SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities and Exchange
Act of 1934
Date of Report: January 25, 1994
CONTINENTAL MEDICAL SYSTEMS, INC.
(Exact name of registrant as specified in its charter)
Delaware 51-0287965 0-15088
(State of Incorporation) (IRS Employer (Commission
Idenitification No.) File Number)
600 Wilson Lane
P.O. Box 715
Mechanicsburg, PA 17055
Telephone Number (717) 790-8300
___________________________________
Item 4. Changes in Registrant's Certifying Accountants
Following completion of the Registrant's fiscal 1993 audit by
Price Waterhouse, the Audit Committee of the Registrant's Board
of Directors decided to entertain proposals from various
accounting firms, including Price Waterhouse, to serve as the
Registrant's principal accountant for fiscal 1994. Effective
January 18, 1994, upon the recommendation of the Audit Committee,
the Registrant's Board of Directors approved the dismissal of
Price Waterhouse and the engagement of Ernst & Young as the
Registrant's principal accountant to audit its financial
statements for fiscal 1994.
During each of the two fiscal years ended June 30, 1993 and 1992
and the interim period through January 18, 1994, there were no
disagreements with Price Waterhouse on any matter of accounting
principles or practices, financial statement disclosure, or
auditing scope or procedures, which disagreements, if not
resolved to Price Waterhouse's satisfaction, would have caused
them to make reference to the subject matter of the disagreement
in connection with their report as independent auditors.
The audit reports of Price Waterhouse on the Registrant's
consolidated financial statements as of and for the years ended
June 30, 1993 and 1992, did not contain an adverse opinion or
disclaimer of opinion, nor were they qualified or modified as to
uncertainty, audit scope or accounting principles. The audit
report for the year end June 30, 1993 contained an explanatory
paragraph regarding the adoption of Statement of Financial
Accounting Standards No. 115 "Accounting for Certain Investments
in Debt and Equity Securities" and a change in the method of
accounting for development costs from deferring such costs to
expensing such costs until that time when construction is
probable.
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 thereunto duly authorized.
CONTINENTAL MEDICAL SYSTEMS, INC.
Date: January 25, 1994 By: /S/ Dennis L. Lehman
Dennis L. Lehman, Senior Vice
President - Finance and Chief
Financial Officer
Signing on behalf of the registrant
and as principal financial officer.
