AGP » Topics » Failure of a new business would negatively impact our results of operations.

These excerpts taken from the AGP 10-K filed Feb 22, 2008.
Failure of a new business would negatively impact our results of operations.
 
Start-up costs associated with a new business can be substantial. For example, in order to obtain a certificate of authority and obtain a state contract in most jurisdictions, we must first establish a provider network, have systems


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in place and demonstrate our ability to be able to process claims. If we were unsuccessful in obtaining the necessary license, winning the bid to provide service or attracting members in numbers sufficient to cover our costs, the new business would fail. We also could be obligated by the state to continue to provide services for some period of time without sufficient revenue to cover our ongoing costs or recover start-up costs. The costs associated with starting up the business could have a significant impact on our results of operations. In addition, if the new business does not operate at underwritten levels, our profitability could be harmed.
 
Failure
of a new business would negatively impact our results of
operations.



 



Start-up
costs associated with a new business can be substantial. For
example, in order to obtain a certificate of authority and
obtain a state contract in most jurisdictions, we must first
establish a provider network, have systems





28





 






in place and demonstrate our ability to be able to process
claims. If we were unsuccessful in obtaining the necessary
license, winning the bid to provide service or attracting
members in numbers sufficient to cover our costs, the new
business would fail. We also could be obligated by the state to
continue to provide services for some period of time without
sufficient revenue to cover our ongoing costs or recover
start-up
costs. The costs associated with starting up the business could
have a significant impact on our results of operations. In
addition, if the new business does not operate at underwritten
levels, our profitability could be harmed.


 




This excerpt taken from the AGP 10-K filed Feb 27, 2007.
Failure of a new business would negatively impact our results of operations.
 
Start-up costs associated with a new business can be substantial. For example, in order to obtain a certificate of authority and obtain a state contract in most jurisdictions, we must first establish a provider network, have systems in place and demonstrate our ability to be able to process claims. If we were unsuccessful in obtaining the necessary license, winning the bid to provide service or attracting members in numbers sufficient to cover our costs, the new business would fail. We also could be obligated by the state to continue to provide services for some period of time without sufficient revenue to cover our ongoing costs or recover start-up costs. The costs associated with starting up the business could have a significant impact on our results of operations. In addition, if the new business does not operate at underwritten levels, our profitability could be harmed.
 
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