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A Full and Exciting Year for Harvard Bioscience

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Harvard Bioscience of Holliston, a global developer, manufacturer and marketer of a range of life sciences equipment, has reported record quarterly revenues of $30.4 million for Q4-2014, an approximate 9.0 percent increase of $2.5 million in comparison to the $27.9 million earned in Q4-2013.

The company stated it was able to significantly improve its operating margins and other key metrics in the final quarter of 2014. “The fourth quarter wrapped up a very fulfilling and exciting year for our company,” President and CEO Jeffrey A. Duchemin said in a statement. According to Duchemin, acquisitions completed last October, combined with a new management philosophy, contributed to the strong finish. Acquisitions included Multi Channel Systems MCS GmbH and Triangle Biosystems Inc.

Combined with their procurement of HEKA Electronik of Germany in the first quarter of 2015, Duchemin expects the new additions to continue to “contribute toward our organic growth as our sales team offers a complete set of electrophysiology solutions to our customers.” He concluded, “In 2014, we put together the building blocks of a solid foundation that we believe will continue to deliver value for our shareholders. We look forward to another great year.”

Income from continuing operations, as measured under U.S. generally accepted accounting principles (GAAP), was a loss of $19,000, or $0.00 per diluted share, for the three months ended Dec. 31, 2014; compared with a loss of $255,000, or $0.01 per diluted share, for the same quarter in 2013. For the year 2014, revenues were $108.7 million, an increase of 3.3 percent, or $3.5 million, from 2013’s results.

Baker Takes $750M from MassHealth with New Budget

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On Wednesday, March 4th, Governor Charlie Baker filed a $38.1 billion budget proposal which includes recommendations for increased spending on objectives like local aid, transportation and higher education. The budget also proposes cutting more than $750 million from MassHealth to help fill a projected deficit of $1.8 billion.

For his first budget, Baker says he inherited a gaping shortfall in the available sources of revenue required to continue funding state government at the current level of service. The gap, officials say, was caused by an 8% increase in spending within the current budget year and reliance on one-time sources of up to $1.2 billion in funding.

Baker will file two pieces of companion legislation with the budget, including a bill to establish an early retirement program. The second bill entails his proposals for a tax amnesty program for first time filers, a gradual elimination of the film tax credit program, and an expansion of the earned income tax credit to 30 percent of the federal credit.

Without withdrawing from the state’s savings, increasing taxes or raising fees, Baker’s budget proposes to limit growth in spending by 3 percent, or $1.1 billion. It would also reduce the state’s reliance on one-time sources of funding by half. MassHealth, one of the largest expenses in the state budget, will grow by $950 million. This will represent a 5.6 percent increase in the nearly $14 billion Medicaid program, which provides healthcare to 1.7 million low and moderate income residents.

MassHealth had been expected to grow by 16 percent in fiscal 2016. However, Baker’s administration have budgeted $761 million in net savings back to the state, which includes $400 million in cuts at MassHealth after a redetermination process for 1.2 million subscribers. Budget officials have stated that chiropractic benefits would no longer be covered, though adult dental coverage and coverage for autism services to 10,000 children will be extended.

Besides trimming funds from MassHealth, the Baker Administration also plans to direct all capital gains taxes into the general fund in fiscal 2016. This represents nearly $300 million that would otherwise be earmarked for the stabilization account, currently holding $1.2 billion. $178 million in savings has also been budgeted from an early retirement fund while another $125 million will be taken from the Group Insurance Commission by increasing deductibles and premium co-pays, as well as increasing the employee health insurance contribution for all employees hired after 2003.

Other solutions to the budget gap include:

  • $100 million from a tax amnesty program;
  • $30 million from the sale of the Sullivan courthouse in Cambridge;
  • $125 million for actions like the state hiring freeze and the annualization of emergency cuts, and;
  • A minimum $17 million in federal emergency snow disaster money expected to arrive in July.

Most budgets were level funded, including the majority of agencies that faced budget cuts in fiscal 2015 to solve a mid-year deficit, which were level-funded to post-cut numbers. Exceptions included spending increases at MassHealth, health and human services like the Department of Children and Families, a $105 million increase for Chapter 70 school aid, and a $34 million increase in unrestricted local aid. The budget also includes a 3 percent raise in funding for higher education campuses, police training, and summer job programs.

With Plainridge Park Casino scheduled to open this summer, Officials say the governor has budgeted an additional $87 million in revenues that will be used, along with lottery profits, to fund unrestricted local aid in cities and towns. Roughly $70 million in legislative earmarks that had been engraved into the fiscal 2015 state budget have been eliminated.

Central Massachusetts Stands Out in Nursing Home Rankings

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It seems that Massachusetts may be the best place to go for rehabilitation and aftercare. Eleven of Central Massachusetts’ nursing homes have received the top rating in U.S. News & World Report’s annual list of best nursing homes.

The list for 2015 bestows five-star status to four Worcester facilities: Beaumont at University Campus, Holy Trinity Eastern Orthodox Nursing & Rehabilitation Center, Jewish Healthcare Center, and Notre Dame Long Term Care Center. Other area nursing homes earning the distinction are: Blaire House and Countryside Health Care, both in Milford, Coleman House in Northborough, Sandalwood Center in Oxford, Shrewsbury Nursing and Rehabilitation Center in Shrewsbury, Whittier Westborough Transitional Care Unit, in Westborough, and St. Camillus Health Center in Whitinsville.

Millions of Americans will spend at least some time in a nursing home this year, either for rehabilitation after a hospital stay or as long-term residents. The Best Nursing Home 2015 list, released in February, is intended as a resource to help find the best place to receive aftercare. The list covers ratings for nearly 16,000 nursing homes across the country. Of those included on the list, only 3,392 or 21.7% received a rating of five stars.

The Best Nursing Homes list is a searchable database providing valuable information about the type of care received, facility health and safety standards, and staffing. The profile for each facility displays any health and safety violations, performance ratings in various clinical categories, and the amount of time that nursing staff spends with residents.

The information is presented with comparisons between the state averages and national averages for each category. For instance, nurses at Beaumont at University Campus spend an average of 1 hour and 39 minutes with patients, only one minute behind the national average. Users can even access the general results of previous fire and health inspections, with citations for an violations the facility may have received.

This is the seventh year the magazine has produced its annual list of aftercare facilities. The list draws on data from the Centers for Medicare & Medicaid services, a federal agency that sets and enforces standards for nursing homes. For those in need of aftercare, rehabilitation or long-term care, the list is a valuable resource to help find the best nursing home and understanding exactly what puts that facility ahead of the rest.

Boston Scientific Purchases American Medical Systems Unit for 1.6 Billion

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Boston Scientific, a Marlborough-based life sciences company, announced on Monday that it has agreed to acquire the urology division of American Medical Systems for $1.6 billion. Boston Scientific expects to close the acquisition in the third quarter of 2015. This will be the company’s largest acquisition since it purchased Guidant Corp, a manufacturer of cardiovascular products, in 2006 for $27.2 billion.

American Medical Systems (AMS), a division of Endo International, published reports last week that Boston Scientific was to close a deal with Endo for an unspecified AMS unit. The urology unit of AMS, based in Minnetonka, Minnesota, employs roughly 800 workers worldwide. It covers the men’s health and prostate health divisions of AMS. The unit is being sold for $1.6 billion up front, plus a potential for another $50 million based on the unit’s sales in 2016. Acquisition of the urology branch encompasses AMS products that treat erectile dysfunction, male urinary incontinence, and benign prostatic hyperplasia.

Boston Scientific (BSX) states the company’s technologies complement their portfolio of products that treat other urological conditions, including kidney stones, pelvic organ prolapse, female incontinence and abnormal uterine bleeding. This follows their purchase of Bayer AG and IOGyn last year. IOGyn, based in California, received FDA approval for a system treating uterine fibroids and polyps. AMS products that treat urology related issues in women will not be included in the deal.

Over the course of the previous year, the AMS unit generated $400 million in sales and adjusted operating income of about $130 million, with net income of around $60 million according to BSX. President and CEO of Boston Scientific, Mike Mahoney, expects the acquisition will create a business with annual sales of nearly $1 billion and will enable “strong future growth prospects through portfolio innovation and international market expansion.” BSX anticipates more than $50 million in annual pre-tax cost savings by the end of 2018 with boosted profits starting as early as 2016.

The announcement comes less than a month after an out-of-court settlement with competitor Johnson & Johnson. BSX paid $600 million to their rivals after Johnson & Johnson disputed their purchase of Guidant. The settlement avoided a $7.2 billion lawsuit filed by the rival company that had agreed to purchase Guidant before BSX acquired it for $27.2 billion.

Employee Engagement and Wellness Top Priorities

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Employee engagement and wellness continues to be a hot topic in business circles, as executives look for more ways to increase productivity and boost growth. At the same time, the job market is improving enough that some managers are becoming concerned about ways to keep their best people.

A recent report entitled “State of the Industry: Engagement & Wellness in 2015” by Virgin Pulse in partnership with Human Capital Media revealed some notable findings about the state of workforce engagement and wellness. The researchers conducted a survey of 1,400 Human Resources Management professionals to gain greater insight.

The findings were eye-opening.

  • The report found that managers and executives see employee engagement and wellness in starkly different ways. Executives feel that the two terms can be applied to the same workplace activities while managers are much more results oriented and break the link.
  • When asked, over 77% of firms said they were not considering shifting to private health insurance.
  • Twenty-six percent of firms are not even bothering to measure return on investment for their engagement and wellness programs. Those that do measure ROI, do so primarily based on reduction in insurance claims, while slightly over a quarter are measuring engagement goals.

Virgin Pulse CEO Chris Boyce commented on the report that due to the stress and competition of modern life, executives are continuing to make efforts to improve employee engagement and wellness. He noted “That has a major impact on how engaged and productive people are both on and off the job, so leading employers are taking steps to change that.”

In that way, employers can keep their best people, improve productivity and create a healthier work environment.

Quincy Officials See New Project Jumpstarting Downtown Redevelopment

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In recent years, the city of Quincy has demonstrated an impressive commitment to its economic growth and revitalization. It was, in fact, the first city in the Commonwealth to receive District Improvement Financing (DIF), a state program that enabled the city to create a district improvement financing zone in Quincy Center. The plan is to use the newly generated tax revenues from businesses moving into the refurbished district to fund other important city infrastructure projects.

A Master Tax Increment Financing (TIF) program has also been designated for the downtown area since 2005. This program awards those businesses who invest in Quincy Center and create new jobs a 5% local real estate tax exemption.  These businesses also become eligible for a state tax credit.

The City’s downtown redevelopment plan has been in the works for some time and, in contrast to the huge downtown redevelopment plan announced at the start of 2014, the current plan seems financially sound and quite modest in scope. Quincy’s City Council established a new zoning district, increasing the height allowances, easing density and parking requirements, and instituting a streamlined permitting process. This zoning district encourages mixed-use development that should add to the vitality of the downtown.

Quincy Mutual Fire Insurance and Gate Residential Properties are financing a 400-unit apartment building and $100 million retail project which will be the first portion of the redevelopment. Construction on a six-story apartment building containing 169 units will begin in early 2015 with completion targeted for 2016. This building will have 12,000 square feet of both retail and commercial space. A second building will follow which will have retail space and 220 apartments.

The mayor of Quincy, Thomas Koch stated that “Quincy Mutual’s commitment to the city and its persistence in seeing this vision through to reality is nothing short of extraordinary. This plan confirms what we’ve known for some time — that Quincy Center’s potential is ready to be captured. The joint venture between Quincy Mutual and Gate Residential brings together two companies with tremendous expertise and who are committed to getting this project completed”.

Quincy Mutual has been in Quincy since its establishment in 1851. Quincy Mutual President and CEO K. Douglas Briggs also prepared a statement “Quincy is our hometown. More than half of our employees are residents of Quincy and adjacent communities, so what happens here has always been important to our company and the community. We are now partnered for West of Chestnut with a developer in which we have great confidence”.

The news release also included a statement from James Moran the executive vice president of Quincy Mutual: “We have the right team in place, and with Gate Residential we have a developer who fully understands this market and knows how to build projects with luxurious amenities that will appeal to individuals who value easy access to Boston in a relaxed urban environment.”.

Gate Residential, which is a division of Redgate Holdings LLC, also made a statement through its principal, Damian Szary, which said “West of Chestnut offers residents outstanding amenities and vibrant urban living in a historic community, conveniently located on the Red Line. West of Chestnut marks a new chapter for Quincy Center, and we’re excited to announce this terrific team that will build the type of project that will attract a new wave of young professionals to Downtown Quincy.”.

Other companies participating in the project are Graffito SP of Cambridge and Landworks Studio Inc., Sheskey Architects, and Duffy Design Group, all of Boston.

Quincy Center was due for a $1.6 billion overhaul by Street-Works, a developer from White Plains, New York, but the plan was deemed unfeasible and was terminated in April, 2014.

Worcester Chamber to Host Debate of Boston Olympics Bid

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The Worcester Regional Chamber of Commerce is about to host a debate discussing the pros and cons of Boston winning its bid to host the 2024 Olympics Games. The debate will be held as two separate functions, and is intended to discuss the possible implications for Worcester should Boston become the host city.

Representatives from the Boston 2024 Partnership, sponsors for the bid to bring the Olympics to Massachusetts, as well as their opponents, No Boston Olympics, will present their arguments to chamber members. This debate will address the potential impacts of Boston becoming the host city and Worcester’s potential level of involvement should that occur.

The discussion will begin on Tuesday, March 10, with opening statements from Richard Davey, former state transportation secretary and CEO of the Boston 2024 Partnership group. He will be discussing the partnership’s plan to run a cost-effective event using private funds, existing facilities and temporary venues. He will also discuss the organization’s belief that hosting the Olympics will greatly contribute to the commonwealth’s long-term growth.

On Friday, March 13, the debate will continue with statements from Chris Dempsey and Kelley Gossett, co-chairs of No Boston Olympics. The group believes that a pattern of overspending, years of construction, and few proven economic benefits for past host cities, make hosting an undesirable choice for Boston. They will discuss their view that the state should maintain its budgetary focus on schools and rebuilding transportation infrastructure.

A first time bidder in the Olympics, Boston beat out other major cities such as Los Angeles, San Francisco and Washington D.C. to become the official U.S. entrant. While its bid is heavily dependent on the use of existing facilities such as Gillette Stadium and the TD Garden, several venues would have to be constructed before Boston could host an international event on the scale of the Olympics.  This list would have to include – at a minimum – a temporary stadium able to seat more than 60,000, a velodrome, and an aquatics center.

Boston’s bid was privately funded by the Suffolk Construction Company, and has continued to gather more than $11 million in private funds.

Unfortunately, attendance for these debates is restricted to Chamber members only and will not be open to public. If you are unable to attend, watch this space for further details as they become public after the debates.

 

Study Foresees Continued Medical Technology Growth

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The medical technology industry is growing as an increasingly significant sector of the Massachusetts economy. According to predictions from Evaluate Ltd., a market research firm, it is expected to grow at a 5 percent annual rate for the next five years. The report, entitled “EvaluateMedTech World Preview 2014, Outlook to 2020” (free registration required for download) shows that medical technology sales are expected to reach $514 billion by the end of that period, with influential mergers and emerging players reconstructing the faces of industry leaders.

Westborough-based Coghlin Companies, Inc. recently announced that their subsidiary Cogmedix, a medical device manufacturer founded in 2008, had outgrown its space and was relocating to its new location in Worcester, more than doubling the size of its facility to keep up with growth and demand. The announcement of the merger involving Medtronic and Covidien, estimated at $42.9 billion, is  is anticipated to form the new market leader in an industry that will be worth over half a trillion dollars by 2020.

Research has also shown that spending on global research and development will reach $30.5 billion by that year, a growth of 4.2 percent. In the first half of 2014, $1.3 billion was raised in completed medical technology IPO offerings, a 44 percent increase from the same period in 2013. During the first half of this year, the value of mergers in the medical technology field rocketed up by 363 percent compared with the same period the year before, a huge indicator of what can be expected in the near future.

Worcester Chamber Looks at Springfield Casinos as Model

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Downtown_Springfield,_MAIn what could soon become a blueprint for other regions to follow when planning for urban development, the proposed MGM Springfield casino is being set up to embrace its surrounding community rather than shut it out or physically divide it. According to James Murren, Chairman and CEO of MGM Resorts International, their $800 million casino project planned for Springfield’s South End hopes to establish a new model for the company’s casino communities.

One person closely watching the situation is the President and CEO of Worcester’s Regional Chamber of Commerce, Timothy Murray, who says, “Their vision is to create a new paradigm that’s outward looking and encourages the kind of cross-pollenization of locally owned businesses.”

Murray’s interest in the nearby project is directly related to Worcester’s $565 million CitySquare development project that is still under design. The hope is that the hotels and other needed developments in the downtown area for this project will be assessed carefully.

Murray, former mayor of Worcester as well as the Commonwealth’s former lieutenant governor, compared the potential of this project to those of the past. According to Murray, instead of opening up new possibilities, a project may end up dividing the city like the Worcester Center Galleria ended up doing. During his time as Mayor of Worcester, Murray oversaw the demolition of that mall, the space it once occupied now being used for the CitySquare project.

Muuray said the project, “is about undoing what the mall created and creating a true mixed-use district.”  It’s hoped that MGM Springfield will similarly embrace its surroundings and not  simply create an obstruction to community use of an urban area.

 

Massachusetts a Leader in LEED-certified Construction

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For the third consecutive year, the Commonwealth of Massachusetts ranks among the U.S. Green Building Council‘s Top 10 in the US.

The rankings consider sustainable building design, construction, restoration and rehabilitation and, in terms of square feet per capita, Massachusetts is fifth-best in the country for projects that adhere to Leadership in Energy and Environmental Design (LEED) standards, adding 99 LEED-certified projects last year.

The top four states, from bottom to top, are: Virginia, Maryland, Colorado, and Illinois.

Matthew Beaton, the state’s Energy and Environmental Affairs Secretary, said that the ranking was an endorsement of Massachusetts’s requirement that all new construction and major renovations meet the state’s LEED Plus green building standard. “Clean energy is yielding significant economic benefits with 10.5 percent job growth in the last year and 47 percent growth since 2010,” said Beaton.

The standard demands that energy performance for the new or renovated building be at least 20 percent better than the state’s building energy code, that the outdoor water consumption must be reduced by at least 50 percent, and that the indoor water consumption be reduced by at least 20 percent. In addition, principles of smart growth and smart energy must be promoted.

Presently, there are 37 LEED-certified buildings in the state, with 70 percent of them certified either gold or platinum.

Beaton said in a statement, “This recognition is another example of Massachusetts’ commitment to strengthening our economy, shaping our energy future and protecting our environment through clean jobs and technology.”

The numbers bear those comments out, with almost 6,000 clean energy-related businesses in Massachusetts, employing a total of over 88,000 workers.

Beaton also pointed out that Massachusetts was again – for the fourth consecutive year – named by the American Council for an Energy Efficient Economy as the top state in the country in energy efficiency.