Saturday BriefingPage �

January 24, 2009

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2009 Outrigger Hotels Volleyball Invitational

By Kathy Hansberry

The University of Hawaii Men’s Volleyball team proudly opened their regular season with the electrifying �5th Annual Outrigger Hotels Volleyball Invitational January 8 through January �0, 2009. This three-day tournament pinned the Rainbow Warriors against the best of the best. Nationally top-ranking teams including Penn State, USC, and Ohio State attracted volleyball fans to the Stan Sheriff Center, as they battled the University of Hawaii’s Men’s Volleyball team during each night of the tournament. The Rainbow Warriors successfully defeated Ohio State on the first night of the tournament but suffered a consecutive loss on the second night against #2 ranked

David Carey proudly presents the championship trophy toPenn State’s head coach Mark Pavlik and team co-captain Jay Stauffer

Cost Shifting Distorts Health Care

In his inaugural address this week, President Barack Obama listed some of the major challenges our nation faces today and touched on a topic close to my heart when he said, “Health care costs too much.” He’s absolutely right. I also know that comprehensive health care insurance is a precious and truly valuable benefit our company provides members of our ‘ohana working in Hawaii and our Denver Worldwide Reservations Center. So let’s take a couple of minutes to briefly examine the economics of health care in the United States and why it “costs too much.” I think everyone can agree that one of the reasons more of our dollars are going into health care is that our population is aging, and senior citizens require a great deal more health care services. I know this from personal experience, both as a doctor and as a patient. Science has also made tremendous progress in the quality and types of life-saving health care we can now provide. I recall my early days of medical practice in the �950s, when I watched the very beginnings of open-heart surgery while working at hospitals in Boston. It was a very risky and relatively experimental procedure at the time. Three decades later in the �980s, I watched Drs. Chuck and Jenny Kelley help refine the surgical techniques at the Queen’s Medical Center, making open-heart surgery a much safer procedure. Today many types of open-heart surgery are routinely, safely performed every day in communities throughout our country. But heart surgery is just one example. Advanced surgical and non-surgical cancer treatments, organ transplants, sophisticated electronics and imaging (CT scans, MRIs, and PET scans), telemedicine, robotics (a surgeon can be in one room and the patient in another room, or even another city), a wide range of highly sophisticated laboratory tests, new types of pharmaceuticals barely dreamed of a few years ago, and so forth, have led to far better patient care and have significantly extended the lives of many of our friends and family. Life-saving advances like these take money, lots and lots of money.

Saturday BriefingPage 2

Saturday Briefing is published by and for the employees of Outrigger Enterprises Group.

Editor-In-Chief: Richard Kelley Senior Editor: Marie Casciato Contributing Writers: Employees of Outrigger Enterprises Group

Visit us online at: www.saturdaybriefing.outrigger.com

Submit suggestions, comments, and news tidbits to Marie Casciato atmarie.casciato@outrigger.com or via interoffice mail to OEH/Executive Office,

or contact her at (808) 92�-660�.© 2009 Outrigger Hotels Hawaii An Equal Opportunity Employer

Happy Birthday!Feb ��: Jan Brown and Lori Z.F. Lai.

Feb �2: Koon Lin Chan Cheng, Li Hu Kuan-Tu, Shane K. Vares, Neal N. Nakashima, Lei Q. Naito, and Anna Sandoval Perez.

Feb �3: Barrett Desantos, Ernesto V. Rosete, Ofelia M. Abadilla, Mary-Ann F. Andrade, Ivan Paik, Elizabeth Cambra, and Florencio J. Salvador.

Feb �4: Myrna Rita, Leighton K. Yasuhara, Linda M. Krupula, Valentina B. Salinas, and Lehua Helm.

Feb �5: Renee A. Kiyono, Amy D. Lee, Han Bin Lin, Denise L. Torres, and Joseph A. Albertoni.

Feb �6: Gilbert A. Cui, Robert K. Tangonan, Suzanne Lee, Tim A. Alex, Conrado R. Rivera, Lincoln M. Tyler, and Michelle Dubach.

Feb �7: Kenneth F. Kettenacker Jr.

Correction In the article “Employees of the Quarter - Fourth Quarter 2008” that appeared in the January �7 issue of Saturday Briefing, we inadvertently omitted the following names from the list of honorees who were recognized for their outstanding performance during the 4th Quarter of 2008. Please join us in congratulating Clarence Aki, Gilmore Claonan, and Agnes Ramiro.

Outrigger Brings the Bula Spirit to the Community

By Darren Shaw

Celebrating the Year of the Ox

By Luana Maitland

Kung Hee Fat Choy! Come and celebrate the “Year of the Ox” on Saturday, January 3�, at the Outrigger Reef on the Beach (ORF) and the Outrigger Waikiki on the Beach (OWK). The ORF event starts at �0 a.m. and will feature a traditional lion dance throughout the hotel. At the OWK, Chinese Calligraphy and Proverbs will begin their event at �0:30 a.m., followed by a Chinese Cooking Demonstration and Tasting in the lobby. Fireworks will start in the front of the OWK on Kalakaua Avenue at �2 p.m., followed by a traditional Chinese Lion Dance. It is believed that the loud beats of the drum and the deafening sounds of the cymbals together, with the face of the lion dancing aggressively, can evict bad or evil spirits—so get into the excitement and celebrate Chinese New Year with us.

Year of the Ox - An Obstinate Year Legend has it that in ancient times, Buddha asked all the animals to meet him on Chinese New Year. Twelve came, and Buddha named a year after each one. He announced that people born in each animal’s year would have some of that animal’s personality. Those born in ox years tend to be painters, engineers, and architects. They are stable, fearless, obstinate, hard-working, and friendly. President Barack Obama, Jack Nicholson, and Walt Disney, to name a few, were all born in the Year of the Ox.

As soon as the flood waters in Fiji had receded, staff and management from the Outrigger on the Lagoon - Fiji were out on the road making vital food drops to three local emergency centers, made possible by the generous assistance of Outrigger Enterprises Group. Outrigger Enterprises Group’s wonderful contribution of F$5,700 has enabled us to purchase basic food supplies for �20 local families, numbering some 580 people who have been left without homes, food, and fresh water. Bread, powdered milk, tea, butter, noodles, tinned fish, and bottled water are helping to bring some comfort to the families, as they

The Outrigger on the Lagoon - Fiji staff shared the Bula Spirit with the community in the aftermath

of the tragic floodingContinued on page 3

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Outrigger Brings the Bula Spirit to the CommunityContinued from page 3

set about re-building their lives. The food we were able to supply will assist in enabling families to concentrate on re-building their homes without worrying about where their next meal will come from. A local transport company, Coastal Transfers and Taxi’s, provided us with a van to deliver bulk supplies to the emergency centers, including mosquito coils and personal care items. While the Outrigger on the Lagoon - Fiji was fortunate to have escaped any flooding or damage, our main priority is for the welfare of our staff and their families, many of whom have experienced loss of property and possessions. Our own staff raised close to F$�,500 in support of their fellow team members who were less fortunate. We’ll continue to provide assistance to the community, including our staff and their families, in every way possible and sincerely thank Outrigger Enterprises Group for their wonderful show of support. The Outrigger on the Lagoon - Fiji is running at full speed with all staff onboard and ready to share their own unique Bula Spirit with our guests!

The Outrigger on the Lagoon - Fiji staff meet some of the families staying at the Sigatoka District School evacuation center

Darren Shaw (center) delivers food and supplies to a local family in need of food

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Musical Line-up at Waikiki Beach Walk®Includes Two Ukulele Virtuosos

By Nancy Daniels

Outrigger Enterprises Group’s Sunday Showcase music series and Nā Mele No Nā Pua Kama‘aina Concert continues in February with another great line-up of island entertainment. Set to appear on February 22 are Jake Shimabukuro, who headlines the Nā Mele No Nā Pua bi-monthly concert on the Embassy Suites® - Waikiki Beach Walk® Grand Lanai that afternoon, and Taimane Gardner, whose performance will follow downstairs on the Plaza Stage, as part of Waikiki Beach Walk’s weekly Sunday Showcase. Adding a special bit of nostalgia to the weekly Sunday Showcase series is host and emcee Jeff Apaka. The son of Hawaii’s legendary Golden Voice of Hawaii, Alfred Apaka. A consummate performer himself, Jeff has played across the U.S. Mainland, Europe, Canada, and the Orient, as well as co-starring in musicals on stages in New York and Los Angeles.

Sunday Showcase This free weekly program takes place every Sunday afternoon (weather permitting) from 5 p.m. to 6 p.m. on the Plaza Stage at Waikiki Beach Walk.

February � - Alec B. & Friends (Jazz) Alec Briguglio, aka Alec B., has accumulated many awards and accolades as a musician, teacher and artist. Born and raised in Massachusetts, he graduated from the Berklee College of Music in Boston and has traveled extensively performing and teaching music around the world. Shortly after moving to Hawaii ten years ago, he quickly established himself as an outstanding musician. He is the winner of the prestigious Hawaii Music Award’s Jazz Artist of the Year in �999 and the Hawaii Music Educator of the Year award. This Punahou Jazz Band Director has also recently released “The Different Flavors of Alec B.”.

February 8 – Hula Halau ‘O Kehaulani (Hula/Hawaiian) Hula Halau O Kehaulani, under the direction of Kumu Kehaulani Sousa-Yonehiro, is a non-competitive school offering both the ancient (Kahiko) and modern (`auana) styles of Hula. Kumu Kehau has been a dance Director and teacher for over �5 years. Hula Halau ‘O Kehaulani also proudly performs every Saturday evening from 5:30-7:30 p.m. on the 4th floor Grand Lanai of the Embassy Suites, as well as many other venues in Hawaii.

February �5 – Mo’ Dahka (Contemporary/Island/Hawaiian)Enjoy sweet harmonies and a variety of Island, Hawaiian, Contemporary Hawaiian, with Mo’ Dahka. Be serenaded by the melodic rhythm of Mo’ Dahka, and walk away with a sense of what Aloha is all about.

February 22 – Taimane Gardner (Ukulele Virtuoso) Taimane has often been described as a musical child prodigy. Many people have described Taimane as the “Female Carlos Santana.” Through her performances, Taimane has created her own unique style and technique, with an uncanny ability to

blend classic contemporary songs with classical music. Perhaps her best quality is her on-stage presence. Her magnetic charisma captivates the audience till the end of each of her performances.

Nā Mele No Nā Pua Kama‘aina Concert Series This bi-monthly concert series is held at the Embassy Suites - Waikiki Beach Walk, Grand Lanai, from 4 p.m. to 5:30 p.m. every other month. (Performance time varies depending on artist.)

February 22 - Jake Shimabukuro Renowned for lightning-fast fingers and revolutionary playing techniques, Jake views the ukulele as an “untapped source of music with unlimited potential.” His virtuosity defies label or category. Playing jazz, blues, funk, classical, bluegrass, folk, flamenco, and rock, Jake’s mission is to show everyone that the ukulele is capable of so much more than only traditional Hawaiian music. From a modest beginning performing at a local Honolulu cafe, Jake has gone on to play renowned venues such as the House of Blues and The Knitting Factory (Los Angeles); The Birchmere (Alexandria, VA); Tipitina’s (New Orleans); Joe’s Pub, Highline Ballroom, and B.B. King’s Nightclub (NYC); The Bumbershoot Festival (Seattle); The Fuji Rock Festival (Japan); The Music Is Good Medicine Tour covering thirty-two shows (Japan), and many others. Occasional tours with Jimmy Buffett have broadened Jake’s experience, regularly exposing his virtuosity and amazing stage presence to crowds of up to 50,000. Jake has also performed on national television shows such as NBC’s The Late Show with Conan O’Brien (twice) and Last Call With Carson Daly, as well as featured on NPR’s Morning Edition, Public Radio International’s The World, and The Bob Edwards Show on XM Satellite Radio.

Valet parking for up to four hours is available for $6 at the Embassy Suites - Waikiki Beach Walk (20� Beachwalk) and the Wyndham at Waikiki Beach Walk® (227 Lewers Street), with any same-day purchase from any Waikiki Beach Walk merchant.

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2009 Outrigger Hotels Volleyball Invitational Continued from page 1

The 15th annual Outrigger Hotels

Invitational Championshiptitle winners Penn State

The Marketing/Sales team:

Front: Sam Hoffman,

Heather Doeringer, Ellen Isidro,

Kathy Hansberry, Lorry Ijima-Sato, Allyson Ijima, and

Rianne Tong

Back: Burton Kong, Dan Daniels,

Nancy Daniels, Danny Wang,

Scott Sato, Nathan Sato,

Gavin Ijima, and Kevin Wong

USC and #� ranked Penn State on the final night. The powerful Penn State Nittany Lions, led by head coach Mark Pavlik, repeated their exceptional performance to capture the Outrigger Hotels Volleyball Invitational championship title two years in a row. Winning all three of their matches, the team proudly accepted the championship trophy presented by Outrigger President and CEO David Carey. As always, the success of this tournament depended on the hard work and dedication of the corporate Marketing/Sales team and the many volunteers from the Outrigger

‘ohana. Mahalo to Ellie Agustin, Ellen Isidro, Lorry Ijima-Sato, Scott Sato, Allyson Ijima, Gavin Ijima, Rianne Tong, Sam Hoffman, Kevin Wong, Heather Doeringer, Danny Wang, Burton Kong, Nancy Daniels, Dan Daniels, Aitogi Totemese, Loan Freitas, Reuben Nakagawa, So’o Tana, Sue Ann Wells, Suzanne Lee, Wendle Raping, Cheryl Ann Vierra, Daniel Calpo, Jennifer Cabasag, Kathy Toyama, Lianne Bryant, Raymond Scott, Jo Ader, and Loretta Mendoza. Hope to see you next year for the �6th Annual Outrigger Hotels Invitational!

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Cost Shifting Distorts Health CareContinued from page 1

I am sure most people would agree that everything we do in these areas is worth every penny we spend as individuals, as a company, or as a community. But greater numbers of aging patients and expensive advances in medical science are not the only reasons why the cost of health care is climbing so fast. Unfortunately, the way our nation’s health care system is structured has also significantly contributed to the rise in costs. One of the reasons health care costs have gone up much faster than the rate of inflation is because of something called “cost shifting,” where the cost of care is “shifted” from one group of people to another. If one group is unable or unwilling to pay the bill, the costs are redistributed to others who can’t refuse. Today there is an unbelievable amount of government-mandated cost shifting going on throughout our health care system. This cost shifting is really a hidden tax on people who buy health insurance, but politicians and government officials don’t like to admit that. One of the biggest cost shifters is government itself, which currently pays for close to half of all U.S. health care. (Wall Street Journal, January 6, 2009: “federal, state and local governments paid for 46.2% of health-care spending in 2007, up from 45.3% in 2004 and 37.6% in �970.”) In the private sector, if one corporation controlled nearly 50 percent of the market, it would be called a monopoly. This week, the U.S. House of Representatives further increased government’s share of the health care market by passing, 289-�39, a major expansion of the State Children’s Health Insurance Program (SCHIP). The program will now provide government-funded health care for children in families earning up to 300 percent of the federal poverty-level wage ($63,08� for a family of four). Research shows that as SCHIP grows, it displaces existing private insurance policies for kids between one quarter and one half of the time. (Wall Street Journal, January 2�, 2009) Unfortunately, SCHIP and most other government health care programs do not pay fair market rates for physician care, diagnostic services, and hospital services. Using their monopoly-like power, government-paid health care programs pay less than the actual cost of services and force the shifting of the rest of the cost to private insurance payers. Government reimbursements paid to health care providers can be as low as 30 percent of the amount needed to cover their costs and allow a reasonable profit. On top of that, the bureaucracy, paperwork, delays in payment, and seemingly arbitrary denials of claims further increase the cost of doing business and further erode the income from providing government-paid health care. To survive in business, providers (hospitals, physicians, etc.) have to ask other patients – those with private insurance policies – to pay higher rates to make up for the very low reimbursement from government programs. This cost shifting is one of the major reasons why the cost of health care insurance keeps skyrocketing.

Government regulations also require hospitals to provide free care for patients who have no health care insurance and no other way to pay for services. All hospitals with an emergency room were essentially nationalized two decades ago (�986) when Congress passed the Emergency Medical Treatment and Active Labor Act (EMTALA), which requires them to provide medical screening examinations and treatment for “emergency medical conditions” (including labor and childbirth) for anyone who arrives at their door. The cost to hospitals, particularly those in areas with a high population of recent immigrants, has been staggering. As a result, many emergency rooms have closed and gone out of business. The emergency rooms and hospitals that are still in business can survive only by even more cost shifting. They have to ask patients with private insurance policies to pay higher rates to make up for the free services provided to others. Those “free” services are certainly not free to those other patients who are paying the bills. They are paying more than it costs for the services they receive so the providers can give “free” care to those without insurance. Because this situation results from government mandates, it amounts to a hidden tax. (This cost shifting explains why itemized hospital bills can include things like a $7 charge for a gauze pad, something a friend of mine experienced a few years ago!) Legislative mandates also cause cost shifting. Every state has a different “wish list” of medical services and conditions that health care insurance providers must cover in order to be authorized to do business in that state. Some states require that health care policies include coverage for chiropractic services, psychiatric care, alternative medicine, childbirth, neonatal care, etc., etc. The cost of providing these coverages is shifted to those who can “afford,” or at least cannot refuse, to pay, even if they do not want or need those services. Some states also mandate “community rating” of health care insurance. This means that by law, there is one price for health insurance, no matter what the person’s age, sex, lifestyle, health record, etc. might be. The cost of health care is thus shifted from the old to the young, from those who are obese and unfit, to those watch their diet and exercise daily, from those who smoke, to those who do not, from those who consume large amounts alcohol, to teetotalers, and so on. No wonder health care insurance is so expensive! No wonder that, as a result, over 40 million people in the U.S. do not or cannot afford to buy it. There are several other factors that also contribute rising health care costs, and I do not have all the answers to solving the problems of the U.S. health care system. But I do know that we should all fasten our seat belts. In the coming weeks and months, there will be lots of very significant new legislation on health care at both the state and federal levels. As you watch the action, look for the cost shifting – the hidden taxation – and let your elected representatives know how you feel about it.