812191--3/14/2007--REHABCARE_GROUP

related topics

{regulation, government, change}

{personnel, key, retain}

{acquisition, growth, future}

{product, liability, claim}

{operation, natural, condition}

{customer, product, revenue}

{product, market, service}

{system, service, information}

{stock, price, share}

{financial, litigation, operation}

{cost, operation, labor}

{control, financial, internal}

Our operations may deteriorate if we are unable to continue to attract, develop and retain our operational personnel. Shortages of qualified therapists and other healthcare personnel could increase our operating costs and negatively impact our business. Fluctuations in census levels and patient visits may adversely affect the revenues and profitability of our businesses. If there are changes in the rates or methods of government reimbursements of our clients for the rehabilitation services managed by us, our program management services clients could attempt to renegotiate our contracts with them, which may reduce our revenues. If there are changes in the rate or methods of government reimbursement for services provided by our freestanding hospitals, the profitability of those hospitals may be adversely affected. We conduct business in a heavily regulated healthcare industry and changes in regulations or violations of regulations may result in increased costs or sanctions that reduce our revenue and profitability. If our LTACHs fail to maintain their certification as long-term acute care hospitals, our profitability may decline. We operate in a highly competitive and fragmented market and our success depends on our ability to demonstrate that we offer a more efficient solution to our customers rehabilitation program objectives. We may face difficulties integrating recent and future acquisitions into our operations, and our acquisitions may be unsuccessful, involve significant cash expenditures, or expose us to unforeseen liabilities. Competition may restrict our future growth by limiting our ability to make acquisitions at reasonable valuations. Our unconsolidated subsidiaries may continue to incur operating losses. Significant legal actions could subject us to substantial uninsured liabilities. Our success is dependent on retention of our key officers. We may have future capital needs and any future issuances of equity securities may result in dilution of the value of our common stock. We are dependent on the proper functioning and availability of our information systems. Natural disasters, including earthquakes, hurricanes, fires and floods, could severely damage or interrupt our systems and operations and result in a material adverse effect on our business, financial condition and results of operations.

Full 10-K form ▸

812191--3/14/2007--REHABCARE_GROUP_INC