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HOSPITAL STAFFING SERVICES TO ACQUIRE HOME HEALTHCARE COMPANIES

 HOSPITAL STAFFING SERVICES TO ACQUIRE HOME HEALTHCARE COMPANIES
 FORT LAUDERDALE, Fla., May 28 /PRNewswire/ -- Ronald A. Cass, chairman of Hospital Staffing Services, Inc. (NASDAQ-NMS: HSSI), today announced that the company has signed a letter of intent to acquire VIP Health Services, Inc. and VIP Health Care Services, privately held home healthcare companies that share common ownership, for a combined purchase price of approximately $8 million in cash, plus an amount equal to the net book value of the two companies (principally accounts receivable).
 VIP Health Services, Inc. and VIP Health Care Services both service the five boroughs of New York City, as well as Nassau, Westchester and Rockland counties, and in 1991 had combined revenues of approximately $20 million. The closing of the transaction is expected to take place in August 1992, subject to the company's due diligence and New York State licensure requirements.
 Together, VIP Health Services and VIP Health Care Services constitute a home care licensed agency and a home care Medicare certified agency (certified in Nassau, Queens and Brooklyn counties), with a combined total of five branch offices. The principal business of the two agencies consists of servicing city and state contracts, including para-professional social service activities. Additionally, VIP Health Services, Inc. operates the only proprietary certified agency serving clients in three contiguous metropolitan New York counties, which enables it to meet discharge requirements of the healthcare institutions in its service area.
 Commenting on the announcement, Cass said, "This acquisition serves to considerably strengthen our operations in the Northeast region by providing a substantial revenue base that is experiencing strong growth. As well, by virtue of the acquisition we will receive a Certificate of Need (C.O.N.) for a significant portion of the New York City metropolitan area, which will allow our existing offices in that area to expand their service activities to patients covered by the Medicare program. It is important to note that C.O.N.s are not currently being granted to new companies and generally must be obtained through the acquisition of a certified agency. Therefore, this acquisition is also expected to result in additional opportunities for our company to further capitalize on the growing demand for home health services by the Medicare sector."
 Hospital Staffing Services has also filed an application to list its common stock on the New York Stock Exchange and expects its shares to begin trading on the Exchange in early June under the trading symbol HSS.
 Hospital Staffing Services, Inc. is a leading professional home healthcare services and recruitment organization specializing in the provision of nursing services to patients at home and in healthcare institutions through a national network of home health care offices, and the placement of medical personnel, on a temporary and interim basis, in hospitals and other health care facilities located throughout the United States, Canada, the Virgin Islands, and the United Kingdom.
 -0- 5/28/92
 /CONTACT: Leonard J. Cass of Hospital Staffing Services, Inc., 305-771-0500; or Barry A. Rothman of Greenstone Roberts Public Relations, Florida, 305-975-3500, for Hospital Staffing Services, Inc./
 (HSSI) CO: Hospital Staffing Services, Inc.; VIP Health Services; VIP Health
 Care Services ST: Florida, New York IN: HEA SU: TNM


JJ-AW -- FL012 -- 4886 05/28/92 15:44 EDT
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Publication:PR Newswire
Date:May 28, 1992
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