TMG opens new $20M center; largest investment in nearly decade – The Times Tribune, July, 2012

20 Jul TMG opens new $20M center; largest investment in nearly decade – The Times Tribune, July, 2012

JESSUP – Jack Tighe admired the view of the Lackawanna Valley from the third-floor employee collaboration area at TMG Health Inc.’s new multimillion-dollar operations center – the largest private investment in Lackawanna County office development in nearly a decade.

“This solidifies our presence in the region and demonstrates our growth,” said Mr. Tighe, a native of Dunmore and president and chief executive of TMG. “We started here with a handful of employees.”

The company will hold an opening ceremony today at its $20 million complex at Valley View Industrial Park. The 150,000-square-foot building will house up to 1,250 employees, combining the company’s Dunmore and Scranton workforces into one location by the end of 2013.

It is the largest office development investment in the county since the $31 million construction of a 300,000-square-foot structure in 1995 at Glenmaura Corporate Center in Scranton and Moosic. That site now is occupied by a Bank of America customer-service center.

“It’s a significant operation,” Mr. Tighe said as he led an informal tour on Thursday. “We are going to move 120 people in here Monday.”

TMG, a medical billing and management company based in King of Prussia, processes Medicare and Medicaid claims and provides services to health insurers, employers and retiree plans. The company expects revenue to increase more than 20 percent this year to $123 million, Mr. Tighe said.

Today, TMG has 1,248 employees and is adding 50 full-time and 200 temporary customer-service jobs locally, company officials said.

“You look at how many companies are hiring today and there’s not a lot,” said Jim Kadela, chairman of TMG’s board and a senior vice president at Health Care Service Corp., a Chicago-based health insurance company that acquired TMG in 2008. “Because TMG has been so successful meeting the needs of their customers, they continue to grow.”

Even before the new steel-frame structure’s occupancy, Mr. Tighe talks about potential for a 60,000-square-foot addition to the center. Company officials predict TMG’s employment in Jessup eventually could top 2,000.

“These are the kinds of careers that you want in the area,” said Austin Burke, president of the Greater Scranton Chamber of Commerce. “This is a company that is staying on the edge of technology. They will move the work force here toward more-sophisticated, better-paying careers.”

TMG’s new office is flooded with natural light. The first floor includes a multi-story reception area, a cafeteria, print shop, mail room, data center, meeting and training spaces, human resources and auditing offices.

The upper two floors include insurance-related management and processing areas in flexible workstation sections for seasonal spikes in employment, with offices in the center of the floors. The company employs claims administrators, computer and financial analysts, customer-service and enrollment staff. About 90 percent of its work force lives in Lackawanna and Luzerne counties.

TMG administers Medicare and Medicaid programs for more than 20 states and expects steady growth from continuing government-related health initiatives, Mr. Tighe said.

Contact the writer: jhaggerty@timesshamrock.com