Chicago Company Will Create 500 New Jobs by 2019
CHICAGO –(ENEWSPF)–August 5, 2014. Governor Pat Quinn announced today that Valence Health is significantly expanding their business in Illinois and will create 500 jobs in Chicago over the next five years. Today’s announcement is part of Governor Quinn’s agenda to create jobs and drive Illinois’ economy forward.
“With this new investment, Valence Health is staking its future here in Illinois, utilizing our strong workforce to create hundreds of new jobs,” Governor Quinn said. “Our growing healthcare and technology sectors helped Valence commit to a strong future right here in Illinois. We are making a comeback and we’re glad to have Valence be a part of it.”
“Valence Health is proud to call Chicago home,” Valence Health CEO Phil Kamp said. “We greatly appreciate the state’s support as we accelerate our company’s growth. As healthcare continues to adopt new value-based care models, we are honored to work with some of Illinois’ leading healthcare providers. Our 325 Illinois-based employees work hard every day to deliver higher-quality, lower-cost healthcare for the betterment of patients everywhere.”
Valence Health is a provider of services and products for physician groups, hospitals and other healthcare providers. The company supports operations at more than 120 hospitals nationwide, benefitting approximately 39,000 physicians and more than 19.5 million patients.
The company’s 500 new employees by 2019 will join its current workforce of 325 people in Illinois. The company chose to expand in Chicago for several reasons, including the city’s desirability for employee recruitment, dedication to healthcare and life sciences innovation and an incentive package negotiated with the Illinois Department of Commerce and Economic Opportunity (DCEO).
The company has leased 125,000-square-feet at 540 W. Madison to accommodate its growth and plans to occupy the space by late this year. The company is moving from its headquarters at 600 W. Jackson. The move follows a 34 percent increase in revenues for Valence Health in 2013. It projects 47 percent revenue growth in 2014.
Valued at an estimated $11.86 million, the incentive package consists mostly of tax credits under the state’s Economic Development for a Growing Economy, or EDGE, program. To receive the credits against state income tax liability the company must create 100 jobs within two years and an additional 400 jobs by 2019. It also must spend at least $16.8 million over 10 years on its lease and equipment. DCEO also will provide the company with a $50,000 investment toward training costs for its new employees.
“Valence Health is at an important place linking healthcare and technology,” DCEO Director Adam Pollet said. “The company is moving fast to serve a rapidly evolving industry. Its commitment to Illinois speaks well of our pro-business policies and our culture of innovation.”
The Governor’s support for Valence Health fits his strategy of supporting high-growth industries, laid out in his administration’s five-year economic development plan released in July. The plan emphasizes Illinois’ core strengths in sectors such as healthcare and technology that have significant potential for growth and tend to pay salaries higher than the statewide average. The Quinn Administration has committed $4 million in state investments or loans to support the launch of MATTER, a hub for medical technology startups in Chicago that’s related to the successful 1871 business incubator. The intent is to make Illinois a center for investment and experimentation in tech-related fields, and the home of jobs created by the successful startups.
For more information on doing business in Illinois, go to www.illinois.gov/dceo.