A report issued Sept. 10 by the Virginia Hospital & Healthcare Association found that hospitals and health systems contributed $34.8 billion to the economy and directly and indirectly supported 913,636 jobs in 2012. Among its other findings:

• In 45 percent of Virginia cities and counties, hospitals and health systems are among the top three employers, while in 60 percent they are among the top five.
• Virginia hospitals accounted for $200 million in state and local taxes in 2012.
• The total value of community support provided by Virginia’s hospitals and health systems exceeded $2.6 billion in 2012. Virginia hospitals provided over $600 million in charity care during the same period.

But VHHA President and CEO Sean T. Connaughton sounded the alarm. “While Virginia hospitals have made significant progress implementing many of the changes brought about by health care reform, both the short- and long-term cuts to Medicaid and Medicare reimbursements and other changes in these programs present significant financial challenges," he said. "Over the next 10 years, Virginia hospitals stand to lose $6.2 billion in Medicaid and Medicare reimbursements alone. Additionally, while Virginia hospitals and medical schools have made great strides in increasing enrollment, a lack of clinical training opportunities and residency slots will continue to present long-term workforce challenges as Virginia’s population ages."

Two reports put Virginia's plight alongside that of many other states: The American Hospital Association released a report detailing “The Financial State of U.S. Hospitals." And the Robert Wood Johnson Foundation and the Urban Institute released an analysis in August 2014 projecting the effect on the 24 states that have not expanded Medicaid.

A court in China today found GlaxoSmithKline guilty of bribery. The company was fined the equivalent of $489 million, and the former head of GSK's Chinese operations Mark Reilly received a suspended three-year jail sentence. "The illegal activities of GSKCI are a clear breach of GSK’s governance and compliance procedures; and are wholly contrary to the values and standards expected from GSK employees," said the company, which has taken steps to rectify the issues identified at the Chinese operations of GSK China Investment Co. Ltd (GSKCI). The company has published a statement of apology to the Chinese government and its people on its website (www.gsk-china.com).

"Reaching a conclusion in the investigation of our Chinese business is important, but this has been a deeply disappointing matter for GSK," said GSK CEO Sir Andrew Witty (pictured). "We have and will continue to learn from this. GSK has been in China for close to a hundred years and we remain fully committed to the country and its people. We will continue to expand access to innovative medicines and vaccines to improve their health and well-being. We will also continue to invest directly in the country to support the government's health care reform agenda and long-term plans for economic growth."

WalletHub has released an in-depth analysis of the rates at which S&P 100 companies are taxed at the state, federal and international levels, based on 2013 tax data. Among its findings:

• S&P 100 companies pay roughly 22 percent lower rates on international taxes than U.S. taxes.
• The overall tax rate that S&P 100 companies pay has increased by 5.3 percent since 2012; the biggest contributor to this increase was the state tax rate, which has gone up by 24 percent since 2012.
• Amgen (3.5 percent), AIG (3.8 percent), General Electric (4.2 percent) and Abbott Laboratories (5.5 percent) pay among the lowest rates.

Also in late August, an affiliate of Cottonwood Properties announced it will be constructing and leasing a 60,000-sq.-ft. distribution facility near Tucson, Ariz., for Ventana Medical Systems, Inc., a member of the Roche Group. The new facility is located in Tangerine Commerce Park, and is the first development within the 100-acre business park in Mariana. Bill Di Vito and Jesse Blum with CBRE’s Tucson office represented Cottonwood in the transaction. Ventana was represented by Dev Gupta with DTZ.

“The Tangerine Corridor is an ideal location for this type of development,” said CBRE’s Di Vito. “Freeway access and the availability of larger commercial parcels will attract other logistics and employment users to the area, establishing it as the next major commercial hub in greater Tucson.”

Ventana Medical Systems, Inc., headquartered at Innovation Park in nearby Oro Valley, Ariz., is a member of the Roche Group and is a world leader and innovator of tissue-based cancer diagnostic solutions for patients worldwide. The new facility will function as a multi-use distribution facility with some assembly to support its facility in Oro Valley (pictured).

Cargill will bring the majority of its North American food and ingredient research staff together in a $5.5-million expansion of its Food Innovation Center in Plymouth, Minn., which doubles the square footage of the facility from 20,000 to 40,000. “We wanted to find the best way to satisfy the product research and development needs of our customers in food and beverage manufacturing and the food service industry,” said Kerr Dow, Cargill vice president of global food technology. “So, we designed a facility we believe will promote collaboration, accelerate innovation and help our customers reduce product development cycles.”

Cargill’s Food Innovation Center is the company’s primary R&D facility serving food and beverage manufacturers and food service customers in North America. It is part of Cargill’s network of Global Cargill Innovation Centers, including the European and Latin American Food Innovation Centers. In the past few years, Cargill opened innovation centers in Campinas, Brazil; Wichita, Kan.; and New Delhi, India; and has expanded its European Research and Development Center in Vilvoorde, Belgium.

Hospital system LCMC Health announced this week an investment of $100,000 in the New Orleans Business Alliance (NOLABA) to support the further development of the New Orleans Bioinnovation and Health Services cluster.

“With University Medical Center coming on line in 2015, LCMC has a vested interest in the biomedical corridor and its development," said Greg Feirn, CEO of LCMC Health. The New Orleans biomedical corridor encompasses 1,500 acres spanning the Downtown and Mid-City areas of New Orleans, and will be anchored by University Medical Center and Southeast Louisiana Veterans Health Care System currently under construction.

“In 2010, we launched the New Orleans Business Alliance as a public-private partnership, charged with leading a coordinated economic development effort for our city,” said Mayor Mitch Landrieu. “With a 9.6-percent increase in sales tax and new businesses from all over the world locating to New Orleans, we have proof that we get more done when we work together."

Hospital system LCMC Health announced this week an investment of $100,000 in the New Orleans Business Alliance (NOLABA) to support the further development of the New Orleans Bioinnovation and Health Services cluster.

“With University Medical Center coming on line in 2015, LCMC has a vested interest in the biomedical corridor and its development," said Greg Feirn, CEO of LCMC Health. The New Orleans biomedical corridor encompasses 1,500 acres spanning the Downtown and Mid-City areas of New Orleans, and will be anchored by University Medical Center and Southeast Louisiana Veterans Health Care System currently under construction.

“In 2010, we launched the New Orleans Business Alliance as a public-private partnership, charged with leading a coordinated economic development effort for our city,” said Mayor Mitch Landrieu. “With a 9.6-percent increase in sales tax and new businesses from all over the world locating to New Orleans, we have proof that we get more done when we work together."