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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 July 22, 1997
MHM SERVICES, INC.
(Exact name of registrant as specified in its charter)
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DELAWARE 1-2238 52-1223048
(State or other jurisdiction of (Commission File Number) (I.R.S. Employer Identification No.)
incorporation or organization)
8000 TOWERS CRESCENT DRIVE, SUITE 810, VIENNA, VA 22182
(Address of principal executive offices) (Zip Code)
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Registrant's telephone number, including area code: (703) 749-4600
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Item 5. Other Information.
On July 22, 1997, MHM Services, Inc. ("Registrant") issued a Press Release
announcing a reorganization of its Finance and Accounting Department, the
timing of which was prompted, in part, by the resignation of Carolyn Zimmerman
as Vice President of Finance, Treasurer, Chief Financial Officer and a member
of the Board of Directors of the Registrant and several of the Registrant's
wholly-owned subsidiaries on July 11, 1997. Ms. Zimmerman left the Registrant
to work for Oncology Affiliates, Inc., a newly established company specializing
in the development and management of Oncology Medical Practices. Hartwell
Philips, Jr., a member of the accounting firm of Watkins, Meegan, Drury &
Company, L.L.C. will serve as Interim Chief Financial Officer while the
Registrant searches for Ms. Zimmerman's replacement. In addition, the
Registrant hired Darren L. Brady as Controller on July 8, 1997, and Brian J.
Bentz as Director of Accounting on June 25, 1997. As part of this
reorganization, Michael Zavala will assume the additional responsibilities of
Management Information Systems administration.
Item 7. Financial Statements and Exhibits. Page
(c) Exhibits
99.1 Press Release of the Registrant dated 4
July 22, 1997
2
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SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of
1934, the Registrant has duly caused this report to be signed on its behalf by
the undersigned thereunto duly authorized.
Date: July 22, 1997 MHM SERVICES, INC.
(Registrant)
/s/ Michael S. Pinkert
Michael S. Pinkert
President & Chief Executive Officer
3
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EXHIBIT INDEX
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Exhibit No. Exhibit
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99.1 Press Release of the Registrant dated July 22, 1997
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[MHM SERVICES, INC. LETTERHEAD]
CONTACT: Michael S. Pinkert
President and Chief Executive Officer
703/749-4610
FOR IMMEDIATE RELEASE
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MHM SERVICES, INC. REORGANIZES FINANCE DEPARTMENT
Vienna, VA, July 22, 1997 -- MHM Services, Inc. (AMEX:MHM) today announced a
reorganization of its Finance and Accounting Department as part of its
continuing strategic move from ownership and management of inpatient
psychiatric hospitals to the provision of mental health services at long-term
care and correctional institutions. The timing of this reorganization was
prompted, in part, by the resignation on July 11, 1997, of Carolyn Zimmerman
who left her positions as Vice President of Finance, Treasurer, CFO, and a
member of the Board of Directors of the Company and several of its wholly-owned
subsidiaries.
Michael S. Pinkert, President and CEO, stated, "Over the last several months,
we have experienced expansion in our new line of business serving long-term
care facilities and correctional institutions. The measures announced today
are intended to assure that MHM's financial management and information systems
to support this expansion (originally designed for inpatient care) are state of
the art or beyond."
The accounting firm of Watkins, Meegan, Drury & Company, L.L.C. has been
retained to conduct a comprehensive review of MHM's accounting and financial
management systems. During this analysis, Hartwell Philips, Jr., a Member of
Watkins, Meegan, Drury & Company, L.L.C. will serve as Interim Chief Financial
Officer. Joining Mr. Philips on the Company's financial management team are
Darren L. Brady, hired as Controller on July 8, 1997, and Brian J. Bentz, hired
as Director of Accounting for MHM on June 25, 1997. As part of this
reorganization, Michael Zavala is assuming the additional responsibilities of
Management Information Systems administration.
Ms. Zimmerman had been with MHM for approximately 11 years. She left to join
the founders of Oncology Affiliates, Inc., a newly established company
specializing in the development and management of Oncology Medical Practices.
Mr. Philips, a graduate of the University of Virginia, has considerable
background in healthcare, including serving as Director of Finance for
Physicians Healthplan, Inc., a 20,000 member HMO, and Assistant Controller at
Medlantic Healthcare Group, a local
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medical center. He was also with American Health Services, a psychiatric
hospital chain where he served as Assistant Controller.
Mr. Brady is a CPA with a BS Degree in Business Administration. He formerly
was with National Capital Area Blue Cross & Blue Shield as Controller of
Subsidiaries and Director of Finance for National Capital Administrative
Services, Inc.
Mr. Bentz is a CPA with over ten years of accounting experience who comes to
the Company from United Psychiatric Group, an operator of psychiatric hospitals
and integrated mental health systems.
MHM Services, Inc., is based in Vienna, Virginia, and provides sub-acute
medical and behavioral health services via practice management of medical
specialties. The Company serves more than 925 extended-care facilities,
nursing homes, assisted-living centers and other adult community living
institutions in 11 states. The Company also provides dental services to the
Delaware Correctional System and mental health services to the Tennessee
Correctional System through capitated contracts. MHM 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. MHM also provides a range of healthcare services for
schools and dialysis centers.
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