CONFIDENTIAL REPORT: Atlanta’s cyber attack could cost taxpayers $17 million – Atlanta Journal Constitution

The cyber attack that struck the City of Atlanta in March could cost taxpayers as much as $17 million, according to a report obtained by The Atlanta Journal-Constitution and Channel 2 Action News.

The seven-page document — marked “confidential and privileged” — identifies roughly $6 million in existing contracts along with an additional $11 million in potential costs associated with the March 22 attack.

“It is breathtaking in that they’re having to do a complete overhaul,” Don Hunt, a professor at Georgia State University’s Andrew Young School of Policy Studies, told Channel 2. “They’ve been very busy the past few months.”

The report does not disclose who authored it, nor does it make clear how much of the expenses the city would have incurred regardless of the attack.

But with a potential figure of $17 million, Atlanta’s ransomware attack is one of the more expensive suffered by any local government in the U.S. in 2018.

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By comparison, a ransomware attack against Colorado’s Department of Transportation earlier this year is expected to cost $2 million.

“We are pleased with the progress of the recovery efforts. In addition to responding to the criminal attack against the City of Atlanta, we are using this opportunity to make the City more secure,” said a spokesperson in an email. “Unfortunately, in today’s world, governments are seeing an increase in cyber attacks… As you already know, the City is insured against cyber-attack. We continue to work through that process for the most cost-effective outcome for our residents.”

In March, city employees were told to shut off their computers to stop a virus from spreading through the network and encrypting data. A cyber criminal group demanded that the city pay it about $51,000 in bitcoins — a crypto currency that allows for anonymous transactions online.

The city refused to pay the ransom.

For weeks the watershed department could only accept payments at City Hall, and the city’s municipal court had no way of accepting payments for traffic tickets.

The city has yet to reveal the extent of data loss. But two months ago, the AJC and Channel 2 Action News discovered that years of Atlanta Police footage from officers’ patrol cars was lost and unable to be recovered after the March attack.

Chief Erika Shields said the lost footage could compromise DUI cases if an officer’s testimony isn’t sufficient. It’s unclear how many investigations might be affected.

Of the $6 million the city has already agreed to spend, the vast majority is paying for security services and software upgrades, according to the confidential report. The city will pay about $1.1 million for new desktops, laptops, smart phones and tablets.

March 23, 2018 Atlanta: Employees at Atlanta City Hall were handed instructions as they come through the front doors to not turn on computers or log on to their workstations on Friday March 23, 2018. Friday’s action comes as city officials are struggling to determine how much sensitive information may have been compromised in a Thursday cyber attack. The city has also received demands that it pay a ransom of an unspecified amount, officials confirmed. But officials had yet to make a determination if it would pay the ransom. Hartsfield-Jackson International took down the wi-fi at the world’s busiest airport after a cyber attack on the city. The Atlanta airport’s website said after the cyber attack that security wait times and flight information may not be accurate. JOHN SPINK/JSPINK@AJC.COM(The Atlanta Journal-Constitution)

Before the attack, the city received years of warnings about security weaknesses.

The city’s independent auditor in 2010 warned that the Information Technology Department “currently does not have funding for business continuity and disaster recovery plans.” In 2014, the city still lacked such a plan.

Another audit released in January found that the department of Atlanta Information Management and the Office of Information Security regularly identified vulnerabilities in the city’s network but not the root causes.

“In one case,” the audit said, “monthly vulnerability scan results indicated the presence of 1,500-2,000 severe vulnerabilities in the scanned population, with a history that went back over a year with no evidence of mitigation of the underlying issues.”

According to a 2017 list of employees in the department of Atlanta Information Management, only two of the department’s 154 employees had the word security in their titles.

The city’s information technology leadership appears to have been overwhelmingly focused on making Atlanta a so-called “Smart City” — a designation for cities that emphasize information and communication technology to enhance public services such as utilities and transportation.

However, several cyber security trade publications in recent months have highlighted how these cities are especially vulnerable to attacks because of massive interdependent computer systems that constantly communicate with each other and often aren’t tested for weaknesses before being deployed.

In the first few months of 2018, the department of Atlanta Information Management’s Twitter page references “Smart Cities” in nearly every tweet.

Just before the attack, the department on Twitter advertises a locally held smart city technology forum titled “Can’t Out-Smart Atlanta.”

“It’s Smart City panel time!” the department tweets on March 15.

It’s next tweet is a video of Atlanta Mayor Keisha Lance Bottoms’ first press conference regarding the ransomware cyber attack.

Putting Stamp Sand to Good Use, and Then Some – Michigan Tech News (press release)

The Whiz Kids team from Lake Linden-Hubbell High School have participated in eCYBERMISSION, a US Army Educational Outreach Program (AEOP). Their mission: research and develop a process to benefit their community.

The Whiz Kids—Siona Beaudoin, Beau Hakala and Gabriel Poirier—is the only team from Michigan’s Upper Peninsula. The group has been advised by students, faculty and staff from Michigan Technological University and focused on stamp sands for the past three years.

“Our elementary school, playground and football field were constructed on top of stamp sands—materials left over from stamping the copper out of the mine rock,” the team wrote in their AEOP grant proposal. “Also, many of our grandparents worked in area mines.”

The team decided to try to use some of the stamp sand. Their goal was twofold: decrease the amount of stamp sand in the area and help prevent it from migrating any further.

Because stamp sand is rich in copper, many plants cannot grow in it. In fall 2016, the Whiz Kids decided to see which plants could grow in stamp sand. Using containers under grow lights at their school, they determined alfalfa and fescue grew well, while trefoil and red clover did not. This research won them first place in the national e-CYBERMISSION 8th grade competition. The team is now growing alfalfa and fescue in test plots on the Lake Linden stamp sands.

Because stamp sand is rich in copper, many plants cannot grow in it.

In fall 2017, as ninth graders, the Whiz Kids placed first in Michigan. Instead of progressing through the eCYBERMISSION competition, they won an $1,800 STEM in Action Grant from the AEOP to continue researching stamp sand.

This time, the team used stamp sand from Lake Linden and nearby town of Gay as part of the fine aggregate in concrete. They found that the compressive strength of concrete made with stamp sand and commercial sand exceeded the strength requirements of lightweight concrete.

“Their hard work and dedication to a local scientific problem has shown that a few students at a small school can make a huge impact on their community. Growing plants on stamp sand and using stamp sand in concrete have opened the door to methods that could actually be used to remediate the stamp sands in the Lake Superior watershed.”Nick Squires, science teacher, Lake Linden High School

Whiz Kids Go to Washington

Both last year and this summer, the Whiz Kids traveled to Washington, DC to present their work at the eCYBERMISSION National Competition. It began on Father’s Day, June 17 – the day of the Houghton County flood. They were supposed to leave on the 6 a.m. flight at the Houghton Airport.

Gabriel Poirier made it there on time. Beau Hakala was stuck in Mason between two mud slides that covered M-26. With the help of people in Mason, he and his family were driven through the flooded roads to Signa Beaudoin’s house, so that Beaudoin’s father could drive them to the airport. United Airlines staff and TSA employees helped everyone stranded; The flight finally left around 5 p.m. and the team arrived in Washington DC at midnight.

whiz kids team stand with EPA officials
Mitigating stamp sand encroachment involves many stakeholders.

While in DC, the team presented their concrete research at an eCYBERMISSION showcase and poster session. As part of the week-long activities, the team met with staff members of Michigan Representative Jack Bergman and Senator Debbie Stabenow, where they discussed their projects and their potential impact on the community. With help from Representative Bergman, the team met with scientists at the EPA to learn how the agency implements new remediation methods. The team also received information about EPA contacts in Chicago and Duluth to discuss their projects in greater detail.

As eCYBERMISSION attendees, they enjoyed engineering activities while in DC, including how to operate and program drones, create a circuit and use night vision goggles to see the lights in the circuit as well as about cybersecurity by hacking into a system.

Mentoring Makes the Difference

The Whiz Kids traveled to DC with their advisor Ryan Knoll, a chemical engineering senior at Michigan Tech and graduate of Lake Linden High School. Also advising the Whiz Kids are Lake Linden high school teacher Nick Squires; Gretchen Hein, a senior lecturer in Engineering Fundamentals at Michigan Tech; and Rob Fritz, a Technical Lab Coordinator in the Department of Civil and Environmental Engineering at Michigan Tech. Fritz helped the team identify and test concrete mixtures.

“Ryan has been working with the team for two years,” Hein says. “He is dedicated to the team and spends up to 10 hours a week with them after school.”

“Ryan helped them develop technical writing skills and experimental process skills; he has emphasized the importance of science and math in high school and showed the team how their classes will help them be successful in college. He has truly been a mentor to the team.” Gretchen Hein, Engineering Fundamentals, Michigan Tech

“Mentoring this team has been a great experience for me, too,” Knoll says. “It has helped me develop communication, teaching and presentation skills. The experience also may have given me an advantage while interviewing to be an Engineering Technician Intern at Koppers Performance Chemicals, in Hubbell. I look forward to working with the Whiz Kids as they continue their research throughout the next school year.”

Joining the Conversation

As part of their research and interest in stamp sand, the Whiz Kids have attended public meetings on Buffalo Reef and Big Traverse. “They were excited to see that using stamp sand in concrete was one of the proposed remediation methods,” Hein says.

Researchers at Michigan Tech will help design long-term solutions for removing mine waste from the shoreline of Lake Superior and Buffalo Reef, an important fish spawning ground. According to one recent estimate, without action, more than 60 percent of the reef will be smothered by stamp sands in the next 10 years.

The work is in partnership with state and federal agencies, the Keweenaw Bay Indian Community, area businesses and community members, stakeholders are approaching the problem of removing a large volume of stamp sands to protect fish habitat, homes and beaches. With creative solutions, the Whiz Kids are joining the conversation.

Michigan Technological University is a public research university, home to more than 7,000 students from 54 countries. Founded in 1885, the University offers more than 120 undergraduate and graduate degree programs in science and technology, engineering, forestry, business and economics, health professions, humanities, mathematics, and social sciences. Our campus in Michigan’s Upper Peninsula overlooks the Keweenaw Waterway and is just a few miles from Lake Superior.

UNDP joins Tech Giants in Partnership on AI – UNDP

NEW YORK, August 1 – UNDP joins the Partnership on Artificial Intelligence (AI), a consortium of companies, academics, and NGOs working to ensure that AI is developed in a safe, ethical, and transparent manner. Founded in 2016 by the tech giants – Amazon, DeepMind/Google, Facebook, IBM, and Microsoft – It has since been joined by industry leaders such as Accenture, Intel, Oxford Internet Institute – University of Oxford, eBay, as well as non profit organizations such as UNICEF and Human Rights Watch and many more.

Through the partnership, UNDP’s Innovation Facility will work with partners and communities to responsibly test and scale the use of AI to achieve the Sustainable Development Goals. By harnessing the power of data, we can inform risk, policy and program evaluation, we also can utilize robotics and Internet of Things (IoT) to collect data and reach the previously deemed unreachable – to leave no one behind.

UNDP’s AI portfolio is growing rapidly. Drones and remote sensing are used to improve data collection and inform decisions: in the Maldives for disaster preparedness, and in Uganda to engage refugee and host communities in jointly developing infrastructures. We partnered with IBM to automate UNDP’s Rapid Integrated Assessment, aligning national development plans and sectoral strategies with the 169 Sustainable Development Goals’ targets; and with the UNEP, UNDP has launched the UN Biodiversity Lab, powered by MapX. The spatial data platform will help countries support conservation efforts and accelerate delivery of the 2030 Agenda.

In line with UNDP’s Strategic Plan 2018-2021, innovation plays a central role in fulfilling the organization’s mission and achieving the Sustainable Development Goals. Benjamin Kumpf, UNDP’s Innovation Facility Lead states, “advances in robotics and AI have the potential to radically redefine human development pathways. The path to such redefinitions entails concrete AI experiments to increase the effectiveness of our work as well as norm-setting: we have to think beyond guidelines for ethical AI to designing accountability frameworks.”

The Partnership on AI aims to advance public understanding of AI, formulate best practices, and serve as an open platform for discussion and engagement about AI and its influences on people and society.

About UNDP Innovation

UNDP works in over 170 countries and territories, helping to achieve the eradication of poverty, and the reduction of inequalities and exclusion. In 2014, UNDP established the Innovation Facility to foster innovation for development, with the support of the Government of Denmark. The Innovation Facility provides technical support and funding to UNDP teams around the world to test frontier tech and apply new approaches to deliver better results.

For more information about UNDP Innovation Facility visit http://www.undp.org/innovation and follow @UNDP_Innovation

About The PAI

The Partnership on AI is a consortium of companies, academics, nongovernmental organizations (NGOs), and nonprofits dedicated to ensuring that artificial intelligence (AI) – the capacity for computer programs to learn, decide, and mimic other intelligent human behavior – is developed in a safe, ethical, and transparent manner. Tech giants Amazon, DeepMind/Google, Facebook, IBM, and Microsoft founded the non-profit organization to advance public understanding of AI, formulate best practices, and serve as an open platform for discussion and engagement about AI and its influences on people and society.

Full list of partners

Amazon, Apple, Deepmind, Facebook, Google, IBM, Microsoft, Aaai, ACLU, Accenture, Affectiva, Ai Forum New Zealand, Ai Now Institute, The Allen Institute For Artificial Intelligence (Ai2), Amnesty International, Article 19, Association For Computing Machinery, Center For Democracy & Technology (Cdt), Center For Human-compatible Artificial Intelligence, Center For Information Technology Policy Princeton University, Centre For Internet And Society, India (Cis), Leverhulme Centre For The Future of Intelligence (Cfi), Cogitai, Data & Society Research Institute, Digital Asia Hub, Doteveryone, Ebay, Element Ai, Electronic Frontier Foundation (Eff), Fraunhofer Iao, The Future of Humanity, Future of Life Institute, The Future of Privacy Forum, The Hastings Center, Hong Kong University of Science And Technology Department Of Electronic & Computer Engineering, Human Rights Watch, Intel, Markkula Center For Applied Ethics Santa Clara University, Mckinsey & Company, Nvidia, Omidyar Network Openai, Oxford Internet Institute – University of Oxford, Salesforce, SAP, Sony, Tufts University Hri Lab, UCL Engineering, UNDP, UNICEF, University of Washington Tech Policy Lab, Upturn, Xprize, Zalando

Media queries: Sangita Khadka, Communications Specialist, UNDP Bureau for Policy and Programme Support, email: sangita.khadka@undp.org, Tel: +1 212 906 5043

Finding Funds for Coding Programs – T.H.E. Journal

Furthering STEM Education

Finding Funds for Coding Programs

Coding programs don’t have to break the bank. Here are some resources and tactics for funding computer science affordably and without skimping on quality.

Photo credit: J.D. Ferries-Rowe, CIO, Brebeuf Jesuit Preparatory School

As the importance of coding grows each year, school districts inevitably feel pressure to fund clubs and find money for specialized instruction within the curriculum. The pressure is not exclusive to upper grades. If anything, educators such as Katie M. Blagden increasingly see the benefits of early introduction to coding language.

As a science/technology/engineering/arts/mathematics (STEAM) coach and teacher at Ayers Ryal Side Elementary School, Beverly, MA, Blagden teaches rudimentary coding to kindergarten students using Kibo Robots. The robots feature coding blocks that come in sets of 10, 14, 18 and 21.

Blagden personally made the pitch for Kibo funds to the school’s PTO, taking care to integrate the school’s stated mission into the plea. “Our district’s mission is to get students prepared for the outside world and their career, and one of the things that could be important in careers is coding,” she said. “Kibo Robots are extremely affordable. Our PTO provided funds, and we purchased 10 of the Kibo 10s at $229 each.”

Many younger grades do not have a 1-to-1 or bring-your-own-device (BYOD) policy, but the robots require no additional device. “That’s the best part,” said Blagden. “Our schools do not have a 1-to-1 policy for technology. Normally with coding, only one or two students can be doing it at a time. You can always get just a couple of Kibos and put them on stations. Kibo robots do not require any sort of computer connection, which is great for students and great for the school budget.”

Finding a Grant

Whether it’s Kibos or other coding equipment, additional attachments can be acquired as needs increase. Public and private grants are available for updates and original purchases. On the private side, J.D. Ferries-Rowe has seen grant opportunities expand over the years, primarily because businesses, including tech companies, are keen to nurture talent and ultimately bolster their potential workforce.

As chief information officer at Indianapolis-based Brebeuf Jesuit Preparatory School, Ferries-Rowe contends that the key to successfully getting private grants is making the case. “Develop a convincing case and you can approach businesses,” he says. “We go to businesses that are affiliated with our school. Or we go to businesses that parents own. We make the case that our coding efforts are valuable, and then say, ‘Here is what we need.'”

Numerous private grants are available from various tech companies. Teacher Geek lists STEM grants by state. You can also find updated grant listings at thejournal.com/grants.

Using Free Tools and Negotiating Deals

“We teach coding and basic digital citizenship [to every freshman] as basic as Code.org and the Scratch programming environment [scratch.mit.edu]” said Ferries-Rowe. Both are free. “We use free programs to make sure we get 100 coverage coverage for all the kids. We quickly enhanced the Scratch part of that curriculum by adding Makey Makey Boards. You can find these in bulk from China for $25 per unit (retail $50). Since we work in teams of three, we were able to cover an entire classroom worth of Makey Makey Boards for $300.”

Brebeuf recently started doing coding-related virtual reality (VR) design using “co-spaces” which sells blocks of student licenses in groups of 50 for $75. Ferries-Rowe explains: “You can go to a company with a real dollar sign pitch and say, ‘Here’s how much it costs for an individual license to co-space, and we want 50 licenses to do the following projects and skills that you as a company are looking for. Can you help us with that funding?’ If you go in with a pitch that has an actual goal and a real world number, along with the number of students that will be impacted, they are much more likely to give. You can pass the virtual hat.”

6 takeaways from Treasury fintech report: National charter, breaches and more – American Banker

One of the biggest recommendations by Treasury was an endorsement of OCC plans to create a new federal bank charter for fintech firms. The bank regulatory agency appeared to be waiting for that official backing, since hours later the OCC announced that it was moving ahead with accepting charter applications.

For years, the agency was weighing the charter idea, before Comptroller Joseph Otting took the helm last year. But the concept ran into several obstacles, including legal challenges by state regulators, who argued the agency did not have the authority to charter and supervise fintech firms on a national scale. The OCC developed the plan under former Comptroller Thomas Curry.

“Treasury recommends that the OCC move forward with prudent and carefully considered applications for special purpose national bank charters,” the report said.

However, it added that fintech firms receiving such a charter “should not be permitted to accept FDIC-insured deposits, to reduce risks to taxpayers” and the Federal Reserve should decide whether those firms should have access to the payments system.

The Treasury also recognized that state regulators play a role in harmonizing licensing requirements across states, an initiative that some states have already launched earlier this year after many fintech firms said the state-by-state process is cumbersome and outdated.

“Treasury supports state regulators’ efforts to build a more unified licensing regime and supervisory process across the states,” the report said. “Such efforts might include adoption of a passporting regime for licensure.”

The Treasury also added that if state regulators “are unable to achieve meaningful harmonization across their licensing and supervisory regimes within three years, Congress should act to encourage greater uniformity in rules governing lending and money transmission to be adopted, supervised, and enforced by state regulators.”

Senator Mark Warner Drops New Policy Proposals For Regulating Tech – PYMNTS.com

The team at Facebook is not having a great week, as it seems all of its recent data scandal chickens have come home to roost. Last Wednesday, its market cap took a $120 billion beating in the aftermath of earnings that fell short of revenue and earnings targets. Analysts say this is the first indication that the animus over the Cambridge Analytica issue could have a longer-term impact on three dimensions of its platform: advertisers, users and the cost to run the platform.

Two days later, Facebook and its executive team found themselves named in a class-action lawsuit – actually, several of them – alleging that the social network made false and misleading statements related to the decline of monthly active users prior to the second-quarter earnings report.

Over the weekend, Last Week Tonight served up its own version an “honest Facebook” ad – in a parody of the apology ad they offered up a few weeks ago – that was pretty brutal and immediately went viral.

And then today, three-and-a-half months after Mark Zuckerberg spent about 10 hours testifying in front of senators and congress people to apologize for the Cambridge Analytica incident (and explaining the internet to our elected representatives), the other shoe dropped when it came to the long-speculated subject of the federal government regulating big tech.

Virginia Senator Mark Warner, vice chairman of the Senate Intelligence Committee, released a policy paper detailing 20 options for the government to start regulating big tech a lot more closely.

“The speed with which these products have grown and come to dominate nearly every aspect of our social, political and economic lives has in many ways obscured the shortcomings of their creators in anticipating the harmful effects of their use,” the report stated in its opening paragraphs. “Government has failed to adapt and has been incapable or unwilling to adequately address the impacts of these trends on privacy, competition and public discourse.”

Thanks, Facebook, for being the catalyst for that.

What It Targets (and Why)

In fairness to Facebook, it is far from the only target of the regulations. Though the site was uniquely and specifically called out in the report for its various failings around the Cambridge Analytica scandal, Senator Warner’s report made it very clear that Facebook was the most visible problem at present, but not the only one.

In fact, reports called out most of the biggest and brightest names in technology as falling under the scope of the regulatory options being put forward: Facebook, Google, Twitter, Amazon and Apple were all name-checked within the first hundred or so words.

And why not? There’s nothing like hovering near the $1 trillion market cap to cause policy makers to suspect that you must be doing something wrong.

The report did note that all of these firms deserved both credit and praise for technological transformation they have engendered around the world. It also logged that much of what these firms do in terms of tracking data is actually predicated on the perfectly sound goal of providing better customer service across the board.

“User tracking can have important consumer benefits – for instance, by showing users more relevant ads and helping to optimize user experience across different apps.”

The problem, according to the report, is that all the opportunities for consumer harm that also exist in tracking and compiling extensive data profiles for consumers – particularly in light of the fact that these profiles and their contents are largely unknown to the customers to whom they refer.

The report notes that pervasive tracking can give businesses a chance to use behavioral data on a customer’s shopping and spending habits and exploit it to “drive engagement with an app or service.”

Or use it in ways that consumers like.

It can also influence the path a democracy might take, the report noted, referring specifically to the Cambridge Analytica scandal – or have an effect on a consumer’s life in a way that he or she might not have reasonably expected.

Assuming, it appears, that the impact on that consumer’s life as a result of those technologies is probably negative.

The good news, according to the report, is that there are “numerous opportunities” for policymakers, stakeholders and technologists to work together to operate to the broader advantage of “society, competition and broad-based innovation.”

“[The goal] is to make sure that we are adopting appropriate safeguards to ensure that this ecosystem no longer exists as the ‘Wild West’ – unmanaged and not accountable to users or broader society.”

So, how to get there?

The Suggested Regulations

There are a lot of suggestions in the report, but probably the most eye-catching is the suggestion that the U.S. adopt a GDPR-like legislation.

These new regulations would require tech companies to obtain individual consent to use consumer data, notify customers of a data breach within 72 hours and allow people to access their personal data and take it with them if they switch digital services. The Warner paper further recommends that some of the regulations can be legislated separately, as opposed to as a single parcel of rules, a la what just went into effect in the EU.

Also particularly eye-catching is a move to redefine a wide range of tech firms, including Twitter, Google, Facebook, Apple, Amazon, Comcast, Verizon and Microsoft as “information fiduciaries.” This wholly de novo legal term would require firms to protect consumer data and not utilize it for their own benefit or for the benefit of third parties. This proposal, many critics have already noted, would effectively destroy the business model of several of these firms, and countless others.

It also reflects a similar lack of understanding that the regulators across the pond have for what these platform businesses do, how they are constructed and how those business models work.

A smaller-scope version of that proposal – which watchers agree would at least be less damaging – would simply treat many of these firms as the media companies they have long resisted being dubbed, and make internet platforms accountable to defamation and invasion of privacy laws, much as news media outlets already are.

On the less controversial side of the suggestions, the paper also advocates for media literacy in schools, including a public initiative to begin internet education early in life. The proposal also recommends beefing up military spending for the prevention of cyberattacks, as well as elevating sanctions and punitive measures against nations like Russia that already have a history of attacking U.S. institutions through disinformation campaigns and various types of cybercrime.

What’s Next

Given that 87 million people’s data was leaked via the Cambridge Analytica scandal – and the outrage that came along with it – regulation proposals were almost certainly a guarantee.

How well the regulators understand what they are regulating remains an open question. The report, for example, calls out various online lending platforms that include “social media data” to make underwriting decisions.

“Users have no reason to expect that certain browsing behavior could determine the interest they pay on an auto-loan, much less that what their friends post could be used to determine that,” the report wrote.

A sound point – though PYMNTS has interviewed dozens of online lenders over the last nine years, and zero percent use things likes social media history and browsing data (or friends’ posts) to make underwriting decisions.

In fact, the vast, vast majority don’t use that kind of data for underwriting decisions at all – though they do often use it as a tool to establish identity. The reason is that social media data and browsing is highly curated and not all that informative. It’s hard to manipulate financial data – consumers paying their bills on time is what underwriters tend to look at most.

Using “alternative data streams” doesn’t mean looking at Facebook or Twitter to make underwriting decisions, it means looking at things like rent and phone bill payments that aren’t represented in traditional credit reports. That point of confusion seems to make a case that Senator Warner and other regulators perhaps have a bit more research to do before letting the ink dry on any new regulations.

But it seems that no matter what, regulation is soon coming to big tech. David Redl, a senior U.S. Commerce Department official who oversees the National Telecommunications and Information Administration, noted in a speech on Friday that the administration is currently hard at work on a data privacy doctrine. While Senator Warner’s regulations do come from a Democrat, the Trump administration might welcome a rare chance to work across the aisle and collectively get some regulations in place.

Which means change is likely coming to the regulatory world in which big tech lives.

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Emergency room errors caused largely by faulty cognitive processes, study finds – Healthcare Finance News

Almost half of medical errors in the emergency room are due to problems with information processing, according to a new study published in De Gruyter’s Journal Diagnosis. This issue is not related to technology — it’s a cognitive shortcoming, and accounts for 45 percent of all ER errors.

Care quality in the ER matters, and not just in terms of the patient’s health. Consumerism in healthcare is creating an industry in which patients increasingly call the shots, opening up their wallets to hospitals and providers with the best reputations and online ratings.

Payers also increasingly link reimbursement to quality, creating a financial incentive for hospitals to offer a tip-top experience.

Medical errors are estimated to cause 250,000 deaths per year in the U.S., the report found, and it suggested that errors are due to the way doctors cognitively process the data they have about patients. In other words, doctors have the right information, but might not act on it in the best way.

The emergency department is a very different clinical environment than inpatient wards, with frequent interruptions and often incomplete or unreliable information. Despite this, the study shows that doctors in an emergency department with trainees make similar types of errors to those made with admitted patients — more information processing errors are made than errors of inadequate knowledge or inadequate information.

Researchers looked at patients who came back to emergency departments a second time within 72 hours and were admitted to the hospital on their second visit, an indicator that care could have been improved during the first visit. A trained team of physicians looked at each case to determine whether the team during the patient’s first visit might have made a mistake, and if one was found, determined the type of mistake that was made.

The most frequently identified type of error (45 percent of cases) was a problem with information processing, followed by problems with verifying information that was gathered (31 percent).

Inadequate knowledge (6 percent) and inadequate information gathering (18 percent) occurred relatively infrequently. Misjudging how significant a finding was and prematurely deciding on an incorrect diagnosis were the individual errors that occurred most frequently (13 percent each).

Lacking in the study was an underlying reason why these cognitive errors occurred, but previous research has shown that physician burnout can negatively impact decision-making and overall care quality.

The study found that patients with abdominal complaints may be particularly vulnerable to these types of errors, through the reason for this remains obscure.

Twitter: @JELagasse

Email the writer: jeff.lagasse@himssmedia.com

Cities Face Criticism Over Online Payment System Breach Notifications – Government Technology

(TNS) — Throughout 2017 and earlier this year, a string of municipalities using online bill paying system Click2Gov — including Medford, Ore. — discovered they had been hacked.

Customers’ personal, credit and debit card data were exposed when they paid for utility bills, business licenses, permits, and in some cities, parking fines.

Although forensic investigators were able to identify malware as the hacking method, it’s not so easy to explain why potential targets weren’t notified and cardholders themselves were often left in the dark for weeks.

Medford, through Deputy City Attorney Eric Mitten, reported Monday it had suffered data breaches through Click2Gov as early as five months ago.

The data breach came in two waves — Feb. 18 to March 14 and March 29 to April 16; the initial alarm was sounded by a financial firm that notified the city on April 19.

Forensic investigators from Kroll, a Manhattan-based, technology-enabled intelligence and information management firm, determined on June 5 that malware was used to gather payment card information, including credit or debit card numbers, cardholder names, expiration dates and CVV codes. Social Security numbers were not affected.

Medford sent a letter July 23 to 1,842 potentially affected cardholders.

Mitten said Monday the city didn’t want to alarm people who weren’t affected by the breach.

“We’ve been working closely with the forensic investigators to get more specific information and to pinpoint who may have been affected,” Mitten said. “If we would have announced it immediately, we wouldn’t have known who was and who wasn’t affected; we recommend everyone monitor their credit cards, regardless.”

Superion, the Lake Mary, Florida, developer of the Click2Gov system, says it took steps to notify its customers in 2017 of potential problems.

“Last year, we reported that a limited number of on-premise clients had identified suspicious activity on their servers that are used to host Superion’s Click2Gov product,” said spokesperson Carol Matthieu in response to a series of email questions. “Upon learning of the activity, we took proactive steps to quickly notify all Click2Gov customers as early as September 2017.”

Matthieu said Superion, which also sells emergency management software throughout the country, launched an investigation and engaged a forensic investigator to assess what happened and determine appropriate remediation steps.

“For security and confidentiality reasons we cannot disclose any information about our customers, their environments, or their security,” Matthieu said. “We have assisted as many customers who would allow us, by providing best-practices advice and helping them with the application of patches in order to update and better secure their networks.”

She said Superion has deployed the necessary patch to software and assisted customers in the application of patches. However, Superion does not control its customers’ networks, she said.

“It is important to note that these security issues have taken place only in locally hosted on-premise networks in certain towns and cities,” Matthieu said. “Not a single client in Superion’s data centers or in the Superion Cloud has faced these issues, even when they are using the same software product. At this time, we have no evidence showing that it is unsafe to make payments utilizing Click2Gov on hosted or secure on-premise networks with recommended patches and configurations.”

Mitten wrote potentially affected customers that a hacker gained access to portions of the city’s website and installed software “that was designed to capture payment card information as it was inputted on the website.” The website was temporarily disabled until it was re-secured, he said.

Medford City Manager Brian Sjothun said he was unaware of other cities having their Click2Gov systems hacked.

While declining a direct interview, Sjothun responded to emailed questions.

“It was not apparent to the city of Medford whether or not other municipalities were affected by the same situation,” Sjothun wrote. “The city of Medford has focused on addressing the circumstances of our customers. We have not focused on circumstances in other municipalities.”

Asked if he thought the software patch was effective, Sjothun offered: “We have instituted measures designed to help prevent a future incident.”

Sjothun said select members of the city administration were brought into the loop on April 19 with the city council and mayor notified the following week.

“What we had been told about the cyber stuff is that it is somewhat inevitable,” said Councilor Kim Wallan. “We take as many security steps as possible, but we might not have taken enough. No matter, you have to be ever-vigilant; I’m glad it wasn’t bigger.”

Wallan said criticism goes hand in hand with such issues.

“I’m not frustrated with the way it was handled,” she said. “When something like this happens, you’re going to get criticized; it’s the nature of the beast. It cost the city tens of thousands of dollars for people to pay bills this way, instead of checks or cash.”

Sjothun said the city was covered by cyberinsurance.

Medford police Chief Randy Sparacino was notified about potential concerns on April 23, Deputy Chief Scott Clauson said.

“It was later determined to be a high level ‘hacking’ type breach,” Clauson said. “This is something outside of our expertise at a local law enforcement level. While we do house the Southern Oregon High Tech Crimes Task Force and have our own Financial Investigation Section, this type of crime is not something we are forensically trained to deal with. Our expectation is that the vendor will investigate and quickly resolve at a software programming level.”

Clauson added the department will take reports for anyone that has had card information compromised and needs documentation.

Bend IT Director Randy James, whose city presently uses a variation of the Click2Gov system, said unknowns lurk at every turn.

“You never know when you’ve actually been compromised,” James said. “You never can say if you’re absolutely safe.”

He points out the malware hackers can insert themselves into systems, and then take a break, as was the case in Medford.

“They lie low after the initial penetration to avoid all protocols,” James said. “It’s not a matter of being impacted but how you are going to deal with it.”

Though Bend’s website has not been compromised, the city will no longer subscribe to Click2Gov once its five-year enterprise platform makeover is completed, he said.

“We’re going with a different vendor,” James said. “But it’s more a result of the evolution of our system.”

Superion is just the latest name for the organization running Click2Gov, he said.

“They’ve been acquired several times over the past six or seven years,” James said. “It’s not atypical in the technology world for bigger vendors to fill in a portion of what they need by acquiring an existing company rather than build their version.”

James said zero-day attacks — where hackers take advantage of a security vulnerability the same day it becomes generally known — are on his radar, but he wasn’t aware of Medford’s issues until it hit the news wires.

“We watch and evaluate our systems and make appropriate security adjustments as the industry dictates,” he said. “This vulnerability hasn’t had a long-term exposure, so in reviewing it people are a little slower recognizing this one. Malware like this finds the vulnerabilities in the software, such as missing security protocols.”

Given the cyberthreats from every direction, James said it’s not a matter of if, but when systems will be compromised.

“It’s sort of like playing whack-a-mole,” he said. “You get one and another pops up, you just review it again and again. You respond to one threat and then another. When you go after one with a patch, it might introduce another. Sometimes you just have to pick and choose priorities in finding the best way to protect your organization.”

While it took Medford nearly seven weeks to go public after the breach was confirmed, Bozeman, Montana, continued to hold its peace well after complaints began surfacing in fall 2017. It wasn’t until July 16 that Bozeman notified 3,000 customers of the hack.

Following several complaints, Bozeman took down the utilities payment page and hired computer forensics firm Lake Missoula Group to investigate.

The local investigators found no evidence of unauthorized activity, and the city went on with business as usual. City Manager Andrea Surratt told the Bozeman Daily Chronicle the city didn’t notify all users at that time because there wasn’t any evidence available.

Superion, however, probed the matter and found evidence of fraudulent activity on the site, but the Florida firm didn’t notify Bozeman until July 3.

The delayed response led Bozeman advocacy firm Pirl to file a Freedom of Information Act to obtain a “complete list of names of people whose information was exposed, all correspondence that discusses the breach, and all documents about how the city found out about the breach and how it’s planning on remedying it,” according to the Daily Chronicle.

Chief Operating Officer Joseph Chyatte said he was unaware of similar pushes for transparency.

“What’s disconcerting to me is that the city admitted receiving complaints of fraudulent transactions for a year and a half and didn’t tell the public until this month,” Chyatte said in a Friday interview.”Our position is, a government works best when it’s transparent. There is some obligation to notify residents when this kind of thing happens.”

Only a handful of municipalities in Oregon used Click2Gov, and chances are fewer will opt for a system plagued by hackers.

Ashland Administrative Services Director Mark Welch said the billing system used by his city doesn’t involve customer financial information going through city servers.

“We don’t touch any customers’ financial information and our servers never see it,” Welch said. “Pretty much for this reason; it can be a big nightmare.”

Here is a list of reported Click2Gov data breaches. Others may still be in the investigation period, or have not been publicly reported.

  • Oxnard, California, March 26 to May 29, 2017
  • Lake Worth, Florida, April 3, 2017, to Jan. 22, 2018
  • Goodyear, Arizona, June 13, 2017 to May 5, 2018
  • Oceanside, California, July 1 to Aug. 13, 2017
  • Bozeman, Montana, July 1, 2017, and Oct. 24, 2017
  • Beaumont, Texas, Aug. 1-24, 2017
  • Ormond Beach, Florida, Aug. 14 to Oct. 4, 2017
  • Fond du Lac, Wisconsin, August to October, 2017
  • Wellington, Florida, Nov. 28, 2017 to June 4
  • Okaloosa County, Florida, December 2017 to March 2018
  • Midland, Texas, December 2017 to June 2018
  • Thousand Oaks, California, Jan. 4-10, 2018
  • Medford, Oregon, Feb. 18 to March 14, 2018, and March 29 to April 16, 2018
  • Midwest City, Oklahoma, May 25 to June 21, 2018.

It’s not clear exactly which Click2Gov breaches were first detected, when red flags went up, or when they were first confirmed.

Superion is a Vista Equity partner. What potentially muddies the water for Click2Gov customers is a merger announced this week put together by Bain Capital and Vista Equity Partners. The multibillion-dollar private equity firms have combined Superion with San Diego-based TriTech and Alpharetta, Georgia-based Aptean to create a company providing software and services for public safety and government management in about 5,500 communities and jurisdictions, covering about three-quarters of the U.S. population.

©2018 the Mail Tribune (Medford, Ore.) Distributed by Tribune Content Agency, LLC.

Taubman Centers, Inc. Issues Solid Second Quarter Results – Business Wire (press release)

BLOOMFIELD HILLS, Mich.–()–Taubman Centers, Inc. (NYSE: TCO) today reported financial results for the second quarter of 2018.

June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017
Three Months Three Months Six Months Six Months

Ended (1)

Ended (2)

Ended (1)

Ended (2)

Net income attributable to common
shareowners, diluted (in thousands) $15,324 $13,505 $33,943 $30,720
Growth rate

13.5%

10.5%

Net income attributable to common

shareowners (EPS) per diluted common share

$0.25

$0.22

$0.55

$0.50

Growth rate

13.6%

10.0%

Funds from Operations (FFO) per diluted
common share $0.92 $0.86 $1.80 $1.71
Growth rate

7.0%

5.3%

Adjusted Funds from Operations (Adjusted
FFO) per diluted common share $0.87 $0.92 $1.91 $1.85
Growth rate

(5.4)%

3.2%

(1) Primary exclusions to Adjusted FFO for the three and six month periods ended June 30, 2018 were costs associated with shareowner activism and the fluctuation in the fair value of the Simon Property Group (SPG) common shares investment (due to the adoption of new accounting related to investments in securities this year).

(2) Primary exclusions to Adjusted FFO for the three and six month periods ended June 30, 2017 were a restructuring charge and costs associated with shareowner activism.

“We’re pleased with this quarter’s results,” said Robert S. Taubman, chairman, president and chief executive officer of Taubman Centers. “Our business benefitted from increased rents and expense savings.”

The company received significant lease cancellation income in the second quarter of 2017, impacting the comparability of the year-over-year second quarter Adjusted FFO results.

For the quarter, comparable center NOI, excluding lease cancellation income, was up 3.5 percent, bringing year-to-date growth to 4.1 percent. Including such income, comparable center NOI was up 1.7 percent, bringing year-to-date growth to 5.4 percent.

“Comparable center NOI growth exceeded our expectations again this quarter. The newest centers in our comp pool – International Market Place in Hawaii, CityOn.Xi’an in China, and Starfield Hanam in South Korea – produced especially strong growth. We also benefitted from higher overage rents, a result of strong tenant sales in the quarter, and greater net recoveries. As a result, we are increasing our NOI guidance for the full year,” said Mr. Taubman.

Operating Statistics

Comparable center tenant sales per square foot increased 6 percent from the second quarter of 2017. This brings the company’s 12-month trailing sales per square foot to $807, an increase of 5.6 percent from the 12-months ended June 30, 2017. Year-to-date, tenant sales per square foot were up 9.1 percent.

Tenant sales per square foot in the company’s U.S. comparable centers were up 5.1 percent in the quarter, bringing 12-month trailing U.S. sales per square foot to $845, an increase of 5.2 percent from the 12-months ended June 30, 2017. Year-to-date, U.S. sales per square foot were up 8.2 percent.

“We were encouraged to see strong growth in tenant sales once again this quarter,” said Mr. Taubman. “Our newest comp centers and our tourist-oriented centers performed particularly well.”

Average rent per square foot for the quarter was $57.90, up 3.6 percent from $55.92 in the comparable period last year. Year-to-date, average rent per square foot was up 3.8 percent.

Trailing 12-month releasing spread per square foot for the period ended June 30, 2018 was 2.3 percent. The spread continues to be impacted by a small number of spaces that have an average lease term of less than two-and-a-half years. Without these leases, the spread was 9 percent.

Ending occupancy in comparable centers was 92.2 percent on June 30, 2018, down 1.1 percent from June 30, 2017. The company continues to expect occupancy at year-end to be approximately 95 percent.

Leased space in comparable centers was 94.9 percent on June 30, 2018, down 0.7 percent from June 30, 2017.

Fourth Taubman Asia Investment

In June, the company made an initial investment in a joint venture with Shinsegae Group to build, lease and manage a 1.1 million square foot shopping mall in Anseong, Gyeonggi Province, South Korea, a high growth city in the Greater Seoul Metropolitan Area. The total project cost is expected to be between $570 and $600 million. Taubman’s total investment is expected to be between $140 and $150 million, representing a 24.5 percent interest in the center (although the company currently owns and is funding 49% of the project until an additional capital partner is admitted). Shinsegae owns 51 percent of the project, and an institutional investor is expected to own the other 24.5 percent. Starfield Anseong will be anchored by E-Mart Traders, PK Supermarket, ElectroMart, Sports Monster, an upscale cinema and several of Shinsegae’s successful entertainment concepts including Aquafield and Toy Kingdom. The center is expected to open in late 2020. The company’s unlevered after-tax return at stabilization is expected to be 6.25 to 6.75 percent before performance-related fee income from the anticipated capital partner.

Financing Activity

In April, Fair Oaks Mall (Fairfax, Va.), the company’s 50 percent owned joint venture, completed a $260 million, five-year, non-recourse financing. The loan bears interest at a fixed rate of 5.32 percent. Proceeds were used to pay off the previous $259 million loan.

2018 Guidance

The company is updating several guidance measures for 2018.

EPS is now expected to be in the range of $1.11 to $1.26 per diluted common share, revised from the previous range of $0.99 to $1.23.

FFO, which includes $0.11 per diluted common share of year-to-date adjustments, is now expected to be in the range of $3.63 to $3.73 per diluted common share, revised from the previous range of $3.56 to $3.70.

Adjusted FFO, which excludes the $0.11 per diluted common share of year-to-date adjustments, is expected to be in the range of $3.74 to $3.84 per diluted common share, revised from the previous range of $3.72 to $3.86.

The company is increasing its comparable center NOI growth guidance. It is now expected to be 3 to 4 percent for the year, up from the previous range of 2 to 3 percent.

The company’s share of consolidated and unconsolidated interest expense is now expected to be $189 to $192 million, up from the previous range of $185 to $190 million. Capitalized interest is now expected to be lower, resulting in greater interest expense for the year.

The company’s other guidance assumptions are unchanged. The company’s guidance does not reflect any future costs related to shareowner activism or fluctuation in the fair value of the SPG common shares it owns.

Supplemental Investor Information Available

The company provides supplemental investor information along with its earnings announcements, available online at www.taubman.com under “Investors.” This includes the following:

  • Earnings Press Release
  • Company Overview
  • Operational Statistics
  • Summary of Key Guidance Measures
  • Income Statements
  • Changes in Funds from Operations and Earnings Per Common Share
  • Balance Sheets
  • Debt Summary
  • Capital Spending and Certain Balance Sheet Information
  • Owned Centers
  • Redevelopments & New Developments
  • Anchors & Major Tenants in Owned Portfolio
  • Components of Other Income, Other Operating Expense, and Nonoperating Income, Net
  • Earnings Reconciliations
  • Operating Statistics Glossary

Investor Conference Call

The company will host a conference call at 11:00 a.m. EDT on Tuesday, July 31 to discuss these results, business conditions and the company’s outlook for the remainder of 2018. The conference call will be simulcast at www.taubman.com. An online replay will follow shortly after the call and continue for approximately 90 days.

About Taubman

Taubman Centers is an S&P MidCap 400 Real Estate Investment Trust engaged in the ownership, management and/or leasing of 26 regional, super-regional and outlet shopping centers in the U.S. and Asia. Taubman’s U.S.-owned properties are the most productive in the publicly held U.S. regional mall industry. Founded in 1950, Taubman is headquartered in Bloomfield Hills, Mich. Taubman Asia, founded in 2005, is headquartered in Hong Kong. www.taubman.com.

For ease of use, references in this press release to “Taubman Centers,” “company,” “Taubman” or an operating platform mean Taubman Centers, Inc. and/or one or more of a number of separate, affiliated entities. Business is actually conducted by an affiliated entity rather than Taubman Centers, Inc. itself or the named operating platform.

This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements reflect management’s current views with respect to future events and financial performance. Forward-looking statements can be identified by words such as “will”, “may”, “could”, “expect”, “anticipate”, “believes”, “intends”, “should”, “plans”, “estimates”, “approximate”, “guidance” and similar expressions in this press release that predict or indicate future events and trends and that do not report historical matters. The forward-looking statements included in this release are made as of the date hereof. Except as required by law, the company assumes no obligation to update these forward-looking statements, even if new information becomes available in the future. Actual results may differ materially from those expected because of various risks, uncertainties and other factors. Such factors include, but are not limited to: changes in market rental rates; unscheduled closings or bankruptcies of tenants; relationships with anchor tenants; trends in the retail industry; challenges with department stores; changes in consumer shopping behavior; the liquidity of real estate investments; the company’s ability to comply with debt covenants; the availability and terms of financings; changes in market rates of interest and foreign exchange rates for foreign currencies; changes in value of investments in foreign entities; the ability to hedge interest rate and currency risk; risks related to acquiring, developing, expanding, leasing and managing properties; competitors gaining economies of scale through M&A and consolidation activity; changes in value of investments in foreign entities; risks related to joint venture properties; insurance costs and coverage; security breaches that could impact the company’s information technology, infrastructure or personal data; costs associated with response to technology breaches; the loss of key management personnel; shareholder activism costs and related diversion of management time; terrorist activities; maintaining the company’s status as a real estate investment trust; changes in the laws of states, localities, and foreign jurisdictions that may increase taxes on the company’s operations; and changes in global, national, regional and/or local economic and geopolitical climates. You should review the company’s filings with the Securities and Exchange Commission, including “Risk Factors” in its most recent Annual Report on Form 10-K and subsequent quarterly reports, for a discussion of such risks and uncertainties.

TAUBMAN CENTERS, INC.
Table 1 – Income Statement
For the Three Months Ended June 30, 2018 and 2017
(in thousands of dollars)
2018 2017
CONSOLIDATED UNCONSOLIDATED CONSOLIDATED UNCONSOLIDATED
BUSINESSES JOINT VENTURES (1) BUSINESSES JOINT VENTURES (1)
REVENUES:
Minimum rents 87,580 87,734 86,787 84,957
Overage rents 1,565 5,789 1,179 5,215
Expense recoveries 50,553 43,526 49,413 43,692
Management, leasing, and development services 826 1,375
Other 12,245 6,742 15,922 8,349
Total revenues 152,769 143,791 154,676 142,213
EXPENSES (2):
Maintenance, taxes, utilities, and promotion 38,085 43,757 39,519 41,795
Other operating 21,034 5,125 22,098 6,591
Management, leasing, and development services 408 595
General and administrative 8,522 9,416
Restructuring charge (77 ) 416
Costs associated with shareowner activism 5,000 5,000
Interest expense 33,023 33,650 26,746 34,721
Depreciation and amortization 42,996 33,949 39,442 34,146
Total expenses 148,991 116,481 143,232 117,253
Nonoperating income, net (3) 12,301 581 3,074 360
16,079 27,891 14,518 25,320
Income tax expense (28 ) (1,527 ) (113 ) (1,220 )
26,364 24,100
Equity in income of Unconsolidated Joint Ventures 14,042 13,258
Net income 30,093 27,663
Net income attributable to noncontrolling interests:
Noncontrolling share of income of consolidated joint ventures (1,480 ) (1,605 )
Noncontrolling share of income of TRG (6,922 ) (6,214 )
Distributions to participating securities of TRG (599 ) (576 )
Preferred stock dividends (5,785 ) (5,785 )
Net income attributable to Taubman Centers, Inc. common shareowners 15,307 13,483
SUPPLEMENTAL INFORMATION:
EBITDA – 100% 92,098 95,490 80,706 94,187
EBITDA – outside partners’ share (6,258 ) (46,206 ) (6,456 ) (45,041 )
Beneficial interest in EBITDA 85,840 49,284 74,250 49,146
Beneficial interest expense (29,995 ) (17,263 ) (23,749 ) (17,849 )
Beneficial income tax expense – TRG and TCO 5 (654 ) (70 ) (518 )
Beneficial income tax expense – TCO 2
Non-real estate depreciation (1,128 ) (745 )
Preferred dividends and distributions (5,785 ) (5,785 )
Funds from Operations attributable to partnership unitholders and participating securities of TRG 48,937 31,367 43,903 30,779
STRAIGHTLINE AND PURCHASE ACCOUNTING ADJUSTMENTS:
Net straight-line adjustments to rental revenue, recoveries, and ground rent expense at TRG% 699 441 483 246
Country Club Plaza purchase accounting adjustments – minimum rents increase at TRG% (100 ) 2
The Mall at Green Hills purchase accounting adjustments – minimum rents increase 27 33
(1) With the exception of the Supplemental Information, amounts include 100% of the Unconsolidated Joint Ventures. Amounts are net of intercompany transactions. The Unconsolidated Joint Ventures are presented at 100% in order to allow for measurement of their performance as a whole, without regard to the Company’s ownership interest.
(2) Certain expenses of Starfield Hanam, which were previously classified in “Other operating” expense, are now included in “Maintenance, taxes, utilities and promotion” expense. Amounts for 2017 have been reclassified to conform to the 2018 classification.
(3) During the three months ended June 30, 2018, a gain of $9.3 million was recognized for the fluctuation in the fair value of the SPG common shares investment. In connection with the adoption of Accounting Standards Update No. 2016-01 on January 1, 2018, the Company now measures its investment in SPG common shares at fair value with changes in value recorded through net income.
TAUBMAN CENTERS, INC.
Table 2 – Income Statement
For the Six Months Ended June 30, 2018 and 2017
(in thousands of dollars)
2018 2017
CONSOLIDATED UNCONSOLIDATED CONSOLIDATED UNCONSOLIDATED
BUSINESSES

JOINT VENTURES (1)

BUSINESSES

JOINT VENTURES (1)

REVENUES:
Minimum rents 174,405 179,775 171,090 168,482
Overage rents 4,190 11,670 3,754 10,277
Expense recoveries 102,081 89,396 102,425 89,440
Management, leasing, and development services 1,620 2,292
Other 31,965 18,238 24,198 14,614
Total revenues 314,261 299,079 303,759 282,813
EXPENSES (2):
Maintenance, taxes, utilities, and promotion 75,722 84,135 79,230 79,976
Other operating 44,900 15,111 41,417 13,527
Management, leasing, and development services 710 1,174
General and administrative 17,015 20,167
Restructuring charge (423 ) 2,312
Costs associated with shareowner activism 8,500 8,500
Interest expense 63,846 66,117 52,292 65,090
Depreciation and amortization 78,018 67,418 77,153 64,654
Total expenses 288,288 232,781 282,245 223,247
Nonoperating income, net (3) 5,158 928 5,853 2,211
31,131 67,226 27,367 61,777
Income tax expense (212 ) (3,264 ) (321 ) (4,163 )
63,962 57,614
Gain on disposition, net of tax (4) 3,713
63,962 61,327
Equity in income of Unconsolidated Joint Ventures 33,770 33,376
Net income 64,689 60,422
Net income attributable to noncontrolling interests:
Noncontrolling share of income of consolidated joint ventures (2,824 ) (3,049 )
Noncontrolling share of income of TRG (15,201 ) (14,004 )
Distributions to participating securities of TRG (1,198 ) (1,147 )
Preferred stock dividends (11,569 ) (11,569 )
Net income attributable to Taubman Centers, Inc. common shareowners 33,897 30,653
SUPPLEMENTAL INFORMATION:
EBITDA – 100% 172,995 200,761 156,812 195,965
EBITDA – outside partners’ share (12,515 ) (97,233 ) (12,702 ) (92,904 )
Beneficial interest in EBITDA 160,480 103,528 144,110 103,061
Beneficial share of gain on disposition (3) (2,814 )
Beneficial interest expense (57,807 ) (34,014 ) (46,320 ) (33,630 )
Beneficial income tax expense – TRG and TCO (129 ) (1,364 ) (247 ) (2,151 )
Beneficial income tax expense – TCO 3 102
Non-real estate depreciation (2,264 ) (1,434 )
Preferred dividends and distributions (11,569 ) (11,569 )
Funds from Operations attributable to partnership unitholders and participating securities of TRG 88,714 68,150 84,642 64,466
STRAIGHTLINE AND PURCHASE ACCOUNTING ADJUSTMENTS:
Net straight-line adjustments to rental revenue, recoveries, and ground rent expense at TRG% 1,355 1,152 435 647
Country Club Plaza purchase accounting adjustments – minimum rents increase at TRG% 1,387 54
The Mall at Green Hills purchase accounting adjustments – minimum rents increase 58 82
(1) With the exception of the Supplemental Information, amounts include 100% of the Unconsolidated Joint Ventures. Amounts are net of intercompany transactions. The Unconsolidated Joint Ventures are presented at 100% in order to allow for measurement of their performance as a whole, without regard to the Company’s ownership interest.
(2) Certain expenses of Starfield Hanam, which were previously classified in “Other operating” expense, are now included in “Maintenance, taxes, utilities and promotion” expense. Amounts for 2017 have been reclassified to conform to the 2018 classification.
(3) During the six months ended June 30, 2018, an expense of $0.9 million was incurred for the fluctuation in the fair value of the SPG common shares investment. In connection with the adoption of Accounting Standards Update No. 2016-01 on January 1, 2018, the Company now measures its investment in SPG common shares at fair value with changes in value recorded through net income.
(4) During the six months ended June 30, 2017, the joint venture that owns the Valencia Place office tower at Country Club Plaza recognized a $4.4 million gain ($2.8 million at TRG’s share) and $0.7 million of income tax expense ($0.7 million at TRG’s share) in connection with the sale of the office tower.

TAUBMAN CENTERS, INC.

Use of Non-GAAP Financial Measures

The Company uses certain non-GAAP operating measures, including EBITDA, beneficial interest in EBITDA, Net Operating Income, and Funds from Operations. These measures are reconciled to the most comparable GAAP measures. Additional information as to the use of these measures are as follows.

EBITDA represents earnings before interest, income taxes, and depreciation and amortization of the Operating Partnership’s consolidated and unconsolidated businesses. Beneficial interest in EBITDA represents the Operating Partnership’s share of the earnings before interest, income taxes, and depreciation and amortization of its consolidated and unconsolidated businesses. The Company believes EBITDA and beneficial interest in EBITDA provide useful indicators of operating performance, as it is customary in the real estate and shopping center business to evaluate the performance of properties on a basis unaffected by capital structure.

The Company uses Net Operating Income (NOI) as an alternative measure to evaluate the operating performance of centers, both on individual and stabilized portfolio bases, and in formulating corporate goals and compensation. The Company defines NOI as property-level operating revenues (includes rental income excluding straight-line adjustments of minimum rent) less maintenance, property taxes, utilities, promotion, ground rent (including straight-line adjustments), and other property operating expenses. Since NOI excludes general and administrative expenses, pre-development charges, interest income and expense, depreciation and amortization, impairment charges, restructuring charges, and gains from peripheral land and property dispositions, it provides a performance measure that, when compared period over period, reflects the revenues and expenses most directly associated with owning and operating rental properties, as well as the impact on their operations from trends in tenant sales, occupancy and rental rates, and operating costs. The Company also uses NOI excluding lease cancellation income as an alternative measure because this income may vary significantly from period to period, which can affect comparability and trend analysis. The Company generally provides separate projections for expected comparable center NOI growth and lease cancellation income. Comparable centers are generally defined as centers that were owned and open for the entire current and preceding period presented, excluding centers impacted by significant redevelopment activity. In addition, The Mall of San Juan has been excluded from “comparable center” statistics as a result of Hurricane Maria and the expectation that the center’s performance will be impacted for the foreseeable future.

The National Association of Real Estate Investment Trusts (NAREIT) defines Funds from Operations (FFO) as net income (computed in accordance with Generally Accepted Accounting Principles (GAAP)), excluding gains (or losses) from extraordinary items and sales of properties and impairment writedowns of depreciable real estate, plus real estate related depreciation and after adjustments for unconsolidated partnerships and joint ventures. The Company believes that FFO is a useful supplemental measure of operating performance for REITs. Historical cost accounting for real estate assets implicitly assumes that the value of real estate assets diminishes predictably over time. Since real estate values instead have historically risen or fallen with market conditions, the Company and most industry investors and analysts have considered presentations of operating results that exclude historical cost depreciation to be useful in evaluating the operating performance of REITs. The Company primarily uses FFO in measuring performance and in formulating corporate goals and compensation.

The Company may also present adjusted versions of NOI, beneficial interest in EBITDA, and FFO when used by management to evaluate operating performance when certain significant items have impacted results that affect comparability with prior or future periods due to the nature or amounts of these items. The Company believes the disclosure of the adjusted items is similarly useful to investors and others to understand management’s view on comparability of such measures between periods. For the three and six months ended June 30, 2018, FFO and EBITDA were adjusted to exclude a reduction of a previously expensed restructuring charge, costs incurred associated with shareowner activism, and the fluctuation in the fair value of the SPG common shares investment. For the six months ended June 30, 2018, FFO was also adjusted for a charge recognized in connection with the write-off of deferred financing costs related to the early payoff of our $475 million unsecured term loan. For the three and six months ended June 30, 2017, FFO and EBITDA were adjusted to exclude a restructuring charge and costs incurred associated with shareowner activism. For the six months ended June 30, 2017, FFO was also adjusted for a charge recognized in connection with the partial write-off of deferred financing costs related to an amendment of our primary unsecured revolving line of credit in February 2017. For the six months ended June 30, 2017, EBITDA was also adjusted to exclude a gain recognized in connection with the sale of the Valencia Place office tower at Country Club Plaza.

These non-GAAP measures as presented by the Company are not necessarily comparable to similarly titled measures used by other REITs due to the fact that not all REITs use the same definitions. These measures should not be considered alternatives to net income or as an indicator of the Company’s operating performance. Additionally, these measures do not represent cash flows from operating, investing, or financing activities as defined by GAAP.

The Company provides its beneficial interest in certain financial information of its Unconsolidated Joint Ventures. This beneficial information is derived as the Company’s ownership interest in the investee multiplied by the specific financial statement item being presented. Investors are cautioned that deriving the Company’s beneficial interest in this manner may not accurately depict the legal and economic implications of holding a non-controlling interest in the investee.

TAUBMAN CENTERS, INC.
Table 3 – Reconciliation of Net Income Attributable to Taubman Centers, Inc. Common Shareowners to Funds From Operations and Adjusted Funds From Operations
For the Three Months Ended June 30, 2018 and 2017
(in thousands of dollars except as noted; may not add or recalculate due to rounding)
2018 2017
Shares Per Share Shares Per Share
Dollars /Units /Unit Dollars /Units /Unit
Net income attributable to TCO common shareowners – basic 15,307 60,992,200 0.25 13,483 60,694,727 0.22
Add impact of share-based compensation 17 240,333 22 306,861
Net income attributable to TCO common shareowners – diluted 15,324 61,232,533 0.25 13,505 61,001,588 0.22
Add depreciation of TCO’s additional basis 1,617 0.03 1,617 0.03
Add TCO’s additional income tax expense 0.00 2 0.00
Net income attributable to TCO common shareowners,

excluding step-up depreciation and additional income tax expense

16,941 61,232,533 0.28 15,124 61,001,588 0.25
Add noncontrolling share of income of TRG 6,922 24,951,981 6,214 24,970,351
Add distributions to participating securities of TRG 599 871,262 576 871,262
Net income attributable to partnership unitholders

and participating securities of TRG

24,462 87,055,776 0.28 21,914 86,843,201 0.25
Add (less) depreciation and amortization:
Consolidated businesses at 100% 42,996 0.49 39,442 0.45
Depreciation of TCO’s additional basis (1,617 ) (0.02 ) (1,617 ) (0.02 )
Noncontrolling partners in consolidated joint ventures (1,717 ) (0.02 ) (1,811 ) (0.02 )
Share of Unconsolidated Joint Ventures 17,325 0.20 17,521 0.20
Non-real estate depreciation (1,128 ) (0.01 ) (745 ) (0.01 )
Less impact of share-based compensation (17 ) (0.00 ) (22 ) (0.00 )
Funds from Operations attributable to partnership unitholders

and participating securities of TRG

80,304 87,055,776 0.92 74,682 86,843,201 0.86
TCO’s average ownership percentage of TRG – basic (1) 71.0 % 70.9 %
Funds from Operations attributable to TCO’s common shareowners,

excluding additional income tax expense (1)

56,990 0.92 52,913 0.86
Less TCO’s additional income tax expense 0.00 (2 ) (0.00 )
Funds from Operations attributable to TCO’s common shareowners (1) 56,990 0.92 52,911 0.86
Funds from Operations attributable to partnership unitholders

and participating securities of TRG

80,304 87,055,776 0.92 74,682 86,843,201 0.86
Restructuring charge (77 ) (0.00 ) 416 0.00
Costs associated with shareowner activism 5,000 0.06 5,000 0.06
Fluctuation in fair value of SPG common shares investment (9,348 ) (0.11 )
Adjusted Funds from Operations attributable to partnership unitholders

and participating securities of TRG

75,879 87,055,776 0.87 80,098 86,843,201 0.92
TCO’s average ownership percentage of TRG – basic (2) 71.0 % 70.9 %
Adjusted Funds from Operations attributable to TCO’s common shareowners (2) 53,849 0.87 56,750 0.92
(1) For the three months ended June 30, 2018, Funds from Operations attributable to TCO’s common shareowners was $56,262 using TCO’s diluted average ownership percentage of TRG of 70.1%. For the three months ended June 30, 2017, Funds from Operations attributable to TCO’s common shareowners was $52,193 using TCO’s diluted average ownership percentage of TRG of 69.9%.
(2) For the three months ended June 30, 2018, Adjusted Funds from Operations attributable to TCO’s common shareowners was $53,162 using TCO’s diluted average ownership percentage of TRG of 70.1%. For the three months ended June 30, 2017, Adjusted Funds from Operations attributable to TCO’s common shareowners was $55,981 using TCO’s diluted average ownership percentage of TRG of 69.9%.
TAUBMAN CENTERS, INC.
Table 4 – Reconciliation of Net Income Attributable to Taubman Centers, Inc. Common Shareowners to Funds from Operations and Adjusted Funds from Operations
For the Six Months Ended June 30, 2018 and 2017
(in thousands of dollars except as noted; may not add or recalculate due to rounding)
2018 2017
Shares Per Share Shares Per Share
Dollars /Units /Unit Dollars /Units /Unit
Net income attributable to TCO common shareowners – basic 33,897 60,954,924 0.56 30,653 60,625,481 0.51
Add impact of share-based compensation 46 264,738 67 402,760
Net income attributable to TCO common shareowners – diluted 33,943 61,219,662 0.55 30,720 61,028,241 0.50
Add depreciation of TCO’s additional basis 3,234 0.05 3,234 0.05
Add TCO’s additional income tax expense 3 0.00 102 0.00
Net income attributable to TCO common shareowners,

excluding step-up depreciation and additional income tax expense

37,180 61,219,662 0.60 34,056 61,028,241 0.56
Add noncontrolling share of income of TRG 15,201 24,953,313 14,004 24,974,128
Add distributions to participating securities of TRG 1,198 871,262 1,147 871,262
Net income attributable to partnership unitholders

and participating securities of TRG

53,579 87,044,237 0.60 49,207 86,873,631 0.57
Add (less) depreciation and amortization:
Consolidated businesses at 100% 78,018 0.90 77,153 0.89
Depreciation of TCO’s additional basis (3,234 ) (0.04 ) (3,234 ) (0.04 )
Noncontrolling partners in consolidated joint ventures (3,569 ) (0.04 ) (3,607 ) (0.04 )
Share of Unconsolidated Joint Ventures 34,380 0.39 33,173 0.38
Non-real estate depreciation (2,264 ) (0.03 ) (1,434 ) (0.02 )
Less beneficial gain on disposition, net of tax (2,083 ) (0.02 )
Less impact of share-based compensation (46 ) (0.00 ) (67 ) (0.00 )
Funds from Operations attributable to partnership unitholders

and participating securities of TRG

156,864 87,044,237 1.80 149,108 86,873,631 1.72
TCO’s average ownership percentage of TRG – basic (1) 71.0 % 70.8 %
Funds from Operations attributable to TCO’s common shareowners,

excluding additional income tax expense (1)

111,301 1.80 105,605 1.72
Less TCO’s additional income tax expense (3 ) (0.00 ) (102 ) (0.00 )
Funds from Operations attributable to TCO’s common shareowners (1) 111,298 1.80 105,503 1.71
Funds from Operations attributable to partnership unitholders

and participating securities of TRG

156,864 87,044,237 1.80 149,108 86,873,631 1.72
Restructuring charge (423 ) (0.00 ) 2,312 0.03
Costs associated with shareowner activism 8,500 0.10 8,500 0.10
Fluctuation in fair value of SPG common shares investment 914 0.01
Partial write-off of deferred financing costs 382 0.00 413 0.00
Adjusted Funds from Operations attributable to partnership unitholders

and participating securities of TRG

166,237 87,044,237 1.91 160,333 86,873,631 1.85
TCO’s average ownership percentage of TRG – basic (2) 71.0 % 70.8 %
Adjusted Funds from Operations attributable to TCO’s common shareowners (2) 117,949 1.91 113,555 1.85
(1) For the six months ended June 30, 2018, Funds from Operations attributable to TCO’s common shareowners was $109,847 using TCO’s diluted average ownership percentage of TRG of 70.0%. For the six months ended June 30, 2017, Funds from Operations attributable to TCO’s common shareowners was $103,954 using TCO’s diluted average ownership percentage of TRG of 69.8%.
(2) For the six months ended June 30, 2018, Adjusted Funds from Operations attributable to TCO’s common shareowners was $116,407 using TCO’s diluted average ownership percentage of TRG of 70.0%. For the six months ended June 30, 2017, Adjusted Funds from Operations attributable to TCO’s common shareowners was $111,890 using TCO’s diluted average ownership percentage of TRG of 69.8%.
TAUBMAN CENTERS, INC.
Table 5 – Reconciliation of Net Income to Beneficial Interest in EBITDA and Adjusted Beneficial Interest in EBITDA
For the Periods Ended June 30, 2018 and 2017
(in thousands of dollars; amounts attributable to TCO may not recalculate due to rounding)
Three Months Ended Year to Date
2018 2017 2018 2017
Net income 30,093 27,663 64,689 60,422
Add (less) depreciation and amortization:
Consolidated businesses at 100% 42,996 39,442 78,018 77,153
Noncontrolling partners in consolidated joint ventures (1,717 ) (1,811 ) (3,569 ) (3,607 )
Share of Unconsolidated Joint Ventures 17,325 17,521 34,380 33,173
Add (less) interest expense and income tax expense:
Interest expense:
Consolidated businesses at 100% 33,023 26,746 63,846 52,292
Noncontrolling partners in consolidated joint ventures (3,028 ) (2,997 ) (6,039 ) (5,972 )
Share of Unconsolidated Joint Ventures 17,263 17,849 34,014 33,630
Income tax expense:
Consolidated businesses at 100% 28 113 212 321
Noncontrolling partners in consolidated joint ventures (33 ) (43 ) (83 ) (74 )
Share of Unconsolidated Joint Ventures 654 518 1,364 2,151
Share of income tax expense on disposition 731
Less noncontrolling share of income of consolidated joint ventures (1,480 ) (1,605 ) (2,824 ) (3,049 )
Beneficial interest in EBITDA 135,124 123,396 264,008 247,171
TCO’s average ownership percentage of TRG – basic 71.0 % 70.9 % 71.0 % 70.8 %
Beneficial interest in EBITDA attributable to TCO 95,894 87,428 187,324 175,058
Beneficial interest in EBITDA 135,124 123,396 264,008 247,171
Add (less):
Restructuring charge (77 ) 416 (423 ) 2,312
Costs associated with shareowner activism 5,000 5,000 8,500 8,500
Fluctuation in the fair value of SPG common shares investment (9,348 ) 914
Beneficial share of gain on disposition (2,814 )
Adjusted Beneficial interest in EBITDA 130,699 128,812 272,999 255,169
TCO’s average ownership percentage of TRG – basic 71 % 70.9 % 71.0 % 70.8 %
Adjusted Beneficial interest in EBITDA attributable to TCO 92,753 91,265 193,700 180,723
TAUBMAN CENTERS, INC.
Table 6 – Reconciliation of Net Income to Net Operating Income (NOI)
For the Three Months Ended June 30, 2018, 2017, and 2016
(in thousands of dollars)
Three Months Ended Three Months Ended
2018 2017 2017 2016
Net income 30,093 27,663 27,663 57,744
Add (less) depreciation and amortization:
Consolidated businesses at 100% 42,996 39,442 39,442 29,716
Noncontrolling partners in consolidated joint ventures (1,717 ) (1,811 ) (1,811 ) (1,267 )
Share of Unconsolidated Joint Ventures 17,325 17,521 17,521 11,669
Add (less) interest expense and income tax expense (benefit):
Interest expense:
Consolidated businesses at 100% 33,023 26,746 26,746 20,588
Noncontrolling partners in consolidated joint ventures (3,028 ) (2,997 ) (2,997 ) (2,566 )
Share of Unconsolidated Joint Ventures 17,263 17,849 17,849 13,207
Income tax expense:
Consolidated businesses at 100% 28 113 113 434
Noncontrolling partners in consolidated joint ventures (33 ) (43 ) (43 )
Share of Unconsolidated Joint Ventures 654 518 518
Less noncontrolling share of income of consolidated joint ventures (1,480 ) (1,605 ) (1,605 ) (1,630 )
Add EBITDA attributable to outside partners:
EBITDA attributable to noncontrolling partners in consolidated joint ventures 6,258 6,456 6,456 5,471
EBITDA attributable to outside partners in Unconsolidated Joint Ventures 46,206 45,041 45,041 31,869
EBITDA at 100% 187,588 174,893 174,893 165,235
Add (less) items excluded from shopping center NOI:
General and administrative expenses 8,522 9,416 9,416 11,693
Management, leasing, and development services, net (418 ) (780 ) (780 ) (22,302 ) (1)
Restructuring charge (77 ) 416 416
Costs associated with shareowner activism 5,000 5,000 5,000
Straight-line of rents (1,927 ) (2,869 ) (2,869 ) (2,024 )
Fluctuation in fair value of SPG common shares investment (9,348 )
Insurance recoveries – The Mall of San Juan (360 )
Dividend income (1,150 ) (1,033 ) (1,033 ) (944 )
Interest income (2,024 ) (2,245 ) (2,245 ) (1,760 )
Other nonoperating income (156 ) (156 ) (832 )
Unallocated operating expenses and other 8,402 9,054 9,054 12,148
NOI at 100% – total portfolio 194,208 191,696 191,696 161,214
Less NOI of non-comparable centers (13,799 ) (2) (14,315 ) (2) (36,843 ) (3) (15,841 ) (4)
NOI at 100% – comparable centers 180,409 177,381 154,853 145,373
NOI – growth % 1.7 % 6.5 %
NOI at 100% – comparable centers 180,409 177,381 154,853 145,373
Lease cancellation income (2,060 ) (5,139 ) (5,671 ) (251 )
NOI at 100% – comparable centers excluding lease cancellation income 178,349 172,242 149,182 145,122
NOI at 100% excluding lease cancellation income – growth % 3.5 % 2.8 %

(1)

Amount includes the lump sum payment of $21.7 million received in May 2016 in connection with the termination of the Company’s third party leasing agreement for Crystals due to a change in ownership of the center.

(2)

Includes Beverly Center, CityOn.Zhengzhou, The Mall of San Juan, and Taubman Prestige Outlets Chesterfield.

(3)

Includes Beverly Center, CityOn.Xi’an, CityOn.Zhengzhou, Country Club Plaza, International Market Place, and Starfield Hanam.

(4)

Includes Beverly Center, CityOn.Xi’an, and Country Club Plaza.
TAUBMAN CENTERS, INC.
Table 7 – Reconciliation of Net Income to Net Operating Income (NOI)
For the Six Months Ended June 30, 2018, 2017, and 2016
(in thousands of dollars)
Year to Date Year to Date
2018 2017 2017 2016
Net income 64,689 60,422 60,422 102,073
Add (less) depreciation and amortization:
Consolidated businesses at 100% 78,018 77,153 77,153 59,462
Noncontrolling partners in consolidated joint ventures (3,569 ) (3,607 ) (3,607 ) (2,686 )
Share of Unconsolidated Joint Ventures 34,380 33,173 33,173 21,004
Add (less) interest expense and income tax expense (benefit):
Interest expense:
Consolidated businesses at 100% 63,846 52,292 52,292 39,716
Noncontrolling partners in consolidated joint ventures (6,039 ) (5,972 ) (5,972 ) (4,518 )
Share of Unconsolidated Joint Ventures 34,014 33,630 33,630 24,735
Income tax expense:
Consolidated businesses at 100% 212 321 321 736
Noncontrolling partners in consolidated joint ventures (83 ) (74 ) (74 )
Share of Unconsolidated Joint Ventures 1,364 2,151 2,151
Share of income tax expense on disposition 731 731
Less noncontrolling share of income of consolidated joint ventures (2,824 ) (3,049 ) (3,049 ) (4,151 )
Add EBITDA attributable to outside partners:
EBITDA attributable to noncontrolling partners in consolidated joint ventures 12,515 12,702 12,702 11,363
EBITDA attributable to outside partners in Unconsolidated Joint Ventures 97,233 92,904 92,904 62,777
EBITDA at 100% 373,756 352,777 352,777 310,511
Add (less) items excluded from shopping center NOI:
General and administrative expenses 17,015 20,167 20,167 23,073
Management, leasing, and development services, net (910 ) (1,118 ) (1,118 ) (23,158 ) (1)
Restructuring charge (423 ) 2,312 2,312
Costs associated with shareowner activism 8,500 8,500 8,500
Straight-line of rents (7,414 ) (4,725 ) (4,725 ) (3,138 )
Fluctuation in fair value of SPG common shares investment 914
Insurance recoveries – The Mall of San Juan (1,030 )
Gain on disposition (4,445 ) (4,445 )
Gains on sales of peripheral land (1,668 ) (1,668 ) (403 )
Dividend income (2,301 ) (2,066 ) (2,066 ) (1,888 )
Interest income (3,644 ) (4,277 ) (4,277 ) (2,272 )
Other nonoperating expense (income) (25 ) (53 ) (53 ) (689 )
Unallocated operating expenses and other 16,523 16,376 16,376 22,176
NOI at 100% – total portfolio 400,961 381,780 381,780 324,212
Less NOI of non-comparable centers (26,602 ) (2) (26,725 ) (2) (70,767 ) (3) (28,491 ) (4)
NOI at 100% – comparable centers 374,359 355,055 311,013 295,721
NOI – growth % 5.4 % 5.2 %
NOI at 100% – comparable centers 374,359 355,055 311,013 295,721
Lease cancellation income (13,744 ) (8,746 ) (9,279 ) (2,226 )
NOI at 100% – comparable centers excluding lease cancellation income 360,615 346,309 301,734 293,495
NOI at 100% excluding lease cancellation income – growth % 4.1 % 2.8 %

(1)

Amount includes the lump sum payment of $21.7 million received in May 2016 in connection with the termination of the Company’s third party leasing agreement for Crystals due to a change in ownership of the center.

(2)

Includes Beverly Center, CityOn.Zhengzhou, The Mall of San Juan, and Taubman Prestige Outlets Chesterfield.

(3)

Includes Beverly Center, CityOn.Xi’an, CityOn.Zhengzhou, Country Club Plaza, International Market Place, and Starfield Hanam.

(4)

Includes Beverly Center, CityOn.Xi’an, and Country Club Plaza.
TAUBMAN CENTERS, INC.
Table 8 – 2018 Annual Guidance
(all dollar amounts per common share on a diluted basis; amounts may not add due to rounding)
Range for the Year Ended
December 31, 2018
Adjusted Funds from Operations per common share 3.74 3.84
Costs associated with shareowner activism (1) (0.10 ) (0.10 )
Fluctuations in fair value of SPG common shares investment (1) (0.01 ) (0.01 )
Funds from Operations per common share 3.63 3.73
Real estate depreciation – TRG (2.37 ) (2.33 )
Distributions to participating securities of TRG (0.03 ) (0.03 )
Depreciation of TCO’s additional basis in TRG (0.11 ) (0.11 )
Net income attributable to common shareowners, per common share (EPS) 1.11 1.26

(1) Amount represents actual amounts recognized through the second quarter of 2018. Amount does not include future assumptions of amounts to be incurred during 2018. In connection with the adoption of Accounting Standards Update No. 2016-01 on January 1, 2018, the Company now measures its investment in SPG common shares at fair value with changes in value recorded through net income.

Female health IT leaders to know – Becker’s Hospital Review

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CSI Healthcare IT has been assisting healthcare organizations with the implementation of IT solutions for over 24 years. Today, CSI Healthcare IT is a leading national provider of healthcare IT talent, from customized EHR solutions to ongoing staff augmentation for the rapidly evolving healthcare IT market. Our experienced professionals have assisted hundreds of clients in achieving meaningful outcomes in the advancement of information-driven healthcare.

Laura Adams. President and CEO of Rhode Island Quality Institute. Ms. Adams helms the Rhode Island Quality Institute, a nonprofit dedicated to improving health and healthcare. Under her leadership, the institute has won several major HITECH health IT grants and a national 2018 Healthcare Informatics Innovation Award for work related to the opioid epidemic. Ms. Adams’ health IT experience is vast, including participating on ONC’s HIT Policy Committee’s governance panel for the Nationwide Health Information Network and the HIMSS Center for Patient and Family Centered Care Advisory Group. She currently serves as co-chair of the National Academy of Medicine’s Health Data Trust Initiative.

Robin Adams. Vice President of Business Development at Urac. Ms. Adams brings more than 20 years of experience in pediatric academic and community-based health systems to Urac. Before joining Urac, she worked at Children’s National Health System in Washington, D.C., where she played a key role in the population health-based strategy supporting the development of the system’s regional outpatient center strategy. She also was chief growth officer at Falls Church, Va.-based Inova Health System.

Lisa Archer. Senior Vice President of People and Culture at American Well. Ms. Archer joined health IT provider American Well as the senior vice president of people and culture in March 2017. Most recently, she was Dynatrace’s chief human resources officer, where she was an executive leader. At Dynatrace, Ms. Archer built a global human resources team responsible for supporting 1,800 employees. Before joining Dynatrace, she held executive human resources roles at Microsoft, EMC and Parametric Technology Corp. At American Well, Ms. Archer plays a key role in human resources strategy in support of the organization’s overall business plan and direction. She also offers guidance in talent acquisition, leadership development, succession planning and total rewards.

Pamela Arora. Senior Vice President of Information Services and CIO of Children’s Health (Dallas) Ms. Arora brings more than 30 years of IT experience to Children’s Health. She directs the organization’s information services groups and oversees systems and technology, health information management and biomedical technology and support. Ms. Arora joined Children’s Health in 2007, and the three-hospital health system achieved the HIMSS Stage 7 EMR Adoption designation three years later and earned the HIMSS Enterprise Davies Award for innovative use of EHRs in 2013. Her previous jobs include senior vice president and CIO of Worcester, Mass.-based UMass Memorial Health Care and CIO of Dallas-based Perot Systems.

Robyn Baek. Vice President of Analytics and Insights at SOC Telemed. At SOC, Ms. Baek leads the company’s financial planning and analysis. The role involves forecasting, budgeting, corporate development and strategic planning. Before joining SOC, Ms. Baek was an investment banker at Citigroup and a management consultant at Booz Allen Hamilton, a global management and IT consulting firm.

Denise Basow, MD. President and CEO of Clinical Effectiveness at Wolters Kluwer. At Wolters Kluwer, Dr. Basow helms the information services and solutions provider’s clinical software solutions business unit. She took over the position, which is part of the healthcare division, in August 2015. Before that, she was vice president and general manager of clinical decision support at Wolters Kluwer.

Ann Marie Beasley. Senior Vice President and Chief Marketing Officer at Allscripts. Ms. Beasley joined Allscripts in 2013 as vice president of market strategy. She then served as vice president of marketing for the company before becoming senior vice president and chief marketing officer last year. She is responsible for developing marketing initiatives.

Kelly Bliss. Chief Client Officer at Teladoc. Ms. Bliss focuses on Teladoc’s global client services strategies. She is a former chief of staff at Best Doctors, a global health benefits provider that integrated with Teladoc. She also helped build and manage global teams at InterSystems and TRO-Design.

Jenna Bourgeois. CEO of Dynamics Intelligence (U.S. and Canada). Ms. Bourgeois helms Dynamics Intelligence, a software company that specializes in the Microsoft technology stack. She brings 25 years of technology consulting experience, as well as Microsoft trainer experience, to her role. She has several technical certifications.

Michele Brown. Chief Ethics and Compliance Officer at Leidos. Ms. Brown joined Leidos is 2008. Her current responsibilities include administering the company’s ethics and compliance program. She also is deputy general counsel with a focus on issues involving government and commercial contracting and regulatory compliance. She previously worked in private practice at Holland and Knight.

Julie Bushman. Executive Vice President of International Operations at 3M. Ms. Bushman is a veteran of 3M, joining the company more than three decades ago. She began her tenure there as a materials control analyst in 1983 and became CIO in 2003 after serving in various divisions and IT roles. Before becoming executive vice president of international operations last year, she also held roles including division vice president, executive vice president of 3M’s safety, security and protection services business, executive vice president of the safety and graphics business group and senior vice president of business transformation and IT. Her current responsibilities involve operations in 70 countries with more than 55,000 employees.

Bobbie Byrne, MD. CIO of Advocate Aurora Health (Downers Grove, Ill., and Milwaukee). Dr. Byrne serves as CIO of Advocate Aurora Health, the organization formed by the merger of Downers Grove, Ill.-based Advocate Health Care and Milwaukee-based Aurora Health Care. Before the merger, she was Advocate’s CIO. Before Advocate, she was executive vice president of consumer-driven health and chief medical and quality officer for Naperville, Ill.-based Edward-Elmhurst Health.

Kelli Castellano. Chief Marketing Officer at TigerConnect. Ms. Castellano serves as chief marketing officer at TigerConnect, a provider of clinical communication and collaboration technology software solutions. An experienced marketing and communications strategist, she brings more than 15 years of business-to-business marketing experience to the role. Ms. Castellano has served as senior vice president of marketing and communications for NextGen Healthcare. She also worked at technology companies, including Affiliated Computer Services and Companion Technologies.

Christine Chapman. Vice President of InterSystems TrakCare. Ms. Chapman has nearly 15 years of experience at InterSystems. She currently serves as vice president of the company’s unified health information system, TrakCare. She began her tenure as a service executive director at InterSystems, before becoming COO of InterSystems TrakCare. She also was executive vice president and COO of international healthcare company Picis, as well as vice president of the eHealth services division for Superior Consultant.

Eve Cline. Vice President of Marketing at TriBridge. Ms. Cline has more than 20 years of marketing experience. Her current responsibilities at tech services firm TriBridge include demand creation, product marketing and brand management, corporate communications, and digital marketing, among various other marketing functions. During her tenure at TriBridge, Ms. Cline has worked to develop and implement strategic programs and campaigns with the firm’s practice, product and solution groups.

Rhonda Collins, DNP, RN. CNO of Vocera Communications. Dr. Collins’ nursing career spans about three decades. Since January 2014, she has served as chief nursing officer for Vocera. Before joining the mobile healthcare communications company, she was vice president and business manager for Fresenius Kabi, USA. She also has served as vice president of women’s and children’s services at Dallas-based Baylor University Medical Center, as well as vice president of nursing at global medical technology company Masimo Corp.

Melinda Costin. Senior Vice President and CIO at JPS Health Network. Ms. Costin has more than four decades of healthcare and IT experience. Throughout her career, she has focused on healthcare informatics and the development of products that support EHRs. Her healthcare experience began with directing information systems at hospitals. She then moved to the vendor side of healthcare organizations, consulting, back to the hospital provider arena, and eventually to her current role as senior vice president and CIO at JPS Health Network since 2013. She has been active in the Healthcare Information and Management Systems Society, as well as the College of Health Information Management Executives in various positions. She was named been named one of the most powerful women in health IT by Health Data Management in 2016.

Janet Dillione. CEO of Bernoulli Health (Milford, Conn.). Ms. Dillione has more than 25 years of healthcare technology and services experience. Since 2014, she has helmed Bernoulli Health, a provider of clinical surveillance, medical device integration and real time data analytics solutions. She previously served as executive vice president and general manager of the Nuance Communications healthcare division, as well as CEO of Siemens Health Services, where she was responsible for 5,500 employees.

Ellen Donahue-Dalton. Executive Vice President and Chief Marketing Officer at Medecision. Ms. Donahue-Dalton serves as executive vice president and chief marketing officer at Medecision. In this role, she is responsible for company’s solution development and strategic marketing. he founded Dalton Marketing Group, which partners with for-profit and nonprofit organizations nationally in various sectors, including healthcare, insurance, professional services and technology. She is former vice president of worldwide marketing and former divisional president of Gtech Corp., a provider of global systems, software and services.

Karen Drenkard, PhD, RN. Senior Vice President and Chief Clinical and Nursing Officer at GetWellNetwork. Dr. Drenkard serves on the leadership team at GetWellNetwork, a patient engagement tech company. She is responsible for the development of a nursing model to improve patient experience through clinical practices and technology. She was chosen as co-chair of the Beryl Institute Nurse Executive Council, was executive director of the American Nurses Credentialing Center and is former director of the Magnet Recognition Program that recognizes nursing excellence.

Chiny Driscoll. Founder and CEO of MetiStream. Ms. Driscoll has vast experience in enterprise IT and as a business executive. In 2014, Ms. Driscoll launched MetiStream, a health IT company specializing in big data and analytic solutions. Before that, she was global head of services for IBM’s Information Management’s big data services practice. She previously served as vice president and general manager of global professional services at Netezza, which was acquired by IBM, as well as vice president of services and solutions at Tibco Software.

Bridget Duffy, MD. CMO of Vocera Communications and Co-founder of Experience Innovation Network. Dr. Duffy has more than 25 years of healthcare experience. Prior to taking on her current role, she co-founded and was CEO of ExperiaHealth, which was acquired by Vocera. ExperiaHealth is now known as the Experience Innovation Network and provides healthcare solutions and technologies focused on humanity. Throughout her career, Dr. Duffy has focused on the patient experience, and she established the first chief experience officer role in healthcare at the Cleveland Clinic in 2006.

Barbara Dumery. Senior Vice President of Product Management at Imprivata. Ms. Dumery brings about two decades of healthcare experience to Imprivata. During her tenure at the company, she has led product management for its single sign-on solution and its identity and multifactor authentication platform. She previously led product management at Verscend Technologies and spent seven years at Nuance.

Cheryl Lee Eberting, MD. Founder and CEO of Azova Health. Dr. Eberting, a board-certified dermatologist, brings strategic planning, e-commerce and health IT experience to Azova. She is a former clinical research fellow of the dermatology branch of the National Cancer Institute at the National Institutes of Health and a member of the American Contact Dermatitis Society. She founded CherylLeeMD Sensitive Skin Care and invented TrueLipids Skin Barrier Optimization and Repair Technology.

Carina Edwards. Senior Vice President of Customer Experience at Imprivata. Ms. Edwards has more than 20 years of healthcare technology experience. At Imprivata, she focuses on operational areas, including global professional services, global customer support and advocacy, business development and corporate IT. She also serves on the board of trustees of the College of Healthcare Information Management Executives.

Judy Faulkner. Founder and CEO of Epic Systems. Ms. Faulkner founded Human Services Computing, now known as Epic Systems, in 1979 after graduating from the University of Wisconsin-Madison with a master’s in computer science. The first office of Epic was in the basement of an apartment in Madison. The EHR giant has since grown to more than 9,000 employees and reported revenues around $2.6 billion in 2016. Ms. Faulkner made Forbes’ annual list of “The World’s Billionaires” for 2018, with worth of nearly $3.5 billion.

Virginia Feldman, MD. Co-founder and CEO of Nexus Health Resources. Dr. Feldman helms Nexus Health Resources, which provides transitional care software, services and patient engagement to healthcare organizations. In this role, she is responsible for the strategic direction of the company’s operations and product design. She also co-founded Middletown, N.Y.-based Hudson Valley Ambulatory Surgery Center, staffed by 33 independent surgeons and physicians.

Helen Figge, PharmD. Co-founder and Chief Communications and Public Relations Officer of CareFully. Ms. Figge is an industry expert with vast health IT experience. Before joining CareFully, she was senior vice president of global strategic development for LumiraDx USA, a healthcare solutions care management company. She also served as vice president of global clinical integrations accountable care solutions with Alere. In 2018, she was named among Health Data Management‘s most powerful women in health IT for the third consecutive year. Additionally, Ms. Figge consults for organizations that have an interest in positioning healthcare technology solutions with product development and go-to-market strategies. She is passionate about mentoring other health IT professionals and volunteers for several philanthropic organizations.

Deborah Gage. President and CEO of Medecision. Ms. Gage helms Medecision, a population health management and software-as-a-service company. She oversees the company’s mission and operations and directs its growth She worked at Medstat, now Truven Healthcare, and has served as CEO of various venture-backed healthcare IT firms.

Kourtney Govro. Founder and CEO of Sphere3. Ms. Govro helms Sphere3, which provides a patient data analytics platform called Aperum. An expert in nurse call design and point of care analytics, she founded the company after a hospital experience with one of her children. She has advised U.S. hospitals on patient communications platforms and was involved in published research notes in clinical nursing studies with the University of Missouri-Kansas City.

Kylanne Green. President and CEO of Urac. Ms. Green has 45 years of healthcare experience. She currently helms Urac, a healthcare accreditation organization. Before taking on that role in 2013, she was on the Urac board of directors, two years as chairman. Other experience includes: executive vice president at Falls Church, Va.-based Inova Health System; COO of Health Insurance Association of America; COO of Aetna Health Plans of the Mid-Atlantic; and area administrator of Kaiser Permanente Mid-Atlantic.

Nat’e Guyton. PhD, MSN, BSN, RN. CNO of Spok. Dr. Guyton brings to Spok more than 15 years of healthcare experience. Prior to joining Spok, she was chief clinical informatics officer for Conshohocken, Pa.-based Trinity Health-Mercy Health System, where she directed IT integrations and was responsible for clinical workflow redesigns, among other duties. Previous positions include CNO of East Norriton, Pa.-based Mercy Suburban Hospital, now Suburban Community Hospital; senior director of nursing operations at Wilmington, Del.-based St. Francis Hospital; and nurse manager of cardiac transplant and telemetry at Philadelphia-based Temple University Hospital.

Kyra Hagan. Senior Vice President of Marketing and Communications at Influence Health. Ms. Hagan has served in leadership at Cerner and Influence Health, a company specializing in numerous healthcare areas, including consumer experience, content management, hospital website strategy and design and digital marketing. In her current role at Influence, she creates marketing strategy and oversees various programs. Ms. Hagan also is a blogger, guest columnist and industry speaker.

Lindsay Hanrahan. Vice President of Product Management at Surgical Information Systems. Ms. Hanrahan is a professional with an array of health IT, software development and portfolio management experience. At SIS, she oversees product direction and strategy and ASC management and clinical software solutions. Previously she was director of product management at SourceMed, now part of SIS.

Michelle Harmon. Vice President of Client Services and National Accounts at Ludi. Ms. Harmon is an entrepreneurial, performance-based executive with 25 years of healthcare experience, Before joining Ludi, a healthcare technology company that helps hospitals and health systems improve their relationships with physicians, she worked at international and national healthcare executive search firm BE Smith.

Rebecca Hellmann, Chief Marketing Officer at Olive. Ms. Hellmann joined Olive, formerly CrossChx, in January. Prior to joining the healthcare artificial intelligence startup, she was vice president of marketing for pharmaceutical distributor Cardinal Health’s hospital solutions and global supply chain division. During her tenure at Cardinal Health, she was a member of the acquisition and integration team for a radio-frequency identification, data- enabled technology product for operating rooms and catheterization labs, and she introduced an end-to-end generation and management program. Ms. Hellmann also previously served as vice president of marketing at MedPlus, the healthcare IT subsidiary of Quest Diagnostics.

Kathleen Hogan. Chief People Officer and Executive Vice President of Human Resources at Microsoft. Ms. Hogan is a veteran of Microsoft, joining the company in 2003. She is responsible for making the company an exceptional place to work for 100,000-plus global employees and creating a culture that draws top talent. Previously, she was corporate vice president of Microsoft Services, as well as corporate vice president of customer service and support. She also worked at McKinsey and Co. and Oracle Corp.

Dawn Howarth. Senior Vice President and Chief Human Resources Officer at Nuance. At Nuance, Ms. Howarth’s focus includes the company’s talent management programs, as well as its strategic organizational initiatives and its acquisition diligence and implementation strategy. Before joining Nuance, she worked at UFP Technologies and Future Electronics in human resources management jobs. She is also active in NEHRA, one of the largest human resources organizations in the Northeast, and the Society for Human Resource Management.

Renee Hulen. Senior Director of IT and Clinical Informatics at SBH Health System (New York, N.Y.). Ms. Hulen has served in her current role since January 2016. She is responsible for various IT functional areas across SBH, including applications, clinical informatics, training, customer support, technical services and healthcare analytics. She also plays a key role in the development of clinical informatics projects and oversees hospitalwide applications and training. Previously, she was IT director over applications and clinical informatics at SBH.

Karen Ignagni. President and CEO of EmblemHealth. Ms. Ignagni has helmed EmblemHealth since September 2015. In this role, she leads a neighborhood health plan formed from Group Health and Health Insurance Plan of Greater New York. Before joining EmblemHealth, she was president and CEO of America’s Health Insurance Plans for more than 20 years. She also has been heavily involved with healthcare policy and was the director of the AFL-CIO’s employee benefits department.

Rhonda Jorden. Vice Chancellor for Information Technology and CIO at University of Arkansas for Medical Sciences (Little Rock). An IT professional for more than 30 years, Ms. Jorden was named to her role in 2014. Before that, she was director of technical operations and chief technology officer at the university. Her other previous roles at the university were in management of patient systems, software development, clinical systems operations, and a brief stint as interim CIO.

Erin Karam. Chief Technology Officer at PreparedHealth. Ms. Karam has served as CTO of PreparedHealth since June 2015. She is heavily involved in the execution of product vision of the company’s enTouch platform, which allows hospitals and home care providers to communicate about patients’ at-home care. Before joining PreparedHealth, Ms. Karam was director of solution delivery at Solstice Mobile.

Mara Kaufman. Vice President of Client Services at Doctor.com. Ms. Kaufman joined Doctor.com, a marketing automation platform for physicians and health systems, in April 2014 as director of client success. She now oversees post-sale teams including client success, operations and analytics. She began her healthcare technology career at ZocDoc.

Janice Kelly, RN-BC. President of AORN Syntegrity. Ms. Kelly helms AORN Syntegrity, an evidence-based perioperative documentation solution. In this role, she offers evidence-based perioperative content for EHRs, and plays a key role in the strategic plan for the AORN Syntegrity solution. A board-certified clinical informatics leader, she also serves as a clinical informatics advisor to C-suite members at healthcare organizations.

Karlene Kerfoot, PhD, RN, CNO of GE Healthcare. Dr. Kerfoot is a healthcare veteran, publisher and speaker. She has served in corporate chief nursing and patient care officer positions at some of the nation’s largest health systems, as well as in healthcare consulting and academic roles. Throughout her career, she has focused on retention, Magnet Recognition, patient safety, evidence-based staffing/scheduling, shared governance and staff and leader development.

Lisa Khorey. Executive Vice President and Chief Client Delivery Officer for Allscripts Healthcare Solutions. At Allscripts Healthcare Solutions, Ms. Khorey plays a key role in delivering Allscripts professional services, managed services, support and hosting solutions to healthcare organizations. She previously was executive director in Ernst & Young’s healthcare advisory services practice, specializing in analytics. Ms. Khorey also served in technology leadership roles at Pittsburgh-based UPMC, including time leading UPMC’s enterprise analytics program and time as a UPMC hospital CIO.

Liz Kirk. Senior Vice President of Client Services and Continuous Improvement Solutions of Strata Decision Technology. Ms. Kirk brings more than 15 years of hospital administrator and consulting experience to her role at Strata. She leads Strata’s client services team, and helps in product and strategy for the company. Ms. Kirk previously worked at Chicago-based Northwestern Memorial Hospital, where she played a key role in a $220 million costreduction project.

Erin Kitchen. Vice President of Marketing and Communications at Doctor.com. A marketing communications strategist, Ms. Kitchen provides her expertise to marketing automation platform Doctor.com. In her current role, she helps healthcare providers and organizations engage patients in the evolving digital landscape. She previously served as Doctor.com’s director of brand and communications.

Astrid Larsen. Director of Care Coordination at Centegra Health System (Crystal Lake, Ill.). Ms. Larsen is responsible for care management functions of Centegra Health System including Illinois hospitals in McHenry, Huntley and Woodstock, as well as medical offices and physician practices, the Centegra Health and Wellness Network insurance product, and ancillary clinics and wellness facilities. Prior to her current role, she was manager of crisis services for Centegra. She was also previously clinical manager of Pioneer Center for Human Services.

Patty Lavely. Senior Vice President and CIO for Gwinnett Medical Center (metro Atlanta). Ms. Lavely serves as senior vice president and CIO at Gwinnett Medical Center, a 553-bed nonprofit healthcare network serving the Atlanta metropolitan area. A leader in healthcare IT, she has served as CIO for multiple regional health systems in Georgia and as an interim CIO in New Jersey. At Gwinnett, she developed and implemented a strategy to improve overall accessibility and technology usage while enabling the health system to meet business goals. Currently, she serves on the Technology Association of Georgia board of directors, Georgia CIO Leadership Association advisory board, Georgia Chapter HIMSS board of directors and CHIME Opioid Task Force.

Melissa Leigh. General Counsel for Intermedix, an R1 company. Ms. Leigh has more than 25 years of healthcare legal and compliance experience. In 2012, she joined Intermedix, now part of R1 RCM. She has served in various roles at the company, including associate general counsel and chief compliance officer. She is currently general counsel at Intermedix, where she plays a key role in corporate, strategic and tactical legal initiatives.

Michelle Lichte. Executive Vice President of Client Partnerships at Nordic. Ms. Lichte brings to Nordic nearly 30 years of health IT experience. A veteran healthcare IT leader, her expertise includes managing EHR projects, implementation planning, solutions, and mergers and acquisitions. Before joining Nordic in July 2017, she held implementation executive roles at Epic, Peoria, Ill.-based OSF HealthCare, and an Epic consulting firm.

Kate Mays. Division President of CSI Healthcare IT. Ms. Mays was promoted to her current role in 2017 after serving as vice president of operations for the CSI Healthcare IT division. She first joined CSI in 2006, serving as sales director for healthcare staffing clients before joining the health IT division. During her career with the company, the health IT division grew 150 percent over three years.

Amy Merlino, MD. Enterprise Chief Medical Information Officer at Cleveland Clinic. Dr. Merlino, a maternal-fetal medicine specialist, has served as enterprise chief medical information officer at Cleveland Clinic since 2017. Before taking on that role, she served as director of clinical informatics, as well as associate chief medical information officer at Cleveland Clinic. She also continues to practice obstetrics and gynecology.

Pam Murphy. COO of Infor. Ms. Murphy joined Infor in December 2010. At the enterprise software provider, she served as senior vice president of corporate operations before becoming COO in October 2011. She previously worked at Oracle Corp., where her responsibilities included global sales operations and running consulting operations for Europe, the Middle East and Africa.

Kristin Myers. Senior Vice President of Technology at Mount Sinai Health System (New York City). Throughout her career as a health IT professional, Ms. Myers has worked as a vendor, independent contractor, consultant and hospital executive. She has served as senior vice president of technology at Mount Sinai Health System since April 2017. Prior to that, she was a vice president at the system, where she helped implement a $100 million Epic EHR program at Mount Sinai Medical Center. She also played a key role in developing a community physician EMR strategy and an interoperability strategy at the medical center.

Ashley Needham. Director of Corporate Initiatives at Validic. In her role, Ms. Needham is responsible for Validic’s marketing, branding, public relations, communications and clinical research initiatives. She began this position in July 2016 after serving as the company’s marketing manager. Prior to joining Validic, Ms. Needham was a marketing communications specialist at Innovative Learning Solutions, a business simulation company.

Jamie Nelson. Senior Vice President and CIO of Hospital for Special Surgery (New York City). Ms. Nelson brings about 35 years of healthcare experience to her CIO role, specifically in areas such as IT leadership and consulting, hospital operations, and performance improvement. At Hospital for Special Surgery, she played a key role in developing and implementing an IT strategy supporting the hospital’s strategic plan, as well as in the hospital’s Epic implementation across inpatient and ambulatory settings for clinical and revenue cycle applications. Before joining Hospital for Special Surgery, she held roles at Norwalk (Conn.) Hospital, New York City-based NewYork-Presbyterian Hospital and Memorial Sloan Kettering Cancer Center, also in New York City. She also worked at First Consulting Group, Ernst & Young and Innovatix.

Kristi Payne, LPN. COO of MDabstract. Ms. Payne, an SAS computer programmer and a certified NextGen Professional, has more than 23 years of healthcare experience. She has worked for UnitedHealthcare and Blue Cross and Blue Shield of Florida on cost containment and network development. She was also business office manager at Jacksonville (Fla.) Heart Center, now Baptist Heart Specialists, before becoming systems manager to oversee EHR implementation, training and programming. Most recently, she played a key role in growing MDabstract from a startup with one client into a multimillion-dollar organization that works with national clients including St. Louis-based Ascension and Boston-based Steward Health Care.

Gail Peace. Founder, President and CEO of Ludi. Ms. Peace helms Ludi, a healthcare technology company focused on helping providers with physician alignment. Before founding Ludi in 2012, she was vice president of business development for Vanguard Health Chicago, which was part of Nashville, Tenn.-based Vanguard Health Systems before VHS was acquired by Dallas-based Tenet Healthcare in 2013. Ms. Peace also previously served as vice president of client solutions for WebMD Health Services, formerly Subimo.

Lindsay Phan. Director, Enterprise Project Management Office at Northwestern Medicine (Chicago). Ms. Phan has 12 years of health IT experience. Most recently, she led the systemwide Epic clinical implementation at Northwestern Medicine. Ms. Phan now leads an enterprise project management office at Northwestern Medicine with responsibility for IT implementations.

Susan Pouzar. General Manager of the North America Division at Genesis Automation Healthcare. Ms. Pouzar is the new general manager of Genesis’ North America division, where she leads the value-chain solutions provider’s operations, sales and marketing teams in the U.S. and Canada. Prior to her current role, she was vice president of sales at Genesis, leading the company’s sales and account management teams for the U.S. Before joining Genesis, she was vice president of sales and marketing, clinical, and MorCare solutions at Herndon, Va.-based Harris Healthcare.

Jan Powell. CEO of Alpha II. Ms. Powell has more than 30 years of healthcare software development experience. At Alpha II, a provider of software as a service solutions and developer toolkits, she plays a key role in corporate development and business strategy, with an emphasis on product design and development. During her tenure with the company, she has directed Alpha II’s focus on professional and institutional reimbursement rules, fee schedules and electronic data interchange. Alpha II has also experienced significant growth in recent years under her leadership and partnered with multiple prime contractors on national products licensed by the Veterans Health Administration.

Anita Pramoda. Founder and CEO of Owned Outcomes. Ms. Pramoda helms Owned Outcomes, a software company that helps healthcare organizations tackle the challenges of value-based care. She is also an executive adviser and venture partner to Technology Crossover Ventures and serves as a board director at Health Catalyst and Federal Reserve Bank of San Francisco in Los Angeles. Previously, she was the CFO of Epic and served on the board at Allscripts.

Pamela Pure. Founder and CEO of Pure Advisory. Ms. Pure founded Pure Advisory, a provider of strategic planning and advisory services, business consulting, and support for mergers and acquisitions and transactions. She brings more than 25 years of experience in health IT and services to the company. Before founding Pure Advisory, she was CEO of HealthMEDX, as well as president and executive vice president at McKesson Provider Technologies. During her time at McKesson, the business grew from $900 million in revenue to $3 billion.

Laura Quatela. Senior Vice President and Chief Legal Officer at Lenovo. At Lenovo, Ms. Quatela focuses on the company’s legal strategy. She joined the company in 2016 after co-founding a global consulting firm in 2014. She was executive vice president of intellectual property for Alcatel-Lucent and previously worked at Eastman Kodak, where she served in various roles, including president, chief intellectual property officer and co-COO.

Susan Ragon. Vice President of Finance, Administration and Recruitment at InterSystems. For more than 30 years, Ms. Ragon has worked at InterSystems. Currently, she is responsible for finance, recruitment and human resources across the organization’s global network. She also played a key role in constructing the core infrastructure of InterSystems. Her previous roles at the organization include director of finance, administration, marketing and documentation.

Sheela Ramamurthy. Chief Client Officer at VirtualHealth. Ms. Ramamurthy serves as chief client officer of VirtualHealth, which develops end-to-end technologies designed for value-based care. In this role, she focuses on product development strategy, prioritization and implementation. While at VirtualHealth, she has been involved in healthcare organizations improving the health of more than 6 million patients. Ms. Ramamurthy also spent more than 10 years at PwC’s health industries practice.

Angela Rivera. Executive Vice President of Operations at CynergisTek. Ms. Rivera has 24 years of healthcare experience. She held various roles at Computer Task Group, an international IT solutions and services company, including vice president of health solutions. In her current role as executive vice president of operations at cybersecurity and information management consulting firm CynergisTek, she helps set the company’s strategic direction and is responsible for its cybersecurity and information management consulting services. She also oversees the sales, marketing and professional services teams.

Alana Ward Robinson. President and CEO of Robinson Group Consulting. Ms. Robinson has more than three decades of technology leadership and innovation experience. She currently helms Robinson Group Consulting, where she began serving as a founder and managing principal in 2004. In this role, she advises healthcare organizations on strategic technology solutions. Her past positions include interim CIO at Madden Communications and strategic technology adviser to the president at Augusta, Ga.-based Paine College, among many others.

Fidelma Russo. Chief Technology Officer of Iron Mountain. Ms. Russo focuses on technology’s role in Iron Mountain’s current and future products, service delivery and overall business. Before joining Iron Mountain, she led Dell EMC’s enterprise storage and software solutions team. She also was COO of Sepaton/HDS, a provider of storage and software products and services. Additionally, she has worked at Hewlett-Packard, Sun Microsystems/Oracle, Data General Corp. and Digital Equipment Corp.

Deirdre Ruttle. Vice President of Strategy at InstaMed. Ms. Ruttle began her role in October 2017 as vice president of strategy for InstaMed, where she oversees the company’s strategic objectives, corporate brand and thought leadership activities, including the publication of the Trends in Healthcare Payments Annual Report. Prior to her current role, she held leadership positions in product management and marketing at InstaMed, where she worked closely with U.S. payers and providers on launching healthcare payment solutions. She previously held senior marketing roles at alphabroder and Collages.net, where she led marketing strategy to drive use of business-to-business and business-to-consumer e-commerce platforms.

Pamela Saechow. Associate CIO at Cleveland Clinic. Before joining Cleveland Clinic in October 2017, Ms. Saechow was a vice president IT executive at New York City-based NYC Health + Hospitals, one of the nation’s largest public health systems. There, she was senior assistant vice president of the system’s Epic program. She also was responsible for implementation, optimization and support of NYC Health + Hospitals’ financial IT systems.

Vicki Schmanske. Chief Administrative Officer at Leidos. At Leidos, Ms. Schmanske oversees IT services, enterprise business operations, communications and marketing, corporate real estate and facilities, security, and strategic sourcing. Previously, she was deputy president and COO of Leidos’ health group. During her 35-year career, she also was vice president of operations for Lockheed Martin Information Systems and Global Solutions programs under strategic review in the civil, defense and intelligence solutions business lines. Ms. Schmanske was honored this year with a leadership award from the nonprofit Women in Technology.

Brenda Schmidt. Founder and CEO of Solera Health. Solera contracts with insurers to connect patients to a network of preventive health services, such as diabetes prevention and management programs and food insecurity interventions, as covered medical benefits. A social entrepreneur, she focuses on improving quality and costs. She is president of the Council for Diabetes Prevention and previously served on the board of the Population Health Alliance.

Lisa Shah, MD. Chief Innovation Officer of Sound Physicians. In her role as chief innovation officer of Sound Physicians, Dr. Shah is focused on designing innovative care delivery models, as well as technology-enabled clinical workflows and clinically integrated solutions. She previously was senior vice president of clinical operations and network for Evolent Health.

Rita Sharma. Vice President of Product Management for Healthcare and Life Sciences at Salesforce. Ms. Sharma brings more than 15 years of leadership experience to Salesforce, a provider of customer relationship management software. Experienced in enterprise, digital health and wellness, she currently serves as the company’s vice president of product management. Before that, she was Salesforce’s head of product, healthcare and life sciences. She was also vice president of marketing and product management at Glooko, a company that offers a unified diabetes management platform.

Jennifer Sheets. Chief Clinical Officer at Bayada Home Health Care. Ms. Sheets is chief clinical officer at Bayada, a provider of home nursing, rehabilitative, therapeutic, hospice and assistive care services. In this role, her responsibilities include a focus on clinical guidelines and procedures, along with growth and development opportunities. Ms. Sheets previously served as corporate chief clinical officer at Cornerstone Healthcare Group. She also was senior vice president of clinical operations at Gentiva Health Services, an affiliate of Louisville, Ky.-based Kindred Healthcare.

Shelly Spiro. Executive Director of the Pharmacy Health Information Technology Collaborative. Since 2012, Ms. Spiro has served as executive director of the Pharmacy Health Information Technology Collaborative, a health IT-focused organization founded by nine pharmacy groups. A national pharmacy leader, she also serves as president of health IT consulting firm Spiro Consulting. She has served as a pharmacy clinician, teacher, operations manager and corporate administrative executive in many healthcare settings throughout her career.

Erica St. Angel. Chief Technology Innovation Officer for Access Physicians (Dallas). Ms. St. Angel is CTIO for Access Physicians, a physician-founded medical group practicing inpatient telemedicine. Her experience also includes serving as an executive for publicly traded companies, digital health startups and a digital marketing agency. Additionally, she was policy adviser on health, commerce and education in the administrations of former Illinois Gov. Jim Edgar and former Wisconsin governor and HHS secretary Tommy Thompson.

Tamara StClaire, PhD. Vice President of Innovation at GuideWell. Dr. StClaire has vast healthcare innovation experience. Before joining GuideWell, she served in various roles at Xerox, including CEO of Merisight — the company’s corporate digital health startup — and chief business officer of its Palo Alto (Calif.) Research Center. Most recently, she served as chief innovation officer of Xerox’s healthcare business. She also worked at Abbott Labs and Roche, and was COO of predictive health platform BaseHealth.

Lynne Stockstad. Chief Marketing Officer for Optum. Since December 2014, Ms. Stockstad has worked at Optum, UnitedHealth’s health IT and services arm. She began her tenure at the company as senior vice president of product and consumer marketing. She is now chief marketing officer, responsible for Optum’s strategic brand and marketing initiatives. At the company, Ms. Stockstad has led product, marketing and branding efforts and played a key role in company growth. She previously worked at Microsoft for 12 years.

Lisa Suennen. Senior Managing Director at GE Ventures. Ms. Suennen is an experienced venture capital investor and healthcare industry adviser. She currently serves as healthcare venture capital investor at the corporate venture capital arm of GE. Previously, she was an adviser on corporate venture capital and digital health strategy while operating Venture Valkyrie Consulting. She was also a partner at healthcare-focused venture capital firm Psilos Group. Outside her role at GE, Ms. Suennen is the managing partner of Venture Valkyrie, is a co-founder of women’s leadership nonprofit C-Sweetener and has a digital health-focused podcast called “Tech Tonics.”

Natalie Sunderland, Vice President of Marketing at Qventus. In her current role, Ms. Sunderland is responsible for leading marketing at Qventus, which provides an artificial intelligence software platform. Her responsibilities also include educating the market on the company’s offerings. She leads the company’s industry council and education programs with key healthcare forums. Previously, Ms. Sunderland led marketing at Castlight Health. She also held senior marketing roles at Citigroup and American Express.

Christina Sung. Vice President of Corporate Strategy and Product Marketing at Health Fidelity. At healthcare tech startup Health Fidelity, Ms. Sung focuses on product development and market strategy. She brings to the role vast experience in healthcare and technology. She has worked for Oakland, Calif.-based Kaiser Permanente, as well as for Vocera Communications, where she managed the development of existing and new products for the Vocera Care Experience web-based tool.

Lisa Stump. Senior Vice President and CIO of Yale New Haven (Conn.) Health and Yale School of Medicine. Ms. Stump has worked at YNHH since 1996. Throughout her career, she has held a number of jobs at YNHH, including director of pharmacy, administrative director in clinical informatics and vice president of the system’s Epic project. She also previously served as associate CIO before taking on her current CIO role. At YNHH, she led integration of IT services staff systemwide, as well as consolidation of multiple technology platforms in bed management, infection control, laboratory information and YNHH’s blood bank, among other accomplishments. In December 2017, she was chosen for the Carol Emmott Fellowship.

Jessica Sweeney-Platt. Executive Director of Enterprise Strategy at athenahealth. In her current role, Ms. Sweeney-Platt focuses on physician and care team burnout. Prior to this role, she was executive director of athenaResearch at the EHR vendor. She also was managing director of The Advisory Board Co., where she obtained healthcare expertise in areas such as accountable care strategy, medical group growth strategies and inpatient care redesign.

Sheila Talton. President and CEO of Gray Matter Analytics. Ms. Talton helms Gray Matter Analytics, which offers advisory services and analytics solutions for healthcare organizations. A global leader and big-data strategist, she has worked at Cisco Systems, EDS and Ernst & Young, and founded a consultancy focused on communications network integration. At Cisco, she built the company’s globalization strategy for China, Brazil and Mexico.

Anncy Thomas, DO. CIO of Episcopal Health Services (Far Rockaway, N.Y.). Dr. Thomas, a board-certified family physician, has served in her current role since July 2017. In this position, she oversees the hospital’s IT and services department, among other duties. She previously served as chief medical information officer at Far Rockaway-based St. John’s Episcopal Hospital and has served as an adjunct clinical assistant professor of the family medicine program at EHS for both Erie, Pa.-based Lake Erie College of Osteopathic Medicine and Portsmouth, Dominica-based Ross University School of Medicine.

Tanya Townsend. System Senior Vice President and CIO of LCMC Health (New Orleans). Ms. Townsend brings an array of healthcare technology and administrative experience to her role at LCMC Health. Before joining LCMC Health in November 2014, she was vice president and CIO of Greater Baltimore Medical Center. She has also served as CIO of Springfield, Ill.-based Hospital Sisters Health System’s eastern Wisconsin division, where she oversaw IT, biomed and clinical engineering, and health information management for St. Mary’s, St. Vincent and St. Nicholas hospitals, including provider practice Prevea Health.

Anna Turman. CEO of Chadron (Neb.) Community Hospital and Health Services. For nearly 20 years, Ms. Turman has worked at Chadron Community Hospital, a critical access hospital serving people in the panhandle of Nebraska and surrounding areas. She served as CIO for 10 years, COO for four years and interim CEO for six months before becoming the hospital’s permanent CEO in 2017. During her tenure with the hospital, she has advised the U.S. Cyber Security Task Force. Her specialties include leadership, management of information systems, security and risk assessments, and IT and EHR implementation.

Lorraine Vargas Townsend. Senior Vice President of Human Resources at athenahealth. Ms. Vargas Townsend’s early life has played a key role in her career. Experiences like having an immigrant single mother and battling bone cancer when she was 18 influenced how she approaches her human resources role. During her tenure at athenahealth, she has promoted a growth mindset and inclusiveness. She also played a key role in athenahealth’s people-first strategy, which, according to the company, “empowers employees to bring their entire selves to work.”

Jeanne Venella, BSN, DNP. Chief Nursing Officer of Bernoulli Health. Ms. Venella is an experienced leader in healthcare management, with expertise in emergency nursing, throughput, patient flow and efficiency, process improvement, and change management. Since 2015, she has served as Bernoulli’s CNO. In this role, she focuses on developing strategic nursing workflow plans, data analysis and systems.

Stephany Verstraete. Chief Marketing Officer at Teladoc. At Teladoc, Ms. Verstraete’s responsibilities include leading global marketing and communications efforts, overseeing market positioning of the company’s brand, and product growth. Before joining Teladoc, she held marketing leadership roles at Match.com, Expedia, Kraft and Frito Lay. She also was chief marketing officer at healthcare technology company Truveris.

Emmy Weber. Chief Marketing Officer for Surgical Information Systems. Ms. Weber has more than 20 years of marketing and product management experience. In her current role, she is responsible for SIS’ corporate marketing strategies, client experience and partnerships. Previously, she was vice president of product management at MedQuist, now M*Modal, and held various product and marketing roles with Lanier Worldwide.

Linda Whitley-Taylor. Executive Vice President and Chief People Officer at Change Healthcare. Ms. Whitley-Taylor has extensive healthcare experience. Before joining Change Healthcare, she was executive vice president and chief human resources officer at Amerigroup Corp., a provider of health insurance and managed healthcare. She was also previously senior vice president of human resources operations for Genworth Financial, formerly GE Financial Assurance. During her time there, she was involved in taking the company public in 2004.

Leigh Thomas Williams. Administrator of Business Systems, Health Information and Technology at University of Virginia Health System (Charlottesville). Ms. Williams is a senior health IT leader at UVA Health System. In this role, she manages enterprise financial and operational applications, is responsible for web and mobile app development and strategy, and focuses on the system’s service management strategy. Outside of the system, she teaches for the department of health informatics and information management at Jackson-based University of Mississippi Medical Center. She is also president-elect of the Virginia chapter of the Healthcare Information and Management Systems Society.

Karley Yoder. Director of Product Management and Artificial Intelligence at GE Healthcare. Ms. Yoder serves as director of product management and artificial intelligence at GE Healthcare. She moved into the role in April 2018 after serving as the company’s senior product manager of AI analytics. She received a master’s degree in business administration from Harvard Business School in 2016. While working on that degree, she interned at Apple, with a focus on digital health devices and services.

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