FAQs

When and how was the company founded?

Prior to January 26, 2007, Conmed Healthcare Management, Inc. and its subsidiaries (the "Company") formerly known as Pace Health Management Systems, Inc. traded under the symbol "PCES", was classified as a public shell, had no ongoing operations, minimal operating expenses and no employees.

On January 26, 2007, the Company acquired Conmed, Inc. a provider of correctional healthcare services. Conmed, Inc. was formed as a corporation on June 10, 1987 in the State of Maryland for the purpose of providing healthcare services exclusively to county detention centers located in Maryland. As Conmed, Inc. developed, it accepted more contracts for additional services including mental health, pharmacy and out-of-facility healthcare expenses. In 2000, Conmed, Inc. served more than 50% of the county detention healthcare services market in Maryland. In 2003, Conmed, Inc. elected to seek contracts outside of Maryland.

As a result of the Acquisition, Conmed, Inc. is a wholly-owned subsidiary of the Company and the business of Conmed, Inc. is now our primary business. As of May 15, 2008, we were in contract with, and currently providing medical services in thirty counties in five states including: Kansas, Maryland, Oregon, Virginia and Washington.

On March 13, 2007, the Company changed its name to Conmed Healthcare Management, Inc.

What were the terms of the Company's acquisition with Conmed, Inc.?

On August 2, 2006, we entered into a Stock Purchase Agreement with Conmed, Inc., a Maryland corporation and all of the stockholders of Conmed, Inc., (the "Conmed, Inc. Stockholders"), pursuant to which we agreed to purchase all the issued and outstanding capital stock of Conmed, Inc. from the Conmed, Inc. Stockholders. We previously reported the execution of the Agreement in a Form 8-K filed on August 8, 2006, and its extension in a Form 8-K filed on January 17, 2007.

We paid to Conmed, Inc., a non-refundable cash deposit of $250,000 upon execution of the Agreement, which was released to the Conmed, Inc. Stockholders upon expiration of the original agreement on October 31, 2006. Thereafter, an amendment to the Agreement was executed on January 12, 2007 to extend the closing date to January 31, 2007. As a result of such extension, and upon execution of such amendment, we paid to Conmed, Inc. an additional non-refundable cash deposit of $250,000 (the "Additional Cash Deposit"), which was deducted from the $8,000,000 cash payment paid to the Conmed, Inc. Stockholders at the closing of the Acquisition.

On January 26, 2007, the Acquisition was completed and under the terms of the Agreement and Acquisition, we paid to the Conmed, Inc. Stockholders consideration consisting of: (i) $8,000,000 in cash, the Additional Cash Deposit (as defined above) and an adjustment of $30,602 representing an adjustment for shortfall in the minimum equity requirement of Conmed, Inc. and (ii) 8,000 shares of Pace's Series C Convertible Preferred Stock, which was subsequently converted into 800,000 shares of common stock effective March 14, 2007.

Where is the company headquartered?

The company headquarters are at:

7250 Parkway Drive
Suite 400
Hanover, Maryland 21076
410.567.5520

How many employees at the company?

As of December 31, 2009, we had approximately 454 full-time and 52 part-time employees and 357 per diem employees, and 59 position contractors.

Where are the Company's publicly traded securities listed?

The company's shares trade under the symbol CONM on the NYSE Amex

Does the company hold quarterly conference calls?

Yes

How many counties does the company currently serve?

As of April 1, 2010 the company serves county and municipal correctional facilities in thirty-eight counties in seven states, including Arizona, Kansas, Maryland, Oklahoma, Oregon, Virginia and Washington.

Who are the company's primary competitors?

We are aware of four major sources of competition:

1. National contracting companies that serve both the county and state prison systems. While we are aware of several national companies that provide healthcare services to county detention centers, it appears this is not their main focus. These companies, including Prison Health Services, Inc., Correctional Medical Services, Inc., Correct Care Solutions Inc., Wexford Health Sources, Inc., Naphcare, Inc. and Armor Correctional Health Services are primarily in the business of providing services to state prisons.

2. Local or regional companies focused on county detention centers. There are a few companies that provide healthcare services to county detention centers within confined regions, such as California Forensic Medical Group Inc. in California, and Primecare Medical, Inc. in Pennsylvania. These companies are privately held and can be characterized as small to medium size businesses when compared to the major national prison healthcare companies. There are several small local groups in markets which we are developing at this time.

3. Local hospitals. We have seen several incidences of local hospital systems providing healthcare services to the county detention centers. Such incidences arose out of the absence of other interested providers. The hospital costs for these counties are often extremely high and counties seeking cost savings may seek the services of a professional medical service contractor other than the local hospital.

4. Local physicians. In some cases, our competitor is a local solo physician or group of physicians. Such contractors typically provide only the on-site sick call services and may have limited expertise in the provision of full service correctional healthcare. Such physicians are often unable to obtain cost effective and appropriate liability insurance that will cover both their primary work, as well as their correctional healthcare services.

Who is the company's transfer agent?

Wells Fargo Bank, N.A.
Shareholder Services
P.O. Box 64854
South St. Paul, MN 55164-0854
800.468.9716

Who at the company can I talk to if I need additional information?

Investors may call:

Thomas W. Fry
Chief Financial Officer
7250Parkway Drive
Suite 400
Hanover, MD 21076
410.567.5520