The board of Comprehensive Care Corp., a St. Louis-based chain of six psychiatric and substance-abuse treatment facilities, has recommended a one-for-10 reverse stock split. CompCare's stock is traded on the New York Stock Exchange and has been selling for less than $1 per share. The company, which also operates 18 hospital-based contract management units, is preparing proxy materials for shareholders to vote on the split. For the fiscal year ended May 31, 1993, the company reported a net loss of $11.6 million, or 53 cents per share, compared with a net loss of $4.6 million, or 21 cents per share, the previous year. Revenues fell 18.5% to $66 million.
CareAmerica Health Plans, Chatsworth, Calif., has acquired San Francisco-based C.E. Heath Compensation and Liability Insurance Co., a workers' compensation insurer, for $95 million. The acquisition will help both companies pursue workers' compensation managed-care contracts expected to emerge from reform initiatives enacted last year by California lawmakers. The workers' compensation insurer covers some 350 employers with 100,000 workers in California and 17 other states. CareAmerica covers 200,000 managed-care enrollees in Southern California.