SEC FORM 3

SEC Form 3

FORM 3

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

INITIAL STATEMENT OF BENEFICIAL OWNERSHIP OF SECURITIES

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934
or Section 30(h) of the Investment Company Act of 1940

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1. Name and Address of Reporting Person^*

LEHMAN BROTHERS HOLDINGS INC

(Last)

(First)

(Middle)

745 SEVENTH AVENUE

(Street)

NEW YORK

10019

(City)

(State)

(Zip)

2. Date of Event Requiring Statement (Month/Day/Year)
03/13/2007

3. Issuer Name and Ticker or Trading Symbol
Conmed Healthcare Management, Inc. [ CMHM ]

4. Relationship of Reporting Person(s) to Issuer
(Check all applicable)

Director	X	10% Owner
Officer (give title below)		Other (specify below)

5. If Amendment, Date of Original Filed (Month/Day/Year)

6. Individual or Joint/Group Filing (Check Applicable Line)

X	Form filed by One Reporting Person
	Form filed by More than One Reporting Person

Table I - Non-Derivative Securities Beneficially Owned
1. Title of Security (Instr. 4)	2. Amount of Securities Beneficially Owned (Instr. 4)	3. Ownership Form: Direct (D) or Indirect (I) (Instr. 5)	4. Nature of Indirect Beneficial Ownership (Instr. 5)
Common Stock	2,000,000	I	See footnote⁽¹⁾

Table II - Derivative Securities Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security (Instr. 4)	2. Date Exercisable and Expiration Date (Month/Day/Year)		3. Title and Amount of Securities Underlying Derivative Security (Instr. 4)		4. Conversion or Exercise Price of Derivative Security	5. Ownership Form: Direct (D) or Indirect (I) (Instr. 5)	6. Nature of Indirect Beneficial Ownership (Instr. 5)
1. Title of Derivative Security (Instr. 4)	Date Exercisable	Expiration Date	Title	Amount or Number of Shares	4. Conversion or Exercise Price of Derivative Security	5. Ownership Form: Direct (D) or Indirect (I) (Instr. 5)	6. Nature of Indirect Beneficial Ownership (Instr. 5)
Warrant	03/13/2007⁽²⁾	03/13/2012	Common Stock	500,000	$0.3	I	See footnote⁽¹⁾
Warrant	03/13/2007⁽²⁾	03/13/2012	Common Stock	166,667	$2.5	I	See footnote⁽¹⁾

Explanation of Responses:

1. By LB I Group Inc. ("LB I Group"), an indirect and wholly-owned subsidiary of the Reporting Person.

2. Subject to a limitation on acquiring shares of Common Stock if the exercise would result in the Reporting Person owning more than 9.99% of the outstanding Common Stock.

Remarks:

JOINT FILER INFORMATION Title of Securities: Common Stock and Warrants Issuer & Ticker Symbol: Conmed Healthcare Management Inc. (CMHM) Designated Filer: Lehman Brothers Holdings Inc. Other Joint Filer: LB I Group Inc. 399 Park Avenue New York, NY 10022 Date of Event Requiring Statement: March 13, 2007 Signature on behalf of other joint filer: /s/Rashid Alvi Vice President

	/s/ Rashid Alvi	03/23/2007
	** Signature of Reporting Person	Date
Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
* If the form is filed by more than one reporting person, see Instruction 5 (b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
Note: File three copies of this Form, one of which must be manually signed. If space is insufficient, see Instruction 6 for procedure.
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