Wednesday 31 July 2013

Montana's State-Run Free Clinic Sees Early Success

Montana opened the first government-run medical clinic for state employees last fall. A year later, the state says the clinic is already saving money.

Dan Boyce for NPR Montana opened the first government-run medical clinic for state employees last fall. A year later, the state says the clinic is already saving money. Montana opened the first government-run medical clinic for state employees last fall. A year later, the state says the clinic is already saving money.

Dan Boyce for NPR

A year ago, Montana opened the nation's first clinic for free primary healthcare services to its state government employees. The Helena, Mont., clinic was pitched as a way to improve overall employee health, but the idea has faced its fair share of political opposition.

A year later, the state says the clinic is already saving money.

Pamela Weitz, a 61-year-old state library technician, was skeptical about the place at first.

"I thought it was just the goofiest idea, but you know, it's really good," she says. In the last year, she's been there for checkups, blood tests and flu shots. She doesn't have to go; she still has her normal health insurance provided by the state. But at the clinic, she has no co-pays, no deductibles. It's free.

That's the case for the Helena area's 11,000 state workers and their dependents. With an appointment, patients wait just a couple minutes to see a doctor. Visitation is more than 75 percent higher than initial estimates.

"For goodness sakes, of course the employees and the retirees like it, it's free," says Republican State Sen. Dave Lewis.

He wonders what that free price tag is actually costing the state government as well as the wider Helena community.

"If they're taking money out of the hospital's pocket, the hospital's raising the price on other things to offset that," Lewis says.

He and others faulted then-Gov. Brian Schweitzer for moving ahead with the clinic last year without approval of the state legislature, although it was not needed.

Now, Lewis is a retired state employee himself. He says, personally, he does like going there, too.

"They're wonderful people, they do a great job, but as a legislator, I wonder how in the heck we can pay for it very long," Lewis says.

Lower Costs For Employees And Montana

The state contracts with a private company to run the facility and pays for everything — wages of the staff, total costs of all the visits. Those are all new expenses, and they all come from the budget for state employee healthcare.

Even so, division manager Russ Hill says it's actually costing the state $1,500,000 less for healthcare than before the clinic opened.

"Because there's no markup, our cost per visit is lower than in a private fee-for-service environment," Hill says.

Physicians are paid by the hour, not by the number of procedures they prescribe like many in the private sector. The state is able to buy supplies at lower prices.

Is The Way To Tech Workers' Loyalty Through Their Stomachs?

Ari Dvorin was hired in May as the first corporate chef at SpareFoot, a startup in Austin, Texas. Here, Dvorin cuts suckling pig for a mockumentary SpareFoot made.

Jenny Zhang/Courtesy of SpareFoot Ari Dvorin was hired in May as the first corporate chef at SpareFoot, a startup in Austin, Texas. Here, Dvorin cuts suckling pig for a mockumentary SpareFoot made. Ari Dvorin was hired in May as the first corporate chef at SpareFoot, a startup in Austin, Texas. Here, Dvorin cuts suckling pig for a mockumentary SpareFoot made.

Jenny Zhang/Courtesy of SpareFoot

The dazzling array of food options at the Googleplex campus in Mountain View, Calif. — 25 cafes at last count — is the much-cited example of tech world food perks. And you can peruse the menus at Airbnb and Facebook to get a taste of an equally high bar for not just free food, but worldly food that is designed to delight and fuel employees to work better and harder.

The envy-inducing dishes Facebook's culinary team recently served up include hazelnut peach cheesecake and house-smoked buffalo quail with buttermilk blue cheese. Over at Zynga, employees are spoiled with pickles, yogurt, beef jerky, beer, kombucha and bread — all house made. That's just the tip of the spread prepared by executive chef Matthew DuTrumble and team.

J Sider, founder and CEO of BandPage, a music platform startup in San Francisco, says that when people come for an interview he shows them the BandPage food program and introduces them to corporate chef Callie Waldman. "They walk in the office, which is pretty open, and they can see and smell her foods being made," Sider tells The Salt. "Sometimes she'll put out fresh cookies or granola bars."

The corporate chef trend may have started in California, but it's now spreading to other cities with startups that are competing with each other for engineers, product developers and sales mavens. They're going way beyond fresh doughnuts, as Grub Street's recent list of the best food and drink perks at New York startups shows.

Take SpareFoot, a fast-growing company in Austin, Texas, that's an online marketplace for consumers to find and reserve self-storage units.

"I had heard about Silicon Valley companies having chefs, yes, but more recently many Austin tech startups were doing it, too," Chuck Gordon, founder and CEO of SpareFoot, tells The Salt in an email. "I got a chance to check some of those out and figured we could probably pull off something pretty great at SpareFoot."

In May, after several months of searching, SpareFoot hired Ari Dvorin, who had been the head chef at Facebook's Austin office and also ran his own catering company. Before Dvorin came on board, SpareFoot's 90 employees could count on the company to buy tacos on Mondays and keep a snack shelf fully stocked. But otherwise, it was basically "fend for yourself," says Dvorin.

Rachel Greenfield, a marketing manager who's been with SpareFoot for 2 1/2 years, says she used to go out for lunch, but got burned out on the nearby options. Now that Dvorin cooks lunch every day for her and her colleagues, Greenfield says, "lunch has become a fun social moment, a gathering space with a lot of intermingling. It reminds me of school lunch, except that we're all beyond the clique part. People don't linger too long — they want to get back to work, so it's very time-efficient for us."

One of Dvorin's salads, which he prepares daily for SpareFoot's 90 employees.

Jenny Zhang/Courtesy of SpareFoot One of Dvorin's salads, which he prepares daily for SpareFoot's 90 employees. One of Dvorin's salads, which he prepares daily for SpareFoot's 90 employees.

Jenny Zhang/Courtesy of SpareFoot

When SpareFoot moved into its current space, it had no need for a chef or a kitchen. So Dvorin has to cook the lunch early in the morning at a kitchen he rents across town and transports it to the office, where he has a small space with an oven to finish cooking.

It's tough work to get the timing right, especially since the menu changes every day for two months, he says. But he far prefers it to working in a restaurant, where "the menu was the same and you are stuck working in a 4-by-4 foot area."

Like a lot of tech startup chefs, Dvorin is big on themes. On Monday, he serves comfort food, then it's Taco Tuesday and International Wednesday. And every day there are fresh salads and vegetarian options. "Everyone is so appreciative of the food and dining experience," he says.

That's exactly what the CEOs hope to get out of investing in a chef who caters directly to employees. According to Sider of BandPage, food programs drive a lot of value to tech companies.

"What we've seen is that it's certainly worth the cost; the chef and the food program yield productivity, stronger culture, stronger community," he says. "We can really see the benefits." Eating together every day, he says, is a team building exercise: "Instead of doing trust falls we have a chef."

Young chefs coming out of the top culinary schools also seem to be drawn to these new opportunities, according to Jan Smith, spokeswoman for the Culinary Institute of America. "We have had a steady flow of externs at Google, and ... at least one grad who worked at Facebook," she says.

Waldman, the chef at BandPage, says working for a competitive tech company creates unique challenges.

"It's really important to me that I'm able to cook a variety of meals so that the employees don't feel as if they're eating at the same restaurant every day," she says. "The challenge ... of constant innovation feeds my creative side and keeps things interesting for everyone, myself included." Recently, that meant playing around with variations on Taco Tuesday: Japanese sushi tacos and Indian-style tikka masala tacos.

And, Waldman adds, it's a lot more rewarding to cook for colleagues whom you know and respect.

"I couldn't imagine switching to the restaurant industry, cooking from the same menu every day where meals go through the double doors having no idea who's on the other side."


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Regulators Near Settlement With JPMorgan Chase

Federal regulators are close to announcing a settlement with JPMorgan Chase. The bank was accused of manipulating prices in the U.S. energy market. It's not yet clear whether JPMorgan will be forced to admit wrongdoing.

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RENEE MONTAGNE, HOST:

Now this morning, the Federal Energy Regulatory Commission announced a historic settlement with JPMorgan Chase. The government says a subsidiary of the bank manipulated energy markets in California and the Midwest. As a result, the government says JPMorgan made sizable profits that were improper. The company neither admits nor denies the alleged violations but has agreed to pay more than 400 million dollars.

NPR's Wendy Kaufman has more.

WENDY KAUFMAN, BYLINE: Federal regulators say JPMorgan used 12 different manipulative bidding strategies to unfairly inflate the price the company received for electricity from its power plants.

Nancy Saracino is general counsel for the California Independent System Operator which runs California's energy grid. She says in one scheme JPMorgan would offer very cheap prices for its energy during late night hours.

NANCY SARACINO: So our market would say, great, let's use those units to generate electricity. And then after midnight, the price would all of a sudden skyrocket up 1,000 times the price and so our market would say, hey, wait, we no longer want your units, please stop generating, but because these are old power plants that take a long time to slow down and we would be stuck paying them for that time.

KAUFMAN: As a result of today's settlement, $124 million will be returned to California rate payers. Saracino calls it a vindication for them and for market participants who play by the rules. A million dollars will be returned to Midwestern rate payers and the penalty, $285 million will go to the U.S. Treasury.

Wendy Kaufman, NPR News.

Copyright © 2013 NPR. All rights reserved. No quotes from the materials contained herein may be used in any media without attribution to NPR. This transcript is provided for personal, noncommercial use only, pursuant to our Terms of Use. Any other use requires NPR's prior permission. Visit our permissions page for further information.

NPR transcripts are created on a rush deadline by a contractor for NPR, and accuracy and availability may vary. This text may not be in its final form and may be updated or revised in the future. Please be aware that the authoritative record of NPR's programming is the audio.


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White House Proposes Major Changes To Corporate Tax Code

President Obama traveled to Tennessee on Tuesday, another event in his recent push to emphasize jobs and the economy.

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AUDIE CORNISH, HOST:

President Obama's economic road trip took him to Chattanooga, Tennessee, today. He visited an Amazon warehouse just after the Internet retailing giant announced that it's adding more than 5,000 jobs. The president spoke of employment as a source of pride and dignity.

PRESIDENT BARACK OBAMA: It's proof that you're doing the right things and meeting your responsibilities and contributing to the fabric of your community and helping to build the country. That's what a job is all about.

CORNISH: The White House also used today's event to roll out a proposal to change the corporate tax code. President Obama said it will help create middle-class jobs. NPR's Ari Shapiro was traveling with the president and joins us now. And, Ari, what exactly is being proposed here? And is there anything in it to attract Republicans?

ARI SHAPIRO, BYLINE: The president says the fact that he wants to lower corporate tax rate should attract Republican interest. Right now, the standard rate is 35 percent. He wants to bring it down to 28 percent with an even lower tax rate for manufacturers of 25 percent. Right now, some companies use loopholes to pay almost no taxes. And the president wants to eliminate some of those loopholes so there would be more tax revenue even with the lower rates.

Republicans are not crazy about the revenue part of this plan. They like the lower rates. But they also don't want other family-owned businesses that pay taxes as individuals to pay a higher tax rate.

CORNISH: And what about his own party? What's in this for Democrats?

SHAPIRO: Well, President Obama wants to impose fees on overseas profits. He says that'll encourage U.S. companies to create jobs here at home. And then the president wants to use the new revenue from closing loopholes and those fees to repair roads and bridges, to improve community colleges and fund other kinds of spending that he says will help build a strong economic foundation for the country. Here's how he put it in Chattanooga.

OBAMA: I'm willing to work with Republicans on reforming our corporate tax code as long as we use the money from transitioning to a simpler tax system for a significant investment in creating middle-class jobs. That's the deal.

(APPLAUSE)

CORNISH: That's the deal, the president says.

(LAUGHTER)

CORNISH: What's the reaction so far from the Republican side?

SHAPIRO: The reaction from Republicans is no deal. A spokesman for House Speaker John Boehner said that the so-called grand bargain is neither grand nor a bargain. Republicans...

CORNISH: And I believe we just lost Ari. Oh, Ari, are you there?

SHAPIRO: I'm here on the phone. The Republicans say...

CORNISH: OK.

SHAPIRO: ...it's a mistake to change the corporate tax code without lowering individual tax rate at the same time. They also opposed government spending or stimulus to boost the economy.

And then finally, this morning, Speaker John Boehner's office said the fact that President Obama began by leaking the details of his plan to the media shows that he's not serious about negotiating. But then on Air Force One, Press Secretary Jay Carney told us that the White House legislative director actually called Boehner's office yesterday, but Boehner's chief of staff did not return the call.

CORNISH: Finally, Ari, this is President Obama's fourth economic speech in less than a week. You've heard them all. What you hear, you know, judge how it's going so far.

SHAPIRO: You know, we keep asking the White House how they'll judge success. And the answer is a little bit murky. Aides say they want to re-center the debate in Washington on helping the middle class and boosting the economy.

And strictly speaking, it's true that every time President Obama gives one of these speeches, Republicans engage in the debate. But so far, that debate doesn't seem to be very productive. The president makes suggestions, Republicans dismiss them as old news or unhelpful. That said, this is just the first week of this approach and a lot of this may be a buildup to a series of fiscal showdowns in the fall. It could be that the real test of whether these speeches work is whether those showdowns go the way the White House wants or whether Republicans are able to get some significant concessions from the White House on spending and deficits.

CORNISH: That's NPR's Ari Shapiro. He is traveling with President Obama. Ari, thanks for getting on the line with us.

(LAUGHTER)

SHAPIRO: No problem, Audie.

(SOUNDBITE OF MUSIC)

CORNISH: You're listening to ALL THINGS CONSIDERED from NPR News.

Copyright © 2013 NPR. All rights reserved. No quotes from the materials contained herein may be used in any media without attribution to NPR. This transcript is provided for personal, noncommercial use only, pursuant to our Terms of Use. Any other use requires NPR's prior permission. Visit our permissions page for further information.

NPR transcripts are created on a rush deadline by a contractor for NPR, and accuracy and availability may vary. This text may not be in its final form and may be updated or revised in the future. Please be aware that the authoritative record of NPR's programming is the audio.


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Legal Battles Over Land Rights, Pipelines Are On The Rise

The Crosstex NGL Pipeline is just one such project in the country that has forced long, unwanted legal battles between oil companies and landowners.

Mose Buchele/KUT The Crosstex NGL Pipeline is just one such project in the country that has forced long, unwanted legal battles between oil companies and landowners. The Crosstex NGL Pipeline is just one such project in the country that has forced long, unwanted legal battles between oil companies and landowners.

Mose Buchele/KUT

At Margaret O'Keefe's farm in East Texas, they grow high-quality Bermuda grass. The fields are flat and vibrant green, surrounded by woods of a darker, richer green. The family loves this land. O'Keefe inherited it from her mother, who divided it among eight children.

"She used to call it 'enchanted valley,' " O'Keefe says.

But her "enchanted valley" also lies in the path of the Crosstex NGL Pipeline.

That's a 130-mile underground pipeline to funnel natural gas liquids from Texas to processing plants in Louisiana. There, the component gasses like ethane and propane will be separated out and sold. The project is well underway. Crews are preparing to bore under her neighbor's field to bury the pipe underground.

Laying pipeline is a scene that's playing out all over the country. As the drilling method known as "fracking" unleashes vast amounts of fossil fuel, pipeline companies are scrambling to bring it to refineries. The industry estimates that the United States will need to add 2,000 miles of pipeline per year — and that's just natural gas. Oil will need its own infrastructure. That means there will be a lot of pipeline going through a lot of private land.

Usually the companies cut a deal with landowners, but in a growing number of cases, the decisions are being made in a courtroom, not around the kitchen table.

Back at O'Keefe's kitchen table, Margaret's brother Dick explains that the family didn't like how they were being treated by representatives from the pipeline.

"We, as small landowners, we can't afford to fight this pipeline company," he says.

So they said no deal to selling their land. And the company's response?

"They turned it over to the lawyers," Dick says. "Got a nice, fat packet in the mail. It said, 'We'll see you in court.' "

Crosstex didn't respond to an interview request. But court records confirm the company did start legal proceedings against the O'Keefes. In many states, companies have the right to use eminent domain. That refers to the power to have private land "condemned," forcing the owners to sell it.

The process involves sometimes drawn-out court battles across the country. And the legal profession loves it, says William Christian, an Austin-based lawyer who represents landowners.

"Pipelines are going up everywhere, and that leads to a lot of condemnation cases," he says.

But Don Santa, head of the Interstate Natural Gas Association of America, says he thinks that isn't great news for the industry.

"It takes resources," Santa says. "It is time-consuming, but again it has always been part of the process."

So if landowners don't want lawsuits, and companies aren't crazy about them, why do they happen? For one thing, environmentalists who oppose fossil fuels fight the pipelines carrying them. And second, Christian says, the industry is changing, too.

"It seems to be a trend that a lot of landowners who've owned land for a long time and negotiated these easements over a long period of time in recent years have felt like the pipeline companies have gotten more aggressive in the way they've negotiated these easements," Christian says.

U.S. oil production has increased 30 percent in the past five years, and natural gas is booming. As long as that trend continues, Christian sees no end to these disputes.

And this litigation — or at least the threat of it — was enough to convince the O'Keefe's to settle, Dick O'Keefe says

"But it was with the threat of going to court," he says. "They beat us over the head with the threat, to get us to settle up."

He says the family simply didn't want the long legal headache.

Mose Buchele is a reporter for StateImpact Texas. StateImpact is a collaboration between NPR member stations examining the effect of state policy on people's lives.


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China banks could see bad loans rise in 2013-industry body

BEIJING (Reuters): Bad loans at Chinese banks could rise by between 70 billion yuan and 100 billion yuan ($11 billion and $16 billion) in 2013 due in part to delinquency risks from industries plagued by overcapacity, the China Banking Association said in an annual report on the industry.

The report comes several days after Beijing began a new campaign to reduce overcapacity in several industries, a step seen as key to eventually rebalancing China's economic structure. It warned that steel, photovoltaic and shipping sectors may be at the forefront of a new crop of bad loans.

"Such industries facing excessive capacity could lift non-performing loans and require highest attention from banks in their short-term risk control," the industry body said in the report, published on its website late on Tuesday.

Remedying overcapacity could bring some pain to banks, who have historically focused their lending on such sectors.

Total bad loans stood at 526.5 billion yuan at the end of Q1, slightly up from the 492.9 billion yuan at the end of 2012, according to separate figures from the banking regulator.

Earlier this month China's central bank removed controls on bank lending rates, giving banks the freedom to compete for borrowers. Many economists say this will help banks to learn to better price risk and force them to allocate capital more efficiently.

Bank lending is a focal point in China's monetary policy as it is controlled by the ruling Communist Party as a way to manage economic growth and inflation. The government tells banks how much to lend, to who and when.

The association's report said the ratio of non-performing loans to total lending will largely remain at the similar level with 2012, due to a rise in overall lending.

The average bad loan ratio in China's banking system was 0.96 percent at the end of the first quarter of 2013, up slightly from 0.95 percent at the end of 2012.

The report also said that what happens to lending to the property sector and local government financing vehicles will be key to determining the banking sector's long-term asset quality, though it did not elaborate.

Concerns have been raised about the potential for systemic risk from piles of debts collected by local governments and from a possible property bubble, prompting the central government to order a nationwide audit of local debt.

The report also said that shrinking net interest margins and a slowing development of fee-based businesses will dampen profit growth for banks in 2013, but also flagged optimistic signs, noting that China's urbanisation drive and efforts to expand domestic consumption will mean business opportunities.


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Accenture, Which Employs 266,000 People, In Talks To Acquire Rival Booz & Co

Published: Wednesday July 31, 2013 MYT 2:08:00 PM
Updated: Wednesday July 31, 2013 MYT 2:12:51 PM

NEW YORK: Management consulting firm Accenture Plc is in talks to acquire rival Booz & Co, a deal that would beef up its strategy and operations consulting services, the Wall Street Journal reported on Tuesday, citing people familiar with the matter.

Acquisition-hungry Accenture has this year announced it would be acquiring London-based global service design consultancy Fjord and digital marketing company Acquity Group as well as Mortgage Cadence, a loan origination software company.

Representatives for Accenture were not available for comment after normal business hours. A spokeswoman for Booz & Co said the firm does not address market or media speculation pertaining to it.

Accenture has about 266,000 employees worldwide and net revenues of $27.9 billion for the fiscal year ended August 31, 2012, the company's website said.

Booz & Co has over 3,000 employees globally, according to information on the company's website. It ended discussions of a possible merger with A.T. Kearney, another management consulting firm, in July 2010.

Accenture cut its full-year outlook last month, citing a pullback in spending by its consulting business clients, after reporting third-quarter revenue below analysts' estimates.- Reuters


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