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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: September 27, 1994
CORAM HEALTHCARE CORPORATION
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(Exact name of registrant as specified in charter)
Delaware 1-11343 33-0615337
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
4675 MacArthur Court, Suite 1250 Newport Beach, California 92660
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(Address of principal executive offices) (Zip Code)
(714) 955-8776
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(Registrant's telephone number including area code)
not applicable
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(Former name or former address, if changed since last report.)
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ITEM 5. OTHER EVENTS.
On September 26, 1994, Coram Healthcare Corporation,
a Delaware corporation (the "Registrant"), issued a press release
announcing the settlement of the investigation conducted by the Office
of the Inspector General of the U.S. Department of Health and Human
Services, through the office of the U.S. Attorney for the Northern
District of Georgia, of T2 Medical, Inc.'s financial arrangements with
physicians. A copy of such press release is attached hereto as
Exhibit 99 and is incorporated herein by reference.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS.
(a) Financial statements of businesses acquired.
Inapplicable.
(b) Pro forma financial information (unaudited).
Inapplicable.
(c) Exhibits.
99 Press Release dated September 26, 1994, announcing
the settlement of the investigation conducted by the
Office of the Inspector General of the U.S.
Department of Health and Human Services, through the
office of the U.S. Attorney for the Northern District
of Georgia, of T2 Medical, Inc.'s financial
arrangements with physicians.
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SIGNATURES
Pursuant to the requirements 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.
Date: September 27, 1994
CORAM HEALTHCARE CORPORATION
By: /s/ James M. Sweeney
------------------------------------
James M. Sweeney,
Chairman and Chief Executive Officer
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EXHIBIT INDEX
<TABLE>
<CAPTION>
Exhibit
No. Document Description Sequentially Numbered Page
- - ------- -------------------- --------------------------
<S> <C> <C>
99 Press Release dated September 26, 1994, 5
announcing the settlement of the investigation
conducted by the Office of the Inspector General
of the U.S. Department of Health and Human
Services, through the office of the U.S. Attorney
for the Northern District of Georgia, of T2 Medical,
Inc.'s financial arrangements with physicians.
</TABLE>
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EXHIBIT 99
TO CURRENT REPORT ON
FORM 8-K
CORAM HEALTHCARE CORPORATION ANNOUNCES SETTLEMENT
OF OIG INVESTIGATION OF T2 MEDICAL, INC.
NEWPORT BEACH, Calif. -- (BUSINESS WIRE) -- Sept. 26, 1994 -- Coram
Healthcare Corp. (NYSE: CRH), announced that its T2 Medical, Inc. subsidiary is
settling the two-year investigation conducted by the Office of Inspector
General (OIG) of the U.S. Department of Health and Human Services, through the
office of the U.S. Attorney for the Northern District of Georgia, of T2
Medical's financial arrangements with physicians.
T2 Medical, in expressly denying liability, will agree to a civil
order which enjoins it from violating federal anti-kickback and false claims
laws related to Medicare/Medicaid reimbursement. The order further requires T2
Medical to comply with certain standards when providing management or other
services to physicians.
Under the terms of the settlement, T2 Medical will pay the federal
government $500,000 to reimburse the government for the costs of its
investigation and settle its claims. T2 Medical will continue to participate
in the Medicare/Medicaid program. The settlement is subject to court approval.
Commenting on the settlement, James M. Sweeney, Coram's chairman and
chief executive officer, said: "We are extremely pleased that we were able to
enter into this type of settlement and put the OIG investigation behind us. We
sought resolution to avoid the burden and expense of litigation and to
eliminate any taint which the investigation may have put on our efforts to
become the industry leader in the delivery of alternate site healthcare. The
settlement will not affect the way we plan to do business in the future."
Coram was formed as a result of what is believed to be the first
four-way public company merger in history. The merger, completed on July 8,
1994, united T2 Medical, Curaflex Health Services, Medisys Inc., and
HealthInfusion Inc. Coram Healthcare Corp. provides a wide range of alternate
site healthcare delivery services including ambulatory and infusion therapies,
lithotripsy, and institutional pharmacy services.
CONTACT: Paine & Associates, Costa Mesa, Calif.
Erin Peacock or David Paine, 714/755-0400
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