879181--3/12/2008--AMERICAN_HOMEPATIENT_INC

related topics
{regulation, government, change}
{competitive, industry, competition}
{personnel, key, retain}
{provision, law, control}
{stock, price, share}
{capital, credit, financial}
{product, liability, claim}
{regulation, change, law}
{tax, income, asset}
The Company s substantial leverage could adversely affect its ability to grow or to withstand adverse business conditions. Highland Capital Management, L.P. controls approximately 48% of the Company s common stock and holds a majority of the Company s $242.7 million secured debt, which may allow Highland to exert significant influence on certain aspects of our business. The Company is subject to extensive government regulation, and the Company s inability to comply with existing or future laws, regulations or standards could have a material adverse effect on the Company s operations, financial condition, business, or prospects. Because of reimbursement reductions, the Company must continue to find ways to grow revenues and reduce expenses in order to generate earnings and cash flow. The Company has substantial accounts receivable, and increased bad debt expense or delays in collecting accounts receivable could have a material adverse effect on the Company s cash flows and results of operations. New healthcare legislation or other changes in the administration or interpretation of government health care programs or initiatives may have a material adverse effect on the Company. The Company depends on retaining and obtaining profitable managed care contracts, and the Company s business may be materially adversely affected if it is unable to retain or obtain such managed care contracts. The Company s common stock trades on the over-the-counter bulletin board, which reduces the liquidity of an investment in the Company. Compliance with privacy regulations under HIPAA could result in significant costs to the Company and delays in its collection of accounts receivable. The Company is highly dependent upon its senior management The Company s historical financial results and reimbursement environment, among other factors, may limit the Company s ability to attract and retain qualified personnel, which in turn could adversely affect profitability. The market in which the Company operates is highly competitive, and if the Company is unable to compete successfully, its business will be materially adversely affected. The provision of healthcare services entails an inherent risk of liability, and the Company s insurance may not be sufficient to effectively protect the Company from all claims.

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