Worker's Comp -- Why It's Working
A decade ago, Florida's workers' compensation system was in crisis. Skyrocketing claims costs were driving steep increases in premiums and making coverage unaffordable for many employers. Underwriting losses were so significant, in fact, that some insurance carriers stopped writing policies in the state and some businesses were denied policy renewals. In 2003, lawmakers responded by overhauling the state's workers' comp system with a set of reforms designed to rein in cost drivers. Key elements of those reforms included limits on plaintiff attorneys fees, revisions to the medical fee schedule, redefined eligibility standards for permanent total disability, revised benefits for permanent partial disability and other changes. Eight years later, workers' comp coverage is widely available, rates are affordable and the market is competitive. Rates, which dropped 61.9% since the 2003 reforms, will climb slightly this year. While Florida Insurance Commissioner Kevin McCarty approved an average 7.8% rate increase for 2011, Florida is still among the most affordable in the nation for workers' comp insurance.
The final installment in our three-part series on the Business of Healthcare.
See also:
» Part 1: Healthcare by the Numbers
» Part 2: Healthcare Innovators
 Workplace Safety: Business owners looking for ways to reduce workplace injuries can sign up for a free safety and health audit with USF SafetyFlorida, the state's official small-business OSHA consultation program. Operated from the University of South Florida in Tampa, USF SafetyFlorida's consultation program works primarily with businesses in high-hazard industries. Above, USF SafetyFlorida consultant Jim Ulseth (left) discusses electrical safety at a commercial construction site in Tampa. Architectural Specialties Trading Co. in Pensacola implemented a safety program that has saved the company about $50,000 a year in workers' comp costs, according to USF Magazine. More information: usfsafetyflorida.com. [Photo: Colin Hackley] |
New Florida law would make airport business less transparent
Dealing with public matters in private has led to several recent controversies at Tampa International Airport. Former executive director Louis Miller didn't disclose to some board members a potential tenant's interest in a building he wanted to demolish. Officials delayed revealing that a department head sat on a panel that evaluated contract proposals from a company that employed his wife, before he resigned. Now, if Gov. Rick Scott signs a new law that recently sailed through the Florida Legislature with Tampa International Airport's help, you can expect even less transparency at airports across the state. In the just-finished legislative session, TIA's lobbyist and an airport trade group helped push through sweeping public records exemptions that would affect all 22 commercial airports in Florida. The exemptions would shield from public view any proposals from businesses seeking to buy, rent or develop airport property and facilities. The documents would become public record after an airport board approved the proposal. "What difference does it make, then?'' said Barbara Petersen, president of the First Amendment Foundation in Tallahassee. "It's a done deal. What if it turns out to be the airport director's brother-in-law, and they've already entered into an agreement? Then they're stuck with it or have a breach of contract.'' [Source: St. Petersburg Times]
Bill to rein in pill mills has loopholes
The pill mill bill passed by the Florida Legislature with great fanfare carries three sizable loopholes that may blunt the state's crackdown on rogue pain clinics. Critics of the legislation said the loopholes would weaken the state's attempt to combat pill mills and prescription drug dealers and abusers who go there. Bill supporters called the loopholes minor. "No bill is perfect. I'm sure someone will come up with ways around it," said Dr. Steven Rosenberg, vice chairman of the Florida Board of Medicine, which has been grappling with pill mills for three years. "[But] I believe law enforcement and the board now have the tools needed to end the careers of drug dealers hiding behind their M.D. degrees." Police contend that a series of arrests and increased state oversight have thinned the pack of pain clinics. As of last week, there were 183 in South Florida, 118 in Central Florida and 838 statewide — down from 218, 124 and 911, respectively, in October. See the loopholes experts have noted in the bill as reported in the South Florida Sun-Sentinel.
Publix agrees to sell Crispers
Publix Super Markets said Tuesday it is selling Crispers, a little more than four years after buying the casual restaurant chain. The buyer, Healthy Food Concepts LLC, an affiliate of Miami-based investment group Boyne Capital, plans to keep management and employees of the 36 restaurants throughout Florida, Publix said. Sale price and other terms were not disclosed.
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SPORTS BUSINESS
Play Money The finances of pro athletes too frequently follow a riches-to-rags trajectory. Not the least of their challenges involves finding a good financial adviser. |
Mail Order Prescriptions to Cost Florida Jobs
Tucked inside the 400 page state budget is a provision requiring more than a hundred thousand state employees and retirees to order their prescriptions by mail from out of state. The provision has more than 900 locally owned drug stores crying foul.
There are fewer calls these days to this family owned Pharmacy. That's because a little debated provision in the state budget requires the three thousand state employees to order their prescriptions three months at a time from a national mail order supplier. The change is putting a pinch on small neighborhood pharmacies like the one Lynn Massey has operated for more than 25 years. "I've not laid anyone off, but I've had to cut hours."
Mail order contractor CVS's website shows one facility in South Florida, but the pharmacists say it is just as likely the prescriptions are being filled in Rhode Island or Illinois, sending jobs out of state.
State Representative Jimmy Patronis has taken concerns about the plan to the highest levels. "It's a fine line between the fiduciary responsibility of getting the best bang for our buck, for those resources, and challenging somebody's ability to make a living."
The nine hundred locally owned pharmacies in Florida say they weren't even given a chance to compete on price.
[Source: WJHG]
ALSO AROUND FLORIDA:
› UF faces $33M funding gap, plans no layoffs
The University of Florida is getting another big funding cut, but also some good news in the state budget passed last week. After a planned tuition increase of 15 percent, UF expects a budget gap of about $33 million. UF President Bernie Machen said Tuesday that the university will decide over the next few weeks how to achieve the needed savings, but there are no plans to end programs or lay off employees.
"We're not overjoyed with having the fourth year of budget cuts in five years, but I can see how we can get through it without dismantling programs," he said.
Machen discussed the budget before the Rotary Club of Gainesville and issued a memo on his plans to address cuts. He said that a combination of "strategic budget reductions" and the use of non-recurring funds will be used to cover the shortfall.
The state budget, which now goes to Gov. Rick Scott for approval, includes funding for some UF priorities. It provides $10 million to the Institute for the Commercialization of Public Research, which focuses on economic development based on publicly funded research.
It is expected to be relocated from Boca Raton to the Florida Innovation Hub being built east of the UF campus in Gainesville.
"It's a perfect fit for what we've got going on at the Innovation Hub," Machen said.
› Satellite Beach celebrates as 'tireless' volunteer Scotty Culp turns 90
To know Satellite Beach is to know Scotty Culp.
Her name is not only on the Satellite Beach Municipal Complex, but her mark as a volunteer can be seen everywhere around town -- from "Scotty Duty" after-school programs at Satellite High, to the petunias and periwinkles at Pelican Park and to the Flag Day displays at City Hall.
In recognition of the mark she has made through thousands of volunteer hours contributed to the city and high school, Satellite Beach renamed its City Hall and adjoining civic center in 2005 the Scotty Culp Municipal Complex. Ever so humble, Culp said there are a lot of other volunteers who could have received the honor.
"I didn't know I was that important," she said with a laugh. "What can you say? It's just very kind for them to do that for an old lady like me."
Thin and delicate by age, Culp, who turned 90 year old Monday and was honored at a city-sponsored birthday party that drew more than 200 people, still moves with the energy of a much younger person.
› Disney reports slightly smaller profit on higher income
The Walt Disney Co. reported Tuesday a slight drop in profit during the first three months of the year, though it said guest spending and hotel occupancy rose at its domestic theme-park resorts.
The company said revenue rose 6 percent o $9.1 billion during its fiscal second quarter, which ended April 2, compared with the same period a year ago. Earnings amounted to 49 cents a share, missing analysts' consensus forecast of 57 cents a share.
"We are pleased with the underlying quality of our second-quarter earnings," said Robert Iger, Disney's president and chief executive officer. "There is great creative momentum throughout the company, which gives us continued confidence in our ability to grow our businesses."
In its parks-and-resorts division, revenue rose 7 percent to $2.6 billion, though rising costs ate away at the unit's operating profit, which fell 3 percent compared with a year ago. The company said the parks division was hurt by the closing of its Tokyo resort after the March earthquake and tsunami in Japan, and by Disney Cruise Line's higher fuel costs and expenses related to the January launch of its new cruise ship, the Disney Dream.
› Blaming lockout, Dolphins cut salaries of employees
Before Tuesday, the NFL lockout had seemingly only impacted players (the millionaires) and ownership (the billionaires). Now, it also has delivered a harsh blow to even the lowest-salaried employees of the Dolphins.
Team executives advised all members of the organization during a meeting Tuesday that pay cuts would be immediately issued across the board until the lockout ends, multiple sources said.
Any member of the team making more than $75,000 will face a 20 percent pay cut. Those making below $75,000 face a 15 percent pay cut and anyone below the $50,000 will be hit with a 10 percent pay cut.
The employees were told their salaries would be reinstated to their previous levels after the lockout is lifted and players return to work, sources said.
› For hotel guests, an amenity on wheels
Mouthwash. Comfy robe. Sewing kit. BMW?
Hotels increasingly are offering a new amenity: access to luxury cars.
The Ritz-Carlton in Key Biscayne has a fleet of new BMWs available for guests to test-drive for up to three hours through early June. Fairmont Turnberry Isle in Aventura shuttles VIPs in a Jaguar XJL. Miami's Epic Hotel has hosted special events showcasing exotic roadsters including Ferraris and Lamborghinis.
"When we put a Jaguar out front, it's subliminal advertising to a degree, because it's sitting right there for all our members and all our guests to see every day," said David Feder, managing director of Fairmont Turnberry Isle.
The shiny speed machines look good parked in front of the lobby, sure, but they're also a sales pitch from auto dealers and manufacturers to well-heeled (but hopefully not lead-footed) guests.
› Orlando tourism supporters promote industry's benefit to community
Supporters of Orlando's tourism industry gathered Tuesday to promote travel and tourism's contributions to Central Florida's economy.
Flanked by costumed characters from attractions like SeaWorld Orlando and Pirates Dinner Adventure, industry promoters credited travel and tourism for helping Orange County to recover from the recession.
"Travel and tourism has not been the focus when our local and state leaders talk about economic development. We talk about all the other areas — and they're all important, there's no question about it — but we can never forget that travel and tourism put us on the global map," Orange County Mayor Teresa Jacobs said. "If we want to continue to prosper, Orange County leaders need to continue to celebrate and promote this great industry, because without this industry, we would have thousands and thousands of people unemployed."
Among the statistics highlighted: Local households save approximately $540 a year in taxes because of contributions from the travel and tourism industry, according to Visit Orlando, the local convention-and-visitors bureau.
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› Raymond James ranks tops in Smart Money brokerage survey
Smart Money magazine's annual broker survey named St. Petersburg-based Raymond James as the nation's top full-service brokerage, edging out perennial competitor and last year's winner, Edward Jones. Raymond James outperformed Wall Street and banking giants Wells Fargo Advisors, UBS, Merrill Lynch and Morgan Stanley Smith Barney in the survey. How? Superior stock picking made much of the difference.
» SmartMoney 2011 Broker Survey
» Full-Service Broker Rankings
› Commission picks new Jackson Health System board
Miami-Dade County Commissioners established Tuesday a new board with familiar faces to oversee the county's financially stressed public hospitals.
Four of the five members appointed to the new seven-member Financial Recovery Board were members of the old Public Health Trust board, which was dissolved by Tuesday's action after overseeing Jackson Health System for 38 years.
Marcus Lapciuc, Trust chair, was the top vote getter with nine. Two other Trust members, Joe Arriola and Stephen Nuell, and newcomer Darryl Sharpton each received seven votes from the 11-member commission. They will take over as soon as they take the oath of office and the county posts bonds for them, most likely this week.
Also named Tuesday was Trust member Joaquin del Cueto, selected by Andy Madtes, president of the South Florida AFL-CIO, who was allowed a pick by the recovery board ordinance. Two other members will be selected later by the head of the Miami-Dade legislative delegation and by the mayor, when a winner emerges from the mayoral elections.
› States eye drug tests for welfare recipients
Lawmakers in more than two-dozen states have proposed drug-testing recipients of welfare or other government assistance, taking a tough stance on aiding the poor in the down economy. Critics say such laws would be unconstitutional - an argument that federal judges have agreed with before.
Similar proposals have been introduced in past years by lawmakers in dozens of states, but none currently requires drug testing because it's difficult to get around the arguments that the tests violate the Constitution's ban on unreasonable searches. Michigan's random drug testing program for welfare recipients lasted five weeks in 1999 before it was halted by a judge, kicking off a four-year legal battle that ended with an appeals court ruling it unconstitutional.
No other state has enacted such a program, worrying about legal battles. But lawmakers say they're willing to take the risk, as cash-strapped states struggle to close budget gaps, potentially paving the way for major legal battles. The National Conference of State Legislatures said at least 30 states have proposed to drug test recipients of government aid during the current legislative session. A few states, including Florida and New Mexico, want recipients to pay for the drug tests themselves. Florida estimates tests will cost between $15 and $35.
› New design of jet drive for boats developing
Ken Hall, a former chief executive of Donzi Marine, has been hired as CEO of a new marine jet-propulsion engine company.
Maelstrom Marine LLC's research and development business is based in Tallahassee, but Hall is hoping the company can open a new manufacturing plant in the Sarasota-Bradenton area.
The company's RipJet product is an electrically powered, water-propulsion motor that looks like a jet-turbine engine on a miniature aircraft.
One of the company's investors is Tom Clancy, author of the "The Hunt for Red October" and other Jack Ryan novels.
Several boat manufacturers have "expressed interest in designing new watercraft around some of our prototype drives," Hall said. "The application for this product holds tremendous potential and will revolutionize the way propulsion systems are used."
› Orange County leaders slash growth impact fees
Orange County leaders voted 7-0 Tuesday to reduce growth impact fees by 25 percent, and slice in half the charges levied on developers used to build schools when new homes put more children in the system.
Leaders say cutting these fees now could spur new development and jobs, plus better reflect drops in the costs to build new parks, roads and schools since the economic downturn slashed land, labor and material prices.
"The county gets it and is trying to help small businesses," was the message Commissioner Ted Edwards said he's heard from constituents since he led the push for the discounts.
County leaders agreed, and fast-tracked the local developers' relief measure. The cuts take effect Friday.
› Doral up for sale, but "Great White'' golf course slated for development
The owners of the Doral resort want to spin-off one of its five golf courses for residential or commercial development, according to court filings.
The move to separate the Doral's "Great White'' course — named after designer Greg Norman — probably would not impact the resort's annual PGA golf tournament, which is played on the famous "Blue Monster.''
"We don't anticipate any changes with the Cadillac Championship,'' said tournament director Eddie Carbone. "Obviously, it would depend on a sale, but, right now, we think it's status quo."
The recommended upgrade, unveiled in court documents relating to the Doral's parent company's bankruptcy, could be part of a larger change at the Doral as its current owners declare the property not profitable enough to keep.
The "Doral is at a strategic crossroads,'' lawyers for the resort's parent, MSR Golf Resort, wrote in New York bankruptcy court filings this week. To "remain competitive in the long-term, the Doral should reposition itself as an elite resort. This repositioning will require a capital infusion in exchange for improved profitability in the future...''
› Update on repairs to Crystal River nuclear plant due in 'several weeks'
Progress Energy CEO Bill Johnson recently told analysts that more details should be made public next month about the repairs on the Crystal River 3 nuclear power plant, shut down since September 2009 in Citrus County.
The power company in March discovered a second delamination, or gap, in the plant's concrete containment building during the late stages of retensioning the building. That prompted an engineering analysis and review of the new delamination. Once concluded, repair options will be evaluated. Said Johnson: "We are well along in this evaluation process and should complete it over the next several weeks, and we'll be able to provide more detail at that time."
› Jackson Lab's hopes coming into focus
The legislative session generated less in state funding for economic development than many wished, but apparently enough for supporters of Jackson Laboratory's proposed biomedical village to continue pursuing the $934 million project. A new economic development fund won approval in both the Florida House and Senate on Saturday, dedicating $120 million to job-creating deals. And the state's special closing fund got an injection of nearly $50 million.
In all, various state funds totaling $200 million might be tapped for a Jackson deal.
The budget delivered to Gov. Rick Scott by the Legislature "has -- depending on how you count it -- $100 million to $200 million in economic development funds," said Mike Hyde, Jackson's vice president of advancement.
"We have a proposal that we believe meets the state's criteria for job creation and economic development and we are eager to work through the process and bring that proposal to closure," Hyde said Monday. "Having said that, I have no idea how long that will take."