UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): May 22, 1996
Merit Behavioral Care Corporation
(Exact Name of Registrant as Specified in Charter)
Delaware
(State or Other Jurisdiction of Incorporation)
33-80987 22-3236927
(Commission File Number) (IRS Employer
of Incorporation) Identification No.)
One Maynard Drive, Park Ridge, New Jersey 07656
(Address of Principal Executive Offices)(Zip Code)
Registrant's telephone number, including area code (201) 391-8700
N/A
(Former Name or Former Address, if Changed Since Last Report)
ITEM 5. OTHER EVENTS
Merit Behavioral Care Corporation announced today that it has reached
an agreement in principle to form a strategic alliance with Prudential
HealthCare, a business unit of The Prudential Insurance Company of America,
to provide mental health and substance abuse services to Prudential
HealthCare customers and members on a national basis as described in the
attached press release. The alliance is conditional upon the successful
completion of negotiations among the parties concerning the terms of the
arrangement.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registranbt has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
MERIT BEHAVIORAL CARE CORPORATION
/s/ Arthur H. Halper
_________________________________
Arthur H. Halper,
Executive Vice President and
Chief Financial Officer
Date: May 23, 1996
FOR IMMEDIATE RELEASE Contact: Mafalda Arena
201/782-3260
MERIT BEHAVIORAL CARE TO FORM ALLIANCE WITH
PRUDENTIAL HEALTHCARE TO PROVIDE BEHAVIORAL
HEALTH SERVICES TO PRUDENTIAL MEMBERS
PARK RIDGE, New Jersey, May 22, 1996 -- Merit Behavioral Care
Corporation (MBC), one of the nation's largest managed behavioral
healthcare companies, announced today that it has reached agreement in
principle to form a strategic alliance with Prudential HealthCare, a
business unit of The Prudential Insurance Company of America, to provide
mental health and substance abuse services to Prudential HealthCare
customers and members on a national basis. Prudential HealthCare, which
markets health plans issued by The Prudential and its health maintenance
organization (HMO) subsidiaries, also selected Value Behavioral Health, Inc.
to participate in the alliance. The alliance is conditioned upon the
successful completion of negotiations among the parties concerning the terms
of the arrangement.
It is expected that Prudential HealthCare will roll out services
under the new alliance to its managed care plans in selected geographic
markets beginning July 1, 1996, subject to execution of definitive
agreements and receipt of appropriate regulatory approvals. The markets
to be serviced by each of MBC and Value Behavioral will be determined by
Prudential HealthCare on a market by market basis.
Commenting on the selection of MBC and Value Behavioral as alliance
participants, Samuel Havens, president, Prudential HealthCare, said "These
companies have demonstrated an ability to deliver quality, cost-effective
behavioral health care. Through the alliance, we can strengthen Prudential
HealthCare's operations across the board in areas such as quality
improvement, member services and management systems, and improve our
members' access to the full continuum of behavioral health care
treatments."
"MBC is thrilled to join Prudential HealthCare and Value Behavioral
in this exciting cooperative undertaking," said Albert S. Waxman, Chairman
and Chief Executive Officer of MBC. "The alliance will set national
standards for quality and performance, while delivering services to meet
local requirements in the more than 40 major markets in which Prudential
HealthCare plans are located. The initiative will combine the strengths of
the three alliance participants, with a view to delivering fully integrated,
comprehensive behavioral health services to Prudential HealthCare members
nationally. We believe the alliance presents a unique opportunity for
Prudential HealthCare to improve the quality and consistency of health care
services across its various products and markets, while delivering a more
competitive product for its customers and members."
MBC currently provides behavioral healthcare services to more than 15
million people and 1,000 clients across all 50 states through a national
network of 30,000 staff and network providers and facilities. Clients
include corporations, union trusts, insurance carriers, HMOs, Blue Cross
Blue Shield organizations and government entities. MBC management, in
conjunction with affiliates of Kohlberg Kravis Roberts & Co. (KKR), acquired
MBC from Merck & Co., Inc. in a transaction completed in October, 1995.
