2009-12-01 Eagan Business NewsJOURNAL OF THE EAGAN BUSINESS COMMUNITY
Fourth Quarter 2009 Vol. 8 No. 4
Business NewsEagan
Did you know…?
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Managing H1N1:
How are
businesses coping?
inside this issue
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Briefly: Eagan
businesses in
the news
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Geraghty talks health care reform,
fee-for-service and morepage 1
Geraghty talks about
health care reform
The Minnesota Health Information
Exchange is based in Eagan.
MN HIE is a collaboration of
both public and private entities,
governed by leading Minnesota
health plans, provider organiza-
tions and state government.
“MN HIE offers healthcare
professionals a secure network
for cost-effective exchange of
patient-specific clinical and
administrative information,” says
Michael Ubl, executive director,
adding that MN HIE not only
enables providers to better
coordinate care, but it grants
them access to external patient
information sources to view med-
ications, allergies, immunizations,
lab results and more. “MN HIE
assures patients control over
information by requiring their
consent at each encounter and
enables them to opt out of the
service. By connecting providers
with key patient data, MN HIE is
working to improve the health of
Minnesotans.”
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Prior to joining Blue Cross and Blue Shield
of Minnesota, Patrick Geraghty served as a
senior vice president for Horizon Blue Cross
Blue Shield of New Jersey.
Blue Cross and Blue Shield not as a health
insurance company, but as a health company.
You’ve stated that health insurance
companies need to get ahead of
reform. Why is that important?
When we look at the reform legislation
that’s being debated, there’s not a lot that
addresses health care costs. The bills focus
more on access, availability and competition.
In the health care industry, we must
aggressively get control of rising health care
costs. At Blue Cross and Blue Shield, we
hear through our accounts, our surveys and
our customer service phone lines that our
members expect us to work toward more
affordable care.
How is Blue Cross and Blue Shield
expediting that process?
Earlier this year, our offices welcomed CEOs
of health systems and our direct competitors
for a series of meetings. We came together
to discuss how we could appropriately and
collectively collaborate on the challenges of
health care financing and work to reduce
costs. We understand that we need to bend
the trend in health care expenses. Our next
meeting is in December.
What can Minnesota teach the nation in
terms of health care reform?
Minnesota has a long track record of being
progressive and innovative. Examples
include Minnesota Community Measurement,
Patrick Geraghty marked his first anniver-
sary as president and chief executive officer
of Blue Cross and Blue Shield of Minnesota
in October. Responsible for the strategy and
operations of the state’s largest health plan,
Geraghty has brought new energy and new
ideas to the highly successful not-for-profit
organization, which serves 2.8 million mem-
bers with health plan products and services.
In addition, Geraghty is a frequent speaker
on health care issues; this summer he
presented “The Minnesota Experience” as
part of a Washington, D.C., health care
seminar sponsored by the National Institute
for Health Care Management, a nonprofit,
nonpartisan organization.
In November, Eagan Business News spoke
with Geraghty about health care legislation,
health care in general and why he views
2 Eagan Business NEWS
JOURNAL OF THE EAGAN BUSINESS COMMUNITY
Minnesota Health Information Exchange, the Institute for Clinical
Systems Improvement, Minute Clinic and others. These are
building blocks that exist in this community that other commu-
nities are now only aspiring to. That’s an important reason why
92 percent of Minnesotans have health care coverage.
In Minnesota, there are also public-private partnerships,
including MCHA—the Minnesota Comprehensive Health
Association—and MinnesotaCare; these plans actually function
as public options that don’t compete with the private sector.
Innovation is important for the continued evolution of the health
care marketplace.
Why should the medical industry move away from the
fee-for-service system?
Frankly, fee-for-service is not a system that works. When you
pay for volume, you get volume; more services are provided
than may actually be necessary. By limiting or eliminating fee-
for-service, we can create a payment model whereby provider
groups are paid based on outcomes and good processes.
How does Blue Cross and Blue Shield view the current
discussion on new federal health insurance legislation?
You have to do health care reform in stages, and you can’t do
it overnight. First, fix the cost equation. Second, provide access
to everyone. The national legislation is expanding access first
without addressing the cost issue or changing incentives such
as those present in the current fee-for-service system.
Fourth Quarter 2009
Geraghty continued from page 1 In addition, the proposed tax increases directed at insurance
companies would raise health care costs in Minnesota and the
taxes raised here would be redistributed to other states that
have not been doing a good job in terms of health care over
the years.
Minnesota offers high-quality, low-cost health care. Because
of that, the federal government gives us a pat on the back,
but we don’t get more funding. That incents states to under-
perform and that should be changed.
There should also be counseling for patients on topics such
as end-of-life care. That idea got inappropriately beat up this
summer. It’s right to help consumers make informed decisions
around topics such as advance directives.
Other issues that need to be addressed include malpractice
insurance reform and funding for prevention and wellness.
How does Blue Cross and Blue Shield focus on health,
not just health care?
Our Center for Prevention focuses explicitly on tobacco
cessation, healthy eating and physical activity. Our “do”
campaign emphasizes movement. We work with client
companies, helping their cafeterias reassess food choices
and design incentives to make healthy food choices. We help
members get discounts on fitness center dues and motivate
them to go regularly to earn their discounts. And we’re
helping to fund Nice Ride, a new Minneapolis public bike-share
program. Those are just a few examples of how we are
working to be a robust health company. ■
Chris Gerlach,
president,
Capitol Direct, a
direct-market-
ing company
“Allow small businesses to band together
across state lines to offer health insurance
with the same low rates currently available
to large companies. Impeding interstate
commerce in the health insurance industry
decreases options and competition while
increasing cost.”■
Laura J. Gill,
Christianson &
Company
Commercial
Real Estate
Services
“We must have tort reform and the ability
to purchase private insurance across state
lines. Keep insurance in the private sector,
not public. Health insurance should remain
a choice, not a requirement.”■
Ni Suphavong,
chairwoman,
Jade Logistics,
a freight-
management
services company
“The only thing I would not want to
compromise is quality health care for all,
no matter what the economic status.
This is the land of equality.”■
If you could write the new health insurance legislation,
on what would you not compromise—what’s your must-have?Q&A:
H1N1
Eagan Business NEWS 3
2009 Fourth QuarterJOURNAL OF THE EAGAN BUSINESS COMMUNITY
Managing H1N1: How are businesses coping?
g EBN is printed on paper which contains a minimum of 10% post consumer fiber.
We’ve all heard it, day in and day out, about the seriousness
of H1N1. So much so that perhaps we’re tempted to ignore
the news and shirk a vaccination—especially now that H1N1
seems to be on a downturn. But H1N1, and a potential second
wave, is nothing to sneeze at—particularly if you run a business.
Since September 1, the Minnesota Department of Health
has confirmed 1,507 novel H1N1 influenza hospitalizations;
32 Minnesotans have died from H1N1 since first identified in
the state; and the most common strain of flu in Minnesota
continues to be H1N1.
Businesses large and small have stocked up on hand sanitizer;
there’s hardly a lobby or office area that isn’t bursting with the
little pump bottles. But what else can a business do?
Eagan Business News talked with decision makers at three
local firms of varying sizes to get their perspectives. Read on
to learn how your colleagues are coping.
Tom Salonek,founder and chief executive officer of Intertech,
a software developer training company and IT consulting firm,
reports that his firm is experiencing “some absenteeism, not
unlike a normal cold-and-flu season.” Yet the company is
prepared for a much greater outbreak: Intertech has paid for
immunizations, installed automated hand sanitizers, provided
personal hand sanitizers to employees and added key health
messages—“if you’re not feeling well, stay home”—to company
meetings. In addition, team members know they can work
from home if need be.
All these steps are par for the course for Intertech, which has
long been prepared for potential crises. After 9/11, Intertech
started providing to each traveling employee a laminated
phone sheet with company leaders’ personal emails and phone
numbers. After Hurricane Katrina, the company began sending
along an emergency kit with anyone who travels on behalf of
the company.
Lockheed Martin too has long taken a thoughtful approach
to crises with its business continuity team, first regarding
potential fires and tornadoes, and, since 2005, flu. “Then it
was bird flu,” says Erik Perry,team leader. “But the question
is still, How could a major outbreak affect the business? And
similar to other disasters, it has the same parallels: How do
you prioritize? How do you manage?”
Like other companies, sanitizing stations are ubiquitous at
Lockheed. Employees also regularly wipe down common areas
with bleach wipes. Says Perry, “These physical steps are easy
and inexpensive.”
“Probably the most important piece of planning is communica-
tion,” he says. A company web portal posts timely news; the
medical team promotes healthful habits; and company emails
keep employees informed
about policies and proce-
dures. Communication is
also encouraged between
managers and employees.
“If you have to work from
home, perhaps a manager
can work it out, offer
flexibility.”
But not all companies can
take the long-minded approach. When Paul Arazny,owner of
Insty Prints in Eagan, is asked what he’d do if one of more of
his three employees were hit hard by H1N1, his answer is
brief: “I’d panic,” he says, laughing.
But Arazny isn’t putting blinders on. All of his employees
received the regular flu shot and are waiting for the H1N1
vaccine. Hand sanitizers are present here too. And the
business’s industrial-park location is fortunate. “We’re isolated
and don’t have a lot of walk-in traffic,” he says, explaining that
helps keep germ exposure to a minimum. The team also talks
a lot about getting rest and staying healthy. So what’s Plan B?
Says Arazny, “We’re part of Allegra Print & Imaging, and we’d
have to fall back on that network for employees.”
Obviously, regardless of a business’s size, leaders, managers
and employees are concerned. “I’m hearing from a fair number
of clients who have concerns should the flu outbreak become
more severe,” says Margaret Skelton,employment lawyer for
the City of Eagan and an attorney at Ratwik, Rosack & Maloney
in Minneapolis. “I try to allay their fears,” says Skelton, and she
refers clients to www.eeoc.gov/facts/pandemic_flu.html for
workplace preparedness information.
Skelton also offers legal advice: No, a business may not
require an employee to get a vaccine, and, yes, a business
may send home an employee who is experiencing flu-like
symptoms—even if he or she doesn’t receive sick pay.
Other general advice emphasizes adopting infection-control
policies, including teaching coughing and sneezing etiquette;
creating greater distances between workstations; encouraging
email and phone conversations, even within an office;
staggering shifts; and discouraging work travel.
For more ideas about coping with H1N1 in the workplace, visit
www.cityofeagan.com/EmergencyPrep, a link to the City of
Eagan’s business-planning guide, which covers pandemics
and other hazards. Jeremy Klein,Support Services Manager,
City of Eagan, also recommends these business sites:
www.cdc.gov/H1N1FLU/Business/TOOLKIT/, pandemicflu.gov/
professional/business/, www.ready.gov/business/index.html and
www.fema.gov/privatesector/preparedness/index.htm.■
Eagan
4 Eagan Business NEWS
Business News
Tpage 1
Geraghty talks about
health care reform
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Managing H1N1:
How are
businesses coping?
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Briefly: Eagan
businesses in the news
inside this issue
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Briefly
• BUSINESS:A former Ethan Allen store is scheduled to open
as Eagan’s newest minimall in January with a slate of tenants:
Verizon Wireless, Sport Clips, Smashburger, Solos Pizza
Cafe and Panda Express… To meet clients’ changing
needs, West Publishing is making nearly 30 of its titles
available for the Amazon Kindle… Over the past two years,
Minnesota manufacturing jobs fell 6.4%, according to
Manufacturers’ News, Inc.One bright spot: Eagan accounts
for 12,988 such jobs, up a half percent over the past two
years… Northwest Airlines’former headquarters building in
Eagan is for sale. Delta Airlines is remodeling a facility at
the airport to provide space for its regional airline offices…
Dakota Electric and Thomson Reuters are partnering:
When demand for energy hits its peak, Thomson Reuters
Legal takes its data centers off the utility grid, returning 24
megawatts to the grid—enough to heat 6,500 homes—and
saving Thompson Reuters about 40% on its bill.
• GOVERNMENT:If the Small Business Administration’s
proposed revisions to its size standards are accepted, more
businesses—including retailers, hotels and other service
businesses—will become eligible for SBA loans and federal
contracting preferences… Eagan’s Shield Technologies
Corp.won a $27,000 federal contract from the Defense
Logistics Agency’s Defense Supply Center, Columbus, Ohio…
Lockheed Martin’s Tactical Systems business was awarded
a $28.1 million contract to provide the first phase of networks
to increase the situational awareness of the fledgling Iraqi air
force… Cool Clean Technologies of Eagan will help the U.S.
Air Force develop clean fuels derived from algae oil.
• KUDOS:Delta Dental of Minnesota earned A.M. Best’s
rating of A (Excellent) for the 11th consecutive year… Ecolab
received the 2009 Tekne Green Company Award from the
Minnesota High Tech Association… Bald Eagle Erectors and
The Sowles Co.,both of Eagan, received the Partnership of
the Year Award from the Metropolitan Economic Development
Association… Blue Cross and Blue Shield of Minnesota
was recognized as an American Heart Association Start!
Fit-Friendly Company at platinum, the highest level…
The Eagan T.J. Maxx and Rapala’s distribution center, also
in Eagan, won “Employer of the Year” awards from Eagan-
based nonprofit ProAct, Inc.,for their exceptional efforts in
employing people with disabilities.
• Not on E-Biz’s email list?
To subscribe to E-Biz or our printed publication,
Eagan Business News, visit www.cityofeagan.com/EBN. ■