and English fluency. We have been experimenting with different processes for hiring. We tried to standardize the preinterview process using online coding tests. As the tests become more popular and well known, we had to supplement the tests with

some of our own coding challenges. During the interview, there is definitely an artistic component or gut feeling that comes into play. If a candidate can get us excited about the products she’s built, and can prove to us his/her willingness to learn, stay updated and solve problems, then we are much more likely to hire that person. For senior people, we mainly look for experience managing and motivating people, product thinking and an understanding of lean startup methods. Our senior people managing our developers have to be able to connect with the CTO or VP of Engineering that they interface with regularly. To do this, they have to speak at the same wavelength, and understand both the business and the product side of a startup.

BY JULIANA REYES Drexel University Online will no longer be a for-profit venture, Drexel University said last week, as it announced its hiring of Susan Aldridge as its first Senior Vice President of Online Learning. Ms. Aldridge will also serve as the president of Drexel University Online. Drexel University Online was previously run as a forprofit subsidiary of Drexel University. Though linked, the companies were two separate entities. Now, Drexel Online will be a department inside Drexel University because the school decided that it would best serve its online students by operating as one unified entity, said Todd Lucca, Senior Vice President of Marketing and Business Development for Drexel University Online. Drexel has been offering online degrees since 1996. Drexel Online graduated more than 1,200 students this spring, making up roughly a quarter of the more than 5,000 students that graduated from Drexel in 2013. This article was originally published in Technically Philly at

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24 OCTOBER 2013



The Highest ROI Management Tool In Business

Jeff Weiner, Wharton Class of 92, is CEO of LinkedIn.

The article was originally published in the Wharton Entreprenuership Blog at entrepreneurship

CONTRIBUTE Send comments, letters and essays to feedback@ Opinions expressed by guest writers do not necessarily reflect those of Region’s Business.

[An] image was recently emailed to one of the senior-most technology executives at LinkedIn ... the text read: “Success is not the key to happiness. Happiness is the key to success. If you love what you are doing, you will be successful.” Contrary to what you might be thinking, the email didn’t come from an eternally optimistic employee who cheerleads regardless of outcomes or a feel-good management coach whose office is plastered with posters defining “persistence,” “teamwork,” or “dedication.” It came from an engineer whose team has worked tirelessly over a period of years to develop and maintain an important back-end technology for the company. It’s the kind of technology that just works, and subsequently, makes LinkedIn work. It’s also the kind of technology that is so fundamental to what we do that it becomes easy to overlook — unless, of course, it’s not operating as expected. Then the team is inundated with questions about what’s wrong, when it will be fixed, and how they can put measures in place to ensure it doesn’t break again. The engineer who sent the image to the executive added his own short message: “This is what I feel after reading [your] email.” Other members of the engineer’s team sent emails with similarly effusive sentiments. If you’ve ever worked closely with a team of highly talented, hardcore engineers you know that this show of unbridled happiness can be a bit unusual (to put it mildly.) So what had gotten them so enthused? An email written by the executive explaining how important the team was, how much value they had created, and his appreciation for their consistent diligence, perseverance, and excellence. Essentially, they were responding to a simple “Thank you.” The highest ROI management tool I know is one that is available to everyone, costs essentially nothing, and is a proven driver of workplace productivity. That tool is gratitude. As obvious as this may sound to some, it is oftentimes overlooked, particularly in companies and among teams for whom seemingly no results are good enough and no bar is ever set high enough. Yet, developing a highperformance culture and one that encourages the expression of gratitude shouldn’t be at odds. To the contrary, recognition can be an invaluable source of motivation and subsequently inspire people to do their best work. Looking back on my career, I’ve seen and experienced this dynamic more times than I can count, and conversely, have witnessed the negative repercussions of managers who take

their teams for granted. Here are a few things to consider the next time you’re inclined to show your appreciation for a job well done:

1. Be thoughtful

Not all thank yous are created equal. Be thoughtful about the how. Sometimes it’s best to do it in person, in the moment. Other times, an email or call might make sense, especially if the person is remote. Some of the most memorable thank yous I’ve received were handwritten notes (a few of which I still keep on a table behind my desk in the office). Reid Hoffman, the founder of LinkedIn, has elevated this kind of recognition to an art form. For example, mention offhandedly to him that you like dark chocolate, and don’t be surprised if several months later, he returns back from his latest trip to Europe with a few specialty bars he purchased for you, inevitably delivered with a resounding thanks for the positive difference you’re making to the company.

2. Be genuine

More often than not, the words you communicate are not nearly as important as the thought and energy behind them. The person on the receiving end can tell the difference between someone going through the motions and deeply heartfelt appreciation. When it comes to expressing gratitude, always be 100% genuine. For example, the next time an email thread starts up congratulating a team on their most recent win, try to refrain from adding the fifth or sixth “Great job!” and give some thought to why you’re appreciative for their specific accomplishment. Conveying the latter will make all the difference.

3. Pick your spots

When thinking about when to give thanks, make sure to apply The Goldilocks Principle: Compliment someone too often and your words will ultimately ring hollow; don’t say thank-you enough and your top talent will ultimately feel so under-appreciated you’ll potentially face retention issues. However, express appreciation at just the right time and you’ll make a huge difference in the way that person thinks about their role and what it means to be a part of your team. For those more quantitatively inclined, there has actually been research done on the optimal ratio to achieve when communicating positive vs. negative feedback. It’s called the Losada Ratio (and the answer is 2.9x.)

4. Solicit suggestions

When your organization is smaller, and everyone is located in one place, it’s fairly easy to be aware of who is doing what and is most deserving of praise. However, as a successful organization inevitably scales to larger numbers of employees and multiple offices around the world, it can become more challenging to stay on top of the day-to-day progress of the team. One way of overcoming this dynamic is by making sure you remain in the flow of information regarding their wins, e.g. dashboards, wikis, weekly updates, etc. At LinkedIn, we conduct a global all-hands every other week which provides a natural channel to identify and recognize some of the team’s most important accomplishments. Another effective technique is to just ask. From time to time, remind your directs to mention individuals or teams you may have less direct exposure to, but who they feel are deserving of a special call-out. The further away from headquarters they sit, and the more junior they are, the better. You’ll be amazed at how appreciative the people on the receiving end of those calls and emails will be.

5. Learn how to take a compliment

The better you are at receiving a compliment, the more effective you’ll be at giving one. Many people struggle when on the receiving end of a kind word, inevitably looking down at their shoes, shuffling uncomfortably, and mumbling something about how it was truly a team effort. While humility is a highly valued trait, disconnection is not, yet the latter is typically what happens when these scenarios play out. The next time someone compliments you on a job well done, try grounding yourself from the feet up, look the person straight in the eye, and let them know how much it means to you. That sense of recognition and connection is what we’re all trying to achieve. It’s also what ultimately makes the difference between a perfunctory thank you and an expression of gratitude the recipient won’t soon forget. One last note: Every now and again, the same senior tech executive I mentioned earlier will remind me of the first time I shared my views with him on the importance of gratitude. Despite the fact that conversation took place nearly eight years ago, he thanks me every time. The most recent example occurred just a couple of weeks ago. It was ultimately the reason I wrote this post.


24 OCTOBER 2013


AirCare Aims To Fix Readmissions Problems


The idea, Mr. Zang said, is that nurses spend copious amounts of time calling p at i e n t s w h o BY BRANDON BAKER don’t necessarily require a checkAirCare Labs has managed to fast-track its prodin. uct development and position itself for success at its AirCare deteronset: It was started a mere year ago by CEO George mines who needs Xiangwen Zang — a former Facebook and Groupon To address the problem, the company was able the helping hand of a nurse by providing a platform employee — who saw through both his tech experiences and time studying the health care industry to create a viable health care IT product in just that has patients fill out a checklist of symptoms and at Wharton that tele-nursing was an area ripe for three months — as opposed to the standard 12 to whether they’ve taken medication as prescribed. Those who fail this “test” of sorts are placed in a red 18 months — thanks to a healthy combo of involvedisruption. “I went about looking at how to fix the healthcare ment with Wharton’s Venture Initiation Program, a zone, and are reached out to by a nurse. To date, most of AirCare’s efforts have been focused industry, and realized readmissions is such a big issue collection of six clinical-, technical- and businessfor hospital systems — it’s one of the top priorities for background team members and a run with DreamIt on reducing heart-failure readmission rates. “It’s such a wonderful opportunity to create a platany hospital executive, and that’s because the readmis- Health’s accelerator program. AirCare has since piloted with the Hospital of the form that allows any clinician to interact with any sions penalty alone has the potential to wipe out a third University of Pennsylvania, and tested with patients in patient, anywhere,” Mr. Zang said. “And now, we’ve of hospitals’ profits. got interest not just from heart readmissions, but “In addition, Medicare is penalizing hospitals for private hospitals across the region. The company’s pitch is mouth-watering for both hos- oncology, neurology and sleep apnea folks. … Longquality, and insurance companies are increasingly not paying for readmissions. Adding these three together, it pital executives and nurses strapped for time: Patients term, we want to make a difference for a whole lot could wipe out 100 percent of profits, and hospitals are and nurses use a Web- and tablet-based app that allows of patients.” In the months ahead, AirCare will seek a funding doing poorly with all three [elements],” Mr. Zang said. nurses to check in with patients without having to call round of $300,000 in venture capital. them. “That really jumped out at me.” Company: AirCare Founders: George Xiangwen Zang Contact:

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24 OCTOBER 2013


PHILADELPHIA: THE SILICON VALLEY FOR HEALTH TECH No one will argue that Philadelphia is home to some of the best hospitals and medical facilities in the nation. But what about innovation in healthcare technology? Turns out we’ve got that, too. STORY BY ROSELLA ELEANOR LAFEVRE ILLUSTRATION BY DON LEE Philadelphia is a great city of education and medicine. Real estate developer Carl Dranoff recognized that “the eds and meds are driving our growth” in a recent interview for Region’s Business. Although Mr. Dranoff worried that “we’re just not getting the new jobs you’re seeing in other cities,” an informal survey of the medical and healthcare companies in our region indicates positive growth. These companies are led by brilliant men and women and are developing innovative ways to improve healthcare education, revolutionize screening methods and improve care, among other things. There is Mihir Shah’s UE LifeSciences, Inc., which received nearly a million dollars in funding from the Pennsylvania Department of Health for its innovations in breast cancer screening (keep reading for more infor-

mation). There is NuPathe, a specialty pharmaceutical company targeting neurological and psychiatric disorders using innovative neuroscience solutions, which has developed Zecuity, a patch to help cure migraines. There is Public Health Management Coporation, which annually serves more than 200,000 clients in vulnerable populations and innovates care by working with affiliates to provide a range of services, not always in the healthcare realm. There is R-Health, which brought to Philadelphia its first direct primary care center, without administration from a health insurer, and makes money by charging members as little as $79 a month for greater access to their primary care physician (R-Health patients spend 30-60 minutes with their doctor while insurance-based visits are limited to less than 10 min-

utes). Major corporations and medical schools that have been around for decades are also playing a role in healthcare innovation. Einstein Healthcare Network has pioneered a revolutionary, minimally-invasive surgical procedure for patients suffering from Gastroesophageal Reflux Disease who don’t want to take medication; Einstein surgeons implant a small device called the LINX Reflux Management System with a band of tiny, flexible titanium beads that force the lower esophageal sphincter closed. Independence Blue Cross is revolutionizing the direct consumer space for health insurance with mobile retail (more on that below). Under the leadership of President and CEO Daniel Hilferty, Independence Blue Cross aims to play a large


24 OCTOBER 2013


Inside the Independence Express Truck, a mobile education center designed to inform the public about healthcare reform.

innovation and now has a department called the Center for Healthcare Innovation. This multi-year initiative has the ability to bring together powerful minds that can help reduce the costs of healthcare and improve quality of care. “Dan as CEO has put a pole in the ground to say, ‘How does Philly become the Silicon Valley of healthcare?’” Brian Lobley, senior vice president of Marketing and Consumer Business at Independence Blue Cross, said. With the range of companies already operating in the area, it’s not hard to imagine that Philadelphia is already well on its way toward being the Silicon Valley of healthcare. Here’s a look at some of the innovations in healthcare Philadelphians are bringing to market.

Explaining Obamacare to the Masses

Obamacare is confusing to a lot of people, particularly the consumers who are supposed to benefit from its reforms to our healthcare system. How much insurance do you need? How much should you spend? And with registration hard to accomplish on the poorly built and executed federal exchange, health insurance seekers may feel increasingly discouraged. Before the exchanges opened on October 1, Independence Blue Cross

researched what people in the Philadelphia area knew about Obamacare and buying health insurance and found that a lot of people were unaware of the changes the reform will bring in 2014. To solve this, Mr. Lobley and his team had to answer the question: How can we have that one-on-one or small-group conversation about healthcare? Their answer: the Independence Express Truck, a fully outfitted tractor trailer that can be driven to sites across Philadelphia and the surrounding region and used to educate consumers. Mobile and pop-up shops are a huge trend in retail and seemed the perfect solution to the dilemma of poorly educated healthcare consumers. The truck is internet-capable, features iPads, offers a game show component to help visitors better understand healthcare reform, and can even be turned into a classroom. “You feel like you’re walking into an Apple store,” Mr. Lobley said. Independence Blue Cross is the leading provider of health insurance in southeastern Pennsylvania and has been in operation for 75 years. The way healthcare is marketed has changed, especially in the last few years, and the company has had to become more active in the direct consumer space. And they’re in it for the long haul. “We knew

that the open enrollment period [for Obamacare] would be a long process,” Mr. Lobley said, noting that right now, a lot of people are browsing their insurance options and haven’t fully committed to one plan or another. He believes their history as a company means consumers in the area will choose them. “The good thing we have is trust and security,” he said.

Lowering Costs of Continuing Education for Doctors

Doctors are required by 62 boards to fulfill continuing medical education for license reregistration. The intention of these required trainings is to keep physicians competent and current on new and developing areas within their fields. This continuing medical education comes in the form of live events, written publications, online programs, audio, video and other electronic media. Continuing medical education, which varies by state, has cost healthcare companies a lot in time and money. Decision Simulation brings the power of simulating real life experiences, proven to be highly effective as a training tool, to doctors’ computers and tablets, which allows those physicians to fit in their continuing medical education when it works best for them. They spend more

time with their patients and companies have fewer upfront costs in keeping their caregivers licensed and well-trained. “Instead of spending an hour in lecture, [the doctor or other caregiver] play[s] these 15 to 30 minute activities,” said Bob Yayac, managing partner and co-founder of Decision Simulation. Changes to the healthcare system as a result of Obamacare make this an important product. With Obamacare, more care providers will be reimbursed only for the procedures, testing and care that provide for positive outcomes. As Mr. Yayac explained it, doctors at hospitals will now have to debate how to best discharge patients so that they don’t come back within 30 days; if the patients return in that period of time, the hospital can’t be reimbursed for the patient’s first stay. “We know that improving decisionmaking is important in healthcare,” Mr. Yayac said. “One of the innovations we’re bringing to the market is making it affordable to leverage the benefits of simulated education [tools] to improve healthcare.” The company’s product makes it simple for organizations to create the simulations that will benefit their patients and their bottom lines. Although no technological know-how is required to create simulations on the Decision Simu-

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Healthcare in your hands


A close-up look at the No Touch Breast Scan, developed by UE LifeSciences, Inc.

create simulations on the Decision Simulation platform, it takes a sharp educator to plot out how to use the technology in order to improve the areas of knowledge and care most important to the organization using the tools. “The value is we’ve taken away the need for a tech person but you need a good educator with medical knowledge to make it realistic,” Mr. Yayac said, with emphasis on creating good clinical content to train doctors.

Changing the Way We Screen for Breast Cancer

Anyone with a mother, a sister or a female friend over the age of 40 knows about the mammograms they are supposed to get once a year to test for breast cancer tumors. This method of testing uses x-rays to identify dense tumorous tissue, which shows up white on the x-rays, but mammography has its weaknesses. The same way that dense tumorous tissue shows white on the x-rays, so does dense breast tissue; tumors get camouflaged by dense breasts, which are especially common among women under 40. UE LifeSciences, Inc. developed an adjunctive breast cancer screening method called the No Touch Breast Scan. This 4-6 minute screening blows cool air at a woman’s breasts while taking a series of infrared pictures that are compiled and used to judge breast symmetry and look for tumors. This screening method is particularly useful for women with dense breasts, and can be used as an early testing method among young women (54 percent of tumors are found in women younger than 40). The No Touch Breast Scan is also proving pretty useful in developing countries, where women have little access to mammography. There’s another scanning method in the works at UE LifeSciences. Soon, the company will produce the first prototype of Intelligent Breast Scan, an ultraportable, wireless, handheld scanning device for early tumor detection. This technology earned UE LifeSciences an $878,422 grant from the Pennsylvania Department of Health, awarded in August 2012. “It can truly revolutionize early breast cancer detection,” said Mihir Shah, founder and CEO of UE LifeSciences. The Intelligent Breast Exam device could replace breast exams done by hand, a procedure any woman who has

24 OCTOBER 2013



been to the gynecologist has experienced, and maybe done on herself. With tiny sensors, it can detect tumors doctors can’t feel with their hands. “It’s kind of a clinical breast exam on steroids,” Mr. Shah said. While clinicians and doctors will need to test the device first, the end-goal is to take the device to the consumer market.

Using the Cloud and Mobile Tech to Manage Wounds

Chronic wounds affected roughly 6.5 million Americans, according to a 2009 report from the National Center for Biotechnology Information. Diabetics are in particular risk of developing and suffering continuously from chronic wounds. That same report claims that $25 billion is spent on care for chronic wounds in the U.S. One of the factors affecting the amount spent on care for these painful open wounds is the need to return to the doctor for frequent care. WoundMatrix, established in 2001, is the first to offer a state-of-the-art comprehensive wound management software solution. Originally, the program was available as a back-end system to doctors and required nurses to visit patients’ homes to take photos with a digital camera they had to connect to the doctor’s computer. With the proliferation of mobile technology, WoundMatrix has revamped its software solution into a web-based mobile technology that allows patients to take photos of their wounds and upload the photos in real time, using a smartphone app, to a central database. In this centralized database, their doctor can access the photos and measure the surface area of the wound site more accurately than previous calculations allowed. As wound site surface area measurements must be reported for Medicare patients and play an important role in the ongoing care and management of chronic wounds, WoundMatrix’s ability to reduce measurement variability is big part of the company’s value proposition, said Sean Geary, president and CEO of the company. The other important feature of his product is the doctor’s ability to centrally read several patients’ wounds in real time, which “allows the patients to receive better care,” Mr. Geary said. The company’s feedback from caregivers is positive. “Caregivers say being able to centrally view the wound, they can monitor and determine whether onsite or in-home care is needed,” Mr. Geary said.


24 OCTOBER 2013



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24 OCTOBER 2013



Gladwyne’s $24M Spacious Mini-Village At 50 acres, Linden Hill is referred to as the “crown jewel” of the region. This luxurious home contains eight bedrooms, seven baths, two pools, a guest house, two staff buildings, a 10-car garage, tennis court, barn and an aviary. The French-Norman manor has handcarved wood paneling that complements the marble fireplaces and floors, gigantic bay windows and formal gardens. A gated entrance and long drive leads into the main courtyard and centerpiece of the estate, the manor house. The grand formal rooms and intimate family living spaces create a welcoming and livable family environment with the exquisite original millwork and architectural details, including 10-14 ft. ceilings and oak flooring. Designed and built in 1929 by Edmund Gilchrist, the house was formerly owned by Jack Dorrance. This is a true definition of country estate living — all while being a stone’s throw from Center City. For more information, please contact Elanor Morsbach Godin of Prudential Fox & Roach at (610) 341-4550.


24 OCTOBER 2013


Meet the brains behind R-Health: CEO Mason Reiner (right) and Chief Medical Officer, Dr. Randy Robinson. Mr. Reiner and Dr. Robinson sat down with Region’s Business and talked about how R-Health is changing the way individuals, families and employees receive primary care through its direct primary care approach. Instead of paying co-pays, R-Health simply charges a flat rate per month for all-access. You can reach a doctor through the phone, text message, email, Skype (to name a few ways) and won’t have to worry about additional fees or charges. Read the entire interview online at

What’s the elevator pitch for R-Health? Mason Reiner: R-Health Direct primary care is an innovative model that enables employers to offer to their employees a superior health benefit at an affordable, predictable cost. We do that by doing three things: first of all, enabling employers to contract directly with the primary care practice, to take responsibility for delivering healthcare to their team and also putting at the center of the healthcare system an enduring relationship between a healthcare physician and patient, because that’s ultimately what leads to better health outcomes at a lower cost. How are you saving money for the employer? Dr. Randy Robinson: Costs get reduced multiple different ways. The first innovation is by delivering the care separate from the insurance model but working with insurance. By doing so you can deliver more inexpensive care by changing the approach. In the fee-for-service model, the care has to take place in the office. In our model, what we’re able to do is treat patients where they need to be treated. Eighty to 90 percent of primary care is information transfer and by utilizing technologies we’re able to deliver that care where it’s most appropriate, so that if you and I need to have a conversation about your new onset diabetes, we can have that



REVOLUTIONIZING HEALTHCARE conversation with you sitting in your office and me sitting in mine. If you need to show me a cut and are wondering whether you should be going to the emergency room, I can do that over Skype. If you need to reach me in the late evening hours with a very important question by texting me, I can text you back through HIPPAcompliant software. If you come into the office because you sprained your ankle, I now can talk to you about whether or not you wear a bicycle helmet or what your nutritional status is like, rather than ask you the questions to bump a level two visit to a level three visit because you need to meet insurance criteria. There’s a lot of questions you’d get in your initial intake but you’ll never hear again through your life in practice. How often do you really talk about the important things in life that you know matter, but just don’t come up? We have a sick-care system rather than a healthcare system and we want to change that. Mason Reiner: ... Because the doctor is accountable to you, when you do need to use the rest of the health care system, you have a quarterback at the front of the system to help you look for centers of value in the rest of the system. Where do you get the best combination of quality and cost? Do you really need that same test three times in different locations? No, you probably don’t, so you have a quarterback to manage this.


24 OCTOBER 2013



Philly’s Fast Developing Innovation Ecosystem


Joel Vardy is the Chair and Founder of the Greater Philadelphia Senior Executive Group’s Innovation Leadership Forum. He is also president and founder of Vardy & Associates, an innovation, strategy and change consultancy.

nnovation, defined as doing things differently and making it work, is the hallmark of Philadelphia’s past. Given its present trajectory, the city is poised to reclaim this brand going forward. The four pillars of innovation are business models, process, product & services and culture — the last of which defines the spirit of innovation that can be brought to bear for an organization or a region. That transformation is occurring in Boston, New York and San Francisco, as well as internationally in London, Paris, Munich, Tel-Aviv, Singapore and Shanghai. Consider the difference between Detroit and Pittsburgh. Both have come from an economy dominated by one industry — automobiles and steel, respectively. Once known as the Steel City, Pittsburgh has turned a corner by recognizing the common ingredient among growing regions and organizations: innovation, the willingness and capacity to change and make it work. The key to these domestic and international hubs of innovation is the collaborative interaction between the private, public and academic sectors. Fortunately, Philadelphia possesses strength in all three sectors.

The Past

Philadelphia has a glorious tradition of innovation. Our region has produced a historic string of firsts over the last 300 years — highlighted by the first hospital, bank, public water supply project, fire insurance company, stock exchange, capital city, art museum and school, zoo, department store and computer.

The Present

CONTRIBUTE Send comments, letters and essays to feedback@ Opinions expressed by guest writers do not necessarily reflect those of Region’s Business.

Presently we’re experiencing a bit of a renaissance. Our reputation may still be recovering from what some call the ”Rocky Syndrome” — a blue collar, rust-belt, no-can-do, slowfooted sloth of a region. But that perception flies in stark contrast to significant facts. Philadelphia is second in the nation in Bachelor’s degrees per capita. A growing healthcare hub, ours is the second largest medical research and educational regional center in the U.S. It’s the most affordable major city in the Northeast. It boasts of $634 million in investment in cultural projects downtown.

Education and health represents the largest employment base and our strongest growth sector. Accompanying these encouraging trends is a cadre of exciting, unique programs fueling our region’s transition into a robust, innovation-driven economic zone. The Greater Philadelphia Senior Executive Group’s (GPSEG) Innovation Leadership Forum (ILF) connects local and national innovation leaders for in-depth discussions geared towards spurring the region to build more of its future on the four pillars of innovation. Local icons such as Dr. Stephen Spinelli Jr. (President of Philadelphia University), Adel Ebeid (the city’s first Chief Innovation Officer) and Dr. Stephen Tang (CEO of the Science Center) have joined national figures like Dr. Francois Leques (IBM VP of Innovation, NY) and Malcolm Bohm (CEO of LiquidGrids, CA) to discuss the Delaware Valley’s growing capacity for innovation and form a blueprint for continued growth moving forward. Future programs will expand the series on subjects such as the public sector role in our evolving ecosystem, the design innovation revolution, and entrepreneurial and intrapreneurial innovations. Deputy Mayor Alan Greenberger for economic development is going to headline the next event on February 27th at Philadelphia University. GPSEG and ILF have recently formed a partnership with Temple University’s Innovation and Entrepreneurship Institute’s speaker series to expand the reach to domestic and international thought leaders on the subject of innovation. As new initiatives are forming around entrepreneurship education, incubators and accelerators — as well as economic development programs that are showing signs of increased collaboration between the public, private and academic sectors — we are slowly starting to shed some of the negative reputation that exists within the city. The recent founding of Drexel’s School of Entrepreneurship under the leadership of Dr. Donna DeCarolis is a prime example. Another is the opening of the new Design, Engineering and Commerce Center at Philadelphia University, a sign of Dr. Spinelli’s influence on a great local turnaround story of a school once known as the Philadelphia Textile School. Similar

exciting programs are evolving at Temple and Penn.

The Future

So what does the future hold for Philadelphia? There are three ingredients to a healthier innovation ecosystem. The first is the evolution of Innovation Hubs or central physical spaces that can serve to concentrate tri-sector experimentation, training and coordination of virtual nodes. I foresee a cluster of hubs in the Center City and University City area that will grow with time to connect with hubs in the neighboring counties in the Delaware Valley region. Eventually this would merge with the hubs developing in NYC and Washington, DC, to form a super hub for the entire Mid-Atlantic region. This interdependent network will serve as a magnet for investors and entrepreneurs as it transforms the way government interacts with the private and academic sectors. The second ingredient is the concept of creating a shared Innovation Process among the private, public and academic sectors — one that binds the Innovation Ecosystem through a three stage approach to ideation, selection and value delivery. A common understanding and language will help to create better technology transfer processes and bind research across multiple universities for efficient and effective commercialization. Third will be the development of two distinct innovation roadmaps going into the next 15 or 20 years — one digital and the other non-digital. The digital roadmap would lay out the parallel programs needed to integrate the evolving physical hubs with their corresponding nodes and the nondigital would include built-tech, clean-tech and sustainable technologies. Already a national leader in healthcare innovation, Philadelphia has the opportunity to become an international innovation powerhouse. While NYC continues to be the region’s financial capital and DC the source of federal funds, Philadelphia finds itself on the 50 yard-line of the newly evolving Mid-Atlantic Innovation Super-Hub. The ingredients are here and the culture is evolving. Moving forward, a leveraged plan will be essential.


NOVEMBER 1, 2013









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24 OCTOBER 2013




CHIP Extension Right Move To Protect Kids

Cell Phone Ban For Teen Drivers Needed

Pension reform, liquor privatization and transportation funding may grab all the headlines, but lawmakers and Gov. Tom Corbett have taken one of the most important steps they’ll take all year to protect Pennsylvania’s neediest children.

Gov. Tom Corbett has proclaimed this week, Oct. 20-26, as Teen Driver Safety Week in Pennsylvania to raise awareness and promote education and attention about safe driving practices among teens.

With little fanfare, the state House approved, and Corbett swiftly signed, legislation extending Pennsylvania’s Children’s Health Insurance Program, or CHIP, through 2015. The reauthorization is not expected to inflate the current $150 million annual cost of the Pennsylvania program, according to House and Senate budget projections. Started under former Gov. Robert P. Casey, Pennsylvania’s insurance program is among the oldest in the country. And it was the model for the federal program that was enacted during the Clinton administration. But the bill Corbett signed into law will do immediate good for children by eliminating a six-month “no coverage” period required of some families before benefits could start to flow. That waiting period was originally included to ease concerns that employers or families would drop private coverage in order to join a public program intended solely for families with no other available coverage. Proponents of the change have argued that so-called “go bare” period made little sense in a program targeted to serve children. Corbett and lawmakers did important work by extending coverage to Pennsylvania’s neediest children this week. We encourage Corbett to continue working with Washington to ensure that this model program is preserved.

A PennDOT press release announcing the proclamation noted that from 2008-2012, there were 103,002 crashes involving at least one 16- to 19-year old driver in Pennsylvania. Those crashes resulted in 851 fatalities. In 46 percent of the crashes, according to the PennDOT release, the cause was attributed to driving too fast for conditions, driver inexperience, driver distraction, or improper or careless turning. Act 81, as noted by PennDOT, increased supervised, behind-the-wheel training for permit holders under 18 years old from 50 to 65 hours and added stricter limits on the number of passengers that young drivers can transport for the first six months after they receive their junior license. The law also made it a primary offense for anyone under 18 not properly wearing a seat belt. However, it stopped short of requiring passenger limits for 17 year olds and failed to address distractions among teens such as cell phone use and texting. Pennsylvania has since adopted a texting ban on all drivers, but cell phone use remains a distraction.

Is ‘Delaware Valley’ Damaging Philadelphia? In a recent article for the Philadelphia Business Journal, Stephen P. Mullin, president of Econsult Solutions, Inc., makes the argument that the term “Delaware Valley” should be dropped, as it’s a big negative for Philadelphia. “With nearly $400 billion in gross metropolitan product, we deserve better,” Mr. Mullin writes. He argues that the term hurts Philadelphia’s branding. Using the term, he writes, is “a bad thing for our national and international branding, shining a negative light on our historic and proud city. Not using the central city name is virtually unheard

of among major cities...” He also points to inaccuracies, stating that the Delaware Valley actually stretches from lower New York state to Wilmington and points south. “That’s a dumb geographic message to the rest of the world,” he writes. He also claims that the term gives Delaware too much free publicity that should be directed to Philadelphia, which in turn is creating confusion with branding attempts. “Should we substitute TDV for PHL in our new ad campaigns and lapel pins? Should we root for the Delaware Valley Dellies?”

@PHLBizLyn I couldn’t agree more!

@mkrupit 21 OCTOBER 2013

Hasn’t hurt “Silicon Valley” or “Bay Area” 21 OCTOBER 2013

@dontuage As a NJ native, I rather like the inclusiveness of DelVal. Must Philly follow NYC in sneering at its burbs? 21 OCTOBER 2013

@dontuage As a NJ native, I rather like the inclusiveness of DelVal. Must Philly follow NYC in sneering at its burbs? 21 OCTOBER 2013

Pennsylvania lawmakers can do more. The lack of a cell phone ban, particularly as it relates to teens, contributes to Pennsylvania’s perennially low ratings from driver safety organizations.


@donutage NJ is covered in “Greater Philadelphia Area” bt outside people have no idea what “Delaware Valley” is. I didn’t & I grew up Philly. 22 OCTOBER 2013

Instead of a proclamation for teen driver safety, more action is needed.


Banning use of handheld cell phones while driving would be a good place to start.

In a land of Brandywines, Schuylkills, and Kings of Prussia, Delaware Valley is the one to get rid of? 21 OCTOBER 2013



18 OCTOBER 2013

21 OCTOBER 2013





Philadelphia Brand is Globally Known, not so Delaware Valley 21 OCTOBER 2013

@PHLBizDPoncet Anti-Delaware Valley. If beergutted tailgaters wore girdles the Linc cud be the Bellywear Valley. 21 OCTOBER 2013


24 OCTOBER 2013




Average salary for an MLB player, according to

$1,900,000 Average salary for an NFL player


American adults that are obese, according to a recent CDC report


Annual cost to taxpayers due to health care costs and loss of productivity associated with obesity


MLB players with $20,000 salaries


NFL player with a $20,000 salary (Peyton Manning — $23 million)

$9,000,000,000 NFL’s annual revenue

$7,000,000,000 MLB’s annual revenue



National Institutes of Health (NIH) grants and support awarded to Azevan Pharmaceuticals over the past decade, including $600,000 this year


National Science Foundation funds awarded to Third Eye Diagnostics, including $500,000 this year

Blacks who are obese, the highest rate in the country


NIH grants awarded to Hager Biosciences, including $375,000 this year

Department of Defense grants awarded to VaxForm, including $750,000 this year HAGERBIO.COM


Middle-aged adults who are obese, which is a higher rate than both younger and older adults




10.8% Asians who are obese, the lowest rate in the country

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Region's Business October 24  

Region's Business is a journal of business and politics serving the Philadelphia area.

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