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HomeMy WebLinkAbout1985-07-23; City Council; 8259; Employee benefits insurance2 a 0 E d 0 2 3 0 0 AB# 8'2S-9 MTG. 7!23/85 DEPT. CM TJ i'; P 3 CI; OF CARLSBAD - AGEND,. BILL TITLE DEPT. HD. % EMPLOYEE BENEFITS INSURANCE CITY MGR.- RECOMMENDED ACTION: Approve concept of preferred provider organization for implementation as part of the medical plan, retain existing benefit levels under the life, medical, dental, vision and long term disability plans, and direct staff to negotiate renewal of insurance program with Crown Life. ITEM EXPLANATION: The city's insured medical, dental, vision and life insurance program is provided by Crown Life Insurance Co. The policy is up for renewal on August 1, 1985. The following actions are recommended: Implement Preferred Provider Organization (PPO) The San Diego PPO is offered by Crown as part of the medical plan and as a cost containment feature. Rates and charges are negotiated with hospitals and doctors and the resulting savings in claim costs allows a reduction in premiums. The proposed decrease to implement PPO is 16%. Representatives of two employee groups have given conceptual approval. Direct Staff to Negotiate Renewal with Crown Life Crown is proposing a decrease in the medical premium of 5.8% effective August 1, 1985. The decrease is based on favorable claims experience of the city during the current policy year and is applicable to current medical plan design. This decrease will occur not withstanding the implementation of a PPO. If the Council approves the above recommendations, staff will negotiate amendments to the contract with Crown to implement the changes and return the final documents for for Council approval. Included will be premium rates, financial accounting, reserve and liability levels, and benefit vs non-benefit costs. AGENDA BILL NO. BdS 7 7/16/85 Page 2 FISCAL IMPACT: The total premium for Crown medical, dental, vision and life insurance is estimated at $690,858 for the 1984-85 policy year. If the existing program is renewed with Crown, the medical portion of the premium is expected to decrease 5.83%. If the PPO alternative is also implemented, the medical premium will decrease by an additional 16%. The proposed reduction in premiums will only affect the medical portion of the premiums. The reduction in overall premium costs cannot be precisely calculated until the rates are quoted by the insurance company. EXHIBITS : 1. Memo from Assistant City Manager, dated 6/25/85 2. Memo from CFA, Inc. President, dated 6/27/85 3. Memo from CCEA Staff Representative, dated 6/27/85 4. Memo from CPO President, dated 6/27/85 5. Report from Wyatt Co., dated 7/9/85 a June 25, 1985 TO : CITY MANAGER FROM: Assistant City Manager - Mannen EMPLOYEE BENEFITS PROGRAM The city provides an insured medical, dental, vision and life insurance programs through Crown Life Insurance Co. The city also provides medical coverage through Kaiser, a health maintenance organization (HMO). The policy year for the Crown programs runs from August 1 to July 31 each year. Renewal The Crown policy is up for renewal on August 1, 1985. The policy is experience rated and premiums are therefore based on claims and inflationary costs. Based on the current claims trend, Crown is proposing a reduction in premiums of approximately 5.83% for the next policy year. The exact premiums for the various categories of coverage (employee, employee plus one dependent, and employee plus two or more dependents) has not yet been precisely calculated but will reflect the above reduction. The contract with Crown provides for a retrospective premium adjustment. After the final results for the policy year are known, a final accounting is done. If actual claims are higher than expected the city may have to pay additional premiums. Last year the city was required to pay an additional $61,321. This year actual claims are anticipated to be significantly below expected claims and the city should receive a refund of premiums. It is recommended that any refund received be put into a retrospective premium reserve to help fund any future retrospective premium payments. 3 CITY MANAGER June 25, 1985 Page 2 PPO Alternative The city's employee benefits consultant, Mike Baker of the Wyatt Co., has been working with Crown Life to develop a cost containment alternative as part of the insured medical plan. Crown Life offers a preferred provider organization (PPO) program in conjunction with the San Diego Foundation for Medical Care. The PPO concept works as follows: The insurance company (through the San Diego Foundation for Medical Care) negotiates fixed rates and charges with doctors and hospitals, 25 hospitals and 80% of the doctors in San Diego County participate. Employees and dependents who use PPO doctors and hospitals would receive reimbursement from the insurance company for 90% of the covered charges (based on previously negotiated rates) from PPO doctors and hospitals. The hospital deductible would be waived. Employees and dependents who do not use PPO doctors and hospitals would only receive reimbursement from the insurance company for 90% of the covered charge that a PPO doctor or hospital would charge. If the bill from the doctor or hospital was more than the bill a PPO doctor of hospital would charge, the employee would have to pay the difference. An employee would also be subjected to a $250 hospital deductible if a non-PPO hospital was used. A PPO program is based on the concept of providing financial incentives for an employee to use a "preferred provider" who would provide medical and hospital services at a predetermined negotiated price. The price stability and predictability allows the insurance company to offer coverage at a reduced premimum. The estimated reduction in premium for Carlsbad is 16% through the use of the Crown PPO. The city has discussed the PPO alternative with the presidents of employee groups. Two employee group representatives have given tentative conceptual approval to the PPO alternative and they express support for the remaining benefits program. Selection of Insurance Carrier Crown Life has been the city medical insurance carrier since 1974. In 1979 dental and vision coverage was added to the insurance program. In 1982 the city changed from pooled concept to an experience rated concept of insurance and negotiated a retrospective premium payment system. * CITY MANAGER June 25, 1985 Page 3 The city staff and insurance consultant have reviewed the merits of seeking bids from other carriers on the employee insurance program. The premiums for the program are in line with other agencies. Actually the city's premiums are based upon our own claims plus administration and risk/insurance costs. The claims will be the same regardless of the carrier therefore non-benefit costs are the only variable. If non-benefit costs are competitive then there is no further need to bid the program. by the company are reasonable and consistent with practices in the industry. Claims have been paid in a timely and satisfactory manner. The non-benefit expenses charged Although the city has experienced a serious problem with the company when Crown inadvertently extend common-law dependent coverage to city employees, the problem has been satisfactorily resolved and the company has otherwise been generally responsible to the city's needs. The only current significant area of concern with the company's service involves claims utilization and management information. The company has not been able to provide the type of information needed to evaluate the benefit design and utilization in order to better control costs. The company has been working to develop a computer based claims and reporting system but has not yet been able to deliver the type of information felt necessary to be able to tightly control the program. However, the expense costs that the company is proposing are too high for the quality of the management information we are getting and will be negotiated downward if the city renews with Crown. Based on discussion with the city's insurance consultant and review by the staff it is not felt that significant savings would be realized by going out to bid on the city's insurance program ar this time. In addition to the staff time involved, the city would have to pay a consultant or broker, in the form of fees or commissions, to prepre bid specifications, market the program, and analyze proposals. If the Council wishes to go out to bid, the insurance carrier could be changed at the beginning of any month. It would take approximately three months to complete the process. In light of the fact that the city did go out to bid more companies may be interested in what would appear to be a good risk. FRANR MANNEN Assistant City Manager FM:b 5' EXHIBIT #2 June 27, 1985 TO : Personnel Director FROM: CFA, Inc. President, MARC REVERE The Carlsbad Firefighters Association, Inc. has partici- pated in discussions concerning employee insurance programs with the city, other employee associations, and Crown Life Insurance representatives. CFA, Tnc. endorses the proposed Crown Life group benefit plan, including the Preferred Provider Organization. MARC WVERE \ EXHIBIT #3 June 27, 1985 TO : Personnel Director FROM: CCEA Staff Representative, KELLY IRVING The Carlsbad City Employees' Association has participated in discussions concerning employee insurance programs with the city, other employee associations, and Crown Life Insurance representatives. CCEA endorses the proposed Crown Life group benefit plan, including the Preferred Provider Organization. h 7 - EXHIBIT #4 June 27, 1985 TO : Personnel Director FROM: CPOA President, DON METCALF The Carlsbad Police Officers' Association has participated in discussions of employee insurance programs with the city, other employee associations, and Crown Life Insurance representatives. DON METCALF I EXHIBIT #5 EMPLOYEE BENEFITS COMPENSATION PROGRAMS EMPLOYEE COMMUNICATIONS ADMINISTRATIVE SYSTEMS RISK MANAGEMENT INTERNATIONAL SERVICES THE COMPANY ACTUARIES AND CONSULTANTS SUITE 300 9339 GENESEE AVENUE SAN DIEGO, CALIFORNIA 92121 (619) 458-3900 OFFICES IN PRINCIPAL CITIES AROUND THE WORLD July 9, 1985 Mr. Frank Mannen Assi stant City Manager City of Carlsbad 1200 Elm Avenue Carlsbad, CA 92008 Dear Mr. Mannen: The purpose of this letter is to set forth our findings and recommendations concerning: o the pending August 1, 1985 group benefits program renewal o financial accounting for the August 1, 1984 to July 31, 1985 plan year. I. Background Information For the past 12 or more years, the City has utilized the Crown Life Insurance Company as its insurance carrier for group benefits. The plans currently include: life, supplemental life, dependent life, medical , dental , and vi si on care benefits. In 1981 we performed an analysis of plan design, funding concepts, cost sharing, and communications issues relative to the City's group benef i t s program. Our Findings A. Plan Design The benefits pl an was total ly redesigned to pl ace emphasi s upon outpatient as well as wellness type benefits. The City's program is very competitive by industry and govern- ment agency plan standards. B. Funding Concepts We found the past practice of 100 percent pooling to be cost ineffective and totally in the carrier's favor. A compari- son of pooling versus experience rating indicated that the -2- plan was approximately $85,000 too costly due to pooling the arrangement during the prior three plan years. As a result, we negotiated an experience-rated, retention charge, net cost funding arrangement for the improved program. Under the new arrangement, the City is eligible to participate in dividends or surplus premiums. In other words, if paid premiums, less incurred claims and less retention (carrier expense and profit margin) results in a surplus, the City is refunded this surplus as a dividend. Under the prior “pooled” concept, this was not true. C. Plan Financial Results Attached is a comparison of plan financial results for the period 1978 through 1984. In addition, the first 10 months of 1984-85 were annualized to provide projected results for the current year ending July 31, 1985 (See Exhibit A). o The period 1978-81 was under the pooled experience concept; therefore, the carrier kept the difference between paid premium and incurred claims. - For the 3-year period, paid premiums were $589,652, incurred claims were $434,382, and the amount retained, retention, by the carrier for expense and profit totaled $155,270 or 26.3 percent of premium. - We found these expenses high by industry standard and used this finding to support the need for implementing a dividend el i gi ble , experience-rated, net cost type contract . - The carrier was also over reserved by industry standards and actual claim runoff figures. o In the 1982-83 plan year, the financial results were: - $407,553 in paid premiums - $331,529 in incurred claims - $75,827 of retention charges - $197 dividend paid to City Comment: Retention was slightly higher than normal due to the plan redesign and first year start up costs. o The 1983-84 plan results were impacted by several large, catastrophic type claims as well as an overall increase in medical care, inflation, and utilization. The plan had the following results: THE %& COMPANY .. -3- - $571,855 in paid premiums - $662,309 in incurred claims - $87,725 of retention charges - $138,179 deficit Comment: Due to the aggregate stop loss, retrospective premium arrangement in effect with Crown Life, the City paid Crown $61,321 in additional premiums and Crown wrote off the deficit. o The financial results of the first 10 months of the 1984-85 plan year are very favorable. We have trended and annualized these results to arrive at an expected 12-month plan year result. Assuming claims continue as trended, the 1984-85 plan year results will be: - $564,116 of paid premium (no retrospective premium - $414,308 of incurred claims - $79,294 of retention charges - requi red) $70,514 is the estimated dividend for the year Comment: You can see that the carriers retention, as a percent of premium, is decreasing each year to a more competitive level. There are two ways of evaluating retention: - What the carrier charged as a percent of premium. - What they actually collected after writing off the deficit . Both are competitive by industry standards for the size of the group, the claims levels, and the cash flow results for the time periods illustrated. 111. The August 1, 1985 Plan Renewal (currently being negotiated) A. Plan Design & Funding Concepts (Current Concepts, No Changes 1 Based upon the favorable financial results of the plan, Crown Life has agreed to renew for next year (12-month period of 8/1/85 to 7/31/86) at a six percent decrease in plan medical rates. B. Comment We find the rates to be less important than the nonbenefit, retention costs provided, of course, that they are within a THE (%$& COMPANY -4- reasonable expected range. Also, claims will be the same regardless of the payor assuming they are paid according to the exact same plan design specifications. They only variables are plan reserves and retention/pool ing charges. Premium simply becomes an estimate of the monies needed for the period to pay claims and nonbenefit expenses. We feel confident we can lower the guaranteed retention charges for the coming year to a level of about 10.5 percent to 11.5 percent of premiums through negotiations with Crown Life. C. Recommendation #1 If we are successful in these negotiations and the City makes no plan desian chanaes. we recommend retainina Crown Life and r'enewing fir 1985"at -a six percent to eight bercent decrease in medical premiums for the current level of plan benefits . D. Proposed Changes to Plan Design During the past four months staff, the insurance committee, and our firm have evaluated plan design issues. There was no interest in changing the life, dental , vision, or disability income benefits. There was interest in either adding a1 ternative health maintenance (Kaiser type plans) or in adopting Preferred Provider and Hospital ReviewKOst Containment features in the Crown Life indemnity medical plan. Staff , the Committee, and consultants evaluated these alternatives as well as plan design features to assure their effectiveness. Comment: The medical plan design changes recommended and agreed to by the employee insurance committee and their cost impact to the medical plan are summarized in Exhibit B. In summary the plan design changes involve: o Adding outpatient surgery and diagnostic x-ray and lab benefits to encourage use of the lessor expensive outpatient services and avoidance of unnecessary, more costly hospital stays. o Adding a "hospital review program" which approves nonemergency, prehospital admittance, performs concurrent hospital review, and does post-hospital stay audits, if necessary. THE qtt COMPANY -5- - The City has had a hospital review plan for two years but no one used it because it lacked incentives and contained no penalties. - The San Diego Foundation for Medical Care, SDFFMC, will continue to perform this function. - The cost is included in the Crown Life retention charges. o Adding the SDFFMC Preferred Provider feature to the medical pl an. - Under this arrangement, employees using Preferred Provider hospitals (currently 24 member hospitals in San Diego County) and physicians (over 2,200 doctor members or 80 percent of total) will receive a 90 per- cent reimbursement of their expenses. Those who do not use PPO members will receive a 70 percent payment level. o Adding a separate $250 per hospital admission deductible requi rement to curtai 1 unnecessary hospital stay/ surgeries. o Employees who observe the rules of the Hospital Review Program wi 11 have the $250 hospital deduct i bl e wai ved and their expenses paid at the 90 percent level. Those who do not will receive a 70 percent reimbursement of their charges. o The net fiscal impact upon plan rates will be approximately a 16 percent decrease. - This is in addition to the proposed six percent decrease if the City makes no changes and leaves plan design as it is now. The three City bargaining units assisted with the development of the plan desi gn/cost containment features. They have endorsed the adoption of the design changes. The recommended cost containment saves the City money and it decreases employees out-of-pocket contributions. These changes are very effective towards controlling costs and are prevalent in industry and government agency medical plans. Staff and consultants thank the Committee for their input, support, and assi stance. in E qd! COMPANY 13 -6- Recommendation #2 We recommend the City authorize staff and consultants to take the following actions: o Continue to negotiate lower insurance rates, reserve levels, and retention charges with Crown Life to the lowest possible level. o Adopt the PPO and Hospital Review Medical plan changes effective 8/1/85. o Renew the improved program with Crown Life effective August 1, 1985 through July 31, 1986, contingent upon a complete, accurate, and reasonable fi nanci a1 accounting which includes payment of any dividends owed to the City. Crown will also be required to reduce last years claims for any "live-in dependent claims .'I Summary We find that the above recommended action is in the best interest of the City and its employees currently. The alternative would be to market the plan among competing carriers to establish its competitiveness in the market place. We find the plan is competitive now and the cost of marketing the plan would probably exceed any savings potentials. The plan is a negotiated program of carefully designed benefit plans and would have to be marketed exactly as designed (no exceptions). To do otherwise is to take away benefits and lose creditability with employees at a time when it appears to be at its highest peak in three years. We think marketing the plan would create a lot of excitement in the market place, perhaps result in a politically charged and disgruntled brokerage community and save little, if any, real hard benefit dol 1 ars. There are several advantageous group plan cash flow techniques which were discussed in our 1981 report that are still avai 1 ab1 e. They are: o Hold your own plan reserves (the $116,392) - or - o Paying premiums 90 days late to offset the loss of reserve/cash flow i nterest ($141,029) THE COMPANY -7- Assuming one of these two techniques meets with City budget (account i ng) requi rements and management sty1 e, we endorse either concepts adoption. * * * * * * This concludes our report. We are available to answer any questions you have have as well as to perform further analysis, if needed. Sincerely, THE WYATT COMPANY Michael D. Baker Consultant MDB:cr THE 6k$# COMPANY EXHIBIT A CITY OF CARLSBAD A Comparison of Plan Income and Expenses for the Pooled versus Experience-rated Contracts Period 1978-1985 Paid P remi um 78 - 81 $589,652 82 - 83 407,553 83 - 84 Incurred C1 aims $434,382 331,529 571,855"' 84 - 85 564 ,~6(~) 622,309 41 4, 308(4 ) Non-Benefi t Costs for Retention, Non-Benefit Risk, & Costs as a Charges Premi um Dividends Other Pool i ng % of 18.6% $197 -0- - - I THE COMPANY $155,270 26.3% N/A(~) $ - o - 75,827 87,725 79,294(4) 12.5% 15.2% -0- ( 138,179 ) (3 ) 70,514(5) N/A (l) Prior contract was pooled for experience purposes; claims and retention were not accounted for and dividends were never payble under the contract. (') (3) (4) Incl ude a retrospecti ve premi um payment of $61,321. After the retrospective premium payment, Crown wrote off the remaining de in accordance with the aggregate pooling contract. Twelve months estimated financial results based upon 10 month's claims experience to date. dividend of $70,514 this year. Assuming current trends continue, the City will rece icit ve a (5) The City also has a $116,392 Claims Reserve on deposit with Crown. Any unused portion of this reserve after contract termination and claims run out will be refunded to the City. EXHIBIT B CITY OF CARLSBAD Summary of Plan Design Changes and their Cost Impact If Made Effective 4/1/85 P1 an of Benefits Life Insurance No Change Dental TC h a n ge Vision TC h a n g e tong-Term Di sabi 1 i ty No Change Medical Pay 100% of URC for: o -8500 per person, per year accident (1) o OP surgery w/o dollar limit (1) o Preadmission testing (1) o Second opinion surgery (1) o Home Health Care (2) - Application of Separate $250 per Hospital Admission deductible o Add "San Diego Foundations for Medical Care Hospital Review" and Preferred Provider Organi zati on Programs. (1 ) o Waive hospital deductible for PPO and hospital review participants. (1) o Retain current 90% of URC to $5,000 plus 100% thereafter per person per year benefit payment level. (1) - Pay mental and nervous outpatient doctor visits and prescriptions at 90% rather than 50%. (1) - Adopt alternative "Medical Review Service'' program for hospital review; No PPO. (2) o Copayment reduction from 90% to 70% on those participants not submitting to proper "hospital review" procedures, etc. (1) Recommended to become effective 8/1/85 (2) Not Recommended at this time. Impact Upon Costs 0% 0% 0% 0% 0% 0% 0% 0% N/A -16.0 % t0.25 % -5.0 % THE %ft COMPANY 17 SPECIAL EXHIBIT CITY OF CARLSBAD SUMMARY RECOMMENDATIONS FOR GROUP BENEFITS PROGRAM EFFECTIVE 8/1/85 o RENEW PROGRAM CONTRACT WITH CROWN LIFE EFFECTIVE 8/1/85 AT A DECREASE IN COSTS RANGING FROM 6 PERCENT TO 16 PERCENT. o CONTINUE TO NEGOTIATE WITH CROWN LIFE FOR LOWEST POSSIBLE NONBENEFIT/INSURANCE COSTS THUS MAXIMIZING CITY'S DIVIDEND (PREMIUM REFUND) AMOUNT FOR 1985. o ADOPT THE HOSPITAL REVIEW, PREFERRED PROVIDER, PLAN DESIGN COST CONTAINMENT FEATURES TO MAXIMIZE BENEFITS, REDUCE COSTS, AND UTILIZE COST EFFICIENT MEDICAL DELIVERY SYSTEMS. THE waft COMPANY 1K SPECIAL EXHIBIT I1 SPECIAL RETENTION ILLUSTRATIONS AFTER ADJUSTED FOR DIVIDtNDS AND DEFICIT WRnt OFFS P1 an Unadjusted Di vi dend Deficit Net Year Retention Payments Write Offs Retent i on 82-83 $ 75,827 $ 197 N/A $75,630 83-84 87,725 N/A $138,179 ( 50,454.) 84-85 79,294 70,514 TOTAL $242,846 $70,711 N/A $138,179 8,780 $33,956 THE 6b$Z#!f COMPANY I7 REPRESENTATIVE CLIENT LISTINGS 30 THE COMPANY REPRESENTATIVE GROUP BENEFIT PROGRAM AND GOVERNMENT AGENCIES CLIENT LISTING CITY OF ANTIOCH, CALIFORNIA CITY OF CARLSBAD, CALIFORNIA CITY OF CHICAGO CITY OF LA MESA, CALIFORNIA CITY OF LONG BEACH, CALIFORNIA CITY OF LOUISVILLE & BOARD OF HEALTH CITY OF MODESTO, CALIFORNIA CITY OF MADISON, WISCONSIN CITY OF MILWAUKEE CITY OF NATIONAL CITY, CALIFORNIA CITY OF OCEANSIDE, CALIFORNIA CITY OF SAN DIEGO, CALIFORNIA COUNTY OF MARICOPA, ARIZONA COUNTY OF SAN MATEO, CALIFORNIA GOVERNMENT OF ONTARIO, CANADA HENNEPIN COUNTY, MINNESOTA MINNESOTA STATE TEACHERS RETIREMENT SYSTEM ORANGE COUNTY WATER DISTRICT, CALIFORNIA STATE OF CALIFORNIA STATE OF ILLINOIS RETIREMENT SYSTEM STATE TEACHERS RETIREMENT SYSTEM, CALIFORNIA STATE OF VERMONT MUNICIPAL EMPLOYEES RETIREMENT SYSTEM TEACHERS RETIREMENT SYSTEM, TEXAS UNIVERSITY OF MINNESOTA THE @# COMPANY a REPRESENTATIVE CLIENT LIST NATIONAL ACCOUNTS AMERICAN MOTORS CORPORATION ADDRESSOGRAPH-MULTIGRAPH CORP. THE ANACONDA COMPANY BEATRICE FOODS CO. BENDIX CORP. BORG-WARNER CORP. DOW CHEMICAL CO. ESMARK, INC. GENERAL ELECTRIC CO. GENERAL MOTORS CORP. GOODYEAR TIRE & RUBBER CO. GULF & WESTERN INDUSTRIES, INC. INTERNATIONAL BUSINESS MACHINES CORP. KIMBERLY-CLARK CO. K-MART CORPORATION N L INDUSTRIES, INC. RELIANCE ELECTRIC CO. REPUBLIC STEEL CORP. ROCKWELL INTERNATIONAL CORP. SOUTHERN RAILWAY CO. STANDARD BRANDS, INC. STANDARD OIL CO. (INDIANA) UNITED AIRLINES, INC. WHITE CONSOLIDATED INDUSTRIES, INC. 22 THE %ff COMPANY REPRESENTATIVE SAN DIEGO CLIENT LIST "A" COMPANY, INC. AMERDYNE INDUSTRIES, INC. ATLAS HOTELS, INC. CHEM-TRONICS, INC. CITY OF CARLSBAD CITY OF LA MESA CITY OF SAN DIEGO COLUMBIA SAVINGS & LOAN ASSOCIATION CONTINENTAL AIRLINES FOODMAKER, INC. FOTOMAT CORPORATION FRAZEE PAINTS HOME FEDERAL JOHN HINE PONTIAC IMPERIAL CORPORATION OF AMERICA IRVINE RANCH WATER DISTRICT KYOCERA INTERNATIONAL, INC. LA JOLLA COUNTRY CLUB LUCE, FORWARD, HAMILTON & SCRIPPS MONITOR LABS NATIONAL PUMP & INJECTOR SALES & SERVICE PALOMAR POMERADO HOSPITAL DISTRICT PROVIDENT CAPITAL CORPORATION SAN DIEGO HOSPITAL ASSOCIATION SEA WORLD, INC. SOUTHWEST BANK SUN SAVINGS & LOAN ASSOCIATION TITAN SYSTEMS, INC. TORREY PINES BANK VAGABOND HOTELS, INC. VILLAVIEW COMMUNITY HOSPITAL, INC. WASHINGTON INVENTORY SERVICE WICKES CORPORATION WINDOWMASTER PRODUCTS, INC. XSCRIBE CORPORATION INC. THE 6&&? COMPANY 673