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Construction employment slips in Central New York in July
Construction employment declined or held steady in Central New York’s metropolitan areas between July 2011 and July 2012, according to an analysis of federal employment
Binghamton Airport lands grant for improvements
MAINE — The Federal Aviation Administration (FAA) awarded a $1.023 million Airport Improvement Program grant to the Greater Binghamton Airport (BGM) for improvements to the
Tamarack Lake Electric Boat Company launches in Rome
ROME — Five years after taking his electric-powered pontoon boat across New York on the Erie Canal, Montgomery Gisborne officially cut the ribbon on his
MV Chamber readies for Business Showcase
WHITESBORO — The Mohawk Valley Chamber of Commerce is gearing up for its Chamber Approved Business Showcase, set for Oct. 18 at Harts Hill Inn.
St. Elizabeth, Faxton St. Luke’s nix merger, focus on integration
UTICA — St. Elizabeth Medical Center and Faxton St. Luke’s Healthcare, Inc. (FSLH) have decided not to merge into one large health-care organization. But the
How Mohawk Valley lawmakers fared on Unshackle scorecard
Some of the area’s state legislators fared well, but others lagged behind on Unshackle Upstate’s 2011-2012 legislative scorecards released Aug. 22. Unshackle Upstate, which describes itself as a coalition of businesses and trade organizations advocating for reforms to make Upstate a stronger place in which to do business, uses the scorecards to grade legislators on
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Some of the area’s state legislators fared well, but others lagged behind on Unshackle Upstate’s 2011-2012 legislative scorecards released Aug. 22.
Unshackle Upstate, which describes itself as a coalition of businesses and trade organizations advocating for reforms to make Upstate a stronger place in which to do business, uses the scorecards to grade legislators on their legislative and budget votes as well as sponsorships of targeted bills during the 2011 and 2012 legislative sessions.
In the Utica–Rome area, Republican Assemblyman Marc Butler of District 117, which includes Verona and Westmoreland, received a grade of 62 out of 100. He was marked down for his support of the suspension of hydraulic fracturing and his vote against the Power NY Act 2011. Butler scored points for his sponsorship of state-spending cap legislation, his support of the last two state budgets, and his “yes” vote on the property-tax cap legislation.
Democrat Assemblyman William Magee of District 111, which includes part of Herkimer County, and state Sen. Joseph Griffo of District 47, which covers Oneida County, fared better, both receiving scores of 82 out of 100. Both were noted for their support of the property-tax cap, the two state budgets, and the Power New York Act of 2011. Power NY is an omnibus energy package that encourages new investments in electric-generating facilities across New York.
Assemblywoman Claudia Tenney, a Republican from District 115, which takes in part of Clinton, received a score of 87 out of 100 for her support of pro-taxpayer measures such as the property-tax cap and also for opposing measures such as increasing the minimum wage. Unshackle also noted Tenney’s sponsorship of six taxpayer-friendly pieces of legislation including the Taxpayer Protection and Mandate Relief Act — a bill to reduce state and local spending; reduce taxes, fees, and assessments; reduce state borrowing; and reduce mandates.
State Sen. James Seward, a Republican representing District 51, which encompasses all of Herkimer County and other portions of the Mohawk Valley, was among the state’s high scorers, receiving 94 out of 100. Unshackle cited his votes in favor of the Power NY Act, property-tax cap, and best value for public works as well as his sponsorship of legislation to establish an unemployment base period, and to eliminate corporate-franchise tax on manufacturing for his high score.
The Business Journal sent inquiries to all the area legislators asking for comment on their scorecards, but none responded prior to press time.
Unshackle says its scorecards are timely for taxpayers to take notice of as they get ready to make their voting decisions.
“As primary and election day draw near, it’s very important for taxpayers to have a comprehensive guide that shows which legislators have truly dedicated themselves to unlocking New York’s economic potential,” Brian Sampson, executive director of Unshackle Upstate, said in a news release. “We’re encouraged to see that many legislators have responded to their constituents by supporting two consecutive fiscally responsible state budgets and several pro-taxpayer initiatives such as the 2-percent property-tax cap and pension reform.”
In general, Sampson said, the scorecard grades are higher than those his organization handed out in 2010.
The scorecard grades consist of points awarded or lost based on legislators’ sponsorships and floor votes on bills that Unshackle either supported or opposed.
The full listing of legislators and their scores is available online at http://www.unshackleupstate.com/legislative-activity/scorecards/.
Contact DeLore at tdelore@tmvbj.com
GateHouse Media posts second-quarter loss, revenue drop
FAIRPORT — Digital revenue increased 32 percent in the second quarter at GateHouse Media, Inc., but it wasn’t enough to offset a 4 percent decline in total revenue that helped result in a net loss of $2.9 million, or 4 cents per share, for the media company. GateHouse, which owns The Observer-Dispatch in Utica and
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FAIRPORT — Digital revenue increased 32 percent in the second quarter at GateHouse Media, Inc., but it wasn’t enough to offset a 4 percent decline in total revenue that helped result in a net loss of $2.9 million, or 4 cents per share, for the media company.
GateHouse, which owns The Observer-Dispatch in Utica and several other area publications, reported revenue of $128.8 million, down from $134.4 million a year ago, when the company reported a net loss of $5.1 million, or 8 cents.
No analysts provide estimates for GateHouse, whose shares currently trade for about 6 to 7 cents per share on the over-the-counter market.
“While we saw a softening in the economy during the second quarter that weighed on our results, particularly print advertising, we were pleased with the progress we continue to make on our transformational strategy for our business,” GateHouse CEO Michael E. Reed said in an Aug. 2 news release. “Digital revenues grew by 32.3 percent in the quarter versus prior year. Our digital products extend across web, mobile, and tablet products and led to 28.1 percent growth in average monthly page views during the quarter to 98 million.” The company did not break out its digital revenue totals.
Reed said GateHouse is also focusing on growing consumer revenue through means such as digital subscriptions and saw circulation revenue grow 0.6 percent from $32.7 million to $33.4 million during the quarter.
Advertising revenue decreased from $134.4 million to $128.8 million while commercial-printing revenue fell from $6.5 million to $6.3 million.
GateHouse continues to work to identify efficiencies and cost-reduction opportunities and was able to cut operating costs 4.7 percent during the second quarter from $72.2 million to $70 million.
GateHouse invested $1.1 million in strategic growth initiatives in the quarter, including Propel Marketing (www.propelmarketing.com), its locally based online-marketing provider to small- and medium-sized businesses. GateHouse launched the product in the Boston market and will offer it across the rest of GateHouse’s coverage areas through the rest of the year.
GateHouse also launched a private advertising exchange called adhance media, which currently services 16 media companies, including GateHouse, in filling ads for 484 websites across the country.
“In the quarter, we began rolling out our new content-management system across the company, and we now have two central desks in place,” Reed said. “This new technology, along with our central desks, allows our newsrooms to create content in a single system and maximizes the placement of that content across multiple platforms, while also creating efficiencies in many of the processes.”
Fairport–based GateHouse (www.gatehousemedia.com) operates publications and websites in Arkansas, California, Colorado, Connecticut, Delaware, Illinois, Kansas, Louisiana, Massachusetts, Michigan, Minnesota, Missouri, North Dakota, Nebraska, New York, Ohio, Oklahoma, Pennsylvania, Tennessee, and West Virginia. Locally, GateHouse owns The Observer-Dispatch in Utica, The Evening Telegram in Herkimer, and The Evening Times in Little Falls.
Contact DeLore at tdelore@tmvbj.com
EarQ Group plans to continue growth after moving into new HQ
SYRACUSE — EarQ Group President Ed Keller stands at the back of the hearing-aid provider’s new building on Erie Boulevard West and points to a hockey net, basketball hoop, and mock football field. “We’ve got this extra space here, and we’re turning it into a positive extension of what we’re doing,” he says. “We’re having
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SYRACUSE — EarQ Group President Ed Keller stands at the back of the hearing-aid provider’s new building on Erie Boulevard West and points to a hockey net, basketball hoop, and mock football field.
“We’ve got this extra space here, and we’re turning it into a positive extension of what we’re doing,” he says. “We’re having meetings now where we’re shooting hockey pucks just to break down some barriers. We’re afraid of barriers. We’re afraid of complacency.”
The growing EarQ wasn’t complacent with its old headquarters facilities, which consisted of about 4,000 square feet of space leased in buildings Keller owns at 1900 and 1903 W. Genesee St. So the firm purchased a 13,000-square-foot building at 701 Erie Blvd. W. in Syracuse and moved its 35 employees there on Aug. 10.
EarQ closed on the building, which had been owned by MAC Source Communications, Inc., in June. It acquired the facility using its own cash in a deal brokered by Syracuse–based JF Real Estate for $625,000 after MAC Source moved up the street to 509 Erie Blvd. W., Keller says.
EarQ spent about $150,000 of its own cash renovating its new Erie Boulevard headquarters after it purchased the building, according to Keller. It did not make any changes to the building’s floor plan or hire a general contractor, instead using smaller contractors for new paint, new carpets, and electrical work.
Employee reaction to the new building has been positive, says Andrew Hebert, EarQ’s managing director.
“Everybody’s excited to be under one roof,” he says. “They’re ecstatic about being in this work environment.”
EarQ added five employees last year, according to Hebert. He and Keller expect the company to continue to grow by five to seven employees annually.
EarQ set aside about 4,000 square feet in the back of its new building for what Keller calls “creative space.” The company has the option of turning the space into offices if it needs to do so in the future, but for the time being it will remain as an area for company employees to get their creative blood pumping.
“Because there are so many people with untreated hearing loss, we have to constantly challenge ourselves on how we communicate,” says Keller, who is also EarQ’s majority shareholder. “We use a variety of different environments to help us develop new ideas.”
Growth plans
Keller has plans to grow EarQ’s revenue from $20 million in 2011 to about $30 million this year to $50 million in 2013. He anticipates generating $80 million to $100 million in revenue in three to five years.
Totaling about $50 million in annual revenue will allow EarQ to operate efficiently on a national scale, Keller says. The company, which distributes its products through about 1,400 privately owned providers in all 50 states, will have relatively high administrative and marketing costs until it increases its revenue, he adds. EarQ does not manufacture hearing aids, but it contracts with other firms for production.
Sales growth for EarQ will come as members of the baby-boom generation age and search for hearing-loss solutions, according to Keller. And it will come as EarQ reaches out to members of other demographics who have traditionally been less willing to wear a hearing aid or haven’t even considered treating hearing loss, he adds.
To that end, EarQ has reached an endorsement deal with former NFL quarterback Steve Grogan, who played for the New England Patriots in Super Bowl XX. Reaching out to Grogan, who is in his late 50s and has hearing loss, is an example of using creative thinking to market beyond the limits of stereotypes that often cast hearing-aid users as older, he says.
“I wouldn’t stereotype a Super Bowl quarterback as having a hearing difficulty,” Keller says. “They’re too strong. They’re too powerful. So you make connections, and what you’re going to see from us this fall is a couple hundred of our providers nationwide are going to be running an advertising campaign with Steve Grogan as our national spokesperson.”
EarQ also works with companies and other groups to offer employees benefits such as equipment discounts and extended warranties. It has relationships with groups including the National Football League Players Association, National Basketball Retired Players Association, NASA, and GE, according to Keller.
Contact Seltzer at rseltzer@cnybj.com
Albany law firm sets up shop in Syracuse
SYRACUSE — Albany–based Tully Rinckey, PLLC, which has plans to grow to 10 offices across the U.S. in the next five years, has opened its latest location in Syracuse. The local office opened Aug. 23. Tully Rinckey specializes in military law, civil litigation, family and matrimonial law, criminal defense, trust and estates, and real estate.
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SYRACUSE — Albany–based Tully Rinckey, PLLC, which has plans to grow to 10 offices across the U.S. in the next five years, has opened its latest location in Syracuse.
The local office opened Aug. 23. Tully Rinckey specializes in military law, civil litigation, family and matrimonial law, criminal defense, trust and estates, and real estate.
The firm will be based in a 4,200-square-foot office at 507 Plum St. in Franklin Square. The local practice will initially concentrate on civil litigation, criminal law, and family law.
The firm will be able to offer its full range of services in Syracuse through its other offices, says Greg Rinckey, Tully Rinckey managing partner. One of the reasons the firm was interested in Syracuse is its proximity to Fort Drum, he adds.
The firm was founded by a U.S. Army veteran, Mathew Tully, and Rinckey was previously an attorney with the U.S. Army Judge Advocate General’s Corps. The base will be a good way for the firm to grow its military practice in Central New York, Rinckey says.
The firm has expertise in areas like security clearances as well, he adds.
“Syracuse was ripe for growth,” he says.
Delay
Tully Rinckey had originally planned to open its Syracuse office in April, but Tully, who is currently a lieutenant colonel in the New York Army National Guard, was deployed for duty in Afghanistan that month. He’s expected back from active duty in the summer of 2013.
Tully has been deployed overseas three times since founding the law firm.
Tully’s deployment delayed the Syracuse plans some, but the firm also decided to build out its own space when it couldn’t find an existing office in the market that would work, Rinckey says.
Tully Rinckey currently employs nine people in Syracuse, including four attorneys. Rinckey says the plan is to grow that total to 18 people, including nine or 10 attorneys, in the next year.
The firm’s goal is to have 10 offices around the country within five years and employ more than 100 attorneys in the next three to five years. Tully Rinckey currently employs 89 people, including 41 attorneys.
Tully Rinckey started in Albany about seven years ago and then expanded to Washington, D.C. and Arlington, Va. The firm plans to continue its expansion in New York and is aiming to open offices in Rochester and Buffalo as well.
Richard Sargent is the partner in charge of the Syracuse office. He has more than 40 years of experience in civil litigation, real estate law, and trusts and estates, according to Tully Rinckey.
The law firm considered other markets for its fourth office including White Plains, the Springfield, Mass. area, and Maryland. Tully Rinckey leaders liked the potential for two offices working in the same state.
Startup costs are also far lower in Syracuse than in a market like White Plains, according to the firm.
Tully Rinckey launched in Washington, D.C. in 2008. It opened its third office, in Arlington, in 2010.
Earlier in August, the firm was named to the Inc. 5000 list of the nation’s fastest growing companies. The firm ranked 1,672 with revenue of $7.6 million in 2011, up 173 percent from 2008.
Contact Tampone at ktampone@cnybj.com
Fidelis Care brings managed long-term care program to CNY
Health insurer Fidelis Care moved quickly to expand its Fidelis Care at Home managed long-term care program into 11 counties in and around Central New York, according to one of its executives. “It wasn’t a hard decision for Fidelis,” says Elaine Morgan, a registered nurse who is Fidelis Care’s assistant vice president of managed long-term
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Health insurer Fidelis Care moved quickly to expand its Fidelis Care at Home managed long-term care program into 11 counties in and around Central New York, according to one of its executives.
“It wasn’t a hard decision for Fidelis,” says Elaine Morgan, a registered nurse who is Fidelis Care’s assistant vice president of managed long-term care. “We knew that where we needed to be was every county in New York state, following our other lines of business. We were already operational as a managed Medicaid program, we were in Family Health Plus, Child Health Plus, four lines of the Medicare line.”
Fidelis Care announced on Aug. 23 that the state approved Fidelis Care at Home for operation in Broome, Cayuga, Chenango, Cortland, Delaware, Herkimer, Oneida, Onondaga, Oswego, Tioga, and Tompkins counties. The state approved the Onondaga and Cayuga county expansions on May 1 and all other expansions in the Central New York area Aug. 1, according to Morgan.
Managed long-term care is a voluntary option for Medicaid-eligible beneficiaries requiring nursing-home-level care. Beneficiaries who are eligible for and choose managed long-term care programs can remain in their homes, receiving services such as in-home nursing, therapy, adult day care, and delivered meals.
Several types of organizations offer managed long-term care: home-care providers, multi-provider health-care networks, health plans, and nursing homes. Fidelis Care is a Catholic health plan based in Rego Park in the New York City borough of Queens. It has 793,000 members in 59 counties across the state, including 109,491 in Central New York.
It has operated Fidelis Care at Home since 1999, Morgan says. But before May of this year, it only had a state license for the program in Orange and Rockland counties.
Fidelis Care’s expansion of the managed long-term care network comes after New York Gov. Andrew Cuomo accepted recommendations from a Medicaid Redesign Team in February, according to Morgan. The recommendations sought to redesign the state’s Medicaid program for efficiency and better patient results.
“There’s been a flurry of activities surrounding managed long-term care since the Medicaid Redesign Team looked at it,” Morgan says. “The existing plans that were operational in the state, they asked the plans to take a look at their business models, take a look at whether it was going to be financially sound for each plan to expand.”
Fidelis Care believed it had enough of a statewide footprint and experience in managed long-term care to expand out of Orange and Rockland counties, Morgan continues. So it began applying for permission from the New York State Department of Health to operate in additional counties.
At this point, it has received approval for 50 counties. Fidelis Care also has applications pending in 12 remaining New York counties.
Fidelis Care added staff members at each of its four regional offices to expand Fidelis Care at Home, according to Morgan. The regional offices are in Rego Park, Albany, Getzville in Erie County, and at 5010 Campuswood Drive in DeWitt.
At each regional office, Fidelis Care hired about five people: two outreach staff members, a full-time intake staff member, a per diem intake staff member, and an employee to handle marketing. In-home care will be provided by subcontractors, while Fidelis Care at Home coordinates enrollees’ care, Morgan says.
“It’s one-stop shopping,” she says. “They call one number here at Fidelis and have all of their care managed through our care-management team.”
Fidelis Care at Home currently has 601 members, mostly in Orange and Rockland counties, according to Morgan. It received five referrals in Onondaga County since unveiling the program for the area Aug. 23.
Morgan says she cannot provide an exact estimate for the number of people who will sign up for Fidelis Care at Home. But she anticipates it will be in “the thousands” statewide.
She also says she cannot predict the revenue the program will generate. Fidelis will receive a set Medicaid reimbursement per program participant per month, based on the region where a participant lives. In a majority of Onondaga County, that sum will likely be about $1,700 per participant per month, although the state has not yet completed rate negotiations, Morgan says.
Fidelis Care, which is a nonprofit organization, had program revenue totaling $1.9 billion in 2010, the most recent year for which its Form 990 is available from www.guidestar.org. It currently employs more than 1,500 people throughout the state.
The health plan’s DeWitt office has about 100 workers, according to Thomas Julian, Fidelis Care director of marketing, who heads the office. In addition to the newly hired workers focusing on Fidelis Care at Home, DeWitt–based employees work in marketing, provider relations, contracting, and government affairs, he says.
The office is in 8,000 square feet of space Fidelis Care leases from Illinois–based American Landmark Properties, Ltd.
The DeWitt office is using word of mouth as well as contact with community organizations and providers to find potential Fidelis Care at Home members, Julian says.
“We’re looking at a lot of hard work to get the program out,” he says. “We are currently working with the providers who are going to be a major source of referrals for this line of business — particularly discharge planners, people like that.”
Contact Seltzer at rseltzer@cnybj.com
Stay up-to-date on the companies, people and issues that impact businesses in Syracuse, Central New York and beyond.