HORIZON/CMS HEALTHCARE CORPORATION
                        6001 INDIAN SCHOOL ROAD, NE
                           ALBUQUERQUE, NM 87110

                COMPANY NAME                       ADDRESS
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Eagle Rehab Corporation                       6001 Indian School Road, NE
     (Delaware)                               Albuquerque, NM 87110      
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Horizon Facilities Management, Inc.           6001 Indian School Road, NE
     (Delaware)                               Albuquerque, NM 87110      
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LTC Medical Laboratories, Inc.                6001 Indian School Road, NE
      (Delaware)                              Albuquerque, NM 87110      
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Horizon MDS Corporation                       6001 Indian School Road, NE
     (Delaware)                               Albuquerque, NM 87110      
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Advanced Clinical Technologies, Inc.          6001 Indian School Road, NE
     (Arizona)                                Albuquerque, NM 87110      
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Horizon Medical Specialties, Inc.             6001 Indian School Road, NE
     (Delaware)                               Albuquerque, NM 87110      
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National Institutional Pharmacy               6001 Indian School Road, NE
Services, Inc.                                Albuquerque, NM 87110      
     (Delaware)
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Horizon Assisted Living Services, Inc.        6001 Indian School Road, NE
     (Delaware)                               Albuquerque, NM 87110      
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Horizon Sleep Diagnostic Corporation          6001 Indian School Road, NE
     (Delaware)                               Albuquerque, NM 87110      
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Horizon Holding, Inc.                         6001 Indian School Road, NE
     (Delaware)                               Albuquerque, NM 87110      
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HHC Nursing Facilities, Inc.                  6001 Indian School Road, NE
     (Delaware)                               Albuquerque, NM 87110      
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Greenery Securities Corp.                     6001 Indian School Road, NE
     (Delaware)                               Albuquerque, NM 87110      
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HHC Acquisition Corp.                         6001 Indian School Road, NE
     (Delaware)                               Albuquerque, NM 87110      
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Midwest Regional Rehab Center, Inc.           6001 Indian School Road, NE
     (Delaware)                               Albuquerque, NM 87110      
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Horizon Hospice Care, Inc.                    6001 Indian School Road, NE
     (Delaware)                               Albuquerque, NM 87110      
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Active Rehab Mgmt of Occupational Therapy     6001 Indian School Road, NE
     (Illinois)                               Albuquerque, NM 87110      
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                                                                            1


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Physicians Hosp. For Extended Care            6001 Indian School Road, NE
     (Nevada)                                 Albuquerque, NM 87110      
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Vegas Valley Conv. Center, Inc.               6001 Indian School Road, NE
     (Nevada)                                 Albuquerque, NM 87110      
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San Jacinto Mgmt. Company                     6001 Indian School Road, NE
     (Texas)                                  Albuquerque, NM 87110      
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Intra-City Enterprises, Inc.                  6001 Indian School Road, NE
     (Ohio)                                   Albuquerque, NM 87110      
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UROcare of America, Inc.                      6001 Indian School Road, NE
     (Delaware)                               Albuquerque, NM 87110      
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Royal Oaks Partnership                        6001 Indian School Road, NE
     (Florida)                                Albuquerque, NM 87110      
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Horizon Health Systems, L.P.                  6001 Indian School Road, NE
     (Delaware)                               Albuquerque, NM 87110      
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Continental Medical Systems, Inc.             600 Wilson Lane        
     (Delaware)                               Mechanicsburg, PA 17055
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Wilson Lane Holdings, Inc.                    600 Wilson Lane        
     (Delaware)                               Mechanicsburg, PA 17055
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Horizon Therapy Holdings, Inc.                600 Wilson Lane        
     (Delaware)                               Mechanicsburg, PA 17055
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Horizon FM L.P.                               6001 Indian School Road, NE
                                              Albuquerque, NM 87110      
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Horizon Management Holding, Inc.              6001 Indian School Road, NE
                                              Albuquerque, NM 87110      
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Horizon Medical Management, Inc.              6001 Indian School Road, NE
     (Delaware)                               Albuquerque, NM 87110      
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Medical Innovations, Inc.                     6001 Indian School Road, NE
                                              Albuquerque, NM 87110      
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NIPSI Healthcare of Houston, L.P.             6001 Indian School Road, NE
                                              Albuquerque, NM 87110      
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Senior Health Clinics, Inc.                   6001 Indian School Road, NE
     (Delaware)                               Albuquerque, NM 87110      
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NIPSI of Houston, Inc.                        6001 Indian School Road, NE
     (Delaware)                               Albuquerque, NM 87110      
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CMS Therapies Provider, Inc.                  600 Wilson Lane         
     (North Carolina)                         Mechanicsburg, PA 17055 
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                                                                            2


                     CONTINENTAL MEDICAL SYSTEMS, INC.
                             600 WILSON LANE
                         MECHANICSBURG, PA 17055

                COMPANY NAME                       ADDRESS
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Central Arizona Rehab Hospital, Inc.          600 Wilson Lane        
     (Delaware)                               Mechanicsburg, PA 17055
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Central Ark. Outpatient Centers, Inc.         600 Wilson Lane        
     (Delaware)                               Mechanicsburg, PA 17055
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Chandler Rehab Hospital, Inc.                 600 Wilson Lane        
     (Delaware)                               Mechanicsburg, PA 17055
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Chico Rehab Hospital., Inc.                   600 Wilson Lane        
     (Delaware)                               Mechanicsburg, PA 17055
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Clear Lake Rehab Hospital Inc.                600 Wilson Lane        
     (Texas)                                  Mechanicsburg, PA 17055
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CMS Administrative Services, Inc.             600 Wilson Lane        
     (Delaware)                               Mechanicsburg, PA 17055
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CMS Alexandria Rehab, Inc.                    600 Wilson Lane        
     (Delaware)                               Mechanicsburg, PA 17055
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CMS Baton Rouge Rehab, Inc.                   600 Wilson Lane        
     (Delaware)                               Mechanicsburg, PA 17055
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CMS Beaumont Rehab, Inc.                      600 Wilson Lane        
     (Texas)                                  Mechanicsburg, PA 17055
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Contra Costa Rehab Clinic, Inc.               600 Wilson Lane        
     (Delaware)                               Mechanicsburg, PA 17055
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CMS Denver Rehab, Inc.                        600 Wilson Lane        
     (Delaware)                               Mechanicsburg, PA 17055
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CMS Develop. And Mgmt. Co. Inc.               600 Wilson Lane        
     (Delaware)                               Mechanicsburg, PA 17055
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CMS Elizabethtown, Inc.                       600 Wilson Lane        
     (Delaware)                               Mechanicsburg, PA 17055
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CMS Fayetteville Rehab, Inc.                  600 Wilson Lane        
     (Delaware)                               Mechanicsburg, PA 17055
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CMS Fort Worth Rehab, Inc.                    600 Wilson Lane        
     (Delaware)                               Mechanicsburg, PA 17055
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CMS Fresno Rehab, Inc.                        600 Wilson Lane        
     (Delaware)                               Mechanicsburg, PA 17055
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                                                                            3


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CMS Houston Rehab, Inc.                       600 Wilson Lane        
     (Delaware)                               Mechanicsburg, PA 17055
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CMS Jonesboro Rehab, Inc.                     600 Wilson Lane        
     (Delaware)                               Mechanicsburg, PA 17055
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CMS Kansas City Rehab, Inc.                   600 Wilson Lane        
     (Delaware)                               Mechanicsburg, PA 17055
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CMS Outpatient Centers of N. Texas, Inc.      600 Wilson Lane        
     (Delaware)                               Mechanicsburg, PA 17055
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CMS Outpatient Centers of S. Texas, Inc.      600 Wilson Lane        
     (Delaware)                               Mechanicsburg, PA 17055
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CMS Outpatient Rehab Services, Inc.           600 Wilson Lane        
     (Delaware)                               Mechanicsburg, PA 17055
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CMS Pennsylvania, Inc.                        600 Wilson Lane        
     (Delaware)                               Mechanicsburg, PA 17055
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CMS Physician Services, Inc.                  600 Wilson Lane        
     (Delaware)                               Mechanicsburg, PA 17055
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CMS of Ohio, Inc.                             600 Wilson Lane        
     (Delaware)                               Mechanicsburg, PA 17055
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CMS Rehab Technologies, Inc.                  9820 Willow Creek Road, Ste 430
     (Delaware)                               San Diego, CA 92131            
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CMS Rehab Center of Hialeah, Inc.             600 Wilson Lane        
     (Delaware)                               Mechanicsburg, PA 17055
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CMS Ruston Rehab., Inc.                       600 Wilson Lane        
     (Delaware)                               Mechanicsburg, PA 17055
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CMS San Diego Rehab Inc.                      600 Wilson Lane        
     (Delaware)                               Mechanicsburg, PA 17055
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CMS San Diego Surgical, Inc.                  600 Wilson Lane        
     (Delaware)                               Mechanicsburg, PA 17055
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CMS Sherwood Rehab Inc.                       600 Wilson Lane        
     (Delaware)                               Mechanicsburg, PA 17055
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CMS South Miami Rehab, Inc.                   600 Wilson Lane        
     (Delaware)                               Mechanicsburg, PA 17055
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CMS Sportsmed Clinic, Inc.                    600 Wilson Lane        
     (Delaware)                               Mechanicsburg, PA 17055
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CMS Topeka Rehabilitation, Inc.               600 Wilson Lane        
     (Delaware)                               Mechanicsburg, PA 17055
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CMS Tri-Cities Rehab Hospital, Inc.           600 Wilson Lane        
     (Delaware)                               Mechanicsburg, PA 17055
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CMS Wichita Rehab, Inc.                       600 Wilson Lane        
     (Delaware)                               Mechanicsburg, PA 17055
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                                                                            4


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CMS WorkAble, Inc.                            600 Wilson Lane        
     (Delaware)                               Mechanicsburg, PA 17055
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CMS WorkAble of Paragould, Inc.               600 Wilson Lane        
     (Delaware)                               Mechanicsburg, PA 17055
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CMS Worknet of Baton Rouge, Inc.              600 Wilson Lane        
     (Delaware)                               Mechanicsburg, PA 17055
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CMSI Systems of Texas, Inc.                   600 Wilson Lane        
     (Texas)                                  Mechanicsburg, PA 17055
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Colorado Outpatient Centers, Inc.             600 Wilson Lane        
     (Delaware)                               Mechanicsburg, PA 17055
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Continental Medical of Arizona, Inc.          600 Wilson Lane        
     (Delaware)                               Mechanicsburg, PA 17055
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Continental Medical of Colorado, Inc.         600 Wilson Lane        
     (Delaware)                               Mechanicsburg, PA 17055
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Continental Medical Systems of Florida, Inc.  600 Wilson Lane        
     (Florida)                                Mechanicsburg, PA 17055
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Continental Medical of Kentucky, Inc.         600 Wilson Lane        
     (Delaware)                               Mechanicsburg, PA 17055
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Continental Medical of Palm Beach, Inc.       600 Wilson Lane        
     (Delaware)                               Mechanicsburg, PA 17055
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Continental Rehab of W.F., Inc.               600 Wilson Lane        
     (Texas)                                  Mechanicsburg, PA 17055
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Continental Rehab Hospital of Arizona, Inc    600 Wilson Lane        
     (Delaware)                               Mechanicsburg, PA 17055
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Fairland Nursing and Retirement Home, Inc.    600 Wilson Lane        
     (Delaware)                               Mechanicsburg, PA 17055
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Great Plains Rehab Hospital, Inc.             600 Wilson Lane        
     (Delaware)                               Mechanicsburg, PA 17055
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HCA Wesley Rehab Clinic of Liberal, Inc.      600 Wilson Lane        
     (Delaware)                               Mechanicsburg, PA 17055
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HCA Wesley Rehab Hospital, Inc.               600 Wilson Lane        
     (Delaware)                               Mechanicsburg, PA 17055
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Hialeah Conv. Centers, Inc.                   600 Wilson Lane        
     (Florida)                                Mechanicsburg, PA 17055
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Indiana Outpatient Centers, Inc.              600 Wilson Lane        
     (Delaware)                               Mechanicsburg, PA 17055
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Innovative Health Alliances, Inc.             600 Wilson Lane        
     (Delaware)                               Mechanicsburg, PA 17055
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K.C. Rehab Hospital, Inc.                     600 Wilson Lane        
     (Delaware)                               Mechanicsburg, PA 17055
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                                                                            5


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Kansas Outpatient Centers, Inc.               600 Wilson Lane        
     (Delaware)                               Mechanicsburg, PA 17055
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Kansas Rehab Hospital, Inc.                   600 Wilson Lane        
     (Delaware)                               Mechanicsburg, PA 17055
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Kentfield Hospital Corporation                600 Wilson Lane        
     (California)                             Mechanicsburg, PA 17055
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Keystone Medical Systems, Inc.                600 Wilson Lane        
     (Pennsylvania)                           Mechanicsburg, PA 17055
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Kokomo Rehab Hospital, Inc.                   600 Wilson Lane        
     (Delaware)                               Mechanicsburg, PA 17055
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Lafayette Rehab Hospital, Inc                 600 Wilson Lane        
     (Delaware)                               Mechanicsburg, PA 17055
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Louisiana Outpatient Centers, Inc.            600 Wilson Lane        
     (Delaware)                               Mechanicsburg, PA 17055
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Maryland Rehab Hospital, Inc.                 600 Wilson Lane        
     (Delaware)                               Mechanicsburg, PA 17055
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Mid-America Outpatient Centers, Inc.          600 Wilson Lane        
     (Delaware)                               Mechanicsburg, PA 17055
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National Physicians Equity Corp               600 Wilson Lane        
     (California)                             Mechanicsburg, PA 17055
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Nevada Rehab Hospital, Inc.                   600 Wilson Lane        
     (Delaware)                               Mechanicsburg, PA 17055
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North Louisiana Rehab Center, Inc.            600 Wilson Lane        
     (Louisiana)                              Mechanicsburg, PA 17055
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Northeast Arkansas Rehab Unit, Inc.           600 Wilson Lane        
     (Arkansas)                               Mechanicsburg, PA 17055
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Northeast Oklahoma Rehab Hospital, Inc.       600 Wilson Lane        
     (Delaware)                               Mechanicsburg, PA 17055
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Northern Virginia Rehab Hospital, Inc         600 Wilson Lane        
     (Delaware)                               Mechanicsburg, PA 17055
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Orange Rehab Hospital, Inc.                   600 Wilson Lane        
     (Delaware)                               Mechanicsburg, PA 17055
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Texas Hospital Partners, Inc.                 600 Wilson Lane        
     (Delaware)                               Mechanicsburg, PA 17055
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Palm Springs Rehab Hospital, Inc.             600 Wilson Lane        
     (Delaware)                               Mechanicsburg, PA 17055
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Park Manor Nursing Home, Inc.                 600 Wilson Lane        
     (Delaware)                               Mechanicsburg, PA 17055
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Premier Ancillary Services, Inc.              600 Wilson Lane        
     (Delaware)                               Mechanicsburg, PA 17055
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                                                                            6


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Professional Management Resources, Inc.       600 Wilson Lane        
     (New York)                               Mechanicsburg, PA 17055
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RCM Management Company, Inc.                  600 Wilson Lane        
     (Delaware)                               Mechanicsburg, PA 17055
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Rehab Concepts Corp.                          9820 Willow Creek Road, Ste 430
     (Delaware)                               San Diego, CA 92131            
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Rehab Connection Inc.                         600 Wilson Lane        
     (Delaware)                               Mechanicsburg, PA 17055
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Rehab Resources, Inc.                         600 Wilson Lane        
     (Delaware)                               Mechanicsburg, PA 17055
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Rehab Hospital of Colorado Springs, Inc.      600 Wilson Lane        
     (Delaware)                               Mechanicsburg, PA 17055
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Rehab Hospital of Fort Wayne, Inc.            600 Wilson Lane        
     (Delaware)                               Mechanicsburg, PA 17055
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Rehab Hospital of Nevada-LV, Inc.             600 Wilson Lane        
     (Delaware)                               Mechanicsburg, PA 17055
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Rehab Hospital of Plano, Inc.                 600 Wilson Lane        
     (Texas)                                  Mechanicsburg, PA 17055
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Romano Rehab Hospital, Inc.                   600 Wilson Lane        
     (Texas)                                  Mechanicsburg, PA 17055
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SD Acquisition Corporation                    600 Wilson Lane        
     (Delaware)                               Mechanicsburg, PA 17055
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SD Partners, Inc.                             600 Wilson Lane        
     (Delaware)                               Mechanicsburg, PA 17055
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San Bernardino Rehab Hospital, Inc.           600 Wilson Lane        
     (Delaware)                               Mechanicsburg, PA 17055
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SelectRehab, Inc.                             600 Wilson Lane        
     (Delaware)                               Mechanicsburg, PA 17055
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Sherwood Rehab Hospital, Inc.                 600 Wilson Lane        
     (Delaware)                               Mechanicsburg, PA 17055
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Sierra Pain & Occ. Rehab Center, Inc          600 Wilson Lane        
     (Delaware)                               Mechanicsburg, PA 17055
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Southeast Texas Rehab Hospital, Inc.          600 Wilson Lane        
     (Texas)                                  Mechanicsburg, PA 17055
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Tarrant City Rehab Hospital, Inc.             600 Wilson Lane        
     (Texas)                                  Mechanicsburg, PA 17055
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Terre Haute Rehab Hospital, Inc.              600 Wilson Lane        
     (Delaware)                               Mechanicsburg, PA 17055
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The Nursing Home at Chevy Chase, Inc.         600 Wilson Lane        
     (Delaware)                               Mechanicsburg, PA 17055
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                                                                            7


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The Rehab Source, Inc.                        600 Wilson Lane        
     (Delaware)                               Mechanicsburg, PA 17055
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Therapy Source, Inc.                          600 Wilson Lane        
     (Delaware)                               Mechanicsburg, PA 17055
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Tulsa Rehab Hospital Inc.                     600 Wilson Lane        
     (Delaware)                               Mechanicsburg, PA 17055
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Tyler Rehab Hospital Inc.                     600 Wilson Lane        
     (Texas)                                  Mechanicsburg, PA 17055
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Western Neuro Care, Inc.                      600 Wilson Lane        
     (Delaware)                               Mechanicsburg, PA 17055
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Western Neuro Residential, Inc.               600 Wilson Lane        
     (Delaware)                               Mechanicsburg, PA 17055
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Wichita Falls Rehab Hospital, Inc.            600 Wilson Lane        
     (Texas)                                  Mechanicsburg, PA 17055
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CMS Capital Ventures, Inc.                    9820 Willow Creek Road, Ste 430
     (Delaware)                               San Diego, CA 92131            
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Medical Manage Associates, Inc.               600 Wilson Lane        
     (California)                             Mechanicsburg, PA 17055
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Western Neur. Res. Centers, Inc.              600 Wilson Lane        
     (California)                             Mechanicsburg, PA 17055
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Baton Rouge Rehab, Inc.                       600 Wilson Lane        
     (Delaware)                               Mechanicsburg, PA 17055
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CMS Therapies, Inc.                           600 Wilson Lane        
     (North Carolina)                         Mechanicsburg, PA 17055
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VTA Management Services, Inc.                 600 Wilson Lane        
     (New York)                               Mechanicsburg, PA 17055
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VTA Therapy Tech. Corp.                       9820 Willow Creek Road, Ste 430
     (Delaware)                               San Diego, CA 92131            
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The Kelton Corporation                        600 Wilson Lane        
     (Massachusetts)                          Mechanicsburg, PA 17055
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Braintree Rehab Ventures, Inc.                600 Wilson Lane        
     (Massachusetts)                          Mechanicsburg, PA 17055
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KBT Corporation                               600 Wilson Lane        
     (Massachusetts)                          Mechanicsburg, PA 17055
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CompHealth, Inc.                              600 Wilson Lane        
     (Delaware)                               Mechanicsburg, PA 17055
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CHS Ther. Tech. Corp                          9820 Willow Creek Road, Ste 430
     (Delaware)                               San Diego, CA 92131            
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CompHealth Medical Staffing, Inc.             600 Wilson Lane        
     (Delaware)                               Mechanicsburg, PA 17055
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                                                                            8


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CMS Therapy Services, Inc.                    600 Wilson Lane        
                                              Mechanicsburg, PA 17055
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RehabWorks, Inc.                              600 Wilson Lane        
     (Florida)                                Mechanicsburg, PA 17055
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RWI Therapy Tech, Corp.                       9820 Willow Creek Road, Ste 430
     (Delaware)                               San Diego, CA 92131            
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Prof. Program Service, Inc.                   600 Wilson Lane        
     (Delaware)                               Mechanicsburg, PA 17055
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Rehab Associates, Inc.                        600 Wilson Lane        
     (Florida)                                Mechanicsburg, PA 17055
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Encompus, Inc.                                600 Wilson Lane        
     (Delaware)                               Mechanicsburg, PA 17055
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RehabWorks of California, Inc.                600 Wilson Lane        
     (California)                             Mechanicsburg, PA 17055
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Mancor Med. Management Company, Inc.          600 Wilson Lane        
     (California)                             Mechanicsburg, PA 17055
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Pro Therapy of America, Inc.                  600 Wilson Lane        
     (Delaware)                               Mechanicsburg, PA 17055
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Apco Med Laboratories, Inc.                   600 Wilson Lane        
     (Michigan)                               Mechanicsburg, PA 17055
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Physical Therapy Source, Inc.                 600 Wilson Lane        
     (Delaware)                               Mechanicsburg, PA 17055
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Professional Therapy International, Inc       600 Wilson Lane        
     (Florida)                                Mechanicsburg, PA 17055
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Professional Therapy Staffing, Inc.           600 Wilson Lane        
     (Michigan)                               Mechanicsburg, PA 17055
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COA Therapy Thechnologies Corp.               9820 Willow Creek Road, Ste 430
     (Delaware)                               San Diego, CA 92131            
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Eagle Rehab Corporation                       6001 Indian School Rd NE
     (Washington)                             Albuquerque, NM 87110   
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Frankhauser Physical Therapy, Orthopedic      6001 Indian School Rd NE
and Sports Rehabilitation, Inc.               Albuquerque, NM 87110   
     (Washington)
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Northwestern Sports Clinic, Inc.              6001 Indian School Rd NE
     (Washington)                             Albuquerque, NM 87110   
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Physical Therapy & Athletic                   6001 Indian School Rd NE
Rehabilitation Associates, Inc.               Albuquerque, NM 87110   
     (Washington)
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Physical Therapy Specialties, Inc.            6001 Indian School Rd NE
     (Washington)                             Albuquerque, NM 87110   
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Sampson & Delilah, Inc.                       6001 Indian School Rd NE
     (Washington)                             Albuquerque, NM 87110   
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                                                                            9


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South Florida Orthopedics, Inc.               6001 Indian School Rd NE
                                              Albuquerque, NM 87110   
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Spokane Associated Physical                   6001 Indian School Rd NE
Therapists, Inc.                              Albuquerque, NM 87110   
     (Washington)
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Spokane Sports & Orthopedic Therapy, Inc.     6001 Indian School Rd NE
                                              Albuquerque, NM 87110   
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                                                                           10