920148--2/26/2009--LABORATORY_CORP_OF_AMERICA

related topics

{regulation, government, change}

{cost, regulation, environmental}

{operation, international, foreign}

{operation, natural, condition}

{system, service, information}

{capital, credit, financial}

{customer, product, revenue}

{condition, economic, financial}

{product, candidate, development}

{personnel, key, retain}

{cost, operation, labor}

{competitive, industry, competition}

{financial, litigation, operation}

Risks Associated with the Company s Business Changes in federal, state, local and third-party payer regulations or policies (or in the interpretation of current regulations or policies), insurance regulation or approvals or changes in other laws, regulations or policies may adversely affect governmental and third-party coverage and reimbursement for clinical laboratory testing and may have a material effect upon the Company s business. The Company could face significant monetary damages and penalties and/or exclusion from the Medicare and Medicaid programs if we violate health care anti-fraud and abuse laws. The Company s business could be harmed from the loss or suspension of a license or imposition of a fine or penalties under, or future changes in, or interpretations of, the law or regulations of the Clinical Laboratory Improvement Act of 1967, and the Clinical Laboratory Improvement Amendments of 1988 or those of Medicare, Medicaid or other federal, state or local agencies. Failure to comply with environmental, health and safety laws and regulations, including the federal Occupational Safety and Health Administration Act and the Needlestick Safety and Prevention Act, could result in fines and penalties and loss of licensure, and have a material adverse effect upon the Company s business. Regulations requiring the use of standard transactions for health care services issued under HIPAA may negatively impact the Company s profitability and cash flows. Compliance with the HIPAA security regulations and privacy regulations may increase the Company s costs. Increased competition, including price competition, could have a material adverse impact on the Company s net revenues and profitability. Discontinuation or recalls of existing testing products or failure to develop, or acquire, licenses for new or improved testing technologies, or the Company s customers using new technologies to perform their own tests, could adversely affect the Company s business. Changes in payer mix, including an increase in capitated managed-cost health care or new national or networking managed care purchasing models, could have a material adverse impact on the Company s net revenues and profitability. A failure to obtain and retain new customers and alliance partners, a loss of existing customers or material contracts, or a reduction in tests ordered or specimens submitted by existing customers, could impact the Company s ability to successfully grow its business. A failure to integrate newly acquired businesses and the costs related to such integration could have a material adverse impact on the Company s net revenues and profitability. Adverse results in material litigation matters could have a material adverse effect upon the Company s business. An inability to attract and retain experienced and qualified personnel could adversely affect the Company s business. A significant increase in the Company s days sales outstanding levels could increase bad debt expense and have an adverse effect on the Company s business. Failure in the Company s information technology systems could significantly increase testing turn-around time or billing processes and otherwise disrupt the Company s operations. Operations may be disrupted and adversely impacted by the effects of natural disasters such as hurricanes and earthquakes, or acts of terrorism, or other criminal activities, or disease pandemics. Reimbursement for services may be adversely impacted due to the failure of the Company or covered health plans to satisfy HIPAA standard transaction and code set requirements, including NPI. A significant deterioration in the economy could negatively impact testing volumes, cash collections and the availability of credit. Changes in reimbursement by foreign governments and foreign currency exchange fluctuations could have an adverse impact on the Company s business.

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920148--2/26/2009--LABORATORY_CORP_OF_AMERICA_HOLDINGS