LabCorp 2012 Annual Report Download - page 21

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LABORATORY CORPORATION OF AMERICA
Management’s Discussion and Analysis
of Financial Condition and Results of Operations (in millions)
Forward-Looking Statements
The Company has made in this report, and from time to time
may otherwise make in its public filings, press releases and
discussions by Company management, forward-looking
statements concerning the Company’s operations, performance
and financial condition, as well as its strategic objectives.
Some of these forward-looking statements can be identified
by the use of forward-looking words such as “believes,”
“expects,” “may,” “will,” “should,” “seeks,” “approximately,”
“intends,” “plans,” “estimates,” or “anticipates” or the
negative of those words or other comparable terminology.
Such forward-looking statements are subject to various risks
and uncertainties and the Company claims the protection
afforded by the safe harbor for forward-looking statements
contained in the Private Securities Litigation Reform Act
of 1995. Actual results could differ materially from those
currently anticipated due to a number of factors in addition
to those discussed elsewhere herein and in the Company’s
other public filings, press releases and discussions with
Company management, including:
1. changes in federal, state, local and third-party payer
regulations or policies or other future reforms in the
health care system (or in the interpretation of current
regulations), new insurance or payment systems, including
state or regional insurance cooperatives (Health Insurance
Exchanges), new public insurance programs or a single-
payer system, affecting governmental and third-party
coverage or reimbursement for clinical laboratory testing;
2. adverse results from investigations or audits of clinical
laboratories by the government, which may include
significant monetary damages, refunds and/or exclusion
from the Medicare and Medicaid programs;
3. 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, the False Claims Act or other
federal, state or local agencies;
4. failure to comply with the Federal Occupational Safety
and Health Administration requirements and the
Needlestick Safety and Prevention Act, which may
result in penalties and loss of licensure;
5. failure to comply with HIPAA, including changes to
federal and state privacy and security obligations and
changes to HIPAA, including those changes included
within HITECH and any subsequent amendments,
which could result in increased costs, denial of claims
and/or significant penalties;
6. failure to maintain the security of business information
or systems could damage the Company’s reputation,
cause it to incur substantial additional costs and to
become subject to litigation;
7. failure of the Company, third-party payers or physicians
to comply with the ICD-10-CM Code Set by the
compliance date of October 1, 2014, could negatively
impact the Company’s reimbursement, cash collections,
DSO and profitability;
8. increased competition, including competition from
companies that do not comply with existing laws or
regulations or otherwise disregard compliance
standards in the industry;
9. increased price competition, competitive bidding
for laboratory tests and/or changes or reductions to
fee schedules;
10. changes in payer mix, including an increase in capitated
reimbursement mechanisms or the impact of a shift to
consumer-driven health plans;
11. failure to obtain and retain new customers or a
r eduction in tests ordered or specimens submitted
by existing customers;
12. failure to retain or attract managed care business
as a result of changes in business models, including
new risk based or network approaches, or other
changes in strategy or business models by managed
care companies;
13. failure to effectively integrate and/or manage
newly acquired businesses and the cost related
to such integrations;
14. adverse results in litigation matters;