MHM SERVICES INC
8-K, 1996-09-13
GENERAL MEDICAL & SURGICAL HOSPITALS, NEC
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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 - AUGUST 26, 1996
                        (Date of earliest event reported)



                               MHM SERVICES, INC.
             (Exact name of Registrant as specified in its charter)



            DELAWARE                 1-12238             52-1223048
(State of incorporation) (Commission file number)      (IRS employer
                                                        identification
                                                        number)



          8000 TOWERS CRESCENT DRIVE, SUITE 810, VIENNA, VIRGINIA 22182
               (Address of principal executive offices, zip code)


                            AREA CODE (703) 749-4600
                               (Telephone number)

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ITEM 5.     OTHER INFORMATION.

            On August 29, 1996 MHM Services, Inc. (the "Company") announced
that, effective August 26. 1996, William P. Ferretti was appointed a Director of
the Company at a Board Meeting to fill a vacancy resulting from the resignation
of Abraham D. Gosman.


ITEM 7.     FINANCIAL STATEMENTS AND EXHIBITS.
                                                         PAGE
                                                         ----
            (c)  Exhibits

            99   Press Release, dated August 29, 1996      4




                                        2
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                                   SIGNATURES


Pursuant to requirements of Section 13 of 15(d) 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.




Dated:  September 13, 1996          MHM Services, Inc.


                                     By: /s/ Carolyn Zimmerman
                                         -------------------------
                                            Vice President - Finance
                                            and Chief Financial Officer




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                                   EXHIBIT 99


                               MHM SERVICES, INC.

                           Contact: Michael S. Pinkert
                      President and Chief Executive Officer
                                  703-749-4610

                              FOR IMMEDIATE RELEASE

                            WILLIAM P. FERRETTI JOINS
                         MHM SERVICES BOARD OF DIRECTORS

  VIENNA, VA., August 29, 1996 - MHM Services, Inc. (AMEX: MHM) formerly Mental
Health Management has appointed William P. Ferretti to the Company's Board of
Directors, effective August 26.  Ferretti replaces Abraham D. Gosman who
resigned his position to focus on other business commitments.
  "We feel very fortunate to have Bill Ferretti on the MHM Services Board.  His
more than 20 years of experience in healthcare delivery, including practice
management and hospice care, will be invaluable to our Company," said Michael S.
Pinkert, President and Chief Executive Officer of MHM Services, Inc.
    Ferretti is Co-Founder, Chairman and CEO of Medstar Television, Inc., the
largest producer and syndicator of televised medical news in the U.S.  Medstar
programming is carried on ABC, CBS and NBC TV affiliates in over 130 cities and
on cable networks, including HBO, The Discovery Channel, and The Learning
Channel.  HEALTH MATTERS, Medstar's long-running TV series, has been
underwritten by nearly 100 academic medical centers, multi-hospital systems, and
managed care organizations.
 Ferretti currently serves on the board of directors of U.S. Physicians, Inc., a
physician practice management company, and Vitas Healthcare, a provider of
hospice services.  Previously, he was a director of Access health, which
provides personal health information to health plan members.
    In addition, Ferretti is a general partner of the NEPA Venture Fund-Il, a
venture capital firm.

<PAGE>

 Ferretti received a masters degree from Yale University where he is an adjunct
faculty member.  He formerly served as President of the Yale University Hospital
Administration Alumni Association.
    MHM Services, Inc., based in Vienna, Virginia, provides sub-acute medical
specialty and behavioral health services via practice management of non-
physician medical specialties.  The Company serves over 800 extended care
facilities, nursing homes, assisted living centers, other adult community living
institutions and schools in 12 states and is a leader in the privatization or
programs to underserved populations and beneficiaries of public funds.  Services
provided include behavioral healthcare, podiatry, optometry and dentistry.



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