innovationIOWA Weekly 9.13.18

Many U.S. employers are adopting new technology-enabled tools and solutions to address the root causes of the high cost of health care, without cutting benefits or increasing the financial burden on employees, according to a national survey of employer-sponsored plans by Mercer. Correspondingly, the survey found that for 2019, fewer than half of the responding employers (44 percent) said they will be passing costs along to their employees in the form of higher cost-sharing or reduced benefits.

Based on the first 1,566 responses to the Mercer National Survey of Employer-Sponsored Health Plans, Mercer projects that health benefit costs per employee will rise by 4.1 percent on average in 2019.

Technology has enabled companies to zero in on specific health problems. For instance, the survey of nearly 2,400 employers found that more than half (58 percent) of midsize and large employers with 500 or more employees now offer one or more "point solutions" -- high-tech, high-touch programs designed to help members with specific health issues ranging from insomnia to infertility.

Also, technology helps improve accessibility. Eighteen percent of midsize and large employers said they make all or most of their benefit offerings accessible to employees on a single, fully integrated platform, and another 19 percent said they are working toward full integration.

Additionally, technology is making it easier to mine data for actionable insights. More than three-quarters (77 percent) of employers with 500 or more employees use a data warehouse or get the data they need from plan vendors to inform their health plan strategy. But some of these employers (16 percent) are further ahead, using predictive analytics to identify future opportunities to improve health plan performance – or even health outcomes.

"Employers have realized that it’s up to them to solve the problems of high cost, inconsistent quality and low satisfaction that plague the U.S. health care system," said Renya Spak, leader of Mercer’s Center for Health Innovation. "Without question, technology is going to be part of just about every meaningful solution."

A historic University of Iowa building erected in the 1930s to bring the then-revolutionary "Iowa Idea" to life is being reincarnated as the state’s bold idea factory of the future.

In what one UI official is calling a "game changer" that will boost the school’s ability to support the next generation of entrepreneurs and turbocharge economic development, the university late last month announced plans to transform the former Art Building – decommissioned after the flood of 2008 – into a collaborative innovation center bringing together all 11 colleges to "solve problems and change the world."

"I’m thrilled to be a part of it," said David Hensley, executive director of the John Pappajohn Entrepreneurial Center, which will anchor the new center. "It really is going to be a campuswide initiative generating economic development across campus, across the state and across the globe. And when you take that coupled with what’s happening in the region – from the [Iowa City Area Development Group] and NewBoCo to ICR Iowa and others – the cosmic tumblers are coming together to position the university for the future and build this ecosystem that’s going to take the community to the next level."

UI, which placed the innovation center project on temporary hold as part of its five-month building moratorium, will ask the Iowa Board of Regents for formal permission to convert the Art Building at its September meeting this week. The project, expected to cost between $20 million and $25 million, will revitalize all 53,000 square feet of the flood-ravaged building and be funded through private donations.

Innovation centers have become something of a trend on university campuses, with Carnegie Mellon, Brown University, the Rochester Institute of Technology and the Universities of Connecticut and North Carolina at Chapel Hill among the institutions that have established or announced plans for them, according to the Chronicle of Higher Education. Iowa State University’s $84 million glass-encased Student Innovation Center is set to open next year, replete with classrooms, collaboration and meeting space, a test kitchen, a store selling products made at the center, and fabrication areas for electronics, woodworking, textiles and other materials.

UI officials say their innovation center will be a bit different, eschewing the usual futuristic architectural style of such centers in favor of honoring the university’s long history of inventiveness and creativity. The Depression-era building was conceived as an arts colony that would embrace the Iowa Idea: the concept that art history and art creation should be joined together under a single roof instead of being taught separately.

The atmosphere in the building encouraged groundbreaking art, including the works of painter Grant Wood and sculptor Elizabeth Catlett, the first African-American to be awarded a Master of Fine Arts degree in the United States. Now UI hopes it will inspire groundbreaking inventions and big ideas.

"Once restored to its original grandeur, the Art Building will be home to the next evolution of the Iowa Idea and continue the heritage of 170 years of research and discovery at the university," said Steve McGuire, director of the School of Art and Art History, in a news release. "The Iowa Idea will expand beyond the arts to encompass engineering, health care, the liberal arts, law, business, entrepreneurship and other disciplines on campus."

Redevelopment plans include restoration of the building’s exterior, modernizing the interior, floodproofing, and replacing outdated mechanical, electrical and fire detection technologies.

"I think it’s a really neat idea from a number of different angles," said Kim Casko, president and CEO of the Iowa City Area Chamber of Commerce, and part of a group of entrepreneurial, business and community leaders who helped UI officials with their visioning process for the innovation center last year.

"To use a space that’s already there, decommissioned after the flood, is a wise use of funds," she added. "Everyone thinks you need a new shiny building to house an innovation center, so repurposing an existing building is both effective and efficient. It’s also a great idea from a historical perspective, because it’s a big piece of the whole Iowa Idea and was kind of an innovation center of its day with a great story to it."

Hensley said he and Tippie College of Business Dean Sarah Gardial were "blown away" when they first toured the site. Not only does the Art Building, located on the banks of the Iowa River at the foot of the new Hancher footbridge, have a rich history of innovation, he said, but it’s in a central, accessible location between the undergraduate campus and the university’s health and professional colleges.

"We’re very excited about the space and believe this is a tremendous opportunity," he said, adding that the new facility comes at a critical time, with the Pappajohn Center running out of space to house would-be entrepreneurs and entrepreneurship majors. UI now offers a BBA in entrepreneurial management and a BA in enterprise leadership, as well as an entrepreneurial certification program open to any student.

Hensley said redesign and construction are expected to take about two years, with the building ready for use by the 2021 spring semester. In the meantime, the university will be forming a committee of faculty, students and community innovators who will spend the next 12-18 months reviewing existing assets and resources and making programming recommendations.

"We’re not waiting for the structure to open," he said. "By the time the building opens, this will be a much more enhanced program."

Gardial was unavailable for comment before the CBJ’s deadline, but said in a release that the goal was ensuring the innovation center "is a welcoming place for potential innovators and entrepreneurs from all across campus, students and faculty in every college and department, and from around the state of Iowa."

"Innovators will have access to a thriving community of resources," said Susan Curry, the UI’s interim provost and executive vice president. "Business students will bring knowledge about financial and management models to support innovation; law students will provide insight into intellectual property and patents; engineering students will assist in prototyping; computer sciences students will help with software development; medical students will advise about device development and testing; and liberal arts students will help with design, creativity and communication."

The center also will be the hub of the university’s economic development efforts, a prospect that excites Jennifer Daly, president and CEO of ICR Iowa, the regional joint venture formed to work on workforce and business attraction initiatives.

"The outcomes of this type of center could include an increase in new companies launched in our region, stronger companies benefiting from University of Iowa innovation and talent, and growth in talented people who want to live, work and learn in our region," said Daly, who also served on the leadership team envisioning what the innovation center should be.

While the university has a lot of space devoted to entrepreneurial activity, "what they felt was lacking was space not owned by a specific college, a space truly designed to bring multiple colleges together around a central project or problem," Daly said, adding that much of the focus of the leadership team centered on "How do we help break down some of those silos and create opportunities for collaboration? It takes lots of people with different skill sets around the table to solve problems and that is not necessarily how universities are structured."

"I’ve been at the University of Iowa for almost 20 years, and I’m really seeing a huge opportunity," Hensley said. "Innovative people from a wide variety of disciplines are coming forward and wanting to be part of this. It’s a game changer."

IN THE NEWS

Dwolla discontinues consumer Transfer pay platform
Transfer, a direct-pay product that allowed users to pay each other through an app or website, will be discontinued starting in October, Dwolla Vice President of Product Travis Ensley announced in a company blog post recently. In the process, Dwolla will stop accepting new Transfer accounts next month, and remove the ability to send or receive payments in December.

Denim announces Denim Summit 2018 in Des Moines
Denim, a mobile advertising automation provider for financial services companies, announced four speakers for this year’s Denim Summit 2018, to be held in downtown Des Moines on Oct. 24 and 25. Speakers include Scott Campbell, senior vice president and chief client officer at American National Insurance Co.; Tim Hoskins, president of market research firm Quester; Jason Andrew, co-founder and CEO of Limelight Health; Derek Hyde, chief technology officer and senior vice president of business development at AscendIA, holding company of TrustedChoice.com; and Gregory Bailey, CEO and founder of Denim. A full schedule and registration are available at www.denimlabs.com. For more information on Denim’s work, read the Business Record’s December profile, "Engaging digital consumers."

InsurTech Week presentations open to the public
Registration is open for the public interested in hearing from 16 insurance startups as part of this year’s InsurTech Week Oct. 22-26, hosted by the Global Insurance Accelerator. On Oct. 24, international insurtech startups will do a Q&A-style interview presentation with representatives from the GIA at the Science Center of Iowa; breaks are scheduled to encourage networking. The public is also invited to connect with startup leaders at Peace Tree Brewing Co. from 5:30 to 8:30 p.m.; registration for both events is available on the GIA’s website.

ISU researchers receive $2 million grant for mathematical agricultural models
The National Science Foundation awarded a five-year, $2 million grant to researchers at Iowa State University who developed a new machine-learning and mathematical modeling to plant breeding and farm management practices. Researchers plan to focus on three areas: harnessing mathematical models to better predict traits of crops; genomic selection, or the decisions plant breeders make when designing new crops; and optimal farm management practices.

MidAmerican Energy adds smart sensors for faster power restoration
MidAmerican Energy is adding hundreds of smart sensors to electric lines in an effort to identify the source of power outages faster and send crews directly to the source, MidAmerican Energy announced Wednesday. The devices, called remote fault indicators, attach to power lines and transmit outage and location details to MidAmerican Energy control room operators if they detect a service interruption, according to a news release. More than 200 sensors have been installed so far in Sioux City, Council Bluffs, Fort Dodge, Des Moines, Waterloo, Iowa City and the Quad Cities; representatives expect the company will complete installation at 150 additional locations in the next month.

ONE GOOD TECH READ
Knitting together disciplines (and pinning good knitting patterns)

New York Times: Iowan Ben Silbermann’s Pinterest may be a unicorn, but investors are frustrated over the platform’s cautious trajectory. The native Des Moines-ian is known for his low profile and "measures twice, cuts once" sensibilities, as the profile reports. Pinterest doesn't intend to be an argument for the slow-growth mindset, but it might be the best model out there.

IN OTHER NEWS: Facebook launches brand-safety function for advertisers (DIGIDAY); Elon Musk, with apparently plenty of time on his hands, teases Tesla-connected smart air conditioners (DIGITAL TRENDS).

By Kate Hayden | Staff Writer

Crowds packed Cowles Commons on Saturday, bringing lawn chairs and grabbing a beer in front of the 40-foot big screen. Even in Des Moines, the crowd was as wired for the Cyclones-Hawkeyes game as the sold-out Kinnick Stadium in Iowa City was.

When the football fans on TV stood up and waved at patients in the University of Iowa Stead Family Children’s Hospital, the crowd in Des Moines waved with them.

The "Iowa Wave" has only been around for a year, but Hawkeye fans and visiting teams alike already know exactly where to turn at the end of the first quarter -- and social media played a major role in a new tradition’s establishment, said Jessie Brown, co-executive director of the Des Moines Social Media Club.

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BUSINESS RECORD CALENDAR
UPCOMING EVENTS

Sept. 20: Insurance Startup Ecosystem Lunch
In the last four years a startup ecosystem built around and by the insurance industry has taken firm hold in Des Moines. Centered on the Global Insurance Accelerator, this ecosystem now enjoys global recognition in the insurtech world.
WHERE: Hilton Des Moines Downtown, 12-1:15 p.m.
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Sept. 27: Raising Capital Seminar
Startup company founders in Greater Des Moines will have the opportunity to learn from other entrepreneurs and startup investors on how to raise equity capital. This full-day event will take participants through all the steps necessary and provide a complete road map of what will need to take place before, during and after raising capital.
WHERE: BrownWinick Law Firm, 8 a.m.-3 p.m.
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View our full calendar to see the latest curated business and community events, or suggest an event.

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