1028087--3/12/2010--AMERICAN_DENTAL_PARTNERS_INC

related topics
{regulation, government, change}
{financial, litigation, operation}
{system, service, information}
{investment, property, distribution}
{tax, income, asset}
{condition, economic, financial}
{acquisition, growth, future}
{interest, director, officer}
{capital, credit, financial}
Our business is highly dependent on the performance of the affiliated practices, which are predominantly independent third-parties that exercise sole decision-making authority with respect to all clinical matters. The restrictive covenants that we rely upon to protect, in part, the value of our investments in the affiliated practices may be difficult or costly to enforce. Our business model is dependent upon the enforceability and legality of the service agreements between us and the affiliated practices. A significant percentage of our net revenue results from a disproportionately small number of affiliated practices. The recent economic downturn has negatively affected consumer demand for dental care, which may negatively affect revenue and profitability. Our net revenue may be adversely affected by third-party payor cost containment efforts. Our net revenue at Arizona Tooth Doctor and Texas Tooth Doctor may be adversely affected by changes in state Medicaid programs. We and the affiliated practices are subject to extensive and complex laws and regulations. If we or the affiliated practices fail to comply with existing or new laws or regulations, we or they could suffer civil or criminal penalties. Sedation is used extensively by Arizona Tooth Doctor and Texas Tooth Doctor, and harm to a patient resulting from its use could have a material adverse effect on our business. New affiliations could be difficult to integrate, disrupt our business or impair our financial results. We may not realize the expected value of our goodwill and intangible assets. Our operating results may be adversely affected by professional liability claims against the affiliated practices. Interruptions in our information systems could limit our ability to operate our business. A catastrophic event may significantly limit our ability and that of the affiliated dental groups to conduct business as normal.

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