UNITED STATES
                       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): July 14, 1997

                        Merit Behavioral Care Corporation
               (Exact Name of Registrant as Specified in Charter)

                                    Delaware
                 (State or Other Jurisdiction of Incorporation)


33-80987                                                  22-3236927
(Commission                                           (IRS Employer
File Number)                                        Identification No.)


                 One Maynard Drive, Park Ridge, New Jersey    07656
              (Address of Principal Executive Offices)    (Zip Code)

                           (201) 391-8700
       (Registrant's telephone number, including area code)

                                N/A
   (Former Name or Former Address, if Changed Since Last Report)



<PAGE>



ITEM 5.           OTHER EVENTS

         On July 14, 1997,  Merit  Behavioral Care  Corporation  (the "Company")
entered into an Agreement and Plan of Merger (the "Agreement") to acquire all of
the capital stock of CMG Health,  Inc. ("CMG").  Pursuant to the Agreement,  the
acquisition  will be effected  through a merger of an  affiliate  of the Company
with CMG, as a result of which CMG will become a wholly owned  subsidiary of the
Company. The Agreement provides that holders of CMG's common and preferred stock
will receive,  in the aggregate,  at closing (1) approximately  $51.5 million in
cash (subject to certain  adjustments),  (2) 750,000  shares of MBC common stock
and (3) rights to receive certain additional cash and stock  consideration based
upon future events and the post-closing financial performance of CMG.

         The Chase  Manhattan  Bank,  N.A. the agent for the Company's  existing
senior  credit  facility,  has  committed to provide the  financing  required to
complete the acquisition. The merger is subject to certain conditions, including
the approval of CMG's stockholders at a special meeting to be held in late July,
the expiration of antitrust  regulatory  waiting  periods and the funding of the
financing arrangements.  The owners of a number of shares of CMG's capital stock
sufficient  to approve the merger,  including  Humana and Dr.  Shusterman,  have
executed  agreements  with MBC under which they have agreed to vote their shares
in favor of the merger at the special meeting of CMG's stockholders.

         A copy of the Agreement and the press release issued by the Company and
CMG announcing the execution of the Agreement are attached as exhibits.

 ITEM 7.          FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION
                  AND EXHIBITS

                  (a)      Financial Statements of Business Acquired.

                           Not Applicable.

                  (b)      Pro Forma Financial Information.

                           Not Applicable.

                  (c)      Exhibits.

                           The following  exhibits are filed with this Report on
                           Form 8-K.

 Regulation S-K
 Exhibit Number                     Exhibit

 2.1                                Agreement and Plan of Merger by and
                                    among Merit Behavioral Care Corporation,
                                    Merit Merger Corp., and CMG Health, Inc.


<PAGE>


                                   dated as of July 14, 1997.

2.2                                Form of Stockholder Support Agreement by
                                   and between Humana, Inc. in favor of Merit
                                   Behavioral Care Corporation, Merit Merger
                                   Corp., and CMG Health, Inc. dated as of
                                   July 14, 1997.

2.3                                Form of Stockholder Support Agreement,
                                   by and between an individual in favor of
                                   Merit Behavioral Care Corporation, Merit
                                   Merger Corp., and CMG Health, Inc. dated
                                   as of July 14, 1997.

10.1                               Employment and Consulting Agreement by
                                   and between CMG Health, Inc., and Alan J.
                                   Shusterman dated July 14, 1997.

10.2                               Letter Agreement by and between Douglass
                                   A. Kay, M.D. and CMG Health, Inc.

99.1                               Press release dated July 15, 1997.

                                   SIGNATURES

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

                                       MERIT BEHAVIORAL CARE CORPORATION


                                       /s/ Arthur H. Halper
                                       ------------------------------------
                                       Arthur H. Halper
                                       Executive Vice President and
                                       Chief Financial Officer


Date: July 18, 1997



<PAGE>
[{"type": "8-K", "sequence": "1", "description": "MERIT BEHAVIORAL CARE CORPORATION FORM 8-K", "secsgml_size_bytes": 5580}]
{"company-data": {"conformed-name": "MERIT BEHAVIORAL CARE CORP", "cik": "0001005530", "assigned-sic": "8000", "irs-number": "223236927", "state-of-incorporation": "DE", "fiscal-year-end": "0930"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "033-80987", "film-number": "97642496"}, "business-address": {"street1": "ONE MAYNARD DR", "city": "PARK RIDGE", "state": "NJ", "zip": "07656", "phone": "2013918700"}, "mail-address": {"street1": "ONE MAYNARD DR", "city": "PARK RIDGE", "state": "NJ", "zip": "07656"}}
UNITED STATES
                       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): July 14, 1997

                        Merit Behavioral Care Corporation
               (Exact Name of Registrant as Specified in Charter)

                                    Delaware
                 (State or Other Jurisdiction of Incorporation)

33-80987                                                  22-3236927
(Commission                                           (IRS Employer
File Number)                                        Identification No.)

                 One Maynard Drive, Park Ridge, New Jersey    07656
              (Address of Principal Executive Offices)    (Zip Code)

                           (201) 391-8700
       (Registrant's telephone number, including area code)

                                N/A
   (Former Name or Former Address, if Changed Since Last Report)
ITEM 5.           OTHER EVENTS

         On July 14, 1997,  Merit  Behavioral Care  Corporation  (the "Company")
entered into an Agreement and Plan of Merger (the "Agreement") to acquire all of
the capital stock of CMG Health,  Inc. ("CMG").  Pursuant to the Agreement,  the
acquisition  will be effected  through a merger of an  affiliate  of the Company
with CMG, as a result of which CMG will become a wholly owned  subsidiary of the
Company. The Agreement provides that holders of CMG's common and preferred stock
will receive,  in the aggregate,  at closing (1) approximately  $51.5 million in
cash (subject to certain  adjustments),  (2) 750,000  shares of MBC common stock
and (3) rights to receive certain additional cash and stock  consideration based
upon future events and the post-closing financial performance of CMG.

         The Chase  Manhattan  Bank,  N.A. the agent for the Company's  existing
senior  credit  facility,  has  committed to provide the  financing  required to
complete the acquisition. The merger is subject to certain conditions, including
the approval of CMG's stockholders at a special meeting to be held in late July,
the expiration of antitrust  regulatory  waiting  periods and the funding of the
financing arrangements.  The owners of a number of shares of CMG's capital stock
sufficient  to approve the merger,  including  Humana and Dr.  Shusterman,  have
executed  agreements  with MBC under which they have agreed to vote their shares
in favor of the merger at the special meeting of CMG's stockholders.

         A copy of the Agreement and the press release issued by the Company and
CMG announcing the execution of the Agreement are attached as exhibits.

 ITEM 7.          FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION
                  AND EXHIBITS

                  (a)      Financial Statements of Business Acquired.

                           Not Applicable.

                  (b)      Pro Forma Financial Information.

                           Not Applicable.

                  (c)      Exhibits.

                           The following  exhibits are filed with this Report on
                           Form 8-K.

 Regulation S-K
 Exhibit Number                     Exhibit

 2.1                                Agreement and Plan of Merger by and
                                    among Merit Behavioral Care Corporation,
                                    Merit Merger Corp., and CMG Health, Inc.
dated as of July 14, 1997.

2.2                                Form of Stockholder Support Agreement by
                                   and between Humana, Inc. in favor of Merit
                                   Behavioral Care Corporation, Merit Merger
                                   Corp., and CMG Health, Inc. dated as of
                                   July 14, 1997.

2.3                                Form of Stockholder Support Agreement,
                                   by and between an individual in favor of
                                   Merit Behavioral Care Corporation, Merit
                                   Merger Corp., and CMG Health, Inc. dated
                                   as of July 14, 1997.

10.1                               Employment and Consulting Agreement by
                                   and between CMG Health, Inc., and Alan J.
                                   Shusterman dated July 14, 1997.

10.2                               Letter Agreement by and between Douglass
                                   A. Kay, M.D. and CMG Health, Inc.

99.1                               Press release dated July 15, 1997.

                                   SIGNATURES

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

                                       MERIT BEHAVIORAL CARE CORPORATION

                                       /s/ Arthur H. Halper
                                       ------------------------------------
                                       Arthur H. Halper
                                       Executive Vice President and
                                       Chief Financial Officer

Date: July 18, 1997