February 2013 Business Magazine

A New Electricity Alliance:Manufacturer & Business Association, EEA-PA and NRG Business SolutionsSince its inception, Employers’ Energy Alliance of Pennsylvania (EEA-PA) has supported our members’ energy needs. The latest example comes with our new alliance with NRG Business Solutions.

Many of our members wanted a variety of energy services to choose from that we alone couldn’t provide. An alliance with NRG Business Solutions allows us to provide this range – from fully fixed to fully variable and everything in between. The choice is yours and we’re here to help you. You will also receive the same level of service you’ve come to expect from the Manufacturer & Business Association (MBA) and EEA-PA while significantly expanding our experience and expertise in servicing your electricity needs with NRG Business Solutions.

Trust and expertise … a combination you can continue to count on.

Contact us today to learn how we can help meet your electricity needs.

Chuck Jenkins814.833.3200

[email protected]

NRG is a federally registered trademark of NRG Energy Inc. “Reliant” and “Reliant Energy” are federally registered trademarks of Reliant Energy Retail Holdings, LLC. (DE No. 7894, MD No. IR-2058, PA No. A-2010-2192350, DC No. EA-10-15, BPU No. ESL-0093, MA No. CS-072). NBS.1645

BUSINESSM A G A Z I N E

VOLUME XXVI, NUMBER 2 FEBRUARY 2013Manufacturer & Business Association

‘Getting people back to work… to play… to living.’ / Page 10

Lucretia A. Atti,CEO

100 State Street • Suite 700 • Erie, PA 16507 • MacDonaldIllig.com • 814-870-7600

FIRM.

firm (fûrm) Adjective: Constant; Steady; Securely or Solidly Fixed in Place

Verb: To Give Additional Support To

Synonym: MacDonald Illig

Usage: MacDonald Illig is the firm that Western

Pennsylvanians have trusted for over a century.

Training That Develops

Effective Leaders

T R A I N I N G S C H E D U L E

As a leader in professional development

and computer training programs for more

than 20 years — the Manufacturer &

Business Association’s expert trainers

deliver the knowledge and skills you need

to compete in today’s business world.

From left: Tammy Drayer, Association HR webinar and Computer Training

participant; Carli Braine, Leadership for Team Leaders Food Safety Certification

graduate; Nick Wagers, Top 10 Essential Skills for New Supervisors and Food Safety

Certification graduate; Diana Groters, Food Safety Certification and HR Essential

Certfication Series graduate; and Karen Haney, Food Safety Certification graduate.

“Our team has utilized the Manufacturer & Business

Association (MBA) courses for every aspect of our

business. The food safety courses are much more

convenient at the MBA because it is a one day

class. We also save money taking the courses

at the MBA. Our team leaders, myself included,

have learned from the Supervisory Skills Series,

Leadership Classes, HR and Management courses,

computer classes and more. The instructors keep

the information interesting and current. Every

class I have attended there has been information

I could put to use immediately. Having the

opportunity to take some courses as webinars has

been helpful too. The difference in our team — in

their confidence and skill — has been extremely

helpful as we continue to grow and improve.

—

Liz Brown, President

LJ Development, Inc.

10FEATURES > 3 / For What It’s WorthManufacturer & Business Association President Ralph Pontillo explains why Pennsylvania’s businesses and consumers deserve more when it comes to public health insurance exchanges.

5 / Risking It AllClemont Austin, president of E.E. Austin & Son, Inc., with offices in Erie, Pennsylvania, and Falconer, New York, addresses the rewards of owning your own business — and the risks you take to keep your company relevant.

10 / HealthSouth Rehabilitation Hospital of ErieLeadership staff discuss what HealthSouth Rehabilitation Hospital of Erie, the region’s only subspecialty hospital for rehabilitative medicine, is doing to distinguish itself as a leader in individualized therapy and patient care.

16 / On the HillGuest columnist Dan Danner, president and CEO of the National Federation of Independent Businesses, argues why it’s time to slam the brakes on the federal government’s rule-making machine.

EDITORIAL > 9 / Health Matters How online HR/Benefits administration can save companies money, while increasing efficiency and security. JOHN GALLEY

15 / Legal BriefWhat you should watch out for in the False Claims Act when doing business with the government.MATTHEW W. MCCULLOUGH

17 / Aging & WellnessWhy we should prepare ourselves to be our parents’ keepers.DIANNE CUNNINGHAM

February 2013

Blue Ocean Strategy Center

5

SPECIAL SECTION > Insert / Training Catalog Learn more about the Association’s upcoming professional development and computer training courses in our current quarterly training schedule!

6

DEPARTMENTS > 6 / Business Buzz18 / HR Connection

22 / HR Q&A24 / People Buzz

Read on the Go!For the most current Business Magazine updates, visit our website, www.mbabizmag.com, fan us on Facebook and follow us on Twitter!

February 2013 > www.mbabizmag.com > 1

A new level of heArt cAre

i s b o r n .

Opportunity. It’s what defines our most recent clinical affiliation with the Cleveland

Clinic Heart & Vascular Institute—ranked number one in the nation for heart care

for the past 18 years by U.S. News & World Report. This unprecedented affiliation

between two exceptional heart programs firmly establishes a new benchmark of

excellence in Erie. Ensuring you and your loved ones local access to the highest

standards in cardiovascular care. Enhancing our physicians’ ability to deliver new

innovations and new technologies. And providing our community with an advanced

level of heart care that rivals any health system in America.

SaintVincentHealth.com/HeartTeam

There is considerable confusion concerning public health insurance exchanges — and with good reason. Much of the confusion is a direct result of the federal government’s failure to provide adequate guidance on the rules and regulations that will ultimately control the exchanges.

Governor Tom Corbett’s recent decision not to support a state exchange in the Commonwealth was the right decision for Pennsylvania citizens. In a statement, Governor Corbett said, “Health-care reform is too important to be achieved through haphazard planning. Pennsylvania taxpayers and businesses deserve more.”

We couldn’t agree more.

The full impact of the state exchanges on the cost, access, quality, marketplace choice, taxes and regulations on health care has yet to be fully explained.

We are glad that Governor Corbett has joined the 21 other state officials who have declined to set up state exchanges due to the increased costs, higher taxes, and unclear regulations handed down by D.C. lawmakers.

It’s important to note that while there is a great deal of confusion surrounding the state exchanges, the federal government was very clear on at least two very important aspects of the public exchanges: one, that the federal government would maintain ultimate authority and control; and two, that federal financial supports would be temporary, and as such, the cost burden would be transferred to state taxpayers.

Corbett’s decision was the right one, as it would have been fiscally irresponsible to put Pennsylvania’s citizens on the hook for a health-care system with a price tag that has yet to be determined and rules that have yet to be written.

It is also very important to understand that public exchanges are initially designed for the uninsured.

Under the new law, uninsured individuals must purchase health insurance. Those who are currently insured will have access to both public and private exchanges — the latter of which will operate under a different set of rules and regulations that are far more flexible, self-determined and driven by private-market incentives.

If the government plans for states to meet its January 2014 deadline, which most experts agree is unrealistic, it needs to cut through the confusion surrounding the exchanges — and soon.

The Manufacturer & Business Association will continue to monitor this process and keep our members and our community updated as to its progress. A haphazard approach to health-care reform is not acceptable — and our state’s taxpayers and businesses deserve more.

Ralph Pontillo is the president of the Manufacturer & Business Association.

Pennsylvania’s Businesses, ConsumersDeserve More When it Comesto Public Health Insurance Exchanges

EDITORIAL > by Ralph Pontillo

For What It’s Worth

Blue Ocean Strategy Center

VOL. XXVI, NO. 2 FEBRUARY 2013

© Copyright 2013 by the Manufacturer & Business Association. All rights reserved. Reproduction or use of editorial, pictorial or advertisements created for use in the Business Magazine, in any manner, without written permission from the publisher, is prohibited. Unsolicited manuscripts cannot be returned unless accompanied by a properly addressed envelope bearing sufficient postage. The maga-zine accepts no responsibility for unsolicited manuscripts or artwork. The Business Magazine and Manufacturer & Business Association do not specifically endorse any of the products or practices described in the magazine. The Business Magazine is published monthly by the Manufacturer & Business Association, 2171 West 38th Street, Erie, Pa. 16508. Phone: 814/833-3200 or 800/815-2660.

Mission StatementThe Manufacturer & Business Association is dedicated to providing information and services to its members that will assist them in the pursuit of their business and community interests. – Board of Governors

Manufacturer & Business Association2171 West 38th Street Erie, Pa. 16508 814/833-3200 or 800/815-2660 www.mbausa.org

Manufacturer Yvonne Atkinson-Mishrell& Business Joel BerdineAssociation Board John Clineof Governors Dale Deist Bill Hilbert Jr. Donald Hester Timothy Hunter J. Gordon Naughton John B. Pellegrino Sr., P.E. Dennis Prischak Sue Sutto

Editor in Chief Ralph Pontillo [email protected]

Executive Editor John Krahe [email protected]

Managing Editor & Karen Torres Senior Writer [email protected]

Digital Media Manager Jessica McMathis [email protected]

Contributing Dianne Cunningham Writers John Galley Matthew W. McCullough

Feature Photography Meghan Badolato R. Frank Photography 4320 Miller Avenue Erie, PA [email protected]

Advertising Sales Patty Welther 814/833-3200 or 800/815-2660 [email protected]

Design, Production Printing Concepts Inc. & Printing [email protected]

ON THE COVER: HealthSouth Rehabilitation Hospital of Erie CEO Lucretia A. Atti shares how the 108-bed acute inpatient rehab hospital has become a leader in rehabilitative medicine. For full story, see page 10.


MILLCREEK GERIATRIC EDUCATION

AND CARE CENTER

www.LECOMtotalhealth.com

You can bene� t from the resources that provide . . .

LECOM_MBS USA2012.indd 1 5/1/12 12:54 PM

The Business Magazine’s “Risking It All” section highlights the entrepreneurs who made sacrifices to build their businesses in our region. This month, we sat down with Clemont Austin, president of E.E. Austin & Son, Inc., with offices in Erie, Pennsylvania, and Falconer, New York, to talk about the rewards of owning your own business — and the risks you take to keep your company relevant.

For more than 100 years, E.E. Austin & Son, Inc. has been providing quality construction services to northwest Pennsylvania and the southern tier of New York.

And for 37 of those years, Cle Austin, great grandson of founder Edward Everett Austin, has been at the helm of the general contracting company — one of the region’s oldest and largest.

Today, E.E. Austin & Son — which began as one of the nation’s first 100 ready-mix concrete plants and is responsible for the construction of Erie-area landmarks such as Veteran’s Memorial Stadium, Erie International Airport and the formerly named Louis J. Tullio Arena — offers general construction and construction management for institutional, industrial and commercial clients, as well as a concrete division that manufactures and delivers ready-mixed concrete.

It’s also operated by the same values of personal integrity, technical competence and consistent quality on which it was built.

But it hasn’t always been easy.

When Cle took over the business in 1976, the firm’s clients were mostly public entities, which meant little work, and cash was hard to come by.

“We had no capital, no equipment, no customers,” Austin explains. “We were an old company with old-fashioned ways.”

To stay relevant meant taking risks — one of which was reaching out beyond the typical Austin customer and participating in the construction of regional medical centers, manufacturing facilities, hotels and casinos, and large-scale office buildings. As a result, the business became a force in the regional construction industry — and a name for quality among its peers.

It also meant that they didn’t always have the best or newest equipment, buying used trucks to reserve capital.

“We used to say we bought the worst half of the truck, the second half of its life,” says Austin. “But because of those decisions, we’re now able to enjoy the best half — the first half of its life.”

Success has been gratifying, and allowed both Austin and the company to give back to the community with donations of both money and time. Yet it wouldn’t have been possible without the hard work of loyal employees who have kept the business at the top of the construction and concrete game for more than a century.

“In the construction business, you have to be able to pick and choose who you work with and how you do it,” says Austin. “Fortunately for us, the people we’ve been able to hire and train are among the best, brightest and hardest working people out there.”

For those looking to go into business for themselves, Austin offers a small bit of advice.

“Build your customers and your staff one at a time,” he offers. “Start small, conserve your cash, and don’t overextend yourself when it comes to purchasing hard assets.

“There’s a lot of flexibility in owning your own business if you do it well.”

For more information about E.E. Austin & Son, Inc., visit www.eeaustin.com.

Risks, Reinvention Drivea Century of Success Behind E.E. Austin & Son, Inc.

EDITORIAL > by Ralph Pontillo

Risking It AllEDITORIAL > by Jessica McMathis

Cle Austin is the president of E.E. Austin & Son and Austin ServAll Concrete.

Erie County presented the 2012 Excel Award to E.E. Austin & Son in October.

Among some of E.E. Austin & Son’s most recent projects are the REDC at Penn State Erie, the Behrend Campus (now known as the Burke Center), the Lake Erie Biofuels plant, and Johnson Reservoir.


ACUTEC PRECISION MACHINING ANNOUNCES EXPANSIONAcutec Precision Machining, an aerospace parts machining company with two locations in Crawford County, recently announced that a $2.65-million renovation project will add another 80,000 square feet to the already 80,000 feet the company now utilizes, according to local news reports. The company also expects to hire an additional 35 new employees.

For more information on the Saegertown, Pennsylvania-based company, visit the website www.acutecprecision.com.

PENN STATE BEHREND TO OFFER INDUSTRIAL ENGINEERING MAJOR IN FALL 2013Penn State Erie, The Behrend College recently announced that it will begin offering an industrial engineering major in fall 2013.

Students in the new major will have classes in calculus, ergonomics, linear programming and statistical methods. Senior-level design projects will give them hands-on experience with industry partners.

The students are expected to be in much demand after graduation. The need for industrial engineers is expected to increase by 14 percent by 2018, according to the U.S. Bureau of Labor Statistics.

For more information, visit www.psbehrend.psu.edu.

KNOX RECOGNIZED IN ’BEST LAW FIRMS’ RANKINGSKnox McLaughlin Gornall & Sennett, P.C. in Erie, Pennsylvania recently announced that it has been listed in Tier 1 in the 2012-2013 “Best Law Firms” rankings published by U.S. News and Best Lawyers in two practice areas.

The firm received a Tier 1 ranking both nationally and in the Pittsburgh metropolitan region for Medical Malpractice Law — Defendants. The Knox firm is one of only five law firms in Pennsylvania to receive a Tier 1 national ranking in that practice area and one of only three in the Pittsburgh metropolitan region to receive a Tier 1 ranking both nationally and regionally in the practice area.

The firm also received a Tier 1 ranking in the Pittsburgh metropolitan region for Information Technology Law, one of only two firms in the Pittsburgh metropolitan region to receive that ranking in the practice area.

For more information, visit www.kmgslaw.com.

WASTE MANAGEMENT NAMED ’BEST CORPORATE CITIZEN’Waste Management has been named a “Best Corporate Citizen” in the Services industry by Corporate Responsibility (CR) Magazine.

This is the second year that CR Magazine has recognized companies by industry, applying the methodology from its 100 Best Corporate Citizens List to vertical segments to allow for an apples-to-apples comparison.

“Our annual 100 Best list honors transparency across all industry sectors and this delineation gives our readers a deeper understanding of which companies have gone above and beyond in their consistent commitment to gold standard environmental, economic, and social values and practices,” said Dirk Olin, the magazine’s editor-in-chief.

To view the full Top 10 Best Corporate Citizens by Industry list, visit www.thecro.com.

MCINNES ROLLED RINGS PLANS FOR EXPANSION Erie-based McInnes Rolled Rings, a manufacturer of seamless rolled rings, is planning a future expansion, according to a recent Erie Times-News article.

Business BuzzERIE BUSINESS CENTER RECEIVES PRESTIGIOUS ACICS AWARDSThe Erie Business Center (EBC) recently was recognized by the Accrediting Council for Independent Colleges and Schools (ACICS) at its Centennial Gala in Las Vegas. EBC received three awards, acknowledging the school’s longevity, ongoing accreditation and contributions to post-secondary education.

The ACICS, based in Washington, D.C., is one of the most respected and longest-established national accreditors of academic institutions. Recognized by the U.S. Department of Education and the Council for Higher Education Accreditation (CHEA), ACICS accredits more than 900 private post-secondary institutions, as well as institutions offering associate’s, bachelor’s and master’s degrees in programs designed to educate students for professional, technical or occupational degrees.

EBC, which is recognized as an ACICS Founding Institution, is one of only five original ACICS-accredited schools — along with Everest Institute of Pittsburgh, Miami Jacobs Career College, Minneapolis Business College, and Spencerian College of Louisville, Kentucky. In operation for 128 years, EBC received an award for being part of the ACICS Centennial Century Club and also was distinguished for remaining an ACIC-accredited institution for 50 or more years.

To learn more about EBC, visit www.eriebc.edu.

Erie Business Center CEO Samuel McCaughtry and Executive Director Donna Perino present the awards EBC received from the Accrediting Council for Independent Colleges and Schools.

6 < www.mbabizmag.com < February 2013

DEPARTMENTS > Contact: Karen Torres

On January 2, Erie City Council held a public hearing on the proposed rezoning of several parcels in the 1500 block of East 12th Street owned by the Greater Erie Industrial Development Corp. and affiliates of McInnes.

The land, currently zoned for light industrial use, would have to be rezoned for heavy industry use, based on the size and scope of the planned expansion.

According to the news report, the company is considering an expansion of about 100,000 square feet that would allow it to produce larger rolled rings.

Erie City Council approved the request at its January 16 meeting.

For more information, visit www.mcinnesrolledrings.com.

ERIE INTERNATIONAL AIRPORT RUNWAY EXTENSION OPENS FOR BUSINESSAfter seven years of construction and two winters ahead of schedule, the Erie Regional Airport Authority (ERAA) opened Runway 6-24 for full-length operation. Aircraft flying in and out of Erie International Airport (ERI) now have 7,500 feet of pavement available for landing and 8,420 feet for take-off.

A standard 1,000 feet of safety area at both ends of Runway 6-24 are now providing enhanced safety to the flying public.

“Having full use of the extended runway enabled ERI to establish the 1,000-feet safety areas today, the primary impetus for the $83-million program,” said Chris Rodgers, executive director of the ERAA. “The ERI non-standard safety area waiver

was set to expire in 2014. Nearly $60 million in FAA and Bureau of Aviation grants have been provided to ERI specifically to address runway safety area deficiencies. In addition, the extended runway length will improve landing and takeoff reliability in poor weather conditions.”

The milestone is just one of many the ERAA board and project team expect to meet before the project wraps up in August 2013. In the weeks and months ahead, a new electrical vault will become operational, extended taxi-way Alpha will be placed into service, upgraded instrument landing system components will come online, a completely new approach lighting system will guide landing planes, and the old runway pavement will be resurfaced.

For more information, visit www.erieairport.org.

Contractors & Construction Managers Since 1906

Erie, Pennsylvania • Jamestown, New Yorkwww.eeaustin.com

Every day E.E. Austin lays its tradition of construction excellenceon the line. Our extensive list of satisfied clients is testimony toAustin keeping its longstanding promise: “Do the right thing... all the time”.

It’s a promise we’ve kept with pride for more than a century... and it’s our promise to you. It’s the Austin Difference.

HEALTHCARE • EDUCATION • INSTITUTIONAL • RETAIL & HOSPITALITY • INDUSTRIAL • CONCRETE

The Austin Difference

Austin_MBAAds2012v2_Layout 1 6/13/12 8:55 AM Page 1


As companies grow, demands on human resources (HR) departments also increase. To satisfy those demands, employers have to be aware of the advances in self-service technology that can increase productivity and create real cost savings.

HR departments can see tremen-dous benefits from technological innovations such as online HR/Benefits administration.

Generally speaking, companies with 200 or more employees (the size at which HR departments can become bogged down with daily administrative activities) are attracted to the advantages associated with online automated HR/Benefits administration.

Automation can eliminate some of the daily tasks for HR departments so that they can focus more of their time and energy on strategic initiatives that have a greater business impact. Online HR/Benefits administration saves companies money, while increasing efficiency and security.

Why Use Online HR/Benefits Administration? 1. The HR function has become more complex, difficult and time-consuming. Often, more strategic initiatives can be squeezed out due to the daily demands and volumes of administrative issues that affect the work force every day.

2. Reduced paperwork. The paperwork associated with benefits and payroll can overwhelm an HR department. There is a need to handle a number of documents that must be filled out, signed, dated, reviewed, entered into various separate internal and external systems, such as carrier databases and

the employer’s payroll/HRIS platform, and then filed. Online HR/Benefits administration can automate much of that process for employers.

3. Staff can be freed from duplicate paperwork. Errors can be prevented and access to information improved.

4. Online HR/Benefits administration’s special features include:

• Embedded communications tools that allow HR departments to customize messages to various employee populations.

• The most advanced technologies do much more than handle open enrollment — they handle new hires, life events such as marriages, birth of a child, divorce, etc., as well as employment events, such as a promotion or move from part-time to full-time employment. Each of these has benefits and other HR implications that may be automated by a single solution.

Advantages for Employees These technologies also provide a gateway into other platforms such that wellness, absence, and other key initiatives can be easily and seamlessly managed through the same integrated portal. Because an employee could perform all of these kinds of tasks without contacting HR or leaving his desk, it saves time for employees and HR staff, thus increasing productivity for the employer.

The right online HR/Benefits system ensures greater security and privacy of information for an employee. Electronic exchanges are secure and the data is protected via various levels of security. For example, HR

administrator access can be limited to HR administrators only and the information they have access to can be further limited by role, department and location.

Strategic Benefits Getting the work force access to online communications can help to make the organization more nimble and quick. Key messages can be communicated instantly to employees and these messages are actually heard and, when needed, responded to.

Employers need to think beyond just employee benefits when developing their web strategy. They should think about all aspects of online self-service for employees and if they are looking for a strategic partner, find one that has the ability to offer additional services when they are ready.

For more information about benefits administration from EBenefits Solutions, visit www.EBenefits.com.

Online Benefits Administration Has Its Advantages

Health MattersEDITORIAL > By John Galley

John Galley is the president of EBenefits Solu-tions, which is part of the UPMC Insurance Services Division. The integrated partner companies of the UPMC Insur-ance Services Division, which offer a full range of insurance programs and products, also include UPMC Health Plan, UPMC WorkPartners, LifeSolutions, UPMC for You (Medical Assistance), Askesis Development Group, and Community Care Behavior-al Health.


At 56 years old, Aubrey “Dale” Knox never expected that he’d have to learn how to walk and talk again.

But when Knox, a truck driver from East Springfield, Pennsylvania, was injured in a September 2012 car accident and rushed to an area hospital where he remained in coma for two days, he woke to find that had suffered a severe concussion, spinal cord injury and paralysis.

It was then that Knox first learned he might never walk again.

After an inpatient stay at a regional acute hospital, he came to HealthSouth Rehabilitation Hospital of Erie.

For more than a month, Knox underwent specialized occupational, physical, and speech therapy, little by little working to regain his motor and sensory skills. Then, after undergoing surgery on his neck to treat his spinal cord, he returned for a three-week stay at HealthSouth to continue his rehabilitation.

“I went from no feeling in my hands or feet to walking,” Knox says. “The day before yesterday when I took my first step without holding on to the walker, it’s just like somebody gave me a new life.”

Knox describes his recovery experience at HealthSouth as “second to none.” “I’ve got a lot of motivation and the therapy here has helped me with that motivation. They push you that little bit extra,” he notes, “and that’s the reason I’m walking out those doors today.”

Tom Bateman, 49, of neighboring Conneaut, Ohio, recalls the trauma he experienced when he suffered a stroke while on a hunting trip in Colorado in December 2010. As his release from a long-term acute hospital (LTACH) in Colorado approached, his wife and family scrambled to find a rehabilitation hospital back home that would provide the best possible Stroke Rehabilitation Program.

Bateman’s former employer, a local tool-and-die manufacturer — where he worked as a tool room supervisor for 18 years — even helped to make all the flight arrangements so that he could be brought straight from the airport, to an ambulance, then to HealthSouth Erie, A Joint Commission Certified Stroke Rehabilitation Center of Excellence.

For six weeks, Bateman — then paralyzed on the right side — underwent a rigorous program of physical, occupational and speech and dysphagia (swallowing) therapy along with rehabilitation nursing, nutritional, respiratory and neuro music therapy. The neurologist-led Stroke Rehabilitation Team applied the latest in stroke treatment and advanced rehabilitation recovery technology.

“The most impressive part was that I was admitted on the 15th of the month and my therapy started on (the morning of) the 16th,” says Bateman. “And it was pretty tough. One of the first things I remember of the physical therapy was that they strapped my arms in to a standup walker to try to train me to walk.”

‘Getting people back to work… to play… to living.’

Case managers work closely with patients and families to ensure they are provided continuity of care.

HealthSouth helps individuals reach the greatest possible degree of indepen-dence through its specialized therapy programs, including occupational therapy shown here.

HealthSouth Rehabilitation Hospital of Erie offers round-the-clock nursing care and comprehensive rehabilitation for a wide range of patients and conditions.


Six weeks later, “I was walking with the aid of a hemi-walker, but I was walking,” he notes. “My speech, well, I was on a liquid diet when I came in, and I was on regular food when I left.”

Overall, Bateman describes his HealthSouth rehabilitation as “very good.” “The people were pleasant and easy to work with,” he says. “They help you with everyday skills, not just what they think you are going to run into.”

Mission FocusedHealthSouth Chief Exec-utive Officer Lucretia A. Atti, who joined the Erie rehabilitation facility as chief nursing officer in 2009 and was named CEO in September 2011, says HealthSouth’s primary role is that of the region’s only subspecialty hospital for rehabilitative medicine. The Erie facility is one of

the more than 100 hospitals in the HealthSouth network, which together represent one of the nation’s largest health-care providers specializing in rehabilitation.

“Our goal,” explains Atti, “is to get that patient back to living, to playing, and back to work, or whatever their need activity was, but back to being functional again.”

Patients who come to HealthSouth have often suffered a stroke, catastrophic illness, serious injury resulting in trauma to the spinal cord or brain, neurological diseases such as Parkinson’s disease, multiple sclerosis and Guillian-Barre syndrome, or been referred to HealthSouth for orthopedic treatment.

These patients are typically referred by one of the area’s acute tertiary hospitals, but can also come from a home admission, after a direct referral from a family member or a physician’s office. Once admitted, the hospital works closely with a dynamic group of doctors — admitting and consulting physicians — therapists and nursing staff, who take care of these and other medically complex patients.

Each individual who comes to HealthSouth for treatment is assigned a rehabilitation team that meets once a week in a team conference to discuss his or her defined care plan. This team is comprised of the patient’s rehabilitation physician and nurse, occupational therapist, physical therapist and case manager, as well as his or her respiratory therapist, speech therapist, infection control nurse and/or wound nurse.

HealthSouth’s care management model, known as “Care Management Teamworks,” even assigns a case manager to each patient and works with them and their family, starting on Day One.

“The case managers help communicate and coordinate the information to the family, to the patient, while they are here in the hospital, but also a follow-up call when they go home,” states Atti. “They oversee each discharge, ensuring that equipment is obtained and that services are coordinated. We also work very closely with several tertiary hospitals for those patients who

really require a higher level of care, and have to be transferred.”

At HealthSouth, the average length of a hospital stay is now seven to 14 days — and given this short time frame, a comprehensive rehabilitation program is required. On the first day, HealthSouth takes a patient’s functional independence measure (FIM) — based on 13 motor tasks and five cognitive tasks — to determine the level of his or her disability and how much assistance is required to carry out the activities of daily living. Hospital officials say this criterion is far different than a skilled nursing facility that offers “short term rehab,” and where no quality metrics are required for Medicare reimbursement.

“We measure what they can do and usually when they first come here it is a very low number, in the 45-50 range,” explains Atti. During the patient’s stay and “prior to discharge, we re-measure their FIM measurements and identify the gain from admission to discharge. A number of outcomes are compared, not only within our own 100-plus HealthSouth hospitals located across the country, but also with the National Standards — the UDS (Universal Data System) measurements. For the past two years in a row, we have been in the UDS Top 10 percent of all rehabilitation hospitals across the nation in our clinical outcomes. This demonstrates excellence in care.”

Michelle Mayes, an occupational therapist with more than 20 years of experience and director of Therapy Operations at HealthSouth, says the hospital’s goal is to attain close to a 40-point FIM gain by the time they are discharged. “We are able to extend their stay if needed, based on their FIM improvement,” she says. “Often patients exceed that goal due to the rehabilitation they receive and how their individualized care is planned. This means sitting down with the patient and the family member upon admission and determining what the goals are for the patient, why they are here and what they need to accomplish.”

“They may have a chronic debilitating disease, general decline, experienced a fall or trauma, suffered a stroke or had a hip replacement and now their life is a little bit different returning to home,” explains Mayes. “We want to make sure that the most important things to them are >

Lucretia A. AttiChief Executive Officer

About: Founded in 1986, HealthSouth Rehabilitation Hospital of Erie is a 108-bed inpatient, 90,000-square-foot rehabilitation hospital that offers comprehensive inpatient rehabilitation services for patients in northwest Pennsylvania, western New York and northeast Ohio. HealthSouth Corporation, headquartered in Birmingham, Alabama, is the nation’s largest owner and operator of inpatient rehabilitation hospitals in terms of revenues (approximately $2.027 billion in net operating revenues in 2011), number of hospitals (99), and patients treated and discharged, and operates in 27 states across the country and Puerto Rico.

Services: In addition to caring for general rehabilitation diagnoses such as orthopedics, cardiac, pulmonary, or general debility post surgery or illness, the hospital has specialized inpatient programs for stroke, brain injury, neurological diseases such as Parkinson’s disease, multiple sclerosis and Guillian-Barre syndrome, trauma and spinal cord injury. Other services include onsite dialysis, wound and ostomy care, tracheotomy and dietitian evaluation and treatment.

Employees: 264, including highly skilled physicians; physical, occupational, speech and respiratory therapists; licensed practical nurses and registered nurses, including certified wound and ostomy nurses, and infectious disease nurses; case managers; dieticians; operations and housekeeping staff; and administrators.

Location: 143 East Second Street, Erie, PA 16507

Phone: 814/878-1200 for general information or 814/878-1288 for admissions/direct referrals

Website: www.healthsoutherie.com

HealthSouth Rehabilitation Hospital of Erie works with a dynamic physician staff, including (front row, from right): Thomas D. Skelly, CRNP, Neuro-rehabilitation certified registered nurse practitioner; James A. DeMatteis, MD, Board Certified Neuro-rehabilitation and Neurology physician; Danielle M. Hansen, DO, Board Certified Geriatric and Internal Medicine physician; and (back row, from left) Hospital Medical Director, Douglas B. Grisier, DO, Board Certified Family Medicine physician; Kendell Kessler, MD, Board Certified Physical Medicine and Rehabilitation physician; and James A. Gade, DO, Board Certified Family Medicine physician.


accomplished. If they are left alone during the day, and need to be able to get to the bathroom, make a meal, or get the mail, that they are safe and capable, whatever the situation may be.”

Unparalleled CareHealthSouth patients can expect an unpar-alleled commitment to care throughout their hospital stay.

As a round-the-clock medical-surgical level specialty inpatient rehabilitation hospital, patients are cared for by certified rehabilitation nurses, seen daily by rehabilitation physicians, and receive therapy seven days a week.

Typically, patients participate in rehabilitation for three hours spread over the course of day — and weekends — of physical, occupational, and speech therapy, when appropriate, in accordance with Medicare guidelines. HealthSouth meets all requirements of the state and federal government and the Joint Commission, for which it is accredited and certified. The hospital is also a subspecialty hospital certified in Parkinson’s disease, Stroke and Brain Injury Rehabilitation and has started the process for Orthopedic Rehabilitation Program Certification.

These specialized therapists offer a higher level of care whether it is for orthopedics or neurology, HealthSouth’s Stroke Center of Excellence where they are NIH (National Institute of Health) certified, or traumatic brain injuries or spinal cords, along with the latest rehabilitation technology.

“No other inpatient rehabilitation facility in this region comes close,” says Mayes. “There are sub-acute units in hospitals and nursing homes with short-term rehab, but we are the only freestanding rehabilitation inpatient hospital in the tri-state area, and we provide the highest level of care.”

Key to this higher standard of care is the time, flexibility and creativity that HealthSouth’s therapists incorporate into each patient’s individualized care plan.

For example, notes Atti, “I may want to know that I will be able to wash the laundry, iron my clothes, cook or bake. For someone else, it may be related to what they do for a living, whether it is using a tool or putting something together where you need the dexterity that you have lost.”

The hospital recently had a patient who needed to be able to lift and stack wood. HealthSouth’s therapy team turned to simulated activities of lifting weighted pounds using sandbags to help. “We got a little red wagon and had him practice lifting as if he were going to load wood,” notes Mayes. “You have to be really creative — and that is taking your creativity and simulating an activity so it is a function, meaning what the patient has to accomplish to go home.”

The No. 1 goal for all patients who come to HealthSouth is to return them back to community living.

“That can be living back home alone. It can be living with a caregiver or a family member, senior apartment or assisted living facility,” notes Mayes.

Commitment to Patient SatisfactionHealthSouth not only values its unparalleled patient outcomes, but its patient satisfaction as well.

The hospital relies on assessments from PressGaney, the industry’s recognized leader in health-care performance improvement, to compare itself not only to regional hospitals, but hospitals across the entire Health- South continuum.

“Besides getting you home,” explains Mayes, “our goal is making sure you are a satisfied customer during your stay here.”

The focus on satisfaction is a core part of the HealthSouth culture, in which employees practice the “CPR” philosophy, which stands for “Comfort, Professionalism and Respect.”

“We are really connected here at HealthSouth because what a housekeeper has to do for their job really has an important impact, as well as nursing, therapy, dietary and maintenance,” continues Mayes. “We are

all connected in getting the best customer service for the patient, from making sure that room is cleaned to ensuring that the patient is appropriately groomed. We strive to assure that our patients are comfortable and that their privacy needs are met.”

HealthSouth currently has a number of initiatives to improve satisfaction overall and employee engagement. The rehabilitation hospital has actively encouraged its nursing staff to achieve the level of certified rehabilitation registered nurse (CRRN). The comprehensive exam and classes — which are reimbursed by HealthSouth — require participants to work in rehabilitation for two years before sitting for the exam. The CRRN nurses help patients who are affected by chronic illness or physical disability achieve potential, learn to adapt to their disabilities, and work toward independent living.

“It is a challenging exam for all of them, and we already have over 20 CRRNs in the hospital, but it raises the level of the type of nurses that are caring for you,” notes Atti.

Also raising this level of care is the type of people who come to HealthSouth to work. The hospital has instituted tuition reimbursement, loan forgiveness programs and competitive compensation and benefits packages to find the highly skilled and trained professionals to work in the rehab hospital. In addition, HealthSouth’s recognition programs — Employee of the Month and Employee of the Year — and comprehensive orientation programs help to engage employees toward a higher level of service.

It is this committed team of health-care professionals, combined with its specialized therapy programs and focus on patient care satisfaction, which continues to make HealthSouth a recognized leader in rehabilitation.

And, as Atti states, has allowed HealthSouth Rehabilitation of Erie to fulfill its core mission of “getting people back to work… to play… to living.” “Let us heal you,” she says.

For more information, visit www.healthsoutherie.com.

The hospital has a dedicated nursing staff, represented by (clockwise, from front left): Nurse Manager Elizabeth McCracken, CRRN, BSN; Wound Care Coordinator Janet Schafer, RN, BSN, CWON; Infection Control Coordinator Janet Moore, CRRN; Nurse Manager Melody Rosenbaum, CRRN; Charge Nurses Lauren Hasbrouck, CRRN and Jennifer Lemmo, RN, BSN; and Chief Nursing Officer Evelyn T-Armstrong, CRRN, BSN, MSN.

HealthSouth utilizes the latest technology in physical therapy, such as this Makoto Arena, to improve patient outcomes, as well as the REO, Upper and lower extremity Bioness, Hand and Foot mentor, Game Cycle, Moto-Med, Auto-Ambulator, Wii Rehab, Vital Stimulation, Fluidotherapy, and Assisted Tech Lab, to name a few.


Training That Develops

Effective Leaders

T R A I N I N G S C H E D U L E

As a leader in professional development and computer training programs for more than 20 years — the Manufacturer & Business Association’s expert trainers deliver the knowledge and skills you need to compete in today’s business world.

From left: Tammy Drayer, Association HR webinar and Computer Training

participant; Carli Braine, Leadership for Team Leaders and Food Safety Certification

graduate; Nick Wagers, Top 10 Essential Skills for New Supervisors participant and

Food Safety Certification graduate; Diana Groters, Food Safety Certification

graduate and HR Essential Certfication Series participant; and Karen Haney,

Food Safety Certification graduate.

“Our team has utilized the Manufacturer & Business Association (MBA) courses for every aspect of our business. The food safety courses are much more

convenient at the MBA because it is a one day class. We also save money taking the courses

at the MBA. Our team leaders, myself included, have learned from the Supervisory Skills Series,

Leadership Classes, HR and Management courses, computer classes and more. The instructors keep

the information interesting and current. Every class I have attended there has been information

I could put to use immediately. Having the opportunity to take some courses as webinars has been helpful too. The difference in our team — in their confidence and skill — has been extremely

helpful as we continue to grow and improve.”

— Liz Brown, President

LJ Development, Inc.

March AprilProfessional Development

Certified Supervisory Skills Series Course I 4/3 and 4/10 Course II 4/9 and 4/16 Price: $295 Members, $415 Nonmembers

Leadership for Team Leaders Course II 4/17 Price: $175 Members, $315 Nonmembers

Food Safety Certification 4/15 Price: $145 Members, $250 Nonmembers

HR Essential Certification Series: Interviewing & Hiring (DuBois, 8 – 10 a.m.) 4/10 Employment Law (DuBois, 10:15 a.m. – 12:15 p.m.) 4/10 Terminations (DuBois, 1:30 – 3:30 p.m.) 4/10 Discrimination & Harassment (DuBois, 9 – 11 a.m.) 4/11 Compensation & Benefits (DuBois, 12:30 – 3:30 p.m.) 4/11 Discrimination & Harassment in the Workplace 4/18Price: $70 Members, $140 Nonmembers

ComputerAccess 2007/2010 Level I 4/30Access 2007/2010 Level III 4/9Excel 2007/2010 Level I 4/18Excel 2007/2010 Level II 4/25Excel 2007/2010 Level III 4/11Price: $175 Members, $310 Nonmembers

Professional DevelopmentCertified Supervisory Skills Series Course I 3/19 and 3/26 Course III (Warren) 3/14 and 3/21 Price: $295 Members, $415 Nonmembers

Leadership for Team Leaders Course I 3/27 Price: $175 Members, $315 Nonmembers


Lean Operations Champion Training (Three-Day Workshop) 2/11, 3,11 and 4/19 Price: $950 Members, $1,350 Nonmembers (includes lunch)

Six Sigma-Green Belt: Certification & Implementation (Three-Day Workshop) 2/14, 3/14 and 4/18 Price: $950 Members, $1,350 Nonmembers (includes lunch)

HR Essential Certification Series Interviewing & Hiring (Bradford, 8 – 10 a.m.) 3/13 Employment Law (Bradford, 10:15 a.m. – 12:15 p.m.) 3/13 Terminations (Bradford, 1:30 – 3:30 p.m.) 3/13 Discrimination & Harassment (Bradford, 9 – 11 a.m.) 3/14 Compensation & Benefits (Bradford, 12;30 – 3:30 p.m.) 3/14 Employment Law – What HR Should Know 3/21Price: $70 Members, $140 Nonmembers

NEW HR Compensation Programs Fundamentals of Compensation (Warren) 3/21 Wage-and-Hour Fundamentals: Exempt vs. Nonexempt Meadville (Half Day) 3/7 Warren (Half Day) 3/22 Performance Management & Evaluations Meadville (Half Day) 3/7 Warren (Half Day) 3/22Price: Full-Day Courses - $240/each Members, $480/each Nonmembers;Half-Day Courses - $120/each Members, $240/each Nonmembers

ComputerAccess 2007/2010 Level I 3/5Excel 2007/2010 Level I 3/7 Excel 2007/2010 Level II 3/14Price: $175 Members, $310 Nonmembers

Access 2007/2010 Level II (Two Days) 3/12 and 3/19Price: $350 Members, $460 Nonmembers

T R A I N I N G

“Shorty after joining the Manufacturer & Business Associa-tion, I learned of the HR Essential Certification Series. Know-ing that our company was growing and there were aspects of Human Resources with which I needed guidance, I signed up for the series. Our instructor was very familiar with both PA and federal laws. I enjoyed the fast-paced classes, which were packed with pertinent, up-to-date information and real-life scenarios from other local businesses. No matter what level of HR experience you have, you will find these classes very educational.”

— Tammy Ricci, Office Manager

Moody and Associates, Inc.

“After taking the HR Essential Certification Series at the MBA, I have found that all the information has become very useful in my everyday work environment. Our instructor did an ex-cellent job presenting the information in a way that kept your attention and also taught you what you needed to know.”

— Dina Heile, Administrative Assistant

Intellectual Property Services

“Whether it is computer classes or professional development courses, the training provided by the Manufacturer & Busi-ness Association has allowed us to provide a cost-effective solution that is critical to our ability to stay competitive.”

— Joy Sherry, Human Resources Director

Ainsworth Pet Nutrition

MayProfessional Development

Certified Supervisory Skills Series Course I 5/16 and 5/23 Course II 5/1 and 5/8 Course III 5/7 and 5/14 Course III 5/29 and 6/5 Price: $295 Members, $415 Nonmembers

Leadership for Team Leaders Course III 5/22 Price: $175 Members, $315 Nonmembers


HR Essential Certification Series: Interviewing & Hiring (Grove City, 8 – 10 a.m.) 5/8 Employment Law (Grove City, 10:15 a.m. – 12:15 p.m.) 5/8 Terminations (Grove City, 1:30 – 3:30 p.m.) 5/8 Discrimination & Harassment (Grove City, 9 – 11 a.m.) 5/9 Compensation & Benefits (Grove City, 12:30 – 3:30 p.m.) 5/9 Terminations — Keeping It Legal 5/16Price: $70 Members, $140 Nonmembers

ComputerExcel 2007/2010 Level I 5/9 Excel 2007/2010 Level II 5/23 Excel 2007/2010 Level III 5/30Price: $175 Members, $310 Nonmembers

Access 2007/2010 Level II (Two Days) 5/14 and 5/21Price: $350 Members, $460 Nonmembers

TrainingRegional Locations

All courses are held at the MBA Conference Center in Erie, unless otherwise noted.Bradford: Holiday Inn Express 30 Tarport Drive Extension

Erie: Manufacturer & Business Association Conference Center 2171 West 38th Street

DuBois: Best Western 82 North Park Place

Franklin: Franklin Industrial & Commercial Development Authority 191 Howard Sreet

Hermitage: LindenPointe 3182 Innovation Way

Kittanning: Armstrong Educational Trust 81 Glade Drive

Meadville: Holiday Inn Express 18240 Conneaut Lake Road

Mercer/Grove City: Hampton Inn, Grove City 4 Holiday Boulevard

St. Marys: Community Education Council of Elk and Cameron Counties 4 Erie Avenue, Suite 200

Warren: Warren/Forest Higher Ed Council 589 Hospital Drive, Suite F

Williamsport: Genetti Hotel 200 W. Fourth Street

* Handicap access and parking available at all sites.

Onsite TrainingGet more flexibility and convenience with our onsite training options.

Join the hundreds of companies who’ve found our onsite training options to be the most cost-effective and convenient choice for group instruction.

• Flexible and convenient scheduling • Customized instruction • Eliminate travel expenses

Whether you need a half day or full day of professional development or computer training — let our expert trainers come to you!

Course RegistrationContact Ann Miaczynski at 814/833-3200, 800/815-2660 or [email protected] to register or for more information on upcoming courses. Online registration also is available at www.mbausa.org.

S C H E D U L E

“Environmental Reclamation Services takes pride in the con-tinued education of our employees. In seeking out a program that clearly defines the expectations we have for our supervi-sors, we looked no further than the Manufacturer & Business Association in Erie, Pa. Their leadership seminars identify and sharpen the skills necessary to produce qualified supervisors while fine-tuning the natural abilities our employees bring to the table.”

— Bridget Trojanowski, Human Resource Manager

Environmental Reclamation Services

“Investing in management education for both new and seasoned leaders has not only influenced corporate success, but has contributed to many successful career paths. The MBA-USA programs are high quality, accessible and afford-able. That translates into great value.”

— Gary M. Maras, Chief Executive Officer

Medicor Associates Inc.

Howyouneedit. Whenyouneedit. Whereyouneedit.Considered a leader in professional development and computer training for more than 20 years, the Manufacturer & Business Association offers you the ease and flexibility of onsite training for groups of six or more employees.

ONSITE TRAINING

OnsiteConvenience:Nothing beats the convenience of training conducted at your facility. Let our expert instructors bring the training you need, when you need it, where you need it.

CustomizedPrograms: From full-day to half-day programs, all of our courses can be tailored to address your organization’s specific needs.

FocusedInteraction: Facilitated by our training specialists, your employees’ experience is further enhanced through group discussion on key topic areas specific to your company’s work environment.

Call Ann Miaczynski for more information about onsite training programs at 800/815-2660 or 814/833-3200, or visit www.mbausa.org.

PROFESSIONALDEVELOPMENT

Supervisory Skills

Leadership for Team Leaders

Customer Service

One-Day Food Safety Certification

And much more!

COMPUTERTRAINING

Word Levels I, II, III

Excel Levels I, II, III

Access Levels I, II, III

Outlook

And much more!

IF YOU’RE NOT GETTING A QUOTE FROM US,

YOU MAY NOT BE PAYING THE LOWEST RATES.

Exclusive discounted

rates from the nation’s

leading providers.

Call your broker or the

MBA at 814/833-3200

or 800/815-2660, or

visit mbausa.org for

more information.

GROUP HEALTH CARE

DENTAL INSURANCE

LIFE, AD&D & SHORT-TERM DISABILITY

WORKERS’ COMPENSATION

MEMBERS ONLY





leading providers.


MBA at 814/833-3200

or 800/815-2660, or


more information.

GROUP HEALTH CARE

DENTAL INSURANCE



MEMBERS ONLY





leading providers.


MBA at 814/833-3200

or 800/815-2660, or


more information.

GROUP HEALTH CARE

DENTAL INSURANCE



MEMBERS ONLY

1109 East 38th Street • 1005 Greengarden Road • 2436 Buffalo Road • 518 State Street

5500 Zuck Road • 1220 West 32nd Street • 1825 Downs Drive

Short and Long Term Loans

Lines of Credit

Equipment Financing

Business Checking & Savings

Business MasterCard® Credit Card

Business MasterCard® Debit Card

SBA Loans

Betty Reynolds, Commercial Lender

(814) 825-2436 Ext. 1051

[email protected]

www.eriefcu.org

Learn how Erie FCU can assist with your business needs.

(814) 825-2436 • (800) 480-0494

Kristi Bailey, Director of Business

Development Services

(814) 825-2436 Ext. 1035

[email protected]

*Loans subject to credit approval. Membership eligibility required.

Merchant Services

Merchant Direct Program

Financial Services for Employees

Erie Federal Credit Union is the only credit union in Erie offering business loans!

MANF Ad full-page (0113).indd 1 1/3/13 4:56 PM

With attention focused on health-care reform and the “fiscal cliff,” it is a good time to be reminded of the consequences of violation of the federal False Claims Act (“FCA”), which is seen by some as an important component of any fiscal compromise in a divided Congress.

The health-care industry has felt the brunt of the FCA in recent years. The Department of Justice recently announced that it recovered a record $4.9 billion from FCA judgments and settlements in last FY 2012, with more than $3 billion coming from health-care providers accused of defrauding Medicare and other government programs. But exposure is not limited to the health-care industry. Housing and mortgage fraud accounted for the second largest area of recovery. In fact, any government contractor or entity, including nonprofits, which receives government grants or reimbursements or otherwise “does business“ with the federal government, has the potential to run afoul of the FCA.

The FCA imposes liability upon any person who knowingly submits a false claim to the government, causes another to submit a false claim to the government, or knowingly makes a false record or statement to get a false claim paid by the government. The FCA also encompasses reverse false claims, where liability is imposed when one improperly avoids payment to the government, such as when an entity that receives government funds pursuant to a government contract is overpaid but fails to return the overpayment.

FCA ViolationsTo violate the FCA, a person must have submitted, or caused the submission of, a false claim with knowledge of its falsity. Knowledge is broadly defined to include actual knowledge, deliberate ignorance or reckless disregard of the truth or falsity of the information. FCA liability may attach to funds received

directly from the federal government as well as funds dispensed through intermediaries, such as funds distributed to and by states and state agencies that are derived from the federal government. Liability will be imputed to an employer for false claims submitted by an employee.

The FCA imposes severe damages and penalties, usually far in excess of the actual damage incurred by the government. On top of the government’s actual damages, the FCA provides for a civil penalty of between $5,500 and $11,000 for each false claim, and three times the government’s actual damages, plus costs and attorneys’ fees. In extreme cases, debarment (disqualification as a government contractor) may be imposed, but more likely threatened to leverage a settlement.

In addition to the federal government, private individuals called “whistleblowers” or “qui tam relators,” may bring suit on behalf of the government. In FY 2012, 647 whistleblower suits were filed and $3.3 billion of the total recoveries resulted from these qui tam suits. Whistleblowers, who can keep up to 30 percent of the government’s total recovery, often are employees of the defendant. Not only do employee whistleblowers have tremendous financial incentive to report suspected fraud, the FCA also prohibits retaliation against whistleblowers, and an employer must be careful how it responds to an employee whistleblower situation. Liability for retaliation against an employee whistleblower can include reinstatement, twice the amount of lost wages plus interest, compensation for special damages and attorney’s fees.

More Aggressive Enforcement ExpectedWith the current debate over health-care reform, cuts in government spending programs and deficit reduction,

coupled with record recoveries in FY 2012, expect even more aggressive enforcement of the FCA in FY 2013. Likewise, increased visibility of the FCA is likely to encourage more private individuals to blow the whistle on suspected fraud by employers and service providers.

What Can be Done to Minimize Risk? Companies should review operations to ensure compliance with all billing and certification requirements and all grant or contract terms and conditions. Employees should be appropriately trained and billing procedures should be updated. Internal and external audit and control procedures should be in place, routinely updated and utilized. And, because a majority of employee whistleblowers first raise their concerns internally, employers should implement a code of conduct as well as policies and procedures to encourage internal reporting of compliance concerns. For more information about the False Claims Act, contact Matthew W. McCullough at MacDonald, Illig, Jones & Britton LLP at 814/870-7602 or [email protected].

Matthew W. McCullough is a senior partner at Mac-Donald, Illig, Jones & Britton LLP. His practice consists primarily of labor and employment advice and litigation for employers, as well as a commercial litigation practice involving a wide range of contract and other business dis-putes in state and federal courts.

Legal BriefDoing Business With the Federal Government? Watch Out for the False Claims Act

EDITORIAL > By Matthew W. McCullough


OntheHillDEPARTMENTS > Contact: Lori Joint

When Randy O’Dell opens the doors of Jafe Decorating Co. each morning, he sees the faces of 40 people, each with different talents, skills and dreams. Like most small employers, he and his employees are close, almost like family and they share a future that depends on the survival of the Greenville, Ohio glass manufacturing business.

Those of you who have employees or who hope to grow big enough to need others to help you build your business appreciate the value of productive employees. They aren’t just people who punch in and out every day; they are important contributors to your business and the financial foundation that holds their nation together.

But President Obama’s administration is changing that. You see it in virtually every corner of your operations — new rules, new regulations, more mandates, trickier taxes and demands that you spend your time filling out non-essential paperwork.

Randy O’Dell would never call an employee “Mrs. Ten-thousand, five hundred dollars;” he’d say her name. But if federal regulators aren’t reined in, that might be the first thing that comes to his mind when his crew shows up for work each morning. $10,500 — that’s how much the average small business pays per employee each year to comply with government rules.

Since 2005, major federal regulations — those that will cost the economy more than $100 million or more — have increased 60 percent. Over 220 were decreed last year, the highest number ever recorded.

And more are on the way. Soon to spurt from the federal pipeline are another 4,226 regulations, 845 of which will have an impact on small businesses.

Meeting the demands of federal regulations costs Brad Muller’s Charlotte, N.C. Pipe and Foundry Co. millions of dollars each year in staff time, equipment and programs.

And that’s just one American small business. Look around your place and you can understand that when you add all the countless hours wasted with government nitpicking, and multiply that by millions, it’s no surprise that the drain

on the nation’s economy diverts $1.75 trillion a year — more than 12 percent of our gross domestic product.

Maddening, isn’t it? But getting mad is only the first step to finding a solution to runaway regulation.

It’s time to slam the brakes on the federal government’s rule-making machine. Join NFIB’s new campaign to bring balance to Washington’s regulatory process. Get active in “Small Businesses for Sensible Regulation” today, an important effort that will feature personal stories of small businesses like Randy O’Dell’s and Brad Muller’s that excessive regulation is smothering.

The future of your business and millions of others depends on this campaign.

Dan Danner is the president and CEO of the National Federation of Independent Businesses. For more information, visit www.nfib.com.

Mad Enough to Slam the Brakes on Federal Regulators?

Small Business Facts• Small businesses have generated 64 percent of net

new jobs over the past 15 years and employ just over half of all private sector employees.

• Small businesses pay 44 percent of total U.S. private payroll and create more than half of the nonfarm private gross domestic product (GDP).

Source: Small Business Administration

The Impact of Regulations on Pennsylvania• 4,128 regulations could be implemented over the

next four years, which would greatly impact the American economy.

• $515 billion is the estimated cost of planned regulations to the economy.

• 1,025,894 people who work in Pennsylvania’s major industries could be impacted by the tidal wave of regulations.

• $106 billion of Pennsylvania’s gross state product (GSP) could be negatively impacted.


OntheHill

“Our society must make it right and possible for old people not to fear the young or be deserted by them,” wrote novelist Pearl Buck in My Several Worlds, “for the test of a civilization is the way that it cares for its helpless members.”

For our nation at large, and those of us engaged in caring for aging parents and seniors in our community, the test is at hand. The number of Americans age 65 and over is predicted to double in the next two decades. By 2030, there will be 71 million older adults accounting for 20 percent of our total population. Currently, in Erie County, 14.6 percent of the population is 65 or older, a demographic segment comprising nearly 41,000 people, approximately the entire population of neighboring Warren County. Most sobering is the fact that 85 percent of the 10,000 Americans who turn 65 each day will require in-home caregiving assistance during their lifetimes.

Chronic diseases, chronic pain, falls and related trauma, and cognitive decline are the major factors influencing the quality of life for seniors. Chronic diseases — heart disease, cancer and stroke — account for 61 percent of deaths of people 65 and older. These and other diseases, particularly diabetes, respiratory disorders and arthritis, typically result in pain, disability, and loss of function and independence. In fact, arthritis and related rheumatic conditions are the leading cause of disability in the United States, and their incidence among the elderly is estimated at 50 percent. Falls are the leading cause of deaths due to accidents, and the most cause of injuries and hospital admissions among adults 65 and older.

Dementia, a collective term for numerous brain disorders — including Alzheimer’s disease — that affect

intellectual and social function and interfere with the activities of daily living, is also a pervasive threat to older adults. The National Institute on Aging estimates that as many as 5.1 million Americans may have Alzheimer’s. In Erie County, 2.2 percent of deaths are annually attributed to the disease.

Available ResourcesOn the local level we’re meeting these challenges by ensuring that seniors have access to nationally ranked acute and secondary health care, as well as community based nursing and assisted living facilities. Nevertheless, these resources must be complemented on a personal level by informed and committed caregivers providing support services in the home.

“Home care” encompasses health-care services provided by licensed medical professionals, as well as nonmedical professionals, from a licensed agency that provides personal care, homemaking and companionship services. This later group of services entails help with the activities of daily living (ADLs) such as eating, dressing, bathing and toileting, as well as instrumental activities of daily living (IADLs) such as driving, preparing meals, housework, shopping and medication reminders.

Determining the Right Choice for YouChoosing the best care for aging parents and other seniors is a complex process. It’s also highly personal and often emotional. However, invaluable assistance is available from a number of community resources, such as the Independent Council on Aging, a not-for-profit coalition of individuals, agencies and businesses from the public and private sectors providing services to seniors in Erie County. The Council

can help guide family caregivers and others through a list of considerations for making more informed choices about such services as home care, retirement communities, adult day centers, nonmedical caregivers, assisted living facilities, nursing homes and hospice. It is also an excellent resource for information about financing senior living and long-term care.

As the number of aging in our community increases, their quality of life will become an even greater challenge to our collective and individual commitment to meeting their needs. Their futures are in our hands. In preparing ourselves to become our parents’ keepers, we’re assured positive outcomes by making knowledge and compassion our steadfast guides.

For more information, contact Dianne Cunningham at Home Instead Senior Care at [email protected] or 814/464-9200.

Caring for the Aging: Preparing Ourselves to Become Our Parents’ Keepers

Aging & WellnessEDITORIAL > By Dianne Cunningham

Dianne Cunningham and her husband Bob are owners and operators of Home Instead Senior Care, a licensed agency that helps seniors to “age in place” by providing ADL and IADL personal care services throughout Erie County. They are members of the Independent Council on Aging and the Alzheimer’s Associa-tion of Northwestern Pennsylvania Advi-sory Board, among other organizations.


HR ConnectionHEALTH-CARE LAW MAY MEAN LESS HIRING IN 2013Many businesses plan to bring on more part-time workers in 2013, trim the hours of full-time employees or curtail hiring because of the new health-care law, human resource firms say.

Under the Affordable Care Act, businesses that employ at least 50 full-time workers — or the equivalent, including part-time workers — must offer health insurance to staffers who work at least 30 hours a week. Employers that don’t provide coverage must pay a $2,000-per-worker penalty, excluding the first 30 employees.

The so-called employer mandate to offer health coverage doesn’t take effect until January 1, 2014. But to determine whether employees work enough hours on average to receive benefits, employers must track their schedules for three to 12 months prior to 2014 — meaning many are restructuring payrolls now or will do so early next year.

About a quarter of businesses surveyed by consulting firm Mercer don’t offer health coverage to employees who work at least 30 hours a week. Half of them plan to make changes so fewer employees work that many hours.

STRESS IS TOP CONCERN FOR EMPLOYEE WELLNESS, SMALL BUSINESS OWNERS SAYA recent study of more than 1,000 small-business owners and decision-makers shows small-business owners’ most pressing wellness concerns include stress and employees’ sick days. High employee stress ranks No. 1.

The national study — by Humana Inc., one of the nation’s leading health-care companies, and the National Small Business Association (NSBA) — offers some insights into the current small business wellness environment. The study found that while an overwhelming 93 percent of small-business owners consider

employees’ physical and mental health as contributors to business results, only one-third are confident in their ability to help employees manage their health and wellness.

Currently 22 percent of small businesses offer their employees access to such options. Three in four say such programs enhance their profits.

“As the economy continues to improve, wellness solutions likely will continue to be of interest and an increasingly important part of the employee value proposition,” predicts Jerry Ganoni, president of Humana’s small group employer segment.

According to Ganoni, it’s crucial for the health insurance industry to focus on providing small-business owners with the information they need to make wellness decisions that will help to recruit and retain employees while enhancing their bottom lines.

D E R E G U L AT E D N AT U R A L G A S

800-471-7091 • deltadentalins.com

Our SmileWaySM Wellness Program has activities, videos and more to help you achieve a healthy smile.

• Read oral health articles • Take the SmileWay Challenge • Subscribe to the e-newsletter

mysmileway.com

At Delta Dental of Pennsylvania, we offer dental plans that feature:

• Less out-of-pocket• More dentists• Simpler process

whatever it takes and then some


DEPARTMENTS > Contact: Stacey Bruce

According to a recent survey by the International Foundation of Employee Benefit Plans, 84 percent of U.S. employers report they are very likely to or definitely will continue to provide health insurance for full-time employees when public exchanges are scheduled to become available starting in 2014. The reasons for doing so are because employers wish to maintain employee satisfaction and retain current employees.

Employers will face a monetary penalty for employees going to the public exchange. Although the penalty may not be cumbersome at first, many employers also may feel obliged to increase employee pay in order for the employee to pay for their own coverage. Only lower-income individuals and families will be eligible for federal subsidies to help pay for the insurance bought in a

public exchange. The employer would then be paying the penalty, paying employees more to allow them to buy their own health insurance and lose the tax deduction attached to offering benefits.

To learn more, I urge you to read this month’s For What It’s Worth column, “Pennsylvania’s Businesses, Consumers Deserve More When It Comes to Public Health Exchanges” on page 3.

As a result of public exchanges, many employers may start to look into private exchanges as opposed to the public exchanges. Private exchanges do not have all the cumbersome regulations and penalties attached to the public exchanges. Private exchanges typically will offer more decision-support tools and personalized help for users that likely will not be as available in state and federal government exchanges.

Private exchanges may become the new way to offer health insurance. 2013 will be a telling year as all segments prepare to venture into the next era of employee benefits.

For more information about health insurance exchanges, contact me at 814/833-3200, 800/815-2660 or [email protected].

Private Exchanges May be New Modelfor Health Insurance in the Future

Patty Smith is the director of Employee Benefit Services at the Manufacturer & Business Association.


New for 2013Waldameer is giving a new look to the Park with the addition of the Music Express Zone. This zone includes the new Music Express thrill ride, an updated, relocated Scrambler and a new water fountain, both featuring colorful programmed LED light-ing, plus a beautiful garden with large bronze sculpture.

Why have a picnic at Waldameer?• Excellent opportunity to get to know your employees and their families, and for them to get to know you.

• Great way to celebrate your company’s anniversary or other milestones.

• Perfect way to reward your employees for a job well done.

• A picnic at Waldameer is incredibly easy to organize - because we do all the work!

CAN WE REFUSE HEALTH INSUR-ANCE TO AN EMPLOYEE WHO REFUSES TO PARTICIPATE IN A HEALTH RISK ASSESSMENT (HRA)?The Americans with Disabilities Act (ADA) says that health and disability related inquiries and employee medical examinations must be “completely voluntary” unless they are specifically job-related and consistent with business necessity.

An informal Opinion Letter from the Department of Labor indicated that HRA participation is not considered to be voluntary if its completion is required for an employee to be eligible for an employer’s health plan or to receive the employer contribution.

Based on this information, denying an employee access to the employer’s health plan is not advisable for refusal to participate.

WHAT REWARDS CAN I PROVIDE AS PART OF A WELLNESS PROGRAM? ARE THOSE REWARDS TAXABLE?Aside from the requirement for a standards-based program that you keep rewards to no more than 20 percent of the employee-only premium, you may implement rewards as you see fit. Studies have shown that employees are most motivated by gift cards, insurance premium reductions, and cash awards in wellness programs.

Any fringe benefit you provide is taxable and must be included in the employee’s pay unless the law specifically excludes it. A de minimis benefit is any property or service you provide to an employee that has so little value that accounting for it would be unreasonable or administratively impracticable. Items

of de minimis value could include a badge, coffee, doughnuts, or a company pen, for example.

Cash and cash equivalent fringe benefits (for example, a gift card or savings bond) — no matter how small the amount — are never excludable as a de minimis benefit and are always taxable. Non-cash awards that are not of de minimis value generally must be included as income at their fair market value. Fair market value is considered the amount an employee would have to pay a third party for the benefit.

HAVE AN HR QUESTION? GET ANSWERS!As an Association member, you can call our certified HR specialists and labor and employment law attorneys anytime for counsel on a broad range of workplace-related issues, at no charge. Call today at 814/833-3200 or 800/815-2660!

HR Q&A


Stacey Bruce is the HR supervisor at the Manufacturer & Business Association.

The federal government rolled out a number of proposed rules on November 20 dealing with the implementation of the Affordable Care Act (ACA). Below are two of those requirements.

Wellness Program RequirementsThe proposed wellness rules, which would be effective for plan years starting on or after January 1, 2014, create new incentives and build on existing wellness program policies.

The proposed rules implement changes in the ACA that increase the maximum permissible reward under a health-contingent wellness program from 20 percent to 30 percent of the cost of health coverage. They also further increase the maximum reward to as much as 50 percent for programs designed to prevent or reduce tobacco use.

Health-contingent wellness programs require an individual to satisfy a standard related to a health factor to obtain a reward. For example, a program may impose a premium surcharge based on

tobacco use, or may give employees a reward for having cholesterol within a healthy range.

With the exception of the modification of the size of the reward, the proposed wellness regulations relating to health-contingent wellness programs generally maintain the five requirements of the 2006 regulations.

Consistent with current regulations, the proposed rules also divide wellness programs into two categories: participatory programs and health-contingent wellness programs.

Essential Health BenefitsUnder the ACA, health plans offered in the individual and small group markets offer a core package of items and services, known as “essential health benefits.” These benefits must include items and services within at least the following 10 categories:

• Ambulatory patient services;• Emergency services;• Hospitalization;• Maternity and newborn care;

• Mental health and substance use disorder services, including behavioral health treatment;

• Prescription drugs;• Rehabilitative and habilitative services

and devices;• Laboratory services;• Preventive and wellness services and

chronic disease management; and• Pediatric services, including oral and

vision care.

The benefits also must be equal in scope to benefits offered by a “typical employer plan.”

For more information, please contact me at 814/833-3200 or 800/815-2660.

Proposed Rules Address AffordableCare Act Implementation

DEPARTMENTS > Contact: Stacey Bruce

A comprehensive physical tailored to your health. AND YOUR SCHEDULE.The UPMC Hamot Executive Physical Program provides the convenience of a full list of health screening services in just a few hours — and all in one place. After a range of specialists perform individual evaluations, our doctor will provide your personalized health report on areas including:

• Laboratory results

• Lipid evaluation

• Chest x-ray• Pulmonary

function

• General fi tness• Cardiac stress test

(patients over 50)

Executive physicals are conducted at UPMC Hamot. Patients receive valet parking and follow-up consultations with a registered nurse.

To make an appointment, call 814-877-5481, or visit UPMCHamot.org for more information.


PRESBYTERIAN HOMES WELCOMES NEW SENIOR DIRECTOR, DIRECTOR OF SALES & MARKETINGPresbyterian Homes recently welcomed Roberta Gray as its new senior director and Lindsey Green as its new director of sales and marketing.

Gray brings nearly 30 years of experience in senior living, personal care and skilled nursing facilities, serving as a nursing home administrator since 1983.

Throughout her career, Gray has earned commendations of excellence from the Continuing Care Accreditation Commission and Commission on Accreditation of Rehabilitation Facilities. She also developed innovative programs to promote staff and resident wellness, quality improvement and social accountability to better fulfill the organization’s mission.

Meanwhile, Green, a graduate of the University of Pittsburgh – Bradford, brings seven years of marketing experience to Presbyterian Homes.

In her new role, Green will be responsible for marketing strategy and execution as well as referral and relationship building at Presbyterian Homes communities in Erie and Fairview.

CUSTOM ENGINEERING CO. HIRES MARKETING DIRECTORCustom Engineering Company, located in Erie Pennsylvania, recently hired Edward McDermit as the company’s marketing director.

In his new role, McDermit is responsible for developing, implementing and facilitating annual marketing plans for the

company; planning and administering the company’s marketing operations budget; negotiating with media agents to secure agreements for translation of materials into other media; and overseeing business development activities and corporate communication activities. His duties also include the marketing activities of Custom affiliates Lamjen, Inc. and Venango Machine Company.

McDermit previously worked as a marketing consultant for PSB Industries, Mikron Valve, Ropack Packaging, Avantis restaurant and as a sales and marketing specialist with Jameson Publishing (Vert Markets). He has a degree in business administration from the Erie Business Center.

HBK ANNOUNCES TEAM MEMBER PROMOTIONSHill, Barth & King LLC (HBK), Certified Public Accountants and Business Consultants, recently announced the following team member promotions:

Promoted to supervisor are: Justin Buschman (Erie); Jaclyn Thomas (Hermitage); and Daniel Dunphy (Pittsburgh). Jennifer Fisher (Hermitage) has been promoted to the senior level.

HBK, which ranks as the 82nd largest public accounting firm in the nation, has more than 280 professional and support staff members who serve clients in 12 offices located throughout Ohio, Pennsylvania and Florida.

HAMOT HEALTH FOUNDATION NAMES NEW CHIEF DEVELOPMENT OFFICER Ann Bula has been appointed chief

development officer and president for Hamot Health Foundation in Erie.

In this role, Bula will provide leadership for all Hamot Health Foundation philanthropic programs and initiatives, including fundraising, community outreach, employee and patient support, and will collaborate with the Hamot Health Foundation Board of Corporators. Additionally, she will oversee the strategic planning efforts for Hamot Health Foundation and offer executive and Board leaders counsel on matters relating to philanthropy.

Prior to joining UPMC Hamot, Bula served in various capacities at the Heritage Foundation, a well-known research and educational institution in Washington, D.C. that formulates and promotes public policy. She holds a management certificate from Georgetown University, in Washington, D.C., and a bachelor’s degree in political science from Mercyhurst College.

RETIREMENT SERVICES OF ERIE ANNOUNCES OWNERSHIP CHANGEThe third-party administration firm Retirement Services of Erie, LLC recently announced an ownership change.

Kevin L. Slocum, CFS, a registered principal with LPL Financial, is also now the principal and owner of Retirement Services of Erie. Slocum earned a bachelor’s degree from Penn State Behrend and has 17 years of experience working in the financial services industry.

Slocum holds the certified fund specialist (CFS) designation from The Institute of Business and Finance and, in 2011, completed the CFP Certification Professional Education Program from the College for Financial Planning. He also has several state security registrations as well as a Pennsylvania insurance license.

People Buzz


DEPARTMENTS > Contact: Karen Torres

F.N.B. WEALTH MANAGEMENT ADDS PORTFOLIO ADVISER IN ERIEFirst National Investment Advisors, Inc., a subsidiary of F.N.B. Wealth Management, has hired David Bonner as assistant vice president and portfolio adviser based in Erie.

In this role, he will execute customized investment strategies for individual, trust and institutional clients to help them achieve their financial goals.

Prior to joining F.N.B. Wealth Management, Bonner served as assistant portfolio manager with HBKS Wealth Advisors in Erie, and as a portfolio analyst for Northwest Savings Bank in Warren. He earned an MBA from Virginia Commonwealth University in addition to a bachelor’s degree

in history from the Virginia Military Institute in Lexington, Virginia.

NORTHWEST BANK’S GENIS EARNS CERTIFIED FRAUD EXAMINER CREDENTIALThe Association of Certified Fraud Examiners (ACFE), the world’s largest anti-fraud organization and leading provider of anti-fraud training and education, has awarded Nicole H. Genis of Northwest Savings Bank, the globally preferred Certified Fraud Examiner (CFE) credential. In order to become a CFE, Genis has met a stringent set of criteria and passed a rigorous exam administered by the ACFE.

Genis is currently an internal auditor for Northwest’s corporate headquarters in Warren. She joined the bank in 2008

after graduating from Indiana University of Pennsylvania with a bachelor’s degree in accounting.

In addition, Deborah J. Chadsey has been elected to the Board of Directors of Northwest Bancshares, Inc.

Chadsey is an attorney who has practiced law for 25 years. She is currently a partner in the Buffalo, New York law firm Kavinoky Cook LLP. Prior to joining Kavinoky Cook LLP, Chadsey practiced law with Lippes, Silverstein and Phillips, Lytle, both also in Buffalo, New York.

Prior to being elected to the Board of Northwest Bancshares, Inc., she has served as a member of the Northwest Savings Bank New York State Advisory Board for the past three years and the Northwest Savings Bank Board of Directors since December 2011.

Celebrating our 99th year in business!

J.H. BENNETT MOVING & STORAGE INC. A Family Tradition Since 1914

Full-service relocation and transportation services… from anywhere in the U.S. … to anywhere in the U.S.

814-456-5377 1-800-542-8668 1705 Raspberry St., Erie, PA 16502

www.jhbennett-moving.com

FLEXIBLE MOVING SOLUTIONS FULL-SERVICE TO DO-IT-YOURSELF MOVING & STORAGE

Prices include delivery of a Mini to your door. Pick-up and move to new location, then pick-up of empty Mini when move is complete.

Store your Mini at your place or ours! 814-459-9191

Cross Town Moves, Storage and Staging

www.gominiserie.com

12’, 16’ & 20’ Mini’s Available. We sell locks, boxes, tie downs

and moving supplies.


PRSRT STD US POSTAGE

PAID ERIE, PA

PERMIT #199

…the smart new solution for small and mid-sized businesses in Erie, Crawford, Warren, and Mercer counties — from UPMC Health Plan.

Come on In!

Lower employer premiums. Lower employee costs.

UPMC Inside Advantage™ is a tiered network plan that provides the same types of coverage as other UPMC Health Plan offerings — but at a lower premium and lower out-of-pocket costs whenever employees choose to use quality hospitals right in their community.

It’s about savings. It’s about quality. It’s about convenience.

It’s about time.What are you waiting for?Come on In!

For information, call:UPMC Health Plan – Erie Office109 Boston Store PlaceErie, PA 16501814-833-6633

February 2013 Business Magazine

Documents

Transcript of February 2013 Business Magazine