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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15 (d) of the
Securities Exchange Act of 1934
DATE OF REPORT - NOVEMBER 7, 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 November 7, 1996 MHM Services, Inc. (the "Registrant") issued a
press release announcing that it has agreed to purchase the geropsychiatric
management services business of Liberty Bay Colony Health Services, Inc.
Liberty Bay Colony, a wholly owned subsidiary of Liberty Management Group, Inc.,
provides behavioral healthcare services to 60 extended care facilities in
Massachusetts. The purchase is subject to several contingencies, including the
approval of the Board of Directors of both companies.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
Page
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(c) Exhibits
99 Press Release of the Registrant, dated 4
November 7, 1996
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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: November 21, 1996 MHM Services, Inc.
By: /s/ Carolyn Zimmerman
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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
MHM EXPANDS GEROPSYCHIATRIC SERVICES
WITH PURCHASE OF LIBERTY BAY COLONY
VIENNA, VA, November 7, 1996 - MHM Services, Inc. (AMEX: MHM),
formerly Mental Health Management, Inc., has agreed, subject to the fulfillment
of certain conditions, to purchase the geropsychiatric management services
business of Liberty Bay Colony Health Services, Inc. in Massachusetts. A wholly
owned subsidiary of Liberty Management Group, Inc., Liberty Bay Colony provides
behavioral healthcare services to 60 extended care facilities in Massachusetts.
MHM plans to consolidate the Liberty Bay Colony operation with its
Boston-based division, MHM Counseling Services (formerly Lifespan Therapies,
which was acquired by MHM in 1995). This acquisition will bring the number of
extended care facilities served by MHM Counseling Services to 80. Annualized
revenues for the geropsychiatric management services business of Liberty Bay
Colony in Massachusetts are approximately $3.7 million.
This acquisition will greatly expand MHM's penetration of the New
England market and position the Company to pursue large scale contracting with
nursing home chains on a regional basis," said Michael S. Pinkert, President and
Chief Executive Officer of MHM Services, Inc.
The purchase is subject to the approval of the Boards of Directors of
both companies.
MHM Counseling Services provides a wide range of outpatient behavioral
healthcare services in Massachusetts: counseling for schools; on-site
geropsychiatric services for nursing homes residents; counseling for persons
with mental retardation and developmental delays; and rehabilitative psychiatric
services for those with physical disabilities and chronic medical illness.
Services are provided on-site in the client's natural environment.
Additionally, MHM Counseling Services provides general outpatient behavioral
healthcare to children, adolescents, adults and families through clinics located
in Charlestown and Taunton.
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 of
programs to underserved populations and beneficiaries of public funds. Services
provided include behavioral healthcare, podiatry, optometry and dentistry.
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This release includes forward-looking statements based on management's
current plans and expectations. Such statements involve risks and uncertainties
which may cause actual future activities and results of operations to be
materially different from those suggested in this release, including the use of
available cash resources to fund continued operating losses, the amount and
timing of receipt of government reimbursement and the resolution of claim
reviews, risks associated with industry consolidation and acquisitions, the need
to manage growth and the possible need to use the net cash proceeds from the
sale of freestanding facilities for the retirement of certain indebtedness. For
additional information, please refer to the Company's filings with the
Securities and Exchange Commission.
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