Exhibit 15-2

EXTERNAL FACTORS AFFECTING
YOUR CENTER'S OPERATIONS

Type of Organization Organization Type of Impact
Insurers Medicaid Medicare
Purchasing alliances
Moving to managed care
Reimbursement restrictions
Capitation/bundling of services
Employers Employer coalitions Negotiating directly with providers
Restrict covered services
Government Entitlement programs
Regulatory programs
Funding and eligibility restrictions
Added administrative costs
(i.e. HIPAA*)
Added reporting burden
Competition Networks
Private Sector
Market share diminishing
Competition for staff/patients
Managed Care HMO
PPO
Funding restrictions
Gatekeeper
Limitation on services covered

*HIPAA = Health Insurance Portability and Accountability Act