SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20546
FORM 8-K
Current Report Pursuant to
Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): January 4, 1999
Caretenders Health Corp.
(Exact name of registrant as specified in its charter)
Delaware
(State or other jurisdiction of incorporation)
1-9848 06-1153720
(Commission file number) (I.R.S. Employer Identification No.)
100 Mallard Creek Road, Louisville, KY 40207
(Address of principal executive offices) (Zip Code)
(502) 899-5355
(Registrant's telephone number, including area code)
Item 5. Other Events
Prior to October 1, 1998 the Company managed two home health
agencies operating in the Louisville, KY area, which were owned by
Columbia/HCA. The Company performed the management services
pursuant to management agreements scheduled to expire in February
and June 2000. These services generated approximately $3 million
of management fee revenues in the Company's most recent fiscal
year, which ended March 31, 1998 and $1.3 million in the six
months ended September 30, 1998. On September 30, 1998 Columbia
sold the agencies to a third party and notified the Company of its
intention to terminate the contract.
<PAGE>
In its previously filed report on Form 8K on this matter, the
Company announced the sale, its belief that Columbia's action
constituted a breach of contract, for which the Company should be
entitled to monetary damages and the resulting expected decline in
revenues and earnings. On December 18, 1998 the Company and
Columbia entered into a termination and settlement agreement
resolving this breach of contract dispute and two lawsuits between
the parties as of that date. Under the agreement Columbia will
pay the Company a total of $1.5 million in settlement of breach
claims and in return for certain follow-on management services to
be provided through June, 1999.
Any statements included herein that are other than statements of
historical facts are forward-looking statements. These forward-
looking statements are based on the Company's current
expectations. Because forward-looking statements involve risks
and uncertainties, the Company's actual results could differ
materially. For a discussion regarding factors which could affect
the Company's financial performance, refer to the Company's
Securities and Exchange Commission filings on Forms 10-K and 10Q,
in particular information under the headings _Business_ and
_Management's Discussion and Analysis of Financial Condition and
Results of Operations._ The Company disclaims any intent or
obligation to update its forward-looking statements.
SIGNATURES
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.
Caretenders Health Corp.
(Registrant)
By:/s/ C. Steven Guenthner
----------------------------
C. Steven Guenthner
Senior Vice President and
Chief Financial Officer
Exhibit Index
None.
