IIB WEEK IN REVIEW: IU Health details deeper cuts

2013-10-05T13:49:00Z IIB WEEK IN REVIEW: IU Health details deeper cutsGerry Dick Inside Indiana Business nwitimes.com
October 05, 2013 1:49 pm  • 

Indiana University Health is providing more insight into plans to cut hundreds of positions at several facilities throughout the state. In a notice to the Indiana Department of Workforce Development, the health care organization now says it intends to lay off around 900 employees in Indianapolis, Muncie, Carmel and Fishers, which is about 100 more than originally announced. During a recent interview on Inside INdiana Business Television, Indiana University School of Medicine Dean Jay Hess said the cuts provide students with a glimpse into the reality of the industry. Last month, IU Health estimated it would have to let 800 workers go as part of efforts to reduce expenses by $1 billion.

 

Ruling Favors Former Holiday World Owner's Widow

The Court of Appeals of Indiana has issued a key ruling in the ownership battle over Holiday World & Splashin' Safari. The decision upholds a lower court finding that the widow of former majority owner Will Koch does not have to sell her interest in the Santa Claus attraction. Will Koch's brother, Dan, attempted to purchase the shares in 2010. A Vanderburgh Circuit Court decision declared Lori Koch majority shareholder. That finding has been affirmed by the state court of appeals.

 

Purdue Details Daniels' Pay Structure

Purdue University's board of trustees has approved a set of goals that will determine a portion of President Mitch Daniels' salary. Daniels requested that 30 percent of his pay be designated "at risk," so he would have to achieve certain measures to earn that money.

 

Health Exchange up And Running

Enrollment in Indiana's health insurance marketplace is now open. The Affordable Care Act is requiring all businesses to make sure employees have been notified of their insurance options. The state has set up a website to provide details of the new system. Depending on income, many will see a reduction in rate due to federal subsidies. The Indiana Department of Insurance says its actuaries have projected a more than 70 average cost increase for individual health insurance in 2014.

 

Connersville Lands New Employer

A Minnesota-based cabinet manufacturer is bringing operations to Connersville. Mayor Leonard Urban says Wayzata Home Products Connersville LLC will invest $12.5 million to buy and refurbish the former Visteon plant. The company plans to hire more than 300 workers in the next five years. Urban says the plant is "the gateway to our town" and believes the deal will provide an economic and morale boost for the city. Governor Mike Pence was in Connersville Friday afternoon for the official announcement. Urban says Carbon Motors leaving indirectly helped the city attract the manufacturer. Urban says there is a work force in the area "left over from Visteon." He says many of them earned two-year degrees since the plant shut down and have been underemployed.

 

Companies Honored For Worksite Wellness

Twelve Indiana companies have received AchieveWELL designations from the Wellness Council of Indiana. The organization says the recognition acknowledges worksite wellness programs. First Person in Indianapolis was recognized with the state's only "Five Star" AchieveWELL designation.

 

Indiana Feeling Effects of Shutdown

The effects within the state of the partial federal government shutdown are becoming clearer. A spokeswoman for Governor Mike Pence confirms it is costing Indiana an additional $33,000 per day. Approximately 600 employees at Grissom Air Reserve Base near Peru are on furlough, while the Naval Surface Warfare Center in Crane says the shutdown will have minimal impact. Christy Denault, communications director with the Office of Governor Mike Pence, says joint programs between the state and federal government including Medicaid and unemployment benefits are covered. She adds that some programs such as welfare should be covered through the rest of the month.

 

International Tech Company Bullish on Bloomington

A global cybersecurity firm is highlighting the benefits of doing business in Bloomington. Virginia-based Cigital Inc. says the Indiana city beat out 15 others about two years ago to land a key Midwest operation. The company already had offices in high-tech hotspots including Boston and Silicon Valley and wanted to add a strong Midwest presence. During an interview on Inside INdiana Business Television, Chief Technology Officer Gary McGraw says the search reached from Austin, Texas to Ann Arbor, Michigan and Bloomington was "number one, far and away."

 

Bank Announces Job Cuts

Muncie-based First Merchants Corp. (Nasdaq: FRME) has announced plans to lay off dozens of workers in northwest Indiana. In a notice to the state, the bank says more than 80 employees from recently-acquired Citizens Financial Bank are expected to lose their jobs. The first separations are expected to occur in December.

 

Indiana Remembers Gene Glick

Memorial services for one of the state's most prominent real estate developers and philanthropic leaders will take place Friday. Gene Glick passed away Wednesday at his Indianapolis home. The World War II veteran built a successful housing company and along with his wife, Marilyn, funded numerous charitable initiatives including the Glick Eye Institute, the Indianapolis Cultural Trail and the Indiana Authors Award. He was 92. Our partners at WTHR report Glick's lasting legacy is apparent throughout the state.

 

Plan Aims to Bolster 'Vital' State Industry

The chair of the Indiana Automotive Council says a new three-year strategic plan will help keep the state on the leading edge of auto manufacturing. Tom Easterday, who is also executive vice president of Lafayette-based Subaru of Indiana Automotive Inc., says the industry-led initiative calls for more work force training programs and innovation centers that would build on existing college, university and high school relationships.

 

Republic Airways Agrees to Sell Frontier

Indianapolis-based Republic Airways Holdings Inc. (Nasdaq: RJET) has reached a deal to sell Frontier Airlines. Arizona-based Indigo Partners LLC says the agreement is worth $145 million.

 

Lilly Touting 'New Era of Growth'

One of the state's most prominent employers is detailing plans to return to revenue growth after 2014 and the potential launch of new treatments next year. Eli Lilly and Co. (NYSE:LLY) Chief Executive Officer John Lechleiter says, despite the expiration of two major patents beginning in December, the company is on a course to a "new era of growth." He delivered the message to investors during a meeting Thursday at the Lilly Corporate Center in Indianapolis. The pharmaceutical maker is reaffirming goals of generating at least $20 billion in revenue and $3 billion in net income through 2014.

 

South Bend Highlights New Downtown Businesses

Downtown South Bend Inc. is touting 13 new businesses in the district, which employ more than 100. The organization says the restaurants, shops and attractions also represent nearly $2 million in private investment.

 

Retail Expert Predicts Less Merry Holiday Season

A retail expert expects holiday sales to lag behind last year. Purdue University Consumer Sciences and Retailing Professor Richard Feinberg says unemployment and the end of a Social Security tax cut are leaving consumers with less money to spend. He expects national retail sales to range from flat to 5 percent lower compared to last year. Feinberg says fewer available dollars will lead to increased competition among retailers, which will ultimately be good news for consumers. Feinberg believes there is one area that could experience an increase.

 

Restaurant And Lodging Association Names Hall of Famers

The Indiana Restaurant and Lodging Association has announced its 2013 Hall of Fame class and award winners. Honorees include the organization's retiring chief executive officer, the owner of central Indiana-based Cunningham Restaurant Group and the chef emeritus of Purdue University's Hospitality and Tourism Management program.

 

For more Inside Indiana Business, visit www.insideindianabusiness.com.

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