SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report
February 8, 1999
(Date of Report - Date of Earliest Event Reported)
33-02035-A
(Commission File Number)
CORRECTIONS SERVICES, INC.
Florida 59-2508470
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
3040 East Commercial Boulevard
Fort Lauderdale, Florida 33308
(Address of Principal Executive Offices)
(954) 772-2297
(Registrant's Telephone Number)
None
(Former Name, Former Address and Former Fiscal Year,
if changed since last report)
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ITEM 2. ACQUISITION OR DISPOSITION OF ASSETS
On February 8, 1999, the Registrant purchased fifteen (15%)
percent of the issued and outstanding capital stock of Physicians
Acceptance Corporation, a privately held Florida corporation with
principal offices in Coral Springs, Florida.
The Company is informed that Physicians Acceptance Corporation
was formed to arrange patient financing for elective surgical and
non-surgical procedures. Physicians Acceptance Corporation
perceives that an increase in percentage of healthcare industry
reimbursement is comprised of patient payments or partial patient
payments, especially for elective medical procedures. Physicians
Acceptance Corporation advises that as the percentage of non-
coverage of medical costs grows in that area and as medical costs
continue to rise, more and more patient funding of such expenses,
as opposed to insurance funding, will be encountered. Physicians
Acceptance Corporation feels that patients will demand, and will
increasingly demand, affordable financing options from medical
services providers.
The Registrant acquired fifteen (15%) percent of the issued
and outstanding capital stock of Physicians Acceptance Corporation
for cash in the amount of One Hundred and Fifty Thousand
($150,000.00) Dollars and seeks to pursue acquisition of all of the
ownership interest of Physicians Acceptance Corporation. The
Registrant has begun due diligence in that regard, particularly
with respect to the details of the business and intended business
of Physicians Acceptance Corporation and its financial history,
present condition and outlook.
Physicians Acceptance Corporation has advised the Registrant
that it began part time operation in January, 1998 and achieved
full time operation during July of 1998. Its medical services
provider network has grown from less than fifty (50) physicians in
June of 1998 to more than three hundred (300)at year end.
Physicians Acceptance Corporation has advised the Registrant that
it expects substantial additional growth in its medical services
provider network during 1999. By the close of 1998, Physicians
Acceptance Corporation advises that it arranged funding upon
provider applications in excess of $1,553,000. The Registrant is
further informed that Physicians Acceptance Corporation is
currently operating in nine (9) states and intends to expand into
a minimum of eight (8) additional states during 1999.
The Registrant's intent to acquire Physicians Acceptance
Corporation as a wholly-owned subsidiary has not been reduced to a
definitive agreement. The ultimate terms and conditions of
acquisition, if a definitive agreement is in fact completed, have
yet to be determined. There can be no assurance moreover that in
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the course of carrying out its inquiry and diligence into
Physicians Acceptance Corporation, that the Company will not
encounter one or more obstacles which will prove to be
insurmountable. In that event, the Registrant will not succeed in
its intent and will instead sustain the costs and expenses of its
efforts.
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SIGNATURES
Pursuant to the requirements of the Securities and Exchange
Act of 1934, the Registrant has duly caused this report to be
signed on its behalf by the undersigned hereunto duly authorized.
CORRECTIONS SERVICES, INC.
Dated: February 26, 1999 BY:/S/Norman H. Becker
Norman H. Becker, President
