**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**WASHINGTON,      D.C. 20549**

**FORM      10-Q**

**QUARTERLY      REPORT UNDER SECTION 13 OR 15(d)**

**OF      THE SECURITIES EXCHANGE ACT OF 1934**

| For                the quarter ended: |   | Commission                File Number: |
|---------------------------------------|--------|----------------------------------------|
| March                31, 2008         |   | 0-27554                                |

**Conmed      Healthcare Management, Inc**
**.**

| Delaware                                                                                          |   | 42-1297992                                          |
|---------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------|
| (State                or other jurisdiction of incorporation                or organization) |   | (IRS                Employer Identification Number) |

| 7250                Parkway Dr., Suite 400Hanover,                MD 21076          |
|-------------------------------------------------------------------------------------|
| (Address                and zip code of principal executive                offices) |

| (410)                567-5520                                                         |
|---------------------------------------------------------------------------------------|
| (Issuer’s                telephone -number, including area                code) |

Indicate        by check mark whether the registrant is a shell company (as defined in Rule        12b-2 of the Exchange Act). 

|                                                     | Number                of Shares Outstanding |
|----------------------------------------------------------|---------------------------------------------|
| Class                                                    | May                14, 2008                 |
| Common                Stock, $0.0001 par value per share | 12,024,222                                  |

----

**CONMED      HEALTHCARE MANAGEMENT, INC.**

**TABLE      OF CONTENTS**

**PART      I.**
**FINANCIAL      INFORMATION**

|                                                                                                                                                                                                                                                         | **Page** |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------|
| ITEM                  1. FINANCIAL STATEMENTS (UNAUDITED)                                                                                                                                                                                                    |     |
|                                                                                                                                                                                                                                                         |     |
| Consolidated                  Balance Sheets                                                                                                                                                                                                                 |     |
| March                  31, 2008 and December 31, 2007                                                                                                                                                                                                        | 1        |
|                                                                                                                                                                                                                                                         |     |
| Consolidated                  Statements of Operations                                                                                                                                                                                                       |     |
| For                  the three months ended March 31, 2008, the 65-day period January                  26, 2007                  to March 31, 2007 and the 25-day period January 1, 2007 to January                  25,                  2007 (Predecessor) | 2        |
|                                                                                                                                                                                                                                                         |     |
| Consolidated                  Statements of Cash Flows                                                                                                                                                                                                       |     |
| For                  the three months ended March 31, 2008, the 65-day period January                  26, 2007                  to March 31, 2007 and the 25-day period January 1, 2007 to January                  25,                  2007 (Predecessor) | 3        |
|                                                                                                                                                                                                                                                         |     |
| Notes                  to Consolidated Financial Statements                                                                                                                                                                                                  | 5        |
|                                                                                                                                                                                                                                                         |     |
| ITEM                  2. MANAGEMENT’S DISCUSSION AND ANALYSIS OR PLAN OF                  OPERATION                                                                                                                                                    | 13       |
|                                                                                                                                                                                                                                                         |     |
| ITEM                  3. QUANTITATIVE AND QUALITATIVE DISCLOSURES                                                                                                                                                                                            | 18       |
|                                                                                                                                                                                                                                                         |     |
| ITEM                  4(T). CONTROLS AND PROCEDURES                                                                                                                                                                                                          | 18       |

**PART      II. OTHER      INFORMATION**

| ITEM                  1. LEGAL PROCEEDINGS                                   | 19     |
|------------------------------------------------------------------------------|--------|
|                                                                         |   |
| ITEM                  2. UNREGISTERED SALES OF EQUITY SECURITIES             | 19     |
|                                                                         |   |
| ITEM                  3. DEFAULT UPON SENIOR SECURITIES                      | 19     |
|                                                                         |   |
| ITEM                  4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS | 19     |
|                                                                         |   |
| ITEM                  5. OTHER INFORMATION                                   | 19     |
|                                                                         |   |
| ITEM                  6. EXHIBITS                                            | 19     |
|                                                                         |   |
| SIGNATURES                                                                   | 20     |

----

**PART      1. FINANCIAL INFORMATION**

**ITEM      1. FINANCIAL      STATEMENTS**

**CONMED      HEALTHCARE MANAGEMENT, INC.**

**CONSOLIDATED      BALANCE SHEETS**

|                                                                                                                                                       |   |   | **SUCCESSOR****March                31, 2008 (unaudited)** |   |   | **SUCCESSOR****December                31,****2007** |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|------------------------------------------------------------|--------|--------|------------------------------------------------------|--------|
| **ASSETS**                                                                                                                                                 |   |   |                                                       |   |   |                                                 |   |
| CURRENT                ASSETS                                                                                                                              |   |   |                                                       |   |   |                                                 |   |
| Cash                and cash equivalents                                                                                                                   |   | $      | 7,142,788                                                  |   | $      | 7,136,720                                            |   |
| Accounts                receivable                                                                                                                         |   |   | 2,308,950                                                  |   |   | 1,622,424                                            |   |
| Prepaid                expenses                                                                                                                            |   |   | 63,770                                                     |   |   | 214,834                                              |   |
| **Total                current assets**                                                                                                                    |   |   | 9,515,508                                                  |   |   | 8,973,978                                            |   |
| PROPERTY                AND EQUIPMENT, NET                                                                                                                 |   |   | 385,666                                                    |   |   | 212,815                                              |   |
| DEFERRED                TAXES                                                                                                                              |   |   | 90,000                                                     |   |   | 90,000                                               |   |
| OTHER                ASSETS                                                                                                                                |   |   |                                                       |   |   |                                                 |   |
| Service                contracts acquired, net                                                                                                             |   |   | 2,527,000                                                  |   |   | 2,699,000                                            |   |
| Non-compete                agreements, net                                                                                                                 |   |   | 797,000                                                    |   |   | 749,000                                              |   |
| Goodwill                                                                                                                                                   |   |   | 5,068,336                                                  |   |   | 4,852,338                                            |   |
| Deposits                                                                                                                                                   |   |   | 13,698                                                     |   |   | 58,698                                               |   |
| **Total                other assets**                                                                                                                      |   |   | 8,496,034                                                  |   |   | 8,359,036                                            |   |
|                                                                                                                                                       |   | $      | 18,397,208                                                 |   | $      | 17,635,829                                           |   |
|                                                                                                                                                       |   |   |                                                       |   |   |                                                 |   |
| **LIABILITIES                AND SHAREHOLDERS’ EQUITY**                                                                                              |   |   |                                                       |   |   |                                                 |   |
| CURRENT                LIABILITIES                                                                                                                         |   |   |                                                       |   |   |                                                 |   |
| Accounts                payable                                                                                                                            |   | $      | 1,097,335                                                  |   | $      | 837,144                                              |   |
| Accrued                expenses                                                                                                                            |   |   | 2,329,859                                                  |   |   | 1,563,020                                            |   |
| Taxes                payable                                                                                                                               |   |   | 5,000                                                      |   |   | 5,000                                                |   |
| Deferred                revenue                                                                                                                            |   |   | 189,037                                                    |   |   | 353,075                                              |   |
| Notes                payable, current portion                                                                                                              |   |   | 88,952                                                     |   |   | 7,798                                                |   |
| **Total                current liabilities**                                                                                                               |   |   | 3,710,183                                                  |   |   | 2,766,037                                            |   |
| NOTES                PAYABLE, LONG-TERM                                                                                                                    |   |   | 54,638                                                     |   |   | 5,418                                                |   |
| SHAREHOLDERS’                EQUITY                                                                                                                  |   |   |                                                       |   |   |                                                 |   |
| Preferred                stock no par value; authorized 5,000,000 shares; issued and outstanding                zero shares as of March 31, 2008           |   |   | --                                                         |   |   | --                                                   |   |
| Common                stock, $0.0001 par value, authorized 40,000,000 shares; issued and                outstanding 12,024,222 shares as of March 31, 2008 |   |   | 1,202                                                      |   |   | 1,194                                                |   |
| Additional                paid-in capital                                                                                                                  |   |   | 36,221,934                                                 |   |   | 35,901,874                                           |   |
| Retained                (deficit)                                                                                                                          |   |   | (21,590,749                                                | )      |   | (21,038,694                                          | )      |
| **Total                shareholders' equity**                                                                                                              |   |   | 14,632,387                                                 |   |   | 14,864,374                                           |   |
|                                                                                                                                                       |   | $      | 18,397,208                                                 |   | $      | 17,635,829                                           |   |
| *See                Notes to unaudited Financial Statements*                                                                                               |   |   |                                                       |   |   |                                                 |   |

----

**CONMED      HEALTHCARE MANAGEMENT, INC.**

**CONSOLIDATED      STATEMENTS OF OPERATIONS (UNAUDITED)**
** **

|                                                         |   |   | **SUCCESSOR****For                the Three****Months                Ended**** March                31, 2008**  |   |   | **SUCCESSOR****For                the Period****January                26,**** 2007                to March****31,                2007** |   |   | **PREDECESSOR****For                the Period****January                1, 2007****to                January 25,****2007** |   |
|--------------------------------------------------------------|--------|--------|---------------------------------------------------------------------------------------------------------------------------|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-----------------------------------------------------------------------------------------------------------------------------|--------|
|                                                         |   |   |                                                                                                                      |   |   |                                                                                                                                          |   |   |                                                                                                                        |   |
| **Service                contract revenue**                  |   | $      | 7,836,250                                                                                                                 |   | $      | 4,046,374                                                                                                                                     |   | $      | 1,504,565                                                                                                                   |   |
|                                                         |   |   |                                                                                                                      |   |   |                                                                                                                                          |   |   |                                                                                                                        |   |
| HEALTHCARE                EXPENSES:                          |   |   |                                                                                                                      |   |   |                                                                                                                                          |   |   |                                                                                                                        |   |
| Salaries,                wages and employee benefits         |   |   | 4,114,027                                                                                                                 |   |   | 1,902,426                                                                                                                                     |   |   | 842,575                                                                                                                     |   |
| Medical                expenses                              |   |   | 2,016,588                                                                                                                 |   |   | 1,174,537                                                                                                                                     |   |   | 439,206                                                                                                                     |   |
| Other                operating expenses                      |   |   | 233,436                                                                                                                   |   |   | 165,066                                                                                                                                       |   |   | 45,552                                                                                                                      |   |
| **Total                healthcare expenses**                 |   |   | 6,364,051                                                                                                                 |   |   | 3,242,029                                                                                                                                     |   |   | 1,327,333                                                                                                                   |   |
|                                                         |   |   |                                                                                                                      |   |   |                                                                                                                                          |   |   |                                                                                                                        |   |
| **Gross                profit**                              |   | $      | 1,472,199                                                                                                                 |   | $      | 804,345                                                                                                                                       |   | $      | 177,232                                                                                                                     |   |
|                                                         |   |   |                                                                                                                      |   |   |                                                                                                                                          |   |   |                                                                                                                        |   |
| Selling                and administrative expenses           |   |   | 1,589,012                                                                                                                 |   |   | 867,015                                                                                                                                       |   |   | 92,264                                                                                                                      |   |
| Depreciation                and amortization                 |   |   | 499,450                                                                                                                   |   |   | 499,243                                                                                                                                       |   |   | 1,698                                                                                                                       |   |
| **Total                operating expenses**                  |   |   | 2,088,462                                                                                                                 |   |   | 1,366,258                                                                                                                                     |   |   | 93,962                                                                                                                      |   |
|                                                         |   |   |                                                                                                                      |   |   |                                                                                                                                          |   |   |                                                                                                                        |   |
| **Operating                income (loss)**                   |   |   | (616,263                                                                                                                  | )      |   | (561,913                                                                                                                                      | )      |   | 83,270                                                                                                                      |   |
|                                                         |   |   |                                                                                                                      |   |   |                                                                                                                                          |   |   |                                                                                                                        |   |
| INTEREST                INCOME (EXPENSE)                     |   |   |                                                                                                                      |   |   |                                                                                                                                          |   |   |                                                                                                                        |   |
| Interest                income                               |   |   | 65,898                                                                                                                    |   |   | 59,750                                                                                                                                        |   |   | 287                                                                                                                         |   |
| Interest                (expense)                            |   |   | (1,689                                                                                                                    | )      |   | (178                                                                                                                                          | )      |   | (93                                                                                                                         | )      |
| **Total                interest income**                     |   |   | 64,209                                                                                                                    |   |   | 59,572                                                                                                                                        |   |   | 194                                                                                                                         |   |
|                                                         |   |   |                                                                                                                      |   |   |                                                                                                                                          |   |   |                                                                                                                        |   |
| **Income                (loss) before income taxes**         |   |   | (552,054                                                                                                                  | )      |   | (502,341                                                                                                                                      | )      |   | 83,464                                                                                                                      |   |
| Income                tax benefit                            |   |   | --                                                                                                                        |   |   | (123,000                                                                                                                                      | )      |   | --                                                                                                                          |   |
| **Net                income (loss)**                         |   | $      | (552,054                                                                                                                  | )      | $      | (379,341                                                                                                                                      | )      | $      | 83,464                                                                                                                      |   |
|                                                         |   |   |                                                                                                                      |   |   |                                                                                                                                          |   |   |                                                                                                                        |   |
| LOSS                PER COMMON SHARE                         |   |   |                                                                                                                      |   |   |                                                                                                                                          |   |   |                                                                                                                        |   |
| Basic                and diluted                             |   | $      | (0.05                                                                                                                     | )      | $      | (0.11                                                                                                                                         | )      |   |                                                                                                                        |   |
|                                                         |   |   |                                                                                                                      |   |   |                                                                                                                                          |   |   |                                                                                                                        |   |
| WEIGHTED-AVERAGE                SHARES OUTSTANDING           |   |   |                                                                                                                      |   |   |                                                                                                                                          |   |   |                                                                                                                        |   |
| Basic                and diluted                             |   |   | 11,989,473                                                                                                                |   |   | 3,439,757                                                                                                                                     |   |   |                                                                                                                        |   |
| *See                Notes to unaudited Financial Statements* |   |   |                                                                                                                      |   |   |                                                                                                                                          |   |   |                                                                                                                        |   |

----

**CONMED      HEALTH****CARE      MANAGEMENT, INC.**

****CONSOLIDATED      STATEMENTS OF CASH      FLOWS (UNAUDITED)**** ****

|                                                                                                           |   |   | **SUCCESSOR**** For                the Three****Months                Ended****March                31, 2008** |   |   | **SUCCESSOR**** For                the Period****January                26, 2007****to                March 31, 2007** |   |   | **PREDECESSOR**** For                the Period**** January                1, 2007 to January 25, 2007** |   |
|----------------------------------------------------------------------------------------------------------------|--------|--------|---------------------------------------------------------------------------------------------------------------------|--------|--------|-----------------------------------------------------------------------------------------------------------------------------|--------|--------|--------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                           |   |   |                                                                                                                |   |   |                                                                                                                        |   |   |                                                                                                               |   |
| CASH                FLOWS FROM OPERATING ACTIVITIES                                                            |   |   |                                                                                                                |   |   |                                                                                                                        |   |   |                                                                                                               |   |
| Net                income (loss)                                                                               |   | $      | (552,054                                                                                                            | )      | $      | (379,341                                                                                                                    | )      | $      | 83,464                                                                                                             |   |
| Adjustments                to reconcile net income to net cash provided by operating                activities |   |   |                                                                                                                |   |   |                                                                                                                        |   |   |                                                                                                               |   |
| Depreciation                                                                                                   |   |   | 13,450                                                                                                              |   |   | 5,243                                                                                                                       |   |   | 1,698                                                                                                              |   |
| Amortization                                                                                                   |   |   | 486,000                                                                                                             |   |   | 494,000                                                                                                                     |   |   | --                                                                                                                 |   |
| Stock-based                compensation                                                                        |   |   | 120,055                                                                                                             |   |   | 188,990                                                                                                                     |   |   | --                                                                                                                 |   |
| Deferred                income taxes                                                                           |   |   | --                                                                                                                  |   |   | (171,000                                                                                                                    | )      |   | --                                                                                                                 |   |
| Changes                in working capital components                                                           |   |   |                                                                                                                |   |   |                                                                                                                        |   |   |                                                                                                               |   |
| Decrease                (increase) in accounts receivable                                                      |   |   | (686,526                                                                                                            | )      |   | 29,360                                                                                                                      |   |   | 197,327                                                                                                            |   |
| (Increase)                in claims against escrow                                                             |   |   | --                                                                                                                  |   |   | (338,484                                                                                                                    | )      |   | --                                                                                                                 |   |
| Decrease                in prepaid expenses                                                                    |   |   | 151,064                                                                                                             |   |   | 284,498                                                                                                                     |   |   | 30,687                                                                                                             |   |
| Decrease                in deposits                                                                            |   |   | 45,000                                                                                                              |   |   | --                                                                                                                          |   |   | --                                                                                                                 |   |
| Increase                (decrease) in accounts payable                                                         |   |   | 260,191                                                                                                             |   |   | (267,138                                                                                                                    | )      |   | 258,562                                                                                                            |   |
| Increase                (decrease) in accrued expenses                                                         |   |   | 766,839                                                                                                             |   |   | 664,045                                                                                                                     |   |   | (469,320                                                                                                           | )      |
| Increase                in income taxes payable                                                                |   |   | --                                                                                                                  |   |   | 48,000                                                                                                                      |   |   | --                                                                                                                 |   |
| Increase                (decrease) in deferred revenue                                                         |   |   | (164,038                                                                                                            | )      |   | 112,714                                                                                                                     |   |   | (29,155                                                                                                            | )      |
| **Net                cash provided by operating activities**                                                   |   |   | 439,981                                                                                                             |   |   | 670,887                                                                                                                     |   |   | 73,263                                                                                                             |   |
|                                                                                                           |   |   |                                                                                                                |   |   |                                                                                                                        |   |   |                                                                                                               |   |
| CASH                FLOWS FROM INVESTING ACTIVITIES                                                            |   |   |                                                                                                                |   |   |                                                                                                                        |   |   |                                                                                                               |   |
| Purchase                of property and equipment                                                              |   |   | (186,301                                                                                                            | )      |   | (4,954                                                                                                                      | )      |   | --                                                                                                                 |   |
| Asset                Purchase from EMDC, P.C.                                                                  |   |   | (245,711                                                                                                            | )      |   | --                                                                                                                          |   |   | --                                                                                                                 |   |
| Acquisition                of Conmed, Inc., net of cash acquired                                               |   |   | --                                                                                                                  |   |   | (7,557,508                                                                                                                  | )      |   | --                                                                                                                 |   |
| **Net                cash used in investing activities**                                                       |   |   | (432,012                                                                                                            | )      |   | (7,562,462                                                                                                                  | )      |   | --                                                                                                                 |   |
|                                                                                                           |   |   |                                                                                                                |   |   |                                                                                                                        |   |   |                                                                                                               |   |
| CASH                FLOWS FROM FINANCING ACTIVITIES                                                            |   |   |                                                                                                                |   |   |                                                                                                                        |   |   |                                                                                                               |   |
| Payments                on loans                                                                               |   |   | (1,901                                                                                                              | )      |   | (1,197                                                                                                                      | )      |   | (594                                                                                                               | )      |
| Net                proceeds from Private Placement                                                             |   |   | --                                                                                                                  |   |   | 13,149,140                                                                                                                  |   |   | --                                                                                                                 |   |
| **Net                cash provided by (used in) financing activities**                                         |   |   | (1,901                                                                                                              | )      |   | 13,147,943                                                                                                                  |   |   | (594                                                                                                               | )      |
|                                                                                                           |   |   |                                                                                                                |   |   |                                                                                                                        |   |   |                                                                                                               |   |
| **Net                increase in cash and cash equivalents**                                                   |   |   | 6,068                                                                                                               |   |   | 6,256,368                                                                                                                   |   |   | 72,669                                                                                                             |   |
|                                                                                                           |   |   |                                                                                                                |   |   |                                                                                                                        |   |   |                                                                                                               |   |
| CASH                AND CASH EQUIVALENTS                                                                       |   |   |                                                                                                                |   |   |                                                                                                                        |   |   |                                                                                                               |   |
| Beginning                                                                                                      |   |   | 7,136,720                                                                                                           |   |   | 662,305                                                                                                                     |   |   | 122,269                                                                                                            |   |
| Ending                                                                                                         |   | $      | 7,142,788                                                                                                           |   | $      | 6,918,673                                                                                                                   |   | $      | 194,938                                                                                                            |   |

----

| NON-CASH                INVESTING AND FINANCING ACTIVITIES WERE AS FOLLOWS: |   |   |    |    |   |    |   |
|-----------------------------------------------------------------------------|--------|--------|---------|--------------|--------|--------------|--------|
| Escrow                payments on Acquisition in prior periods              |   | $      | --      |         | $      | 500,000      |   | $ | -- |   |
| Stock                (81,081 Shares) for Asset Purchase from EMDC, P.C.     |   |   | 150,000 |         |   | --           |   |   | -- |   |
| Promissory                Note payable to EMDC, P.C. for Asset Purchase     |   |   | 132,275 |         |   | --           |   |   | -- |   |
| Warrants                (80,000 Shares) for Asset Purchase from EMDC        |   |   | 50,013  |         |   | --           |   |   | -- |   |
| Acquisition                expenses paid in prior periods                   |   |   | --      |         |   | 239,935      |   |   | -- |   |
| Private                Placement expenses paid in prior periods             |   |   | --      |         |   | 148,651      |   |   | -- |   |
|                                                                        |   | $      | 332,288 |         | $      | 888,586      |   | $ | -- |   |
|                                                                        |   |   |    |         |   |         |   |   |   |   |
| SUPPLEMENTAL                DISCLOSURE OF CASH FLOW INFORMATION             |   |   |    |         |   |         |   |   |   |   |
| Cash                payments for interest                                   |   | $      | 1,689   |         | $      | 178          |   | $ | 93 |   |
|                                                                        |   |   |    |         |   |         |   |   |   |   |

*See      Notes to unaudited Financial Statements*

----

**CONMED      HEALTHCARE MANAGEMENT, INC. **

**NOTES      TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS**

**NOTE      1. Nature      of      Business**

*Nature      of Business*

*Reclassifications*
* *

** NOTE      2. Significant      Accounting Policies**

----

*Accounting      Estimates and Assumption*

*Acquisition*

*Business      Combinations*

| **Asset**                                 |   |   | **Fair                Value**  |   |
|-------------------------------------------|--------|--------|-------------------------------------|--------|
| Service                contracts acquired |   | $      | 4,500,000                           |   |
| Non-compete                agreements     |   |   | 1,000,000                           |   |
| Goodwill                                  |   |   | 4,852,338                           |   |
| **Total**                                 |   | $      | 10,352,338                          |   |

*Asset      Purchase*

*Business      Combinations*

|  **Asset**                           |   |   | **Fair                Value**  |   |
|-------------------------------------------|--------|--------|-------------------------------------|--------|
| Service                contracts acquired |   | $      | 242,000                             |   |
| Non-compete                agreements     |   |   | 120,000                             |   |
| Goodwill                                  |   |   | 215,998                             |   |
| **Total**                                 |   | $      | 577,998                             |   |

*Service      Contracts Acquired*

----

| **For                the Twelve Months ended March 31,** |   |   | **Amortization**  |   |
|----------------------------------------------------------|--------|--------|------------------------|--------|
| 2009                                                     |   |   | 1,536,000              |   |
| 2010                                                     |   |   | 703,000                |   |
| 2011                                                     |   |   | 230,000                |   |
| 2012                                                     |   |   | 58,000                 |   |
|                                                     |   | $      | 2,527,000              |   |

*Non-Compete      Agreements*

| **For                the Twelve Months ended March 31,** |   |   | **Amortization**  |   |
|----------------------------------------------------------|--------|--------|------------------------|--------|
| 2009                                                     |   | $      | 329,000                |   |
| 2010                                                     |   |   | 322,000                |   |
| 2011                                                     |   |   | 146,000                |   |
| 2012                                                     |   |   | --                     |   |
|                                                     |   | $      | 797,000                |   |

*Goodwill: *

*Goodwill      and Other Intangible Assets*

----

*Cash      and Cash Equivalents*

*Fair      Value of Financial Instruments*

|  | · | Level                1 - Quoted prices in active markets for identical assets or                liabilities. |
|--|--------|--------------------------------------------------------------------------------------------------------------|

|  | · | Level                2 - Inputs other than Level 1 that are observable, either directly                or                indirectly, such as quoted prices for similar assets or liabilities;                quoted prices in markets that are not active; or other inputs that                are                observable or can be corroborated by observable market data for                substantially the full term of the assets or                liabilities. |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Level                3 - Unobservable inputs that are supported by little or no market                activity                and that are significant to the fair value of the assets or                liabilities. |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

*Principles      of Consolidation:*

*Revenue      Recognition*

----

*Property      and Equipment*

*Accrued      Medical Claims Liability*

*Stock      Compensation*

*Shared-Based      Payments *

*Income      Taxes*

*Basic      and Diluted Loss Per Share*

*Earnings      per Share*

----

*New        Accounting Pronouncements*

*Business      Combinations*

*Noncontrolling      Interests in Consolidated Financial Statements*

*Presentation      of share and Per Share Information*

**NOTE      3**
**.      **
**Common      Stock Warrants and Options **

*Common      Stock Warrants *

----

*Common      Stock Options *

**NOTE      4. Accrued      Expenses**

|                                                  |   |   | **SUCCESSOR****March                31, 2008** |   |   | **SUCCESSOR****March                31, 2007** |   |
|-------------------------------------------------------|--------|--------|------------------------------------------------|--------|--------|------------------------------------------------|--------|
| Accrued                salaries and employee benefits |   | $      | 1,532,677                                      |   | $      | 814,398                                        |   |
| Accrued                medical claims liability       |   |   | 624,702                                        |   |   | 200,759                                        |   |
| Other                                                 |   |   | 172,480                                        |   |   | 29,823                                         |   |
| **Total                accrued expenses**             |   | $      | 2,329,859                                      |   | $      | 1,044,980                                      |   |

**NOTE      5.       ****Earnings      Per Share**

|                                                 |   |   | **SUCCESSOR****For                  the Three****Months                  Ended**** March                  31, 2008** |   |   | **SUCCESSOR****For                  the Period****January                  26, 2007**** to                  March 31, 2007** |   |   | **PREDECESSOR****For                  the Period****January                  1, 2007 to January 25, 2007** |   |
|------------------------------------------------------|--------|--------|---------------------------------------------------------------------------------------------------------------------------|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------|--------|--------|------------------------------------------------------------------------------------------------------------|--------|
| Net                  income (loss)                   |   | $      | (552,054                                                                                                                  | )      | $      | (379,341                                                                                                                          | )      | $      | 83,464                                                                                                     |   |
| Weighted                  average shares outstanding |   |   | 11,989,473                                                                                                                |   |   | 3,439,757                                                                                                                         |   |   | --                                                                                                         |   |
| Income                  (loss) per common share      |   | $      | (0.05                                                                                                                     | )      | $      | (0.11                                                                                                                             | )      |   |                                                                                                       |   |
|                                                 |   |   |                                                                                                                      |   |   |                                                                                                                              |   |   |                                                                                                       |   |

----

**NOTE      6. Major      Customers and Commitments **

|                           |   |   | **SUCCESSOR**                                                             |   |   | **SUCCESSOR**                                                                           |   |   | **PREDECESSOR**                                                                    |   |
|--------------------------------|--------|--------|--------------------------------------------------------------------------------|--------|--------|----------------------------------------------------------------------------------------------|--------|--------|-----------------------------------------------------------------------------------------|--------|
|                           |   |   | **For                the Three Months ended****March                31, 2008** |   |   | **For                the Period January 26, 2007 to**** March                31, 2007** |   |   | **For                the Period January 1, 2007 to****January                25, 2007** |   |
|                           |   |   | **Revenue**                                                               |   |   | **Accounts****Receivable**                                                                   |   |   | **Revenue**                                                                        |   |   | **Accounts****Receivable** |   |   | **Revenue**  |   |   | **Accounts****Receivable** |   |
| Company                A  |   | $      | 1,433,000                                                                      |   | $      | 1,500                                                                                        |   | $      | 1,018,000                                                                               |   | $ | 1,700 |   | $ | 374,000 |   | $ | 26,000 |   |
| Company                B       |   |   | 1,038,000                                                                      |   |   | 1,038,000                                                                                    |   |   | 629,000                                                                                 |   |   | 282,000 |   |   | 240,000 |   |   | -- |   |
| Company                C       |   |   | 719,000                                                                        |   |   | 240,000                                                                                      |   |   | --                                                                                      |   |   | -- |   |   | -- |   |   | -- |   |
| Company                D       |   |   | 651,000                                                                        |   |   | 217,000                                                                                      |   |   | 279,000                                                                                 |   |   | 127,000 |   |   | 103,000 |   |   | 127,000 |   |
| Company                E       |   |   | 504,000                                                                        |   |   | --                                                                                           |   |   | 364,000                                                                                 |   |   | 169,000 |   |   | 135,000 |   |   | 173,000 |   |
| Company                F       |   |   | 411,000                                                                        |   |   | 297,000                                                                                      |   |   | --                                                                                      |   |   | -- |   |   | -- |   |   | -- |   |
| Company                G       |   |   | 395,000                                                                        |   |   | --                                                                                           |   |   | 275,000                                                                                 |   |   | -- |   |   | 101,000 |   |   | -- |   |

**NOTE      7.       ****Income      Tax Matters**

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**ITEM      2. MANAGEMENT’S      DISCUSSION AND ANALYSIS OR PLAN OF OPERATION**

*Information      included in this section contains forward-looking statements regarding the      business, operations and financial condition of both the Company and Conmed,      Inc. within the meaning of Section 27A of the Securities Act of 1933, as amended      and Section 21E of the Securities Exchange Act of 1934, as amended (the      "Exchange Act"). This information may involve known and unknown risks,      uncertainties and other factors which may cause the Company’s actual results,      performance or achievements to be materially different from our future results,      performance or achievements expressed or implied by any forward-looking      statements. Forward-looking statements, which involve assumptions and describe      the Company’s future plans, strategies and expectations, are generally      identifiable by use of the words "may," "will," "should," "expect,"      "anticipate," "estimate," "believe," "intend," “plan,” “potential” or "project"      or the negative of these words or other variations on these words or comparable      terminology. These forward-looking statements are based on assumptions that      may      be incorrect, and there can be no assurance that these projections included      in      these forward-looking statements will come to pass. The Company’s actual results      could differ materially from those expressed or implied by the forward-looking      statements as a result of various factors. The Company cautions you not to      place      undue reliance on these forward-looking statements. Such forward-looking      statements relate only to events as of the date on which the statements are      made. The Company undertakes no obligation to update any forward-looking      statements, whether as a result of new information, future events or otherwise,      even if experience or future changes make it clear that any projected results      or      events expressed or implied therein will not be realized. You are advised,      however, to consult any further disclosures the Company makes in future public      statements and press releases.*

**General**

**Critical      Accounting Policies**

**Recently      adopted accounting standards**

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|  | · | Level                1 - Quoted prices in active markets for identical assets or                liabilities. |
|--|--------|--------------------------------------------------------------------------------------------------------------|

|  | · | Level                2 - Inputs other than Level 1 that are observable, either directly                or                indirectly, such as quoted prices for similar assets or liabilities;                quoted prices in markets that are not active; or other inputs that                are                observable or can be corroborated by observable market data for                substantially the full term of the assets or                liabilities. |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Level                3 - Unobservable inputs that are supported by little or no market                activity                and that are significant to the fair value of the assets or                liabilities. |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**New      Accounting Pronouncements**

*Business      Combinations*

*Noncontrolling      Interests in Consolidated Financial Statements*

**Presentation      of share and per share information**

----

**Results      of Operations**

*Three-Months      Ended March 31, 2008 compared March 31, 2007*

|                                                          |   |   | **Three                Months Ended**** March                31, 2008** |   |   | **Three                Months Ended****March                31, 2007** |   |
|---------------------------------------------------------------|--------|--------|------------------------------------------------------------------------------|--------|--------|------------------------------------------------------------------------|--------|
|                                                          |   |   | **Amount**                                                                   |   |   | **%                of****Revenue**                                     |   |   | **PROFORMA** **Amount** |   |   | **%                of****Revenue** |   |
| Service                contract revenue                       |   | $      | 7,836,250                                                                    |   |   | 100.0                                                                  | %      | $ | 5,550,939 |   |   | 100.0 | % |
|                                                          |   |   |                                                                         |   |   |                                                                   |   |   |   |   |   |   |   |
| HEALTHCARE                EXPENSES:                           |   |   |                                                                         |   |   |                                                                   |   |   |   |   |   |   |   |
| Salaries,                wages and employee benefits          |   |   | 4,114,027                                                                    |   |   | 52.5                                                                   | %      |   | 2,745,039 |   |   | 49.5 | % |
| Medical                expenses                               |   |   | 2,016,588                                                                    |   |   | 25.7                                                                   | %      |   | 1,573,744 |   |   | 28.4 | % |
| Other                operating expenses                       |   |   | 233,436                                                                      |   |   | 3.0                                                                    | %      |   | 210,617 |   |   | 3.8 | % |
| Total                healthcare expenses                      |   |   | 6,364,051                                                                    |   |   | 81.2                                                                   | %      |   | 4,529,400 |   |   | 81.6 | % |
|                                                          |   |   |                                                                         |   |   |                                                                   |   |   |   |   |   |   |   |
| Gross                profit                                   |   |   | 1,472,199                                                                    |   |   | 18.8                                                                   | %      |   | 1,021,539 |   |   | 18.4 | % |
|                                                          |   |   |                                                                         |   |   |                                                                   |   |   |   |   |   |   |   |
| OPERATING                EXPENSES:                            |   |   |                                                                         |   |   |                                                                   |   |   |   |   |   |   |   |
| Selling,                general & administrative expenses |   |   | 1,589,012                                                                    |   |   | 20.3                                                                   | %      |   | 974,914 |   |   | 17.6 | % |
| Depreciation                and amortization                  |   |   | 499,450                                                                      |   |   | 6.4                                                                    | %      |   | 676,941 |   |   | 12.2 | % |
| Total                operating expenses                       |   |   | 2,088,462                                                                    |   |   | 26.7                                                                   | %      |   | 1,651,855 |   |   | 29.8 | % |
|                                                          |   |   |                                                                         |   |   |                                                                   |   |   |   |   |   |   |   |
| Operating                loss                                 |   |   | (616,263                                                                     | )      |   | (7.9                                                                   | )%     |   | (630,316 | ) |   | (11.4 | )% |
|                                                          |   |   |                                                                         |   |   |                                                                   |   |   |   |   |   |   |   |
| Net                interest income and (expense)              |   |   | 64,209                                                                       |   |   | 0.8                                                                    | %      |   | 59,765 |   |   | 1.1 | % |
|                                                          |   |   |                                                                         |   |   |                                                                   |   |   |   |   |   |   |   |
| Loss                before income taxes                       |   |   | (552,054                                                                     | )      |   | (7.0                                                                   | )%     |   | (570,551 | ) |   | (10.3 | )% |
|                                                          |   |   |                                                                         |   |   |                                                                   |   |   |   |   |   |   |   |
| Income                tax expense                             |   |   | --                                                                           |   |   | 0.0                                                                    | %      |   | -- |   |   | 0.0 | % |
|                                                          |   |   |                                                                         |   |   |                                                                   |   |   |   |   |   |   |   |
| Net                (loss)                                     |   | $      | (552,054                                                                     | )      |   | (7.0                                                                   | )%     | $ | (570,551 | ) |   | (10.3 | ) |

*Revenues*

----

*Healthcare      Expenses *

*Salaries      and employee benefits*

*Medical      expenses*

*Other      operating expenses*

*Operating      Expenses*

*Selling,      general and administrative expenses*

*Depreciation      and amortization*

*Interest      income*

----

*Interest      expense*

*Income      tax expense*

**LIQUIDITY      AND CAPITAL RESOURCES**

*Cash      flow for the three-month period ended March 31, 2008.*

*Liquidity*

*Loans*

*Off      Balance Sheet Arrangements*

*Contractual      Obligations*

|                                              |   |   | **Total** |   |   | **Due                as of**** 3/31/09**  |   |   | **Due                as of****3/31/10****and****3/31/11** |   |   | **Due                as of****3/31/12**** and****3/31/13** |   |   | **Due****Thereafter** |   |
|---------------------------------------------------|--------|--------|-----------|--------|--------|-----------------------------------------------------|--------|--------|-----------------------------------------------------------|--------|--------|-----------------------------------------------------------------|--------|--------|-----------------------|--------|
| Automobile                Loan                    |   | $      | 11,154    |   | $      | 8,248                                               |   | $      | 2,906                                                     |   | $      | --                                                              |   | $      | --                    |   |
| Note                Payable                       |   |   | 122,500   |   |   | 70,000                                              |   |   | 52,500                                                    |   |   | --                                                              |   |   | --                    |   |
| Equipment                Leases                   |   |   | 106,087   |   |   | 36,283                                              |   |   | 63,343                                                    |   |   | 6,461                                                           |   |   |                  |   |
| Automobile                Leases                  |   |   | 14,760    |   |   | 7,995                                               |   |   | 6,765                                                     |   |   | --                                                              |   |   | --                    |   |
| Office                Space Leased                |   |   | 752,026   |   |   | 185,325                                             |   |   | 298,560                                                   |   |   | 268,142                                                         |   |   | --                    |   |
| Total                Contractual Cash Obligations |   | $      | 1,006,527 |   | $      | 307,850                                             |   | $      | 424,074                                                   |   | $      | 274,603                                                         |   | $      | --                    |   |

----

*Effects      of Inflation*

*Potential      Future Service Contract Revenue*

**ITEM      3. QUANTITATIVE      AND QUALITATIVE DISCLOSURES**

**ITEM      **
**4(T).      **
**CONTROLS      AND PROCEDURES **

*Evaluation      of Disclosure Controls and Procedures.*

*Changes      in Internal Control over Financial Reporting. *

----

**PART      II.  OTHER INFORMATION**

** ITEM      1. LEGAL      PROCEEDINGS **

**ITEM      2. UNREGISTERED      SALES OF EQUITY SECURITIES**

**ITEM      3. DEFAULT      UPON SENIOR SECURITIES**

**ITEM      4. SUBMISSION      OF MATTERS TO A VOTE OF SECURITY HOLDERS**

**ITEM      5. OTHER      INFORMATION**

**ITEM      6. EXHIBITS**

|   | 10.1 | Inmate                Healthcare Services Agreement, dated March 19, 2008, by and between                Conmed, Inc. and the City of Chesapeake, Virginia Sheriff’s                Department |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | 31.1 | Section                302 Certification of Principal Executive Officer                                                                                                                              |
|   | 31.2 | Section                302 Certification of Principal Financial Officer                                                                                                                              |
|   | 32.1 | Section                906 Certification of Principal Executive Officer                                                                                                                              |
|   | 32.2 | Section                906 Certification of Principal Financial                Officer                                                                                                               |

----

**SIGNATURES**

**Conmed      Healthcare Management, Inc.**
** **

| May 14, 2008                |                                                                                                                               |
|-----------------------------|------------------------------------------------------------------------------------------------------------------------------------|
|                        |                                                                                                                               |
|                        | By                /s/ Richard W. TurnerRichard                W. Turner, Ph.D.President                and Chief Executive Officer |
|                        |                                                                                                                               |
|                        |                                                                                                                               |
|                        |                                                                                                                               |
|                        |                                                                                                                               |
| May                14, 2008 |                                                                                                                               |
|                        | /s/                Thomas W. FryThomas                W. FryChief                Financial Officer and Secretary                   |

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