731012--2/16/2010--HEALTHCARE_SERVICES_GROUP

related topics

{regulation, government, change}

{financial, litigation, operation}

{customer, product, revenue}

{loss, insurance, financial}

{personnel, key, retain}

{cost, contract, operation}

{regulation, change, law}

Although we expect our acquisition of Contract Environmental Services, Inc. will result in benefits to our Company, those benefits may not occur, or may be delayed, because of integration and other challenges associated with the acquisition. Our clients are concentrated in the health care industry which is currently undergoing considerable legislative proposals to reform it. We have clients located in many states which have had and may continue to experience significant budget deficits and such deficits may result in reduction of reimbursements to nursing homes. We have a Paid Loss Retrospective Insurance Plan for general liability and workers compensation insurance. We provide services in 47 states and are subject to numerous local taxing jurisdictions within those states. Our business and financial results could be adversely affected by unfavorable results of material litigation or governmental inquiries. We primarily provide our services pursuant to agreements which have a one year term, cancelable by either party upon 30 to 90 days notice after the initial 90-day service agreement period. We are dependent on the management experience of our key personnel.

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731012--2/16/2010--HEALTHCARE_SERVICES_GROUP_INC