STAR MULTI CARE SERVICES INC
8-K, 1997-05-28
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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): May 14, 1997

                         STAR MULTI CARE SERVICES, INC.
             (Exact Name of Registrant as specified in its Charter)


            New York                    1-10751            11-1975534
(State or Other Jurisdiction            (Commission        (I.R.S. Employer
   of Incorporation)                    File Number)       Identification No.)


33 Walt Whitman Road, Huntington Station, NY                11746
(Address of Principal Executive Offices)                    (Zip Code)


                                 (516) 423-6688
              (Registrant's Telephone Number, Including Area Code)

<PAGE>



Item 5.   Other Events

          Audit of American Health Care Services
          --------------------------------------

          In May, 1997,  Star Multi Care  Services,  Inc. (the  "Company"),  was
advised that an audit of American Health Care Services,  the Company's  medicare
agency,  by the Office of Audit  Services,  Office of  Inspector  General of the
United States  Department of Health and Human  Services which had been forwarded
to the Medicare intermediary assigned to administer Medicare payments in Florida
has been referred to the Civil  Division of the United  States  Attorney for the
Southern  District of Florida.  The Company has been  advised by its  regulatory
counsel that they have been in contact with the Assistant United States Attorney
assigned  to the  matter  and they do not know at this  time the  extent  of the
Company's liability.  Regulatory counsel has also advised the Company that it is
likely the Company will have claims against third- parties (e.g., subcontractors
and  licensed  home  health  agencies)  for a portion  of any  liability  of the
Company.  Management  anticipates  that this  matter  should  be  satisfactorily
resolved.

                                       -2-

<PAGE>


                                   SIGNATURES


          Pursuant to the  requirement 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.


May 28, 1997              STAR MULTI CARE SERVICES, INC.


                                      By: /s/ William Fellerman
                                          ------------------------
                                          Name:  William Fellerman
                                          Title:  Chief Financial Officer














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