Letter from the CEO
Dear Friends:

Happy holidays!

Every year at about this time, I find it helpful to step back and take some time to identify the trends that have developed over the past 12 months and the areas of the business our clients find most important. For 2006, we've noticed that usage of LifeCare's professional care management network continues to rise sharply. As the nation ages, more and more people are forced to deal with complex elder care issues—and many people want or need professional guidance to do so. As a result, a growing number of organizations are turning to LifeCare to offer these services to their employees and members.

I encourage all of our clients to continue to aggressively promote the caregiving and aging-related benefits that they make available to their key constituencies. I do so because 81 percent of respondents to a 2005 eldercare survey conducted by LifeCare and PacifiCare said that they continue to take time during their workday to make arrangements for eldercare or to check on their loved ones. In many of these cases, professional care managers could have been utilized and workers could have avoided workday interruptions, loss of productivity and the stress that often accompanies tending to eldercare needs in this way.

Clients who wish to provide basic information about LifeCare's professional care management network and the invaluable services that professional caregivers deliver can contact their account managers at any time. We have a wide variety of materials that explain the services of professional care managers and how to utilize them to maximum benefit.

Of course, people who have access to programs like LifeCare's are the lucky ones. Millions of people nationwide who are caring for older family members and loved ones simply don't know about professional care managers and the important services they provide. And many of these people don't have easy access to care managers. Fortunately, there are a few excellent organizations—including the National Alliance for Caregiving and Corporate Voices for Working Families—that are diligently working to raise the national dialogue about the growing need for professional care management. LifeCare supports these organizations and looks forward to helping them continue their work in 2007.

Once again, on behalf of everyone here at LifeCare, I wish you and everyone at your organization happy holidays and a prosperous New Year!

As always, we'd appreciate knowing how we can better serve you. So e-mail us at connection@lifecare.com, fax us at 203-291-3571, or call us at 800-873-4636 if you'd like to share ideas and offer feedback.

Sincerely,

Peter G. Burki, CEO