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Published - Thursday, September 27, 2007

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New LHI contract spells growth


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The U.S. Department of Defense’s recent decision to expand its contract with Logistics Health Inc. should provide a tremendous opportunity for growth, said LHI Chairman and CEO Don Weber.

The Reserve Health Readiness Program ensures members of the military receives proper health screenings to be considered fit for duty, Weber said Wednesday.
LHI connects military personnel to those health services, including physicals, dental and vision screenings and various vaccinations.

LHI received its first government contract to take over some of those services, including reserve members of the armed forces, in 2001.

The company has since grown from 12 to 435 employees, Weber said, and is branching into assessments of active and post-deployment military.

Weber on Wednesday answered a number of other questions about recent LHI developments:

Q. What does LHI do?

A: “We’re the link between military personnel and health care providers. Once an individual joins the military, they’re required to be fit for duty. Depending on their age and duties, they have to have physicals, vision tests, dental screenings and certain vaccinations.”

LHI will notify personnel 60 days before an appointment and make all the arrangements for a visit to a private clinic. In some cases, LHI will send their own physicians, nurses and dentists to a military base to conduct 200 to 300 appointments at a time.

Q. How does the number of troops overseas affect your business?

A. “Our business doesn’t prosper because of war. When the war ends, it will have no negative effect on our business. In fact, it will give us even more responsibilities. The more soldiers who are in the country, the busier we are.”

Q. How many people do you employ?

A. LHI currently employs 435 people, the majority of whom are in La Crosse. Most of those jobs are full time.

Q. What kind of jobs?

A. The jobs are across the board. It’s a mix of some very high-end professionals, such as doctors, dentists, nurses, physicians assistants, customer service representatives, record review specialists, accounting specialists, payroll and software developers.

Q. Who is your competition?

A. “There isn’t really another company that does everything that we do, but there are companies that do aspects of what we do. That’s what the government likes about us. We manage it all. We have a very special niche we’ve gotten ourselves into here.”

Q. How many and what types of contracts do you have?

A. LHI has more than 50 contracts, 90 percent of which are with the government. Most are with the U.S. Department of Defense, Centers for Disease Control, Veterans Affairs and the U.S. Postal Service.

“For the military, we do the majority of reserve components, and we are in every state with the National Guard, though we don’t do all the National Guard units yet. With the new contract, we’ll be more involved with the active component of the military. We probably touch around 15 percent of our armed services, and the rest is still being done by the government itself.”

Q. What is the status of the second LHI building?

A. That facility should be completed in March.

Q. What kind of growth do you envision?

A. “By 2009, we should increase employment by 350. We could very easily grow to 1,000 employees within the next three years or so.”

Q. Will you likely expand into a third facility in La Crosse?

A. “I could foresee needing more space, probably within two to three years.

“One of our concerns really is that with the number of opportunities that are going to come our way, do we have the resources (work force) locally to draw from. I want to do everything we can to stay here.”

Samantha Marcus can be reached at (608) 791-8220 or smarcus@lacrossetribune.com.
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North Sider wrote on Sep 29, 2007 2:10 PM:

" Gotta II- Not only would one question after these events if they knew what their profit margins are, but the straw dog that they have unquestionably set up to aim and debate has little to do with the shenanigans downtown once more. Let me explain. We are talking about the Center Wedding/Banquet market, and a smaller 300 or less market at Weber II. In fact the businesses that they would be hitting heads directly on with would include Pettibone Campground. Then you could add the other smaller Wedding/Banquet operators in town that have not been given a competitive edge with financial help, shiny buildings, and corresponding lower costs, along with a downtown river side view. And then again the Operator of Pettibone is busy with a $35k audit, for something they won't say what it is? I could not make this stuff up! "

North Sider wrote on Sep 29, 2007 1:43 PM:

" Gotta Love this. The real only vocal media comments have been made by 'On Too Many Boards' (Center Chair), and his protege Fahey (Center GM). Basically, they have stated that the addition of another Wedding/Banquet/Ballroom at LHI II will not affect the Centers profitability. First, Obtaining the Center's profitability numbers is almost impossible. As I was down that road when the traveling Basketball owner threw down his gauntlet of 4 days? Eventually learning a very different history of our 'CITY' Center in regard to Center profit in Basketball years and those without. Ultimately different than the hierarchy had just stated in Media a day or two before. What I did hear is that they had no need to break down their different categories of income, and I would not be allowed to see the 'books'. "

teiresias wrote on Sep 29, 2007 10:37 AM:

" War is good business. Even after the endless war "ends" business will continue to grow for this company. How very sad. "

North Sider wrote on Sep 29, 2007 9:55 AM:

" TO: Are you serious? You have to have a learning disability. A project of this size encompassing this amount of taxpayer money, and it was ramrodded through as City Leaders knew nothing. Now, I spoke to 6 of those Council People in the 24hrs following learning that 300 emplopyee were to become tenants from across the street. They were all under the assumption it was for LHI employees. Now this was bfore we learned that the lunch/meeting/room that was literally being murmured was to become a Wedding Hall a mere two weeks later, when not being used? Sign your names on this garp, mine is Craig A. Nestor. "

North Sider wrote on Sep 28, 2007 12:22 PM:

" Here is what I am against- Setting up a landlord with financial help in many ways to fill two buildings with a majority (so far) with employees from almost across the street, Restaurant employees for his daughter, and now a Wedding/Banquet/Ballroom business that we have given him a big competitive overhead advantage, with a new shiny building on our limited downtown shore. As it was ramrodded past us so fast that even City leaders and Council did not see contract or plans before voting. Now they sent it to the Redevelopment Authority last night to alter both, that they have never seen before? And no media outlet knew of the meeting? Whitewash away, you look silly! "

random annoying bozo wrote on Sep 27, 2007 10:08 PM:

" North Sider, i think it's time for you to take a step back, look at the big picture. the building are Mr Webers, he built them, he owns them. the City didn't build them, they just sold him the land. Mr. Weber had planned to build in Onalaska, not LaCrosse, it was the City who approached him with a 'deal he couldn't refuse'. LHI is successful, they employ people, those people spend the money in our local economy. aren't you for growth in the local economy? what i see happening now by some on the Council as an attempt to pass the buck on their failure to do 'the Peoples business'. and that business should NEVER be in real estate. "

Common-cents wrote on Sep 27, 2007 10:07 PM:

" Don Weber should be congratulated for sticking his backside out to create jobs in LaCrosse. But my feeling is why build the office buildings on the river. I have a friend who works at LHI and he says he spends about 3 hours a day looking out the window at boats. If LHI folds up one day or is bought out and moved Don will sell these buildings and make millions off the taxpayers of LaCrosse. Thats called a slight of hand business move. "

Are you serious? wrote on Sep 27, 2007 9:57 PM:

" North Sider, why don't YOU do the tracing and investigating that you so painfully want to have done. In the mean time, stop your whining on the Tribune comment board. If this really were such a SHAM DEAL, as you seem to think it is, don't you think proof would be out there to prove it? Go ask Piggy's if they are so sad to be in a MUCH LARGER, more accomodating facility. I bet you will get laughed at. And so what if a different business, owned by Mr. Weber, owns the actual property? As someone else said, SMART BUSINESS. Are you some sort of conspiracy theorist? Sounds like it. You should pick up some tabloids, they have some pretty good stories you could follow. "

North Sider wrote on Sep 27, 2007 7:43 PM:

" TO: Random Bozo III- So what? City leaders lie to us, we finance a landlord that has done little yet but move pre-exisitng tenants from almost across the street, and build a restaurant for his daughter. Taxpayers have been led into a dry gulch to give great advantage to a man with a very unique limited frontage. Add to that a competitive edge on overhead derived from the creative financing, tax breaks, and incentive that converts into an advantage against everyone else in the Wedding, Banquet, Catering business. Wake up, if only it were so simple. You are dim or in denial, period. Showering money on Weber and his buildings and doing so too close to the LHI cheerleaders and pom-poms. My feeling? Purposely. "

North Sider wrote on Sep 27, 2007 7:41 PM:

" TO: random bozo II- Tonight at the Redevelopment Authority meeting at least one member stated he still had not seen a plan or print yet. Tens of millions of dollars and the people who ultimately approve the project are ignorant of what it is? LHI, and Weber rode into town tied by a short lead for a reason and they used it to Weber's full advantage. ! "

North Sider wrote on Sep 27, 2007 7:40 PM:

" TO: Random Bozo I- I do not for a second believe that you can wash the good side of your brain in regard to the way business was conducted on this project. Weber rode tall in saddle in town on the horse named LHI. He did not for a minute let go of the saddle horn. As the ample grain was dolled out it went to both steeds. The other one owned wholly by him and totally different businesses. Unknown to almost all who are paying for it. I believe purposely. So for anyone too want to banish these orders of events from thier memory, money changing hands, and Personal Financial Statements swollen on our dime, get real! "

randomino wrote on Sep 27, 2007 5:12 PM:

" Better idea- get rid of the military, use the money to train soldiers to be doctors, teachers, and engineers (without all the killing and destruction in the meanwhile). "

random annoying bozo wrote on Sep 27, 2007 4:51 PM:

" North sider, this story ISN'T about the buildings, it IS about the company, LHI. keep the issues seperate. Weber has 2 companies, so what? appears to be smart business to me. i agree, there are serious problems with the buildings, but that's a sepaerate issue. and remember, it wasn't Weber who approached the City, it was the City who 'begged' him to come. "

North Sider wrote on Sep 27, 2007 1:25 PM:

" Don't you remember back in Mayberry in the scence where Gubber would pull out another hat everytime you needed a City service and put it on. Well, this kinda like that. Except this is much more expensive , and most certainly not as comical. He rode in on a horse named LHI, with a steed tied next to it named 'Weber and his personal property'. Make sure you know what horse you are throwing feed out for at a few million and handful. Do you? I thought not! "

North Sider wrote on Sep 27, 2007 1:21 PM:

" TO: Terminus II- Lets trace the legal contracts, landing zones, and then answer what these cash influxes would do, what they were intended to do, and why? Then once more remember that LHI does not own the buildings, and is not in the Wedding/Banquet/Ballroom business. I will wait for your answers, and hope it will not come out sideways as hurty feelings. "

North Sider wrote on Sep 27, 2007 1:19 PM:

" TO: Terminus I- Sorry although you are one ignorant person, and do not know what is going on here. LHI is a totally different business than Weber, Riverside, or any of his other holdings. He also owns only a small portion of LHI, very. Although he owns the buildings. Keep this in mind. Now I would like you to go through and explain to us what the contracts and agreements stated for recipients of $37 million in 27 year TIF money, $15.9 million to move owners and property around to put this deal together, $875k more at $3500 per each new 'LHI' employee, 800 guarnateed parking spaces, $4mill and then another 1 3/4 million from the State. "

just me wrote on Sep 27, 2007 12:10 PM:

" ...and just to refresh your memories, back when the original plan was to build in Onalaska, but Mr. Weber was persuaded to build in La Crosse instead, the mayor at that time was not the current mayor, but Mr. Medinger. So don't point all your fingers at Mr. Johnsrud. "

down2512 wrote on Sep 27, 2007 11:38 AM:

" That's wonderful. Evidently the standard is quite high-I have a strong resume, wrote a very comprehensive, open ended proposal and contract to the company's infant, The Waterfront and got the run around! Not just once either! I was given the run around twice I spent/wasted a total of 4 months trying to get work there. During this time I was provided a walk through and was told over and over by higher level employees "we are very interested in you doing this service for us". All I can tell you for sure is they passed on one of the more honest, reliable workers in the area and have never even given the courtesy of a simple explanation. "

Athenry wrote on Sep 27, 2007 10:35 AM:

" Let's add it all up. First there was the very lucrative deal of purchasing prime real estate for $1. Then there was the addtional real estate for another $1. Then there's the incentive per new job. Tehn the tax relief $1.75 million dollars. The city paying Don to build ramp space - which is still not completely agreed upon from my understanding. The TIF that will not help ANY La Crosse tax payer for 25 years. And all this for jobs that would have been in the area anyway if the company moved to Onalaska. "

Athenry wrote on Sep 27, 2007 10:29 AM:

" Oh, yeah, that's right, the city council or should I say the mayor twisted his arm. I for one wish he would have moved to Onalaska. I'm sure Onalaska wouldn't be bending over backwards to give out all this corporate welfare. "

asoccer wrote on Sep 27, 2007 9:33 AM:

" Do you not remember that Don Weber's original plans were for Onalaska, UNTIL the city council wanted LHI to stay in La Crosse... trust me there would have been a lot less headaches for all of LHI and the Weber family if they would have moved to Onalaska... so how about you do some research and know the facts! "

Athenry wrote on Sep 27, 2007 8:43 AM:

" Finally a little information. However, did anyone catch the last line of the article? Reading between the lines, it appears as though the idea of moving the company out of the area is not without possibility. I do wonder how much it would have saved La Crosse tax payers if LHI moved to Onalaska, as Don originally planned. You can't really believe that the 350 jobs would not have been created if LHI were in Onalaska. "

Terminus wrote on Sep 27, 2007 8:18 AM:

" G-R-O-W-T-H embrace it LaCrosse. You have lost many jobs Trane, Fleming, LaCrosse Footwear don't let the Lefites in your City Council destroy your growth potential. Give LHI what they want including the hall. "

Darwin wrote on Sep 27, 2007 7:15 AM:

" I appreciate the article explaining a little more about what LHI does. There certainly have been a lot of calls for some explanation. "

possom133 wrote on Sep 27, 2007 7:03 AM:

" Hey dbl lung serve or shut up!!!!!!!!! Sincerly yours, Two year vet "

Krusty wrote on Sep 27, 2007 6:49 AM:

" If they need more room, maybe we could root those morons out of the City Hall Building and they can move in there "

dbl lung wrote on Sep 27, 2007 6:29 AM:

" I do not so my ignorance here. I believe we will have a democrat (sorry to say) running this country next time. During the last couple democratic eras there have been significant reductions in our military. The next president will be no different. I like many will hope for the best but aspect the worst. "

just me wrote on Sep 27, 2007 6:22 AM:

" Apparently dbl lung cannot or did not read the article, or doesn't understand that once the war is over, our military still needs to be prepared. Another fine example of some people's ignorance or envy. "

Are you serious? wrote on Sep 27, 2007 5:41 AM:

" Honestly, did you read the article? People don't seem to understand that the service member has to be fit for duty NO MATTER WHAT! “Our business doesn’t prosper because of war. When the war ends, it will have no negative effect on our business. In fact, it will give us even more responsibilities. The more soldiers who are in the country, the busier we are.” "

dbl lung wrote on Sep 27, 2007 4:07 AM:

" GROWTH---until the war is done---then what. two empty office buildings, a lot of laid off workers and a rich owner in Don Weber. What a mistake!! "


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