Tag Archives: Dignity Health

health

Humana, Dignity Health Sign Agreement

Humana Inc., one of the nation’s leading health and well-being companies, has reached an agreement that provides its members access to Dignity Health facilities in Arizona.

The new network agreement, which takes effect May 1, 2014, includes Humana’s Medicare Advantage (including PPO, HMO and Private Fee for Service plans), employer groups and individual plan members.

“This agreement provides our Arizona members with access to Dignity Health’s network of respected facilities and health care providers,” said Victoria Coley, Arizona and Nevada Market Vice President for Humana’s Employer Group segment. “Through this partnership, we’ve been able to substantially increase health care options for our members who live in the East Valley and, soon, the West Valley.”

“Humana has a strong Medicare Advantage presence in Arizona. Expanding our network to include Dignity Health will offer our members a strong provider network and is key to our continued growth in the market,” said Brendan Baker, Arizona Market President for Humana’s Senior Products.

Humana members will have in-network access to St. Joseph’s Hospital and Medical Center, including Barrow’s Neurological Institute; Chandler Regional Medical Center; Mercy Gilbert Medical Center; and the soon-to-open St. Joseph’s Westgate Medical Center. Members will also have access to Dignity Health’s network of nearly 200 physicians and its care centers in Arizona, including two specialty hospitals, six surgery centers, four urgent care centers and 30 imaging centers.

“We have always been dedicated to high-quality patient care and to making the entire health system work better for patients and their families,” said Carolyn Pace, Vice President of Managed Care at Dignity Health in Arizona. “We are pleased to be able to respond to the health care needs of Humana members at our numerous care centers.”

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Az Business honors healthcare leaders

Each year, Az Business magazine hosts the Healthcare Leadership Awards to honor the women, men and institutions that bring excellence and innovation to Arizona’s healthcare system. Here are the winners and finalists who were chosen by a panel of industry experts and were recognized at the 2014 Healthcare Leadership Awards on Thursday, April 10 at the Ritz Carlton in Phoenix. See photos from the event here or on our Facebook page.

BIOSCIENCE COMPANY
Winner: Translational Genomics Research Institute (TGen)
TGen has made great strides in the field if genomics medicine. TGen researchers work to help physicians prescribe drugs that are designed more intelligently, work more effectively and have fewer toxic side effects. They have received numerous grants to support research into brain cancer and brain injuries, advanced cancers, Parkinson’s, rare childhood disorders, and more.

Finalists:
Barrow at PCH
Sonora Quest

COMMUNITY OUTREACH/EDUCATION
Winner: Barbara Kavanagh, Arizona Myeloma Network
Kavanagh’s mission is to change the lack of information and support resources for myeloma cancer by forming the Arizona Myeloma Network and the Living with Myeloma Conference, which has grown to 300 people. She also introduced the Pat and Bill Hite Cancer Caregivers Education and Support Program for caregivers to receive support and answers.

Finalists:
Catherine Ivy, Ben and Catherine Ivy Foundation
Kathleen Goeppinger, Ph.D., Midwestern University

HEALTHCARE EXECUTIVE
Winner: Robert L. Meyer, Phoenix Children’s Hospital
Meyer is credited for the rapid and significant turnaround of Phoenix Children’s Hospital from the edge of financial failure to a successful $588 million expansion that made the hospital into one of the largest pediatric medical centers in the country. PCH is ranked in U.S. News & World Report’s Best Children’s Hospitals.

Finalists:
Tim Bricker, Chandler Regional and Mercy Gilbert
Mary Lee DeCoster, Maricopa Integrated Health System
Tony Marinello, CEO of Mountain Vista, IASIS Healthcare
Ed Myers, St. Luke’s Medical Center, IASIS Healthcare

HEALTHCARE ADVOCATE
Winner: Dr. John Chen, Maricopa Integrated Health System
Serving the community’s most vulnerable residents, Chen has helped thousands of patients within the Maricopa Integrated Health System. He sees patients who are in urgent need of treatment because of their lack of dental insurance or location in third world countries. He promotes dental care and hygiene to help prevent serious diseases.

Finalists:
Dr. Randal Christensen, Crews ‘n’ Healthcare
Gerri Hether, Orchard Medical Consulting

INSURANCE PROVIDER
Winner: Blue Cross Blue Shield of Arizona
Marking its 75th anniversary in Arizona, BCBSAZ is committed to improving the quality of life for all Arizonans. The company focuses on providing the best value in health insurance as well as outside programs targeted to children and their families to help reduce childhood obesity.

Finalists:
Health Net of Arizona
UnitedHealthcare of Arizona

LEGAL ADVOCATE
Winner: Kristen Rosati, Polsinelli
As an attorney dedicated to the healthcare industry, especially to healthcare privacy, health information exchange and clinical research, Rosati has written 12 books, 30 articles and made 200 presentations on healthcare topics. She also helped establish two nonprofits in Arizona that support health information exchange and health information technology.

Finalists:
Richard Mallery, Snell and Wilmer
Martin L. Shultz, Brownstein Hyatt Farber Schreck

MEDICAL CENTER OR HOSPITAL
Winner: Scottsdale Healthcare
As a nonprofit, Scottsdale Healthcare not only employs 6,500 staff members, but also is comprised of 1,400 volunteers who donate more than 155,000 hours of service each year. They are the largest employer in the City of Scottsdale and is known for its innovative medical technology, research and patient care.

Finalists:
Banner Good Samaritan Medical Center
Cancer Treatment Centers of America
St. Joseph’s Medical Center
St. Luke’s Medical Center

MEDICAL COMPANY OF THE YEAR
Winner: Ventana
Ventana is driving personalized healthcare through the development of “companion diagnostics” to identify patients most likely to respond favorably to specific therapies. Ventana has worked is currently engaged in more that 150 collaborative projects to develop and commercialize companion diagnostics globally.

Finalists:
Medtronic
W.L. Gore and Associates

MEDICAL RESEARCH COMPANY
Winner: Banner Alzheimer’s Institute
BAI has undergone a major prevention trial to evaluate a treatment in cognitively healthy older adults at the highest known genetic risk for developing Alzheimer’s disease at older ages. The study is part of the Alzheimer’s Prevention Initiative API, an international collaboration led by BAI to accelerate the evaluation of promising but unproven prevention therapies.

Finalists:
Banner MD Anderson
University of Arizona Cancer Center

PHYSICIAN OF THE YEAR
Winner: Jimmy Chow, IASIS Healthcare
Chow improved the field of orthopedics by helping to design and teach a hybrid technique of a minimally invasive total hip replacement where the surgeon builds a new hip from inside the body. This surgery results in no post-operative limitations and many patients are discharged within 24 hours. Chow is one of 10 surgeons in the world to perform his surgery.

Finalists:
Karen Corallo Chaney, Magellan Health Services
David Notrica, Phoenix Children’s Hospital

RESEARCHER OF THE YEAR
Winner: Venkatesh G. Ramaiah, Arizona Heart Hospital
Ramaiah, the medical director and director of vascular and endovascular research, successfully created the “un balloon,” which is used to remodel thoracic endografts without the wind sock effect. This products was able to be marketed and sold.

Finalists:
David Jacofsky, CORE Institute
Glen Weiss, CTCA

LIFETIME ACHIEVEMENT
Linda Hunt, Dignity Health
Hunt, who has served as the leader of Dignity Health in Arizona since 2012, has taken a leadership role to advance healthcare and the biosciences for the people of Arizona. She has worked diligently with legislators, business leaders, educators, scientists and community organizations in order to identify, formulate, and support policies that will give Arizonans better healthcare and raise the bar of knowledge.


Click here to see all the photos.

law

Honoring excellence in corporate counsel

Effective corporate counsel has never been more important than it is in today’s new economy.
Az Business magazine is recognizing the important and vital role that in-house counsel plays in the success of a business with the Arizona Corporate Counsel Awards (ACC Awards). The 30 finalists and winners were honored Thursday, January 16 during a ceremony and dinner at the Ritz Carlton Phoenix. Here are the finalists, in alphabetical order:

Melissa M. Buhrig
Vice president, assistant general counsel and assistant secretary
Western Refining
Since 2005, Buhrig has served as a founding member of the Western Refining legal department. Her responsibilities include corporate governance, compliance, and securities matters for the company. Prior to joining Western Refining, Buhrig was a shareholder in Barfield Law, a Miami, Florida-based boutique firm representing commercial insurers and business leaders in corporate and litigation matters. Before that, she was a founding member of the satellite litigation department in the Naples, Florida office of Robins, Kaplan, Miller & Cirsi, a national law firm.

Carolann Bullock
Human resources legal attorney
Intel Corporation
Bullock joined Intel in Chandlers as an HR legal attorney in 2010 following an extremely successful career in private practice. Bullock joined Ryley, Carlock & Applewhite in 1995 and was elected a shareholder in the firm just four years later. When she departed for Intel and the new challenge of an in-house legal role, she was chair of the firm’s well-respected Labor & Employment Practice Group. While in private practice, Bullock’s practice was devoted to counseling and defending employers faced with claims of sexual harassment, disability, gender, age, race, wrongful discharge and employment-related tort and contract claims.

Lawrence Cuculic
Vice president and general counsel
Best Western International, Inc.
Cuculic manages the legal department for Best Western, the largest hotel chain in the world, in a manner that is efficient, effective, and respectful. Cuculic is also actively involved in managing strategic direction, providing guidance on corporate legal issues, board and board committee matters and managing relationships with external counsel. Since his arrival at Best Western, Cuculic has been thrust into various complex litigation, including IP and antitrust class action matters. Through his guidance, Cuculic spearheaded legal victories for Best Western that resulted in a complete mitigation of damages.

Bob Desmond
Chief intellectual property counsel
Honeywell International, Inc. – Aerospace
Desmond is the chief IP counsel for Honeywell Aerospace, a $12 billion business unit of Honeywell International Inc. which has more than 7,000 employees in Arizona. Honeywell Aerospace’s Vice President of Engineering and Chief Technology Officer, summarized Desmond’s contributions to Honeywell Aerospace as follows: “Bob has developed a world-class intellectual property process within Honeywell Aerospace. He has not only refined and improved our intellectual property portfolio, but also created a sustainable process for refreshing its contents and ensuring the true business value of the IP is being properly realized. He has set the standard for Honeywell and the broader aerospace industry.”

Ruth Franklin
Corporate contracts counsel
ON Semiconductor
Franklin leads an international team of six member,s including both lawyers and contract professionals who are charged with negotiating semiconductor manufacturing sales agreements with customers throughout the world. These negotiations can span many months and typically involve describing every aspect of the manufacturing and supply processes within ON Semiconductor. Franklin is fond of saying that this is a job she is passionate about because it uses all the various areas of expertise that she has built up over her career: detailed lawyering, strategic planning and tactical negotiations.

GoDaddy in-house legal department
GoDaddy
GoDaddy’s legal team is led by General Counsel and Corporate Secretary Nima Kelly. GoDaddy’s 13-lawyer legal team counsels this rapidly-growing Internet company as it accomplishes its mission of empowering its customers to easily start, confidently grow and successfully run their own ventures. GoDaddy currently serves more than 12 million paying customers worldwide with 4,300 employees working in 21 states and eight countries. Under Ms. Kelly’s leadership, GoDaddy’s legal department has been re-engineered to efficiently deliver high-quality legal advice at the pace needed to keep up with its business partners. Divided into Intellectual Property, M&A/International, Litigation/Employment, Agreements and Internet Policy functions, its lawyers work as a cohesive team and are encouraged to “roll up their sleeves,” become intimately involved with their clients’ day-to-day activities and help them accomplish their business goals. Issues range from the serious (patent litigation and international expansion) to the sublime (the Super Bowl ads and talent agreements with Kid Rock, Snoop Dogg and Ke$ha for the annual blowout Holiday Parties). The team also works to develop effective and responsible Internet policy for GoDaddy and the global online community.

Jill Harrison
In-house counsel
W.L. Gore & Associates Inc.
Harrison has served as one of the corporate counsel at Gore for nearly nine years. She leads the medical device manufacturer’s product liability litigation and counseling practice globally. For much of her tenure at Gore, Harrison also led strategic counseling and litigation in the area of non-competes and trade for Gore’s Medical Products Division and provided extensive employment law counseling and litigation management for sales associates in the division. Harrison also assumed a significant leadership role in developing and implementing an innovative integration program for new legal team members to effectively facilitate their participation in the company’s global legal team.

John T. Jozwick
Senior vice president and general counsel
Rider Levett Bucknall
Rider Levett Bucknall hired Jozwick by contract in 2002 for a temporary assignment analyzing claims made by subcontractors in a major wastewater treatment plant project. As word spread with clients about his expertise in analyzing construction disputes, forensic claims, and construction defects, Jozwick was offered a full-time role. Under his direction, the company’s claims department grew from one temporary contractor to five full-time employees. Jozwick also played a major role in developing advisory services into a significantly profitable service. Today, the advisory service line offers clients risk analysis, claims analysis, dispute resolution, expert witness and dispute avoidance services.

Alan Kelly, Scottsdale Lincoln Healthcare Network’s legal team
Senior vice president and general counsel
Scottsdale Lincoln Healthcare Network
Kelly has been an in-house lawyer at Scottsdale Lincoln Healthcare Network for the past nine years. By creating an efficient and modern legal department, Kelly has been able to provide advice to everyone from executives to operational employees. His continued innovation led him to improve the SLHN Risk Management Department so that it can effectively manage all of the complex risk that a $1 billion company is faced with. Kelly’s strong leadership is as highly valued as his skills as an innovator. Johnathan Wallach, one of Kelly’s employees, said, “Alan has been a true mentor who actively promotes initiative in all people who work for him.”

Margaret Koppen
Deputy general counsel
Standard Microsystems Corporation
Koppen is Standard Microsystems’ main transactional attorney. Kim Van Amburg, senior vice president and general counsel at Casino Del Sol Resort, said that during her 10 years at the company, Koppen has been able to hone a “specific expertise in negotiating terms of sale agreements with her employer’s customers,” some of which are the world’s largest semiconductor companies. Koppen has been instrumental in “increasing efficiency, production, and accountability without increasing the size of the legal department.” Her contributions to the company have helped double the company’s revenue. She teaches the University of Arizona College of Law’s first-ever contract drafting course, which she developed.

David Koval
Vice president and general counsel
Kitchell
Koval went to Kitchell in 2004 as an employee for one of the company’s subsidiaries, Kitchell Contractors. In this role, he brought credibility to the company through refining legal processes, streamlining and creating uniformity in subcontractor relationships and evaluating the company’s risk. His results earned the respect of everyone at Kitchell and he was eventually tapped by CEI Jim Swanson to oversee all legal activities for the 60-year-old company. Kitchell’s interests include real estate development, commercial construction, program and construction management and air conditioning wholesale supplies.

Erin Lewin
Senior vice president and general counsel
Avnet, Inc.
Lewin leads Avnet’s 98-member global legal department and provides advice and guidance to the company’s business leaders. “Erin has demonstrated her ability to effectively guide a global team that deals with a complex, multinational legal environment while serving as a leader who fosters collaboration and employee engagement for her team,” said Avnet CEO Rick Hamada. In 2013, Lewin’s team oversaw the legal aspects of 12 acquisitions with a combined deal value of $367 million and combined revenue value of $1.2 billion, as well as the divestiture of two subsidiaries.

Kelly LoCascio
Chief compliance office and executive vice president
Angel MedFlight
LoCascio has been with Angel MedFlight, a worldwide air ambulance company, since 2008. In 2008, LoCascio was named one of the top 50 pro bono attorneys in Arizona and stays involved in the community by volunteering for the American Cancer Society, FreshStart and HomeBase Youth Services. She is a member of the American Bar Association, the Association of Corporate Counsel, and the Executive Women’s Golf Association. In addition to practicing law and volunteering, LoCascio was crowned Ms. Arizona Woman in 2007. This competition is part of the Arizona United States Pageants. She also ecompetes in triathlons.

Michael Mason
Senior counsel, labor and employment
Pinnacle West Capital Corp.
Mason is a strategic partner helping his internal clients solve legal problems in a changing industry. Mason transitioned two years ago as a shareholder at a large national firm, Greenberg Traurig, to a role with Pinnacle West. Mason often works to build consensus with various teams to reduce the threat of litigation. He challenges external counsel to be creative but cognizant of the costs of litigation. Mason served as the young lawyer representative to the State Bar Board of Governors for several years and currently sits on the Executive Council for the Labor and Employment Section for the Arizona State Bar.

L. Richards McMillan
Senior vice president and general counsel
Freeport McMoRan
McMillan has been senior vice president and general counsel of Freeport-McMoRan Copper & Gold Inc. since October 31, 2007. McMillan served as senior corporate and securities law attorney of FCX since 1995. The Tulane University Law School graduate joined FCX after a 30-year career with the law firm of Jones, Walker, Waechter, Poitevent, Carrère & Denègre, L.L.P., where he served as partner. McMillan served as head of Jones Walker’s corporate and securities section and also served as a member and chairman of the Jones Walker’s Executive Committee.

David Mulvihill
Vice president and general counsel
Make-A-Wish Foundation of America
Mulvihill is general counsel of the Make-A-Wish, a national nonprofit organization with 74 chapters that grant the wishes of children with life-threatening medical conditions. A substantial portion of Mulvihill’s time is spent protecting the Make-A-Wish name and trademarks from infringement by sound-alike organizations and others. In connection with these efforts, he has worked closely with various state charity officials, as well as with the U.S. Senate Finance Committee and the Federal Trade Commission. Prior to joining Make-A-Wish, Mulvihill was a partner in a firm in Pittsburgh, where his practice focused on commercial litigation.

Carmen L. Neuberger
Senior vice president and general counsel
Phoenix Children’s Hospital
A hospital that is a part of the ever evolving health care environment “requires a knowledgeable talented and dedicated general counsel,” said Debra Stevens, director of marketing and communications for Phoenix Children’s Hospital. Neurberger not only possesses the knowledge and talent Stevens speaks of, but she essentially developed the hospital’s entire legal department. During this process, Neurberger was able to create a program which allows the hospital to manage and control its own risk. She is also credited with developing and implementing a code of ethics, and improving the relationship between the legal and human resources departments.

Daniel Oseran
Privacy counsel
eBay
Oseran has worked in the information technology and legal fields for more than a decade, ensuring legal compliance, designing network infrastrcuture and managing large project teams. He also enforced information technology laws on behalf of the 5th largest District Attorney’s office in the country, and prosecuted the first state level case of Internet anti-piracy in the United States. Oseran advises business units on developing privacy-protective products, campaigns, websites and other programs. He also manage internal tools to report compliance and communicate policies. Before moving to eBay, Oseran led Paypal’s innovation and continuous improvement of the IT control framework, including the integration of multiple compliance requirements.

John M. Pons
Executive vice president and general counsel
Cole Real Estate Investments, Inc.
Pons has been instrumental in guiding the legal department at Cole in supporting the company’s overall mission in the acquisition, management and disposition of real property. The company has seen tremendous growth, listed on the NYSE and has lined itself up for a merger/acquisition that is poised to make it one of the 15 largest REITs in the United States. Pons’ demeanor and guidance has helped make Cole’s legal department high-functioning, highly collaborative and highly-engaged. Before attending law school, Pons was a captain in the United States Air Force where he served from 1988 until 1992.

Deanna Pickering
General counsel
Lumension Security, Inc.
As the sole in-house lawyer, Pickering manages legal issues across the globe and is often called upon to do the day-to-day legal work, such as customer contract review, that helps the organization save money on outside lawyers. But as the general counsel for a software company with operations in North America and Europe and a sales force throughout the world, Pickering has to help the organization move forward with strategic initiative and work with other executives to manage risk, solve legal issues, and support and direct outside lawyers in a competitive and rapidly changing business environment.

Daniel J. Quigley
General counsel
Tohono O’odham Gaming Enterprise
Quigley began his representation of the Tohono O’odham Nation with respect to its gaming operations in 1995. However, it was in 2003 that the Tohono O’odham Gaming Enterprise created its own in-house legal department and hired Quigley as its first general counsel. Quigley has faithfully represented the Nation’s gaming interests through a time when it has experienced exponential growth. Among his more noteworthy triumphs are the successful campaign for the 2002 Indian Gaming Initiative (passed by Arizona voters in 2002) and subsequent Gaming Compact negotiations with the State of Arizona.

Darrell Sherman
Vice president, general counsel, secretary
Taylor Morrison
Sherman joined Taylor Morrison as vice president and general counsel in June 2009 and helped the home builder launch a successful IPO in 2013. He is responsible for the company’s legal affairs including transactions, governance, litigation and regulatory matters. Prior to joining Taylor Morrison, Sherman was general counsel at Centex for four years in the Southwest and Mountain States Regions and associate general counsel at Del Webb/Pulte for five years. Prior to joining the homebuilding industry, he was a finance and real estate attorney at the law firm of Snell & Wilmer in its Phoenix office.

James Silhasek
Executive vice president and general counsel
Discount Tire
Silhasek manages the legal and real estate departments and is specifically involved in all real estate acquisitions, matters of taxation and complex business litigation. Silhasek began his association with Discount Tire in 1980, while in private practice, and joined the company in 1988. During his association with Discount Tire, it has grown to become the world’s largest tire and wheel retailer with more than 870 locations in 28 states. Silhasek received his Juris Doctor from Creighton University Law School and a Master’s of Law in taxation from Georgetown University Law Center.

Sprouts Farmers Market, Inc.
Legal department
The natural and organic grocery chain hired its first in-house counsel, Brandon Lombardi, in January 2012 and he set about assembling an in-house legal department that could provide the needed legal services with the quality, acumen, and responsiveness that he and his fast-paced client demanded. Sprouts’ recent success, including the IPO which was shepherded from commencement to completion by Lombardi and his team, serves as a model for how to aggressively yet responsibly build a business. That success could not have been achieved without Sprouts’ legal department. That this 10-person team did not exist two years ago makes their accomplishments even more impressive.

Karen Stein, IO’s legal department
General counsel
IO
Stein oversees all legal and risk management functions of the company. She holds a Juris Doctor, with honors, from Emory University, an MBA from Loyola University with a concentration in finance, and a Bachelor of Science degree in business from the University of Maryland, where she graduated magna cum laude. She has practiced law since 1994, focusing on business transactions, licensing, and intellectual property. Before joining IO, Stein practiced at the Troutman Sanders law firm in Atlanta and served as the Assistant general counsel for the PGA Tour for 10 years.

Matthew Stockslage
Vice president and associate general counsel
Dignity Health
Stockslage is the senior legal leader for Dignity Health’s Arizona and Nevada service areas, which includes six hospitals — including the world-renowned Barrow Neurological Institute — and more than 40 affiliated outpatient sites. As one of three regional legal leaders reporting to Dignity’s general counsel, Stockslage supervises a staff of 11 and is the lead attorney for joint venture transactions and relationships across the Dignity system. He has helped implement a restructuring of the Dignity legal department, its work flows, reporting relationships and client accountabilities to facilitate Dignity’s implementation of healthcare reforms and to accommodate its growth strategy to become a national healthcare provider.

Randall S. Theisen
Executive vice president, general counsel, assistant secretary
Western Alliance Bancorporation
Theisen has served as general counsel of Western Alliance Bancorporation and its three bank affiliates includes Alliance Bank of Arizona, BankWest of Nevada and Torrey Pines Bank since February 2006. Theisen joined WAL from Squire Sanders & Dempsey and has more than 20 years of legal experience representing financial institutions in banking, corporate and financial services law. He was named a “Leading Lawyer 2006” and “Best of the Bar 2005.” He serves on the Business Law Committee and Consumer Financial Services Committee for the American Bar Association. He is also a member of the Arizona Bankers Association.

Michael Walker
Senior associate counsel, labor and employment/litigation
Insight Enterprises, Inc
Walker is the sole litigator and labor and employment lawyer for Insight in the United States and Canada. Insight is a Fortune 500 company that provides hardware, software and related services to business and government agencies. Walker is “stunningly successful” at preventing, resolving, and promptly defending claims that go through litigation in labor and employment, commercial matters and in actions brought by government agencies according to Mark Rogers, association general counsel for Insight. Walker has also been able to reduce spending on several categories of work. “Above all, (he) is a practical problem solver and has excellent business judgment,” Rogers said.

Stuart Zigun
Assistant general counsel
Emerson Network Power
Colleagues say Zigun in the kind of attorney every business wishes it had. Zigun has an exceptional depth of understanding of his clients’ business and products and is intimately familiar with the company’s strategy and direction. In more than 30 years as an in-house counsel, Zigun has never had an agreement he worked on be litigated. This is a testament to his ability to successfully resolve disputes. Zigun, who earned an undergraduate degree in industrial engineering from Cornell and his law degree from Boston University, has represented large public companies that include Raytheon, Motorola and Emerson.

startup

Getting an angel to open the checkbook

Governor Jan Brewer touts her policies and business regulatory climate as the reason Arizona is growing new businesses. That may be a factor, but it’s not the major reason Arizona topped the Kaufman Foundation Index of Entrepreneurial Activity in 2012. If it were the case, Arizona would have been on top again in 2013—instead of plummeting to 20th nationally.

“Just because there are a lot of startups,” observes Barry Broome, CEO of the Greater Phoenix Economic Council, “doesn’t provide a measure of the economic growth in the Valley.” A startup can be someone opening a consultancy, a contractor or the next Apple. Self-employment is a form of startup. The challenge is nurturing a startup so it grows with high value jobs.

Local governments and the Arizona Commerce Authority see major value with growing Arizona startups into enterprises. Chris Mackay, economic development director in Chandler says, “There’s staying power when a business is local. It’s connected to the local community and if the economy falters, the owners are more willing to keep going locally as opposed to closing up shop.” That local staying power is one reason Mackay says Chandler makes big investments in growing future enterprises.

Planting the seeds

Arizona’s new economy needs startups to scale up into enterprises. Those growing small businesses become hiring employers offering high value jobs paying home-buying income. Government policy supporting businesses that can scale up is based on simple economics.

Businesses with more than 20 employees, says the Small Business Administration, generate two of three Arizona paychecks. Those same businesses cut checks for more than 70 percent of Arizona’s private payrolls. The value in 2012 was over $100 billion.

All new businesses are “startups,” but not all startup businesses will be entrepreneurial enterprises. “There is no relation between starting a business and starting a company,” says Dr. Daniel Isenberg, Professor of Entrepreneurship Practice and founding executive director of the Babson College Entrepreneurship Ecosystem Project in Boston. “Ninety percent of companies formed don’t grow high value jobs.”

Isenberg says that the difference between a start-up and enterprise is a matter of scale. He is an international advocate for scaling a business to grow as opposed to opening a business. An entrepreneur, he points out, is a business founder with a large company that just happens to be small right now.

Arizona State University, as the new American university, is at the cutting edge of helping turn ideas into enterprise. Recently, the college joined the elite ranks of schools offering a stand-alone degree in entrepreneurship. It’s on that list with Harvard Business School, Babson, and University of Texas. Its goal is getting new businesses that can grow into the market.

Locally grown

ASU says more than 70 percent of its W.P. Carey School of Business MBA graduates remain in Arizona. Keeping these graduates in state provides the human resources necessary to building new enterprises fueling the future economy.

“Starting a company — as opposed to just starting a business — is hard work,” says Isenberg. “An entrepreneur looks at the business and sees it growing. It’s a time of sleep deprivation, hard work, and endless pitches.” Few startups achieve quality growth—less than ten percent, he believes. “The golden triangle of a growing enterprise,” he continues, “is cash, customers and people.”

“An entrepreneurial endeavor isn’t limited to startups,” Isenberg emphasizes. “University research, family businesses, mature companies, all can be turned into a growing enterprise. Most startups tend to stay small.” The key to the economic contribution of startups in Arizona is scalability. He is adamant about it, “Ambition is not a dirty word. A business founder without ambition does not significantly contribute to overall economic growth.”

“There are a number of entrepreneurial success stories arising from a new direction for an existing, mature business,” Isenberg reports. Sometimes it takes a new owner with a vision; sometimes the existing management team finds a new direction. It can be a license from a university, a new product, or an innovative use of an existing product. Entrepreneurship can occur anywhere in a business’ lifecycle.”

Bringing ideas to market

Arizona colleges are on that licensing bandwagon. Entrepreneurs complain that it takes years to license patents or transfer technology from most universities. In ASU’s Office of Knowledge and Enterprise Development, the Arizona Furnace Technology Transfer Accelerator — first project of its type in the world — slashes technology transfer time from years to months. The AZ Furnace is a joint venture of ASU, University of Arizona, Northern Arizona University and Dignity Health. Funding partners include the Arizona Commerce Authority, BioAccel, and additional support from Thunderbird School of Global Management.

“There are hundreds of patents sitting on shelves at universities that could be in the market earning money for creators, colleges and businesses,” enthuses Gordon McConnell, assistant vice president, Entrepreneurship & Innovation Group in OKED. “We started a program to get patents into the market quickly.” The startups selected for incubation in AZ Furnace are either entrepreneurs in search of an idea to market or idea-creators ready to market through a business entity. The fledgling enterprises are capital-ready in 12 months or less.

Enterprise starts with a leader and a vision. The scale of the vision is what makes the difference, says Isenberg. The vast majority of business owners are thinking of a model that gets them to the point that they’re putting money in the bank. He says, “Entrepreneurs are thinking of a model that finds smart people, willing customers and puts the cash to back into the enterprise.”

“Angels invest in businesses they understand or CEOs they respect,” says Broome. “There’s a need for more of that in the Valley. We’re just not seeing the next Apple or Google evolving here.”

Gaining visibility

“The biggest challenge about getting angel and venture money is visibility,” says Brandon Clark, region coordinator for Startup Arizona.  “If you’re a promising digital startup locally, it’s a little harder to get noticed nationally being from a region not known for its digital startups.  That’s starting to slowly shift.” National publications, FastCompany and Entrepreneur Magazine, have eyed Arizona as an emerging technology region.

The development opportunity for the small business is capital. Combine the “Broome Factor”—known businesses; known leaders—with the large number of startups, and there are too many funding requests heading towards too few checkbooks.

What makes early investors open pocketbooks to startup businesses is scalability. Businesses with potential to grow create the greatest return on investment for the angels. “It’s also makes a difference to the local economy,” says Isenberg. “Local policymakers need to change their focus from ‘startup’ to a ‘high value growth business’.”

Cities like helping scalable startups — and provide resources that build success. There’s a loyalty factor when the business grows; it typically remains in the hometown that helped it succeed. This is important to Chandler, Mesa, Peoria, Phoenix, Scottsdale, and Surprise. These five cities have specifically invested in incubators and accelerators to nurture and graduate businesses achieving market traction. Chandler, Phoenix and Tucson have involvement with collaborative workspaces — Gangplank and Co+Hoots — as well.

While an employee or two in a collaborative workspace works well for a while, the time comes when a move up is needed. Clairvoyant, an enterprise and analytics startup now in Chandler Innovations started with Gangplank. “We grew from four employees in March to 12 in April,” smiles Amber Anderson, a firm partner and its business developer. “We needed a place to meet with clients and work with a growing team.” Still self-funded, the growing entity plans to hit 20 employees by January.

Mackay explains, “We help a company like this grow and hope that as it expands it continues to locate in Chandler.” To that end, the city is working with landlords in its Price Corridor to offer “teenage” space that lets a business move from the heavily subsidized rents and back office support of the incubator into its own place—without too much sticker shock.

Support from cities

The difference by which startup is accepted into a city’s incubator is the ability to scale up from the garage to commercial space; from one employee to more than 20. Chandler and Mesa are looking for businesses with this capacity. Innovations gives lab and office space to businesses that have formed entities — LLCs, corporations, partnerships — and a business plan. Mesa’s new Technology Accelerator is planned with a similar focus, but is looking for businesses at an earlier stage. Surprise’s Arizona TechCelerator wants to shepherd a business to the angel investor stage.

In Surprise, scalability is one of the criteria to be accepted into Arizona’s oldest incubator. The TechCelerator is looking for businesses offering something outside the box or creating a new niche. “The company has to be started before we’ll consider them,” says Julie Neal, the economic development coordinator for the city’s enterprise. “They need a mentor, a plan and have to know where they are going.”

“Scaling up is difficult,” says Isenberg, “but doing it right defines the difference between the successful entrepreneur with a growth business and a startup that just stays small. Marketplaces are competitive. The startup has to acquire customers. That means overcoming inertia or changing buyer behavior. While established companies are cruising on their business platforms, the startup has to hire people, start a company, raise money, and all the while, it’s competing in the marketplace. That’s tough work.”

After incubation, the business must gain market traction. At this phase, the fledgling enterprise has product going out and customers paying for it. The kinks are being smoothed, and it’s time to move up to the next stage and grow. Isenberg says that the high growth criterion is simply 20 percent annual increases in sales or staff for five years.

Getting capital

To make this leap requires high levels of capital — the checks venture capitalists cut. The biggest challenge in Phoenix is that there are few sources for local venture capital. The venturists hang out in places like Silicon Valley, Boston, San Diego and Seattle. “There are even a couple of funds with deep ties to the Valley,” worries Clark, “but they have very little involvement in local startups.”

Clate Mask, CEO of Infusionsoft, had to travel out of town for his venture capital. “At one time, I was told that a fund wouldn’t cut a check for a firm in Phoenix because we didn’t have the workforce for success,” he says. “That’s no longer true; venture funds are seeing that there is a real climate for success in the Valley.”

Another resource for a growing business is the Arizona Commerce Authority’s “Growing Your Arizona Business” services. The quasi-public agency provides mentorship, regulatory assistance, access to incentive programs and site selection. It also works as a liaison connecting the growing business with other business resources. The agency mentors businesses in accessing federal procurement and grant opportunities as well as serving as an entrée to international trade.

Overall, the major resource in Arizona for start-up businesses is the universities. Anemic legislative funding for the schools causes their efforts to help to face the same struggles growing businesses face. Their efforts to improve Arizona’s long-term economy are stymied by a declining source of capital.

“ASU is underfunded,” complains Barry Broome. “The school has done an amazing job despite being financially crippled by budget cuts. It’s suffering from a lack of resources to take its programs to scale.” “Scalability” is applicable to the business-development programs at the universities and other public agencies just as it is for growing enterprises.

“Getting money for those programs is the top job for the next governor,” predicts Broome.
Opportunity in Arizona will come from the core of businesses growing today. They will create the jobs for the new economy and drive economic success for the next generation.

Sun Health

Dignity names new West Valley hospital

Dignity Health announced that “St. Joseph’s Westgate Medical Center” will be the name of its new West Valley hospital during an official groundbreaking at the planned 35-acre medical campus near the Loop 101 and Glendale Avenue.

The $44 million Dignity Health facility is scheduled to open in early 2014 and will provide West Valley residents with a new alternative to receive high quality healthcare services. Dignity Health already operates three hospitals in the Valley including St. Joseph’s Hospital and Medical Center, which is home of the Barrow Neurological Institute in central Phoenix, and Chandler Regional and Mercy Gilbert Medical Centers. Dignity Health was previously known as Catholic Healthcare West.

When the new facility opens, the first phase will contain a 60,000 square-foot hospital that will include an emergency room, 24 inpatient beds, two operating rooms and diagnostic services. For the most complex medical cases, patients will benefit from the clinical integration with St. Joseph’s in central Phoenix. Established in 1895, St. Joseph’s today is nationally recognized for its specialty care and its expertise in treating the most complex medical cases.

“St. Joseph’s Westgate Medical Center was selected as the name of the medical campus because it builds on more than a century of healthcare in the Valley and people recognize St. Joseph’s as a beacon of quality care,” says Linda Hunt, Dignity Health Arizona President and CEO. “We intend to deliver that same excellence to the residents of the West Valley.”

The hospital will initially employ 200 staff and will have the capacity to expand to 200 inpatient beds as demand grows. The 35-acre medical campus will house community physicians and outpatient partners, giving patients one location for their healthcare needs.

“St. Joseph’s Westgate Medical Center will be a vibrant medical campus right in the heart of the West Valley,” says Gregg Davis, President of St. Joseph’s Westgate Medical Center. “The campus is designed to be a model for the nation’s changing healthcare environment and will change as medicine and the community evolve.”

The campus will serve as a collaborative venture in partnership with physicians in the West Valley to enhance and better manage the delivery of healthcare to patients in the area.

“This is a great project for the City of Glendale as the Loop 101 corridor near Glendale’s Sports and Entertainment District is one of the city’s key economic focus areas,” says Glendale Mayor Jerry Weiers. “The new hospital will not only expand development west of the freeway, it will also attract other healthcare-related businesses and jobs to the area.”

While this is the first Dignity Health hospital in the West Valley, the organization began to lay the business foundation of its launch several years ago. Today, Dignity Health operates a family practice clinic and an orthopedic clinic in Peoria, imaging centers throughout the area, an outpatient surgery center and a partnership with the Minute Clinics located in the CVS pharmacies in Glendale and Goodyear.