MEADOWBROOK REHABILITATION GROUP INC
8-K, 1998-09-24
SKILLED NURSING CARE FACILITIES
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                       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):
                               September 14, 1998



                     MEADOWBROOK REHABILITATION GROUP, INC.
             (Exact name of registrant as specified in its charter)


   Delaware                     0-19726                          94-3022377
- ---------------            ----------------               ----------------------
(State or other            (Commission File                  (I.R.S.  Employer
jurisdiction of                Number)                    Identification Number)
incorporation)


              2000 Powell Street, Suite 1203, Emeryville, CA 94608
                    (Address of principal executive offices)


               Registrant's telephone number, including area code:
                                 (510) 420-0900



<PAGE>


Item 2.      Acquisition of Assets

     On September  14, 1998,  the  Registrant  acquired  Cambio  Networks,  Inc.
("Cambio"),  pursuant to an Agreement  and Plan of Merger,  dated as of April 3,
1998,  as amended  by the  Agreement  of  Amendment,  dated as of July 27,  1998
(collectively,  the  "Agreement").  Cambio  is a  network  management  inventory
software company providing services to financial,  telephony,  medical,  and Y2K
markets in both the U.S. and Common  Market.  Under the terms of the  Agreement,
Cambio's   shareholders  received  an  aggregate  of  1,238,842  shares  of  the
Registrant's  Class A  Common  Stock,  representing  approximately  32.3% of the
Registrant's  outstanding  Class A and Class B Common Stock.  The  consideration
given was determined by arms'-length  negotiations between the parties. From the
date of the acquisition,  the  Registrant's  operations have consisted solely of
the operations of Cambio,  which is a wholly owned subsidiary of the Registrant.
Prior to execution of the Agreement,  there was no material relationship between
Cambio and the Registrant or any of its  affiliates,  any director or officer of
the Registrant, or any or any associate of any such director or officer.

Item  7.     Financial Statements and Exhibits

       (a)   Financial Statements of Business Acquired.

             The  required  financial  statements  will be filed by November 13,
             1998.

       (b)   Pro Forma Financial Information.

             The  required  pro  forma  financial  statements  will be  filed by
             November 13, 1998.


                                       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.

                                       MEADOWBROOK REHABILITATION GROUP, INC.


                                       By: /s/ Harvey Wm. Glasser,  M.D.
                                           Harvey Wm.  Glasser,  M.D.
                                           President and Chief Executive Officer

Dated:   September 23, 1998



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