Excellus posts 2023 net loss of $23M after rise in insurance usage

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ROCHESTER — Excellus BlueCross BlueShield reported a net loss of more than $23 million for 2023, which it primarily attributed to a $271 million increase in medical benefits paid last year. Excellus, like other health insurers nationwide, continues to “experience increases in utilization and costs” for health-care services and prescription drugs. “We’re a company that […]

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ROCHESTER — Excellus BlueCross BlueShield reported a net loss of more than $23 million for 2023, which it primarily attributed to a $271 million increase in medical benefits paid last year.

Excellus, like other health insurers nationwide, continues to “experience increases in utilization and costs” for health-care services and prescription drugs.

“We’re a company that budgets for thin financial margins and giving ourselves such a narrow window can sometimes result in a small net loss when facing the unexpected,” Jim Reed, president and CEO of Excellus, said in a news release. “As our communities emerge from the pandemic, we’re seeing significant increases in high-cost inpatient hospital utilization, outpatient surgeries on hips and knees, and new prescription medications.”

Rochester–based Excellus, Central New York’s largest health insurer, reported the net-loss figure in its annual report filed March 1 with the New York State Department of Financial Services.

The 2023 net loss compares to the reported net income of $58.9 million on premium revenue of $6.6 billion in 2022. The 2022 net-income figure had declined 50 percent from the $117.6 million the health insurer generated in 2021.

Medicare Advantage

A change in how the federal government sets hospital-reimbursement rates for Medicare Advantage plans has also impacted the health plan’s finances, Excellus said. An update to the Medicare wage index will bring an additional $1 billion of increased federal payments annually to upstate New York hospitals.

“We’re glad to see this increased funding for hospitals in our region,” Reed said. “Our challenge, however, is that we’re now reimbursing hospitals more for providing care to Medicare Advantage members without a corresponding increase in health plan funding for Medicare Advantage premiums from the federal government.”

Premium dollar

As a mission-driven nonprofit, Excellus says it strives for a low operating margin. Overall, the health insurer in 2023 spent 93 cents out of every premium dollar collected on direct patient care including medical and pharmacy claims, and activities that improve the quality of care. Over the last 20 years, the health plan has averaged a net margin of 1.7 percent.

Reserves and taxes

Health-plan reserves totaled $1.68 billion at the end of 2023 or the equivalent of 91 days of claims and operating expenses. Excellus says its reserves are “like a savings account to be drawn upon for unforeseen higher expenses” such as during a pandemic. The health insurer also incurred $441.4 million in federal and state taxes and fees in 2023.

Administrative costs

Excellus also reported that with 93 cents of every premium dollar spent on patient care, the remainder of every dollar, coupled with investment income, is spent on taxes, fees and administrative expenses that include payroll, overhead expenses and broker commissions.

“Excellus BCBS continues to demonstrate strong performance while navigating post-pandemic fluctuations in cost and utilization,” Faheem Masood, chair of the organization’s governing board, said in the release. “Reporting a net loss this year reinforces the health plan’s commitment to offering products that support its mission of ensuring everyone in our communities has access to high-quality, affordable health care.”

Excellus and its parent organization employ more than 4,000 people across upstate New York.

Mohawk Valley mourns loss of economic-development leader

Regional News, Subscriber Only

UTICA — With the sudden passing of Steven DiMeo on Wednesday March 6, the Mohawk Valley region and its residents lost more than just a family member or friend. The area lost an economic-development wizard who touched the lives of many residents who probably didn’t even know who he was. Through efforts like working to

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Through efforts like working to redevelop the former Griffiss Air Force Base to fighting years later to keep the Air Force Research Laboratory there, from persuading companies to open up shop in the Mohawk Valley and convincing others not to leave, “he has touched so many lives,” Oneida County Executive Anthony J. Picente Jr. says in an interview with CNYBJ. DiMeo wanted what was best for the Mohawk Valley, but never wanted the spotlight.

DiMeo had a long career in economic development including serving as Utica’s commissioner of urban and economic development. But it was the 1993 decision to close Griffiss Air Force Base as part of Base Realignment and Closure (BRAC) that led DiMeo to Rome and, eventually to Mohawk Valley EDGE. He was appointed president after its creation and served in that role until his death, more than three decades later.

DiMeo’s death generated an outpouring of condolences, praises for his accomplishments, and promises to carry forward the torch, from regional economic-development organizations, universities, politicians, and more.

“I am saddened by the sudden passing of Steve DiMeo,” Gov. Kathy Hochul said in a statement provided to CNYBJ. “He was a visionary and a tireless advocate for his community, and his 30 years of service leading Mohawk Valley EDGE helped transform the region leaving it better off today than when he first started.”

“Steve DiMeo was one of Utica’s best drum majors,” U.S. Sen. Charles E. Schumer (D-N.Y.) said in a statement. “We worked to rebuild Griffiss after BRAC; we fought New York Regional Interconnect when they tried to take advantage of Oneida County. We worked hand-in-glove to bring good-paying tech jobs to the county and game-changing companies like Wolfspeed to Marcy, along with so much more. Steve was a uniquely effective advocate, a partner, a friend, and just a good guy.”

“Under his leadership, Mohawk Valley EDGE has been a long-time partner of the Oneida Indian Nation, and we are grateful for all of his efforts to promote economic development within the region,” Oneida Indian Nation Representative Ray Halbritter said in a statement. “His passing is a great loss for all who knew him and the Mohawk Valley as a whole.”

“Steve was a testament to the fact that one person can make a very big difference,” Empire State Development said in its statement. “While few successes are achieved alone, some are not possible without certain individuals. Steve was that person for the Mohawk Valley.”

“He was a true legend and powerful supporter of everything Mohawk Valley,” NY CREATES President David Anderson said. “We will miss his matter-of-fact, yet kind, approach, along with his sense of humor, that enabled him to champion impactful progress.”

“May we all find inspiration in Steve’s decades of contributions to the Mohawk Valley; and let us honor his legacy by carrying on his important work,” SUNY Polytechnic Institute posted on its Facebook page.

As the area’s biggest advocate, DiMeo taught lessons that will help the area continue growing, Picente says, adding that the EDGE leader taught him to be bold. “If you don’t swing, you’re not gonna get a hit.”

DiMeo’s swings, or grand visions to some, are what convinced Picente and countless others that the Mohawk Valley had something to offer.

That push to be bold and go for the big swing, Picente notes, is what enabled him to bring the Utica University Nexus Center to life in Utica.

DiMeo was such an expert at knowing all the pieces needed to put together an economic-development deal, no one person could ever fill the shoes he left behind, Picente says. But it’s important that the area keeps moving forward, building upon what DiMeo helped start.

“He’s left us with the blueprint,” Picente says. “I’m confident that his legacy will move us forward. We’re going to be ok because of him.”

Services for DiMeo took place Thursday, March 14. He is survived by his wife, Dianne, three children, and five grandchildren.

Bousquet Holstein member appointed president of CNY Collaborative Family Law Professionals’ board

Law, Accounting & Taxes, Subscriber Only

SYRACUSE — Bousquet Holstein PLLC recently announced that Rosemary Lepiane, a member (partner) in the law firm, has been appointed president of the board of directors of CNY Collaborative Family Law Professionals, Inc. Lepiane focuses her practice at Bousquet Holstein on matrimonial and family law. She brings almost two decades of experience working with families

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Buffalo-Rochester-Syracuse tech hub going after phase-2 funding

Small Business, Subscriber Only, Technology

The tech hub involving the Buffalo-Rochester-Syracuse region is now pursuing phase-two implementation funding that could total as much as $54 million. The tech hub is officially known as the NY SMART I-Corridor, which is short for New York Semiconductor Manufacturing and Research Technology Innovation Corridor Consortium. The NY SMART I-Corridor Consortium tech hub spans across

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The tech hub involving the Buffalo-Rochester-Syracuse region is now pursuing phase-two implementation funding that could total as much as $54 million.

The tech hub is officially known as the NY SMART I-Corridor, which is short for New York Semiconductor Manufacturing and Research Technology Innovation Corridor Consortium.

The NY SMART I-Corridor Consortium tech hub spans across the Buffalo, Rochester, and Syracuse regions, and involves more than 100 institutions, including assembling commitments from industry, academia, labor, nonprofit, government, and other private-sector members.

U.S. Senate Majority Leader Charles Schumer (D–N.Y.) — who secured the tech-hub designation for the three Upstate metro areas — announced the application submission. The senator said he is now launching an “all-out push” to make the project one of the program’s first implementation award winners to build a “globally leading” semiconductor cluster in the upstate New York region.

Schumer has written a letter of support to U.S. Department of Commerce Secretary Gina Raimondo.

“The Buffalo, Rochester, and Syracuse SMART I-Corridor region has a generational opportunity to build a globally leading semiconductor cluster as one in four American-made chips will be produced within 350 miles of the I-Corridor by 2033,” Robert Simpson, president and CEO of CenterState CEO, said in Schumer’s announcement. “No other area will account for a greater share of domestic production, which represents a critical capacity building opportunity for the region. To meet this moment, leading civic institutions across our region have partnered to co-design solutions that will catalyze efforts through five component projects. This proposal when executed will transform our economic competitiveness for generations while also impacting more immediate national security challenges. This corridor is poised and ready to lead and we thank Senator Schumer for sharing our vision and providing unwavering support for this application.”

Funding use

Implementation funding that the NY SMART I-Corridor Tech Hub is applying for would target specific component projects that seek to solve the “growth challenges” the region would otherwise face over the coming decade, Schumer’s office said.

Specifically, the component project efforts will be led by Syracuse University (SU), the University at Buffalo (UB), Monroe Community College, and Empire State Development’s Division of Science, Technology and Innovation (NYSTAR).

SU will work at creating a “collaborative ecosystem” for semiconductor research and development efforts for product commercialization, Monroe Community College will lead workforce-training initiatives, UB will work at strengthening the supply chain by making it easier for local firms to gain access to growth opportunities in the semiconductor industry, and NYSTAR will focus on investment in tech startups and entrepreneurs to accelerate their growth in the region.

The implementation phase of the program will allow the region to expand the semiconductor ecosystem already in existence to “develop and make the future of semiconductor technology” in the Upstate region, per Schumer’s office.

Schumer said the NY SMART I-Corridor project builds on the investments announced for the region in semiconductor manufacturing and research and development resulting from his CHIPS & Science Law. It’s expected that one in four American-made chips will be produced within 350 miles of the NY Smart I-Corridor by 2033.

CNY Community Foundation launches nonprofit bridge-loan program

Banks & Credit Unions, Nonprofits, Subscriber Only

SYRACUSE — The Central New York Community Foundation recently introduced a new nonprofit bridge-loan program that it says will help not-for-profits continue essential community services while waiting to receive approved grant funding. The foundation’s local impact investing program closed on a $500,000 deposit to Cooperative Federal (Coop Fed) to launch the bridge-loan program. Coop Fed

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The foundation’s local impact investing program closed on a $500,000 deposit to Cooperative Federal (Coop Fed) to launch the bridge-loan program. Coop Fed is a community development financial institution, or CDFI, and federally chartered credit union. Its members are historically underbanked and live and work in disinvested communities.

The CNY Community Foundation explained in a February news release that it “is common for government agencies and other funders to require awardees to draw down funds on a reimbursement basis, often taking several months to process reimbursements.” The foundation’s survey of more than 50 local nonprofit organizations found that 58 percent have experienced funding delays from New York State grant contracts.

“Cooperative Federal is focused on expanding access to capital in ways that benefit diverse people and communities,” Chrisina Sauve, CEO of Cooperative Federal, said in the foundation release. “Bridge loans have the double impact of supporting and sustaining local nonprofits, while also making it possible for those nonprofits to bring outside dollars into our region.”

Loans will be fully secured by Community Foundation funds on deposit at Coop Fed. Nonprofit organizations and unincorporated organizations working with a 501(c)(3) fiscal sponsor are eligible to borrow an amount equal to their first anticipated disbursement under a fully executed funding agreement, ranging from $25,000 to $150,000. The Community Foundation said it will be responsible for intake, loan-application packaging and preliminary due-diligence review. Applications that meet the Community Foundation’s internal standards will be recommended to Coop Fed.

“It is not uncommon for Central New York nonprofits to wait several months to receive grant payments, forcing them to alter services or find other stop-gap measures,” Frank Ridzi, VP of community investment at the Community Foundation, said. “The vital work of local community organizations is our top priority, so by providing flexible support through this loan fund, we hope to help ensure their services continue.”

This investment marks a total of more than $3.6 million now advancing housing, business development, and lending through the Community Foundation’s impact investing program. Impact investing allows the organization to use its financial resources to make investments that generate both financial returns and positive social outcomes, it noted. In 2023, the foundation’s board of directors approved a policy that allows the use of up to 5 percent of its main investment pool for the purpose of impact investment. So far, 41 new homes have been built and
$56.2 million has been leveraged for home, personal, and business loans.

The CNY Community Foundation’s local impact investing program is designed to tackle a wide range of community needs with an emphasis on helping Central New York residents build wealth, equipping residents with the opportunity to contribute to the economic performance of the region, and providing under-resourced communities and nonprofit organizations access to capital.

2024 CNY Construction Projects

Construction, Design & Real Estate, Subscriber Only

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VIP Structures honored for work on J.W. Didado Electric building

Construction, Design & Real Estate, Subscriber Only

SYRACUSE — Design-build firm VIP Structures received the 2023 Varco Pruden Hall of Fame award for its role as both architect and builder of the J.W. Didado Electric New York operations headquarters in Clay. The award recognizes the firm’s innovative approach in the September 2023 completion of the 24,000-square-foot, pre-engineered metal building, VIP announced in

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The award recognizes the firm’s innovative approach in the September 2023 completion of the 24,000-square-foot, pre-engineered metal building, VIP announced in a recent news release.

“Being recognized to Varco Pruden’s Hall of Fame is a testament to our team’s hard work, creativity, and dedication to pushing the boundaries of what can be achieved with a pre-engineered metal building,” VIP Structures CEO Meg Tidd contended. “This project not only showcases our expertise but also our commitment to providing our client value while enhancing their operational capabilities.”

The building — made possible through a collaboration with VIP, Briarwood Construction, and J.W. Didado Electric — is located on a 12-acre site and serves as the central hub for J.W. Didado Electric’s New York operations, as well as the base for the company’s storm-response team. The structure includes a 14,000-square-foot truck-maintenance area with eight truck bays and an expandable end wall to accommodate future expansion. The building also houses a two-story, 10,000-square-foot office space that includes six private offices, a conference room, break room, copy room, and training room.

“Partnering with VIP Structures and our owner’s representative, Briarwood Construction, was key in turning our vision for a New York operations headquarters into reality,” J.W. Didado Electric President Dan Sublett said. “The expertise, professionalism, and dedication that both organizations brought exceeded our expectations and were instrumental in building a facility that embodies innovation and functionality. We congratulate VIP on their well-deserved recognition in the Varco Pruden Hall of Fame, and we’re excited about the growth this facility will spur for us in New York.”

Varco Pruden Buildings, a division of BlueScope Buildings North America, Inc., awards the distinction annually. The Hall of Fame awards spotlight independent Varco Pruden builders whose projects demonstrate innovation and excellence through the integration of Varco Pruden building systems and architectural design. VIP’s honor recognizes the company’s ability to excel in versatile and challenging projects, per the release.

Headquartered in Syracuse and founded in 1975, VIP says it offers integrated design-build services with architecture, engineering, construction, and development under one roof.

J.W. Didado, headquartered in Akron, Ohio, is a full-service electrical contractor, providing services to residential, commercial, industrial, institutional, and large utility customers in 23 states.

Liberty Resources to develop supportive housing in Onondaga, Cortland counties

Construction, Design & Real Estate, Subscriber Only

DeWITT — Liberty Resources will use $1.2 million in state-grant funding for the development of housing programs in Onondaga and Cortland counties. The organization calls the grant funding a “major stride towards addressing housing challenges for vulnerable communities,” according to its Feb. 29 announcement. Empire State Supportive Housing Initiative (ESSHI) awarded the money. Liberty Resources

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Multi-family housing developer Conifer Realty appoints CFO

Construction, Design & Real Estate, Regional News, Subscriber Only

ROCHESTER — Conifer Realty, LLC, a developer of affordable multi-family housing, recently announced the appointment of Robert (Rob) Corredine as its new chief financial officer (CFO). In this expanded role, he will oversee finance, accounting, asset management, portfolio management and capital markets for the Rochester–based company that constructs, owns, and manages multifamily apartment communities across

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ROCHESTER — Conifer Realty, LLC, a developer of affordable multi-family housing, recently announced the appointment of Robert (Rob) Corredine as its new chief financial officer (CFO).

In this expanded role, he will oversee finance, accounting, asset management, portfolio management and capital markets for the Rochester–based company that constructs, owns, and manages multifamily apartment communities across New York state, New Jersey, Pennsylvania, and Maryland.

Corredine brings more than a decade of financial-leadership experience to his new role, having worked at Conifer since 2013 in various capacities within the finance and accounting department, according to a Feb. 26 company news release. In his most recent role as executive VP of finance and accounting, he was active in leading the continued development of the company’s accounting function, which has strengthened Conifer’s financial performance.

“We are thrilled to announce Rob’s promotion to Chief Financial Officer,” Sam Leone, president of Conifer Realty, said in the release. “His extensive background in finance and accounting, coupled with his deep understanding of our company’s operations, positions him as the ideal candidate for this role. Rob’s journey from within our organization exemplifies his dedication and expertise, making him uniquely suited to lead our finance and accounting functions. I have every confidence that Rob will continue to be an invaluable leader, playing a pivotal role in guiding our financial success as we move forward.”

Prior to joining Conifer Realty, Corredine worked at Centerline Capital Group in New York City, as assistant VP in the firm’s Fund Accounting Group. There, he was responsible for the financial reporting of the company’s portfolio of affordable-housing investments throughout the U.S., as well as for the financial consolidation of more than $2.7 billion in investment funds. At that time, Centerline had the nation’s largest portfolio of affordable units.

As a certified public accountant (CPA), Corredine began his career as an auditor at Davie Kaplan, CPA, P.C. in Rochester. He earned a bachelor’s degree in accounting from Nazareth College.

Conifer Realty says it is a full-service real-estate company specializing in the development, construction, management, and ownership of high-quality, affordable housing communities. The company has developed more than 21,000 affordable-housing apartments across more than 300 residential communities. That includes Conifer properties in the greater Syracuse, Watertown, Ithaca, and Binghamton areas.

Tioga County Land Bank announces election of 2024 officers

Construction, Design & Real Estate, Subscriber Only

OWEGO — The Tioga County Property Development Corporation (TCPDC) recently announced that at its January 2024 annual meeting, its board of directors made the following appointments to its executive committee: • Ralph Kelsey — Chair. He is a board member for Tioga State Bank. Kelsey also currently serves on the following boards: Tioga County Senior Citizens

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