1357234--3/28/2007--MSC-Medical_Services_CO

related topics
{regulation, government, change}
{system, service, information}
{regulation, change, law}
{product, market, service}
{operation, natural, condition}
{personnel, key, retain}
{debt, indebtedness, cash}
{tax, income, asset}
{customer, product, revenue}
{acquisition, growth, future}
Risks Relating to Our Business Intense competition may erode our profit margins. We are subject to credit risk with respect to the products and services that we provide on behalf of our clients. Failure in our information technology systems could significantly disrupt our operations, which could reduce our client base or result in lost revenue. Our operating revenue and profitability could suffer upon our loss of one or more significant clients. If key employees leave MSC, our operating results may be adversely affected. We are dependent on vendors for efficient provision of services. With respect to certain of our product lines, our vendor network is highly concentrated. Failure to expand into additional product lines could impede our future growth and adversely affect our competitive position. Changes in prescription patterns may affect our financial results. Occurrence of natural disasters, including hurricanes, may damage our facilities and limit our ability to operate. Significant delays or service interruptions during the Company s planned location move during 2007 may limit our ability to operate. The Company s indebtedness may limit its ability to obtain additional financing in the future and may limit its flexibility to react to industry or economic conditions. Changes in the regulation of workers compensation may affect our revenue and income. Our compliance in certain states may be subject to challenge. Changes in state and federal regulations regarding pharmaceuticals could restrict our ability to conduct our Pharmaceuticals product line. Changes in state health care, licensure or insurance laws could affect our business. Federal and state laws that protect patient health information may increase our costs and limit our ability to collect and use that information. Certain activities of our business could be challenged under consumer protection or other laws. Tax legislation initiatives could adversely affect the Company s net earnings and tax liabilities.

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