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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_____________
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): June 19, 1995
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HORIZON HEALTHCARE CORPORATION
(Exact name of registrant as specified in its charter)
DELAWARE 1-9369 91-1346899
(State or other jurisdiction (Commission File (I.R.S. employer
of incorporation or organization) Number) identification no.)
6001 INDIAN SCHOOL ROAD, N.E., SUITE 530
ALBUQUERQUE, NEW MEXICO 87110
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (505) 881-4961
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Item 5. Other Events
On June 19, 1995, Horizon Healthcare Corporation ("Horizon") announced
that it plans to sell the assets and leasehold improvements at eight of its
facilities. Horizon anticipates that the intended dispositions will occur
during fiscal 1996. Pending disposition, the operations of these facilities
will be reported in Horizon's financial statements as discontinued operations
commencing with its consolidated financial statements for the fiscal year
ended May 31, 1995.
Horizon will record a charge for discontinued operations of $16.9
million ($0.63 per share), net of related federal and state income tax
benefit, in the fourth quarter of the fiscal year ended May 31, 1995. This
charge will record the expense related to adjustment of the carrying cost of
these facilities, the reclassification of the losses from the operation of
these facilities during fiscal year 1995 and the accrual of anticipated
future losses from the operation of the facilities.
The consolidated financial statements of Horizon for the fiscal year
ended May 31, 1995 are currently being audited by Horizon's independent
accountants. Horizon does not anticipate that it will announce its results
of operations for the fiscal year ended May 31, 1995 until after July 10,
1995. Nonetheless, based on the information now available to management,
Horizon estimates that fully diluted earnings per share from continuing
operations will be $1.40 for the year (as compared with $0.91 per share for
the year ended May 31, 1994) before the charge for discontinued operations.
Based on the information now available to management, Horizon expects no
further charges for these discontinued operations during fiscal year 1996.
The properties that are the subject of the planned dispositions, in the
aggregate, incurred a net loss in fiscal year 1995 in excess of $10.5
million. Through these facilities, Horizon provides services for
neuro-behaviorally impaired patients (four facilities), long-term chronic
ventilator care patients (two facilities), personal care patients (one
facility) and patients with mild mental disorders (one facility). These
services are deemed by management of Horizon to be inconsistent with
Horizon's emphasis on long-term rehabilitation services and its concentration
on high acuity patient services. Four of these facilities, of which three
are located in Michigan and one in Ohio, accommodate 664 licensed beds. The
remaining four, located in Massachusetts, operate with provisional licenses
and accommodate 640 probationary licensed beds.
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SIGNATURE
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 thereunto duly authorized.
HORIZON HEALTHCARE CORPORATION
Date: June 23, 1995 By: /s/ Ernest A. Schofield
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Ernest A. Schofield
Senior Vice President
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