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Newhouse School at Syracuse University gets $75M donation
SYRACUSE — Syracuse University’s S.I. Newhouse School of Public Communications will benefit from a $75 million donation, representing “the largest gift in the university’s 150-year history.” The Samuel I. Newhouse Foundation on Jan. 13 announced its plan to make the donation. Donald Newhouse, who graduated from Syracuse in 1951, made the announcement at an event at […]
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SYRACUSE — Syracuse University’s S.I. Newhouse School of Public Communications will benefit from a $75 million donation, representing “the largest gift in the university’s 150-year history.”
The Samuel I. Newhouse Foundation on Jan. 13 announced its plan to make the donation.
Donald Newhouse, who graduated from Syracuse in 1951, made the announcement at an event at the Newhouse School on the Syracuse campus.
The gift, which would be “one of the largest ever to any communications school,” will support multiple academic initiatives, under the leadership of the school’s next dean.
It expands the visions of the school’s two most recent leaders, Syracuse said. David Rubin, who retired in 2008 after 18 years as dean, and Lorraine Branham, who died of cancer last year after nearly 11 years as dean. A national search for the next dean is underway, with the goal of having a new leader in place by July 1 of this year, the start of the new fiscal year.
“I have great confidence that the search committee will find an outstanding successor to David and Lorraine,” Newhouse said. “In this era in which public communications is undergoing continual and radical change, my family and I expect to continue our long-term commitment to ensure that the school my Dad helped found almost 60 years ago remains the leading communications school in the world for another generation.”
Donald Newhouse is an honorary trustee of Syracuse University. His son, Michael, is a voting trustee.

The Newhouse School is named for Donald Newhouse’s late father, Samuel I. Newhouse, who founded Advance Publications in 1922. His initial gift of $15 million in 1962 — the largest gift in University history at that time — supported the construction of the first of the school’s three buildings, Newhouse 1, which was dedicated in 1964 by President Lyndon B. Johnson. The second building, Newhouse 2, was dedicated in 1974 by William Paley, chairman of the board of CBS.
With support from the Newhouse Foundation, the third building, Newhouse 3, was dedicated in 2007 by Chief Justice of the United States John Roberts.
Donald Newhouse and his late brother, S.I. Newhouse Jr., were present at all three dedication ceremonies, Syracuse said.

CathBuddy made best investor pitch in Medical Device Innovation Challenge
SYRACUSE — The judges chose CathBuddy Inc. of Woodbury on Long Island as the winner of the Jan. 10 pitch event in the Medical Device Innovation Challenge. The pitch event was held at the CNY Biotech Accelerator at Upstate Medical University, located at 841 E. Fayette St. in Syracuse. The CNY Biotech Accelerator sponsors the
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SYRACUSE — The judges chose CathBuddy Inc. of Woodbury on Long Island as the winner of the Jan. 10 pitch event in the Medical Device Innovation Challenge.
The pitch event was held at the CNY Biotech Accelerator at Upstate Medical University, located at 841 E. Fayette St. in Syracuse. The CNY Biotech Accelerator sponsors the competition.
CathBuddy didn’t win any funding for its successful presentation but walked away knowing the firm’s investor pitch “is solid,” Darryl Geddes, director of public and media relations at Upstate Medical University, tells CNYBJ.
CathBuddy was among six medical-device startup companies making their product pitches at the Medical Device Innovation Challenge.
A panel of judges assessed how well the startups highlight consumer need, product benefit, potential market, and other issues.
The startups are developing such products as a breast pump, breath-powered video controller, and a shoulder-mounted portable IV system. Below is a listing and description of each of these companies.
Participants and products
• CathBuddy Inc., of Woodbury on Long Island, is making reusable urinary intermittent catheters system for people with a neurogenic bladder — or the loss of bladder control due to brain or spinal cord or nerve problem.
• Halamine Inc., of Ithaca, is working to develop a new category of “hydrogel skin” coated urinary catheters with improved infection control.
• Liberation Lactation, of Syracuse, is developing a breast pump that women can use while involved in daily activities, whether at the workplace or at home. The product’s goal is to “eliminate the time women must spend solely on pumping.”
• ZephyRx, of Albany, designs breath-powered video-game controllers so popular video games can be used in respiratory therapy for conditions that include pneumonia, asthma, and chronic obstructive pulmonary disease (COPD).
• MedUX, of Syracuse, is creating a shoulder-mounted portable IV system (called L-IV, for Liberating Intravenous) that allows people in hospital settings or disaster situations to get IV treatment “comfortably and efficiently” without being tethered to an IV pole.
• Revital Therapeutics, of New Jersey, is a tissue engineering company that works at creating off-the-shelf tissue grafts for a wide range of conditions and surgical procedures.

Upstate Community Hospital to gradually open new patient unit
ONONDAGA — Upstate Community Hospital has started using a portion of a 24-bed unit following a $2.8 million renovation project. The hospital announced plans to hire an additional 60 people to staff the unit when it’s fully operational later this year. The hospital is recruiting, hiring, and training staff for the new unit. “The process
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ONONDAGA — Upstate Community Hospital has started using a portion of a 24-bed unit following a $2.8 million renovation project.
The hospital announced plans to hire an additional 60 people to staff the unit when it’s fully operational later this year. The hospital is recruiting, hiring, and training staff for the new unit.
“The process is ongoing … We still have about 40 more people to hire [as of Jan. 13],” says JoAnn Featherstone, associate director of nursing at Upstate Community Hospital.
Gradual opening
The new space opened with a few beds made available on Jan. 9.
“Given the community need for inpatient beds to support our area, there’s an ongoing increase in patients that are being admitted. This addition of beds is to support that community need,” says Featherstone, who spoke with CNYBJ on Jan. 13.
The 24 new beds are for patients who have had surgery at Upstate or need to be admitted to the hospital. As more staff come on board, additional beds will be opened. Six beds will open in the first stage.
“It’s going to be a rolling open. As our staffing increases, our bed capacity will increase,” says Featherstone.
The unit should be fully operational later in the year, she notes.
Renovations to the western wing of the fourth floor (4 West) of Upstate Community Hospital started last summer. The project cost totaled $2.8 million, which included $200,000 for design, $1.6 million for construction, and $1 million for new equipment.
Upstate’s in-house construction team handled the work.
The renovation of 4 West included all new paint, lighting, cabinetry, beds and furnishings. Patient bathrooms were renovated and spaces for staff were freshened. Upstate Community Hospital began planning the project in August 2017.
“It was more of a makeover,” Featherstone says.
That section of the fourth floor was originally designed for patient rooms but had been converted into office space when it was still operating as Community General Hospital. The rooms remained offices after SUNY Upstate Medical University acquired Community General in 2011. About 45 Upstate staff working in those spaces were moved to other locations throughout the building to accommodate the renovations.

Auburn OB-GYN and her practice join St. Joseph’s Health
AUBURN — Women’s Health Specialists of Auburn is now operating under the St. Joseph’s Health brand. The Syracuse–based St. Joseph’s Health tells CNYBJ that Dr. Eileen Murphy, who operated the practice, has joined St. Joseph’s Health women’s health services. Murphy is an Auburn physician specializing in obstetrics and gynecology. She will continue to serve patients
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AUBURN — Women’s Health Specialists of Auburn is now operating under the St. Joseph’s Health brand.
The Syracuse–based St. Joseph’s Health tells CNYBJ that Dr. Eileen Murphy, who operated the practice, has joined St. Joseph’s Health women’s health services.
Murphy is an Auburn physician specializing in obstetrics and gynecology. She will continue to serve patients in Auburn, and St. Joseph’s Health views the hire as an expansion into the Auburn market.
Murphy has a physician assistant working with her, so the practice has two providers. The office also includes a practice manager, two front-office receptionists, two registered nurses, and one licensed practical nurse, St. Joseph’s Health adds in an email.
Murphy is a board-certified obstetrician and gynecologist and obesity medicine specialist with more than 30 years of experience in women’s health. She specializes in gynecologic services that include menopause and osteoporosis management as well as female urology services.
Murphy also has expertise in weight-loss services, including nutritional and wellness counseling.
St. Joseph’s Health women’s health services involves “all the services a woman may need throughout her life [in] one all-inclusive system.” Health services such as breast care, obstetrics, gynecology and neonatal care are available, St. Joseph’s Health said.

Crouse Health using AI software for stroke care
SYRACUSE — Crouse Health announced it is using a computer-aided triage system in its stroke-care services. A company called Viz.ai is providing the system. Viz.ai has offices in San Francisco, California and Tel Aviv, Israel. The firm says it focuses on using applied artificial intelligence (AI) software in health care to “reduce time to treatment
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SYRACUSE — Crouse Health announced it is using a computer-aided triage system in its stroke-care services.
A company called Viz.ai is providing the system. Viz.ai has offices in San Francisco, California and Tel Aviv, Israel. The firm says it focuses on using applied artificial intelligence (AI) software in health care to “reduce time to treatment and improve patient outcomes,” per a Crouse Health news release.
Crouse didn’t disclose any financial terms of its agreement with Viz.ai.
How it works
When a patient is transported to the Crouse Hospital emergency room with a suspected stroke, staff take CT scans “immediately” to “aid in an accurate” diagnosis. The cloud-based Viz.ai software analyzes the images automatically to detect a large vessel occlusion (LVO) stroke and then securely transmits those images to the appropriate Crouse medical staff “in real time.”
“In most hospitals, the CT scan process typically takes 30 to 60 minutes,” Jameson Crumb, clinical director of Crouse Neuroscience Institute, said. “This software cuts that timeframe in half, allowing us to move that patient toward the best individualized treatment plan much quicker and in a more synchronized fashion.”
Stroke is the fifth-leading cause of death in the U.S. as well as a major cause of permanent disability, Crouse Health said. The key to effective diagnosis and treatment is “reducing the length of time” between onset of symptoms and medical intervention.
“Crouse Neurosciences continues its commitment to bring the latest and most advanced innovations to our region to benefit patients suffering an acute stroke,” Dr. Seth Kronenberg, COO and chief medical officer, said. “We are proud to bring transformational technologies, such as Viz.ai, to Central New York.”
Crouse said it is now one of 300 hospitals using the Viz.ai product nationwide and one of just four in New York using the applied artificial intelligence-based technology.
The others using the Viz.ai product in the state are Kaleida Health in Buffalo; Mount Sinai Health System and Montefiore Medical Center, the University Hospital for Albert Einstein College of Medicine, both in New York City; and South Nassau Communities Hospital in Oceanside, per the Crouse release.
“Time is brain”
Public-health campaigns have been communicating for years that “time is brain,” Crouse Health noted.
When a stroke occurs, the flow of oxygen-rich blood to a portion of the brain is blocked. The average patient loses nearly two million brain cells for each minute a stroke is untreated. Dr. David Padalino, medical director for neurovascular surgery, said this deterioration is what contributes to disability or death.
However, if the stroke is identified early, several medical treatments and interventions are available to help slow down or even halt this process and allow the stressed brain to recover. Better outcomes have been shown to correlate with how quickly these treatments can be initiated, and every minute counts.
New York grain-corn production declined in 2019
New York farms produced 86.1 million bushels of corn for grain last year, down 11.9 percent from 97.8 million bushels in 2018, according to the Jan. 10 Northeast Crop Production Report from the USDA National Agricultural Statistics Service. New York farms harvested an estimated 545,000 acres of corn for grain in 2019, down more than 11
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New York farms produced 86.1 million bushels of corn for grain last year, down 11.9 percent from 97.8 million bushels in 2018, according to the Jan. 10 Northeast Crop Production Report from the USDA National Agricultural Statistics Service.
New York farms harvested an estimated 545,000 acres of corn for grain in 2019, down more than 11 percent from 615,000 acres in the previous year..
The total yield per acre in the Empire State was 158 bushels of corn last year, down 0.6 percent from 159 bushels in 2018.
In neighboring Pennsylvania, production of corn for grain increased 30 percent to 162.2 million bushels in 2019 from 124.6 million bushels in the prior year, the USDA reported.
Nationally, U.S. farms produced 13.7 billion bushels of corn for grain last year, down 4.5 percent from 14.3 billion bushels in 2018, according to the USDA.
Top Digital Health Trends for 2020
Last November, we saw the rollout of the latest upgrades to Amazon’s Echo speaker line: earbuds, glasses, and a ring that connect to Amazon’s personal assistant Alexa. These new products are just three examples of a growing trend to incorporate technology seamlessly into our human experience, representing the ever-expanding frontiers for technology that have moved
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Last November, we saw the rollout of the latest upgrades to Amazon’s Echo speaker line: earbuds, glasses, and a ring that connect to Amazon’s personal assistant Alexa. These new products are just three examples of a growing trend to incorporate technology seamlessly into our human experience, representing the ever-expanding frontiers for technology that have moved far past the smartphone.
These trends and others are going to make a big impact in the health-care space, especially as providers, payers, and consumers alike slowly but surely recognize the need to incorporate tech into their workflows to meet the growing consumer demand for digital-health tools. At the same time, the data-hungry nature of these innovations is creating its own problems, driving a discussion around privacy and security that is louder and more urgent than ever.
Here are three trends to look out for this year.
Artificial Intelligence (AI) and Machine Learning are growing into themselves
It’s been quite a few years since AI has emerged from the pages of science fiction into our day-to-day reality, and health care has provided a fertile proving ground for all aspects of its innovations. From software that analyzes medical data to identify patients for clinical trials in a matter of minutes, to software that analyzes medical images to diagnose tumors in milliseconds; from chatbots that perform administrative tasks like setting up an appointment to chatbots that empathize with human emotion and manage mental anxiety; AI in digital health has evolved by leaps and bounds.
In 2020, we will continue to see AI and machine learning push boundaries, while at the same time mature and settle into more defined patterns.
With the adoption of technologies like FaceID, facial-recognition technology will be an important player in privacy and security. It can be leveraged to simplify the security requirements that make multi-factor authentication a time-consuming process for health-care professionals — on average, doctors spend 52 hours a year just logging in to electronic health record (EHR) systems. On the patient end, this same technology has the ability to detect emotional states of patients and anticipate needs based upon them, and the success of startups like Affectiva, the brainchild of MIT graduates, shows its tremendous promise.
Meanwhile, FDA-approved innovations from Microsoft and others claim the ability of computer vision for assisting radiologists and pathologists in identifying tumors and abnormalities in the heart. While robotic primary care is a long way off, some view AI as a rival to more niche clinical positions.
Privacy and security are more important than ever
In 2019, we saw the fallout of the Cambridge Analytica scandal, as well as several new, high-profile data concerns: Amazon workers paid to listen to Alexa recordings, for example, and the transfer of non-deidentified, personal health data of more than 50 million Americans to Google.
As the current generation wakes up to the serious privacy challenges that “smart” technological efficiencies are potentially introducing, they’re educating themselves about data sharing and becoming more cautious about the information that they are potentially giving to third-party sites.
For companies that deal with special categories of sensitive data — like medical information — the stakes are much higher. In 2020, look for digital health care to establish increasingly tight security, clearly communicate privacy policies, and provide more transparency around data use.
The API economy
Interoperability is a major player in health tech innovation: patients will always receive care across multiple venues, and secure data exchange is key to providing continuity of care. Standardized application program interfaces (or APIs) — which are sets of routines, protocols, and tools for building software applications — can provide the technological foundations for data sharing, extending the functionality of EHRs and other technologies that support connected care. Platforms like Validic Inform leverage APIs to share patient-generated data from personal health devices to providers, while giving them the ability to configure data streams to identify actionable data and automate triggers.
In the upcoming year, look for major players like Apple and Google to make strides toward interoperability and breaking down data silos. Apple’s Health app already is capable of populating with information from other apps on your phone, and the company is uniquely positioned to be the driver of interoperability. It has a secure and established platform, trustworthy for the passage of encrypted data (such as patient portals), and commands a brand loyalty ubiquitous in the United States and elsewhere, not to mention pre-established relationships with the hospitals that are critical to making any true strides in that direction. It’s a position that Apple has deliberately cultivated: as smartphone innovation falls into stalemate, the company is reaching toward bigger horizons. CEO Tim Cook says improving health will be “Apple’s greatest contribution to mankind.”
These trends in digital health are not new. As with any innovations in health care, the process is slow and the cost of the payoff hotly debated, yet it is no longer a question of if, but when these innovations will start optimizing care, whether we like it or not.
Anish Sebastian is co-founder and CEO of Babyscripts, a virtual-care platform for managing obstetrics. Since the company’s inception, it has raised over $15 million and gathered the support of more than 40 health systems around the country to further its vision of a data-centric model in prenatal care.
Upstate Medical University generates $2.5 billion impact on economy, study finds
SYRACUSE — A new report finds that Upstate Medical University contributed $2.5 billion to the state and local economy and supported — both directly and indirectly — more than 18,300 jobs across New York in fiscal year 2018. Tripp Umbach, a consultancy based in Pittsburgh, Pennsylvania, conducted the study, Upstate Medical announced on Jan. 14.
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SYRACUSE — A new report finds that Upstate Medical University contributed $2.5 billion to the state and local economy and supported — both directly and indirectly — more than 18,300 jobs across New York in fiscal year 2018.
Tripp Umbach, a consultancy based in Pittsburgh, Pennsylvania, conducted the study, Upstate Medical announced on Jan. 14.
The economic-impact figure — which has grown 50 percent in a decade — includes capital improvements, Upstate expenditures, and salaries to employees who spend their income on housing and services in Central New York. Additional dollars are generated by students, patients and visitors to Upstate, the report found.
“Our mission is to serve and improve the health of this community. But as this report points out, we are also a vital player in this community’s economy — employing more people than anyone else and generating billions of dollars for the state and local economy each year,” Dr. Mantosh Dewan, interim president of Upstate Medical University, said in a statement. “Our talented, valuable employees are investing their salaries into the Central New York economy, which plays a critical role in the vitality of the region and New York state.”
In a Jan. 14 phone interview with CNYBJ, Dewan also noted Upstate Medical University’s acquisition of Community General Hospital in 2011 as a factor in its growing economic impact.
“I have to believe that that is one major factor in the 50-percent growth because that’s dramatic,” says Dewan.
He hadn’t seen the initial report that was conducted back in 2008 so a lot of the statistical findings were new to him, Dewan notes.
Some report findings
The study looked at the economic, employment, government revenue, and community impacts of Upstate.
Since 2008, Upstate’s overall economic impact increased by half, from $1.67 billion annually to $2.5 billion; employment rose 30 percent from 14,000 to 18,321; and generated government revenue grew 86 percent from $86 million to $160.4 million.
In addition, student enrollment at Upstate Medical University has grown 30 percent since 2006; Upstate directly employs 10,959 people; it supports an additional 7,362 employees through local business and employee spending; and Upstate sustains and supports 14,920 jobs in Onondaga County.
The report also found that Upstate is a considerable driver of tax revenues for the state and local governments. Tax revenues attributable to Upstate in the form of income taxes, sales taxes, real estate taxes paid was estimated to be $160 million in 2018.
“For the first time, I saw a very clear statement of overall impact, which is the $2.5 billion, but also, for the first time, I saw the contribution to the state and the local governments in terms of [tax revenues],” he says.
While acknowledging that Upstate Medical is a nonprofit that is exempt from taxes, Dewan says, “But, in fact, $160 million is significant money.”
The report also found that Upstate’s annual payroll is $625 million and that one dollar of state support to Upstate generates another $58 in the state economy.
More than 3,100 Upstate alumni practicing in New York generate $7.1 billion in economic activity, support 35,363 jobs and generate $377 million in state and local taxes.
Alumni physicians practicing nationwide generate $993.1 million in taxes annually.
Upstate’s research efforts also translate to local economic investment, the report found.
The medical school is entering its third year of near double-digit growth in annual research expenditures. Upstate’s clinical departments host more than 450 active clinical trials per year. The SUNY research expenditures of $35 million “ripple across the state economy” and generated an additional $20.7 million in indirect and induced activity.
“It supports about 477 jobs,” Dewan notes.
The growing number of Upstate graduates has created a vast network of nearly 7,900 alumni nationwide. Those licensed physicians generate more than $24.8 billion in economic activity and support or employ nearly 132,354 employees throughout the U.S.
Many Upstate programs and special services are supported by the Upstate Foundation, which manages 1,000 funds and endowments totaling close to $200 million in total assets.
The report also noted how Upstate employees give back to their communities through volunteer time and money to local causes. In fiscal year 2018, the value of that time and money contributes an additional $25 million in economic impact to the community.
“The $25 million number was completely new to me as well … which encompasses about $10 million that Upstate folks give in terms of cash to the community and then another $15 million in terms of the many thousands of hours that are donated in evenings and weekends in all kinds of community [events] that are very valuable,” says Dewan.
Report: HSA balances continue to grow gradually
But many account holders aren’t taking full advantage of HSA features Average health savings account (HSA) balances increased modestly from $1,990 in 2011 to $2,803 in 2018, according to a new report from the Washington, D.C.–based Employee Benefits Research Institute (EBRI). However, customers are not taking full advantage of account features that would allow them
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But many account holders aren’t taking full advantage of HSA features
Average health savings account (HSA) balances increased modestly from $1,990 in 2011 to $2,803 in 2018, according to a new report from the Washington, D.C.–based Employee Benefits Research Institute (EBRI). However, customers are not taking full advantage of account features that would allow them to grow larger balances to cover future medical expenses.
“Trends in Health Savings Account Balances, Contributions, Distributions, and Investments, 2011-2018: Estimates From the EBRI HSA Database” is a longitudinal study from EBRI’s HSA database, examining trends in account balances, individual and employer contributions, distributions, invested assets, and account-owner demographics. The EBRI HSA database was developed to analyze the state of and individual behavior in HSAs. It contains 9.8 million accounts with total assets of $22.8 billion as of Dec. 31, 2018.
HSAs offer a tax incentive to set aside money on a tax-favored basis for current or future medical expenses. Yet account owners often appear to be using the accounts primarily to cover current expenses, such as deductibles, coinsurance, and copayments, rather than fully taking advantage of the tax preference by contributing the maximum or maintaining HSA balances for retirement health-care expenses, the study finds. However, EBRI’s study finds this behavior changes as account owners become more experienced in managing their accounts and the amount of money in their accounts grows.
“As individuals become more familiar with HSAs, they are more likely to take advantage of the benefits of the account. Account balances are growing over time, enabling longtime account holders to withdraw larger sums when unexpected major health expenses occur and to save and invest for retirement expenses,” said Paul Fronstin, director of EBRI’s health research and education program and coauthor of the report. “Plan sponsors that value employee financial wellness can work with administrators and advisors to take a long-term view of HSA account balance growth.”
Key findings
• Modest balances: Between 2011 and 2018, end-of-year account balances increased but remained low, rising from $1,990 in 2011 to $2,803 in 2018.
• Contributions below the maximum: Average total contributions — combined individual and employer contributions — increased from $2,348 to $2,919 between 2011 and 2018. However, this average was just above the minimum allowable deductible amount for family coverage and less than one-half of the allowable contribution maximum for family coverage.
• High incidence of withdrawals: Overall, 59 percent of account holders withdrew funds. The average annual amount distributed was $1,865 in 2018, “implying an average rollover of $1,054,” per the EBRI website.
• Low use of investments: Very few account owners invested their HSA balance in investments other than cash despite the tax-saving possibilities. In 2018, 6 percent had investments other than cash. One feature of HSAs is their rollover feature, which enables account holders to build up a balance for unexpected major medical expenses in the near future and/or for retirement. So while, on average, account holders appear to be using HSAs as specialized checking accounts rather than investment accounts, “this behavior appears to change the longer an HSA owner holds an account.” In other words, longitudinal analysis shows that “the more owners have experience with HSAs, the greater the likelihood their usage becomes more investment-like” over time.
• Increased size of balance: Accounts open for one year had an average $1,018 year-end account balance, while accounts open for 10 years had an average $7,589 year-end account balance. This demonstrates that the propensity to save in an HSA increases over time.
• Larger annual contributions: Individual contributions averaged $1,166 among those accounts open for one year but averaged $3,355 among those accounts open for 10 years. In other words, annual 2018 contributions were higher the longer an account owner had an account.
• Greater use of investments: In 2018, 2 percent of accounts open for one year had investments other than cash, compared with 10 percent among those open for 10 years. It is possible that rules requiring minimum balances may have prevented owners of relatively new accounts from investing, as the accounts would not have reached the minimum balance requirement, the EBRI says. Either way, over time, account owners appear to see the value in investing their HSA balances.
Notably, older, larger accounts appear to offer HSA owners a stronger hedge against unexpected bills. Those accounts open for one year had an average annual distribution of $1,109, while those open for 10 years had $2,729 taken in distributions.
Why Teaching Employees Your Company Financials Is A Winning Formula
In many businesses, a wide gulf exists between ownership and the workforce, a disconnect that can leave employees feeling undervalued and wanting to leave. The high cost of replacing them means it’s important to find ways to retain the best performers, and studies show that transparency and education from the top can be a solution —
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In many businesses, a wide gulf exists between ownership and the workforce, a disconnect that can leave employees feeling undervalued and wanting to leave.
The high cost of replacing them means it’s important to find ways to retain the best performers, and studies show that transparency and education from the top can be a solution — boosting employee engagement and motivation.
And one way to achieve that transparency is to open the company’s financial books to employees and teach them the business.
Too often in business, we fail to show the players on our own team the big picture — the overall score of the game. We tend to try to manage from the sidelines, focusing on individual performance. Why not teach them what winning means in business?
But opening the books may be the first time in the employees’ lives they feel they’re being treated as adults. This type of financial transparency builds trust and mutual respect. Teaching employees the business involves them in making a difference, so as a business leader, you need to get comfortable with opening things up.
Many business owners are hesitant to open the books to their employees. One of their concerns is giving employees access to salary information, but that isn’t advisable.
Opening your books does not mean sharing every detail. On the other hand, if people see how much the company is making and that makes them want more, that’s what you want as a business owner.
Here is a breakdown of how to open the books for employees and the benefits of doing so.
Bridge the gap between perception and reality. The perception among employees that the owner is focused on self-wealth can be changed by teaching employees how hard it is for most companies to make money. Many people would be surprised to know how little even large companies make in profit from every dollar of sales. Research shows the median bottom line in companies in 212 industries across the U.S. is 6.5 cents on every dollar of sales. But the average employee thinks their company makes six times that.
Break it down for them. Once you show your employees how hard it is to make money, sketch out a simplified income statement for your business, showing your revenue streams and all your expenses. Draw a dollar bill and show them how little the company keeps out of every dollar.
Bring the marketplace to your people. An owner can provide a clearer perspective to the employees by sharing how and what other companies in the industry are doing. Do your homework, and find out about your competition. If your employees know how they stack up against the field, most will respond to your appeal to move the needle. Your transparency has made them feel valued.
Make teaching financials interesting. The strategy is to create a business of business people. But remember, you’re trying to educate your people about your business, not create a bunch of CPAs. Share, teach, and involve them in the numbers they can impact. Your people rarely need to know about debits and credits or how to do an adjusting entry. But they may very well need to know how production efficiency is calculated and why receivable days matter.
Teaching the business helps everybody begin to understand what they can do, both individually and as a team, to influence bottom line financial results.
The purpose of opening the books is to boost the employees’ confidence in understanding the numbers and in the company itself.
Then and only then will they begin to make a connection to the numbers that measure their performance and talk intelligently about improving the business.
Rich Armstrong (www.greatgame.com) is president of The Great Game of Business Inc., and co-author of “Get In The Game: How To Create Rapid Financial Results And Lasting Cultural Change.” Steve Baker is VP of The Great Game of Business Inc., and co-author of “Get In The Game.”
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