Riches in niches: U.S. cops, in-flight movies may be model for Panasonic survival

TOKYO (Reuters) – Panasonic Corp’s answer to the brutal onslaught on its TV sales may be in a product the Japanese firm launched 17 years ago and which is a must-have for U.S. police cars.

Two thirds of the 420,000 patrol cars in the United States are equipped with the company’s rugged Toughbook computers, and Panasonic chief Kazuhiro Tsuga sees the niche product as a model for how the sprawling conglomerate can make money beyond a gadget mass market increasingly dominated by Samsung Electronics and Apple Inc.

“What we need are businesses that earn, and they don’t necessarily have to have big sales,” Tsuga told reporters after his appointment as company president was approved in June.

Tsuga also sees avionics – Panasonic is the world’s leading maker of in-flight entertainment systems – automated production machinery, and lighting as profit earners as income from TVs and other consumer electronics dwindles.

Panasonic, Sony Corp and Sharp Corp have been hit hard by South Korean-made TVs, Blu-ray players and mobiles and Apple tablets that threaten to wipe out Japan as a global consumer electronics hub. The Toughbook, sold only to businesses and governments, was conceived as a response to the type of profit sapping competition that is now roiling TVs.

“At the time, we were losing in personal computers to Compaq and IBM,” said Hide Harada, who heads the Toughbook unit from the group’s headquarters in Osaka, western Japan. IBM later sold its laptop business to China’s Lenovo Group and Compaq was absorbed by Hewlett Packard.

“It was a guerilla strategy,” Harada said, recalling the Toughbook’s launch in 1996. Panasonic’s promotion campaign included driving jeeps over its computers, dropping them on the ground and dousing them with coffee on morning TV shows.

At rival Sony, too, signs of a niche strategy are emerging in a battle with Apple and South Korean brands that are making gains from a weaker won currency. Combining technologies from several divisions – from projectors to video cameras and headphones – Sony’s 3D Viewer head-mounted visor gives users the feel they are sitting in the middle of a 500-seat movie theater.

The target audience, says product manager Hideki Mori, are those consumers looking to immerse themselves in computer graphics and high quality movies. “Demand has been greater than anticipated,” he said, declining to give specific sales numbers.

LOSING GROUND

The two Japanese firms will show off their wares at this week’s annual CES consumer electronics show in Las Vegas, an event usually dominated by prototypes for next-generation TV technology. Tsuga is due to deliver the event’s keynote speech.

In the past, the Japanese have showcased ultra high-definition 4K televisions, while Samsung and LG Electronics Inc have displayed their ultra-thin OLED (organic light-emitting diode) screens. But, at a price tag likely 10 times that of conventional LCD screens, consumers will take a while to make the generational leap.

Meanwhile, losses at Panasonic, Sony and Sharp mount up. Panasonic has predicted a net loss of $ 8.9 billion in the year to end-March, while Sharp, which has been bailed out by banks, expects an annual loss of $ 5.24 billion. Helped by asset sales, Sony should eke out a small profit.

Japan’s share of the flat panel TV market has shrunk by around a quarter in the past two years, to around 31 percent, according to the Japan Electronics and Information Technology Industries Association. Amid a prolonged strong yen squeeze, the industry lobby expects Japan’s share of the DVD and Blu-ray disc player market to have dropped to around half last year from nearly two-thirds in 2010. Just 8 of every 100 mobile phones sold globally are now Japanese. Manufacturers have shifted TV production overseas, with output in Japan now less than a tenth of what it was two years ago.

Tsuga, who acknowledges Panasonic is a “loser” in consumer electronics, has warned his business units they will be closed or sold if they fail to match Toughbook’s success, giving each two years to deliver at least a 5 percent operating margin.

Any niche-winning strategy that takes his company away from mass market products means Tsuga will need fewer workers, investors say. Panasonic is Japan’s biggest commercial employer with a workforce of more than 300,000. It plans to axe 10,000 jobs in the year to March on top of the 36,000 that were cut in the previous year. More big cuts in Japan, where major lay-offs are uncommon and severance packages expensive, won’t be easy, said Yuuki Sakurai, CEO at Fukoku Capital Management in Tokyo, which manages assets worth $ 18.4 billion, but doesn’t own Panasonic stock.

“It’s like trying to chase the course of a battleship. If they want to become a light cruiser or destroyer, they’ll have to lose employees,” Sakurai said.

GLOBAL STANDARD

Workers Panasonic will likely keep are those in Kobe in western Japan who build the Toughbook PCs – a category defined by a U.S. military quality benchmark that serves as a de facto global standard. Its market share is on a par with Apple’s in tablets, with most U.S. police departments willing to pay as much as $ 3,000 for the rugged laptops which can withstand bumpy high-speed chases and other rigors of street policing.

“They have been near bullet-proof. We had a patrol car catch fire and after all the heat, smoke and water dissipated the computer continued to function,” said Bill Richards, logistics commander for the Tucson police in Arizona, whose force owns close to 650 Toughbooks that connect patrol cars with dispatchers, license records and other police databases.

Other customers include the New York Police Department, California Highway Patrol, Brazilian Military Police and British and U.S. military, which use them on unmanned aerial drones.

“Panasonic is the bellwether, the most recognized brand. The Toughbook is almost synonymous with rugged notebooks,” said David Krebs, a vice president at VDC Research.

While margins in the global PC market are getting slimmer – research firm IHS iSuppli sees annual sales growth of around 7 percent over the next four years from about 216 million PCs last year – the premium-price, fatter margin, rugged PC niche is seen growing by around 10 percent a year to nearly 1.2 million computers by 2016, according to VDC Research.

ANALOG EDGE, DIGITAL SAMENESS

At the Kobe factory, Toughbooks are put through their paces: hosed down to test water resistance, baked to 50 degrees Celsius, chilled to minus 20 degrees and dropped on their tops, bottoms, sides and corners.

Harada describes it as an analog edge in digital products.

“Whoever makes them, the insides of a computer are pretty much the same. It’s the mechanical side that makes us different,” he explained.

The creators of Sony’s 3D Viewer, too, are looking for mechanical appeal as much as electronic prowess. A second, redesigned model, which is now on sale in Japan, is 25 percent lighter at 330 grams, has a better grip and gives users the option of headphones or earplugs, said Mori. “We want to make it lighter,” he added, noting engineers are looking to slim down the heaviest component, the lenses.

While Sony keeps chasing consumers, Panasonic is pursuing a business-to-business niche market model that Tsuga has put at the heart of his revival plan. High on Harada’s target list for the Toughbook are Japanese police forces, which don’t yet buy the computers.

There are no plans, he said, to make cheaper mass market models – which could protect some jobs in the group.

“We aren’t going to put it in Best Buy or Walmart. I don’t think it would turn out well.”

($ 1 = 85.9250 Japanese yen)

(Editing by Ian Geoghegan)

Gadgets News Headlines – Yahoo! News

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Award-season hopefuls stop in Palm Springs

PALM SPRINGS, Calif. (AP) — The Award Season Express made its first stop of the new year in the middle of the desert a couple hours east of Hollywood at the annual Palm Springs International Film Festival gala.

A blast of Golden Globe nominees and Oscar hopefuls walked the press gauntlet Saturday night, including Naomi Watts ("The Impossible"), Helen Hunt and John Hawkes ("The Sessions"), Ben Affleck ("Argo") and "Arbitrage" star Richard Gere, who received the night's so-called Chairman's Award.

"Great," Gere noted with more than a touch of sarcasm. "That's better than the Governors Award?" he inquired with a chuckle. "What's the pecking order of these awards? I want to know. Am I getting the best award? I'm not going in unless I'm getting the best award!"

Though the 63-year-old Gere has never received an Oscar nomination, there were previous Academy Award winners aplenty at the Palm Springs gala. Among them, Sally Field, the night's honoree for career achievement, including her hard-won role of Mary Todd in director Steven Spielberg's "Lincoln."

"I still can't believe I got the role," Field replied, cracking a smile. "Did I get it."

Turning serious, Field told the black-tie audience she was proud to be part of the film and happy to still be working. "I'm very lucky. ... Next year it'll be 50 years that I've been in the business as a professional. It's been a wild ride," she said.

This upcoming week, the Awards Season Express has a bit of a wild ride itself, with the People's Choice show, two critics awards ceremonies and Thursday morning's Oscar nominations.

So how does the phrase "Oscar nominee Bradley Cooper" sound to the "Silver Linings Playbook" actor?

"That would be incredible," Cooper answered, explaining that he just may sleep through the pre-dawn nomination announcements. "Yeah, I'm sure I'll get up, but maybe I'll be asleep. I don't know."

And just three days after the Oscar nominations, it's the 70th annual Golden Globe Awards — a "much, much friendlier" show, exclaimed "Hitchcock" nominee Helen Mirren.

"And it has to do with those tables in still quite a small room," she added. "They haven't allowed it to get enormous. ... Everybody table jumps and chats. It's always slightly naughty. The hosts are always naughty. I can't wait to have Tina Fey and Amy Poehler doing it. That's going to be such fun."

___

Complete list of 2013 Palm Springs International Film Festival honorees:

__"Argo's" Ben Affleck, Alan Arkin and Bryan Cranston received the Ensemble Performance Award.

__Bradley Cooper, the actor Desert Palm Achievement Award for "Silver Linings Playbook."

__Naomi Watts, the actress Desert Palm Achievement Award for "The Impossible."

__Helen Hunt, Spotlight Award for "The Sessions."

__Helen Mirren, International Star Award for "Hitchcock."

__Mychael Danna, the Frederick Loewe Award for Film Composing for "Life of Pi."

__Richard Gere, Chairman's Award for "Arbitrage."

__Robert Zemeckis, Director of the Year Award for "Flight."

__Sally Field ("Lincoln"), Career Achievement Award.

__Tom Hooper, the Sonny Bono Visionary Award for "Les Miserables."

___

Online:

http://www.psfilmfest.org/index.aspx

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Despite New Health Law, Some See Sharp Rise in Premiums

Health insurance companies across the country are seeking and winning double-digit increases in premiums for some customers, even though one of the biggest objectives of the Obama administration’s health care law was to stem the rapid rise in insurance costs for consumers.

Bob Chamberlin/Los Angeles Times

Dave Jones, the California insurance commissioner, said some insurance companies could raise rates as much as they did before the law was enacted.

Particularly vulnerable to the high rates are small businesses and people who do not have employer-provided insurance and must buy it on their own.

In California, Aetna is proposing rate increases of as much as 22 percent, Anthem Blue Cross 26 percent and Blue Shield of California 20 percent for some of those policy holders, according to the insurers’ filings with the state for 2013. These rate requests are all the more striking after a 39 percent rise sought by Anthem Blue Cross in 2010 helped give impetus to the law, known as the Affordable Care Act, which was passed the same year and will not be fully in effect until 2014.

 In other states, like Florida and Ohio, insurers have been able to raise rates by at least 20 percent for some policy holders. The rate increases can amount to several hundred dollars a month.

The proposed increases compare with about 4 percent for families with employer-based policies.

Under the health care law, regulators are now required to review any request for a rate increase of 10 percent or more; the requests are posted on a federal Web site, healthcare.gov, along with regulators’ evaluations.

The review process not only reveals the sharp disparity in the rates themselves, it also demonstrates the striking difference between places like New York, one of the 37 states where legislatures have given regulators some authority to deny or roll back rates deemed excessive, and California, which is among the states that do not have that ability.

New York, for example, recently used its sweeping powers to hold rate increases for 2013 in the individual and small group markets to under 10 percent. California can review rate requests for technical errors but cannot deny rate increases.

The double-digit requests in some states are being made despite evidence that overall health care costs appear to have slowed in recent years, increasing in the single digits annually as many people put off treatment because of the weak economy. PricewaterhouseCoopers estimates that costs may increase just 7.5 percent next year, well below the rate increases being sought by some insurers. But the companies counter that medical costs for some policy holders are rising much faster than the average, suggesting they are in a sicker population. Federal regulators contend that premiums would be higher still without the law, which also sets limits on profits and administrative costs and provides for rebates if insurers exceed those limits.

Critics, like Dave Jones, the California insurance commissioner and one of two health plan regulators in that state, said that without a federal provision giving all regulators the ability to deny excessive rate increases, some insurance companies can raise rates as much as they did before the law was enacted.

“This is business as usual,” Mr. Jones said. “It’s a huge loophole in the Affordable Care Act,” he said.

While Mr. Jones has not yet weighed in on the insurers’ most recent requests, he is pushing for a state law that will give him that authority. Without legislative action, the state can only question the basis for the high rates, sometimes resulting in the insurer withdrawing or modifying the proposed rate increase.

The California insurers say they have no choice but to raise premiums if their underlying medical costs have increased. “We need these rates to even come reasonably close to covering the expenses of this population,” said Tom Epstein, a spokesman for Blue Shield of California. The insurer is requesting a range of increases, which average about 12 percent for 2013.

Although rates paid by employers are more closely tracked than rates for individuals and small businesses, policy experts say the law has probably kept at least some rates lower than they otherwise would have been.

“There’s no question that review of rates makes a difference, that it results in lower rates paid by consumers and small businesses,” said Larry Levitt, an executive at the Kaiser Family Foundation, which estimated in an October report that rate review was responsible for lowering premiums for one out of every five filings.

Federal officials say the law has resulted in significant savings. “The health care law includes new tools to hold insurers accountable for premium hikes and give rebates to consumers,” said Brian Cook, a spokesman for Medicare, which is helping to oversee the insurance reforms.

“Insurers have already paid $1.1 billion in rebates, and rate review programs have helped save consumers an additional $1 billion in lower premiums,” he said. If insurers collect premiums and do not spend at least 80 cents out of every dollar on care for their customers, the law requires them to refund the excess.

As a result of the review process, federal officials say, rates were reduced, on average, by nearly three percentage points, according to a report issued last September.

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'Texas Chainsaw 3D' is strong No. 1; 'Promised Land' disappoints

"Texas Chainsaw 3D" easily sliced through the competition at the box office this weekend — not that its rivals were particularly threatening.

As the only new film to hit theaters nationwide, the reboot of the 1974 horror flick only had to contend with a handful of movies that have been out for weeks. Still, the low-budget movie did better than expected, collecting a robust $23 million during its opening weekend, according to an estimate from distributor Lionsgate.

Heading into the weekend, pre-release audience polling suggested that "The Hobbit: An Unexpected Journey" would claim No. 1 for the fourth consecutive weekend, while "Chainsaw" looked poised to finish second with around $16 million. Instead, Peter Jackson's film grossed $17.5 million, raising its domestic total to $263.8 million.

PHOTOS: All-time box office leaders

Meanwhile, both "Django Unchained" and "Les Misérables crossed the $100-million milestone. Since being released on Christmas Day, Quentin Tarantino's film has sold $106.4 million, while the film version of the Broadway musical is up to $103.6 million. The continued performance of the movies helped to start the year off on a positive note, as ticket sales were up 7% compared with the same weekend in 2012.

"Texas Chainsaw 3D" is the sixth film to feature the villain Leatherface since the original horror film was released almost four decades ago. The new movie posted the second-highest opening of any "Chainsaw" film — not adjusting for inflation — behind 2003's "The Texas Chainsaw Massacre," the Jessica Biel film which ultimately sold a strong $80.6 million.

Financed by Avi Lerner's Millennium Pictures for about $20 million, "Texas Chainsaw 3D" is being distributed by Lionsgate. The movie — which has notched only a 23% fresh rating on the review aggregation site Rotten Tomatoes — received an average grade of C+ from opening-weekend moviegoers, according to market research firm CinemaScore. However, horror films often receive poor CinemaScores and still go on to do good business at the box office.

The film attracted a young audience, 64% of whom were under the age of 25. Of those in that age group, 1 out of 3 said the main reason they showed up to see the film was because the musical artist Trey Songz had a role in it. "Chainsaw" is the first film the 28-year-old Grammy nominee has starred in, and he has been heavily promoting the picture to his 5.6-million Twitter followers in recent weeks.

PHOTOS: Horror movie locations around Los Angeles

Also this weekend, the Matt Damon-John Krasinski collaboration "Promised Land" got off to a bad start. The environmental picture, which was co-written by and stars the actors, expanded from 25 theaters to 1,676 locations but brought in a lackluster $4.3 million.

The Focus Features production about a town with natural gas reserves only cost the studio and co-financier Participant Media about $15 million to produce. But with middling reviews and a B CinemaScore, it's a long shot that the film will end up being a hit even given its modest budget.

Another film that expanded this weekend was "The Impossible," the $40-million production about a family in the aftermath of the 2004 Thailand tsunami. Playing in 572 locations, the Summit Entertainment release collected a so-so $2.8 million. However, the picture is faring far better overseas. Already a hit in Spain, where its filmmaker hails from, the movie debuted in the United Kingdom this weekend and grossed $6.4 million. Overall, the movie has grossed $81.2 million abroad and $3.4 million in the U.S. and Canada.

ALSO:

The wizardry behind "The Impossible's" tsunami

'Texas Chainsaw 3D' to get nicked by 'Hobbit' at the box office

"Texas Chainsaw 3D" director: Leatherface abused, stunted, lethal

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Four killed, including gunman, at Aurora, Colo., townhome

Four people died at an Aurora, Colo., townhome early Saturday morning, including a gunman who barricaded himself inside for hours, police said.

Around 9 a.m., police said the suspect shot at officers from a second-story window. They returned fire, hitting the man. The suspect was pronounced dead in an upstairs bedroom.

Inside the home, police discovered two other men and one woman dead.

Another woman was able to escape early Saturday morning when she jumped from an upstairs window, and called police around 3 a.m., Aurora Police Sgt. Cassidee Carlson told the Denver Post. The woman, who escaped unharmed, told police she saw three bodies that "appeared lifeless," police said.

Several neighboring homes were evacuated and police sent out emergency notifications to neighbors at 3 a.m., KUSA-TV , an NBC affiliate, reported.

“After we arrived on scene, there were no more shots fired up until he fired at us,” Carlson told the Associated Press. “During this time he was all over the house. He moved furniture. He was throwing things. He was agitated. He was irrational.”

Aurora, a Denver suburb, is where a gunman killed 12 people and injured at least 70 others at a movie theater July 20.

[Updated at 1:41 p.m., Jan. 5: Carlson said in an email to the Los Angeles Times that there was no indication the four people had any connection to the theater shooting.]

Police said they told the suspect by phone and a bullhorn to exit the townhome. Police reached him by phone "intermittently" over several hours and the suspect hung up multiple times on hostage negotiators, police said.

Authorities did not release the name of the victims or suspect.

andrew.khouri@latimes.com

@khouriandrew

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Ohio sheriff confronts protesters in football rape case

STEUBENVILLE, Ohio (Reuters) – A county sheriff under fire for how he has handled a high school rape investigation faced down a raucous crowd of protesters on Saturday and said no further suspects would be charged in a case that has rattled Ohio football country.

Ma’lik Richmond and Trenton Mays, both 16 and members of the Steubenville High School football team, are charged with raping a 16-year-old fellow student at a party last August, according to statements from their attorneys.

Jefferson County Sheriff Fred Abdalla, accused of shielding the popular football program from a more rigorous investigation, told reporters no one else would be charged in the case, just moments after he addressed about 1,000 protesters gathered in front of the Jefferson County Courthouse.

“I’m not going to stand here and try to convince you that I’m not the bad guy,” he said to a chorus of boos. “You’ve already made your minds up.”

The “Occupy Steubenville” rally was organized by the online activist group Anonymous.

Abdalla declined to take the investigation over from Steubenville police, sparking more public outrage. Anonymous and community leaders say police are avoiding charging more of those involved to protect the school’s beloved football program.

The two students will be tried as juveniles in February in Steubenville, a close-knit city of 19,000 about 40 miles west of Pittsburgh.

The case shot to national prominence this week when Anonymous made public a picture of the purported rape victim being carried by her wrists and ankles by two young men. Anonymous also released a video that showed several other young men joking about an assault.

Abdalla, who said he first saw the video three days ago, said on Saturday that it provided no new evidence of any crimes.

“It’s a disgusting video,” he said. “It’s stupidity. But you can’t arrest somebody for being stupid.”

The protest’s masked leader, standing atop a set of stairs outside the courthouse doors, invited up to the makeshift stage anyone who was a victim of sexual assault. Protesters immediately flooded the platform, which was slightly smaller than a boxing ring.

Victims passed around a microphone, taking turns telling their stories. Some called for Abdalla and other local officials to step down from office for not charging more of the people and for what they called a cover-up by athletes, coaches and local officials.

Abdalla then climbed the stairs himself and addressed the protest over a microphone.

Abdalla said he had dedicated his 28-year career to combating sexual assault, overseeing the arrest of more than 200 suspects.

Clad in a teal ribbon symbolizing support for sexual assault victims, Abdalla later told Reuters that he stood by his decision to leave the investigation with local police. He would have had to question all 59 people that the Steubenville Police Department had already interviewed in its original investigation, he said.

“People have got their minds made up,” he said. “A case like this, who would want to cover any of it up?”

(Editing by Daniel Trotta and Eric Walsh)

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Missoni scion on plane missing in Venezuela

CARACAS, Venezuela (AP) — Rescue crews used boats and aircraft on Saturday to search for a small plane that disappeared off Venezuela carrying the CEO of Italy's iconic Missoni fashion house and five other people.

But more than a day after the BN-2 Islander aircraft disappeared from radar screens on its short flight from Venezuela's coastal resort islands of Los Roques to Caracas, no sign of the plane had been found, officials said.

"We have no other news" about the plane carrying Vittorio Missoni, the head of the company; his wife, Maurizia Castiglioni; two of their Italian friends; and two Venezuelan crew members, said Paolo Marchetti, a Missoni SpA official. He spoke briefly to reporters as he left company headquarters in the northern Italian town of Sumirago on Saturday afternoon.

Missoni's younger brother, Luca, who is active in the family-run business, was reportedly traveling to Venezuela on Saturday to monitor search efforts.

"We're holding onto a glimmer of hope," said Oswaldo Scalvenzi , a relative of Elda Scalvenzi, one of the Missoni friends aboard the flight. "Until we can see the wreckage" hope will remain, Scalvenzi told Italian state TV on Saturday night.

Search teams were using a plane and a helicopter, working together with the Venezuelan coast guard, Venezuela's National Civil Aviation Institute said in a statement Saturday.

The twin-engine plane had enough fuel on board for a three-hour flight, said Francisco Paz Fleitas, president of the civil aviation agency. Paz said the plane took off at 11:39 a.m. on Friday and had been expected to arrive at Caracas' Simon Bolivar International Airport 42 minutes later.

The civil aviation agency said the authorities declared an alert after the plane didn't make contact with the control tower at the Caracas airport or with the tower in Los Roques.

"The last position registered in radar data and those supplied by a system on board the aircraft" was about 11 miles (18 kilometers) south of Los Roques, the agency said in the statement.

The Italian newspaper La Repubblica reported that Venezuelan aircraft, boats and helicopters took off at dawn Saturday to resume the search for the missing plane, which had been suspended on Friday night.

Venezuelan Interior Minister Nestor Reverol announced that the plane was missing hours after it took off from Los Roques, a string of islands popular for scuba diving, white beaches and coral reefs, and where the Missonis and their friends were on vacation.

Reverol said on Friday that two navy patrol boats were involved in the search and that a specialized oceanographic ship, the Guaicamacuto, also had been deployed.

Vittorio Missoni is the eldest son of the company's founder, Ottavio, who at 91 still follows the business.

The Corriere della Sera newspaper reported that Ottavio and his wife Rosita were at their home in Italy, along with their daughter Angela, waiting for information about the search. Rosita Missoni designs housewares for the company, and Angela is the company's creative director.

The Missoni fashion house, with its trademark zigzag and other geometric patterns in sweaters, scarves and other knitwear, is one of Italy's most famous fashion brands abroad. It is scheduled to display its latest menswear creations at a fashion show in Milan later this month.

Vittorio Missoni played a key role in marketing the Missoni family creations in Asia, especially in Japan, Hong Kong and South Korea as general director of marketing for Missoni SpA. He also spearheaded a push for the company's products in the United States and France. His efforts to expand the brand abroad led Missoni to be dubbed the company's "ambassador."

Vittorio Missoni has been described as an active sportsman and lover of the outdoors. He and his wife and their friends from northern Italy were scheduled to fly back from Caracas to Italy on Friday after spending the Christmas and New Year's holidays in the islands.

The plane disappeared shortly after takeoff on a flight of about 95 miles (150 kilometers) from the islands to the mainland.

Other small planes have gone down or vanished on the same route in recent years. On Jan. 4, 2008, a plane returning to the Venezuelan mainland from Los Roques disappeared with 14 people aboard, including eight Italians. The body of the plane's Venezuelan co-pilot later washed ashore, but despite a search lasting weeks no other victims or the wreckage were found.

In 2009, a small plane returning from Los Roques with nine people aboard plunged into the Caribbean Sea, but all survived.

____

Associated Press writer Frances D'Emilio contributed reporting from Rome. Ian James reported in Caracas.

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The New Old Age: Murray Span, 1922-2012

One consequence of our elders’ extended lifespans is that we half expect them to keep chugging along forever. My father, a busy yoga practitioner and blackjack player, celebrated his 90th birthday in September in reasonably good health.

So when I had the sad task of letting people know that Murray Span died on Dec. 8, after just a few days’ illness, the primary response was disbelief. “No! I just talked to him Tuesday! He was fine!”

And he was. We’d gone out for lunch on Saturday, our usual routine, and he demolished a whole stack of blueberry pancakes.

But on Wednesday, he called to say he had bad abdominal pain and had hardly slept. The nurses at his facility were on the case; his geriatrician prescribed a clear liquid diet.

Like many in his generation, my dad tended towards stoicism. When he said, the following morning, “the pain is terrible,” that meant agony. I drove over.

His doctor shared our preference for conservative treatment. For patients at advanced ages, hospitals and emergency rooms can become perilous places. My dad had come through a July heart attack in good shape, but he had also signed a do-not-resuscitate order. He saw evidence all around him that eventually the body fails and life can become a torturous series of health crises and hospitalizations from which one never truly rebounds.

So over the next two days we tried to relieve his pain at home. He had abdominal x-rays that showed some kind of obstruction. He tried laxatives and enemas and Tylenol, to no effect. He couldn’t sleep.

On Friday, we agreed to go to the emergency room for a CT scan. Maybe, I thought, there’s a simple fix, even for a 90-year-old with diabetes and heart disease. But I carried his advance directives in my bag, because you never know.

When it is someone else’s narrative, it’s easier to see where things go off the rails, where a loving family authorizes procedures whose risks outweigh their benefits.

But when it’s your father groaning on the gurney, the conveyor belt of contemporary medicine can sweep you along, one incremental decision at a time.

All I wanted was for him to stop hurting, so it seemed reasonable to permit an IV for hydration and pain relief and a thin oxygen tube tucked beneath his nose.

Then, after Dad drank the first of two big containers of contrast liquid needed for his scan, his breathing grew phlegmy and labored. His geriatrician arrived and urged the insertion of a nasogastric tube to suck out all the liquid Dad had just downed.

His blood oxygen levels dropped, so there were soon two doctors and two nurses suctioning his throat until he gagged and fastening an oxygen mask over his nose and mouth.

At one point, I looked at my poor father, still in pain despite all the apparatus, and thought, “This is what suffering looks like.” I despaired, convinced I had failed in my most basic responsibility.

“I’m just so tired,” Dad told me, more than once. “There are too many things going wrong.”

Let me abridge this long story. The scan showed evidence of a perforation of some sort, among other abnormalities. A chest X-ray indicated pneumonia in both lungs. I spoke with Dad’s doctor, with the E.R. doc, with a friend who is a prominent geriatrician.

These are always profound decisions, and I’m sure that, given the number of unknowns, other people might have made other choices. Fortunately, I didn’t have to decide; I could ask my still-lucid father.

I leaned close to his good ear, the one with the hearing aid, and told him about the pneumonia, about the second CT scan the radiologist wanted, about antibiotics. “Or, we can stop all this and go home and call hospice,” I said.

He had seen my daughter earlier that day (and asked her about the hockey strike), and my sister and her son were en route. The important hands had been clasped, or soon would be.

He knew what hospice meant; its nurses and aides helped us care for my mother as she died. “Call hospice,” he said. We tiffed a bit about whether to have hospice care in his apartment or mine. I told his doctors we wanted comfort care only.

As in a film run backwards, the tubes came out, the oxygen mask came off. Then we settled in for a night in a hospital room while I called hospices — and a handyman to move the furniture out of my dining room, so I could install his hospital bed there.

In between, I assured my father that I was there, that we were taking care of him, that he didn’t have to worry. For the first few hours after the morphine began, finally seeming to ease his pain, he could respond, “OK.” Then, he couldn’t.

The next morning, as I awaited the hospital case manager to arrange the hospice transfer, my father stopped breathing.

We held his funeral at the South Jersey synagogue where he’d had his belated bar mitzvah at age 88, and buried him next to my mother in a small Jewish cemetery in the countryside. I’d written a fair amount about him here, so I thought readers might want to know.

We weren’t ready, if anyone ever really is, but in our sorrow, my sister and I recite this mantra: 90 good years, four bad days. That’s a ratio any of us might choose.

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Paula Span is the author of “When the Time Comes: Families With Aging Parents Share Their Struggles and Solutions.”

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Vast cache of Kaiser patient details was kept in private home

Federal and state officials are investigating whether healthcare giant Kaiser Permanente violated patient privacy in its work with an Indio couple who stored nearly 300,000 confidential hospital records for the company.

The California Department of Public Health has already determined that Kaiser "failed to safeguard all patients' medical records" at one Southern California hospital by giving files to Stephan and Liza Dean for about seven months without a contract. The couple's document storage firm kept those patient records at a warehouse in Indio that they shared with another man's party rental business and his Ford Mustang until 2010.

Until this week, the Deans also had emails from Kaiser and other files listing thousands of patients' names, Social Security numbers, dates of birth and treatment information stored on their home computers.

The state agency said it was awaiting more information from Kaiser on its "plan of correction" before considering any penalties.

Officials at the U.S. Department of Health and Human Services began looking into Kaiser's conduct last year after receiving a complaint from the Deans about the healthcare provider's handling of patient data, letters from the agency show. Kaiser said it hadn't been contacted by federal regulators, and a Health and Human Services spokesman declined to comment.

Kaiser said it remained confident that this patient information was never disclosed or accessed inappropriately. It said that some employees were disciplined because company policies were not followed and that it had informed regulators of the steps it had taken to ensure this type of incident didn't happen again.

"Kaiser Permanente is committed to protecting the medical and personal privacy of its patients," spokesman John Nelson said. "In retrospect, we certainly wish we'd never done business with Mr. Dean."

Even with tougher government oversight of medical privacy in recent years, this case underscores how confidential patient information remains vulnerable in the hands of big healthcare institutions and legions of outside contractors.

"Kaiser has shown extraordinary recklessness in this situation," said Beth Givens, director of the Privacy Rights Clearinghouse in San Diego. "Healthcare companies have to make sure their contractors adhere to ironclad security practices."

Federal and state laws impose strict standards on anyone dealing with patient information. The privacy rule of the federal Health Insurance Portability and Accountability Act, known as HIPAA, bans the unauthorized disclosure of individuals' medical records and requires healthcare providers and vendors, such as billing and storage companies, to protect the information.

Despite those rules, personal medical information of 21 million people nationwide has been improperly exposed since 2009, according to federal data. Last year, Blue Cross Blue Shield of Tennessee agreed to pay $1.5 million to resolve allegations it violated federal law after 57 computer hard drives with patient information were stolen from an outside facility.

In October, Kaiser sued the Deans in Riverside County Superior Court, accusing them of violating their contract by not returning all of its patient information two years ago when Kaiser picked up the paper records.

In court filings, Kaiser said the Deans put patient data at risk by leaving two computer hard drives in their garage with the door open. In response, Stephan Dean moved them to a spare room. On a recent day they sat next to a red recliner where Ziggy, the family's black-and-white cat, curled up for a nap. Dean said those hard drives contained spreadsheets on thousands of Kaiser patients, prepared at the company's request.

At one point, Dean told Kaiser he was planning to contact patients about the whereabouts of their medical information because he felt Kaiser hadn't taken proper precautions. The company sought a temporary restraining order against Dean, barring him from disclosing any confidential information. A Superior Court judge granted Kaiser's request until Thursday, when another hearing is scheduled.

Dean, 47, got his foot in the door at Kaiser from his previous work labeling paper folders for courthouses, hospitals and doctors.

But the demand for folders was slipping as hospitals and doctors used computers more. Kaiser was at the forefront of this as it invested billions of dollars in its HealthConnect system, which it bills as the largest private-sector electronic health record in the world. Kaiser, with more than 9 million customers, is the nation's largest nonprofit insurer and hospital system.

Dean said his small business, Sure File Filing Systems, got a big break when Kaiser acquired the Moreno Valley Community Hospital in 2008. The company needed to organize and clear out thousands of old patient files and it gave the job to the Deans, Kaiser records show.

In August 2008, the Deans started packing up thousands of files from Moreno Valley and moving them to the warehouse in Indio.

Hospital clerks routinely messaged Dean asking him to pull records on specific patients, emails sent by Kaiser to Sure File show. Dean said some Kaiser employees would put the patient's full name in the subject line of the email, and other messages listed the patient's Social Security number, date of birth, doctors' names and treatment dates. One message started, "Good Morning Sure File," and requested adoption records for a child.

Dean said Kaiser showed little concern for patient privacy in handling those requests. Only one out of more than 600 emails from Kaiser was password-protected with encryption, he said. Many medical providers use such technology so information isn't visible to others.

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California parks officials deliberately hid money, report says

Fear of embarrassment and budget cuts led California parks officials to intentionally conceal millions of dollars in a department account, according to an investigation conducted by the state attorney general's office.

The report, released Friday, is the most detailed official narrative yet regarding the root of the accounting scandal at the parks department.

The scandal broke last summer when it was revealed that the parks department had a hidden surplus of nearly $54 million even though it was threatening to close dozens of facilities.

About $20 million was found in an account where entrance fees and other revenues are deposited. Accounting discrepancies appeared to begin innocently more than a decade ago, leading to fluctuating reports on how much money was in the fund, investigators said.

But in 2002, when the problems were identified, parks officials made a "conscious and deliberate" decision not to reveal the money to officials at the Department of Finance, which plans the state budget.

Multiple high-ranking officials were involved, including the former chief deputy director, Michael Harris, who later lost his job over the scandal. However, the report said it remained unclear whether ousted director Ruth Coleman knew about the accounting problems. Coleman declined to be interviewed for the investigation.

Parks officials didn't report the money because they were concerned that their already reduced budget would be cut even further if the state's number-crunchers knew they had more money in a department account, the report said. Interviews conducted by investigators also showed that officials feared embarrassment if the accounting problems were revealed.

"Throughout this period of intentional non-disclosure, some parks employees consistently requested, without success, that their superiors address the issue," the report said. It wasn't until a new deputy director was installed at the parks department in January 2012 was the issue reported.

Richard Stapler, a spokesman for the California Natural Resources Agency, said officials are still determining whether the investigation will result in criminal charges.

John Laird, the resources secretary, said new policies and staff are in place to prevent similar problems in the future.

"It is now clear that this is a problem that could have been fixed by a simple correction years ago, instead of being unaddressed for so long that it turned into a significant blow to public trust in government," Laird, who oversees the parks department, said in a statement.

The rest of the $54 million was found in an account for off-road vehicle parks. Investigators said accounting discrepancies there appeared to be unintentional, and the result of various bookkeeping problems involving loans and tax changes.

For example, a 2010 modification to the gas tax mistakenly pumped millions of excess dollars into the off-road account, the report said. That problem has been fixed and the money has been reallocated, according to the Department of Finance.

The investigation from the attorney general's office is the third review of the parks department in recent weeks. One more report, from the state auditor, is expected to be released.

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