803352--9/18/2006--CONTINUCARE

related topics

{acquisition, growth, future}

{regulation, government, change}

{stock, price, operating}

{personnel, key, retain}

{system, service, information}

{tax, income, asset}

{condition, economic, financial}

{cost, operation, labor}

{debt, indebtedness, cash}

{product, liability, claim}

{loss, insurance, financial}

{product, candidate, development}

{control, financial, internal}

{stock, price, share}

{cost, contract, operation}

{operation, natural, condition}

{loan, real, estate}

We compete with many health care providers for patients and HMO affiliations. We may not be able to successfully recruit or retain existing relationships with qualified physicians and medical professionals. Our business exposes us to the risk of medical malpractice lawsuits. Our revenues will be affected by the Medicare Risk Adjustment program. We presently operate only in Florida. Failure to achieve and maintain effective internal controls in accordance with Section 404 of the Sarbanes-Oxley Act could have a material adverse effect on our business and stock price. A significant portion of our voting power is concentrated. We are dependent on our executive officers and other key employees. We depend on the management information systems of our affiliated HMOs. We depend on our information processing systems. Volatility of our stock price could adversely affect you. Risks related to the acquisition of the MDHC Companies. If we are unable to complete the acquisition of the MDHC Companies, our business may be adversely affected. The acquisition of the MDHC Companies will result in dilution to our current shareholders. We must obtain several third party consents and government permits to complete the acquisition of the MDHC Companies. Substantial sales of our common stock could adversely affect its market price. We may not realize the anticipated benefits from the Acquisition. The indemnification obligations under the MDHC Agreement are limited. The Internal Revenue Service may disagree with the parties description of the federal income tax consequences. If we are unable to successfully integrate the MDHC Companies business operations into our business operations after the Acquisition, we may not realize the anticipated benefits from the Acquisition and our business could be adversely affected. If the combined company experiences losses following the closing of the acquisition, we could experience difficulty meeting our business plan and our stock price could be negatively affected. The debt we will assume in the Acquisition will increase our debt to equity ratio and expose us to greater risks. If we complete the acquisition of the MDHC Companies our substantial intangible assets will greatly increase. Our acquisitions could result in integration difficulties, unexpected expenses, diversion of management s attention and other Competition for acquisition targets and acquisition financing and other factors may impede our ability to acquire other businesses and may inhibit our growth. Risks related to our industry We are subject to government regulation. The health care industry is subject to continued scrutiny. Our insurance coverage may not be adequate, and rising insurance premiums could negatively affect our profitability. Deficit spending and economic downturns could negatively impact our results of operations. Many factors that increase health care costs are largely beyond our ability to control. Health care reform initiatives, particularly changes to the Medicare system, could adversely effect our operations. Medicare premiums have generally risen more slowly than the cost of providing health care services.

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803352--9/18/2006--CONTINUCARE_CORP