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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 (Date of earliest event reported):
                                 January 24, 2002



                           SPARTA SURGICAL CORPORATION
             (Exact name of registrant as specified in its charter)


         Delaware                    1-11047                    22-2870438
  (State or other juris-           (Commission             (I.R.S. Employer ID
 diction of incorporation)         File Number)                   Number)



                                  Olsen Centre
                    849 E Stanley Blvd, Livermore, CA. 94550
                    (Address of principal executive offices)



        Registrant's telephone number, including area code (925) 373-0374



                                 not applicable
          (Former name or former address, if changed since last report)


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SPARTA SURGICAL CORPORATION

Form 8-K


ITEM 5 - OTHER EVENTS
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On January 4, 2002, we entered into a non-binding letter of intent to merge with
Shepard Medical Products,  Inc. ("Shepard"),  which is subject to the completion
of due diligence,  preparation  and execution of a Stock Exchange  Agreement and
other  conditions.  On January  22,  2002,  Shepard  and the  Company  agreed to
negotiate a revision  relating to the terms and structure  under the non-binding
letter of intent  entered  into on  January 4,  2002.  However,  there can be no
assurance  that we will be able to  negotiate  favorable  terms and  finalize  a
revised  non-binding  letter of intent with Shepard  successfully  and thereby a
possibility  may exist that the  non-binding  letter of intent dated  January 4,
2002 would be terminated in its entirety by either Shepard and/or the Company.




                                    SIGNATURE

Pursuant to the  requirements  of the  Securities  and Exchange Act of 1934, the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned hereunto duly authorized.

                                         SPARTA SURGICAL CORPORATION
Date: January 24, 2002
                                         By /s/ Thomas F. Reiner
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                                         Thomas F. Reiner,
                                         Chairman of the Board,
                                         President and Chief Executive Officer