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 May 15, 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 5. Other Events
On May 6, 1998 Hospital Staffing Services of Tennessee, Inc. (a fully owned
subsidiary of Hospital Staffing Services, Inc.) filed an adversary complaint
against the Department of Health and Human Services, Health Care Financing
Administration ("HCFA"), and Wellmark, Inc., as financial intermediary. Further,
the Company filed an emergency motion for a temporary restraining order in an
effort to temporarily restrain the Department of Health and Human Services,
through HCFA, from withholding the Medicare revenues generated by the operations
of the Company.
As a result, on May 15, 1998, the Honorable, Raymond B. Ray, Bankruptcy Judge
for the Southern District of Florida, entered a temporary restraining order
enjoining further withholding of Medicare reimbursements pending order of the
Court. In addition, the order required HCFA to immediately wire transfer
$441,373.00 to the Company representing funds improperly withheld since the
bankruptcy filing and such order further requires HCFA to reinstate the periodic
interim payments to the Company as they become due. See copy of Court Order
attached as Exhibit I.
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SIGNATURES
May 19, 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: May 19, 1998
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EXHIBIT I:
UNITED STATES BANKRUPTCY COURT
SOUTHERN DISTRICT OF FLORIDA
BROWARD DIVISION
In re:
HOSPITAL STAFFING SERVICES Case No. 98-21899-BKC-RBR
OF TENNESSEE, INC., Chapter 11
FEI # 65-0194606,
Debtor.
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HOSPITAL STAFFING SERVICES Adv. Case No. 98-2151-BKC-RBR-A
OF TENNESSEE, INC.,
Plaintiff,
vs.
DONNA SHALALA, as Secretary of the United States Department of Health and Human
Services; HEALTH CARE FINANCING ADMINISTRATION; and WELLMARK, INC.
Defendants.
- -----------------------------/
ORDER GRANTING DEBTOR'S MOTION PURSUANT TO 11 U.S.C. SECT. 105
AND FED.R.BANKR.P. 7065 FOR TEMPORARY
RESTRAINING ORDER AND/OR PRELIMINARY INJUNCTION
THIS MATTER came before the Court on May 12, 1998 at 1:30 p.m. upon the
emergency hearing on the Motion Pursuant to 11 U.S.C. ss.105 and Fed.R.Bankr.P.
7065 for Temporary Restraining Order and/or Preliminary Injunction (the
"Injunction Motion") filed by the Plaintiff, Hospital Staffing Services of
Tennessee, Inc.
THE COURT, shall issue its MEMORANDUM DECISION forthwith to set forth
its findings of fact and conclusions of law, and finding that the Plaintiff's
success on the merits is highly likely, irreparable harm will result in the
event the Debtor is not able to obtain access to the funds which were withheld
post petition and/or rely upon future revenues from post petition services, the
threatened injury to the Plaintiff and its affiliates far outweighs any harm
that may result to the Defendants in the event that the Court enters the
injunction, where the balance of the harm weighs in favor of the Plaintiff, and
the public interest will be served by the entry of the injunction, it is hereby
ORDERED AND ADJUDGED that:
(1) The Defendants shall remit instanter, by wire transfer, to HSS
Tennessee the sum of $441,373.00;
(2) The Defendants shall transmit all future payments and
reimbursements as and when due in accordance with the procedures in place prior
to the suspension of payments;
(3) The Defendants are temporarily restrained and enjoined from
withholding future payments or claiming recoupment thereon pending further order
of this Court.
DONE AND ORDERED in Chambers in Fort Lauderdale, Florida, this 15th day
of May, 1998.
/s/Raymond B. Ray
Raymond B. Ray, Judge
United States Bankruptcy Court
