Worcester Business Journal

wbjournal.com | February 6, 2017 | Worcester Business Journal 21 The growth of for-profit health care The Worcester Business Journal welcomes letters to the editor and commentary submissions. Please send submissions to Brad Kane, editor, at bkane@wbjournal.com. W ith more than 110 craft breweries in Massachusetts providing nearly 3,400 jobs between brewing and distributing, the industry in our state is burgeoning. This economic engine continues to drive our local economy with hundreds of jobs in Worcester County between locally owned and operated breweries and family-owned distrib- utors. This results in millions of dol- lars in wages and economic activity that contribute to our city's educa- tion, infrastructure and livelihood. We are in the midst of a golden age for beer, and it is imperative that we don't take our foot off the gas. This is why I proudly filed "An Act to Promote Economic Development and Market Access for Emerging Businesses," to continue the great success of our brewing industry, by making it easier to switch distributors. This bill will provide flexibility for breweries and mini- mize any disruption to the mature beer distribution industry. It will allow emerging breweries (privately owned and operated breweries that manufacture less than 30,000 barrels – about 413,000 cases – of beer per year) to refuse to sell beer to any of their distributors. Other bills have attempted to do this by easing the 46-year-old laws requiring brewers work with one dis- tributor, but they would destroy and significantly damage our small business distributors by taking 20 percent of a distributor's annual sales away, devastating these busi- nesses. We cannot afford to lose well-paid, full-time jobs. Under the bill, an emerging brewer can end its sales to a distributor by: 1) Notifying the distributor of the date sales would cease, then 2) reimburse the distributor for the inventory, related sales and marketing materials, and the fair market value of the business being taken from the distributor. This will allow 96 percent of U.S. breweries to have the choice of their distributor, including emerging breweries. It gives new choices to breweries while not endangering the many high quality, family-sustaining jobs delivered by beer distributors. It will also promote opportunities for emerging breweries in Worcester and Massachusetts to propel into the next stage of development and market expansion. On top of it all, emerging breweries can con- tinue to have the options to distribute their beer them- selves, add second, third or even more distributors, or choose to sell their IPA to one distributor and their pil- sner to a different distributor. Emerging breweries and distributors will be able to continue their mutually beneficial relationship. The bill is built on transparency, trust and fairness. I look forward to working with my colleagues in the legislature for the passage of this bill, and to ensure the brewing industry flourishes for working families and businesses alike. John J. Mahoney is a Democratic state representative serving Worcester. Give craft brewers distribution flexibility T he hallmarks of any good organization are quality and efficiency. Any business offering a similar at a lower price will almost always succeed in the marketplace. Sure, mitigating fac- tors like taxes, regulation and global competition can throw a company off-track; but for services inherently local – like health care – quality and efficiency are central to a winning formula. For-profit healthcare providers have been around Central Massachusetts since the first doctor decid- ed to charge fees for services, but our region did not have a major player until 2005 when Tennessee for-profit Vanguard Health System purchased the 124-year-old Saint Vincent Hospital in Worcester. In 2013 Vanguard was purchased by Tenet Healthcare, and Tenet's regional system includes The Metro West Medical Center in Framingham, Leonard Morse Hospital in Natick, the Worcester Surgical Center and three MedPost Urgent Care Centers in Franklin, Northboro and Wayland. The for-profit wave has escalated in the region in the last six months: In November, Steward Health Care System of Boston partnered with the Central Massachusetts Independent Physician Association; and in January, Louisiana for-profit Amedisys Inc. bought out the home care division of Worcester nonprofit Fallon and VNA Home Care. This increased number of healthcare providers who have shareholders to be accountable to, as well as running a healthy organization, has brought the role of for-profit health care further into the spot- light. UMass Memorial President & CEO Eric Dickson told Emily Micucci in her cover story this issue on for-profit health he is wary for-profit pro- viders will focus more on the services with the big- gest margins than the services the community needs. While those fears may be well founded, a 2014 study from Harvard University and Boston's Brigham and Women's Hospital shows that the record of hospitals switching from a nonprofit to a for-profit status resulted in greater financial stabili- ty while the quality of care was maintained. Given government emphasis over the last 10 years for healthcare providers – both for-profit and nonprofit – to rein in the increasing costs of care, having more large, well-capitalized for-profit busi- nesses move into the region may end up helping with these goals. Private enterprises have a long history of driving efficiencies while offering quality products. UMass Memorial and other nonprofit providers have the same challenges – running an efficient organization while increasing the quality of care to successfully competing in the market. All providers must be held accountable for not only their quality of service, but that they also cover their fair share of the uncovered care burdens our communities face. Those burdens simply can't be left for one sector of the healthcare system to absorb. Agencies like the Massachusetts Health Policy Commission maintain responsibility to keep a watchful eye on the marketplace, and regularly review proposed acquisitions and mergers to ensure healthy competition remains. As long as they are vigilant, a competitive system should assure we get the best care at competitive prices. V I E W P O I N T E D I T O R I A L BY JOHN J. MAHONEY Special to the Worcester Business Journal John J. Mahoney W W WO R D F R O M T H E W E B Comments of the issue "The leaders of manufacturing companies need to learn how to create a positive, progressive, exciting environments. This includes more business education, a culture of engagement and growth (career path) and other changes like other industries. You shouldn't relate this to only vocational schools as much of manufacturers should involve high-tech processes and systems, and business goals attractive to a highly educated workforce too!" - Barbara Finer, CEO of Hopkinton incubator TechSandBox, Jan. 24, responding to a WBJ reader poll on whether the manufacturing industry can shake off negative stereotypes about its working conditions and salary. Facebook feedback "Now we need a Sonic!!" - David Colette Gorgas, Feb. 1, on a Jimmy John's sandwich shop opening in Northborough WBJ Tweet of the week "It's no secret - people want to be in MetroWest!" - Katelin (@BankSmartKATE), Jan. 27, responding to a story about Greater Boston companies seeking Worcester cultural benefits for their employees living in Central Mass.

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