‘Like defusing a bomb:’ Affordable Care Act likely to change, but extent and timing remain uncertainWritten by Mark Sanchez
No matter whether you love or hate the Patient Protection and Affordable Care Act, what’s become clear is that 2017 will bring major changes to the federal health care reform law.
After completing most of a $66.4 million renovation and expansion in 2016, Mary Free Bed Rehabilitation Hospital looks to 2017 as a year to finish the project and to reach out further into new markets in Michigan. Mary Free Bed has five contracts with hospitals in Muskegon, Kalamazoo, Traverse City, Lansing and Pontiac to provide inpatient rehabilitative care. The Grand Rapids-based rehab hospital is “just thriving right now as an institution in every way you can measure” and presently is holding discussions with a half-dozen acute-care hospitals to join its care network, CEO Kent Riddle told MiBiz.
Metro Health enters 2017 as a subsidiary of the University of Michigan Health System after the two closed on an affiliation agreement toward the end of 2016. The deal with the Ann Arbor-based U-M Health System gives Metro Health a partner to expand medical services ranging from primary care to specialties. It also allows Metro Health to better compete in the market. President and CEO Mike Faas told MiBiz he believes the deal is the biggest thing to happen in the local health care market since the 1997 merger of the former Butterworth Hospital and Blodgett Memorial Medical Center that created Spectrum Health, the largest care provider in the region.
Pine Rest Christian Mental Health Services plans to pursue new partnerships around the state in 2017. CEO Mark Eastburg wants to create a network of hospitals and care providers that contract with the Grand Rapids-based Pine Rest to provide and manage their behavioral health care services. That strategy follows a model that Mary Free Bed Rehabilitation Hospital has used effectively to reach out from its home base. Pine Rest has 17 outpatient clinics — 15 in West Michigan and two in Iowa — plus inpatient and residential facilities. The nonprofit employs about 1,900 people and serves 45,000 clients annually.
Spectrum Health President and CEO Rick Breon expects West Michigan’s economy to stay strong in 2017, although the incoming Trump administration and the fate of the Affordable Care Act adds uncertainty to the year ahead for health care. Breon expects the new presidential administration “will, on some level, follow through on its campaign promise to repeal and replace the Affordable Care Act.” The big question is when and how that occurs.
Health care moves into a period of uncertainty next year, with the Patient Protection and Affordable Care Act facing repeal or replacement under incoming President-elect Donald Trump, who takes office along with a Republican-controlled Congress. Enactment of the ACA meant that starting in 2010, Michigan hospitals would forgo $7 billion over a decade in Medicaid and Medicare payments from the federal government in exchange for expanded coverage, said Laura Appel, senior vice president and chief innovation officer at the Michigan Health & Hospital Association. Appel expects the coming debate over the ACA to dominate health care in 2017.
Hope Network CEO Phil Weaver expects a “great year” for the Michigan and U.S. economies in 2017, although he worries about uncertainty created by the likely repeal of the Affordable Care Act or significant changes that may occur to the program. The Grand Rapids-based Hope Network provides neuro-rehabilitation for people with brain injuries, behavioral health care, and services and housing for people with a developmental disability. Hope Network employs about 2,800 people statewide and has an annual operating budget of about $140 million.
Kelly Potes took over in June as CEO at ChoiceOne Financial Services Inc., the parent company of ChoiceOne Bank, adding to his duties as president. During 2016, ChoiceOne Bank opened a lending office in downtown Grand Rapids and may follow up in the future with a full-service branch. The Sparta-based ChoiceOne has 12 offices in rural Kent, Ottawa, Muskegon and Newaygo counties with total assets of $598.6 million as of Sept. 30.
United Bank of Michigan President and CEO Michael Manica believes the economy was already on track for a good year in 2017. But the election of Donald Trump as president and his pro-business policies should boost the U.S. and the West Michigan economies higher, Manica said. A slow-growth economy that continues “without any signs to become considerably more vibrant” would surprise Manica in 2017. The Grand Rapids-based United Bank has 12 offices in West Michigan — six in Kent County, four in Allegan County and one each in Ionia County and Ottawa County, where a Jenison branch opened earlier this year. The bank had total assets of $596.2 million as of Sept. 30, up 15.8 percent from a year earlier, and deposits totaling $444.4 million, a 10-percent increase.
Huntington National Bank’s West Michigan president, John Irwin, sees more certainty and confidence in the marketplace following the November presidential election. He expects West Michigan’s economy to continue rolling along in 2017. According to Irwin, among business leaders he speaks with, “everyone’s hopeful about the future and what’s going to happen here with this administration” of President-elect Donald Trump and the potential for lower business taxes. They’re also bullish on the prospects to roll back federal regulations on business. Irwin also doubts that higher interest rates will alter the course of the economy.
In 2016, The Right Place Inc. attracted $240.6 million in new capital investment through 19 projects across West Michigan. Although the Grand Rapids-based economic development organization fell short of its three-year goals for jobs and payroll growth, President and CEO Birgit Klohs remains optimistic about Michigan’s economy. Klohs expects to attract more high-tech jobs and industries to the state while continuing to work with companies to find available talent in the region. Klohs discussed with MiBiz some of the issues that West Michigan employers and economic development professionals will face in the coming year.
Talent will continue to reign as the top issue Southwest Michigan First needs to tackle in 2017, according to CEO Ron Kitchens. He believes that the future of communities will depend on their ability to attract and retain Generation X and Millennial workers. To do that, his organization plans to integrate some of its employees into universities around the region, advocate for affordable downtown housing and promote an “open culture,” he said. Kitchens spoke with MiBiz about how economic developers’ jobs are shifting to focus on talent.
While Michigan economic developers have long focused on attracting businesses to the state, Dean Whittaker believes those organizations will increasingly need to focus instead on talent attraction. The president of Holland-based Whittaker Associates Inc. spoke to MiBiz about how a lack of available talent could affect companies and what’s being done to attract more workers to Michigan.
When it comes to the economy in 2017, Grand Valley State University’s Paul Isely largely expects business as usual. However, the associate dean and professor of economics at the Seidman College of Business notes that rising wage pressures on businesses may start pulling the economy into a recession in 2018. While he expects the economy to remain robust, Isely told MiBiz he worries what the incoming presidential administration’s trade and immigration policies could do to businesses in West Michigan in 2017 and beyond.
Steve Arwood hopes to double down on Michigan’s talent attraction and retention efforts in 2017. The CEO of Lansing-based Michigan Economic Development Corp. sees the demand for skilled workers all over the state and hopes that his organization can help to create an effective talent pipeline. Moreover, the MEDC sees itself playing a large-scale role in the state’s development of high-technology transportation.
Like many economic development leaders, Jennifer Owens of Lakeshore Advantage says talent concerns remain a key issue for businesses in 2017. Aside from attracting outside businesses, the organization primarily will focus on training, recruiting and retaining talent next year, she said. To do that, Lakeshore Advantage is pushing a campaign that promotes the region’s leisure opportunities as a way to attract workers. Owens told MiBiz to expect accelerated growth from manufacturers of automation equipment in the coming year and said she’s also “very bullish” on the food processing sector.
Byron Center-based Pilot Malt House LLC, a supplier of malted grains to the beer and distillery industry, has experienced only growth since its founding in 2012. In that time, the company has expanded from 10 acres to 3,000 acres of barley and could break the 4,000-acre mark in 2017. Earlier this year, Pilot Malt signed a deal with ingredient supplier Country Malt Group to have its products distributed nationwide, which could open new possibilities for continued growth, according to founder and President Erik May. He told MiBiz he’s bullish on the craft beer and distilling industries, even as some signs of weakness emerge.
The expansion in the hard cider market cooled last year, with the industry growing just 10.8 percent — a far cry from the 71 percent reported in the prior period, according to market research firm Nielsen. But Andy Sietsema takes those national market trends with a grain of salt, largely because they don’t count craft cideries like Sietsema Cider LLC in their research. “Sales out of our place were up 23.5 percent through this fall,” he said, noting that he also hopes to add two new distribution markets in 2017. According to Sietsema, “constant education” remains a key factor in the industry’s continued growth, even if it’s at a more sustainable rate.
Ringler of Cedar Springs Brewing: Brewery closures possible as crowded industry becomes ‘less forgiving’Written by Joe Boomgaard
With the first year under his belt, Cedar Springs Brewing Co. founder and Director of Happiness David Ringler says he’s pleased the company has surpassed its initial projections. The brewery should end the year having produced about 800 barrels of mostly traditional German-style beer, including Küsterer Original Weißbier, which won a bronze medal in the Great American Beer Fest earlier this year. Ringler hopes to add some new equipment to boost production and distribution in the coming year, “but we have no ambitions of growth at all cost.”
GRAND RAPIDS — The growth of foundations and an unprecedented transfer of wealth are among trends the nonprofit sector will need to watch in the coming year.
With the year ahead being so difficult to predict, Diana Sieger’s advice to nonprofits is to stay focused and keep doing their work well. She believes organizations like KConnect, whose goal is to bring together groups to collectively solve problems, will be essential in both identifying and addressing issues in 2017.
2017 Outlook: Kyle Caldwell, Dorothy A. Johnson Center for Philanthropy, Grand Valley State UniversityWritten by Josh Veal
With the Affordable Care Act on the chopping block for President-elect Trump’s administration, Kyle Caldwell fears the “tremendous amount of investment by nonprofits and foundations into our health care system” could be all for naught in 2017 unless lawmakers find a suitable replacement. Similarly, “there will be challenges to both foundations and nonprofits as the administration looks to … find efficiencies in government spending, and cuts to services to make way for tax cuts,” he said. On both the state and federal level, lawmakers’ decisions in 2017 have the opportunity to greatly impact nonprofits through bills like SB 960, which clarifies property tax policies.
For 2017, Rob Collier at the Grand Haven-based Council of Michigan Foundations is keeping one eye on Washington and one on Lansing. Collier cited potentially detrimental proposals coming out of the federal level, with beneficial legislation under review at the state level.
Mindy Ysasi says she is hopeful as she watches employers begin to recognize what it actually takes to solve their talent struggles. Employers have to decide what will make them stand out, whether that means they’re helping people achieve certifications and degrees, focusing on sustainability, hiring people who have a criminal background, or something else, she said. “Because of the market, employers are now saying, ‘What is the root cause?’ Some employers are recognizing that in some of our communities, we have 38 percent unemployment for men of color. I’m really very hopeful, because employers have immense power.” At the same time, Ysasi is concerned with the lack of support going to systems like child care and housing that help people enter the workforce.
As the economy has recovered from the recession, philanthropic giving nationwide has slowly climbed to an all-time high, in 2015 reaching $373.25 billion, according to a report from the Giving USA Foundation. However, nonprofits rely on funding from other sources as well, and leaders like Carrie Pickett-Erway at Kalamazoo Community Foundation don’t know if those sources will remain secure in the coming year. “We know many of our partners are concerned about major changes they anticipate in state and federal funding,” she said. “Our endowed funds provide a stable source of funding, but would not be able to fill that gap.”
Still growth, just slower: Lack of workers, plateauing auto sales to ease Michigan’s economic expansionWritten by Mark Sanchez
Economists expect Michigan to maintain economic growth in the coming year, albeit at a slower pace that will further tighten labor markets.
President-elect Donald Trump will enter office in January with an economy that experts say is stable and growing, but one that could probably do better.
The Legislature’s 2016 lame-duck session was marked by both bipartisan agreement on tough policy issues as well as contentious attempts to solve ongoing state problems that nonetheless split along party lines.
As they worry about talent and uncertainty, executives from a cross-section of industries voiced optimism in the pro-business policies pushed by President-elect Donald Trump.
If you approach Republican U.S. Rep. Justin Amash with requests for favors for projects in Michigan’s Third Congressional District, he wants you to know that you’re likely wasting your time. As a staunch supporter of limited government and defender of civil liberties begins his fourth term in the U.S. House of Representatives, Amash is more than happy with the economic growth happening in the district he represents. But that doesn’t mean he’s about to start earmarking federal dollars or doing one-off favors for the area’s business community. In an exclusive interview with MiBiz, Amash said his job is to defend the Constitution and fight for liberty for all citizens, a position he acknowledges could put him at odds with fellow Republicans and President-elect Donald Trump.
As coal-fired power plants in West Michigan harbor towns along Lake Michigan get decommissioned, cities like Holland and Muskegon have worried they’ll lose out on federal dredging support, the allocation of which is based on meeting a tonnage threshold for commercial freight at each harbor. That’s why Republican U.S. Rep. Bill Huizenga from Michigan’s Second Congressional District was happy to get funds to continue dredging as part of the most recent federal funding initiative.
2016 wasn’t an easy year for Gov. Rick Snyder. But even with Democrats’ near-daily calls for his resignation because of the ongoing Flint water crisis, the businessman-turned-politician still maintains his trademark “relentlessly positive” attitude. With about two years left in his second term, Snyder told MiBiz he remains focused on skilled trades training and tackling issues related to the state’s beleaguered infrastructure.
In wrapping up her first “whirlwind” year as mayor of Grand Rapids, Rosalynn Bliss aims to build off of the work she started as she looks ahead to 2017. In the new year, Bliss hopes to move the needle on initiatives related to affordable housing and addressing long-standing racial disparities in the city. Additionally, the mayor believes that 2017 will be the year where visible work commences on restoring the rapids to the Grand River.
Moving into 2017, Democratic U.S. Sen. Gary Peters plans to focus his efforts on cultivating Michigan as a hub for autonomous vehicle technology. For Peters, the state’s future hinges on growing Michigan’s ability to attract investment in autonomous technology. On the other hand, Peters worries that the president-elect’s hands-on economic development policies could leave behind small businesses in the state and elsewhere in the country. Peters spoke with MiBiz about his views on the year ahead and the challenges 2017 may bring.
As Michigan’s senior U.S. Senator, Debbie Stabenow plans to continue focusing on issues pertaining to small businesses, manufacturing and agriculture. Going into 2017, Stabenow expects to work on legislation that would improve tax credits for small manufacturers, as well as prepare to draft the upcoming Farm Bill. Stabenow spoke with MiBiz about her priorities and outlook for the upcoming year.
Even with the underlying uncertainty caused by the presidential election, West Michigan manufacturers remain generally optimistic about the year ahead.
While some industry professionals have raised concerns over subprime lending, rising inventories, incentives and other trends pointing to a downturn in the automotive cycle, the industry should remain healthy in the coming years. That’s according to Mike Wall, director of automotive analysis at IHS Automotive in Grand Rapids, who forecasts North American light vehicle production to close at 17.8 million units this year. While 2017 production is projected to slide to 17.6 million units, he expects it will inch up to 18 million units in 2018 and peak at 18.7 million units in 2020 as new facilities in Mexico come online. Wall spoke with MiBiz about what automotive suppliers in West Michigan should expect in the new year.
Gavin Brown, the executive director of the Michigan Aerospace Manufacturers Association (MAMA), expects strong production of both commercial and military aircraft continuing into 2017. As demand for long-range aircraft like the Boeing 777 increases, large OEMs will be eying ways to cut costs through production. For West Michigan manufacturers, that presents an opportunity for companies that can adapt to the latest technology and work cost-cutting measures into production, Brown said. However, uncertainty over the trade policies for the incoming presidential administration could cause pain for companies such as Boeing, which plans to sell more aircraft to countries including Iran and Russia. Brown spoke with MiBiz regarding the opportunities and challenges for aerospace suppliers going into 2017.
The Michigan Legislature on Thursday passed a pair of sweeping, bipartisan energy bills that just days before had divided business groups over whether the policy changes would negatively impact ratepayers.
LOWELL — The early excitement built up over a renewable energy facility in Lowell had begun to fade roughly a year ago, and formally ended on Dec. 1 when local officials moved to permanently cut ties with its operator.
State House lawmakers killed a Senate bill earlier this month that would have provided sportsman’s clubs an exemption from state and local property taxes.
LANSING — Sweeping energy policy reform that has taken nearly two years to move through the state Legislature could face a contentious debate during the remaining days of the post-election lame duck session.
For the past two and half years, Hilary Dulany has been traveling between Oregon and Michigan to grow her small businesses amid the transformational change happening with the legal marijuana industry.
As Michigan legislators prepare to enter their final session of the year, policy watchers across the state are closely monitoring legislation that could get a vote in the lame duck session.
When Brink Farms Inc. began construction on a rail yard off Turner Avenue in northwest Grand Rapids in 2014, the Hamilton-based bulk transportation firm hoped to alleviate capacity constraints and better serve customers shipping cargo south through the city.
KALAMAZOO — Researchers at the Michigan Geological Survey hope a state grant will better position government, businesses and other stakeholders to understand the natural resources that lie under the ground.
While considering buying an all-wheel-drive Tesla Model S electric vehicle in 2014, Jim MacInnes had to drive roughly four hours to Windsor, Ontario to give it a test drive.