906337--4/15/2008--PROXYMED_INC_/FT

related topics

{regulation, government, change}

{product, market, service}

{system, service, information}

{stock, price, share}

{property, intellectual, protect}

{customer, product, revenue}

{financial, litigation, operation}

{acquisition, growth, future}

{cost, operation, labor}

Changes that reduce payer compensation for electronic claims may reduce our revenue and margins. As electronic transaction processing penetrates the healthcare industry more extensively, we will face increasing pressure to reduce our prices which may cause us to no longer be competitive as a result of potential declining margins. Consolidation in the healthcare industry may give our customers greater bargaining power and cause us to reduce our prices. Our business and future success may depend on our ability to cross-sell our products and services. We depend on electronic connections to insurance companies and other payers, and if we lose these electronic connections, our service offerings would be limited and less desirable to healthcare providers. We have important business relationships with other companies to market and sell some of our clinical and financial products and services. If these companies terminate their relationships with us, or are less successful in the future, we will need to add this emphasis internally, which may divert our efforts and resources from other projects. A significant amount of the revenues in our Transaction Services segment is from one customer. Loss of this relationship may adversely affect our profitability. The adoption of electronic processing of clinical transactions in the healthcare industry is proceeding slowly; thus, the future of our business could be uncertain and this may have an adverse impact on our operations. An error by us in the process of providing clinical connectivity or transmitting prescription and laboratory data could result in substantial injury to a patient, and our liability insurance may not be adequate in a catastrophic situation, adversely impacting our business or operations. Our businesses have many competitors. Our PPO accounts receivable are subject to adjustment. The NPPN Stock Purchase Agreement governing the sale of our NPPN business may expose us to contingent liabilities. Our Laboratory Communication Services Segment has a high customer concentration. RISKS RELATED TO OUR INDUSTRY Government regulation and new legislation may have a negative impact on our business and results of operations. We are dependent on the growth of the Internet and electronic healthcare information markets. RISKS RELATED TO OUR TECHNOLOGY Evolving industry standards and rapid technological changes could result in our products becoming obsolete or no longer in demand. We depend on uninterrupted computer access for our customers. Any prolonged interruptions in operations could cause customers to seek alternative providers of our services. Computer network systems like ours could suffer security and privacy breaches that could harm our customers and us. The protection of our intellectual property requires substantial resources. We may be subject to infringement claims. If our ability to expand our network infrastructure is constrained, we could lose customers, and that loss could adversely affect our operating results. RISKS RELATED TO OUR STOCK We may issue additional shares that could adversely affect the market price of our Common Stock. The trading price of our Common Stock may be volatile.

Full 10-K form ▸

906337--4/15/2008--PROXYMED_INC_/FT_LAUDERDALE/