THERATX INC /DE/
SC 13G/A, 1997-03-10
SKILLED NURSING CARE FACILITIES
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                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


                                  SCHEDULE 13G

                    Under the Securities Exchange Act of 1934
                                (Amendment No. 2)

                              TheraTx, Incorporated
                                (Name of Issuer)

                    Common Stock, par value $0.001 per share
                         (Title of Class of Securities)

                                   883384 10 9
                                 (CUSIP Number)

  *The remainder of this cover page shall be filled out for a reporting person's
  initial  filing on this form with respect to the subject class of  securities,
  and for any subsequent amendment containing  information which would alter the
  disclosures provided in a prior cover page.

  The  information  required  on the  remainder  of this cover page shall not be
  deemed to be "filed" for the purpose of Section 18 of the Securities  Exchange
  Act of 1934 ("Act") or otherwise subject to the liabilities of that section of
  the Act but shall be subject to all other provisions of the Act (however,  see
  the Notes).





<PAGE>



- -----------------------                                ----------------------
CUSIP No.  883384 10 9                     13G         Page  2   of  9 Pages
           ------------                                     ----    ---
- -----------------------                                ----------------------

- ---------- --------------------------------------------------------------------
        1  NAME OF REPORTING PERSON
           S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON

           Warburg, Pincus Investors, L.P.             I.D.# 13-3549187
- ---------- --------------------------------------------------------------------
        2  CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
                                                                        (a) [ ]

                                                                        (b) [X]
- ---------- --------------------------------------------------------------------
        3  SEC USE ONLY
- ---------- --------------------------------------------------------------------
        4  CITIZENSHIP OR PLACE OF ORGANIZATION

           Delaware
- -------------------- ------ ---------------------------------------------------
                         5  SOLE VOTING POWER

                            -0-
                     ------ ---------------------------------------------------
     NUMBER OF           6  SHARED VOTING POWER
      SHARES
   BENEFICIALLY             -0-
     OWNED BY
                     ------ ---------------------------------------------------
       EACH              7  SOLE DISPOSITIVE POWER
     REPORTING
      PERSON                -0-
       WITH
                     ------ ---------------------------------------------------
                         8  SHARED DISPOSITIVE POWER

                            -0-
- ---------- --------------------------------------------------------------------
        9  AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

           -0-
- ---------- --------------------------------------------------------------------
       10  CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN
           SHARES*

- ---------- --------------------------------------------------------------------
       11  PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9

           0.0%
- ---------- --------------------------------------------------------------------
       12  TYPE OF REPORTING PERSON*

           PN
- ---------- --------------------------------------------------------------------

                     *SEE INSTRUCTION BEFORE FILLING OUT!


<PAGE>



- ----------------------                              ---------------------------
CUSIP No. 883384 10 9                    13G        Page  3  of  9  Pages
          ------------                                   ----   ---
- ----------------------                              ---------------------------

- ---------- --------------------------------------------------------------------
        1  NAME OF REPORTING PERSON
           S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON

           Warburg, Pincus & Co.               I.D.# 13-6358475
- ---------- --------------------------------------------------------------------
        2  CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
                                                                 (a) [ ]

                                                                 (b) [X]
- ---------- --------------------------------------------------------------------
        3  SEC USE ONLY
- ---------- --------------------------------------------------------------------
        4  CITIZENSHIP OR PLACE OF ORGANIZATION

           New York
- -------------------- ------ ---------------------------------------------------
                         5  SOLE VOTING POWER

                            -0-
                     ------ ---------------------------------------------------
     NUMBER OF           6  SHARED VOTING POWER
      SHARES
   BENEFICIALLY             -0-
     OWNED BY
                     ------ ---------------------------------------------------
       EACH              7  SOLE DISPOSITIVE POWER
     REPORTING
      PERSON                -0-
       WITH
                     ------ ---------------------------------------------------
                         8  SHARED DISPOSITIVE POWER

                            -0-
- ---------- --------------------------------------------------------------------
        9  AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

           -0-
- ---------- --------------------------------------------------------------------
       10  CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN
           SHARES*
- ---------- --------------------------------------------------------------------
       11  PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9

           0.0%
- ---------- --------------------------------------------------------------------
       12  TYPE OF REPORTING PERSON*

           PN
- ---------- --------------------------------------------------------------------
                     *SEE INSTRUCTION BEFORE FILLING OUT!


<PAGE>



- ----------------------                                     --------------------
CUSIP No. 883384 10 9                     13G              Page  4  of  9 Pages
          ------------                                          ----   ---
- ----------------------                                     --------------------

- ---------- --------------------------------------------------------------------
        1  NAME OF REPORTING PERSON
           S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON

           E.M. Warburg, Pincus & Co., LLC             I.D.# 13-3536050
- ---------- --------------------------------------------------------------------
        2  CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
                                                                     (a) [ ]

                                                                     (b) [X]
- ---------- --------------------------------------------------------------------
        3  SEC USE ONLY
- ----------
- ---------- --------------------------------------------------------------------
        4  CITIZENSHIP OR PLACE OF ORGANIZATION

           New York
- -------------------- ------ ---------------------------------------------------
                         5  SOLE VOTING POWER

                            -0-
                     ------ ---------------------------------------------------
     NUMBER OF           6  SHARED VOTING POWER
      SHARES
   BENEFICIALLY             -0-
     OWNED BY
                     ------ ---------------------------------------------------
       EACH              7  SOLE DISPOSITIVE POWER
     REPORTING
      PERSON                -0-
       WITH
                     ------ ---------------------------------------------------
                         8  SHARED DISPOSITIVE POWER

                            -0-
- ---------- --------------------------------------------------------------------
        9  AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

           -0-
- ---------- --------------------------------------------------------------------
       10  CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN
           SHARES*
- ---------- --------------------------------------------------------------------
       11  PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9

           0.0%
- ---------- --------------------------------------------------------------------
       12  TYPE OF REPORTING PERSON*

           OO
- ---------- --------------------------------------------------------------------

                     *SEE INSTRUCTION BEFORE FILLING OUT!


<PAGE>


Item 1(a).                         Name of Issuer:

                                   TheraTx, Incorporated (the "Issuer")

Item 1(b).                         Address of Issuer's Principal Executive
                                   Offices:

                                   1105 Sanctuary Parkway
                                   Suite 100
                                   Alpharetta, Georgia 30201

Items 2(a)                         Name of Person Filing; Address of Principal
and (b).                           Business Office:

                                   This  statement  is filed by and on behalf of
                                   (a)  Warburg,   Pincus  Investors,   L.P.,  a
                                   Delaware  limited  partnership  ("WPI");  (b)
                                   Warburg,  Pincus & Co.,  a New  York  general
                                   partnership  ("WP");  and (c)  E.M.  Warburg,
                                   Pincus  &  Co.,   LLC,  a  New  York  limited
                                   liability company ("EMW LLC"),  which manages
                                   WPI. WP, as the sole general  partner of WPI,
                                   has a 20%  interest  in the  profits  of WPI.
                                   Lionel I. Pincus is the  managing  partner of
                                   WP and the managing member of EMW LLC and may
                                   be deemed to control both WP and EMW LLC. The
                                   members of EMW LLC are substantially the same
                                   as the partners of WP. The  business  address
                                   of each  of the  foregoing  is 466  Lexington
                                   Avenue, New York, New York 10017.

Item 2(c).                         Citizenship:

                                   Not Applicable

Item 2(d).                         Title of Class of Securities:

                                   Common Stock, par value $0.001 per share
                                   (the "Common Stock")

Item 2(e).                         CUSIP Number:

                                   883384 10 9

Item 3.                            Not Applicable

Item 4.                            Ownership:

                                   Not applicable.


<PAGE>





Item 5.                            Ownership of Five Percent or Less of a Class:

                                   If this statement is being filed to report
                                   the fact that as of the date hereof the
                                   reporting person has ceased to be the
                                   beneficial owner of more than five percent
                                   of the class of securities, check the
                                   following [ X ]

Item 6.                            Ownership of More than Five Percent on
                                   Behalf of Another Person:

                                   Not Applicable

Item 7.                            Identification and Classification of the
                                   Subsidiary Which Acquired the Security Being
                                   Reported on By the Parent Holding Company:

                                   Not Applicable

Item 8.                            Identification and Classification of
                                   Members of the Group:

                                   Not Applicable

Item 9.                            Notice of Dissolution of Group:

                                   Not Applicable

Item 10.                           Certification:

                                   Not Applicable


<PAGE>

                                    SIGNATURE

         After reasonable  inquiry and to the best of my knowledge and belief, I
certify that the information  set forth in this statement is true,  complete and
correct.

Dated:  March 10, 1997


                         WARBURG, PINCUS INVESTORS, L.P.

                         By:      Warburg, Pincus & Co., General Partner


                         By:      /s/ Stephen Distler
                                  Stephen Distler, Partner



                         WARBURG, PINCUS & CO.


                         By:      /s/ Stephen Distler
                                  Stephen Distler, Partner



                         E.M. WARBURG, PINCUS & CO., LLC


                         By:      /s/ Stephen Distler
                                  Stephen Distler, Member






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