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: April 15, 1998
(Date of earliest event reported)
SUNSTAR HEALTHCARE, INC.
(Exact name of registrant as specified in its charter)
Delaware 1-14382 59-3361076
(State or other (Commission File Number) (IRS Employer
jurisdiction of Identification
incorporation or No.)
organization)
300 International Parkway, Suite 230
Heathrow, Florida 32746
(Address of principal executive offices, zip code)
(407) 304-1066
(Registrant's telephone number, including area code)
ITEM 2. ACQUISITION OR DISPOSITION OF ASSETS
On April 15, 1998, SunStar Healthcare, Inc. (the "Company")
sold substantially all the assets of its two physician practice
subsidiaries, Brevard Medical Centers, Inc., a Delaware corporation
("Brevard") and First Health, Inc., a Florida corporation ("First")
to Brevard Medical Care, Inc., a Florida corporation (the
"Buyer"). These assets consisted primarily of accounts receivable,
fixed assets and physician and other payor agreements. The
disposition signifies the completion of the Company's
transformation from a "provider" of medical services through
Brevard and First to a "payor" for medical services by establishing
and operating an HMO currently licensed to operate in 39 counties
within the State of Florida. For a more detailed description of
the Company's HMO services, see the Press Release, dated April 16,
1998, attached hereto as EXHIBIT 20 and made a part hereof.
The assets of Brevard and First were sold pursuant to a single
Asset Purchase Agreement (the "Agreement"), executed by the parties
and closed on April 15, 1998. A copy of the Agreement will be
filed by amendment or with the Company's next quarterly report,
whichever occurs sooner. The Company received an aggregate of one
million five hundred thousand dollars ($1,500,000.00) in cash for
the assets of First and Brevard. The sale price of the assets of
First and Brevard was determined based on estimates
of fair market value of such assets, the book value of such assets
and arms-length negotiations with the Buyer. The Company intends
to use the proceeds of this sale as working capital.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND
EXHIBITS.
(c) Exhibits
20. Press Release dated April 20, 1998.
SIGNATURES
Pursuant to the requirement of the Securities Exchange Act of
1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned hereunto duly authorized.
SUNSTAR HEALTHCARE, INC.
(Registrant)
Date: April 30, 1998 By: /S/ Warren Stowell
Warren Stowell
Chairman of the Board,
President and
Chief Executive Officer
By: /S/ David Jesse
David Jesse
Executive Vice President and
Assistant Secretary
EXHIBIT 20
SunStar HealthCare, Inc. Announces Sale of Physician Practice
Subsidiaries
Heathrow, Florida April 20,1998 SunStar HealthCare, Inc. (NASDAQ
SUNS) today announced the sale of its two physician practice
subsidiaries, Brevard Medical Centers, Inc. and First Health, Inc.,
to Cancer Care Centers, Inc., a local physician practice company.
The transaction will be additive to SunStar HealthCare, Inc.
earnings.
The sale of the physician practices reflects the final piece of
SunStar HealthCare, Inc.'s transformation from a "provider" of
medical care, through ownership of medical clinics, to a "payor" of
medical care as an HMO. The HMO subsidiary, SunStar Health Plan,
Inc., is licensed in 39 Florida counties and has its products
available to more than 12,000,000 potential customers representing
85% of the state of Florida's population.
SunStar Health Plan, Inc. offers comprehensive HMO products for
individuals, families, small and large employer groups through its
broad healthcare delivery system of 9,000 physicians and 88
hospitals.
Contact: Warren D. Stowell Chief Executive Officer
(407) 304-1066
Please Release Thursday April 16,1998 @ 8:00A.M.
U.S. 1 Distribution
