LA: Gov. Jindal and Schumacher Announce Major Headquarters Expansion
21 Jul, 2011
Company to create 600 new jobs in Lafayette with $19 million capital investment
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Today, Gov. Bobby Jindal joined Schumacher Group CEO Dr. William "Kip" Schumacher to announce the company will complete a major headquarters expansion over the next five years that will produce 600 new direct jobs, with average salaries of $62,500, plus benefits.
Louisiana Economic Development estimates the project will result in the creation of another 784 new indirect jobs for a total of nearly 1,400 new jobs in the Acadiana Region over the next five years. The company also will make a $19 million capital investment, including expanded headquarters facilities and specialized training space.
Gov. Jindal said, "The Schumacher Group, based right here in Louisiana, looked to expand in other major cities across the country, but because of our competitive programs like the Quality Jobs tax credit, the Digital Media tax credit and the Louisiana FastStart™ worker training program, they'll expand right here in Lafayette while creating nearly 1,400 new jobs for our people. This is the New Louisiana we have been working to create since taking office three and a half years ago -- a place attracting billions of dollars in business investment and creating opportunity so no Louisiana child has to leave home to pursue the career of their dreams."
In addition to creating 600 direct new jobs by 2016, Schumacher Group will retain 389 existing jobs in Lafayette. Schumacher Group currently employs more than 1,200 employees in 24 states and manages emergency medical services for more than 180 hospitals, using technology to integrate hospital services. Schumacher also contracts with more than 2,500 physicians in a business model that's patient-driven and emphasizes quality patient outcomes.
Dr. Schumacher, who founded the company in 1994 in Opelousas said, "It's exciting to have this opportunity to expand in Louisiana and grow into other business lines that further impact patient care. For the past 17 years, we made the decision to have our corporate base in Louisiana because of the talent, drive and culture of the people, which so define our success. We're now an international company, but we're committed to Louisiana as our home base. This state initiative just makes that commitment even stronger."
To secure the headquarters expansion, the state offered Schumacher Group a customized incentive package, including a performance-based grant from the Mega-Project Development Fund to reimburse 50 percent of the cost of expanding headquarters facilities, up to a maximum state contribution of $9 million. Schumacher Group also will receive hiring and training assistance from LED's Louisiana FastStart program, which has been ranked as the best state workforce solution in the nation by Business Facilities magazine. In addition, the company is expected to utilize Louisiana's Quality Jobs program, as well as the state's recently enhanced Digital Media & Software Tax Credit.
LED Secretary Stephen Moret said, "Since day one, our top economic development priority has been working to retain and expand Louisiana's existing businesses. Today's announcement represents a huge step forward for a leading, innovative company that started in Louisiana and has become a national leader in its industry. Most importantly, this announcement means that nearly 1,400 new jobs will be created in Acadiana over the next five years. Louisiana's recently enhanced Digital Media & Software Tax Credit also will assist Schumacher Group with continuing to advance its integrated technology solutions that help improve healthcare outcomes and efficiency."
Schumacher Group is finalizing plans for its expanded headquarters space and expects to complete the expansion by 2014. LED's Business Expansion and Retention Group began working with company executives earlier this year to talk about ways to focus Schumacher Group's future growth in Louisiana. Schumacher Group had considered expanding operations at several of its out-of-state regional offices where it had been expanding over the last several years, but the company decided instead to focus its growth at the Lafayette headquarters.
Gregg Gothreaux, president and CEO of the Lafayette Economic Development Authority, said, "We are excited that Schumacher Group has chosen to grow in Lafayette, furthering the economic prosperity and diversification of our region. When you combine the average yearly economic impact of $245 million, the number of jobs and the average wage per job, this is the most significant project for Lafayette and Acadiana in more than a decade. The impact of the Schumacher Group cannot be overstated -- it is a local business that has grown beyond our borders and is a success on the national and international stage."
About Schumacher Group
Schumacher Group is the third-largest emergency medicine staffing and management company in the country and was founded in 1994 by William "Kip" Schumacher M.D. Schumacher Group serves more than 3 million patients at more than 180 hospitals in 24 states, and the company is headquartered in Lafayette, La. For more information, visit www.schumachergroup.com.