SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report September 26, 1997
(Date of earliest event reported)
HOSPITAL STAFFING SERVICES, INC.
(Exact name of registrant as specified in its charter)
FLORIDA 1-11131 59-2150637
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification Number)
6245 North Federal Highway, Suite 500
Fort Lauderdale, Florida 33308-1900
(Address of principal executive offices)
(954) 771-0500
Registrant's telephone number, including area code
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HOSPITAL STAFFING SERVICES, INC. AND SUBSIDIARIES
FORM 8-K
ITEM 5. OTHER EVENTS
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PRESS RELEASE ISSUED SEPTEMBER 26, 1997:
Fort Lauderdale, Florida, September 26, 1997 - Hospital Staffing Services, Inc.
(NYSE: HSS) today reported that it expects to record a charge of approximately
$3 million against its results for the third quarter ended August 31, 1997, and
that its liquidity has been materially and adversely affected by the Medicare
program's recoupment of payments to the Company's New England medicare home care
provider. This charge and the Medicare payment recoupment, which was implemented
on September 19, 1997, are related to notices of Overpayments After Final
Settlement received by the Company from the Medicare program relating to the
Company's New England home care operations for fiscal years 1993 and 1994, which
are in excess of recorded reserves. The Medicare program seeks recoupment of
such alleged overpayments in the amount of approximately $4.8 million from cash
payments otherwise due to the Company's New England home care provider for
services provided in 1996 and 1997.
The Company continues to contest the overpayment and to seek relief from the
Medicare payment recoupment through all means including the program's
administrative appeals process. The Company also has under consideration
alternative means to augment its short term liquidity to fund current
operations, including the possibility of assets sales, cash infusions from
strategic and/or financial partners, and possible business combinations. The
Board of Directors of the Company has also authorized management to explore the
possibility of a protective bankruptcy filing. There can be no assurance that
the Medicare payment recoupment will be lifted administratively, or that the
Company will be able to raise sufficient cash to continue to fund its
operations. If the Company is unable to fund its operations, the Company's
ability to continue as a going concern may be adversely affected.
Hospital Staffing Services, Inc., is a professional health care services and
recruitment organization. The Company specializes in the provision of nursing
services to patients at home and in health care institutions through a regional
network of home health care offices; rehabilitative services; support services
to an array of healthcare providers; and in the placement of medical personnel,
on a temporary and interim basis, in hospitals and other health care facilities
located throughout the United States and the U.S. Virgin Islands.
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HOSPITAL STAFFING SERVICES, INC. AND SUBSIDIARIES
SIGNATURES
SEPTEMBER 26, 1997
Pursuant to the requirements 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.
HOSPITAL STAFFING SERVICES, INC.
By: /s/Ronald G. Huneycutt Ronald G. Huneycutt, Vice President of
Ronald G. Huneycutt Finance, Chief Financial Officer
(principal accounting officer)
Date: September 29, 1997
