Centene and the center city
The Ballpark Village set back was reported while I was still in Dayton, Ohio.
But even from a vantage 360 miles away (or, perhaps, especially so) one could wonder: Shouldn’t the public have some voice in where firms such as Centene locate their corporate headquarters?
A big chunk of Centene’s $2.9 billion in recently reported annual revenues come from managed care services for clients enrolled in Medicaid, State Children’s Health Insurance Program (SCHIP), and Supplemental Security Income for the disabled.
These are, essentially, publicly funded programs for lower income people.
Dayton is home to a company called CareSource, a fast growing, well-regarded firm that provides these same kinds of services in Ohio and other Midwestern states.
Not too long ago, CareSource announced that it had outgrown the hodge-podge of administrative offices out of which it had been operating, and began talking about building a large corporate headquarters.
Some of the initial political reaction was negative — especially in regards to using public funds to create an economic incentive for the building. What made some members of the public uncomfortable, at least initially, was the idea that a firm already reaping large rewards out of public money should be public minded about where it locates and invests and provides employment — or at the very least shouldn’t be sucking up economic development dollars, too.
This was worked out. Mainly because CareSource demonstrated a commitment to what one might call its “service area.” It built an impressive headquarters in Downtown Dayton, with a potential of bringing jobs and other economic benefits — essentially recycling public money for the benefit of the kind of population it serves.
Here’s a rendering of CareSource’s headquarters, currently under construction:
Companies that provide managed care services for publicly funded programs may have the economic leverage to extract concessions and financial wherewithal to locate headquarters in an affluent suburban or exurban district. But the communities they serve also have powerful friends. In Ohio, CareSource scored big political points — and ended up with a fine corporate headquarters — by dancing with them “what brung ‘em.”
Eddie Roth writes about education, social justice, public safety, transportation, legal affairs and historic preservation. He joined the Post-Dispatch editorial page in 2008 after six years as an editorial writer with the Dayton Daily News. But he is not new to St. Louis. Eddie grew up in Webster Groves and south St. Louis County. He's a lawyer who for many years practiced with a downtown firm, and was active in civic affairs, including serving a term on the St. Louis Police Board. He and his wife, Jeanne, and their three daughters, Emily, Julia and Alice, live in the Shaw Neighborhood.
When it comes to community organizing, he endorses Quentin Crisp's advice: Rather than keeping up with the Joneses, it's better to pull them down to your level. 
Your reasoning is sound … and frightening. First, we establish the that government ought to be paying for health insurance for a lot of people. Then, because the companies which provide it are receiving public dollars, we assert a higher level of government control over those companies. If we can demand a voice in a basic private decision such as where a company locates their headquarters, why not also demand a voice in executive pay? Environmental practices? Corporate philanthropy? Marketing tactics?
Mr Roth welcome back to St Louis. Hopefully the “collective” wisdom of the editorial board will be enhanced by your knowledge of the rule of the law.
Yes Centene make smoney off the government but does that make them any different than Boeing?
We don”t know the complete motives of Centenes express desire to move downtown other than to accept the ridiculous financial benefits offered by the city. In fact the public knows virtually nothing about what’s going on in ballpark village, other than it’s embarassing to look at. If private money will not come into that location then downtown will die. Look west mr Roth Clayton, Chesterfied and St Charles county.
My wonderful Ms. Gray’s 5th grade class at Oak Hill Elementary who’s using political fix as our social studies lesson today, said about this story, “that’s stupid”, and when I asked what’s stupid, they said, “Using other people’s money instead of your own to build your building.” The class invites you to respond with your views. The class wanted me to say “Losers!” to those wanting use public monies for the building, but I said that wasnt respectful, so we’re not going to say. =) (this is the smiley face they use). The class says “thank you”.
Thanks for the welcome jerele.
Should the public look at government contractors differently based on the kind work they do? In other words, would I have written what I wrote had it been Boeing rather than Centene that was considering and then reconsidered moving to Ballpark Village?
You ask a good question. And the short answer is probably not.
But being thoughtful about locating a corporate headquarters can be good politics — and in the world of government contractors that can means good business.
In Dayton, CareSource made a smart move building downtown — politically and businesswise.
Platform, not Political Fix, of course; sorry. As I may be saying in Congress, “Some mistakes were made.”
Hello, too, to Ms. Gray’s 5th grade class at Oak Hill Elementary.