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 (Date of earliest event reported): July 10, 1996
COMMUNITY CARE OF AMERICA, INC.
(Exact name of registrant as specified in its charter)
Delaware 0-26502 52-1823411
(State or other (Commission (IRS Employer
jurisdiction of file number) Identification No.)
incorporation)
3050 North Horseshoe Drive, Suite 260, Naples, Florida 34104
(Address of principal executive offices)
Registrant's telephone number including area code: (941) 435-0085
Not Applicable
(Former name or former address, if changed since last report)
Item 5. Other Events
The Company will terminate its management agreements with the Sandy River
facilities in the state of Maine effective in August 1996. In connection with
the termination, the Company will take a pre-tax charge to earnings of
$6,900,000 in the quarter ended June 30, 1996 to write off of its Purchase
Option Deposit, write off uncollected management fees through March 31, 1996
and accrue anticipated costs to be incurred in transitioning the management of
the facilities back to their owners. Additionally, the Company will not
include any management fee income in the quarter ended June 30, 1996.
The Company has completed the required analyses in connection with the
adoption of Statement of Financial Accounting Standard No. 121, Accounting
for the Impairment of Long-Lived Assets and for Long-Lived Assets to be
Disposed of ("SFAS No. 121") which is effective January 1, 1996, as
previously reported. In connection with the adoption of SFAS No. 121, the
Company will record a pre-tax charge to earnings of $4,363,000 in the quarter
ended June 30, 1996.
The Company has decided to restructure or close certain existing physician
practices, primary care clinics and adult day care centers. To accrue for the
restructuring and exit costs of closing the effected facilities, the Company
will record a pre-tax charge to earnings of $5,930,000 in the quarter ended
June 30,1996.
The Company's Council Bluffs North, Iowa facility has been resurveyed and
found to be deficiency-free. The facility has been recertified to participate
in both the Medicaid and Medicare programs.
The Company's acquisition of three hospitals and a skilled nursing facility in
South Georgia from Memorial Health Services, Inc. has been delayed due to
certain licensure matters and is now expected to close by August 1, 1996.
SIGNATURE
Pursuant to the requirements of Securities Exchange Act of 1934, the registrant
has duly caused this report to be signed on its behalf by the undersigned
thereunto duly authorized.
COMMUNITY CARE OF AMERICA, INC.
Date: July 12, 1996 By: /s/ David H. Fater
David H. Fater
Executive Vice President and
Chief Financial Officer
