Charleston Regional Business Journal - January 26, 2015

January 26 - February 8, 2015 • www.charlestonbusiness.com

Volume 21, No. 2 • $2.00

Haley, tech CEOs send pro-Uber letters following cease-and-desist

By Liz Segrist

Beer stats

How deregulation could grow fledgling industry across South Carolina.

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Cut and grow

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lsegrist@scbiznews.com

he S.C. Public Service Commission has ordered Uber to halt operations, spurring Gov. Nikki Haley and local tech company executives to write letters in support of the company.

The state commission sent a cease-anddesist order earlier last month because Uber

did not obtain a required Certificate of Public Convenience and Necessity before beginning operations.

Uber, which offers rides through an app, began operations in Charleston, Columbia, Greenville and Myrtle Beach this summer even though the S.C. Office of Regulatory Staff said it was illegal at the time.

In a letter to the commission, Gov. Nikki Haley said the order was “extremely disap-

North Charleston’s Vapor Apparel opens Upstate cut-and-sew facility.

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Massive cargo

Port handles generator weighing more than 1.5 million pounds.

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New pilot

Boeing S.C.’s VP retiring from company after 787 facility growth.

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VAP NG regulation

unclear

pointing” and that her administration and the General Assembly have worked to make South Carolina business-friendly with limited government.

“The action taken by the PSC yesterday is in direct conflict with the efforts undertaken by thousands of South Carolina public servants who have fought every day to make our See UBER, Page 6

CofC recruits working adults back to school

By Ashley Heffernan

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aheffernan@scbiznews.com

35-year-old college student treats education much differently from a 20-year-old student, and the College of Charleston is hoping a new school that targets the older demographic will help boost the Lowcountry’s workforce.

Godfrey Gibbison, dean of CofC’s new School of Professional Studies, said nontraditional students, who are typically working adults looking to advance their careers, are highly motivated to learn as much as possible in the quickest amount of time as they balance family and job responsibilities.

See COLLEGE, Page 10

INSIDE Upfront............................. 2 In Focus: Health Care... 17 List: Hospitals............... 22 List: Urgent Care Centers.......................... 23 At Work.......................... 25 People in the News......... 25 Business Digest.............. 25 Hot Properties................. 30 Viewpoint........................ 31

As electronic cigarette retail shops continue to open around the Lowcountry, business is good, competition is increasing and owners are watching for possible state and federal regulations.

Full story, page 8

Photo/Ashley Heffernan

Top spot

U.S. News & World Report names MUSC’s online nursing program the best in the country.

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Upfront:

Briefs, brights and business news

On the Record “Don’t stop me from making a living for my family.

We are here, and we aren’t going anywhere.”

— Uber driver speaking in favor of the service operating in Charleston

Craft brewers hopping on the beer bandwagon It’s been a few months since the passage of the so-called Stone Law, which didn’t have the desired effect of luring Stone Brewing Co. to the Palmetto State. But the law did loosen the grip of regulations, which has been a bonus to existing brewers and could help further expand this growing sector.

How much depends on what entrepreneurs do with a more business-friendly regulatory climate, but we looked to the Craft Brewers Association in Boulder, Colo., for regional comparisons to see where we are right now. Expect this trend to continue upward as more folks discover the burgeoning craft beer culture growing in the state and region, with a lot of food and beverage establishments focusing on the sector and annual events such as Brewvival next month and the Charleston Beer Garden in May. Source: Craft Brewers Association, 2012 stats

People would rather live in S.C. than New Jersey OK, so that’s probably not news, but the latest inbound survey of moving trends shows that South Carolina is the No. 2 place to which folks across the U.S. are moving.

New Jersey, on the other hand, is the No. 1 place people are leaving.

All this somewhat obvious data comes from United Van Lines, which surveys its customers each year in its National Movers Study.

If you’re looking for ways to to capitalize on this trend of folks coming here, United Van Lines found that 36% of those moving to South Carolina are coming here to retire.

Don’t feel bad for New Jersey alone. The entire Northeast is seeing a bit of an exodus, with New York, Pennsylvania and Connecticut all showing up on the list of outbound states. Meanwhile, several Southern states are luring a lot of folks in, with North Carolina and Florida joining South Carolina on the top destinations list. West Virginia was the only Southern state on the outbound list.

What about Ohio? The Buckeye state is No. 6 on the list of states people are leaving.

We can only guess where they’re moving.

California

Washington

North Carolina

Georgia

South Carolina

$4.7 billion (Ranked No. 1) 381 Breweries

$1 billion (Ranked No. 9) 201 Breweries

$791.1 million (Ranked No. 14) 91 Breweries

$671 million (Ranked No. 17) 28 Breweries

$254.3 million (Ranked No. 34) 20 Breweries

Pilot pay depends on your airspace

Even if you just fly in the cabin of big jets and not in the cockpit, you probably think a lot of the person actually flying the aircraft. So you may be interested in this wage and salary data that we stumbled across on Salary.com. The numbers vary by ZIP code, and other Salary.com data show the top 10% of pilots working in the Charleston area make more than $144,000. But here’s how they stack up:

Selected median salaries for pilots of large jets: Region

Median annual salary Seattle $130,745 Chicago $128,629 Denver $123,626 Atlanta $123,357 Source: Salary.com

Top 10 states to which people moved in ’14 1. Oregon 2. South Carolina 3. North Carolina 4. Vermont 5. Florida 6. Nevada 7. Texas 8. Washington, D.C. High Inbound 9. Oklahoma High Outbound Balanced 10. Idaho Source: United Van Lines 2014 Annual National Movers Study

National median $122,318

Charlotte $122,049 Greenville $118,367 Charleston $116,079 Columbia $114,575 Norfolk, Va. $112,948 Savannah $109,132

One number

295,210

Number of workers employed in the Charleston metro region as of May 2013, when the latest regional occupational report from the U.S. Bureau of Labor Statistics was released. Most of those were employed, respectively, as office workers, in sales, food and beverage, health care, and materials handling and logistics.

Source: U.S. Bureau of Labor Statistics

Jan. 26 - Feb. 8, 2015

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Vapor Apparel expands, adds textile jobs in Union County

By Liz Segrist

a digital printing process. Using fabric from a mill in Bogota, Colombia, they engineered shirts that could handle the apor Apparel plans to bring more heat during printing without melting. than 100 cut-and-sew jobs from The company’s digital sublimation North Carolina to the Upstate, printing process opens the fabric’s molethe state’s former textile belt until the cules with heat and infuses them with ink 1990s when many companies closed to capture the color or pattern. operations and moved jobs overseas.

The process essentially tattoos the fabThe North Charleston-based cloth- ric with the design or print. The process ing manufacturer produces performance allowed them to expand beyond the traapparel and bulk fabrics engineered for ditional white offerings from competitors digital decorating and screen printing. to include customized light colors and Vapor Apparel’s new facility in Union pastel options.

County will house its domestic cut-andThey launched in 2004 and quickly sew division — a rapidly expanding part outgrew their home operations, so they of the company’s product line — and moved into the Navy Yard at Noisette in help grow its e-commerce fulfillment and North Charleston. They were the first to print-on-demand services, said Christo- move into the 10 Storehouse Row develpher Bernat, Vapor Apparel’s co-founder opment as the old naval base was underand chief revenue officer. going redevelopment in the mid-2000s.

Bernat said he and co-founder Jackson They have since added on-demand Burnett wanted to locate their new facili- printing services and cut-and-sew operty in the Upstate since the area has more ations for customized apparel. In 2014, trained textile workers than other parts of the 40-employee company grew its gross the state. revenue 28% year over year.

The company plans Sales are buoyed, in to invest $1.3 million to part, by apparel orders retrofit a 30,000-squarefor more than 40 fishfoot manufacturing “It is an honor to bring ing brands, as well as facility on Riley Road uniforms for scout sewing jobs back to troops and t-shirts sold in Union County. The state’s Coordinating in national parks.

South Carolina.”

Council for Economic After a push by some Development approved legislators to require Jackson Burnett a $100,000 Rural Infrathat more domesticalpresident, Vapor Apparel structure Fund grant ly produced goods be for property improvesold in stores at nationments. al parks, retailers are The facility sits on 8.5 acres along with demanding more “Made in the USA” two other buildings totaling about 17,000 products. square feet. Bernat said the company Most Vapor Apparel orders are small could renovate those buildings for future to accommodate customization. One expansions as well. order for a Boy Scout troop might be Vapor Apparel plans to create 114 jobs for 25 shirts, but the company producover the next five years in Union County, es more than 150,000 shirts for troops which has a population of about 28,000 nationwide each year, for example. people and an unemployment rate of 7.8%, The company also buys its own blank according to state data from November, shirts and customizes them for their outthe latest available at press time. door brands, which they sell to retailers The majority of hires will be for man- or directly to consumers online. ufacturing, production and sewing jobs.

Vapor began selling shirts on Amazon Hiring will begin in the spring with train- in 2013. A shirt is not printed until an ing and recruitment from ReadySC, a divi- order is placed on the site, and the comsion of the S.C. Technical College System. pany “saw meteoric growth from that” — “It is an honor to bring sewing jobs about 400% in online sales year over year back to South Carolina,” said Burnett, the in 2014, Bernat said. company president, on their decision to “We are an apparel company, an art relocate the work from a partner in North company and a digital company, and we Carolina. “Union is textile country; it has are constantly growing in our verticals,” a history in the industry. These jobs are Bernat said, noting that the Union Counconnected to technology through print- ty jobs “are connected to dynamic maron-demand markets, which we will con- kets and leverage our investment in mass tinue to invest in moving forward.” customized artwork for our clients.”

After meeting at Clemson University, Bernat and Burnett saw an opportunity Reach staff writer Liz Segrist at 843-849to customize performance apparel using 3119 or @lizsegrist on Twitter.

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lsegrist@scbiznews.com

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lowcountry newsroom Managing Editor - Andy Owens aowens@scbiznews.com • 843.849.3142

Jan. 26 - Feb. 8, 2015

Business news from around S.C.

Senior Copy Editor - Beverly Barfield bbarfield@scbiznews.com • 843.849.3115

Tennessee-based company acquires Hartsville hospital

Staff Writer - Liz Segrist lsegrist@scbiznews.com • 843.849.3119

The sale of the 116-bed Carolina Pines Regional Medical Center fulfills a divestiture requirement that the Federal Trade Commission imposed on Community Health Systems Inc. as part of its $7.6 billion acquisition of Florida-based Health Management Associates and its 71 hospitals.

Staff Writer - Ashley Heffernan aheffernan@scbiznews.com • 843.849.3144 Research Specialist - Melissa Verzaal mverzaal@scbiznews.com • 843.849.3104 Associate Editor, Special Projects - Jenny Peterson jpeterson@scbiznews.com • 843.849.3145 Senior Graphic Designer - Jane Mattingly jmattingly@scbiznews.com • 843.849.3118

3D Systems acquires London-based botObjects

Graphic Designer - Andrew Sprague asprague@scbiznews.com • 843.849.3128 midlands newsroom Editor - Chuck Crumbo ccrumbo@scbiznews.com • 803.726.7542 Special Projects Editor - Licia Jackson ljackson@scbiznews.com • 803.726.7546 Research Specialist - Patrice Mack pmack@scbiznews.com • 803.726.7544 Upstate newsroom Copy Editor - Don Fujiwara dfujiwara@scbiznews.com • 864.235.5677, ext. 106 Staff Writer - Bill Poovey bpoovey@scbiznews.com • 864.235.5677, ext. 104 Graphic Designer - Jean Piot jpiot@scbiznews.com • 864.235.5677, ext. 105 Lowcountry Account executives Senior Account Executive - Sue Gordon sgordon@scbiznews.com • 843.849.3111 Senior Account Executive - Robert Reilly rreilly@scbiznews.com • 843.849.3107 Account Executive - Sara Cox scox@scbiznews.com • 843.849.3109 Account Executive - Bennett Parks bparks@scbiznews.com • 843.849.3126

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FN America, which operates a manufacturing facility in Columbia, will produce different versions of its M240 machine gun for the U.S. Army. (Photo/FN America)

Army awards Midlands company $84.6M machine gun contract FN America has received a contract to build four variants of the M240 machine gun and spare receivers for the U.S. Army.

The contract includes four one-year ordering periods with a total value of $84.6 million. Work on the contract will be performed at the company’s plant in northeast Columbia.

“We are pleased that FN America has been selected to produce the M240 family of machine guns for the U.S. Army,” said Mark Cherpes, FN America president and CEO. “Since 1989, FN has produced more than 2 million firearms for the U.S. military at our Columbia manufacturing facility.”

The M240 family of medium machine guns, which has been used by all services of the U.S. armed forces, comes in several variants and mounting configurations.

Rugged and highly reliable, this weapon’s high volume of fire makes it the principal suppressive fire instrument for the infantry platoon and company.

Audience Development Specialist - Jessica Smalley jsmalley@scbiznews.com • 864.235.5677 ext. 116 Event Planner - Jacquelyn Fehler jfehler@scbiznews.com • 864.235.5677, ext. 113 Accounting Manager - Vickie Deadmon vdeadmon@scbiznews.com • 864.235.5677, ext. 100 Custom media division Director of Business Development - Mark Wright mwright@scbiznews.com • 843.849.3143 Account Executive - Mariana Hall mhall@scbiznews.com • 843.849.3105

Columbia leaders break ground for ‘Team Columbia’ The new baseball stadium, scheduled to be ready in time for opening day in April 2016, is being presented by city officials and developers as the linchpin to major private investment on the surrounding 157 acres that once was the Bull Street campus of the state mental hospital.

First Citizens finalizes merger of Carolinas banks The merger adds more than 175 locations in South Carolina and Georgia to the Raleigh, N.C.-based company’s existing branch network.

First Citizens is the largest family-controlled bank in the nation and the sixth-largest bank franchise headquartered in the Southeast with more than $30 billion in assets.

Auto supplier opening Spartanburg County plant

California firm invests $250M in Red Ventures

Columbia hotel completes $4 million renovation

PecTec Corp., a supplier of semifinished and finished metal products for the automotive industry, is opening in Spartanburg County. The $2 million investment by the company, which is part of Germany-based Braun GmbH, is expected to add 15 jobs.

Silver Lake Partners of Menlo Park, Calif., will be a minority shareholder of the South Carolina-based tech firm. The investment will be used to fuel further expansion of Red Ventures, which has doubled its employee base during the past five years to more than 2,000.

The nine-story Courtyard by Marriott hotel at 630 Assembly St, adjacent to the University of South Carolina campus, recently underwent an upgrade of the interior and exterior of the building plus a facelift for the lobby. The property is owned by Sree Hotels of Charlotte.

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The UK firm has pioneered the first 3-D desktop printer using technology called PlasticJet Printing, which offers true full-color 3-D printing. 3D Systems did not disclose terms of the sale, but expects it to be accretive to results for 2015.

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senger safety. Three Uber drivers were recently accused of sexually assaulting passengers in Chicago and New Delhi.

Uber’s entree into the market has angered taxi and limo drivers in Charleston and frustrated public officials who have to decide whether to regulate the company in the same manner as other transportation services or create new ordinances.

Uber declined to give a specific number but said that hundreds of drivers are operating in the state currently. Charleston City Council plans to vote on Uber regulations within the next month, though state legislation could alter those plans.

UBER, continued from Page 1

state the best place in the country to start and grow a business,” Haley said in her letter.

Haley urged the commission to “resolve this matter immediately” and said she wants the state legislature to create a framework for regulating Uber, as well as other transportation companies that use an app, such as Lyft or Sidecar, if they come to the state.

“There should be no disruption to our residents’ jobs and no roadblocks that stand in the way of their access to safe methods of transportation,” Haley said.

S.C. Rep. Leon Stavrinakis, D-Charleston, said in a statement that he is working to draft legislation that would allow Uber to operate legally in the state. He expects a bill to be filed soon.

CEOs Nate DaPore of PeopleMatter, Grier Allen of BoomTown, Kevin Eichelberger of Blue Acorn and Adam Witty of Advantage Media Group also sent a letter to the commission, as well as to Haley and Charleston Mayor Joe Riley, to express their support for Uber.

The executives of the Charleston-based tech companies said the decision to halt service without input from Uber or residents sends “a terrible message to the business community here in the state, future companies that may relocate here and consumers.”

Regulations

Uber users can request and pay for a ride through the company’s mobile app. Uber drivers working in Charleston aren’t paying licensing fees to municipalities or airports. (Photo/Uber)

As Charleston’s population balloons, business leaders, politicians and the Charleston Metro Chamber of Commerce have said repeatedly that improved infrastructure and better transportation options are top priorities to accommodate growth over the next few decades.

The tech executives said “ridesharing apps like Uber are something the state desperately needs to support the growth,

safety of transportation and options for consumers.”

The San Francisco-based company has been growing globally and raised $1.2 billion in its latest funding round, with a $40 billion valuation, according to TechCrunch.

Amid its growth, Uber has recently come under fire for ignoring municipalities’ regulations and not ensuring pas-

The Public Service Commission requires any company that offers car rides to passengers for money to get a certificate before service can begin. Raiser LLC, a wholly owned subsidiary of Uber Technologies Inc., filed an application for a Class C certificate in September.

The state’s Office of Regulatory Staff scheduled a Jan. 26 hearing with the commission regarding Uber’s application, but the commission canceled it after the cease-and-desist order was sent.

The commission’s letter says Uber operations are to be suspended “until the See UBER, Page 7

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Jan. 26 - Feb. 8, 2015

www.charlestonbusiness.com 7

tomers are safe.

Uber drivers said they differ from these application is approved and a certificate companies because they are requested via is issued.” an app and they use their own vehicles.

Dukes Scott, executive director of the They also said Uber performs its own Office of Regulatory Staff, said he was background checks before drivers begin, surprised by the cease-and-desist order though many said they would adhere to and wants the commission to resched- any regulations set forth by the city. ule the Uber hearing. The Public Service Charleston City Councilman Bill Commission did not return requests for Moody said the transportation commitcomment by press tee will study the time. feedback and curA commission rent ordinances to “There should be no representative previpresent a plan to ously said that every soon, adding disruption to our residents’ council city in the state regthat Uber likely will ulates its transportato operate jobs and no roadblocks that continue tion operations; the in the city. commission reguIn a Facebook stand in the way of their post, lates only for areas Stavrinakis outside of city limits access to safe methods of wrote: “In addior for those cities tion to creating jobs that do not regulate for the people of transportation.” the service themCharleston, Uber selves. has provided a safer Gov. Nikki Haley During a recent way to travel in our public hearing with city and state. Uber Charleston City has also become a Council’s transportation committee, taxi key component of maintaining an interand limo drivers said Uber drivers should nationally competitive tourism and hoshave to follow the same regulations they pitality industry. ... Charleston is quickly do, including undergoing background becoming the technology hub of the East checks through the city, paying business Coast, and it’s unconscionable that this license fees and capping or preventing basic technology would not be available surge pricing. to residents and visitors.”

They said Uber drivers should be held to the same standards and regulations to Reach staff writer Liz Segrist at 843-849“even the playing field” and ensure cus- 3119 or @lizsegrist on Twitter.

UBER, continued from Page 6

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Port handles generator weighing 1.5M pounds

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Staff Report

orkers at the Port of Charleston and the S.C. State Ports Authority recently handled one of their heaviest energy project moves to date — a 1.5 million-pound Westinghouse Electric Co. steam generator.

The generator was offloaded from the BBC Aquamarine directly onto a Schnabel car, a 36-axle railcar designed to transport heavy and oversize loads.

The equipment will be transported from Charleston to the V.C. Summer site in Jenkinsville, where S.C. Electric & Gas Co. and Santee Cooper have a nuclear power plant expansion underway.

The port will handle three additional steam generators of the same size over the next year.

“The steam generator move demonstrates the high, wide and heavy capabilities of our Columbus Street Terminal, the premier break-bulk and roll-on, rolloff cargo facility in the Southeast,” Ports

Workers offloaded a 1.5 million-pound steam generator at the Columbus Street Terminal off East Bay Street in Charleston. (Photo/Provided)

authority CEO Jim Newsome said in a statement.

The Columbus Street Terminal was renovated in 2011 to expand its on-dock rail, storage and heavy-lift capabilities for project cargo and other break-bulk cargo, or cargo that cannot be loaded into containers — such as Greer-manufactured BMWs that are shipped overseas from the terminal. cr bj

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Jan. 26 - Feb. 8, 2015

E-cigarette market grows in Charleston, awaits regulation

By Liz Segrist

lsegrist@scbiznews.com

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hen Charlie Howle wanted to quit smoking before his first child was born, he turned to electronic cigarettes to help kick his 15-year, pack-a-day habit.

E-cigarettes are battery-powered devices that convert a solution of nicotine and flavored liquid into a vapor that can be inhaled, often called “vaping.” They helped ease Howle off tobacco while giving him the nicotine he wanted and the act of smoking he craved.

He wanted to help others do the same, so he opened Charleston Electronic Cigarettes LLC in 2013. He has retail shops off Savannah Highway in West Ashley and off Trolley Road in Summerville.

“I saw an opportunity for a business because the marketplace wasn’t very well-developed at the time,” said Howle, who oversees four full-time employees as owner and general manager. “The e-cigarette market has since exploded here, as it has everywhere.”

E-cigarettes were first marketed overseas in 2002. They entered the U.S. market around 2006 and have seen significant growth. Bloomberg Industries projects total e-cigarette sales could reach $1.5 billion this year and possibly surpass traditional cigarette sales as of 2023.

A study from the University of California San Diego School of Medicine found that 10 new e-cigarette brands entered the Internet marketplace every month from 2012 to 2014, on average.

The study also found that more than 466 e-cigarette brands and nearly 5,000 liquid flavors, such as mint tea or pineapple, are sold online.

When Howle opened his store two years ago, he had two competitors. Today he has more than 20, including Carolina Vapor, E-Cigs Depot, eVapors LLC, Mizfit Vapors, ECig Charleston, The Planet Vape, Pleasant Ecigs and Lowcountry Ecigs. Many have multiple stores around the Lowcountry and across the state.

“It’s a huge marketplace now, and it’s developed so quickly,” Howle said.

“In 2012, Charleston County residents spent $288 million on tobacco products. ... That’s what we see as our potential.

We are looking to capture that market share.”

On one afternoon in Howle’s West Ashley shop, a customer walked in about every 10 minutes. Two men in their early 20s chatted about various liquids they wanted to try and hung out in the store to vape. One woman needed a replacement battery. A businessman needed liquid refills.

“Happy vaping!” employee Denver Watts said to one customer after she pur-

Charleston Electronic Cigarettes employee Denver Watts (left) and owner Charlie Howle sell e-cigarettes and flavored liquids in West Ashley. (Photo/Liz Segrist)

chased her first e-cigarette kit.

The products vary based on what type of smoker the customer is. Heavier smokers typically want a solution with much more nicotine than a lighter smoker, and they prefer a battery that will last all day after being charged. Users can set the voltage to control how much vapor they are inhaling and how strong of a sensation they want.

Those who are trying to quit smoking slowly decrease the amount of nicotine in their vapor over time.

Other e-cigarette smokers are hobbyists, often called “cloud chasers,” who do not wish to quit. Some, like Watts, made the switch because e-cigarettes are often less expensive. The initial investment for the e-cigarette and accessories costs between $25 and $300, but $6 worth of liquid equals about eight packs of cigarettes, which would cost about $45 in South Carolina.

Carrie Brown and her husband, Chris, had been smoking for more than 20 years when they made the switch to e-cigarettes. Brown began making her own juice for vaping and selling it online.

They opened The Planet Vape, a retail shop and vape lounge in West Ashley, last spring.

“E-cigarettes helped us so much, and now we see that with our customers,” Carrie Brown said.

Regulations

In 2013, a group of S.C. legislators proposed a bill that would create a tax of five cents per milliliter of vapor liquid in an

e-cigarette, compared with the statewide tax of 57 cents per pack on cigarettes.

The bill, led by Rep. Brian White, R-Anderson, would also assess a tax of five cents per ounce on “tobacco-derived” products.

Rep. Rita Allison, R-Spartanburg, who co-sponsored the bill, said the legislation died and she has not seen another e-cigarette-related bill introduced. She said that “funding shortfalls for roads, bridges and education are taking precedence.” Allison said the state is likely waiting for federal rulings to regulate the industry.

Public health experts tend to agree that e-cigarettes are less toxic than traditional cigarettes, but many say more research needs to be done. They also say a lack of regulation means consumers do not know whether they are inhaling toxins or cancer-causing chemicals from shoddy manufacturers and liquid producers.

Regulatory oversight could inform consumers about the manufacturer of the product and the ingredients it contains, as well as require warning labels.

In 2010, the U.S. Food and Drug Administration argued that e-cigarettes delivered nicotine similar to nicotine patches, which require approval before they can be marketed. They wanted to regulate e-cigarettes as drug-delivery devices rather than as tobacco products, but a federal appeals court ruled that they could not.

E-cigarette proponents say their products should not be taxed or regulated in the same way as cigarettes because they

do not contain tobacco, but Carrie Brown sees e-cigarettes taxes on the horizon. She hopes taxes “are reasonable” but supports age restrictions for e-cigarettes and ingredient regulation.

The FDA has not determined how to regulate e-cigarettes in the United States, leaving many angry upon seeing federal data that show e-cigarette use among middle and high school students has more than doubled since 2011.

In an effort to set up a regulatory framework for e-cigarettes, the FDA proposed a “deeming rule” in 2014 that includes requiring e-cigarette manufacturers to disclose ingredients, creating a ban on the sale of e-cigarettes to minors and prohibiting e-cigarettes from being sold in vending machines or passed out as free samples.

The agency is currently studying more than 135,000 public comments on the ruling and analyzing the costs of gathering scientific data on e-cigarettes’ safety.

As the states wait for federal regulation, South Carolina did pass a law in 2013 that banned the sale of e-cigarettes to minors, joining 37 other states to do so.

“Something is coming. The question is what and when,” Howle said. “We believe most of the regulations will pertain to minors and clear and accurate labeling, which I think anyone with a good head on their shoulders will be in favor of.” cr bj

Reach staff writer Liz Segrist at 843-8493119 or @lizsegrist on Twitter.

Jan. 26 - Feb. 8, 2015

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Boeing SC general manager calls retirement ‘bittersweet’

By Liz Segrist

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lsegrist@scbiznews.com

ack Jones will retire as the head of Boeing South Carolina in May after leading the opening and growth of the company’s North Charleston 787 Dreamliner campus.

Beverly Wyse will succeed him as the general manager and vice president of Boeing’s local operations. Wyse moves to South Carolina after five years leading the 737 program, the Renton, Wash., site and the Customer Delivery Center at Boeing Field, the company said.

Jones will “continue to play a significant role in North Charleston, focusing on a smooth transition while staying involved with employees and the community,” until his retirement, the company said in the news release.

Jones retires from the aerospace manuJones facturing giant after 35 years. His tenure included leadership positions on the 787, 767, 747, 757, B-2 and Air Force One commercial and military programs.

Jones relocated to Charleston in 2011 to Wyse oversee Boeing South Carolina’s establishment and growth, working to ramp up the aft and midbody production and final assembly for the 787-8 and 787-9 Dreamliners.

Jones worked with the Boeing South Carolina team through traveled work delays last year and on the recent integration of 787-9 assembly at the North Charleston plant, as well as on the announcement that the local plant will be the sole producer and assembler of the 787-10.

“Since 2011, (Jack) has done an outstanding job leading BSC, ramping up and sustaining 787 aft and midbody production as well as final assembly, expanding the site’s capabilities and making the company an integral part of the community,” Pat Shanahan, senior vice president of airplane programs for Boeing Commercial Airplanes, said in a statement.

Jones sent the following email to Boeing South Carolina employees, published on the All Things 787 blog.

Below are some excerpts: Goodbye and Thank You ... This was a bittersweet decision for me. ... Throughout my 35-year career I have had the privilege of working on some of Boeing’s most iconic and challenging programs. The Boeing South Carolina

assignment certainly qualifies as one of those programs, and has been one of the more challenging assignments I’ve had.

However, thanks to you and this remarkable Boeing South Carolina team, and our unprecedented accomplishments in a relatively short period of time, I will leave with this being my most rewarding and satisfying assignment.

Since my first day here in 2011, I’ve seen many positive changes, not only in production, quality and efficiencies, but in our teammates. Everyone at BSC is learning

and growing, and doing remarkable things — turning dreams into reality at a site that just over five short years ago was two small suppliers surrounded by a lot of open land.

Now look at BSC today! It’s truly amazing and each and every one of you is to thank for that.

Retirement was a hard decision for me, especially at a time when BSC is operating at an all-time high, firing on all cylinders, and proving to our early skeptics that we are truly Boeing Strong.

However my decision was certain-

ly made easier knowing I was leaving it in the hands of a team I know well, and will never stop making this site the world class facility it is or ever retreat when faced with adversity. In other words … You Guys Rock! ...

I’ll be working closely with Bev from now until May and I have no doubt that with her long and successful history with our company and our products, combined with your talent, professionalism, and dedication, BSC’s future remains extremely bright and is in very capable hands. cr bj

10

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➤

From 2000 to 2011, enrollment of students 25 years and older rose 41% nationwide, according to the National Center for Education Statistics. From 2011 to 2012, the center projects enrollment of students older than 25 will have seen a 14% increase.

That adult education market is something CofC has wanted to tap for years.

“Most of our students are traditional age — 18 to 22 years old. But that’s not what the rest of higher ed looks like,” Gibbison said. “It’s a surprise for most people when I tell them that people 24 years and older now make up 40% or more of undergraduate students in the United States.”

He said that statistic is particularly relevant because college students are typically divided between the 18- to 22-yearold group and the above-30 group.

“We have this joke that the average age of a college student is 24, but there are no 24-year-olds in college,” he said. “It’s adults who are coming back to college who increase that number.”

The School of Professional Studies opened within the college’s North Campus on Jan. 1. Its only degree program, a bachelor of professional studies, has existed for about a year and a half, with an average student age of 37, according to Gibbison.

But until now, the bachelor’s program

Jan. 26 - Feb. 8, 2015

didn’t have an academic home. It was offered through the CofC North Campus, which recently moved to Paramount Drive in North Charleston and is going through a transition phase.

“We want the North Campus to be known truly as just a facility, not the academic unit,” he said. “The idea is to have an academic home for those students, a way for them to recognize that we’re serious about serving the needs of those students.”

The professional studies degree currently has three concentrations from which students can choose: organizational leadership and management; applied communication; and information systems. But more could be added, as soon as the fall semester, depending on the needs of the local economy.

Gibbison said students who are recruited to the program are typically already working locally and have a high school diploma or associate degree.

“Adults don’t go back to school just to study for fantasy. They’re not doing this to explore and learn about themselves,” he said. “They know who they are, and they know what they’re looking for, and, very often, they’re looking for job prospects or a career change.”

Gibbison’s staff has been monitoring the growing industries in the region and speaking to human resources directors in some of the Lowcountry’s largest employers to determine what other concentra-

tions are needed for adult students. The most prominent on his list so far is health care management.

“Health care is one of the few industries that continued to grow in the recession. Baby boomers are retiring at high rates, and that’s caused very high growth in the industry both locally and nationally,” he said.

Workers with associate degrees in allied health from Trident Technical College or Orangeburg-Calhoun Technical College, for instance, now need to take on greater management roles and responsibilities.

“These students have to still work from 9 a.m. to 5 p.m., so we’ll offer courses online, at night and on the weekends to accommodate their schedules,” he said.

“We’re also working to build a bridge with area two-year schools to make the time to degree quicker so there will be a seamless transition from associate to bachelor’s and a minimum loss of credit hours.”

Other concentrations could launch in 2016, but they will depend on the market.

The Charleston Metro Chamber of Commerce hosted focus groups several years ago to help the college determine which programs to offer, according to Mary Graham, the chamber’s chief advancement officer.

“Anything we can offer in this community for working adults to finish their degrees or add degrees is a good thing for the community,” Graham said. “Research

out there shows that earnings for those in the population with a bachelor’s degree are higher than those who don’t have a degree. That means more dollars circulating in the economy.”

Graham said Lowcountry businesses need more employees with degrees focused on information and computer technology, manufacturing, engineering and accounting, as well as logistics and transportation.

“We’ve been discussing additional degrees in those areas and adding additional courses in existing majors for computer technology programs to make new, unique types of degrees,” she said.

CofC’s new school also houses the college’s Center for Continuing and Professional Education, which offers leadership development programs and English language courses to the public. Most participants are working adults who already have a bachelor’s degree but are looking for a specific skill or are required to take continuing education courses for a certification or license.

“You have folks in an organization who have recently taken on supervisory responsibilities but they don’t have the appropriate kind of training to supervise someone, plan a meeting, set expectations and goals,” Gibbison said. “We can put that person through a six-week or eight-week course to teach them what they need to know without them becoming CofC students.” cr bj

Jan. 26 - Feb. 8, 2015

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Jan. 26 - Feb. 8, 2015

Report: Deficient roads cost S.C. motorists $1,200 yearly

By Liz Segrist

S

lsegrist@scbiznews.com

outh Carolina’s congested highways and deficient bridges are hindering business recruitment and tourism growth, according to Charleston Metro Chamber of Commerce President and CEO Bryan Derreberry.

“The current system is placing our coast and our state at a competitive disadvantage for both economic development and tourism,” Derreberry said in a statement. “We are asked constantly what our state is doing to address infrastructure needs. We are asking our state elected leaders to find a solution.”

South Carolina’s roads are in need of repairs and many bridges are no longer structurally sound, costing motorists money, time and safety, according to a new report released by TRIP, a Washington, D.C.-based group that researches transportation issues and policies. The nonprofit is funded by insurance companies, equipment manufacturers, construction companies and labor unions.

Its report found that deficient roads and bridges are costing South Carolina motorists $3 billion annually in repairs, traffic crashes and congested-related delays, which averages to nearly $1,200 per driver each year.

The S.C. Department of Transportation says it will need $42 billion more than it’s expecting to receive over the next three decades to complete needed road improvements and repairs throughout the state.

“These conditions are only going to get worse if greater funding is not made available at the local, state and federal levels,” TRIP Executive Director Will Wilkins said in a news release.

Included in the chamber’s 2015 legislative agenda priorities, the chamber supports an increase in the motor-user fuel fee by 25 cents per gallon and indexing the fee for inflation. The state’s gas tax is currently 16.75 cents per gallon, the third-lowest in the country.

The chamber also advocated for extending the federal government’s surface transportation program, which pools money from motor fuel and other highway use taxes to fund bridge projects and highway improvements for states and municipalities. Congress approved an eight-month extension of the federal surface transportation program last summer. The extension ends May 31.

Other transportation funding plans have been put forth, including Sen. Paul Campbell’s (R-Berkeley) proposal to increase the gas tax by 10 cents this year, and Sen. Larry Grooms’ (R-Berkeley)

proposal to increase it by 2 cents annually over the next decade.

But South Carolina’s new House speaker, Republican Jay Lucas of Darlington, has said he does not expect lawmakers will approve a plan this year to pay for repairing S.C. roads.

Gov. Nikki Haley’s proposed budget for the next fiscal year does includes allocating $61.4 million from the sales tax on cars and trucks to the state Transportation Department rather than the general fund.

Politicians and local chamber officials say more funding is needed to improve the state’s transportation networks, which will decrease fatalities and costs for drivers and help recruit business to the state.

Key findings: Roads The report finds that 46% of major roads and highways in South Carolina, including state-maintained interstate, primary and secondary routes, are in poor condition, up from 32% in 2008.

Roads in poor conditions decreases safety for drivers and causes them to waste more time on the road each year, increasing their maintenance and fuel costs.

Bridges Statewide, 21% of the bridges show significant deterioration or do not meet modern design standards; 11% are structurally deficient; and 10% are functionally obsolete, meaning they no longer meet modern design standards.

Fatalities South Carolina’s overall traffic fatality rate of 1.76 fatalities per 100 million vehicle miles traveled is the highest in the nation, tied with West Virginia. The national average is 1.13 fatalities per 100 million vehicle miles traveled. About 4,300 people died in traffic crashes in South Carolina between 2008 and 2012, the report said. From 2010 to 2012, an average of 50 traffic fatalities occurred annually in the Charleston area.

Congestion, costs Regional congestion is worsening, meaning the average Charleston motorist experiences 30 hours of delay and spends $647 in lost time and wasted fuel each year. The report also finds that 37% of major roads in the Charleston region are in poor or mediocre condition, costing each local driver $1,168 per year in maintenance and repairs. cr bj

Reach staff writer Liz Segrist at 843-8493119 or @lizsegrist on Twitter.

Jan. 26 - Feb. 8, 2015

www.charlestonbusiness.com 13

Push Digital, Push Advocacy and Push Elections employees collaborate in the Columbia office. Push Digital CEO Wesley Donehue plans to relocate much of his staff to Charleston. (Photo/Jonathan Sharpe)

Political consulting firm Push Digital moving to area

By Liz Segrist

lsegrist@scbiznews.com

W

esley Donehue is relocating his digital-focused political consulting company from Columbia to Charleston with plans to hire more staff and nab more national campaigns.

Push Digital focuses on using social media, online fundraising and other technologies to win campaigns for Republican candidates, such as the races for Republican U.S. Sens. David Perdue in Georgia and Tom Cotton in Arkansas, as well as with the Wisconsin Republican Party to help Gov. Scott Walker’s re-election bid.

“If it’s on the Internet, if it’s data, then we do it for candidates,” Donehue said.

“I come from a campaign background.

Instead of forcing technology into a campaign, I take the opposite route. I look at everything a campaign does to see: ‘How can we make this more efficient with technology?’”

Donehue’s first foray into politics was at age 14 when he helped on state Sen. Bill Mescher’s campaign in Goose Creek.

Donehue has since consulted on numerous political campaigns throughout his career, including campaigns for former U.S. Sen. Jim DeMint and former presidential candidate Michele Bachmann of Minnesota.

He continued to do political consulting work until he opened Push Digital, formerly Donehue Direct, about five years ago. The firm has since grown to 23 employees.

Push Digital — and one of its divisions, Push Elections — provides political consulting, social media and advertising campaigns, website design and development, and online fundraising for candidates.

The majority of the firm’s work for Super PACs and on senatorial, gubernatorial and congressional races is now outof-state, with only about 5% coming from S.C. candidates.

Another arm of the company, Push Advocacy, works with campaigns that promote a project or cause. The group did pro bono work with the Pint Bill and Stone Bill, which paved the way for breweries to serve more beer to their customers during tastings and serve food in their establishments, respectively.

As a self-proclaimed craft brewer hobbyist and fan of microbreweries, Donehue said he wanted to see that campaign through.

Relocation plans

Donehue recently moved with his wife and 7-month-old son to Summerville. He plans to relocate about 15 of his employees from the capital city to the Lowcountry early this year. He said some employees will remain in Columbia.

Donehue said he can run his technology-based political technology consulting firm from anywhere and that he wanted to get back to the Lowcountry, where he grew up, and be closer to less expensive flight options at Charleston International Airport.

The firm is considering locations along Upper King in downtown Charleston or in North Charleston, near breweries. Donehue said he plans to hire more employees in Charleston later this year.

“People think of political consulting firms as law firms, but we have pingpong tables and kegerators,” Donehue said.

“We operate much more like a tech startup: more funky and laid back.” cr bj

Reach staff writer Liz Segrist at 843-8493119 or @lizsegrist on Twitter.

14

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Jan. 26 - Feb. 8, 2015

McMaster’s attorney asks for campaign finance allegations to be dropped

By Ashley Heffernan

campaign or the subsequent debt retirement effort.” .C. Lt. Gov. Henry McMaster will He cited a State face 51 counts of campaign finance Ethics Commisviolations during a hearing in sion Advisory March.

Opinion from In early January, the State Ethics Com- 1992 as an explamission released a complaint filed by nation.

David G. Ellison in April 2014. Ellison The opinion accused McMaster of violating campaign says a candidate McMaster donation laws by raising $51,850 from with debt from donors who had already contributed the an elective office maximum amount by law to his 2010 pri- “may accept conmary race for S.C. governor. He lost that tributions to retire the debt, even if the race to Gov. Nikki Haley. candidate accepts contributions for “His campaign created a phantom gen- another elective office or the same eleceral election in which he was not partici- tive office during a subsequent election pating and solicited additional donations cycle.” The opinion notes that contribufor that election in an effort to circumvent tions to retire debt must be within the the law restricting contributions even limit applicable to the last election and though he had only one election cycle in must be reported.

2010,” Ellison said in the complaint.

Jeff Taillon, spokesman for McMasHe went on to say that McMaster ter, said the timing of the complaint, just should have to pay before the four-year back the excessive statute of limitations contributions as well is an “appar“His campaign created a expired, as any other penalent effort to embarties that may be “just phantom general election rass Mr. McMaster.” and proper.”

“The question Ellison based his raised is a technical in which he was not complaint on finanone: Should a candicial disclosure forms participating and solicited date for public office and an analysis of be allowed to set election finance filup a separate debt additional donations.” ings by The State retirement account David G. Ellison newspaper in April. after the campaign is The State reportover? In good faith, ed that McMaster’s Mr. McMaster and campaign officials his campaign team said he would refund the $51,850 in con- relied on an opinion by the State Ethics tributions if they exceeded legal limits.

Commission issued in 1992, which held The commission responded to Elli- that debt retirement donations be treated son’s complaint by charging McMaster separately,” Taillon said in a statement. with 51 counts of acceptance of excessive “We are working with the State Ethics contributions, totaling $69,200. State law Commission towards a favorable resolusays a candidate may not solicit or accept tion.” a contribution that exceeds $3,500 within A formal hearing will take place at 3 an election cycle (Section 8-13-1314). p.m. March 18 at the Ethics CommisKarl S. Bowers Jr. of Columbia-based sion office in Columbia. The commisBowers Law Office LLC is representing sion’s notice of hearing says it will be held McMaster. He sent a letter to the com- in executive session unless McMaster mission asking for the complaint to be requests an open hearing. dismissed because McMaster “relied in McMaster, a Republican, served as good faith on a prior opinion from the S.C. attorney general from 2002 until commission regarding the same issue.”

2011, joined the S.C. State Ports AuthorMcMaster finished third in the guber- ity in 2011 and was appointed to the S.C. natorial primary in 2010 and used contri- Commission on Ethics Reform in 2012. butions toward his campaign to pay off He replaced John Yancey McGill as debt, according to Bowers. lieutenant governor on Jan. 14. The posi“Some donors who made contribu- tion’s responsibilities include serving as tions for debt retirement after the election president of the S.C. Senate and overseehad also made contributions to his cam- ing the state’s Office on Aging. paign before the primary election,” Bowers wrote. “No donor made a contribu- Reach staff writer Ashley Heffernan at tion of over $3,500 to either the primary 843-849-3144 or @AshleyBHeff on Twitter.

S

aheffernan@scbiznews.com

cr bj

Campaign finance violation charges against Henry McMaster Count Contributor

Amount

1

ACE Cash Express

$1,000

2

Black Sheep Farms

$1,000

3

Cash America

$1,000

4

Chapman Harter and Groves

5

Chesapeake Enterprises

$3,500

6

Dick Smith Motors Inc.

$1,000

7

Hood Law Firm

8

Kentwool

$2,000

9

McCall Farms Inc.

$1,000

10

McEntire Produce Inc.

11

McWhirter, Bellinger & Associates

$1,000

12

Norfolk Southern Corp.

$2,000

13

Southern Wine and Spirits of S.C.

$250

14

Sumter Medical Supply

$250

15

Troutman Sanders LLP

$250

16

US Land and Timber Inc.

17

Betty Willoughby

$2,000

18

Bill Cassels

$2,000

19

Bill McMaster

$3,500

20

Burnet R. Maybank III

21

Dennison Royal

$1,500

22

Douglas Ashley

$2,000

23

Faye Simmons

$2,500

24

Gayle Averyt

$1,000

25

Henry Greer

$1,000

26

Henry Holliday III

$1,000

27

Henry C. Scott

$1,000

28

J. Moultrie Truluck

29

Jane F. Hipp

$3,500

30

Jim Hudson

$1,000

31

John Barton

32

John McIntosh

$2,500

33

John Rainey

$1,000

34

Joseph M. Pearson

35

Larry Wilson

$1,000

36

Lou Kennedy

$1,000

37

Mary Buyck Jr.

$1,100

38

Max Rice Horton

$100

39

Mitch Willoughby

$3,500

40

Rigdon Boykin

$1,000

41

Robert Doran

$3,500

42

Robert Stith

$500

43

Sam Clarke

$1,000

44

Sandra Senn

45

Thomas Brittain

46

Tracy Doran

$1,500

47

William Craver III

$3,500

48

William Halligan

$1,000

49

William Simmons

$2,500

50

William H. Best

$3,500

51

William W. Jones

$250

$500

$500

$250

$250

$500

$500

$500

$500 $250

$750

Source: State Ethics Commission, Notice of Hearing

Jan. 26 - Feb. 8, 2015

Haley releases 2016 executive budget

By Ashley Heffernan aheffernan@scbiznews.com

W

ith a focus on education, social services, safe communities and health services, Gov. Nikki Haley released her fiscal year 2016 executive budget in early January.

The proposed budget includes nearly $6.9 billion in spending, which is up from almost $6.7 billion in fiscal 2015.

“One of the things that was important from year one and continues to be important is staying within the spending cap. The spending cap was at 3.39% this year; we are at 3.33%,” Haley said. “That just says that we understand that South Carolinians live within their means, and it’s very important in this administration that we live within our means.”

She added that all nonrecurring money in her budget went to either reserve accounts or to pay down debt.

“If you look at where we were in 2010 vs. where we are now, we’re now paying less than half to service our debt than what we were in 2010. That’s pretty miraculous,” Haley said. “From $298 million now to $133 million a year to service the debt is something that we thought was important four years ago, and I’m proud to say that it’s really taken some progress and done extremely well.”

Education

Haley’s budget proposes providing $6.4 million to expand the reading coach program in elementary schools with more than 30 students who don’t meet reading assessment standards, and giving up to $3.5 million in professional development funding to train and certify reading coaches. An additional $1 million would go to the state’s Read to Succeed office, which provides professional development, program coordination and technical assistance to districts, the budget says.

The budget also emphasizes subsidized tuition for students who attend any public college or university in the state in exchange for at least two years of teaching in certain districts, as well as student-loan repayment exchanges. Haley proposed salary supplements for teachers in rural districts and two tuition-free years toward a graduate degree in exchange for a twoyear teaching commitment.

Nearly $30 million in the governor’s budget would be distributed to school

“One of the things that was important from year one and continues to be important is staying within the spending cap.”

Gov. Nikki Haley districts for technology initiatives, and almost $12 million would fully fund the Public Charter District Supplement, the budget says.

Molly Spearman, superintendent-elect for education, said she looks forward to working with Haley over the next four years.

“Last year, when Gov. Haley celebrated historic education reform with teachers, students, lawmakers and business leaders, she promised that it was just the beginning — and we couldn’t be more excited that the governor’s executive budget invests even more in South Carolina’s schools, especially in the recruitment and retention of teachers in rural districts,” Spearman said in a statement.

Haley also proposed increasing the base student cost from $2,120 to $2,200.

“We have increased the base student cost 35% over where it was in 2010,” she said. “We’re going to continue to do that; that’s a commitment that we think we owe to the children of this state, and we also want to give guidance to the Legislature as they deal with education costs.”

Social services

Haley’s budget proposes hiring new caseworkers and human services specialists, enhancing their training and dedicating staff to coordinate with law enforcement. All human services professionals would also receive a 10% basepay increase to “aid retention,” according to the budget.

About $350,000 in recurring funds would be used to improve the child and

adult protective services system and nearly $300,000 would fund development of a risk analysis tool for human services workers to evaluate and classify reports of child abuse and neglect.

Additionally, the budget proposes $400,000 for Adult Protective Services at the Department of Social Services, funding to restore two ombudsmen in the Lieutenant Governor’s Office of Aging and money for the Vulnerable Adult Guardian Ad Litem program.

Safe communities

The governor’s budget suggests $2.2 million for the guardian ad litem program, a volunteer child advocacy group.

For law enforcement, Haley proposed adding 44 probation and parole agents to reduce caseloads, $1.6 million for additional prosecuting capacity, 11 State Law Enforcement Division agents and four attorneys in the attorney general’s office. She also added $4 million in recurring support to expand mental illness treatment within the Department of Corrections.

Health services

To improve health services funding, Haley proposed spending $30 million from agency reserves and $13 million to replace about half of the Department of Health and Human Services’ lost revenue as a result of decreased funding from tobacco sources.

The governor also suggested spending $3.4 million for the Department of Mental Health to “end its dependency on prior-year Medicaid cost settlements for operating revenue” and $3 million for cost-of-living adjustments within the Department of Disabilities and Special Needs.

Additionally, the budget proposes fully funding ($3.2 million) a program in the Department of Mental Health that treats patients who are involved in the criminal justice system through forensic examination. Haley would also fund programs in the department that center on emergency department tele-psychiatry ($500,000), school-based mental health services ($500,000) and community supportive housing ($400,000).

She also suggested $4.8 million for autism spectrum disorder services. cr bj

Reach staff writer Ashley Heffernan at 843-849-3144 or @AshleyBHeff on Twitter.

www.charlestonbusiness.com 15

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Jan. 26 - Feb. 8, 2015

In Focus:

List Hospitals, Page 22 Bonus List Urgent Care Centers, Page 23

Health Care

MUSC disputes Medicare program methodology

By Ashley Heffernan

T

aheffernan@scbiznews.com

hirteen S.C. hospitals, including the Medical University of South Carolina’s downtown Charleston hospital, were penalized by Medicare for having high rates of hospital-acquired conditions.

But advocates for MUSC Medical Center say the 1% penalty isn’t fair because academic facilities see a large number of sicker patients with more complicated conditions compared with small and rural hospitals.

“We actually like the program. Medicare moving to paying for quality, we think is the right thing,” said Dr. Patrick Cawley, CEO of MUSC Medical Center.

“What we disagree with is they did not adjust the data for the type of patients we see. Sicker patients use more tubes, they have more complications. Medicare didn’t adjust their data to account for that.”

This is the first year of Medicare’s Hospital-Acquired Condition Reduction Program, which was created under the Affordable Care Act. Penalizing more than 700 hospitals around the country will save the federal Medicare program about $30 million annually, according to a news release.

“These savings are the result of not providing additional Medicare payment to treatment of certain reasonably preventable conditions when those conditions are acquired after the beneficiary has been admitted to the hospital,” a statement from the Centers for Medicare and Medicaid Services said.

The hospital-acquired conditions measured include bloodstream infections caused by central lines put into the vein and urinary tract infections caused by catheters put in the bladder.

The program also looked at patient safety indicators at each hospital.

For the past five years, Cawley said MUSC has been actively working to reduce the amount of time central lines and catheters stay inside patients.

“The quicker you get the tube out, the less likely you are to see an infection. That’s probably the biggest thing to know,” Cawley said. “We’re asking our doctors and nurses to evaluate the patient every day to see if it should stay in. By doing that, they’re more likely to take it out earlier. Even four hours earlier than you would have taken it out in the past lowers the infection rate.”

The S.C. Hospital Association has been working with hospitals across

Scores for hospital-acquired conditions at Lowcountry medical facilities Medicare ranked hospitals in three areas: serious complications, central line-associated bloodstream infections (CLABSI scores) and catheter-associated urinary tract infections

Insurance on the job

South Carolina ranks 34th in a Kaiser Family Foundation report about the availability of employer-sponsored health insurance, in the lower half but still one of the higher availability states in the Southeast. Employer-sponsored coverage rates in selected states:

(CAUTI scores) to determine a total hospital-acquired conditions score. Ranked from one

State Percentage

to 10, with 10 being worst, hospitals with a total score of seven or higher were penalized.

Virginia 62%

Hospital

Serious complications CLABSI CAUTI Total score score score score

U.S. 57% South Carolina 56% Georgia 55%

Bon Secours St. Francis Hospital

4

7

10

6.925

Tennessee 53%

East Cooper Medical Center

4

8

5

5.625

Florida 50%

Roper St. Francis Mount Pleasant Hospital

3

N/A

N/A

3.000

10

5

10

8.375

North Carolina

Roper Hospital

1

8

10

6.200

Trident Medical Center

4

5

9

5.950

MUSC Medical Center

S.C. hospitals penalized by Medicare Hospital Total score Aiken Regional Medical Center...........8.050 Beaufort County Memorial Hospital....7.025 Conway Medical Center......................7.275 Kershaw Health..................................8.625 McLeod Medical Center – Dillon.........7.200 MUSC Medical Center.........................8.375

Novant Health Gaffney Med. Center....8.250 Oconee Medical Center......................7.700 Palmetto Health Baptist......................9.000 Palmetto Health Baptist Easley...........7.400 Palmetto Health Richland...................8.675 Spartanburg Regional Med. Center.....8.325 TRMC of Orangeburg and Calhoun.....7.200 Source: Centers for Medicare & Medicaid Services

50%

What employers pay

Offering employer-sponsored insurance typically means employers and employees share the cost of annual premiums.

Here’s a breakdown of average costs for insurance on both sides, just for the employee, not including dependents.

State Employer Employee North Carolina

$4,637

U.S.

$4,266 $1,118

Virginia

$4,050 $1,259

Georgia

$4,041 $1,118

Tennessee

$4,026 $1,041

Florida

$4,010 $1,169

South Carolina $3,949

$995

$1,149

Fewer men have primary doc In South Carolina, more men than women report not having a primary care physician, according to Kaiser Foundation data, which track national averages. Data for selected states: the state to help manage patients with chronic illnesses. The Preventing Avoidable Readmission Together program is produced in partnership with BlueCross BlueShield of South Carolina and Health Sciences South Carolina.

Dr. Rick Foster, senior vice president of quality and patient safety at the S.C. Hospital Association, said the Part program digs deeper into readmission rates from Medicare, Medicaid and other commercial insurance patient populations.

Hospital-acquired conditions often cause patients to be readmitted to the hospital, so the two are linked.

“If you look at the data from all the hospitals across the state, we’re doing

better than the national average,” Foster said.

In December 2013, the hospital readmission rate for Medicare patients in S.C. was slightly more than 16%; the national average for the same time period was nearly 17.5%, according to data released in the Integrating Care for Populations & Communities quarterly scorecard.

“We support more transparency, and we do acknowledge the value in grading hospitals based on performance, but there needs to be a different way,” Foster said. “We don’t want large, academic medical centers to be unfairly penalized See MUSC, Page 18

➤

State

Men Women

Florida

32.2% 21.6%

Georgia

33.8% 22.9%

North Carolina

34.6%

19.0%

South Carolina

30.3%

18.0%

Tennessee

27.8% 17.9%

U.S.

29.8% 18.0%

Virginia

29.9% 17.5%

Source: The Kaiser Family Foundation, 2013

Next Issue’s Focus:

Residential Real Estate

18

www.charlestonbusiness.com

MUSC, continued from Page 17

IN FOCUS: Health Care

Jan. 26 - Feb. 8, 2015

➤

because they’re doing what we’re asking them do: treat the very sick.”

He said MUSC is one example of a “nationwide phenomenon” that makes it difficult for the general population to know whether a hospital really does have a high rate of complications and readmissions or whether the scores are skewed because of complex patient treatments.

The Centers for Medicare and Medicaid Services “doesn’t take into account any social determinants. Clinical factors do have an impact; but sometimes just as important is where the patient lives, their home conditions, do they have good nutrition options, do they have a support system or do they live alone?” Foster said.

“As an example, a chronic lung disease patient who is living in an environment where others are smoking, if he moves to a place with no smokers, it reduces his risk for readmission to the hospital.”

The 1% penalty was not a complete surprise to leaders at MUSC Medical Center. Medicare sent the data to MUSC, and all other hospitals receiving Medicare benefits, for review before it was released publicly in December. Hospital officials were allowed to request recalculations if they felt their data weren’t accurate. Cawley said MUSC didn’t ask for any changes.

“That doesn’t mean we knew how they

“We actually like the program. Medicare moving to paying for quality, we think is the right thing. What we disagree with is they did not adjust the data for the type of patients we see.”

Dr. Patrick Cawley CEO, MUSC Medical Center Dr. Patrick Cawley. (Photo/MUSC)

ranked things. It’s just simply your data; you don’t know where you’re going to end up,” Cawley said.

Executives at MUSC suspected a penalty was coming, though, and made adjustments to the budget in advance.

“Most years, Medicare gives an increased amount over the previous year, kind of like a cost-of-living increase. We won’t get our full 1% adjustment that we typically do,” he said. “It’s hard to determine exactly how much that 1% will be worth, because it depends on how many

Medicare patients we end up seeing. It depends on what happens at the end of the fiscal year.”

Cawley said he doesn’t expect to encounter any major changes in the budget, and the penalty will not cause any employees to be laid off. He hopes, though, that Medicare will consider adjusting the data for large hospitals next year.

The Centers for Medicare & Medicaid Services acknowledged that the Hospital-Acquired Condition Reduction

Program may need to be updated in the future.

“CMS is currently evaluating several aspects of the HAC Reduction Program, including identification of new, potentially suitable measures to fill HAC performance gaps and examination of the scoring methodology to determine if modifications are needed,” a statement from the program said. cr bj

Reach staff writer Ashley Heffernan at 843-849-3144 or @AshleyBHeff on Twitter.

Jan. 26 - Feb. 8, 2015

IN FOCUS: Health Care

www.charlestonbusiness.com 19

MUSC online nursing program No. 1 in U.S.; USC nabs 3rd place

By Ashley Heffernan

T

“This is a tremendous achievement and a reflection of the dedication of our faculty and staff to make our educational programs the best in the country.”

aheffernan@scbiznews.com

he Medical University of South Carolina’s online graduate nursing program was recently named No. 1 in the country by U.S. News & World Report.

St. Xavier University in Chicago claimed the second position, and the University of South Carolina’s online graduate nursing program tied for the No. 3 spot with Johns Hopkins University in Baltimore.

MUSC’s program scored a perfect 100 for faculty credentials and training and earned a 57 for student services and technology, an 89 for student engagement and a 94 for admissions selectivity.

Gail Stuart, dean of MUSC’s College of Nursing, said the top ranking is a high honor for the university and the state of South Carolina.

“This is a tremendous achievement and a reflection of the dedication of our faculty and staff to make our educational programs the best in the country,” Stuart said in a statement.

U.S. News & World Report collected data from 133 nursing schools with online programs between July and September 2014.

Georgette Smith, associate dean for academics at MUSC, said the online nursing program is rooted in role modeling of real-world nursing experiences.

“We want our graduates to become independent, advanced-practice nurses who practice to their full potential and also lead change in health care delivery.

We have developed an innovative and rigorous asynchronous online curriculum that builds critical thinking through self-reflection throughout the program,” Smith said in a statement.

MUSC’s College of Nursing offers online programs for the Master of Science in Nursing degree, the Doctor of Nursing Practice and the doctorate in nursing. More than 300 students

Gail Stuart dean, MUSC’s College of Nursing

MUSC leaders held a ribbon-cutting event on the steps of the College of Nursing building last month. The facility underwent a two-year, $10 million renovation. (Photo/Ashley Heffernan)

were enrolled in the three programs in the fall.

The college also began offering an online Bachelor of Science in nursing degree in the fall as a result of an “increasing demand from hospitals to hire nurses with a higher level of education,” according to a news release.

USC’s program, which jumped from the No. 16 spot, received an 87 for faculty credentials and training, a 100 for student services and technology, an 82 for student engagement and a 70 for admissions selectivity.

Jeannette Andrews, dean of USC’s College of Nursing, said the ranking “underscores our momentum and commitment to quality education as we accelerate our national prominence.”

“We have a very purposeful and strategic agenda that our students, faculty,

staff, alumni and clinical partners are all dedicated to achieving,” Andrews said in a statement.

New nursing building

In December, faculty and staff at the MUSC College of Nursing returned to a newly renovated building in the heart of the downtown Charleston campus.

For two years, the 1955-built nursing facility was under construction. The 44,000-square-foot building was dismantled, leaving just the exterior shell, and new walls, windows, flooring, equipment, furniture and elevators were added. The renovation cost roughly $10 million.

A simulation center used by students in various MUSC colleges encompasses the bottom floor.

The building’s remaining four floors house the College of Nursing, which now

includes an archives area and lobby on the second floor.

The lobby holds a commissioned painting by Lowcountry artist John C. Doyle and a five-piece bronze sculpture

by Charles Pate depicting profiles of nurses.

The third floor includes faculty and administrative offices, a student lounge and a learning lab. The fourth and fifth floors hold more offices, research suites and dissertation rooms.

“It was important to us to keep the feel of the archives and the history of the building throughout the entire facility,” said Lynn Shull, assistant dean of the college. “It’s about integrating the past and future of medicine.”

MUSC President Dr. David Cole said that it’s essential for health care workers to be connected and that nurses are the backbone for that.

“Although buildings have doors and roofs and exits, this is not a limiting thing,” Cole said. “The nurses here may be the start point but not the endpoint.

We reach way beyond what this physical domain provides, both through education, the impact of the people we train, the reach of the reputation and, if you will, the product that is present.” cr bj

Reach staff writer Ashley Heffernan at 843-849-3144 or @AshleyBHeff on Twitter.

20

www.charlestonbusiness.com

IN FOCUS: Health Care

Jan. 26 - Feb. 8, 2015

Palmetto Primary Care Physicians hires new CEO

By Ashley Heffernan aheffernan@scbiznews.com

A

bout two weeks after losing its CEO, Palmetto Primary Care Physicians announced Jeff Lehrich’s replacement.

Dr. Richard Lauve, most recently the chief medical officer for Trident Health in Charleston, was appointed CEO by the physicians group’s board of directors, according to a news release. Lauve will oversee and support the group’s strategic and operational activities.

“We are very proud of our accomplishments as an independent health care organization,” Dr. Brantley Arnau, president of the board, said in a statement.

“There is no one better suited than Dr. Lauve to guide us in this next phase of our journey. He brings the knowledge and expertise, both as a medical officer and business leader, needed to expand on the strong foundation PPCP has built.”

Lauve, 61, is a graduate of Louisiana State University’s School of Medicine and Tulane University’s Freeman School of Business, the news release said. He served in the National Health Service Corps and worked as assistant to the chairman of

medicine for LSU’s School of Medicine and as medical director of medicine services for Charity Hospital in New Orleans. He was vice president of clinical affairs for the Voluntary Hospital Association in Dallas and medical director for the association’s Gulf States regional office in Baton Rouge before joining Trident Health.

“Palmetto Primary Care Physicians has proven itself a leader within the health care community, and I am honored to have the opportunity to lead the group during this important time of health care transformation,” Lauve said in a statement. “Our physicians, combined with the talent and passion of the PPCP team, provide us with a unique opportunity to shape the future of health care. I look forward to applying the knowledge I’ve acquired over the years to further engage our physicians and staff and to support and encourage their continued efforts in serving our patients.”

Lauve succeeds Lehrich, who became CEO of Palmetto Primary Care Physicians in July 2013. He resigned in late November. cr bj

Reach staff writer Ashley Heffernan at 843-849-3144 or @AshleyBHeff on Twitter.

Former S.C. insurance chief Kitzman picked to run DHEC

T

Staff Report

he S.C. Board of Health and Environmental Control named Eleanor Kitzman director of DHEC, replacing Catherine Templeton who resigned.

Kitzman, whose appointment is subject to approval by Gov. Nikki Haley and the state Senate, is a lawyer and businesswoman who previously led the Budget and Control Board and S.C. Department of Insurance, and ran for lieutenant governor.

Founder of Driver’s Choice insurance in South Carolina, Kitzman left as director of the Budget and Control Board in August 2011 to run the Department of Insurance in her home state of Texas.

She left the job May 2013, after her nomination by Gov. Rick Perry failed to win confirmation of Texas senators. State legislators, consumer groups and the Texas Medical Association all charged Kitzman with being biased toward insurance companies.

In December 2013, Kitzman was named vice president of Starr Insurance

Holdings Inc. in New York.

Kitzman ran the S.C. Department of Insurance from 2005 to 2007, resigning after a disagreement with then-Gov. Mark Sanford over coastal insurance.

Kitzman later ran for lieutenant governor in 2010, but lost in the Republican primary.

The DHEC board also named Marshall Taylor, the agency’s general counsel, to serve as acting director.

Templeton resigned as director after fulfilling a four-year commitment to service. She was hailed for work in cutting regulations and budgets and streamlining the operations of agencies she ran in an effort to serve the public. During her time at the agency, Templeton cut the budget by 25%.

However, Templeton also found herself embroiled in a range of controversies, including battling the National Labor Relations Board over a union challenging Boeing Co.’s decision to build its 787 Dreamliner final assembly plant in North Charleston and trying to end state permitting of hospital facilities. cr bj

IN FOCUS: Health Care

Jan. 26 - Feb. 8, 2015

Nason Medical Center, which operates five facilities in the Charleston area, must pay more than $1 million and remove all imaging equipment except X-ray machines.

(Photo/Ashley Heffernan)

Nason Medical Center settles health care fraud lawsuit

By Ashley Heffernan

T

aheffernan@scbiznews.com

he owners of Charleston-based Nason Medical Center settled with the U.S. Attorney’s Office for the District of South Carolina for more than $1 million over claims of health care fraud.

Former employees filed False Claims Act lawsuits against the company, founded by Dr. Barron S. Nason and Robert T. Hamilton. The lawsuits triggered an investigation, according to U.S. Attorney Bill Nettles, that discovered Nason Medical had submitted numerous false claims to Medicare, Medicaid and TRICARE. Nason and Hamilton did not return requests for comment about the investigation, allegations or settlement agreement.

Nettles said the claims were submitted for services provided by physicians when the services were actually provided by physician assistants.

“Both Medicare and TRICARE pay 85% of the physician fee schedules for services provided by mid-level providers like physician assistants,” Nettles’ office said in a news release.

The attorney also said Nason Medical Center submitted claims for laboratory tests and CT scans that were not medically indicated as well as radiological services provided by a technician who did not hold a current S.C. license. Additionally, the company was found to have submitted claims for a more expensive tetanus vaccine when a “considerably less expensive” version was actually used.

“Health care fraud is a very high priority in this office. We have shifted our office resources by trebling the number of attorneys dedicated to address civil fraud cases,” Nettles said in a statement. “This case is particularly egregious because it involves allegations of profiting by exposing patients to unnecessary radiation in the CT scans.”

Derrick Jackson, special agent in charge at the U.S. Department of Health and Human Services, Office of Inspector General, said it’s a “privilege, not a right”

to be in a federal health care program, such as Medicare or Medicaid.

“When health care providers order medically unnecessary procedures such as CT scans and submit other improper claims just to boost profits, they threaten both the health of their patients and the financial integrity of the Medicare and Medicaid programs,” Jackson said in a statement. “In an effort to ensure Nason Medical’s egregious billing history is not its future, the company agreed to a rigorous five-year Corporate Integrity Agreement we crafted to hold them accountable.”

The agreement requires Nason Medical Center to remove all its imaging equipment, except for X-ray machines, and to no longer advertise itself as providing any medical services for emergencies. The company will also have to remove its emergency signs and hire an independent monitor chosen by the Office of Inspector General.

The False Claims Act lawsuits allow the government to recover damages and penalties of three times the actual damages and up to $11,000 per false claim, the news release said. Nason Medical Center will pay damages and penalties totaling $1,021,778.26.

The two employees who filed the suit — the news release referred to them as “whistleblowers” — will collectively receive 18% of the settlement, or nearly $184,000, plus attorney fees.

One of the employees said he was terminated from Nason Medical Center when he attempted to stop the fraudulent billing. Nettles’ office said that employee is also entitled to recover his personal damages if that is true.

Nason Medical Center, which opened in January 2005, now operates five facilities in the Charleston region: 1101 Bowman Road, Mount Pleasant; 319 Folly Road, James Island; 4278 Ladson Road, Summerville; 8901 University Blvd., North Charleston; and 5133 Rivers Ave., North Charleston. cr bj

Reach staff writer Ashley Heffernan at 843-849-3144 or @AshleyBHeff on Twitter.

www.charlestonbusiness.com 21

22

www.charlestonbusiness.com

IN FOCUS: Health Care

Jan. 26 - Feb. 8, 2015

Hospitals

Ranked by No. of Licensed Beds Facility MUSC Medical Center 169 Ashley Ave. Charleston, SC 29425 Roper Hospital 316 Calhoun St. Charleston, SC 29401 Trident Health 9330 Medical Plaza Drive North Charleston, SC 29406 Bon Secours St. Francis Hospital 2095 Henry Tecklenburg Blvd.

Charleston, SC 29414 East Cooper Medical Center 2000 Hospital Drive Mount Pleasant, SC 29464 Ralph H. Johnson VA Medical Center 109 Bee St. Charleston, SC 29401 Summerville Medical Center 295 Midland Parkway Summerville, SC 29485 Roper St. Francis Mount Pleasant Hospital 3500 U.S. Highway 17 N. Mount Pleasant, SC 29466 Vibra Hospital of Charleston 1200 Hospital Drive Mount Pleasant, SC 29464 Roper Rehabilitation Hospital 316 Calhoun St. Charleston, SC 29401 HealthSouth Rehabilitation Hospital of Charleston 9181 Medcom St. Charleston, SC 29406 Moncks Corner Medical Center 401 N. Live Oak Drive Moncks Corner, SC 29461 Roper Hospital - Berkeley 730 Stony Landing Road Moncks Corner, SC 29461 Cognitive & Behavioral Health Center of Charleston 29 Leinbach Drive Charleston, SC 29407

Phone / Website Email

Licensed Beds / 2013 Admissions

Active Staff Physicians / Registered Nurses

Administrator(s) / Year Founded

843-792-3232 www.muschealth.com 843-724-2901 www.rsfh.com/roper 843-847-4100 www.tridenthealthsystem.com 843-402-1000 www.rsfh.com 843-881-0100 www.eastcoopermedctr.com 843-577-5011 www.charleston.va.gov 843-832-5000 www.tridenthealthsystem.com 843-606-7000 www.rsfh.com 843-375-4000 www.vhcharleston.com 843-724-2842 www.rsfh.com beth.weiser@rsfh.com 843-820-7777 www.healthsouthcharleston.com 843-761-8721 www.tridenthealthsystem.com 843-899-7700 www.rsfh.com 843-501-7001 cbhealthcenters.com -

709 35,767

921 2,593

David J. Cole 1824

368 13,157

447 733

Matthew J. Severance, David F. Dunlap 1829

296 21,028

556 765

Todd Gallati 1975

204 8,872

343 428

Allen Carroll, David F. Dunlap 1882

132 5,046

431 216

Jason Alexander 1986

103 4,288

210 430

Scott R. Isaacks 1966

94 5,733

556 765

Lisa Valentine 1989

85 1,522

247 83

David F. Dunlap, John Sullivan 2010

59 -

60 63

Darrell Jones 2004

52 1,155

5 55

David F. Dunlap, Matthew J. Severance 1992

49 -

2 35

Troy Powell 1994

0 0

26 12

Todd Gallati 1986

0 0

29 19

David F. Dunlap, Brenda R. Myers 1992

-

-

Cindy Carter 2014

View this list online at www.scbiznews.com/data. Although every effort is made to ensure accuracy, errors sometimes occur. Email additions or corrections to lists@scbiznews.com or go to www.tinyurl.com/joinourlists.

Researched by Business Journal staff

IN FOCUS: Health Care

Jan. 26 - Feb. 8, 2015

www.charlestonbusiness.com 23

Urgent Care Centers Listed Alphabetically

A Doctor on Call P.A. www.adoctoroncall.com admin@adoctoroncall.com 843-886-4402 1202-A Palm Blvd.

Isle of Palms, SC 29451 Hours: 9 a.m.-5 p.m. Mon.-Fri.; Sat. by appointment Family Medicine, Botox, Juvederm Filler, Urgent Care, Immigration Physicals, Laser Hair Removal, PCA Chemical Peels, Weight Loss No. of Physicians: 1 Administrator(s): Kathy R. Malaney Doctors Care Charleston West www.DoctorsCare.com jill.armbruster@doctorscare.com 843-402-6834 3424 Shelby Ray Court Charleston, SC 29414 Hours: Mon.-Fri. 8 a.m.-8 p.m.; Sat.-Sun. 9 a.m.-5 p.m.

Urgent care, family care. Onsite lab and X-rays; foreign travel medicine; sports and camp physicals; cold, flu and allergy testing and care; sprains, cuts, burns and other minor injuries. Non-surgical knee pain treatment. DOT physicals and employer health services. Open late and on weekend, walk-ins welcome.

No. of Physicians: 25 Administrator(s): Thomas Gibbons MD Curtis Franke Regina Sullivan Doctors Care Dorchester Road www.DoctorsCare.com jill.armbruster@doctorscare.com 843-871-7900 10160 Dorchester Road Summerville, SC 29485 Hours: Mon.-Fri. 8 a.m.-8 p.m.; Sat.-Sun. 9 a.m.-5 p.m.

Urgent, family and occupational care. Onsite lab and X-rays, walk-ins welcome. Foreign travel medicine; sports and camp physicals; cold, flu and allergy testing and care; sprains, cuts, burns and other minor injuries. Non-surgical knee pain treatment.

DOT physicals and employer health services. Open late and on weekends.

No. of Physicians: 25 Administrator(s): Thomas Gibbons MD Curtis Franke Jennifer Champion Doctors Care Ivy Hall www.DoctorsCare.com jill.armbruster@doctorscare.com 843-884-6424 3074 U.S. Highway 17 North Mount Pleasant, SC 29466 Hours: Mon.-Fri. 8 a.m.-8 p.m.; Sat.-Sun. 9 a.m.-5 p.m.

Urgent care, family care. Onsite lab and X-rays; foreign travel medicine; sports and camp physicals; cold, flu and allergy testing and care; sprains, cuts, burns and other minor injuries. Non-surgical knee pain treatment. DOT physicals and employer health services. Open late and on weekend, walk-ins welcome.

No. of Physicians: 25 Administrator(s): Thomas Gibbons MD Curtis Franke Regina Sullivan

Doctors Care James Island www.doctorscare.com Jill.Armbruster@doctorscare.com 843-762-2360 743 Folly Road Charleston, SC 29412 Hours: Mon.-Fri. 8 a.m.-8 p.m.; Sat.-Sun. 9 a.m.-5 p.m.

Urgent care, family care. Onsite lab and X-rays; foreign travel medicine; sports and camp physicals; cold, flu and allergy testing and care; sprains, cuts, burns and other minor injuries. Non-surgical knee pain treatment. DOT physicals and employer health services. Open late and on weekend, walk-ins welcome.

No. of Physicians: 25 Administrator(s): Thomas Gibbons MD Curtis Franke Regina Sullivan Doctors Care Moncks Corner www.doctorscare.com Jill.Armbruster@doctorscare.com 843-899-3870 459 U.S. Highway 52 N. Moncks Corner, SC 29461 Hours: Mon.-Fri. 8 a.m.-8 p.m.; Sat.-Sun. 9 a.m.-5 p.m.

Urgent care, family care. Onsite lab and X-rays; foreign travel medicine; sports and camp physicals; cold, flu and allergy testing and care; sprains, cuts, burns and other minor injuries. Non-surgical knee pain treatment. DOT physicals and employer health services. Open late and on weekend, walk-ins welcome.

No. of Physicians: 25 Administrator(s): Thomas Gibbons MD Curtis Franke Regina Sullivan Doctors Care Mount Pleasant www.DoctorsCare.com Jill.Armbruster@doctorscare.com 843-881-0815 631 Johnnie Dodds Blvd.

Mount Pleasant, SC 29464 Hours: Mon.-Fri. 8 a.m.-8 p.m.; Sat.-Sun. 9 a.m.-5 p.m.

Urgent care, family care. Onsite lab and X-rays; foreign travel medicine; sports and camp physicals; cold, flu and allergy testing and care; sprains, cuts, burns and other minor injuries. Non-surgical knee pain treatment. DOT physicals and employer health services. Open late and on weekend, walk-ins welcome.

No. of Physicians: 2 Administrator(s): Thomas Gibbons MD Curtis Franke Doctors Care Northwoods www.DoctorsCare.com jill.armbruster@doctorscare.com 843-572-7000 8091 Rivers Ave. North Charleston, SC 29406 Hours: Mon.-Fri. 8 a.m.-8 p.m.; Sat.-Sun. 8 a.m.-5 p.m.

Urgent care, family care. Onsite lab and X-rays; foreign travel medicine; sports and camp physicals; cold, flu and allergy testing and care; sprains, cuts, burns and other minor injuries. Non-surgical knee pain treatment. DOT physicals and employer health services. Open late and on weekend, walk-ins welcome.

No. of Physicians: 25 Administrator(s): Thomas Gibbons MD Curtis Franke

Doctors Care Summerville www.DoctorsCare.com Jill.Armbruster@doctorscare.com 843-871-3277 410 N. Main St. Summerville, SC 29483 Hours: Mon.-Fri. 8 a.m.-8 p.m.; Sat.-Sun. 9 a.m.-5 p.m.

Urgent care, family care. Onsite lab and X-rays; foreign travel medicine; sports and camp physicals; cold, flu and allergy testing and care; sprains, cuts, burns and other minor injuries. Non-surgical knee pain treatment. DOT physicals and employer health services. Open late and on weekend, walk-ins welcome.

No. of Physicians: 25 Administrator(s): Thomas Gibbons MD Curtis Franke Doctors Care West Ashley www.DoctorsCare.com jill.armbruster@doctorscare.com 843-556-5585 1851 Sam Rittenberg Blvd.

Charleston, SC 29407 Hours: Mon.-Fri. 8 a.m.-8 p.m.; Sat.-Sun. 9 a.m.-5 p.m.

Urgent care, family care. Onsite lab and X-rays; foreign travel medicine; sports and camp physicals; cold, flu and allergy testing and care; sprains, cuts, burns and other minor injuries. Non-surgical knee pain treatment. DOT physicals and employer health services. Open late and on weekend, walk-ins welcome.

No. of Physicians: 25 Administrator(s): Thomas Gibbons MD Curtis Franke Regina Sullivan MedCare Urgent Care Center North Charleston www.medcareurgentcare.com info@medcareurgentcare.com 843-552-3629 8720 Dorchester Road North Charleston, SC 29420 Hours: Mon.-Sun. 9 a.m.-9 p.m.

Walk-in treatment for injury and illness; coughs, colds, fevers, rashes, allergic reactions, abdominal pain, lacerations, sprains, fractures workers’ compensation injuries; on-site lab, digital X-ray, CT scans, EKGs, IV fluids, immunizations and vaccinations; annual physicals, sports physicals No. of Physicians: 3 Administrator(s): Radwan Hallaba MD MedCare Urgent Care Center - West Ashley www.medcareurgentcare.com info@medcareurgentcare.com 843-793-6093 1850 Sam Rittenberg Blvd.

Charleston, SC 29407 Hours: 9 a.m.-9 p.m. Mon.-Sun. Walk-in treatment for injury and illness; coughs, colds, fevers, rashes, allergic reactions, abdominal pain, lacerations, sprains, fractures workers’ compensation injuries; on-site lab, digital X-ray, CT scans, EKGs, IV fluids, immunizations and vaccinations; annual physicals, sports physicals No. of Physicians: 3 Administrator(s): Radwan Hallaba MD

Moncks Corner Medical Center www.tridenthealthsystem.com 843-761-8721 401 N. Live Oak Drive Moncks Corner, SC 29461 Hours: 24-hour emergency room Emergency, radiology, digital mammography, lab, primary care and specialty physicians, physical therapy, ultrasound, physical rehabilitation No. of Physicians: 12 Administrator(s): Todd Gallati Nason Medical Center www.nasonmedical.com 843-300-3500 319 Folly Road James Island, SC 29412 Hours: Mon.-Sun. 8 a.m.-8 p.m.

Ambulatory urgent care, X-rays, lab services, workers’ compensation.

No. of Physicians: 10 Administrator(s): Barron Nason Robert Hamilton Nason Medical Center www.nasonmedical.com 843-300-3500 4278 Ladson Road Ladson, SC 29456 Hours: Mon.-Sun. 8 a.m.-8 p.m.

Ambulatory urgent care, X-rays, lab services, workers’ compensation.

No. of Physicians: 10 Administrator(s): Barron Nason Robert Hamilton Nason Medical Center www.nasonmedical.com 843-300-3500 1101 Bowman Road Mount Pleasant, SC 29464 Hours: Mon.-Sun. 8 a.m.-8 p.m.

Ambulatory urgent care, X-rays, lab services, workers’ compensation.

No. of Physicians: 10 Administrator(s): Barron Nason Robert Hamilton Nason Medical Center www.nasonmedical.com 843-300-3500 5133 Rivers Ave. North Charleston, SC 29406 Hours: Mon.-Sun. 8 a.m.-8 p.m.

Ambulatory urgent care, X-rays, lab services, workers’ compensation.

No. of Physicians: 10 Administrator(s): Barron Nason Robert Hamilton Nason Medical Center www.nasonmedical.com 843-300-3500 8901 University Blvd.

North Charleston, SC 29406 Hours: Mon.-Sun. 8 a.m.-8 p.m.

Ambulatory urgent care, X-rays, lab services, workers’ compensation.

No. of Physicians: 10 Administrator(s): Barron Nason Robert Hamilton

24

www.charlestonbusiness.com

Jan. 26 - Feb. 8, 2015

At Work:

People, places and happenings across the Lowcountry

People in the News

Business Digest

LAW

Art Mag purchased

by Fisheye Media

graphy)

(Photo/Karson Photo

Renaissance Media LLC has sold Art Mag and its assets to Fisheye Media LLC. Art Mag was founded in 2007 as a semiannual print publication, but later expanded its Web presence and doubled its print schedule to four issues annually.

Art Mag founder Olivia Pool sold the publication to Fisheye Media, a partnership between Matt Mill, Elizabeth Bulwinkle (left) and Stacy Huggins. Bulwinkle and Huggins have long-standing involvement with Art Mag. Bulwinkle worked with Art Mag since 2010 and serves as its creative director.

Huggins worked with Art Mag since 2010 and serves as editor. Both will continue their roles with the publication as well as roles outside the magazine. Bulwinkle owns Wink Creative Studio, a boutique design firm on St. Philip Street. Huggins is the executive director of Redux Contemporary Art Center.

Mill comes to the partnership from a career in customer service and client relationship management with Cenegenics, a boutique health care institute.

Rogers Townsend moves offices

Rogers Townsend & Thomas has moved its Charleston office. Attorney Francis M. Ervin II, who serves as special counsel with the firm, has relocated with his staff to 4000 Faber Place, Suite 300 in North Charleston. The new location houses conferencing and mediation facilities. Ervin’s cases have involved personal injury, property damage, insurance defense, including professional liability and medical malpractice, construction defect, product liability, and trademark and copyright law.

Cost analysis company working with national franchisees

SIB Fixed Cost Reduction, a Charleston company specializing in reducing recurring monthly expenses for multiple-location companies, has launched a new project with three franchise trade groups. SIB is working with the National Coalition of Associations of 7-Eleven Franchisees to provide contract negotiation services to members.

The trade association of 7-Eleven franchise owner groups also represents the interests of 7-Eleven franchisees at the national level. SIB has also partnered with the Independent Organization of Little Caesar Franchisees and Dunkin’ Donuts Independent Franchise Owners to provide cost reduction services to their members. SIB will help the business owners negotiate better contracts for recurring monthly service expenses and find and correct errors and overcharges on past bills.

Hot Properties 30 Viewpoint 31

Charleston Cooks! celebrates 10 years across South Carolina

Kristin Power, executive director for Lowcountry Orphan Relief, and Tina Marshall, community relations and corporate compliance officer with Palmetto Goodwill.

Palmetto Goodwill presents $1,888 to Lowcountry Orphan Relief

Palmetto Goodwill presented a check for $1,888.76 to Lowcountry Orphan Relief. The donation came from money Palmetto Goodwill received through a giving program held throughout all Lowcountry stores in July through September where shoppers rounded up their purchases to the nearest whole dollar and donated the difference to Lowcountry Orphan Relief.

Event meeting facility Le Chateaux opens in Summerville

The Greater Summerville/Dorchester County Chamber of Commerce recently held a ribbon cutting ceremony to celebrate the opening of Le Chateaux at 950 Bacons Bridge Road in Summerville.

Le Chateaux is a special event meeting facility that can accommodate wedding receptions, rehearsal dinners, anniversaries, baptisms, birthdays, graduations, meetings, luncheons and office parties.

While traveling in New Orleans a decade ago, Maverick Southern Kitchens’ President Dick Elliott discovered inspiration for Charleston Cooks! With three restaurants running in Charleston, Elliott kept his thumb on the pulse of various culinary trends around the country. Today, Charleston Cooks! also has locations now in Columbia and Greenville. The company offers a dozen cooking classes a week, a selected inventory of kitchenware, a knowledgeable staff, and focuses on sourcing many locally made products.

Summerville chamber receives accreditation from trade group

The Greater Summerville/Dorchester County Chamber of Commerce received the 2014 Carolinas Accredited Chamber designation from the Carolinas Association of Chamber of Commerce Executives.

The Summerville chamber was among eight chambers from North Carolina and South Carolina to receive the designation at the association’s annual management conference in October in Greenville.

See BUSINESS DIGEST, Page 28 ➤

Kristen N. Nichols has joined the Charleston office of Turner Padget Graham & Laney P.A. Nichols practices in the areas of alternative dispute resolution, real estate Nichols and lending transactions, and business and commercial litigation. She earned an undergraduate degree magna cum laude from the University of South Carolina in 2002 and a juris doctor from Michigan State University in 2005.

Mullinnix

Streisel

Phillip Mullinnix and Bobby Streisel have joined the Charleston office of Nelson Mullins Riley & Scarborough LLP as associates. Mullinnix will focus his practice on advising and representing health care clients. Mullinnix earned a Juris Doctor, magna cum laude, from the University of South Carolina School of Law; a Master of Arts in history from Clemson University; and a Bachelor of Arts in history and government, magna cum laude, from Wofford College. Streisel will practice in general litigation. He earned a Juris Doctor, magna cum laude, from the University of South Carolina School of Law and a Bachelor of Science in finance, summa cum laude, from Wofford College.

Carlock, Copeland & Stair LLP has hired William J. Farley III, Steven R. Kropski and Alexandra Saber in its Charleston office. Farley’s practice is focused primarily in medical malpractice, automobile and motor carrier accidents, and commercial litigation. Farley graduated from the University of North Carolina at Chapel Hill and the University of South Carolina School of Law. Kropski will focus on professional malpractice defense, and construction and commercial litigation. He previously practiced with a business law firm in Buffalo, N.Y. Saber practices general civil litigation, including construction litigation and the representation of design professionals, contractors and subcontractors. She majored in political science at the University of North Carolina at Chapel Hill and graduated cum laude from the University of South Carolina School of Law. See People, Page 27

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Oil prices — close to the bottom?

O

il prices continue to slide. The drop has been much larger than anybody expected. How much further will it go? How long will it last?

What impact will it have on the economy?

Crude oil prices have fallen 56%, from $107 per barrel at the end of June to $47 per barrel currently.

The drop has been triggered largely by a dramatic increase oil production in Stephen D. in the United States, as Slifer hydraulic fracturing and horizontal drilling have enabled drillers to tap oil reserves in areas that were previously unreachable. Production has almost doubled from 5.0 million barrels per day at the end of the recession to 9.2 million barrels per day currently.

While the increase in the supply of oil is the primary cause of the dramatic drop in prices, some economists worry that softer demand in Europe and Asia has contributed to the decline.

Unlike other occasions when prices have softened, OPEC countries have chosen not to cut production in a rather obvious effort to drive some U.S. shale oil producers out of business. The Saudis are able to pull oil out of the ground more cheaply than anybody else. Thus, they have the ability to withstand lower prices for a longer period of time. Oil analysts suggest that the break-even price of oil is about $27 per barrel for the Saudis versus about $65 per barrel for U.S. shale producers.

With oil prices currently at $47 per barrel, shale producers are feeling the pressure.

As prices have dropped, the number of oil rigs in production in the United States has fallen 13%, from 1,930 at the end of November to 1,676 currently. But yet production (see chart above) has increased 1% during that period of time. Improvements in technology have allowed shale oil drillers to shutter a significant number of wells without any loss of production. To put that in other words, productivity for these producers has increased dramatically. If that is the case, the break-even price of oil for these firms has almost certainly fallen from $65 to something lower — perhaps $60 or even $55 per barrel. There is every reason to think that, going forward, improving technology will further reduce their cost of production.

Even though growth in U.S. gross domestic product remains relatively robust, at about 4.0%, oil production of 9.2 million barrels per day is causing crude oil, gasoline and distillate invento-

Investors continue to get nervous when oil prices drop, because they fear it could be a sign of slower GDP growth. ries to steadily accumulate. It is unlikely that oil prices will stabilize until such time as oil stocks begin to shrink.

For shale producers, the current price of $47 is almost certainly still below their cost of production. That is not a major problem as long as prices do not remain at current (or lower) prices for long. Most experts seem to believe that oil prices will soon begin to climb. The Energy Information Administration estimates that oil prices will average $54.58 in 2015 and then increase to $71.00 in 2016. The group estimates that gasoline prices will average $2.33 this year and $2.72 in 2016.

If they are right, we are probably getting close to the bottom for both crude oil and gasoline prices.

Investors continue to get nervous when oil prices drop, because they fear it could be a sign of slower GDP growth. It is important to keep in mind that a sharp drop in oil prices is unambiguously positive for the U.S. economy as a whole.

Consumers win because it costs less to fill the tank with gas and heat the house with fuel oil during the winter, which leaves them with more money to spend on other goods and services. Most businesses win, as transportation costs decline. We liken it to what happened in the late 1970s and 1980s. In the double-digit inflation era of the late 1970s, oil prices tripled from $13 per barrel to $38. The back-to-back recessions in 1980 and 1982, combined with oil conservation measures, subsequently caused oil prices to reverse almost all of their earlier increase. From 1983 through the end of the decade, GDP growth averaged an impressive 4.0%.

While rapid stock price declines caused by falling oil prices are scary to experience, just remember the mantra: Low oil prices are a significantly positive event for the U.S. economy. cr bj

Reach economist Stephen D. Slifer at steve@numbernomics.com.

Jan. 26 - Feb. 8, 2015

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People in the News REAL ESTATE

Hightower

estate career as a real estate and construction paralegal, as well as a manager for Tanger Outlet Centers in Charleston. She has a Bachelor of Science in psychology from Charleston Southern University and an MBA from the University of Phoenix.

Ondrasek

Carolina One Real Estate has hired Art Hightower, Aubrey Ondrasek and Meredith Walters in its Crowfield, Metro North office in Goose Creek.

Hightower Walters attended the University of South Carolina and was previously employed by Hightower Construction. Ondrasek earned her certified medical assistant degree from Virginia College. Walters has a degree in business management from the University of North Carolina at Pembroke. In addition, Carolina One has added Katherine Ann Frederick, Robyn Jones Hall, Staci Houser, Kimberly Mann and Steven Auerbach at its East Cooper offices. Frederick, a graduate of the College of Charleston with degrees in business administration and hospitality and tourism management, will be working from the Coleman Boulevard office. Hall, a University of Georgia graduate with a degree in business administration, and Houser, who has a degree in geography and urban affairs from Wright State University in Dayton, Ohio, will work out of the Mount Pleasant Highway 17 North office near Brickyard Plantation. In the Isle of Palms office are Mann, who has worked as a cosmetologist and spinning instructor and was an administrator for Bumblebee Landscape Services, and Auerbach, a graduate of the University of Maryland who owned and operated the Stage Deli in New York City for 30 years. Tamiko Humphrise and Jane Kennedy have associated with Carolina One’s Summerville Main Street office. Humphrise earned a Bachelor of Arts degree from Hampton University in Virginia. Kennedy was previously employed as a real estate broker and also worked in the banking industry in Muncie, Ind.

King

Jessica King has joined the commercial property services team of Cushman & Wakefield Thalhimer as a portfolio manager in the firm’s Charleston office.

King began her real

David Grubbs, managing partner and broker in charge with NAI Avant’s Charleston office, has been appointed President of the Commercial Investment Division Grubbs of the Charleston Trident Association of Realtors. The division membership comprises more than 160 local commercial Realtors and affiliates.

The Cassina Group has hired Chip Eiserhardt and Heath Verner at its downtown Charleston office at 69 Morris St. Eiserhardt graduated from Clemson Eiserhardt University with a business degree. Verner graduated from The Citadel in 1997. He has more than 10 years of experience working in real estate.

Coldwell Banker Commercial Atlantic has hired Amber Foster as marketing coordinator.

Foster previously worked in marketing and public relations in PhiladelFoster phia. She graduated from Temple University, where she earned a Bachelor of Arts in strategic communication with a concentration in public relations.

NONPROFIT The Center for Women has named a new executive committee for its board: Virginia Mandell, vice president with Regions Bank, board chairwoman; Jen Buddin, president of Every Busy Woman LLC, vice chairwoman; Jacqueline Cooney, direct human resources for MWV, treasurer; and Jennie Stephens, executive director at The Center for Heirs Property, secretary. New board members include Emily-Elise Martin with Trident Technical College; Mark Edington with Intelligent Human Management Consulting; Sonya Wyatt with Lowcountry Women’s Specialists OB/GYN; Carrie Lewis with Finkel Law; Kelly Williams with AllCare Living Services; and Lora Prevatte with Moody & Advisors CPAs. See People, Page 28

Submit items to editorial@scbiznews.com with “People,” “Business Digest” or “Hot Properties” in the subject line. Publication is subject to editorial discretion.

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People in the News

Carolyn Hunter (center) received a 2014 Benefactor of the Year Award from the Council for Resource Development for her work on behalf of students at Trident Technical College. Mary Thornley (left), president of Trident Technical College, and Shelly Conner, president of the Council for Resource Development, joined Hunter at the awards banquet in Washington, D.C.

Carolyn Hunter was honored as a 2014 Benefactor of the Year for her support of Trident Technical College at a banquet in Washington, D.C. Hunter received the award from the Council for Resource Development, a national organization of community college development professionals. Hunter is president of C&A Unlimited Inc. and owns three McDonald’s restaurants in Ladson, Moncks Corner and Summerville.

Ingrid Tugwell, CEO of PST Inc., has been selected as a Woman of Outstanding Leadership by The International Women’s Leadership Association. Tugwell has spent 23 years building business and philanthropy relations in the Lowcountry. She also volunteers coaching youth and adult teams for the city of Charleston

recreation department and donates time to local schools to help students acquire emotional intelligence.

to bake artisanal bread, before completing a professional pastry program at a small cooking school in San Francisco.

Chris Duncan, marketing coordinator for the Lowcountry Graduate Center, is the 2015 immediate past president of the board of the S.C. chapter of the Public Relations Society of America. Additionally, Tess Fortier, corporate concierge and events manager for PeopleMatter, has been named Lowcountry regional director.

Patrick Properties Hospitality Group has hired Tanya Matthews as a sales manager. She will focus on event sales, working with brides and corporate clients.

Matthews Matthews previously directed operations for Boston Arts Summer Institute’s inaugural Outside The Box Performing Arts Festival. She attended State University of New York – Purchase’s School of Performing Arts, where she majored in dance, and majored in psychology at Palm Beach Atlantic University.

HOSPITALITY & TOURISM Fish Restaurant has promoted bartender Iouli Burroughs to bar manager, overseeing daily operations and leading the restaurant’s artisan cocktail and craft Burroughs beverage program.

Burroughs earned a Bachelor of Science in biology from Presbyterian College.

HEALTH CARE

Julia Ingram has joined the staff of Edmund’s Oast as pastry chef. Ingram, previously the owner of the gluten-free bakery Sweet Radish Bakeshop in Charleston, has created the restaurant’s desserts since its opening. In her new role, she will be expanding the dessert menu. Ingram graduated from Lewis & Clarke College with a degree in sociology and anthropology before deciding to pursue baking professionally. She first joined a cooperative bakery, where she learned

Jean Bottone was named Volunteer of the Year for 2014 for the Volunteer Services Organization at East Cooper Medical Center. Bottone, a volunteer escort, creBottone ated a CD titled Over the Rainbow that she sold for donations to the organization.

She used the sales to fund a $1,000 scholarship to a student going into the medical field. Pat Royall was also recognized at the volunteer awards luncheon for more than 20 years of service as a volunteer at East Cooper Medical Center.

GIS company expands product to put permitting data in the cloud

Hospice of Charleston, Odyssey Hospice merge under same name

FINANCIAL SERVICES Rick Arthur has been promoted to executive vice president and chief consumer banking officer at Bank of North Carolina. Arthur will oversee the strategy and development of consumer-related functions of the company, including all branches and consumer channels. Previously he worked with First Federal Bank.

Charles Thompson Jr., formerly with Harbor National Bank, is now with BNC Bank as vice president and mortgage consultant. Thompson has more than 36 years’ experience with residential mortgages. Thompson is a graduate of the University of South Carolina.

EDUCATION Betsy McArdle has joined Children’s Discovery Center, a Mount Pleasant child care provider, as education director. McArdle, a public school educator McArdle for 12 years, will collaborate with teachers in their planning of the Reggio Emilia-inspired projects. McArdle earned a bachelor’s degree in special education and a master’s degree in educational administration from Miami University in Oxford, Ohio. She later earned an additional certification in early childhood education.

Business Digest ROK Technologies Inc. has expanded its GoMaps 4.0 Web GIS Framework to include cloud-based enterprise permitting and inspection work flows and reporting. The company said the addition will help organizations using paper-based storage or legacy systems for construction and engineering permits.

Charleston Palette opens as exclusive Farrow & Ball retailer

Charleston Palette & Design LLC has opened as the exclusive Farrow & Ball retailer in South Carolina. Owners Angie Dolan and Joanne Munyon said previously clients have had to travel to New York or Atlanta to visit F&B showrooms and have products shipped to their location.

Women’s only fitness center opens in Summerville

The Greater Summerville/Dorchester County Chamber of Commerce recently held a ribbon cutting ceremony to celebrate the grand opening of In-N-Out Fitness at 1216 N. Main Street in Summerville. The womens-only facility offers 30-minute workouts and qualified trainers in a small group setting.

Hospice of Charleston, which has been operating for 33 years, and Odyssey Hospice, which has been in Charleston community for 14 years, have merged under one name, Hospice of Charleston. The name more accurately reflects the relationship and resources of the end-of-life care company for Charleston, Berkley, Dorchester and Colleton counties, the company said in a news release. Hospice of Charleston is a part of the Gentiva hospice and home health companies.

Butler leads award-winning initiative at Select Health

First Choice by Select Health of S.C., the oldest and largest Medicaid health plan in the state, has been recog-

nized by Medicaid Health Plans of America with an annual Best Practice award. The national award recognized Select Health for a campaign to promote cervical cancer screenings among women on its First Choice plan. Health Promotion Program Specialist Jennie Butler of Summerville spearheaded a workgroup that researched cultural beliefs and barriers related to cervical cancer screenings, then developed and implemented outreach materials. The initiative contributed to a 17.3% increase in annual screening rates among First Choice plan members, with follow-up surveys showing women who received brochures written and designed for their race or ethnicity were more likely to schedule a screening appointment.

Submit items to editorial@scbiznews.com with “People,” “Business Digest” or “Hot Properties” in the subject line. Publication is subject to editorial discretion.

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Hot Properties The following commercial real estate transactions were recently completed in the Charleston area. For weekly updates on commercial deals, see the Hot Properties feature every Monday in the Daily Journal email or online at www. charlestonbusiness.com. To submit items for the feature, send email to dailyjournal@ scbiznews.com.

Amanda Reeves and Will Sherrod of Lee & Associates Charleston represented the landlord, Oakland Properties LLC, in the lease of 1,695 square feet of retail space at The Market at Oakland, 1172 Oakland Market Road, Space 12, in Mount Pleasant to SLSC Group Inc., doing business as Sylvan Learning Center.

Pete Harper of Lee & Associates Charleston represented the landlord, Acquired Capital II, in the lease of 1,465-square-feet of office space at The Atrium, 7031 Rivers Ave., Suite 245, in North Charleston to the Small Business Group.

Alan Bolduc of Avison Young represented the sublessor, Soft-Tex Manufacturing Co., in the sublease of a 25,000-square-foot industrial building at 1009- B Trident St. in Hanahan to Twelve South. Simons Johnson of Colliers International represented the sublessee.

Robert Pratt of Re/Max Pro Realty represented the landlord, Midland Park Inc., in the lease of 1,100 square feet of space at 100 Morgan Place, Suite A, in Summerville to Engineering Design & Testing Corp.

Robert Pratt of Re/Max Pro Realty represented the landlord, Greater Summerville/Dorchester County Chamber of Commerce, in the lease of 2,508 square feet of space at 402 N. Main St., Suite D, in Summerville to The Harbor Entrepreneur Center.

David Grubbs and Scott Peevy of NAI Avant represented the landlord, King and Queen Co., in the lease of 539 square feet of office space in the King and Queen Building in downtown Charleston.

Chip Shealy of CBRE Inc. represented the landlord, John P. Bowler, in the lease of 1,900 square feet of office space at 7741 Dorchester Road in North Charleston to T&T Tutor World. Chris Tamsberg of CBRE Inc. represented the tenant.

David Grubbs and Scott Peevy of NAI Avant represented the landlord in the lease renewal of 8,209 square feet of office space in the First Citizens Building, 2170 Ashley Phosphate Road in North Charleston to O’Brien & Gere. Albert Giannino of Pioneer Cos. represented the tenant.

Jonathan Chalfie of Lee & Associates Charleston represented the landlord, Etikerentse Temisan Trust, in the lease of a 750-square-foot office space at 5880 Rivers Ave. in North Charleston to Reading Partners.

Iron Gate Realty LLC represented the tenant.

Charles Constant of Domicile Real Estate Brokerage represented the tenant, Charleston Performing Arts Center, in the lease of a 2,400-square-foot mixeduse building at 873 Folly Road on James Island. Mark Mizell of the Sadler Group represented the landlord.

Jack Owens and Thomas Buist of Lee & Associates Charleston represented the seller, Arthur Financial Corp., in the sale of 2.1 acres on Ladson Road in North Charleston to Twister 105 LLC for $860,000. Paul Ansell of EDCD Realty represented the buyer.

Thomas G. Buist Jr. of Lee & Associates Charleston represented the tenant, Supply Chain Services International LLC, in the lease of a 64,500-square-foot industrial building at 412 Industrial Road in Summerville from The Cotswold Co. LLC. Brendan Redeyoff and Bob Barrineau of CBRE Inc. represented the landlord.

Vitre Stephens and Avery Homes of Avison Young represented the landlord, Ashley Oaks of Charleston LLC, in the lease of a 27,500-square-foot retail space at 1757 Ashley River Road in Charleston to Carriage House Auction Gallery LLC. Rod Weader of Agent Owned Realty represented the tenant.

Brent Case of Coldwell Banker Commercial Atlantic International Inc. represented the landlord, Zeus Investments LLC, in the lease of retail space at 725 Johnnie Dodds Blvd. in Mount Pleasant to Woodhouse Day Spa. Brent Case of Coldwell Banker Commercial Atlantic International Inc. represented the tenant, Stone Spine & Disc, in the lease of 1706 Old Trolley Road, Suite F, in Summerville.

Bobby Reece of Coldwell Banker Commercial Atlantic International Inc. represented the seller, Gary Grill, in the sale of a 4,000-square-foot office and warehouse building at 5060 Coosaw Creek Blvd. in North Charleston to Innovative Sight & Sound.

James Bailey of Century 21 Properties Plus represented the buyer.

Kip Bowman of Coldwell Banker Commercial Atlantic International Inc. represented the buyer, Sweetgrass TC LLC, in the purchase of 10,400 square feet of space at Sweetgrass Corner Shopping Center, 1911 and 1907 U.S. Highway 17 N.

in Mount Pleasant from Griffith Development LLC. Louis Griffith of Joe Griffith Inc. represented the seller.

Brent Case of Coldwell Banker Commercial Atlantic International Inc. represented the tenant, Palmetto Primary Care, in the lease of 1101 Trolley Road, Unit 103, in Summerville.

Chad Yonce of Southeastern Management Group represented the tenant, Low Country Labor Co., and the landlord, Myers Maas Ein LLC, in the lease of 500 square feet of office space at 192 East Bay St. in Charleston.

Jeremy Willits and Gerry Schauer of Avison Young represented the landlord, R.E.R. Investments, in the lease of an office space at 360 Concord St. in Charleston to Wave Sciences Corp.

Scott Peevy and Derek Mathis of NAI Avant represented the tenant, Van Der Ent Machines LLC, in the lease of 6,500 square feet of industrial space at 216 Cember Way in Summerville. Brendan Redeyoff of CBRE represented the landlord.

Robert Pratt of Re/Max Pro Realty represented the landlord, Eighty Three Hundred Dorchester Road LLC, in the lease of 5,500 square feet of space at 8300 Dorchester Road, Suite E, in North Charleston to Lowcountry Wrestling Academy.

Robert Pratt of Re/Max Pro Realty represented the landlord, Parkway Associates of Summerville, in the lease of 1,400 square feet of space at 330 E. Fifth North St., Suite A, in Summerville to Pure Life Chiropractic.

Leslie Fellabom and Chris Fraser of Avison Young represented the subtenant, The Harbor Entrepreneur Center Inc., in the sublease of a 2,138-square-foot office space at 300 W. Coleman Blvd. in Mount Pleasant from Road Raiders Transportation Inc. Jack Glasgow of Mohr Partners Inc. represented the sublessor.

Gordon Geer of Lee & Associates Charleston represented the seller, Suntrust Bank, in the sale of a 43,560-square-foot lot, including a 3,000-square-foot building, at 1101 St. Thomas Island Drive in Wando to 1101 STID LLC. Bell Carrington & Price LLC represented the buyer.

Dunston Powell of Carolina Commercial LLC represented the seller in the sale of 4993 U.S. Highway 17 N. in Awendaw. Trey Lucy of Belk Lucy represented the buyer.

Jonathan Chalfie of Lee & Associates Charleston represented the tenants, Atlas Healthcare P.A. and Optimal Life Medical Youth Maintenance P.A., in the lease of a 2,230-square-foot office suite at 3404 Salterbeck Drive, Unit 100B, in Mount Pleasant from Park West Investors LLC. David Seay of Seay Development represented the landlord.

Reid Davis of Lee & Associates Charleston represented the tenant, Charleston (WTAT-TV) LLC, in the lease of an 8,977-square-foot office space at 4301 Arco Lane in North Charleston.

Tradd Varner of Coldwell Banker Commercial Atlantic International Inc. represented the landlord, Oakbrook Plaza Shopping Center LLC, in the lease of a 1,700-square-foot retail unit at 10050 Dorchester Road to Glow Tan Salon and Spa. Edward Robinson with The Beach Co. – Beach Commercial represented the landlord, Majestic Square LLC, in the lease of 2,659 square feet of office space at 211 King St., Suite 100, in downtown Charleston to Wheeler Real Estate Investment Trust.

Chauncey Clark of The Peninsula Co. LLC represented the tenant, Salon Vari LLC, in the lease of 1,540 square feet of retail space at 101 Spring St. in Charleston from 101 Spring LLC. Marion Jackson of Brand Name Real Estate Inc. represented the landlord.

Todd P. Garrett of Avison Young represented the tenant, TCI Contracting LLC, in the lease extension of a 22,275-square-foot office and warehouse at 8302 Dorchester Road in North Charleston from Robert L. Pratt LLC. Robert Pratt represented the landlord.

Todd P. Garrett of Avison Young represented the landlord, Palms Preferred Properties LLC, in the lease extension of a 2,400-square-foot office and warehouse building at 4663 Franchise St., Suite 102, in North Charleston to Professional Drywall & Paint Co. Todd P. Garrett of Avison Young represented the landlord, Palms Preferred Properties LLC, in the lease extension of a 2,100-square-foot office and warehouse building at 7187 Bryhawke Circle, Unit 200, in North Charleston to Heartland Automotive Services Inc. Steve Collins of Blanchard & Calhoun Commercial represented the buyer, Ziff Properties Inc., in the purchase of a 174,146-square-foot mixed-use property on Ashley River Road. Rockwood Real Estate Advisors represented the seller.

Submit items to editorial@scbiznews.com with “People,” “Business Digest” or “Hot Properties” in the subject line. Publication is subject to editorial discretion.

Viewpoint:

Views, perspectives and readers’ letters

Our Opinion

Why Charleston must give in to Uber’s demand The S.C. Public Service Commission and the Charleston County Aviation Authority need to get their approach to Uber right, and we’re not overstating it by suggesting the world is watching.

Uber comes into a city a bit like a guerrilla army that pulls in conscripts from locals who didn’t know they were unhappy with taxicabs until they realized there was a different way. That approach has been very effective and well-documented in the technology press.

Uber updates its app for a city and unleashes a disruptive attitude that creates a buzz, creates jobs and fills a demand that’s being unmet or poorly met by existing regulations and services provided by taxicabs.

Uber says it just provides a mobile app that connects riders and those who are willing to give rides in their personal vehicles for a fee. It sounds simple, but it’s pulled in billions in venture capital and caused unwanted growing pains in cities across the globe.

The service is wildly popular, especially in tech-heavy cities that have found a way for Uber and other similar companies to co-exist with taxi companies.

We understand the taxi operators’ interest: They have to play by the rules, which mandates they have to do certain things that increase their costs. No one likes competition when your competitor isn’t playing by the rules.

We understand the government concern: They pass laws, make policy and expect businesses to comply, in their estimation, for the greater good.

Gov. Nikki Haley gets it. Her negative response to a cease and desist order from the S.C. Public Service Commission sends the right message and indicates an urgency to fix this problem before it spirals into a PR fiasco.

How we treat this early wave of technology companies sends a message about South Carolina’s attitude toward emerging businesses. Even those not exclusively in the tech sector.

Haley isn’t alone. PeopleMatter CEO Nate DaPore, BoomTown CEO Grier Allen, Blue Acorn CEO Kevin Eichelberger and Advantage Media Group CEO Adam Witty all signed a letter to the S.C Public Service Commission along with Charleston Mayor Joe Riley to express their support for Uber.

Uber is one of the more publicly disruptive tech companies coming to our region, but it’s not the last and how creatively we adopt the first generations of startups and disruptors that don’t always rely on business models that fit neatly into a regulatory package sets a precedent and sends a message.

Should we roll over and give Uber everything it wants?

Of course not, but there’s common ground. They’ve shown a proclivity toward working with governments that want to work with them. But not working with them won’t stop them from coming. Uber raised more than $4 billion in venture capital last year, which is enough cash to keep them rolling amid legal challenges.

Charleston has an opportunity to become a beacon to the international tech community in how it approaches the Uber problem. That would be a real Silicon Harbor, a Silicon Safe Harbor where it’s not just safe to do business but encouraged.

Innovation economy rises by leveraging what Charleston has

I

n 2001, while the national economy was in the grips of a major recession, Charleston launched an effort to attract, nurture and promote its knowledge economy. The Charleston Digital Corridor was not born out of a sense of crisis as Charleston weathered this recession better than most cities. Nor were there expensive and exhaustive reports that for the most part have proven to be marginally useful as they tell you the somewhat Ernest obvious or serve as more of an analytical resource.

Andrade The Charleston Digital Corridor was the result of citizens recognizing the subtle but growing divergence between stagnating wage levels and Charleston’s rising cost of living and the need to develop a strategy to close this gap by building a high-wage economy.

Largely driven by public and institutional employment, hospitality, port-related distribution facilities and basic manufacturing businesses, wage levels were stagnating while Charleston’s cost of living was experiencing a dramatic rise especially driven by housing prices.

Fast forward 10 years, Charleston has leveraged its well preserved urban historical fabric, coastal geography, legendary lifestyle and livability, and attractive business climate to build a highwage tech and tech-related economy recognized as one of the fastest growing in the country.

Some lessons learned

• The economic landscape is changing at a faster pace than in the past - tactical, practical and measurable actions are what matter to a community as they lead to fruitful engagement followed by demonstrable results.

• The single biggest impact on success was engaging with energetic and passionate “can

•

•

• • •

do” local leaders who catalyzed community engagement by successfully executing their respective business plans while also serving as ambassadors for Charleston’s tech industry.

Broad community consensus took a back seat to input from the tech industry followed by precise execution, constant measurement constant measurement and a “quickly kill it if it does not work” attitude.

Dense, high amenity, “open” urban office campuses are preferred by millennial tech workers to sprawling “sequestered” suburban office parks which limit professional and social interaction between like-minded professionals and mobility to the automobile.

Leverage “what you have” instead of wishing “what you had.”

Celebrate small wins and being unique instead of headline grabbing announcements and trying to copy cat other communities.

Contrary to expert commentary about private leadership with building sustainable high wage economies, Charleston’s early success has been driven largely by the public sector with input from the private sector. Charleston set the table for the growth of the tech industry through targeted legislative changes, cutting red tape and moving with the same speed the tech industry requires to become successful.

Ernest Andrade is the principal of Andrade Economics and the founder and executive director of the Charleston Digital Corridor.

We want to hear from you Write: Andy Owens, Managing Editor Charleston Regional Business Journal, 1439 Stuart Engals Blvd., Suite 200 Mount Pleasant, SC 29464 Email: editorial@scbiznews.com

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