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 April 2 1998
(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 4. Changes in Registrant's Certifying Accountant
On April 2, 1998 the client-auditor relationship between Hospital Staffing
Services, Inc. ("Company") and Arthur Andersen LLP ceased. The former accountant
declined to stand for re-appointment as the Company's principal accountant. The
declination to stand for re-appointment was approved by the Company's Chief
Executive Officer on the above-mentioned date. Attached is a formal response
letter from the Company's principal accountant on this matter as Exhibit 16.
The principal accountant's report on the financial statements for the past two
years, through the audited periods ended November 30,1996 contained no adverse
opinions or a disclaimer of opinion, was not qualified or modified as to
uncertainty, audit scope, or accounting principles.
During the Company's most recent fiscal years preceding the declination to stand
for re-appointment, there were no disagreements between the Company and the
former accountant on any matter of accounting principle, practices, financial
statement disclosure, auditing scope or procedures.
The Company filed for protection under Chapter 11 of the Federal Bankruptcy Code
on March 16 (Corporate) and March 18 (Field Operations). As such engagement of
another accounting firm requires approval from the Court. The Company has been
engaged in discussions with Ernst & Young, LLP and a proposal has been put
before the Court; however, the required approval was not obtained as of Friday,
April 10, 1998. On-going discussions continue with Ernst & Young, LLP to
overcome the obstacles presented by the Court.
During the period, subsequent to the non-acceptance of the Ernst & Young, LLP
proposal, the Company has continued to contact, hold discussions and negotiate
acceptable fee arrangements with a series of accounting firms including Ernst &
Young, LLP. Upon selection and approval of fee arrangements by the Courts, an
announcement of the Company's external accounting firm will be issued
immediately. It is the Company's intention to complete this process with all
prudent haste.
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SIGNATURES
April 28, 1998
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/Steve Martin Steve Martin, Chief Financial Officer
(principal financial officer)
Date: April 28, 1998
<PAGE>
EXHIBIT:
April 27, 1998
Office of the Chief Accountant
Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, D.C. 20549
Ladies and Gentlemen:
We have read the first three paragraphs of Item 4 included in the Form 8-K dated
April 2, 1998 of Hospital Staffing Services, Inc. (Commission File Number
1-11131) to be filed with the Securities and Exchange Commission on or about
April 27, 1998, and are in agreement with the statements about our firm made in
the first two sentences of the first paragraph, and in the second and third
paragraphs.
Very truly yours,
ARTHUR ANDERSEN LLP
