2013 Mar-Apr South Carolina Business

March/April 2013 Vol. 34 No.2

SOUTH CAROLINA’S MEDICAID DEBATE Transformation of the Biomedical Industry Senior Care Stresses on the Workplace MUSC Children’s Hospital Make it Happen Is your Health Information Protected?

Health care is changing.

And it’s for the better.

By collaborating with your doctors, we’re providing a path toward healthy living for all South Carolinians.

connecting physicians, nutritionists, care coordinators and even your pharmacists - so you’re provided with outstanding preventive care and a full understanding of your medications. It matters

how you’re treated. And we’re working to make health care better for you and everyone else in the state.

See what your physician has to say about the future of our health care by visiting

aHealthySC.tv

o

llab

Co

Personalized

of the old ways of health care: You finally get to spend time with your doctor again. We’re

C ive rat

Treatment Electronic Records

are

A patient-centered medical home is a new way of practicing medicine that will remind you

Because it matters how you’re treated.

Copyright © 2012, BlueCross BlueShield of South Carolina. All rights reserved.

BlueCross BlueShield of South Carolina is an independent licensee of the Blue Cross and Blue Shield Association.

TRANSFORMING THE HEALTHCARE LANDSCAPE 速

LISTEN. DIAGNOSE. TREAT. It works for your patients. It works for our clients.

Our statewide team of healthcare attorneys helps large hospital systems, nursing homes, diagnostic testing centers, and physicians find practical solutions to complex problems.

WWW.HSBLAWFIRM.COM

CHARLESTON

COLUMBIA

FLORENCE

GREENVILLE

MYRTLE BEACH

WASHINGTON, DC

Matthew P. Utecht, Healthcare Group Leader, ONE North Main, 2nd Floor, Greenville SC 29601 864.840.3200 mutecht@hsblawfirm.com

contents F E A T U R E S

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South Carolina’s Medicaid Debate. ...............................12

by Thornton Kirby and Anthony Keck

MUSC Children’s Hospital Make it happen.....................................................................14

by Jean Cecil Frick

March/April 2013 Volume 34, Number 2

South Carolina Chamber of Commerce 1301 Gervais Street, Suite 1100 Columbia, South Carolina 29201 800.799.4601 www . scchamber . net

M P resident & C hief E xecutive O fficer

Protecting the privacy and security of health information.......................................................18

V ice P resident of P ublic P olicy

by Jeanne Born

& C ommunications

MEMBER SPOTLIGHT

A ssociate V ice P resident

DARRELL SCOTT

Select Health of South Carolina...................................20

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OTIS RAWL

of C ommunications

JULIE SCOTT

by Susan Hill Smith M ulti M edia M anager

I am S.C. Business..........................................................................28

JEAN CECIL FRICK

M

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ECONOMIC DRIVERS Businesses can transform education • Steve Burry.............................. 6 The Affordable Care Act implementations in 2013 • Robby Kerr........ 8

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SOUTH CAROLINA BUSINESS MAGAZINE E ditor JEAN CECIL FRICK

Do your employees feel like a sandwich? • Tim Timmons.................... 9

A rt D irection & D esign TIM MCKEEVER / TMCA INC.

Greenville event marks transformation of biomedical industry • Wayne Roper.................................................................................. 10

P roduction & P rint C oordination TMCA INC.

L egislative S potlight Senator Thomas Alexander • Thomas Mullikin..................................... 8

A dvertising S ales CONVERGING MEDIA LLC DEIDRE MACKLEN 803.318.3923

D E PA RT M E N T S Message from the President............. 3 Otis Rawl After the Event Legislative priorities discussed at Business Speaks.......................... 22

Member News.................................. 25 Welcome, New Members................ 26 Advertiser Index............................... 26

Marie Sitter, SPHR, named 2013 HR Professional of the Year.................. 24

STATE CHAMBER with Distinction

The opinions and views expressed by the contributors to this publication do not necessarily reflect the opinions and views of the South Carolina Chamber of Commerce, its staff or members.

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Copyright © 2013 by Converging Media LLC and the South Carolina Chamber of Commerce. All foreign and U.S. rights reserved. Contents of this publication, including images, may not be reproduced without written consent from the publisher. Published for the South Carolina Chamber of Commerce by Converging Media LLC. 803.256.3010

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ike many states, the health care debate continues to hang over South Carolina. One critical area is the decision to expand Medicaid. Governor Nikki Haley has said that under her leadership, South Carolina will not expand Medicaid or participate in any health exchanges. The South Carolina Hospital Association and others urge expansion, pointing out that approximately 250,000 uninsured South Carolinians would gain health care coverage under a state expansion of Medicaid. Some members of the General Assembly have also offered proposals.

Medicaid expansion is a complicated issue with many facets, but rest assured the South Carolina Chamber of Commerce is focused on the impacts to employers and employees. We are studying and examining the issue from all angles. In fact, we have gathered some of the brightest minds in business and health care to fully examine Medicaid expansion. This comprehensive group is looking at all of the positives and negatives to employers and will report back their findings.

While we examine issues like Medicaid expansion and ensuring South Carolina taxpayers get the best return on their investments, we cannot overlook infrastructure. South Carolina’s roads and bridges have not seen a dedicated funding increase since 1987, a time when there were one million fewer residents on roadways.

Today, nearly one-third of our primary and interstate highways and half of secondary roads are in poor or mediocre condition. One out of every five bridges in the state is considered deficient.

With South Carolina’s business community leading the charge, the issue has reached a boiling point and now it’s up to policymakers to exert bold leadership. South Carolina’s business community has released a Road Map to the Future, a detailed plan for the General Assembly to begin addressing funding of the state’s infrastructure. After all, financing infrastructure is a core function of government. Fourteen associations have come together to support the Road Map, which addresses three major improvement areas: Interstate Expansion ($2.8 billion), Bridges ($2 billion) and Resurfacing ($1.2 billion).

I invite you to review the Road Map to the Future at www. scchamber.net.

The $6 billion plan begins to address critical avenues for economic development and takes a statewide approach to statewide responsibilities. In the Road Map, we have included several viable funding options that do not increase taxes or fees, including dedicating a portion of new General Fund revenue, dedicating dollars from the Capital Reserve Fund and redirecting existing vehicle-related revenues. If the General Assembly follows this reasonable and common sense path, more than $250 million could be invested in roads this year alone.

Several South Carolina policy leaders have introduced ideas that represent good first steps in investing in infrastructure. In late February, the commonwealth of Virginia passed its own transportation plan that includes a laundry list of funding options for infrastructure. As a result, over time, Virginia will have an additional $1 billion in transportation funding, substantial enough to meet increased transportation needs.

Virginia’s bold infrastructure investment will also benefit its port to help handle the post-Panamax ships that will be entering the East Coast. The Port of Charleston will be in direct competition with this port for handling cargo. Yet, Virginia - often deemed one of the most business friendly states in the nation - has taken a strong first step in ensuring it is the top port of call on the East Coast. In other words, states that South Carolina directly competes with for jobs and capital investment are addressing their infrastructure needs now.

The link between sound and reliable roads and bridges and economic development cannot be underestimated. It is time for the South Carolina General Assembly to make infrastructure financing a top priority.

In this health care focused edition of South Carolina Business, we take a closer look at the Medicaid expansion debate and the latest changes for employers as a result of the federal health care law. We also introduce you to care at the Medical University of South Carolina Children’s Hospital that is the only location for pediatric bone marrow transplants in the state. This edition also takes a look at the growing life sciences industry.

As the General Assembly addresses issues key to South Carolina’s competitiveness this legislative session, whether it be health care costs or infrastructure, I encourage you to continue to make your voice heard at the State House. After all, businesses are taxpayers too.

FROM THE PRESIDENT

The looming health care debate and your tax dollars

Otis Rawl is president and chief executive officer of the South Carolina Chamber of Commerce.

Review the Road Map to the Future at scchamber.net

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BUSINESS BRIEFS

Agapé Senior investing over $8 million in downtown Columbia

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gapé Senior, one of the largest senior healthcare providers in South Carolina, plans to relocate its corporate headquarters and some of its retail services to three buildings, investing more than $8 million in downtown Columbia.

Agapé Senior will occupy a total of 43,000 square feet of space on Main Street. Besides the corporate offices of Agapé Senior, other Agapé services will be either relocating or opening an additional location on Columbia’s Main Street: Agapé Senior Primary and Palliative Care, Agapé Pharmacy, 24/7 Health and Fitness Center, Agapé Gourmet and Catering, Good Life Café, and a new 3,000 square foot conference center that will hold 300 people.

Mashburn Construction Company will renovate the three buildings. Lee Mashburn, vice president and longtime board member of the City Center Partnership, has assisted in the relocation plans for Agapé Senior. “We intend to maintain the historic look of all three buildings,” Mashburn said.

Google brings additional investment to Berkeley County data center

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oogle announced it will expand its operations at the Mt. Holly Commerce Park in Berkeley County. The additional $600 million investment at the data center site brings Google’s total investment to over $1.2 billion in South Carolina.

“South Carolina and the Berkeley County community are great places in which to work and grow,” said Data Center Operations Manager Eric Wages.

“When Google first announced plans to come to Berkeley County in 2007, we were attracted to not only the energy infrastructure, developable land and available workforce, but also the extraordinary team from the local community that made us feel welcome. Google is proud to call Berkeley County home.”

The announcement aligns with Google’s goals to provide the best possible user experience. The data center in Berkeley County houses computer systems and associated components that support services such as Google search, Gmail, Google+ and YouTube. The company is growing capacity to meet demand for Google’s services.

BMW Manufacturing opens onsite Family Health Center

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MW Manufacturing celebrated the official opening of its Associate Family Health Center at its South Carolina plant on January 8. The Center is a first-class facility, employing highly-trained professionals and offering the latest in healthcare technology. Use of the facility is available to all BMW Associates, eligible retirees and their dependants.

BMW’s existing onsite family pharmacy was relocated to the new facility and joined by occupational, primary care services, as well as vision, dental and physical therapy. The combination of cost savings and the benefit of having medical services all in one location offers the company’s workforce a new option in their overall healthcare management.

The Center will be independently managed by Walgreens Take Care Health Systems and is among just a few health centers across the U.S. that offers such an array of services under one roof exclusively for on-site corporate use.

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am’s Club presented the South Carolina Chamber of Commerce Homework Centers with $10,000 to enhance the programs and services in 14 elementary schools in SCE&G service territories. Homework Centers, sponsored by SCE&G, provide students with homework assistance, time management skills and enrichment activities.

The following schools will benefit from the generous donation: Brunson-Dargan Elementary, Darlington; Carver Lyon Elementary, Columbia; Claude A. Taylor Elementary, Columbia; Conder Elementary, Columbia; Gadsden Elementary, Columbia; Horrell Hill Elementary, Columbia; Hunter-Kinard-Tyler Elementary, Columbia; JP Thomas Elementary, Columbia; Kelly Miller Elementary, Columbia; McCrory-Liston Elementary, Columbia; Memminger Elementary, Charleston; North Aiken Elementary, Aiken; Oakland Elementary, Charleston; and Whale Branch Elementary, Hilton Head.

In addition, Sam’s Clubs located near the schools will provide supplies for students and offer volunteer opportunities for their employees.

BUSINESS BRIEFS

Sam’s Club presents South Carolina Chamber Homework Centers with donation

Piedmont Technical College wins prestigious Bellwether Award

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iedmont Technical College’s implementation of Lean in Higher Education has been awarded the prestigious 2013 Bellwether Award, which recognizes outstanding and innovative programs in community college education.

Piedmont Technical College (PTC) is the first and only college from South Carolina to be recognized with this award. The College’s program was chosen out of a pool of hundreds of entries from all over the United States. PTC won in the Planning, Governance and Finance category, which recognizes programs or activities that improve efficiency and effectiveness in the community college, for the program “Lean in Higher Education: How it continues to Change Our Culture.”

Time Warner Cable brings 644 new jobs to South Carolina

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ime Warner Cable, a provider of cable television and Internet services, announced plans to expand its operations in Lexington County. The $24 million investment is expected to generate 644 new jobs over the next year.

“Even in a recovering economy, Time Warner Cable continues to grow and is pleased to offer valuable, good paying jobs in Columbia,” said Carol Hevey, executive vice president, Time Warner Cable East. “The addition of 644 jobs, which increases our South Carolina workforce by more than 50 percent, emphasizes our strong commitment to South Carolina.”

Time Warner Cable plans to expand its retention center, telesales operations support and payment services departments at its West Columbia campus located at 3347 Platt Springs Road. The company currently employs nearly 1,300 across the state.

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ECONOMIC DRIVERS 6

Businesses can transform education B y S teve B urry

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n a fast changing global economy with new employment needs and career opportunities continuously emerging, the need for collaboration between industry and a well prepared workforce intensifies.

Last year, Michelin North America announced it will expand its Earthmover tire production in South Carolina with a $750 million investment expected to generate 500 new jobs. For the past year, Michelin has been partnering with Lexington School District One, Lexington-Richland School District Five and Midlands Technical College to create a supply chain of technical talent to fill many of these new positions.

We are just one example of how industry can take the lead in preparing highly-skilled workers by teaming with the educational community to recruit and develop technical talent.

“It became very clear to us, that to be successful in the long term, we needed to adapt our hiring process and think differently about how we go about developing and recruiting the necessary people to meet our needs. The first realization for us was that we could not go about this alone,” says Peter Sutton, site manager for Michelin Lexington.

Michelin’s Lexington site is the company’s largest manufacturing facility in the world. It is home to two manufacturing plants consisting of over two million square feet of production space. Facing the challenge of having to find and hire skilled workers, we took the lead by creating a model with Lexington School District One, Lexington-Richland School District Five and Midlands Technical College in an effort to align students with their talents and put them on the right track to finding a career.

Dr. Marshall (Sonny) White, Jr., president of Midlands Technical College, describes a broad-based model for education and business interaction by highlighting, “It is essential for businesses, especially those in the engineering technology field of manufacturing such as Michelin, to be integrally involved in creating and sustaining a pipeline of better-prepared, highly motivated students for careers in the region.”

Dr. White continues, “Michelin is an active partner in communicating these job opportunities and, most importantly, working with area schools and our twoyear college programs to enable young students to be successfully prepared for lucrative middle-skilled career positions. There is currently a tremendous emphasis on aligning the curricula of school districts, in particular Lexington School District One and Lexington-Richland School District Five, with Midlands Technical College programs to produce qualified Michelin job applicants.

In short, the model works.”

A key factor to prompting students’ interest in these highly technical fields is making learning opportunities available to them through their school curriculum.

By aligning educational curriculums with the current industrial opportunities, we have begun exposing children and young adults to technology, science and engineering earlier in their education.

“The model currently underway is designed to align specific employment needs and bridge the gap

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Michelin Technical Scholar, Angela Dabrowski, is a student at Midlands Technical College and works in a tire building shop in the Michelin Lexington passenger plant.

between industry’s needs, high school preparation and career paths for our students,” says Lexington County School District One Superintendent Dr. Karen Woodard.

“Our strategic focus on improving the understanding of modern industry - the quality work environment, income potential, specific preparation of skill, knowledge and work characteristics needed for successful employment - has potential for Michelin as well as other businesses/industries,” she said.

Dr. Stephen Hefner, superintendent for LexingtonRichland School District Five, is a firm believer in the positive success of this new model.

“Based on the innovative, collaborative partnership that has been established with Michelin, students in Lexington-Richland Five and Lexington One will be prepared to enter highly productive careers at Michelin in an advanced manufacturing environment earning excellent salaries and benefits. I am extremely grateful for the partnership that has been established and for the great opportunities that are being afforded to our students,” he said.

This model is a tremendous success story for both Michelin and the Lexington educational community.

Currently we have a cross-functional team of about 20 people dedicated to creating a pipeline of future employees. The goal is to establish a human supply chain of technical talent from high school through technical college and on to Michelin for a great future career in our industrial facilities.

The team is focused on alignment of three major areas: curriculum, assessments and branding/marketing.

Taking these courses in high school allows students to begin an exciting career path for life. We demonstrate our value and appreciation for these students as they attend Midlands Technical College and are accepted into the Michelin Scholars Program by providing financial assistance. Through the Michelin Scholars Program,

Michelin funds tuition and books as well as provides part-time work with competitive pay and benefits.

Michelin values this unique partnership as a competitive business advantage for the company.

The key to long term business growth will depend on our ability to get the right people with the right skills in our available jobs. It takes great people to make great products.

“Our partnership with the educational community has always been strong, but over the past year, with everyone’s participation, we have taken this partnership to a whole new level. A strong, collaborative team focused on a common objective is essential in my view and explains most of the success so far,” Sutton said.

“Finally, and perhaps the most important reason we have been able to succeed in this partnership is our shared vision of providing a future for the children growing up in our communities.”

Michelin plans to build on the success it has experienced in Lexington County and move the model to the Upstate, transforming education through collaboration.

The state of South Carolina is a great place to do business, and the manufacturing community in the state is growing quickly. In the future, our state will continue to attract companies because of the workforce we are developing. Having these partnerships in place now ensures that the technical talent needs of the future economy can be met and sustained.

Steve Burry is in corporate employee relations for Michelin North America, Inc.

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ECONOMIC DRIVERS

The Affordable Care Act implementations in 2013 B y R obby K err

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here has been a lot of debate among the states in recent months regarding the expansion of Medicaid under the Affordable Care Act. At least a quarter of the states appear set to not expand and 17 others remain uncommitted. With all the attention focused on the discussion of Medicaid, it is sometimes easy to forget that implementation of the rest of the Act continues to roll forward. The entire law contained roughly 100 new initiatives; of which, over half have already been enacted. More than two dozen new provisions, disclosures or notifications will go into effect this calendar year alone. Many of these set in motion the funding mechanisms for the Act.

LEGISLATIVE SPOTLIGHT

Here’s a list of some of the more notable changes: • The Medicare payroll tax increases by .9% on incomes above $200,000 for individuals and $250,000 for joint filers.

• Unearned net investment income is taxed an additional 3.8% on incomes above $200,000 for individuals and $250,000 for joint filers.

• The threshold for the itemized deduction for unreimbursed medical expenses increases from 7.5% to 10% of AGI for taxpayers under age 65.

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• The tax deduction for employers receiving Medicare Part D retiree drug subsidy payments is eliminated.

• The amount of contributions to flexible spending accounts for medical expenses is limited to $2,500 per year and then increased annually by the cost of living adjustment.

• A 2.3% excise tax is imposed on the sale of any taxable medical device.

• The fee imposed on plan sponsors to pay for the Patient-Centered Outcomes Research Institute increases to $2 per covered life.

• Federal subsidies begin to be phased-in for brand name prescriptions as part of the effort to close the Medicare drug coverage gap.

• Medicaid payments to primary care physicians increased to 100% of Medicare rates for two years with full federal funding.

• New or renewing plans must provide coverage of contraceptives without cost sharing as part of preventive health (certain plans excluded).

• Employers must notify employees of the availability of exchanges and coverage options.

• Health plans intending to offer a product in an exchange must be certified as a “qualified health

plan” ensuring that they meet benefit and rate standards.

• Open enrollment for individuals and small businesses to participate in the exchange begins in October. For South Carolina, this will be a federally operated exchange.

• Medicare begins its “bundled payment pilot program” to pay providers a bundled rate for all services associated with certain episodes of care.

• A reduction of 75% in the Medicare Disproportionate Share allotment currently made to hospitals begins with subsequent re-allocation based on the percent of the uninsured population and the amount of uncompensated care provided.

• The reduction to the Medicaid Disproportionate Share allotment begins subject to a methodology to be developed by the HHS Secretary.

Robby Kerr is the president and founder of Kerr & Company, a private consulting firm. He has worked in state government for more than 20 years and is a former director of the South Carolina Department of Health and Human Services.

Senator Thomas Alexander B y T homas M ullikin

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homas Alexander is a busy family man, small business owner, devoted church leader and outdoorsman. Equally important is his South Carolina legislative service, where he has fought for more than 25 years to ensure the Palmetto State maintains one of the best business climates in the country.

Earlier this year, Senator Alexander made history in South Carolina when he assumed the chairmanship of the Senate Labor, Commerce and Industry Committee, the same committee he chaired in the South Carolina House of Representatives. This distinction makes him the first in recorded state legislative history to rise as chairman of this business committee in both bodies of the General Assembly.

Working for his constituents is always first priority.

Senator Alexander has often been heard saying, “as long as the wonderful people in my district allow me to serve them, I will do everything I can to ensure that their state supports them.” Further, Alexander said, “Any success that I have in the legislature is a result of the good Lord and the support of the people of Senate District No.1.”

Alexander is a noted health care expert and serves as the chairman of the Health and Human Service Subcommittee of the Senate Finance Committee.

Senator Alexander graduated from Anderson College in 1976 and Clemson University with a Bachelor | S o u t h C a r o l i n a B u s i n e ss

of Science degree in 1978. began in 1981 when he He subsequently became represented his community the owner of Alexander on Walhalla City Council and Office Supply in Walhalla, became Walhalla Mayor SC. Additionally, he is the Pro Tempore. He was then president and operator, of elected to the South Carolina Oconee Office Supply and House of Representatives in Cleveland Gospel Supply.

1987 where he served for He lives in Walhalla with his eight years. In 1994, he was wife, Lynda, along with their elected to the South Carolina children and grandchildren.

Senate, where he has served Throughout his career, for 18 years. Currently, he is Thomas Alexander has been a member of the Banking very involved in his community and Insurance, Finance and serving as a past Sunday Medical Affairs Committees, School superintendent, a and is chairman of the Labor, lifelong member of Walhalla Commerce and Industry Senator Thomas Alexander Presbyterian Church and Committee. church elder, Blue Ridge Bank board member, Lions Over the years, Senator Alexander has been a Club president, Walhalla Sertoma Club president, strong leader on legislative issues such as fighting Walhalla Chamber of Commerce board member, crime, reforming healthcare, restructuring government, Walhalla Downtown Association vice president improving the economy, reducing taxes and improving and board member and Carolina Office Products public education.

Association board member.

Senator Alexander has been representing South Thomas S. Mullikin is managing partner of the Mullikin Carolinians for over three decades. His political career Law Firm.

B y T im T immons

Stresses of elder care are hitting the workplace

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oday, more than 44 million Americans are providing some level of care for a senior family member, with 60% representing a portion of the workforce. As employees’ child care issues begin to decrease over time, the demands of elder care are ramping up. Many workers are sandwiched between caring for their children, their parents and trying to perform their jobs.

While this is not a new concern, it is a more relevant issue for employers today as parents live longer and many wait until later in Employees are less productive at work when they are worried about caring for an elderly family member. life to start families. Additionally, there is a proliferation of double Recently, the AARP completed a national survey Governor’s Office on Aging sponsors a Family income families and tremendous strides have been made to improve health care for the elderly. All of of 6,139 adults. Of those, 935 were employed Caregiver Support Program, and the AARP provides helpful information at www.aarp.com. these factors are coming together and creating strains caregivers. The data showed the following: Experts are predicting more businesses and on the workplace for those caring for senior adults.

• 92% reported changes in their working policymakers will help caregivers balance their work Texas Instruments’ manager of work/life patterns and family responsibilities once they understand that strategies said you only have to look at population such assistance can avert looming worker shortages. trends to understand how big this issue will be. The • 83% said they arrive late, leave early or take The key for all employers is to recognize the typical caregiver is a 46-year-old woman who works time off during the day challenges and make plans to assist employees who full-time and looks after a chronically ill 77 year-old are struggling with this very real issue. Remember, mother. Some men and women are even “suitcase” • 41% reported they have taken a leave of they feel sandwiched between caring for their elderly caregivers, logging thousands of miles each year to absence parents, their children and performing their jobs. care for aging family members located in other states.

Caregiving usually adds 18 hours to the 40 hours • 37% said they had to go from full-time to Tim Timmons is vice president of human resources most workers clock at the office. Employees may be part-time employment for the South Carolina Chamber of Commerce. at work, but are they really focused and engaged?

Not surprisingly, 44% of working caregivers For employers, the impact is also overwhelming. report that their own health has suffered as a result of these types of demands. As an employer, this is Employees are less productive at work when they are concerning because of increased healthcare plan worried about caring for an elderly family member.

Employee caregivers are required to change their costs.

The overall cost of absence to care for a loved one schedule often with little to no notice.

This issue may only compound over time as caring is certainly not limited to medical expenses. Health crises among the elderly often require immediate for aging parents will continue to be a workplace attention. It is difficult to reach doctors and services issue. The most progressive employers will seek out while maintaining your job, adding stress and making assistance for their employees to minimize the impact it difficult to focus and remain at work. This includes on the workplace. Those employers who sponsor work interruptions, lack of focus, mental and physical employee assistance plans should ensure they are stress and other related issues, which cost employers fully involved and prepared to assist workers. There are other resources readily available. The Lieutenant more than $34 billion per year.

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ECONOMIC DRIVERS

Do your employees feel like a sandwich?

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ECONOMIC DRIVERS 10

Greenville event marks transformation of biomedical industry B y W ayne R oper

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ounding jackhammers and clattering construction aren’t typically a great backdrop for a business conference, but for South Carolina’s Biotechnology Industry Organization (SCBIO), the remodeling work at the Hyatt Hotel in downtown Greenville was a fitting metaphor for the transformation of the state’s biomedical sector.

More than 200 researchers, biomedical industry executives and entrepreneurs attended the SCBIO “What Next?” conference last November that focused on the continuing innovations in medicines, vaccines, medical devices, medical equipment, diagnostics, testing and biomedical manufacturing.

The conference marked a turning point for SCBIO as the member-driven, statewide industry association with a mission to advance these life sciences businesses.

That momentum is continuing with SCBIO’s annual Life Sciences Industry Day in Columbia and by leading 12 partners in economic development, research, and bio business to BIO 2013 in Chicago, where industry partnerships can be forged.

“Our annual meeting in Greenville this year set a high water mark in the participation of biomedical industry executives and entrepreneurs,” said Michael Bolick immediate past chairman of SCBIO. “It drove home that South Carolina’s growth-oriented life sciences business community will help our state grow important high wage jobs right here at home.”

Life sciences employment has grown 45% in the last 10 years, to about 15,000 South Carolinians in 985 biomedical businesses. The $55,233 average annual wage is roughly 85% higher than the state average, according to a 2012 Battelle Institute study.

Furthermore, 76 medical device and equipment companies – about half in the Upstate – grew 15% more jobs in the three toughest years of the recession, employing 4,200 people.

Governor Nikki Haley’s proclamation of Personalized Medicine Awareness Day last year kicked off the SCBIO’s two-day conference, featuring Presidential Medal of Science winner Dr. Leroy Hood of the Institute for Systems Biology.

Personalized or “precision medicine” matches the right treatment to a patient’s unique genetic characteristics and promises to be a growth industry for the Upstate. Recently, Greenville-based Selah Genomics bought out Lab21’s U.S. operations and its clinical genomic center at the GHS Institute for Translational Oncology Research (ITOR). Within ITOR is the home of KIYATEC, a 3-D cell culture startup.

In York County, Physicians Choice, a diagnostic testing lab service, announced it was moving its headquarters from Charlotte with 334 people and a $24 million investment.

In Spartanburg, Gibbs Cancer Center announced the establishment of the Gibbs Cancer Research Institute

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More than 200 researchers, biomedical industry executives and entrepreneurs attended the SCBIO “What Next?” conference last November that focused on continuing innovations in medicines, vaccines, medical devices, medical equipment, diagnostics, testing and biomedical manufacturing. that will hire as many as 10 principal investigators for government-funded research.

“We are seeing a real interest in commercialization of research, starting companies and building medical device and pharmaceutical companies,” said Tom McLean, current chairman of SCBIO, and vice president of Norgenix Pharmaceuticals, a company he helped start with JM Smith Corp. in Spartanburg.

Among those is CreatiVasc, a company focused on late-stage dialysis patients, that was among only three in the country to be fast-tracked by the FDA’s Innovation Pathway program to speed breakthroughs to market.

“We are seeing more partnerships and more connections grow from these efforts to generate great companies and great jobs here in South Carolina,” McLean said. “SCBIO is the door connecting these innovators to the rest of the state, the country and the world.”

Wayne Roper is president of SCBIO.

Dr. Timothy Yeatman, Gibbs Cancer Center, (l-r); Dr. Steve Skinner, Greenwood Genetic Center; Dr. Gary Spitzer, Bon Secours, St. Francis; Presidential Medal of Science Winner Dr. Leroy Hood (center with proclamation) Wayne Roper, SCBIO; Dean Sproles, Iverson Genetics; Dr. Kathleen Brady, MUSC; Jeff Edenfield, GHS ITOR; and Michael Bolick, Selah Genomics celebrate the governor’s proclamation of Personalized Medicine Awareness Day on Nov. 13, 2012 .

Welcome, Metglas®.

Before the first amorphous alloys were ready for market. Before the first metal was heated and cooled.

Before the lights came on for the first time. Santee Cooper formed a bond with Metglas to expand their manufacturing facility, bringing more than 100 new jobs to Horry County.

By partnering our low-cost, reliable power and development opportunities with our state’s attractive tax base, relocation incentives, and an unparalleled quality of life graced with Southern hospitality, Santee Cooper helped Metglas expand in South Carolina. And continues to power South Carolina toward Brighter Tomorrows, Today.

POWERING S.C. www.scprimesite.com

South Carolina’s Medicaid Debate

Medicaid expansion is good for South Carolina’s economy B y T hornton K irby

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o far the political debate over Medicaid expansion has been about budget impact and the role of the federal versus the state government. But this debate is really about people.

Under the Patient Protection and Affordable Care Act, every state has the option of receiving money from Washington to provide Medicaid coverage to citizens living at or below 138 percent of poverty. That’s about $31,000 per year for a family of four and $15,000 for an individual.

From 2014 through 2016, the state can draw down 100 percent of its costs to cover those newly eligible Medicaid recipients; no state dollars are required in the first three years.

The portion of costs covered by the federal government will decline slightly between 2017 and 2019 but will never fall below 90 percent.

For South Carolina, total federal funding available is more than $11 billion during the first seven years, starting in 2014.

Those federal funds are tax dollars that have been paid by South Carolina businesses and workers. Now we have an opportunity to send them to other states to expand coverage to their uninsured citizens or bring them back to our state in a way that invests in our people’s health and our state’s economy.

Approximately 250,000 uninsured South Carolinians would gain health care coverage under a state expansion of Medicaid.

The vast majority of these are workers who can’t afford to pay their share of premiums or whose employers don’t offer health insurance. Others are workers who lost their jobs and health insurance during the recession.

When they get sick, they have few options except the hospital emergency room, where federal law requires the treatment of anyone needing care, regardless of ability to pay.

Their lack of coverage creates a direct and significant cost to privately insured patients and their employers who pay higher premiums to cover the cost of uninsured patients.

If our legislators say no to Medicaid expansion, they will be saying yes to cost shifting.

And the cost shift will increase.

When the Affordable Care Act was passed, hospital leaders agreed to future payment cuts so the savings could be reinvested to help more Americans obtain health insurance. If more people had insurance, there would be less cost-shifting. The cuts were put into the law, and South Carolina hospitals will experience more than $2.6 billion in reimbursement cuts between 2014 and 2020.

Bottom line: South Carolina hospitals will help pay for a Medicaid expansion regardless of what the state of South Carolina decides to do.

If we leave 250,000 South Carolinians uninsured, the $2.6 billion in payment cuts will become part of the uncompensated care burden on businesses. And that will make South Carolina businesses less competitive, not more competitive.

Another reason to support Medicaid expansion is the very positive economic benefit to our state. According to a study by researchers at the USC Moore School of Business, adding $11.2 billion to South Carolina’s economy will create 44,000 new jobs and $3.3 billion in state economic activity by 2020.

Of course the simplest way to calculate the return on investment is to look at the

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federal-state match. If your business were considering an investment that returned nine dollars for every one dollar you invested, would that investment be attractive?

Of course it would.

South Carolina has used this simple ROI calculation before, wisely investing millions of state dollars to attract companies such as BMW and Boeing. We’ve also invested countless state dollars to draw down federal highway funds over the years.

It’s perplexing to see such adamant political opposition to Medicaid expansion.

Governors in other states are beginning to soften their opposition because business leaders have questioned the wisdom of foregoing such a healthy return on investment.

Every South Carolinian deserves care and compassion when sick or injured, regardless of their financial circumstances. But the more care we provide without payment, the higher the cost will be for patients with insurance.

That business model isn’t fair to the businesses that pay most of the health insurance premiums in our state, and that’s one of the key reasons we supported the Affordable Care Act—to put an end to cost-shifting.

But if South Carolina doesn’t expand its Medicaid program, cost-shifting will get worse, not better.

This year, the United Health Foundation ranked South Carolina the 46th healthiest state in the nation. And now the other 49 states are offering to help us improve that ranking by paying 90% of the cost for caring for uninsured patients. We can accept their offer and limit our exposure to 10%, or we can say “no thanks” and bear the full 100% by shifting the costs around inside our own borders.

The South Carolina Hospital Association strongly supports expansion of the Medicaid program and urges the business community to join us in our efforts to make sure that South Carolina isn’t left behind this time.

Thornton Kirby is president and CEO of the South Carolina Hospital Association.

Invest in improving health in South Carolina B y A nthony K eck

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veryone agrees we need a healthier state, and no one can deny that we have made health a priority in Governor Nikki Haley’s administration.

We have eliminated deficits, reduced unit costs and improved quality of care. We have redirected many of those savings to reduce waiting lists for disability services and increase coverage of our state’s poorest children.

However, we are in no way close to delivering the value taxpayers deserve for the $6.5 billion we are asking them to spend next year on Medicaid.

Two important evidenced-based conclusions are the foundation for our strategy to improve.

First – health, health care services and health insurance are not interchangeable.

Research shows that 80-90% of health is driven by income, education, personal choices, genetics and family and community support. Health services make up the rest. Having health insurance is no guarantee of receiving effective health services.

Second – increasing health care expenditures eat up more of our payrolls and government budgets each year, which crowds out investment that ultimately contributes more to health.

Too much spending on health care services is depressing economic growth.

Every dollar more businesses spend on premiums is a dollar less paid in wages, invested in new capital or used to hire more employees. Every dollar more the state spends on Medicaid and state employee benefits is a dollar less that can be spent on transportation, education and tax relief.

We are in a vicious cycle where more health services spending crowds out spending in employment, income and education - the primary drivers of overall health.

The Institute of Medicine concludes that 1/3 of all health care spending - $765 billion in 2009 - is excess cost that does nothing to improve health.

The Affordable Care Act does not decrease dollars spent in our health system, it actually increases them by almost $1.2 trillion over the next decade. Today, 17.9% of GDP goes into health care. In 2020, the federal government predicts that will grow to 19.2%.

Ignoring evidence that more spending is not necessary for better health, the South Carolina Hospital Association argues that they were “promised” a Medicaid expansion as part of the deal they made with President Obama to reduce Medicare expenditures – a massive cost shift to the states. In a health care reform bill that should be reducing health care costs, the hospitals actually stand to make more money than before!

Our approach is instead focused on purchasing the most health for our money.

There is currently enough money in the system to improve health for everyone. We have removed hundreds of millions of excess cost in Medicaid in the past two years. Working with employer coalitions, we have tied millions in payments to our health plans and providers to performance.

The budget heading to the House floor for debate continues this push for accountability by incentivizing hospitals that agree to improve transparency in pricing.

These incentives are paid for with savings from the past year – there is no new money.

We must gain a better understanding of how the private insurance market for individuals and groups will change over the next three years.

Even without Medicaid expansion, more than 500,000 additional people currently uninsured in South Carolina are expected to gain access to affordable insurance.

Projections for Medicaid enrollment depend heavily on individual and employer

decisions regarding private insurance coverage. If private insurance premiums increase as expected under Obamacare, this could lead to a flood of unexpected enrollment in Medicaid beyond what we can afford.

The House budget requires that in return for $461.5 million in funding that hospitals currently receive to treat the uninsured, they must provide detailed information about these individuals and services delivered. It also requires hospitals to begin collecting information establishing if an individual has access to any other means of payment other than state funds.

We need to reinvest Medicaid savings wisely. Some should be redirected towards other purposes like education, infrastructure and job growth. Some should go towards reducing waiting lists for services previously promised to individuals living with disabilities. And some should be reinvested in geographies and populations where health outcomes are the worst.

The House budget requires that hospitals receiving the incentives also enter into an agreement with primary care clinics that serve the uninsured to reduce the use of emergency room visits by uninsured individuals living with chronic illnesses. The House also redirects funds to these clinics to co-manage these individuals with hospitals and set performance measures tied to reductions in emergency room use. It directs the South Carolina Department of Health and Human Services to eliminate these incentives if cost savings of equal or greater value are not achieved.

Additionally, the House budget requires that teaching hospitals and physicians, which currently receive almost $200 million a year to train physicians in South Carolina, implement programs that train the right type of physicians and get reimbursed based on success in reducing physician shortages.

The state should continue to press for more flexibility from the federal government to manage health care appropriate to our needs. We believe in more accountability in return for more flexibility. States can begin applying for waivers from key provisions in the Affordable Care Act starting in 2017. We should prepare.

It is important to note that the South Carolina Medical Association (SCMA) takes a much different approach than the hospitals. “While the SCMA agrees with finding solutions to provide health care to all South Carolinians, we are concerned that the Medicaid expansion is a temporary and unsustainable fix that is not the solution for the long-term health issues facing South Carolina.”

South Carolina’s physicians are not rushing into expansion and neither should businesses and taxpayers. While other states like California, Illinois and New York are raising taxes, cutting services and reducing Medicaid reimbursement so low that providers are giving up on Medicaid patients, South Carolina is investing in improving health.

Anthony “Tony” Keck is director of Health and Human Services for Governor Nikki R. Haley.

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Medical University of South Carolina Children’s Hospital

Dr. MICHELLE HUDSPETH

March~April 2013 Centerfold

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B y J ean C ecil F rick

P hotography by S andy A ndrews

f you know the lyrics to the song, “Oh Happy Day,” you know it is a song of rejoicing. If your child was diagnosed with cancer, needless to say, you would not feel like rejoicing. However, if your child was in need of a bone marrow transplant, you would be given new hope with a treatment available in South Carolina, thus allowing for a truly happy day.

One of the providers of that hope is Dr. Michelle Hudspeth, a pediatric oncologist at the Medical University of South Carolina Children’s Hospital in Charleston. Dr. Hudspeth is the director of the Pediatric Bone Marrow Transplant Program- the only one of its kind in the state.

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Make it happen

March~April 2013 Centerfold D r . M ichelle h u dspeth

Medical University of South Carolina C h i l d r e n ’s H o s p i t a l A passion f or pediatrics udspeth grew up in South Carolina and has deep family roots in the Palmetto State. As a child, she knew she had the keen desire to enter pediatrics and recalls her father saying she would become a doctor one day. In fact, she is the only person in her family to ever go into the medical field, and it is a passion she takes very seriously.

She enrolled at Wofford College in Spartanburg for undergraduate school and went on to the Medical University of South Carolina (MUSC) where she graduated at the top of her class. Dr. Hudspeth’s success led her to a pediatric residency and fellowship in pediatric hematology and oncology at Johns Hopkins Hospital in Maryland.

At Johns Hopkins, she was honored by her colleagues with the David M. Kamsler Award for excellence and compassion in pediatric care. She also served as chief resident for the Johns Hopkins Harriet Lane Service, where she oversaw 80 pediatric residents and wrote chapters on hematology, immunology and oncology for the Harriet Lane Handbook, a best-selling pediatric guide.

In short, South Carolina was lucky to have Dr. Hudspeth return to her roots.

Hudspeth was recruited to MUSC in 2007 to lead and expand the stem cell transplant program. By 2008, the number of pediatric transplants had increased by 125%.

“The children of South Carolina are very lucky that one of our own, Dr. Michelle Hudspeth, a South Carolina native, returned to South Carolina and MUSC to provide the very best care for children with cancer,” said Dr. Rita Ryan, chair of the Department of Pediatrics at MUSC Children’s Hospital.

“Not only is she personally committed to this goal but she has built and is continuing to build and lead, frankly, a ‘top-tier’ A+ pediatric oncology program that will serve our state and its children very well,” Ryan continued. “For example we are the only site in South Carolina that does pediatric bone marrow The Child Life Atrium is designed to meet the play and activity needs of children and their families during hospitalization.

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transplants and Michelle has now recruited a new faculty member, Dr. Amy-Lee Bredlau, who is a specialist in pediatric neuro-oncology and will lead our Pediatric Brain Tumor Program.”

MUSC Children’s Hospital is award winning and has consistently been ranked in the U.S. News & World Report listing for the best children’s hospitals. Most recently, it was one of 80 facilities that made the rankings in at least one of the 10 specialties analyzed for the 2012-13 Best Children’s Hospitals with rankings for cardiology and heart surgery as well as gastroenterology. There is no doubt that with the dedication of Dr. Hudspeth, hematology and oncology will one day be included as well.

B eating the odds Hudspeth says, “Kids in South Carolina should not have to go out of state to get the best care.”

She couldn’t have said it better.

Childhood cancer is the No.1 cause of death from disease in children in the Unites States, more than from asthma, diabetes, cystic fibrosis, congenital anomalies and pediatric AIDS combined. It is the second leading cause of death in children overall, after accidents.

One of the biggest determinants of a child’s survival after a bone marrow transplant is their socioeconomic status, regardless of race. Twenty-four percent of all South Carolina children are below the poverty level, 28% in the Charleston region alone. South Carolina ranks 9th out of 50 states for the highest percentage of children living in poverty.

These statistics shouldn’t prevent a child from getting the critical care they need in their home state, and they don’t. It is a huge sacrifice for families when they are faced with a sick child and numerous days in the hospital. If they had to go out of state, they risk not getting reimbursed under another state’s Medicaid and furthermore they would have costly travel expenses.

There are approximately 75 new childhood cancer diagnoses seen annually at MUSC. Dr. Hudspeth treats between 25 and 30 patients a year with a blood or marrow transplant, and her division has served patients from 74% of the counties in South Carolina.

P roviding new hope Her enthusiasm for the children she treats is contagious. On the day we met, she had just wrapped up meeting with a patient who was going through his second bone marrow transplant, and she had promised him a bag of Skittles. As soon as she left our visit, she went straight to the sundry shop to take her patient his surprise.

If a child goes through a bone marrow transplant to treat their cancer, there is a 100 day minimum stay within 30 minutes of the hospital. A child is most at risk for complications during this timeframe. Typically, the first four to six weeks are spent in the hospital. Imagine the strain that puts on families, but with care from doctors like Hudspeth, it makes daily life bearable.

Day Zero, or transplant day, is the day a child receives donated cells, wiping out his or her immune system. It is a transfusion with what Hudspeth refers to as a “little bag of hope.”

“Kids in South Carolina should not have to go out of state to get the best care,” says Dr. Michelle Hudspeth, who is passionate about connecting with her patients.

For many, this could be a day of fear and anxiety, but Dr. Hudspeth makes it a day of hope and tells children it is their new birthday – a day of rejoicing and singing “Happy Day Zero.”

Hudspeth says, “Day Zeros are the best part of my job. It is a new chance at life for the children I treat, offering them a renewed hope.”

The Pediatric Blood and Marrow Transplant Program offers a number of clinical trials through the Children’s Oncology Group, the Pediatric Blood and Marrow Transplant Consortium, the Blood and Marrow Transplant Clinical Trials Network, as well as investigator-initiated trials.

MUSC Children’s Hospital is a member of the Children’s Oncology Group (COG), the world’s premier pediatric cancer research collaborative. This network of more than 200 hospitals and 5,000 healthcare professionals is dedicated to finding answers and sharing results to cure cancer. COG members have been the primary innovators in new treatments for children with cancer.

Finding the perfect match Another important part of providing a transplant is finding a tissue type or HLA match. Within families, a brother or sister only has a 25% chance of being a match.

It can be especially challenging for minorities, as matches tend to run along ethnic lines and fewer minorities participate in donor programs. For most, the best chance at survival is a transplant from an unrelated bone marrow donor or cord blood unit. Hudspeth looks at millions of donors across the world through the National Marrow Donor Program.

She doesn’t take looking for matches lightly. Knowing there is a tremendous need for more donors, Hudspeth decided to add her name to the national registry.

Shortly after giving birth to her daughter, she was notified that she was a match for a 50-year-old mother of three in Philadelphia. Hudspeth became a giver of life to two people that year, practicing what she preaches.

Hudspeth’s motto is “make it happen” and MUSC’s outcomes prove that she exceeds all expectations. The program has outcomes well above the national averages. In 2012, her patients had a 100% survival rate on both Day 100 and on their one year anniversaries for those receiving autologous stem cells. There was an 88% survival rate on Day 100 and 85% on one year anniversaries for those receiving allogeneic stem cells.

Having a world-class children’s hospital keeps South Carolina on the leading edge. As businesses look to locate in the state, the medical community can be proud knowing it offers the best care available to the state’s children and their families.

“To be able to provide this level of care to the state without families having to travel outside, I think, is a really critical mission,” Hudspeth states. “Our goal is really to provide them with any cutting-edge therapy they need that we can provide here and they don’t have to travel elsewhere.”

For any family faced with cancer, there is fear, but Dr. Hudspeth is passionate about providing hope and making it happen for the children of South Carolina.

Jean Cecil Frick is the multimedia manager at the South Carolina Chamber of Commerce and the editor of South Carolina Business.

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Dr. Hudspeth looks on as U.S. Senator Tim Scott (R-SC) delivers a valentine to one of her patients.

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Protecting the

privacy and security of health information Why is it so complex and so difficult to accomplish?

B y J eanne B orn

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othing makes people sit up and take notice of the importance of privacy and security than when there is a huge information breach.

Such is the case in the recent breach that could impact the financial security of 6.4 million South Carolina taxpayers. With so many laws protecting various forms of information, how does such a massive breach occur?

The simple truth is three-fold. First, there are a lot of very smart and savvy people in information technology who find ways to hack in and get the information they want. Second, it is costly to develop and implement the procedures and technology that are necessary to protect information. Third, the highly complex legal framework that is designed to protect our most sensitive and private information is not sufficient. This includes health information.

South Carolina’s breach last year involved financial data, including social security numbers. What would happen if there was a sizable breach of sensitive health information in our state? It’s possible. In fact, the U.S. Department of Health and Human Services Office reports that there have been more than 530 breaches of protected health information that affect more than 500 individuals. It is frightening.

To understand how difficult it is to keep health information private and secure, it is important to know a little about how health information is created, stored, used and disclosed. Most people do not realize that health information is the property of the health care provider, not the patient. Although the patient has strong rights for accessing their information, those rights are not limitless.

Health care providers create a chronological account of an individual’s health care information and that information is recorded and retained by the provider for various purposes. While patient care is the most important use, it can also be used, and disclosed for quality reviews, educating health care professionals, responding to legal process requests, complying with state and federal reporting requirements, providing a defense in a malpractice action or a disciplinary action, and so on.

Until recently, health information was created and retained in paper form.

These records were typically stored in a storage area in their original form for a predetermined retention period as specified by law. As technology progressed, health care providers began storing their paper records on microfilm primarily for the purpose of saving storage space, but also to make retrieval more efficient.

Today, more and more health care providers and facilities use computers to record and store patient information. In fact, there are incentives for them to do so. The trend is moving toward the development of centralized systems, such as electronic health information exchanges, where all of an individual’s health information, from birth to death, will be electronically stored and then accessed through universal health care identifiers. The creation and maintenance of this type of electronic record for every individual is highly likely.

At this time, much of a health care provider’s time and energy is dedicated to obtaining health information from other providers. If a health care provider cannot obtain the information, then he or she may need to duplicate at least some of it in order to provide health care services. Consequently, there is much duplication of information. Think about how many times you have provided the same information to a different health care provider. What’s more, providers frequently repeat testing,

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including labs and x-rays, because they do not have ready access to another provider’s records.

Centralized access to all of an individual’s health information has obvious benefits, including improved care and decreased costs. However, a centralized database increases the risk of unauthorized access. This reality has many concerned that this accessibility can and will be abused.

Until the mid-1990s, the protection of health information was largely left to the states and existed as a patchwork of inconsistent and largely inadequate laws.

As the transition to electronic records gained momentum, Congress enacted the Administrative Simplification provisions of the Health Insurance Portability and Accountability Act (“HIPAA”) in 1996 for the purpose of standardizing and simplifying the transmission of health information between health care providers and health plans. It was the country’s first step in establishing national standards for the protection of health information.

After the passage of HIPAA, came the publication of regulations including the standards providing for unique identifiers for health care providers, health plans and employers. In addition, regulations were published that standardize the methods by which all electronic transactions are coded and then transmitted between health care providers, health care clearinghouses and health plans (collectively the “Covered Entities”). Today, every single transmission of electronic health information is standardized; every Covered Entity uses the same electronic transmission standards and coding. This also creates an increase in the potential for breaches of privacy and security.

To address these concerns, additional HIPAA regulations generally known as the Privacy Standards and the Security Standards were published. The Security Standards require that Covered Entities conduct a security risk assessment and implement appropriate administrative, physical and technical safeguards to protect the integrity and security of electronic health information. Interestingly, however, the Security Standards do not require encryption.

The Privacy Standards require health care providers and health plans to develop and implement a complex set of policies and procedures to address various health information privacy issues. Examples of privacy issues that must be addressed in the Covered Entity’s policies and procedures are: (1) providing a notice to individuals about how the Covered Entity uses and discloses their health information; (2) providing the individual access to his or her health information; (3) providing a method to request amendment of health information; (4) providing a list accounting what disclosures of an individual’s health information have been made; (5) training of the Covered Entity’s workforce about all of its policies and procedures; (6) providing the guidelines for how every type of use or disclosure of health information is handled, such as disclosures to law enforcement, responding to legal process such as subpoenas, disclosures to governmental agencies; and (7) setting forth the Covered Entity’s enforcement policies.

Last, but certainly not least, the Enforcement Standards were put into place to ensure that Covered Entities comply with HIPAA. The OCR, the federal agency that enforces HIPAA, typically allows for an informal resolution of privacy related complaints and, to date employs more formal means only when the informal processes fail.

In 2009, Congress passed the Health Information Technology for Economic and Clinical Health Act (“HITECH”). HITECH made many updates to the HIPAA regulations to strengthen the privacy and security of health information. Particularly, HITECH made it clear that most of HIPAA and its implementing regulations (including the enforcement provisions) apply to “business associates.” These are generally the vendors that provide a function on behalf of the Covered Entity and the business associate needs to have health information to accomplish the function. HITECH also set forth new requirements for Covered Entities and business associates to deal with breaches of “unsecured protected health information” including new reporting requirements. In addition, HITECH set forth the new financial incentives for certain health care providers, to “meaningfully use” “certified electronic health records.” Following HITECH, additional regulations were created to implement the breach provisions, standards for meaningful use and certified health records technology and much stronger enforcement provisions.

Many Covered Entities and their business associates are grappling with compliance with these highly technical regulations. Health care providers who are eligible for financial incentives for meaningfully using health information technology are struggling with implementation and compliance because the future stages of

implementation are unknown. There are still many health care providers out there that have not entered into the realm of fully computerized systems. Instead, they have merely transferred the content of their traditional paper records to stand alone computer systems.

One would think, with the myriad of HIPAA/HITECH regulations, that health information would enjoy iron-clad protections. That is not the case. The Security Standards do not require that electronic health information be encrypted; it does require, however, that the Covered Entity address whether encryption is a reasonable and appropriate safeguard in its environment and if not, why not and, what alternative security measure is used instead? The meaningful use and certified electronic health record technology regulations are applicable to some providers (on a voluntary basis) and require that certain transmissions and end-user devices capable of storing electronic health information be encrypted. But, health care providers are not required to encrypt health information on their servers. Certainly, any holder of health information can voluntarily employ encryption. Encryption technology, however, remains cost prohibitive to some.

We have come a long way with the legal protections for health information since 1996. The laws do not keep pace with the rapid development of technology.

There is still a great deal of unencrypted health information out there and hackers may be looking to gain access to it. Everyone who is subject to the HIPAA/HITECH rules struggle to comply with a complex web of regulations, most of which are meant to “simplify” the transmission of health information. Everyone needs to remain vigilant in their efforts to protect the privacy and security of health information, especially when lawmakers try to “simplify” the process.

Jeanne Born is a health care attorney at Nexsen Pruet. Her practice is focused on hospital and long term care law, risk management, health information and technology including HIPAA/HITECH. She is a registered nurse with experience in general medical/surgical nursing, medical/surgical neurology, and nursing management.

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MEMBER SPOTLIGHT

Select Health of South Carolina Helping people get care, stay well and build healthy communities B y S usan H ill S mith

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s the first and largest Medicaid managed care organization in the state, Select Health of South Carolina and its First Choice plan serve more than 250,000 residents. Select Health has a proven track record in providing high quality, cost-effective health care, earning an Excellent Accreditation rating from the National Committee for Quality Assurance (NCQA).

Select Health also has helped the state save more than $200 million in the last five years.

“Many in our country are looking for solutions to the health care cost crisis,” said Mike Jernigan, Select Health president and CEO. “Our approach to member engagement through coordinated care has proven to be a smart way to serve those who receive Medicaid, and we know it will work successfully for other groups as well.”

The organization’s prevention-based approach helps people get care and stay well while also building healthy communities. These interwoven goals require teamwork and have led Select Health to reach outward in many innovative ways.

That was clear last spring when a group of Select Health associates, including many of its top executives, arrived by dawn’s light at Pinehurst Park in Columbia on a Saturday morning for a project that truly would require serious physical labor. After many months of planning with community partners, including the city of Columbia, the team spent the day spreading two tons of mulch and building a new playground for the families that live in the surrounding neighborhood, many of whom are First Choice plan members.

“I can’t think of a better symbol of a healthy community than a welcoming playground that encourages children, as well as the adults who care for them, to leave the couch behind and get active,” said Select Health Executive Director Cindy Helling, who dug into the project personally, as did Jernigan.

“The best part of the day was when we wrapped up construction, and a crowd of kids ran over to try the slides and the rest of the equipment,” said Jernigan. “The children’s reaction to the playground confirmed we had made a fantastic investment in the community’s future, which is really what Select Health does every day through prevention-based health care.”

Throughout the state, Select Health works with more than 2,000 primary care physicians and

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The First Choice Community Center holds free preventive health education events throughout the year.

6,000 other providers, including specialists and pharmacists, to ensure high quality health care for its members. When asked about overall satisfaction with Select Health in a survey by an independent research firm, 87.9 percent of health care providers who responded said they would recommend First Choice to their patients and other physicians.

Select Health also Residents of Columbia’s Pinehurst Park neighborhood now enjoy a safe place to provides a wide range exercise and play. of support services, including its Bright Select Health reinforces these efforts by StartSM program for moms-to-be and newborn partnering with local businesses, government agencies babies, as well as education and care management and community groups to improve health and overall programs for members with chronic conditions quality of life. A few examples include: such as asthma and diabetes. Select Health aims to prevent problems, or identify them early, with • The Health Ministry Empowerment Tour, proper screenings, tests and overall care, while also which brings health screenings, workshops empowering members to take control of their health. and motivational speakers to women in rural

communities each fall, in collaboration with IMARA Woman magazine • Backing and support for Eau Claire Cooperative Health Centers’ Innovations Health initiative, which links Medicaid and Medicare patients to health coaching and primary care in their homes and local neighborhoods • Jump-Start Back-to-School events, sponsored

by Select Health at summer’s end in several South Carolina cities, with help from a collection of community partners. Hundreds of students each receive a backpack full of school supplies, register for free and reduced lunches and receive important health information, while also enjoying fun activities.

The Jump-Start Back-to-School events originated at the First Choice Community Center in Columbia in 2009, the first year the center opened. Located in an easily accessible shopping complex, the First Choice Community Center encourages members and others in the community to use its resources throughout the year. In addition to information about the First Choice plan, the center also offers health education, notary services and more. At the same time, community partners can use the space at no cost.

The impact the Community Center is having can be seen on a personal level through the story of Danita, a single mom who went to the First Choice Community Center for help. Over time, she found support there as she rebounded from job loss and took her career in a new direction. “It has been a blessing,” said Danita, whose young son became a member of the First Choice plan. Also, seeing her strong desire to help others, the staff asked Danita to join the First Choice Community Advisory Committee to provide a voice for those served by the plan.

The Community Advisory Committee also includes representatives from a variety of organizations, including the South Carolina Hispanic/Latino Health Coalition, the American Cancer Society and the Midlands Interagency Coalition. Together, they are working to eliminate health care disparities across the state. The committee is part of Select Health’s pioneering efforts to provide culturally and linguistically appropriate services in an effort to achieve health equity for all. Select Health was one of the first six health plans in the country to receive the NCQA’s prestigious Multicultural Health Care Distinction in 2011 and is still the only one in South Carolina to hold it.

As South Carolina’s hometown health plan and its highest nationally ranked (#42) Medicaid health plan, according to NCQA, Select Health recognizes its most valuable resource, the 315 employees who daily breathe life into the mission through their caring and concern for First Choice plan members.

“Building healthy communities is a big job that no one can do alone,” Helling said. “To be successful, we must build connections, relationships and partnerships, and through it all, we must build trust.

When we work together, we are stronger, and we are healthier.”

Susan Hill Smith is a freelance writer based in Charleston.

helping you create custom solutions with people

MANUFACTURING SOLUTIONS

We specialize in industrial staffing, professional recruiting, HR services, and complex project management.

We specialize in supporting your facilities with the managed solutions that help you move from good to great.

We’ll work with you to design and set up our operations, and then we’ll meet your goals with objective measurements. We are frequently brought in to assist with one aspect of our client’s business, and later expand to the rest as we gain trust and credibility. We are proud of our strong track record. We invite you to take a tour to one of our current clients so you can see it for yourself.

If a product or component is being produced, assembled, or moved, HTI Manufacturing Solutions can help you do it better, cheaper, or faster. We can help you solve an existing issue or avoid future ones.

We have successfully expanded the thirdparty logistics process to include third-party manufacturing.

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Our mission to help people get care, stay well and build healthy communities serves as our road map. We empower our members to take control of their health and our emphasis on education, prevention and wellness promotes quality of life and keeps health care costs down. In addition, with our Excellent Accreditation rating from the National Committee for Quality Assurance, we have a proven track record in providing high quality health care.

To learn more, read our 2013 Annual Message to the Community at www.selecthealthofsc.com.

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AFTER THE EVENT

Legislative priorities discussed at Business Speaks

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usiness leaders gathered at the Columbia Marriott on Tuesday, January 29 for Business Speaks at the State House. This annual gathering featured a legislative panel discussing top business issues, including the business community’s Competitiveness Agenda, which focuses on infrastructure, workforce development, tax reform and a host of other issues.

The South Carolina Chamber of Commerce also presented 41 South Carolina legislators with the fourth annual Business Advocate Award. The awards are presented to members of the General Assembly who scored 100 percent on the Chamber’s 2012 Legislative Scorecard.

2012 Business Advocate Award Winners H S enate Senator Thomas Alexander (Oconee) Senator Paul Campbell (Berkeley) Senator Ronnie Cromer (Newberry) Senator Greg Gregory (Lancaster) Senator Hugh Leatherman (Florence) Senator Larry Martin (Pickens) Senator Billy O’Dell (Abbeville) Senator Greg Ryberg (Aiken) Senator Nikki Setzler (Lexington) Senator David Thomas (Greenville) Senator Danny Verdin (Laurens)

H H o u se Speaker Bobby Harrell (Charleston) Representative Todd Atwater (Lexington) Representative Nathan Ballentine (Richland) Rick Davis of Elliott Davis, LLC, presenting sponsor of Business Speaks, kicks off the town meeting.

Chairman Mike Brenan presents Speaker Bobby Harrell with a 2012 Business Advocate Award.

Representative Bruce Bannister (Greenville) Representative Eric Bedingfield (Greenville) Representative Kenny Bingham (Lexington) Representative Alan Clemmons (Horry)

The South Carolina House panel addresses Chamber business leaders during the town meeting.

Representative Kris Crawford (Florence) Representative Bill Crosby (Charleston) Representative Greg Delleney (Chester) Representative Tracy Edge (Horry) Representative Dan Hamilton (Greenville) Representative Phyllis Henderson (Greenville) Representative Bill Herbkersman (Beaufort) Representative Bill Hixon (Aiken)

Over 300 Chamber members participate in the town meeting.

Representative Dwight Loftis (Greenville) Representative Phillip Lowe (Florence) Representative Jay Lucas (Darlington) Representative Peter McCoy (Charleston) Representative Wendy Nanney (Greenville) Representative Ralph Norman (York) Representative Phil Owens (Pickens) Representative Kevin Ryan (Georgetown) Representative Murrell Smith (Sumter)

The South Carolina Senate panel answers questions from South Carolina’s business community.

Representative Garry Smith (Greenville) Representative Roland Smith (Aiken) Representative Tommy Stringer (Greenville) Representative Bill Taylor (Aiken) Representative Mark Willis (Greenville) Representative Tom Young (Aiken)

H

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BUSINESS SPEAKS Sponsors Presenting Sponsor Elliott Davis, LLC Platinum SCANA Zeus Industrial Products, Inc. Gold Bank of America Blue Ridge Electric Cooperative BlueCross BlueShield of South Carolina Duke Energy Carolinas and Progress Energy Carolinas FUJIFILM Manufacturing U.S.A., Inc. Sonoco Silver Alcoa Mt. Holly BB & T BMW Manufacturing Co., LLC The Boeing Company Coca-Cola Bottling Co. Consolidated Michelin North America, Inc. Myrtle Beach Area Chamber of Commerce Nelson Mullins Riley & Scarborough LLP Ogletree, Deakins, Nash, Smoak & Stewart, P.C. SC Hospital Association Time Warner Cable Bronze Absolute TOTAL Care Carolinas AGC, Inc. Coleman Lew & Associates, Inc. The Electric Cooperatives of S.C., Inc. International Council of Shopping Centers ICSC Midlands Technical College Piedmont Natural Gas Shaw Industries Group, Inc. Contributors Greater Columbia Chamber of Commerce Greater Summerville/Dorchester County Chamber of Commerce Greater Sumter Chamber of Commerce Kershaw County Chamber of Commerce & Visitors Center McMillan Pazdan Smith Architecture North Myrtle Beach Chamber of Commerce Convention & Visitors Bureau Orangeburg County Chamber Of Commerce Riley Pope & Laney, LLC SC Credit Union League & Affiliates Tri-County Regional Chamber of Commerce

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AFTER THE EVENT

Marie Sitter, SPHR, named 2013 HR Professional of the Year

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he South Carolina Chamber of Commerce and the South Carolina State Council of the Society for Human Resource Management (SHRM) honored the 2013 Human Resources Professional of the Year on February 6 in Columbia. More than 100 business leaders were in attendance as Marie Sitter, SPHR, Span-America Medical Systems, Inc. was named the 2013 HR Professional of the Year.

Other 2013 HR Professional of the Year nominees: John Atkinson, SPHR, director of human resources, Charleston Water System Glen Brown, VP human resources management, Santee Cooper - Finalist Darlene Fisher, SPHR, director of human resources, Anderson University Jennifer Floyd, SPHR, VP of human resources, Canal Insurance Company Diane Frea, SPHR, VP of human resources, The State Media Company Stephanie Hess, director, Continental Tire the Americas, LLC Robyn Knox, SPHR, VP of human resources, Southern Weaving Company - Finalist Ed Parris, president, Phillips Staffing - Finalist Michelle Powell, director HR client services - South, Select Health of South Carolina

2013 HR Professional of the Year Sponsors: Platinum Ogletree, Deakins, Nash, Smoak & Stewart, P.C. (Greenville, Columbia, Charleston Offices) Gold BlueCross BlueShield of South Carolina Columbia SHRM Continental Tire the Americas, LLC Fisher & Phillips LLP McNair Law Firm, P.A. Phillips Staffing S. C. SHRM State Council Santee Cooper SCANA Corporation Select Health of South Carolina Media Sponsor The State Media Company Silver Charleston Water System

Rita Revels of the S.C. SHRM State Council and Gary Williams of

John Creech represents Ogletree Deakins,

the Chamber’s HR Committee present Marie Sitter the 2013 HR

the award sponsor, during the event.

Bronze Alcoa Mt. Holly Food Service, Inc. Jackson Lewis LLP Jim Gray Consultants, LLC Spirax Sarco, Inc.

Professional of the Year Award.

Rita Revels and Gary Williams with the 2013 HR Professional of the Year nominees.

(Upper left) Denise Ryan delivers a motivational keynote address during the dinner.

(Left) Judi Gatson of WIS-TV emcees the dinner.

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MEMBER NEWS Lockhart Power Company announced that it is donating $100,000 to Union County to support of the arrival of the Gonvauto South Carolina steel service center at the Union County Commerce Industrial Park. The facility, which is being built by Gonvarri Steel Service, is the company’s first steel service center in the U.S. Pictured left to right are Andrena Powell-Baker, executive director, Union County Economic Development Board; Bryan Stone, COO, Lockhart Power; Joe Nichols, director of utilities, City of Union and Thomas L. Sinclair, supervisor and chairman, Union County Council.

AgFirst Farm Credit Bank recently named Isvara Wilson to the position of senior vice president and general counsel. Ms. Wilson will be responsible for managing AgFirst’s legal department and will serve as a member of the bank’s executive committee.

Barnes Alford is pleased to announce that Catherine Ava Kopiec has joined the firm as an associate. Ms. Kopiec will practice primarily in the areas of civil litigation and business and insurance defense.

Carol Peters, production manager of A. O. Smith’s commercial water heater plant in McBee was recently recognized

by The Manufacturing Institute, Deloitte, University of Phoenix, and the Society of Manufacturing Engineers with a Women in Manufacturing STEP (Science, Technology, Engineering and Production) Award for her excellence and leadership in manufacturing. Peters joins 121 other woman honorees, representing all levels of manufacturing from the factory floor to the C Suite.

The BlueCross BlueShield of South Carolina Foundation has awarded more than $600,000 to health care-related organizations in its latest grant cycle, bringing the 2012 total to $3.2 million.

BMW Manufacturing announced annual production of 301,519 vehicles, marking 2012 as the highest production volume in the South Carolina plant’s 19-year history. This represents a 9% increase over the production volume for 2011 (276,065). Since 2010, the plant’s production output has increased by 90% (159,284).

BMW Manufacturing announced that Sherry Coonse McCraw has been named the new vice president responsible for finance and production control. McCraw, a 20-year veteran of BMW’s plant in South Carolina, has been instrumental in leading the plant’s major expansion investments throughout her tenure.

Clemson University President James F. Barker announced a $1.05 million gift from Joe and Gretchen Erwin, cofounders of leading advertising and marketing firm Erwin Penland, to establish the Erwin Center for the Study of Advertising and Communication at the school.

Collins & Lacy attorney Aisha Taylor was appointed to the South Carolina Workers’ Compensation Commission by Governor Nikki Haley and was approved by the Senate. The South Carolina Workers’ Compensation Commission is comprised of seven commissioners appointed by the governor with the advice and consent of the Senate. Taylor joined Collins & Lacy in 2007 practicing in workers’ compensation defense and employment law.

Colonial Life contributed $715,000 to South Carolina charitable organizations in 2012. The contributions included donations to organizations selected by the company and matching gifts of employee contributions. In addition, employees volunteered nearly 10,500 hours of time to their favorite causes.

Duke Energy has named Stuart Heishman its vice president of economic development, business development and territorial strategies. Heishman will be responsible for the oversight, strategic

Greenville Mayor Knox H. White proclaimed December 12th, 2012 as Haynsworth Sinkler Boyd Day. The mayor presented Haynsworth Sinkler Boyd’s Managing Director Anne S. Ellefson with a proclamation honoring the firm’s 125 years of providing legal services to local, state, regional, national, and international clients. In addition to the firm’s Greenville office, there are five other office locations in Charleston, Columbia, Florence, and Myrtle Beach, SC, and Washington, DC. direction and execution of the company’s economic development programs, projects and business development activities across Duke Energy’s service territory in North Carolina, South Carolina, Florida, Indiana, Ohio and Kentucky.

Elliott Davis, LLC, one of the largest accounting, tax and consulting services firms in the Southeast, announced the addition of Jon Sutter as assurance manager in its manufacturing and distribution practice.

He will be located in the firm’s Greenville office.

The U.S. Department of Commerce, Minority Business Development Agency (MBDA) has announced Dr. Louis B. Lynn, president of ENVIRO Ag Science, Inc., as the winner of the 2012 Ronald H. Brown Leadership Award.

Dr. Lynn was honored at a ceremony in Washington, D.C. Inspired by the outstanding leadership of the late U.S. Commerce Secretary Ronald H. Brown, this prestigious award recognizes exceptional leaders who have made great strides in creating diversity in the public or private sector.

Gallivan, White & Boyd, P.A. announced that firm shareholder Luanne Runge began her term as chair of the Board of Directors for the Greenville Chamber of Commerce on January 1, 2013.

Garvin Design Group and Mashburn Construction were recently honored with a Design Merit award from AIA Columbia for the renovation of the Mast General Store at 1601 Main Street in Columbia.

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Keenan & Suggs, Inc., a fully integrated insurance, risk management, employee benefits and HR services firm headquartered in Columbia, has acquired The Sullivan Company, LLC of Greenville effective December 31, 2012. The Sullivan Company, founded in 1974, is a full service insurance agency offering commercial and personal insurance and employee benefits.

KeenanSuggs’ Greenville office will relocate to Sullivan’s office at 501 East McBee Avenue, Suite 201, Greenville, SC 29601.

In 2013, KershawHealth celebrates its 100th year of caring for the people of Kershaw County and surrounding communities. Founded in 1913 as the Camden Hospital, Kershaw Health today is a comprehensive community healthcare system with facilities spanning the county.

Robert Bendetti has joined Life Cycle Engineering (LCE) as chief financial officer and senior vice president. He is responsible for all financial operations of the company including accounting, contracting, purchasing, legal and information technology.

McNair Law Firm, P.A. announced that M. Craig Garner, Jr. has been elected to his fourth term as president of the South Carolina Higher Education Foundation (SCHEF). Through this role, he will continue to work to increase awareness and access to all aspects of higher education for South Carolina.

Craig is a shareholder of McNair Law Firm and serves as its counsel.

NBSC, a division of Synovus Bank, recently announced that Synovus received 17 national awards from

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MEMBER NEWS

Greenwich Associates for excellence in both middle market and small business banking. Among 750 banks evaluated nationwide, only 39 received national excellence awards for middle market banking, and only 42 for small business banking. Synovus received four regional awards as well.

SCE&G recently presented an $87,684 check to Richland County School District One as part of the company’s EnergyWise for Your Business Program. As part of the program, Richland One completed lighting upgrades at two elementary schools which will increase energy efficiency and reduce overall consumption by an estimated 264,118 kWh annually. Lavita Harriford, program manager for SCE&G’s EnergyWise for Your Business program, presented the check to the Richland One Board of School Commissioners and Superintendent Dr. Percy Mack.

AR Funding Greenville Babcock Center, Inc. West Columbia Belser-Tarrant Company Columbia Brewer Insurance Information Service Columbia C3 King Consulting, LLC Irmo Carbures USA Inc. Greenville

IMA SE Mount Pleasant Innovative Resource Management Summerville Intel Corporation, Columbia Design Center Columbia InterMedical Hospital of S. C. Columbia Jakes Landing LLC Lexington Jimmy Rivers Body Shop Inc. Columbia

Clarendon County Disabilities & Special Needs Board Manning

Johnson’s Garbage Service Columbia

Coastal Gas Services Marion

Kelly Services Columbia

College Summit - South Carolina Orangeburg

M Gourmet Group Columbia

Consultants of Carolina Lexington

Marine Forensic & Investigation Group, LLC Summerville

Discover Upcountry Carolina Association Greenville

Mining Association of South Carolina Irmo

Evans General Contractors Greenville

Mount Pleasant Waterworks Mount Pleasant

E-Z-Go Golf Cart Sales Augusta, GA

Park Sterling Corp.

Charlotte, NC

Greater Hardeeville Chamber of Commerce Hardeeville

Pelmetta Performance Solutions, Inc. Columbia

HLA INC Charleston

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Hollywild Animal Park Little Mountain Zoological Park Inman

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Performance Food Group Rock Hill

Advertiser Index BlueCross BlueShield Of S.C..Inside Front Cover Carolina Filters Inc............................................ 19

W e l c o m e , N e w M e mb e r s Airgas National Welders Charlotte, NC

Nexsen Pruet has elected attorneys Amy Clayton and Jennifer Hollingsworth as members (partners) of the firm’s Columbia office. Clayton practices in

Personal Defense Outfitters Travelers Rest Republic Transportation Systems Inc. Greenville Signature Transportation Columbia Signet Human Resource Mgmt Goose Creek Simplified Office Systems LLC Columbia South Carolina School Boards Association Columbia SouthEast Biodiesel North Charleston Tarheel Contractors Supply, Inc. Rock Hill The Caddy Shak Lexington The Interface Financial Group Mount Pleasant Trident Construction Co., Inc. North Charleston U.S. Strapping Company, Inc. Lancaster VLS Recovery Services Mauldin

Cherry BeKaert LLC......................................... 17 Haynsworth Sinkler Boyd, P.A............................1 Human Technologies...................................... 21 Nexsen Pruet.......................................................7 Palmetto Health.................................Back Cover Santee Cooper................................................. 11 Select Health of S.C......................................... 21

When your message needs to reach South Carolina’s business leaders, there is only one choice: SOUTH CAROLINA BUSINESS. The magazine of choice for South Carolina’s top executives.

For advertising and marketing opportunities, call Deidre Macklen at 803 318 3923.

Nexsen Pruet announced that Rachael Lewis Anna has joined the firm’s Greenville office.

Anna will work with the firm’s business litigation and health care practice groups, focusing on competition and antitrust issues in the health care and related industries. Anna comes to South Carolina from the McDermott Will & Emery law firm in Washington, DC. Nexsen Pruet attorney Franklin Daniels has been appointed to the Medical University of South Carolina’s Board of Visitors. Daniels’ appointment came courtesy of MUSC Trustee, Dr. Thomas C. Rowland, Jr. The Board of Visitors serves as a liaison between the Medical University and the community and works to raise the standards of health and education within the state of South Carolina. Franklin Daniels is the managing member of Nexsen Pruet’s Myrtle Beach office and serves as chair of the firm’s real estate practice group.

Pacolet Milliken Enterprises, Inc. announced the promotion of John D. Montgomery to vice president of real estate. Montgomery’s responsibilities include developing strategic initiatives to reposition existing properties and acquiring new properties for future development, and he also joins the company’s executive management committee.

Palmetto Health announced new board members Sara B. Fisher, senior vice president and chief financial officer of The National Bank of South Carolina; Beverly D. Chrisman, retired government executive and political consultant; and Joel E. Johnson, D.M.D., general, cosmetic and sports dentist with Joel Johnson D.M.D., P.A. The Richland Memorial Hospital new board members are C. Guy Castles III, M.D., pediatrician with Pediatric Associates; F. W. “Rick” Dreyer, M.D., physician with Pitts Radiology and vice chief of staff for Palmetto Health Richland; Randy R. Lowell, lawyer with Willoughby & Hoefer, P.A.; and Sandra P. Sims, owner of SAP, Inc. The Baptist Healthcare System new board

member is Donen Davis, J.D., M.D., plastic surgeon with Donen Davis Plastic Surgery and chief of staff for Palmetto Health Baptist.

PHT Services, Ltd. associate Erin Myers has earned the Associate in Insurance Services (AIS) professional designation.

The Associate in Insurance Services (AIS) program, offered by the American Institute for Chartered Property Casualty Underwriters (AICPCU), covers topics including continuous improvement, quality, benefits of customer orientation, leadership, teamwork, organizational structures, process management, and process improvement. Located in Columbia, PHT Services, Ltd. provides a variety of risk management services to South Carolina’s healthcare industry.

Richardson Plowden & Robinson, P.A. is pleased to announce that E.B. Davis Inabnit, Jr., has joined the firm as an associate attorney in the Myrtle Beach office. Inabnit is a member of the litigation practice group.

Richardson, Plowden & Robinson, P.A. announced that attorney Charles J. “Chuck” Webb was recently named a shareholder in the firm. Webb joined Richardson Plowden in 2005 and focuses his practice on real estate transactions, foreclosures, collections, creditor’s rights in bankruptcy, and business/corporate law.

and consulting firms, and firm principal Sandy Cooper has been named a member of Scott and Company. All members of the former Lowrance Cooper firm will join Scott and Company as part of the transition.

SCRA announced that the United States, a charter member of the global Intelligent Manufacturing Systems program (IMS), assumed the IMS chairmanship from the European Union. Robert Kiggans, who serves as vice chairman of SCRA’s Applied R&D sector, will serve as the IMS chairman for a 30-month term. The IMS was established for advancement of global cooperative manufacturing research.

Sonoco announced that M. Jack Sanders will become president and chief executive officer of the company, effective April 1, 2013, when Harris E. DeLoach, Jr., retires as an active employee after more than 27 years with Sonoco.

Sanders, 59, is currently president and chief operating officer of Sonoco and has global leadership, sales and operating responsibility for all of the company’s diversified packaging businesses.

Demand is available through Carolina On Demand on channels 199 and 1047.

STEM On Demand is part of Connect A Million Minds (CAMM), Time Warner Cable’s 5-year, $100 million philanthropic initiative to inspire young people to pursue education and careers in STEM. WebsterRogers brought on Jessica Bastedo as an audit senior in their Columbia office. Ms. Bastedo brings over 5 years of experience in the public accounting and audit industry to her new role at WebsterRogers where she will be focusing on audit and attest services across a wide variety of industries.

MEMBER NEWS

the areas of commercial real estate, general business and corporate law, and commercial lending, with special emphasis on real estate development and commercial leasing. Hollingsworth practices in the business and commercial litigation practice group where she handles matters such as defending nursing homes and assisted living facilities, certificate of need litigation, fiduciary duty litigation and other complex litigation matters.

WebsterRogers announced that Robert M. Tilton, CPA has been named a partner in the firm. Mr. Tilton works in the firm’s Florence, SC office and has over 13 years of experience in public accounting with an emphasis in auditing.

Time Warner Cable has launched STEM On Demand in its continued effort to motivate students to expand their interest in science, technology, engineering and math (STEM). STEM On

Young Clement Rivers, LLP announced that Leslie M. Whitten has become a partner of the firm and J. Steven Rodenberg has joined the firm as special counsel in the Charleston Office.

Riggs Partners is pleased to announce the addition of Keely Saye as its director of inbound marketing, a practice that uses digital content, social media, search engine optimization and marketing, email marketing, and lead nurturing systems to increase web site traffic and generate leads. Keely is a certified inbound marketing specialist and the former principal of keelysaye.com, an inbound marketing agency.

Sage Automotive Interiors has been recognized by the South Carolina Department of Labor, Licensing and Regulation for maintaining a safe and incident-free plant environment in their Sharon plant located in Abbeville, S.C., for 15 years, more than 9 million hours.

Columbia area tax firm, Lowrance Cooper and Company, has merged into Scott and Company LLC, one of South Carolina’s fastest-growing CPA

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I am South Carolina Business Name: Eric Elkins Hometown: Columbia College: University of Arizona Occupation: Insurance, Risk Management and Employee Benefits with KeenanSuggs BowersElkins, LLC He thinks the future of health care has changed since the Affordable Care Act. “People’s premiums have gone up, not down. So far, all we have seen is health costs go up, not get lower. So many questions are still unanswered.

We have seen a lot more panic, and businesses are trying to decide whether or not to continue health insurance coverage for their employees. Businesses are questioning if they want to be the first ones on the health exchange bus. My suggestion is to let the government work out its kinks before dropping a group health plan. It is also important to have your benefits advisor perform the pay or play analysis to better understand your future options.”

If he could go back in time…and had the power “I would take baby steps rather than run to reform the health system. While reforms were definitely needed, the complete overhaul was not necessary.”

He’s passionate about “Being a great father and a great husband. I am also passionate about my clients and being able to pick up the phone and have a level of comfort where I know I can get them the answers they are looking for and never take their trust in me for granted.”

His best career advice “Be different! When you are standing in front of an audience, do something that makes you stand out so people remember you.”

His secret to success? “Working very hard and being willing to do the things that are uncomfortable.”

You would never guess “I once went to the late Aaron Spelling’s 56,500 square foot house in Los Angeles, California. A college friend was dating Tori Spelling, and we went to her parent’s unbelievable mansion.”

South Carolina is the best state “Because of the people, mild weather, beautiful golf courses and tremendous Clemson vs. Carolina rivalry.”

I am South Carolina Business “I am passionate about South Carolina being in the top ten in different categories for the right reasons, not the wrong reasons.”

– Jean Cecil Frick

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When your message needs to reach the largest possible business audience, there is only one choice:

the magazine of choice for South Carolina’s top executives.

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StarS of BuSineSS Business Leader of the Year

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That’s what the people at Palmetto Health are all about. Our employees, physicians and volunteers come to work every day to make a difference in the lives of our patients and their families. And we’d like to take a moment to say thank you for allowing us to care for your family as if you were our own.

We truly appreciate the readers of The State for recognizing us as the best in healthcare for three years in a row.

To find a physician that goes the extra step for you and your family, call 803-296-CARE or visit PalmettoHealth.org.