UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1996
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 For the transition period from _____ to _____
Commission file number 33-84692C
CARE FIRST INC.
(Exact name of registrant as specified in its charter)
Minnesota 41-0877001
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
3720 23rd Ave So
Minneapolis, MN 55407
(Address of principal executive offices) (Zip Code)
(612) 724-5495
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934
during the preceding 12 months (or for such shorter period that the registrant
was required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days: YES _X_ NO ____
At May 10, 1996, 10,500 shares of Common Stock were outstanding.
-----------------------------------
This Form 10-Q consists of 16 pages. Exhibits begin on page 15.
CARE FIRST INC.
FORM 10-QSB
QUARTER ENDED MARCH 31, 1996
INDEX
PART I - FINANCIAL INFORMATION PAGE
Item 1. Condensed Financial Statements and Notes . . . . . . 3
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations . . . . . . . . . 9
PART II - OTHER INFORMATION
Item 1. Legal Proceedings . . . . . . . . . . . . . . . . . . 12
Item 2. Changes in Securities . . . . . . . . . . . . . . . . 12
Item 3. Defaults Upon Senior Securities . . . . . . . . . . . 12
Item 4. Submission of Matters to a Vote of Security Holders . 12
Item 5. Other information . . . . . . . . . . . . . . . . . . 12
Item 6. Exhibits and Reports on Form 8-K . . . . . . . . . . . 13
SIGNATURES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
EXHIBITS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
CARE FIRST INC.
NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
March 31, 1996
NOTE A - BASIS OF PRESENTATION
The accompanying unaudited condensed financial statements have been
prepared in accordance with generally accepted accounting principles for interim
financial information and with the instructions to Form 10-QSB. Accordingly,
they do not include all of the information and footnotes required by generally
accepted accounting principles for complete financial statements. In the opinion
of management, all adjustments (consisting of normal recurring accruals)
considered necessary for a fair presentation have been included. For further
information, refer to the financial statements and footnotes thereto included in
the Company's annual report for the fiscal year ended September 30, 1995.
NOTE B - COMMON STOCK
Authorized and outstanding common stock shares are as follows at
September 30, 1995:
Class A Class B Unclassified Total
Shares of Stock Authorized 500 10,000 4,500 15,000
Shares of Stock Outstanding 500 10,000 0 10,500
Par Value per Share $0.01 $0.01 $0.01 N/A
Voting Rights Yes No No N/A
NOTE C - OPERATIONS
The Corporation owns and operates the following:
Description Address Operation
Nile Health Care Center 3720 23rd Ave South (1) 256-Bed Nursing
Minneapolis MN Care Facility
Cedar Pines Health 2739 Cedar Ave South (1)
Care Facility Minneapolis MN
Care First Home 3720 23rd Ave South Home Health Services
Health Services Minneapolis MN
(1) November 30, 1995, the Nile Health Care Center substantially completed its
building project. As of December, 1995, Nile Health Care Center became a 256-bed
licensed nursing care facility. The Existing facility had been a 125-bed
licensed nursing care facility. The Cedar Pines Health Care Facility had been a
75-bed licensed nursing care facility prior to the building project completion.
As discussed in the Corporation's annual report on Form 10KSB for the fiscal
year ended September 30, 1995, the Cedar Pines Health Care Facility building is
for sale.
NOTE D - SERIES 1994 BONDS
In December 1994, the City of Minneapolis issued $4,725,000 of Health
Care Facilities Refunding Revenue Bonds (Care First Inc. Project) and $8,500,000
of Taxable Health Care Facilities Revenue Bonds (Care First Inc. Project) to
refund the Series 1983 Tax Exempt Bonds and to finance construction and
equipping of a 131-bed Addition to the Corporation's 125-bed Existing Facility.
The Series 1983 Tax Exempt Bonds were not refunded until January 11, 1995. The
proceeds from the Series 1994 Tax Exempt Bonds were deposited with the trustee
in the Bond Fund until the refunding occurred. The proceeds from the Taxable
Health Care Facilities Revenue Bonds remain in Trustee Held Funds until
certified draw requests are processed for construction costs, including building
construction, equipment installation, capitalized interest and other Project
costs.
CARE FIRST INC.
CONDENSED BALANCE SHEETS
March 31 September 30,
1996 1995
(Unaudited)
ASSETS
CURRENT ASSETS
Cash $ 486,861 $ 704,833
Accounts Receivable-Residents 1,094,186 715,559
Current Assets Whose Use is Limited 564,323 997,916
Note Receivable - Stockholders 16,736 25,402
Deferred Tax Asset 110,000 110,000
Other Current Assets 116,451 46,299
------------ ------------
Total Current Assets $ 2,388,556 $ 2,600,009
------------ ------------
ASSETS WHOSE USE IS LIMITED $ 1,376,592 $ 3,035,043
------------ ------------
PROPERTY AND EQUIPMENT at Cost Less Accumulated
Depreciation of $3,298,794 at March 31, 1996 and
$3,157,514 at September 30, 1995 $ 10,545,898 $ 4,000,308
------------ ------------
OTHER ASSETS
Construction in Progress $ -- $ 4,831,934
Unamortized Financing Costs 1,095,296 1,146,176
Other Assets 12,442 14,932
------------ ------------
Total Other Assets $ 1,107,738 $ 5,993,042
------------ ------------
Total Assets $ 15,418,785 $ 15,628,402
============ ============
LIABILITIES AND STOCKHOLDERS' (DEFICIT)
CURRENT LIABILITIES
Current Maturites of Long Term Debt $ 146,120 $ 294,099
Accounts Payable 80,088 121,735
Accounts Payable - Other 421,383 512,723
Accrued Salaries and Benefits 517,888 146,120
Other Accrued Expenses 949,493 1,005,629
------------ ------------
Total Current Liabilities $ 2,114,973 $ 2,080,306
------------ ------------
LONG-TERM DEBT (Net of Current
Maturities Shown Above) $ 13,296,973 $ 13,367,185
OTHER LIABILITIES 228,472 355,500
------------ ------------
Total Liabilities $ 15,640,418 $ 15,802,991
------------ ------------
STOCKHOLDERS' (DEFICIT)
Common Stock $ 17,765 $ 17,765
Retained (Deficit) (239,398) (192,354)
------------ ------------
Total Stockholders' (Deficit) $ (221,633) $ (174,589)
------------ ------------
Total Liabilities and Stockholders' (Deficit) $ 15,418,785 $ 15,628,402
============ ============
CARE FIRST INC.
CONDENSED STATEMENTS OF OPERATIONS AND RETAINED (DEFICIT)
For the Three Months Ended For the Six Months Ended
March 31 March 31
-------------------------- --------------------------
1996 1995 1996 1995
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
REVENUES
Resident Services $ 2,430,642 $ 2,086,598 $ 4,423,283 $ 4,265,055
Home Health Services (25,665) 76,201 (25,665) 149,058
----------- ----------- ----------- -----------
Total Revenue $ 2,404,977 $ 2,162,799 $ 4,397,618 $ 4,414,113
----------- ----------- ----------- -----------
OPERATING EXPENSES
Resident Services $ 1,961,404 $ 1,802,584 $ 3,842,890 $ 3,761,753
Home Health Services 1,990 60,532 2,386 160,123
----------- ----------- ----------- -----------
Total Operating Expenses $ 1,963,394 $ 1,863,116 $ 3,845,276 $ 3,921,876
----------- ----------- ----------- -----------
INCOME FROM OPERATIONS BEFORE
DEPRECIATION, AMORTIZATION AND INTEREST $ 441,583 $ 299,683 $ 552,342 $ 492,237
DEPRECIATION AND AMORTIZATION 68,657 59,861 141,280 110,132
INTEREST 367,679 99,864 518,447 243,388
----------- ----------- ----------- -----------
INCOME (LOSS) FROM OPERATIONS $ 5,247 $ 139,958 $ (107,385) $ 138,717
OTHER INCOME (4,209) 35,504 28,982 72,677
----------- ----------- ----------- -----------
INCOME (LOSS) BEFORE INCOME TAXES $ 1,038 $ 175,462 $ (78,403) $ 211,394
PROVISION FOR INCOME TAXES 416 70,185 (31,361) 84,558
----------- ----------- ----------- -----------
INCOME (LOSS) BEFORE EXTRAORDINARY LOSS $ 622 $ 105,277 $ (47,042) $ 126,836
EXTRAORDINARY LOSS - LOSS ON
REFUNDING OF BONDS -- (172,925) -- (172,925)
----------- ----------- ----------- -----------
NET INCOME (LOSS) $ 622 $ (67,648) $ (47,043) $ (46,089)
Retained Deficit - Beginning (240,019) (232,338) (192,354) (253,897)
=========== =========== =========== ===========
RETAINED DEFICIT - ENDING $ (239,397) $ (299,986) $ (239,397) $ (299,986)
=========== =========== =========== ===========
CARE FIRST INC.
STATEMENTS OF CASH FLOWS
For the Six Months Ended
March 31
---------------------------
1996 1995
(Unaudited) (Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES
Cash Received from Resident Services $ 4,018,991 $ 4,414,033
Cash Paid to Suppliers and Employees (3,929,339) (3,992,278)
Interest Paid (17,856) (169,330)
Interest Received 36,422 50,598
Income Tax Refunds Received (2,800) (3,308)
----------- -----------
Net Cash Provided by Operating Activities $ 105,418 $ 299,715
----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of Property and Equipment $ (78,280) $ (13,451)
Decrease in Note Receivable - Stockholders 8,666 --
Decrease in Development Costs -- 114,799
Disbursements from Trustee Held Funds -- 177,390
Deposits to Bond Fund (243,563) (257,151)
----------- -----------
Net Cash Provided (Used) by Investing Activities $ (313,177) $ 21,587
----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES
Principal Payments on Long-Term Debt $ (10,213) $ (15,332)
Payment of Note Payable -- (100,000)
----------- -----------
Net Cash (Used) by Financing Activities $ (10,213) $ (115,332)
----------- -----------
NET INCREASE (DECREASE) IN CASH $ (217,972) $ 205,970
Cash - Beginning 704,833 432,802
=========== ===========
CASH - ENDING $ 486,861 $ 638,772
=========== ===========
RECONCILIATION OF NET INCOME TO NET CASH
PROVIDED BY OPERATING ACTIVITIES
Net Income (Loss) $ (47,043) $ (46,089)
Depreciation and Amortization 141,280 110,132
Extraordinary Loss on Refunding -- 172,925
(Increase) Decrease in Current Assets:
Accounts Receivable - Residents (378,627) (100)
Other Current Assets (67,662) 144,242
Increase (Decrease) in Current Liabilities:
Accounts Payable (41,647) (119,306)
Other Current Liabilities 499,116 37,911
=========== ===========
Net Cash Provided by Operating Activities $ 105,418 $ 299,715
=========== ===========
CARE FIRST INC.
STATEMENTS OF CASH FLOWS (CONTINUED)
For the Six Months Ended
31-Mar
--------------------------
1996 1995
(Unaudited) (Unaudited)
Proceeds from Bonds Payable $ -- $13,225,000
=========== ===========
Deposits to Trustee/Held Funds $ 95,002 $ 8,194,512
=========== ===========
Transfers from Trustee Held Funds for
Property and Equipment Acquisition and Financing Costs $ 1,674,763 $ 1,017,780
Payment of Bond Principal and Interest 741,664 4,725,000
----------- -----------
Total $ 2,416,427 $ 5,742,780
=========== ===========
Increase (Decrease) in Construction Costs Payable $ -- $ 534,484
=========== ===========
Transfer of Construction in Progress to Property
and Equipment $ 4,831,934 $ --
=========== ===========
MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL
CONDITION
Following is the analysis of the results of operations and financial condition
of the Corporation as of March 31, 1996 and September 30, 1995 and for the three
months ended March 31, 1996 and 1995 and the six months ended March 31, 1996 and
1995.
RELOCATION TO EXPANDED FACILITY OF CEDAR PINES FACILITY BEDS
The Cedar Pines Facility has become costly to operate and of
diminishing attractiveness to new residents because of location, obsolescence
and building design limitations. In the mid-1980's, the Corporation commenced
preparations to terminate operations at the Cedar Pines Facility and to relocate
its beds to a new addition to be built attached to the Nile Health Care Center
(The Addition).
These preparations have been costly. They include an application,
granted in 1989, for an exception to the moratorium which prohibits licensing
and certification of beds in new, relocated or remodeled facilities; subsequent
lobbying activities to obtain extensions of the exception; the acquisition
(which also included the demolition of vacant businesses on nearby properties
owned by the Corporation to reduce insurance and property tax expenses); and
certain survey, construction planning and architectural planning work.
In December 1994, the general contractor began constructing the new addition
and obtained substantial completion in November 1995.
DEPENDENCE ON MINNESOTA MEDICAID PROGRAM
Substantially all revenues of the Corporation are derived from daily
resident rates established by the Department of Human Services (DHS) for its
nursing facility pursuant to the Rate-setting System. Changes in the
Rate-setting System may be anticipated and the effects of such changes on the
Corporation cannot be predicted. For instance, in 1995, the State of Minnesota,
by statute, authorized the DHS to establish a contractual alternative payment
system, called the "Nursing Home Contract Project". (See Other Information)
Comparison of the three months ended March 31, 1996 to the three months ended
March 31, 1995 and the six months ended March 31, 1996 to the six months ended
March 31, 1995.
For the unaudited second quarter of 1996, the three months ended March
31, 1996, the Corporation's net income before extraordinary loss on refunding of
debt was $622 in comparison with $105,277 for the same period in 1995 and for
the six months ended March 31, 1996, the net (loss) before extraordinary loss on
refunding of debt was $47,042 in comparison with income of $126,836 for the same
period in 1995. The 1996 loss may be attributed to the decreased census at the
Cedar Pines Health Care Facility from 4,502 for the period October 1, 1994 -
December 5, 1994 to 3,249 for the period October 1, 1995 - December 5, 1995 or
1,253 days. December 5, 1995, Nile Health Care Center went from 125-beds to
256-beds in December. As forecasted, the Nile is expected to "fill-up" to 97%
occupancy over the course of 12 months. At March 31, 1996, the 256-bed facility
was operating at 72% occupancy.
Revenue increased by $242,178 or 10%, from $2,162,799 for the three
months ended March 31, 1995, to $2,404,977 for the three months ended March 31,
1996 and decreased by $16,495 from $4,414,113 for the six months ended March 31,
1995 to $4,397,618 for the six months ended March 31, 1996. Resident services
revenue increased by $344,044 or 14 %, from $2,086,598 for the three months
ended March 31, 1995 to $2,430,642 for the three months ended March 31, 1996 and
increased $158,228 or 4%, from $4,265,055 for the six months ended March 31,
1995 to $4,423,283 for the six months ended March 31, 1996. The increase in
revenue is a blend of increased rates and the lower census at Cedar Pines Health
Care Facility. The daily room rate at the Nile Health Care Center increased 6%
December 1, 1995 (Project completion date). In addition, the Nile Health Care
Center's daily room rate is approximately $10 per day or 8% higher than the
Cedar Pines Facility. Thus, the revenue for the period December 6, 1995-March
31, 1996 is at the increased Nile Health Care Center daily rate compared to a
blend of the Nile Health Facility rate and the lower Cedar Pines Facility rate
for the comparative period in 1995. In March 1996, a $(25,665) medicare
settlement for Home Health Services for the period ended September 30, 1995 was
recorded. As of July 1995, the Corporation suspended the operations of the Home
Health Services until it is determined that Home Health Services will be
profitable.
Operating expenses, which include salaries and benefits, supplies,
utilities, food, purchased services, and general and administrative expenses,
increased $100,278 or 5% from $1,863,116 for the three months ended March 31,
1995 to $1,963,394 for the three months ended March 31, 1996 and decreased
$76,600 or 2% from $3,921,876 for the six months ended March 31, 1995 to
$3,845,276 for the six months ended March 31, 1996. Resident services operating
expenses increased $158,820 or 8% from $1,802,584 for the three months ended
March 31, 1995 to $1,961,404 for the three months ended March 31, 1996 and
increased $81,137 or 2%, from $3,761,753 for the six months ended March 31,
1995 to $3,842,890 for the six months ended March 31, 1996. The net increase
(decrease) is a blend of the suspended Home Health operations, the increase in
physical plant of Nile Health Care Center from 125 beds to 256 beds and the
reduced census at the Cedar Pines Facility.
Depreciation, amortization and interest expense, increased $276,611 or
63% from $159,725 for the three months ended March 31, 1995 to $436,336 for the
three months ended March 31, 1996 and increased $306,257 or 46% from $353,470
for the six months ended March 31, 1995 to $659,727 for the six months ended
March 31, 1996. The increase is a result of the net effect of the Series 1983
bonds, which bore interest ranging from 10.25% to 11.75% being refunded with the
Series 1994 bonds which bear interest from 5% to 7.75%, the 1994 Taxable Bonds
interest expense not being capitalized as of December 1, 1995 (Project
completion) and the Project costs being depreciated since the new facility is
open.
For the three and six month periods ended March 31, 1995, the
extraordinary loss on refunding of the Series 1983 Bonds is the sum of the
unamortized financing costs on the Series 1983 Bonds of $240,958 and the
prepayment penalty of $47,250, net of an effective income tax rate of 40%.
The Corporation's estimated income tax expense for the three months
ended March 31, 1995 was $70,185 based on a pretax income of $175,463 and for
the three months ended March 31, 1996, estimated income tax expense was $416
based on a pretax income of $622, resulting in an effective income tax rate of
40%. For the six months ended March 31, 1995, estimated income tax expense is
$84,558 based upon a pretax income of $211,394 and for the six months ended
March 31, 1996, estimated income taxes recoverable were $31,361 based upon a
pretax loss of $78,403; resulting in an effective income tax rate of 40%.
LIQUIDITY AND CAPITAL RESOURCES
The Corporation does not maintain any line of credit or other external
sources of liquidity.
At March 31, 1996, the Corporation had $486,861 in cash, and working
capital of $273,583 based upon current assets of $2,388,556 and current
liabilities of $2,114,973 and at September 30, 1995, the Corporation had
$704,833 in cash, and working capital of $519,703 based upon current assets of
$2,600,009 and current liabilities of $2,080,306. During the six months ended
March 31, 1996, net cash decreased $217,972. Net cash provided by operating
activities was $105,418 for the six months ended March 31, 1996.
Construction costs (previously referred to as development costs
payable) and Accounts Payable have decreased $260,015 from September 30, 1995 to
December 31, 1995, mainly as a result of the project being substantially
completed and equipment installed.
As of March 31, 1996, total outstanding Long-Term Debt of the
Corporation equaled $13,443,093 consisting of the Series 1994 Taxable Health
Care Facilities Revenue Bonds and the Series 1994 Health Care Facility Refunding
Revenue Bonds, both of which are secured equally and ratably on parity by a
mortgage lien on, security interest in and an assignment of leases and rents of
the Addition and the Nugent, Note, secured by a subordinated mortgage lien on
the Cedar Pines Facility.
Unamortized Financing Costs consist of financing costs associated with
the issuance of the City of Minneapolis, Minnesota Taxable Health Care
Facilities Revenue Bonds and the City of Minneapolis, Minnesota HealthCare
Facilities Refunding Revenue Bonds.
Assets Whose Use is Limited decreased a net $2,092,044 from $4,032,959
at September 30, 1995 to $1,940,915 at March 31, 1996 as a result of $1,674,763
of construction draws of the Project and payments of bond principal and interest
of $741,664 net with interest earnings and deposits to the Bond Funds. The net
proceeds of the 1995 Taxable Health Care Facilities Bonds are being held by the
trustee in accounts whose use is limited until they are expended for their
designated purposes.
The Corporation intends to use the net proceeds of the 1994 Taxable
Health Care Facilities Bonds, together with $750,000 of other assets, to fund
approximately $5,400,000 of construction costs and approximately $3,850,000 of
equipment costs, other costs of the project, related reserve funds, and
financing costs. To enhance liquidity and cashflow, proceeds from the Bonds were
available to pay interest on the Bonds for approximately 2.5 months following
the completion of the Addition. The Corporation has not entered into any
material agreements or commitments with respect to acquisitions or development
except the construction and architect contracts. Purchase orders for equipment
financed with proceeds of the Bonds were entered in to near the completion of
the Addition. The Department of Health, the City of Minneapolis, and the Fire
Marshall approved the Addition for occupancy November 30, 1995.
The Corporation believes the proceeds from the offering of the Bonds,
together with existing capital resources and cash flow from its existing
operations, will be sufficient to make the indebtedness repayments, to make
capital additions, and improvements, to complete the project described herein,
and to meet other working capital needs for the next twelve months.
IMPACT OF INFLATION
The health care industry is labor intensive. Wages and other expenses
increase more rapidly during periods of inflation and when shortages in the
labor market occur. In addition, suppliers pass along rising costs in the form
of higher prices. Increases in daily rates under the Rate-setting System
generally lag behind actual cost increases, so the Corporation may have
difficulty covering them in a timely fashion, despite an inflation factor in the
rate-setting process. This is due to the lag between "reporting" period (when
costs are incurred) and the rate year when their costs are actually reflected in
daily rates paid to the Corporation for services provided.
Recently Issued Accounting Standards
The Financial Accounting Standards Board (FASB) Statement No. 106, "Employers
Accounting for Post Retirement Benefits Other Than Pensions", became effective
for the Corporation in 1995. Statement No. 106 had insignificant impact on the
Corporation's financial position or results of operations as the Corporation
currently does not provide post retirement benefits.
The Corporation currently does not provide its employees with significant
post-employment benefits. Accordingly, FASB issued Statement No. 112 "Employers'
Accounting for Post-Employment Benefits" will not significantly impact the
Corporation.
FASB issued Statement No. 115, "Accounting for Certain Investments in Debt and
Equity Securities" amends ARB No. 43, supersedes SFAS No. 12, and establishes
accounting standards for both marketable equity and debt securities. SFAS NO.
115, which became effective in 1995 did not have a material effect on the
Corporation.
In March 1995, the FASB issued Statement No. 121, "Accounting for Impairment of
Long-Lived Assets and for Long-Lived Assets to be Disposed of. SFAS No. 121 will
be effective for the Corporation with the fiscal year beginning October 1, 1996.
The effects of SFAS No. 121 on this Corporation have not yet been determined,
but are expected to be insignificant.
PART II: OTHER INFORMATION
Item 1. LEGAL PROCEEDINGS
None
Item 2. CHANGES IN SECURITIES
None
Item 3. DEFAULTS UPON SENIOR SECURITIES
None
Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None
Item 5. OTHER INFORMATION
"NURSING HOME CONTRACT PROJECT"
On December 15, 1995, the Corporation received notification
that they were approved to participate in the State of
Minnesota contractual alternative payment system, called the
"Nursing Home Contract Project". The purpose of the Project is
to explore a contract-based reimbursement. The Minnesota
Department of Human Services is in the process of negotiating
with the limited number of facilities which were approved to
participate in the Project. Approved facilities will be paid
their reimbursement rates in effect July 1, 1995 with an
annual inflationary adjustment. This project will impact
Medicaid and private pay reimbursement rates effective July 1,
1996.
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
None
SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
CARE FIRST INC.
Dated: May 10, 1996 By ____________________________
Jack E. Nugent, President and Chief
Financial Officer
EXHIBIT INDEX
Exhibit 27 Financial Data Schedule Page 16