776325--3/9/2010--RES_CARE_INC

related topics

{regulation, government, change}

{cost, operation, labor}

{cost, contract, operation}

{debt, indebtedness, cash}

{personnel, key, retain}

{capital, credit, financial}

{financial, litigation, operation}

{condition, economic, financial}

{loss, insurance, financial}

{competitive, industry, competition}

{tax, income, asset}

{stock, price, operating}

{operation, international, foreign}

Federal, state and local budgetary shortfalls or changes in reimbursement policies could adversely affect our revenues and profitability and collectability of receivables. Our revenues and operating profitability depend on our reimbursement rates. Our inability to maintain and renew our existing contracts and to obtain additional contracts would adversely affect our revenues. If the fair values of our reporting units decline, we may have to record an additional material non-cash charge to earnings from impairment of our goodwill. Our operations may subject us to substantial litigation. A recent unfavorable jury verdict could have a material adverse effect on our financial results. Adverse credit market conditions could affect our ability to finance our business. We face substantial competition in attracting and retaining experienced personnel, and we may be unable to grow our business if we cannot attract and retain qualified employees. We may not realize the anticipated benefit of any future acquisitions and we may experience difficulties in integrating these acquisitions. Our insurance coverage and self-insurance reserves may not cover future claims. Our industry is subject to substantial government regulation and if we fail to comply with those regulations, we could suffer penalties or be required to make significant changes to our operations. We are required to comply with laws governing the transmission of privacy of health information. We are required to comply with laws governing Medicaid services. Increases in regulatory oversight can result in higher operating costs. Media coverage critical of us or our industry may harm our results. Our facility and program expenses fluctuate. Our quarterly operating results may fluctuate significantly. If downsizing, privatization and consolidation in our industry does not continue, our business may not continue to grow. If we fail to establish and maintain appropriate relationships with officials of government agencies, we may not be able to successfully procure or retain government-sponsored contracts which could negatively impact our revenues. Events that harm our reputation with governmental agencies and advocacy groups could reduce our revenues and operating results. A loss of our status as a licensed service provider in any jurisdiction could result in the termination of existing services and our inability to market our services in that jurisdiction. Expenses incurred and fees earned under government contracts are subject to scrutiny. Our revenue growth has been related to increases in the number of individuals served in each of our operating segments. We depend upon the continued services of certain members of our senior management team, without whom our business operations would be significantly disrupted. Much of our revenue is derived from state and local government and government procedures can be complex. If we cannot maintain effective controls and procedures that govern our billing and collections processes, such as maintenance of required documentation to support the services rendered, then our business, results of operations, financial condition and ability to satisfy our obligations under our indebtedness could be adversely affected. We may not be able to generate sufficient cash flows to meet our debt service obligations. We have a significant amount of debt, which could adversely affect our business, financial condition and results of operations and could prevent us from fulfilling our obligations under the notes. We operate in a highly competitive industry, which can adversely affect our results. We are subject to a number of risks due to our growth in international operations. Labor changes could reduce our margins and profitability and adversely affect the quality of our care. If the Employee Free Choice Act is adopted, it would be easier for unions to win representation, which could increase our labor costs.

Full 10-K form ▸

776325--3/9/2010--RES_CARE_INC_/KY/