Worcester Business Journal

4 Worcester Business Journal • August 31, 2015 www.wbjournal.com T o hear Spectrum Health Systems CEO Chuck Faris tell it, Massachusetts is a relatively good place to be in the addiction treatment services industry, and to receive treatment if you need it. While the business has notoriously tight margins, thanks to lean federal reimbursements for substance abuse services, the Baker administration, and the Patrick administration before it, have worked to make treatment access as easy and available as possible in the wake of the now widespread opiate crisis in the U.S. Last week, Faris said he was grateful that Baker and Patrick have treated the addiction epidemic as a public health problem, contrasting that approach with that of Maine Gov. Paul LePage, who has focused more on using up law enforcement to crack down on illegal drugs amid less funding for methadone treatment. Where are services growing in Central Mass.? While Spectrum will close its only outpatient meth- adone treatment center in Sanford, Maine, because reimbursements through Maine's Medicaid program have been reduced, the Worcester-based nonprofit is growing in Massachusetts. A private-pay facility opened in Westborough in May, followed by an outpa- tient treatment facility in downtown Leominster, which provides methadone, as well as counseling services. It's exploring more outpatient sites, includ- ing at least one more in North Central Massachusetts. Are there shortfalls? While Spectrum offers residential treatment ser- vices for those covered by federal and state payers, expanding inpatient beds for that population is diffi- cult, according to Faris, because reimbursement rates fall short of costs. However, the company gained 20 beds when it opened its new Westborough site, which replaced a smaller facility in town. Meanwhile, a for- profit behavioral health services provider has announced plans to open a 104-bed residential treat- ment facility in Devens. Health Partners New England is slated to open the site in 2016. A 24-bed unit will be dedicated to treating people with substance abuse problems who have also been diagnosed with mental health disorders. According to CEO Michael Krupa, psychiatric pro- viders such as his receive higher reimbursements than companies that offer only addiction treatment ser- vices, so it's more feasible for them to offer those ser- vices in conjunction with mental health treatment. What part does government policy play? There is change afoot. In Massachusetts, a new law takes effect Oct. 1 that will require commercial insur- ers to provide up to 14 days of residential treatment services. Meanwhile, Gov. Charlie Baker has proposed adding 100 residential treatment beds, which will open up resources for lower-income patients and those who need treatment for a longer period of time than their insurers will cover. In at least one case, police have moved to connect drug users with treatment services rather than arrest them. In June, the Gloucester police began to send addicts to Spectrum facilities and others. n ATHOL — Tool manufacturer L.S. Starrett felt the bite of the interna- tional market's downturn in its fiscal year 2015 report with a decline in sales and a large drop in net earnings. Net sales for fiscal year 2015 declined $5.6 million, or 2 percent, compared to fis- cal year 2014, with gains in North America offset by lower sales else- where, caused principally by a stronger U.S. dollar when measured against other currencies, Starrett reported in its annual 10-K filing with the U.S. Securities and Exchange Commission. Net sales in North America increased six percent, to $137.3 million in fiscal year 2015, while international sales fell 11 percent to $104.4 million. The com- pany said 90 percent of that decline, $12.1 million, was due to a weaker Brazilian Real. MARLBOROUGH — The founder of ReWalk Robotics, whose U.S. head- quarters is in Marlborough, will retire in November and not seek re-election to the board of directors, the company announced. Dr. Amit Goffer will also step down as president and chief tech- nology officer. His resignation will take effect Nov. 18. Goffer founded ReWalk in 20001, following an accident that left him a quadriplegic. ReWalk produces exoskeletons to help those with spinal cord injuries walk again. The product received approval from the U.S. Food and Drug Administration and was recently approved for insurance reim- bursement. DEVENS — Power grid and wind ener- gy equipment manufacturer AMSC announced $6 million in orders last week. The company formerly known as American Superconductor received two orders for its D-VAR STATCOM systems that work to modulate power, from a semiconductor fabrication plant and a wind farm in Australia. The PQ-IVR Power Quality Solution ordered for the fabrication plant helps get systems online quickly after power outages. An industrial voltage restorer, it eliminates downtime and the need to recalibrate equipment due to slight voltage variations, according to AMSC. MILFORD — Atlas Travel has acquired United Travel Inc. of Tewksbury, Atlas Travel & Technology Group announced. It's the third acqui- sition in less than five years for Atlas, which bought Horizon Travel in 2011 and Angora Travel in 2014. The state- ment said United's clients will gain access to more services, advanced trav- el technology and increased buying power. Atlas said travel agents added from United would predominantly serve leisure clients and handle corpo- rate bookings. MARLBOROUGH — Boston Scientific has received Food and Drug Administration approval for its Innova stent system for treatment of patients with peripheral artery disease. The Innova Vascular Self-Expanding Stent System is designed to treat narrowing or blockages in the superficial femoral artery or proximal popliteal artery, conditions that can lead to peripheral artery disease, Boston Scientific said in a statement. The circulatory disorder, affecting more than 200 million people worldwide, results from a buildup of plaque in one or more of the arteries, most often in the legs, and can lead to painful ulcers, infections, or amputa- tion of the toes or feet. FRAMINGHAM — Staples, prepar- ing to absorb its chief rival, saw a sec- ond-quarter sales drop of more than five percent and a 56-percent plunge in net income linked to restructuring and its planned acquisition of Office Depot. The retailer of office supplies reported sales of $4.9 billion for the quarter, which ended Aug. 1, down from $5.2 billion for the same quarter in 2014. It also reported net income of $36 mil- lion, or 6 cents per share, down from $82 million, or 13 cents per share. The results were in line with company expectations. LITTLETON — Littleton is facing the shutdown of a bottling plant that will take with it more than 60 jobs and $400,000 in revenue from the water it uses, as Sunny Delight Beverage Co. plans to close its 16.5-acre facility on Harvard Road. The Ohio-based bever- age maker said only two of the plant's 63 employees will be transferred to other positions elsewhere in the com- pany, according to spokeswoman Sydney McHugh. Production at the plant, which bottles Fruit 2O and Veryfine fruit juices, is being trans- ferred to other facilities, McHugh said. The plant uses approximately $400,000 worth of water a year, said Scott Edwards, general manager for the water department, which has already made moves in anticipation of the revenue loss. FRAMINGHAM — Sales were higher than expected in the second quarter for The TJX Cos., the parent of off-price retailers T.J. Maxx, Marshalls and HomeGoods said. Net sales of $7.4 bil- lion rose 6 percent over the second quarter of 2014. Net income for the second quarter, which ended Aug. 1, was $549 million, for earnings per share of 80 cents, the company said. That was up 7 percent over last year. And the third quarter is off to a good start, the company said. TJX said it REGIONAL BRIEFS >> Continued on next page Verbatim "We just felt the time was right to go across Main Street." Jack L. Foley, Clark University's vice president for government and community affairs, about the alumni and student center the school is building across the street from its campus. The school will share parking space behind the center with St. Peter's Catholic Church, a neighborhood landmark. Source: Sunday Telegram, Aug. 23 >> "All of this involves constant dialogue – part of my job every day is to make the case for the school." University of Massachusetts president Martin Meehan, in an interview in which he said he's interested in lobbying state legislators for more money for UMass Medical School, which receives state money for about 4 to 6 percent of its approximately $1 billion annual budget. Source: Sunday Telegram, Aug. 23 >> "Too early to talk about that." U.S. Sen. Elizabeth Warren, D-Mass., on whether she would seek re-election in 2018. She was asked the question during an interview taped before Warren reportedly met with Vice President Joe Biden as he weighed whether to enter the Democratic race for president. Source: State House News Service, Aug. 24 >> CENTRALMASS In Review BRIEFING: BATTLING ADDICTIONS IN MASS.

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