1009575--2/29/2008--HLTH

related topics

{regulation, government, change}

{system, service, information}

{product, market, service}

{product, liability, claim}

{stock, price, operating}

{acquisition, growth, future}

{property, intellectual, protect}

{cost, regulation, environmental}

{tax, income, asset}

{capital, credit, financial}

{customer, product, revenue}

{personnel, key, retain}

{stock, price, share}

{operation, international, foreign}

{cost, contract, operation}

{financial, litigation, operation}

{control, financial, internal}

WebMD faces significant competition for its products and services Failure to maintain and enhance the WebMD brand could have a material adverse effect on WebMD s business WebMD s online businesses have a limited operating history WebMD s success depends, in part, on its attracting and retaining qualified executives and employees If WebMD is unable to provide healthcare content for its offline publications that attracts and retains users, its revenue will be reduced The timing of WebMD s advertising and sponsorship revenue may vary significantly from quarter to quarter Lengthy sales and implementation cycles for WebMD s private online portals make it difficult to forecast revenues from these applications and may have an adverse impact on that business WebMD s ability to provide comparative information on hospital cost and quality depends on its ability to obtain the required data on a timely basis and, if it is unable to do so, its private portal services would be less attractive to clients WebMD s ability to renew existing licenses with employers and health plans will depend, in part, on WebMD s ability to continue to increase usage of our private portal services by their employees and plan members WebMD may be unsuccessful in its efforts to increase advertising and sponsorship revenue from consumer products companies WebMD could be subject to breach of warranty or other claims by clients of our online portals if the software and systems we use to provide them contain errors or experience failures Any service interruption or failure in the systems that WebMD uses to provide online services could harm WebMD s business WebMD s online services are dependent on the development and maintenance of the Internet infrastructure Implementation of additions to or changes in hardware and software platforms used to deliver WebMD s online services may result in performance problems and may not provide the additional functionality that was expected If the systems WebMD uses to provide online portals experience security breaches or are otherwise perceived to be insecure, WebMD s business could suffer WebMD faces potential liability related to the privacy and security of personal information it collects from or on behalf of users of its services Failure to comply with regulations related to advertising and promotion may result in enforcement action and loss of sponsorship Failure to maintain its CME accreditation could adversely affect WebMD s ability to provide online CME offerings Government regulation and industry initiatives could adversely affect the volume of sponsored online CME programs implemented through WebMD s Web sites or require changes to how WebMD offers CME ViPS is heavily dependent on CMS contract programs as its primary source of revenue and, if ViPS relationship with CMS were harmed, ViPS financial results could be materially adversely affected ViPS depends on being retained as a subcontractor by other CMS contractors for a significant portion of its revenues and, if ViPS reputation or relationships with CMS or such contractors were harmed, ViPS financial results would be adversely affected CMS may modify, curtail or terminate contracts prior to their completion and, if ViPS does not replace them, its financial results may suffer Procurement rules and regulations applicable to CMS contracts may be costly to comply with and failure to comply may result in termination of those contracts or other penalties ViPS is subject to routine audits and cost adjustments by the U.S. government, which, if resolved unfavorably to ViPS, could adversely affect its profitability Changes in government regulations or practices could adversely affect ViPS financial results If subcontractors with which ViPS works fail to satisfy their obligations to ViPS or to the customers, ViPS reputation and financial results could be adversely affected If ViPS systems experience security breaches or are otherwise perceived to be insecure, its business could suffer Lengthy sales, installation and implementation cycles for some ViPS applications may result in unanticipated fluctuations in its revenues ViPS could be subject to breach of warranty, product liability or other claims if software or services it provides contain errors or do not meet contractual performance standards ViPS HealthPayer Solutions Group depends on Blue Cross Blue Shield Plans and the Blue Cross Blue Shield Association for a significant portion of its revenue and, if its reputation or relationship with the BCBS business community were harmed, that business would be adversely affected In order to attract and retain customers, ViPS HealthPayer Solutions Group must develop and implement new and updated software products ViPS faces significant competition for its services Porex s success depends upon demand for its products, which in some cases ultimately depends upon end-user demand for the products of its customers Porex faces significant competition for its products Porex s product offerings must meet changing customer requirements Potential new or enhanced Porex products may not achieve sufficient sales to be profitable or justify the cost of their development Porex may not be able to source the raw materials it needs or may have to pay more for those raw materials Disruptions in Porex s manufacturing operations could have a material adverse effect on its business and financial results Porex may not be able to keep third parties from using technology it has developed The nature of Porex s products exposes it to product liability claims that may not be adequately covered by indemnity agreements or insurance Porex s manufacturing of medical devices is subject to extensive regulation by the U.S. Food and Drug Administration and its failure to meet strict regulatory requirements could require it to pay fines, incur other costs or close facilities. Economic, political and other risks associated with Porex s international sales and geographically diverse operations could adversely affect Porex s operations and financial results Environmental regulation could adversely affect Porex s business Risks Related to Providing Products and Services to the Healthcare Industry Developments in the healthcare industry and its funding could adversely affect our businesses Government regulation of healthcare creates risks and challenges with respect to our compliance efforts and business strategies Risks Applicable to Our Entire Company and to Ownership of Our Securities The ongoing investigations by the United States Attorney for the District of South Carolina and the SEC could negatively impact our company and divert management attention from our business operations If certain transactions occur with respect to our capital stock, limitations may be imposed on our ability to utilize our net operating loss carryforwards and tax credits to reduce our income taxes Recent and pending management changes may disrupt our operations and our ability to recruit and retain other personnel Contractual relationships with governmental customers may impose special burdens and additional risks on us that are not generally found in contracts with other customers We may not be successful in protecting our intellectual property and proprietary rights Third parties may claim that we are infringing their intellectual property, and we could suffer significant litigation or licensing expenses or be prevented from selling products or services Acquisitions, business combinations and other transactions may be difficult to complete and, if completed, may have negative consequences for our business and our securityholders Our business will suffer if we fail to successfully integrate acquired businesses and technologies or to assess the risks in particular transactions We would incur significant additional non-cash interest expense upon the adoption of FASB Staff Position No. APB 14-a, Accounting for Convertible Debt Instruments that May be Settled in Cash upon Conversion (Including Partial Cash Settlement) We may not be able to raise additional funds when needed for our business or to exploit opportunities We depend on EBS to provide us with certain services required by us for the operation of our business Negative conditions in the market for certain investments may result in us incurring a loss on such investments and may reduce the consideration payable to HLTH stockholders in the WHC Merger The WHC Merger will result in a substantial increase in the number of shares of WHC Common Stock available for trading, which could depress the price of such stock and/or increase the volatility of the price of such stock, both before and after completion of the WHC Merger The WHC Merger is subject to closing conditions that, if not satisfied or waived, will result in the WHC Merger not being completed, which may cause the market price of HLTH Common Stock to decline

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1009575--2/29/2008--HLTH_CORP