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) October 19, 1996
                                                 --------------------------

                        INTEGRATED HEALTH SERVICES, INC.
--------------------------------------------------------------------------------
               (Exact Name of Registrant as Specified in Charter)


           Delaware                    1-12306                23-2428312
----------------------------        ------------              ----------
(State or other jurisdiction        (Commission          (IRS Employer
        Of corporation)             File Number)         Identification No.)



10065 Red Run Boulevard, Owings Mills, Maryland               21117
------------------------------------------------            ---------
(Address of principal executive offices)                    (Zip Code)


Registrant's telephone number, including area code: (410) 998-8400
                                                    ----------------------------

                                 Not Applicable
-------------------------------------------------------------------------------
          (Former name or former address, if changed since last report)


<PAGE>




Item 5.  Other Events

         On October 19, 1996,  Integrated  Health Services,  Inc.  ("IHS"),  IHS
Acquisition  XIX, Inc., a  wholly-owned  subsidiary of IHS ("Merger  Sub"),  and
Coram Healthcare  Corporation  ("Coram") entered into a definitive agreement and
plan of merger  (the  "Agreement")  providing  for the merger of Merger Sub into
Coram, with Coram becoming a wholly-owned  subsidiary of IHS. Coram is a leading
provider of alternative site (outside the hospital) infusion therapy and related
services in the United  States,  operating  132  branches  located in 43 states.
Infusion  therapy  involves the intravenous  administration  of  anti-infective,
biotherapy,  chemotherapy, pain management, nutrition and other therapies. Other
services  offered  by Coram  include  the  provision  of  lithotripsy  and other
non-intravenous products and services.

         Under the terms of the  Agreement,  which was  approved by the Board of
Directors of both IHS and Coram,  holders of Coram common stock  ("Coram  Common
Stock")  will  receive for each share of Coram Common Stock 0.2111 of a share of
IHS Common  Stock,  having a market value of $5.44 based on the closing price of
the IHS  Common  Stock on the last  business  day  prior to the  signing  of the
Agreement. Options and warrants to purchase Coram Common Stock will be converted
at the closing into options and warrants,  respectively,  to purchase IHS Common
Stock.  At September 30, 1996 Coram had outstanding  42,266,867  shares of Coram
Common Stock, options to purchase 6,806,531 shares of Coram Common Stock ("Coram
Options")  and  warrants  to purchase  7,210,118  shares of Coram  Common  Stock
("Coram  Warrants"),  including  warrants to purchase  1,653,064 shares of Coram
Common Stock owned by Coram Funding, Inc. ("CFI") which will be purchased by IHS
at the effective time of the merger as described  below. In addition,  Coram has
agreed  to issue  5,000,000  shares of Coram  Common  Stock in  settlement  of a
pending class action lawsuit.  IHS will issue approximately  9,978,000 shares of
IHS  Common   Stock  under  the   Agreement,   and  will  reserve  for  issuance
approximately  2,610,000  shares of IHS Common Stock  issuable  upon exercise of
Coram Options and Coram Warrants  (after giving effect to the  transaction  with
CFI discussed  below).  At September 30, 1996,  IHS had  outstanding  23,117,934
shares  of  IHS  Common  Stock  and  had  reserved  for  issuance  approximately
10,500,000  shares under stock option and stock  purchase plans and warrants and
7,989,275 shares upon conversion of outstanding convertible debentures.

         The merger is  intended  to qualify  as a tax free  reorganization,  as
permitted  by the  Internal  Revenue  Code,  and a "pooling  of  interests"  for
accounting  and financial  reporting  purposes.  Completion of the  transaction,
which is expected to occur in the first  quarter of 1997,  is subject to,  among
other  things,  approval  by each  company's  stockholders,  receipt of required
regulatory  approvals,  consent  of senior  bank  lenders  and  other  customary
conditions.

         In addition,  IHS has agreed to purchase at the  effective  time of the
merger  from CFI,  an  affiliate  of  Donaldson,  Lufkin &  Jenrette  Securities
Corporation,  the Coram bridge notes and warrants to purchase Coram Common Stock
(collectively, the "CFI


                                       -2-



<PAGE>



Securities")  purchased  by CFI in April 1995.  The  purchase  price for the CFI
Securities  will be cash in an amount  equal to  $172.3  million  (plus  accrued
interest  thereon  from  January 1, 1997 at the rate of 11% per annum) (the "CFI
Securities Cash Purchase  Price").  IHS may elect to pay all or a portion of the
CFI  Securities   Cash  Purchase  Price  through  the  issuance  of  11%  Senior
Subordinated  Notes due 2007 of IHS (the "11% Notes") in an aggregate  principal
amount equal to  approximately  101.394% of that  portion of the CFI  Securities
Cash Purchase Price to be paid through the issuance of 11% Notes.

         In addition,  the litigation between Coram and Caremark  International,
Inc. ("CII"), a wholly-owned subsidiary of MedPartners, Inc., will be settled at
the  closing  of the  transaction,  and CII  will  receive  from  Coram a 2-year
promissory note in the principal  amount of $52.7 million plus accrued  interest
from September 30, 1996 through closing in exchange for the  approximately  $111
million  principal  amount  of  subordinated  notes  issued  by  Coram to CII in
connection with Coram's  acquisition of an alternate site infusion business from
CII. IHS will assume a total of  approximately  $375 million of  indebtedness in
the merger, including the new debt to be issued to CFI and CII.

         Smith Barney Inc. acted as financial advisor to IHS in the transaction.

Item 7.  Financial Statements, Pro Forma Financial Information and Exhibits.

         (c)  Exhibits.

         2        Agreement  and Plan of Merger  entered  into as of October 19,
                  1996, among Coram Healthcare  Corporation,  Integrated  Health
                  Services, Inc. and IHS Acquisition XIX, Inc.

         10.1     Agreement,  dated as of October  19,  1996,  among  Integrated
                  Health Services, Inc. and Coram Funding, Inc.

         10.2     Agreement,  dated  as of  October  20,  1996,  by and  between
                  MedPartners, Inc. and Integrated Health Services, Inc.




                                       -3-



<PAGE>



                                   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.



                                           INTEGRATED HEALTH SERVICES, INC.



Date: November 12, 1996                     By: /s/ W. Bradley Bennett    
                                                ----------------------    
                                            Name: W. Bradley Bennett      
                                            Title: Executive Vice President -
                                                  Chief Accounting Officer



                                       -4-
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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) October 19, 1996
                                                 --------------------------

                        INTEGRATED HEALTH SERVICES, INC.
--------------------------------------------------------------------------------
               (Exact Name of Registrant as Specified in Charter)

           Delaware                    1-12306                23-2428312
----------------------------        ------------              ----------
(State or other jurisdiction        (Commission          (IRS Employer
        Of corporation)             File Number)         Identification No.)

10065 Red Run Boulevard, Owings Mills, Maryland               21117
------------------------------------------------            ---------
(Address of principal executive offices)                    (Zip Code)

Registrant's telephone number, including area code: (410) 998-8400
                                                    ----------------------------

                                 Not Applicable
-------------------------------------------------------------------------------
          (Former name or former address, if changed since last report)
Item 5.  Other Events

         On October 19, 1996,  Integrated  Health Services,  Inc.  ("IHS"),  IHS
Acquisition  XIX, Inc., a  wholly-owned  subsidiary of IHS ("Merger  Sub"),  and
Coram Healthcare  Corporation  ("Coram") entered into a definitive agreement and
plan of merger  (the  "Agreement")  providing  for the merger of Merger Sub into
Coram, with Coram becoming a wholly-owned  subsidiary of IHS. Coram is a leading
provider of alternative site (outside the hospital) infusion therapy and related
services in the United  States,  operating  132  branches  located in 43 states.
Infusion  therapy  involves the intravenous  administration  of  anti-infective,
biotherapy,  chemotherapy, pain management, nutrition and other therapies. Other
services  offered  by Coram  include  the  provision  of  lithotripsy  and other
non-intravenous products and services.

         Under the terms of the  Agreement,  which was  approved by the Board of
Directors of both IHS and Coram,  holders of Coram common stock  ("Coram  Common
Stock")  will  receive for each share of Coram Common Stock 0.2111 of a share of
IHS Common  Stock,  having a market value of $5.44 based on the closing price of
the IHS  Common  Stock on the last  business  day  prior to the  signing  of the
Agreement. Options and warrants to purchase Coram Common Stock will be converted
at the closing into options and warrants,  respectively,  to purchase IHS Common
Stock.  At September 30, 1996 Coram had outstanding  42,266,867  shares of Coram
Common Stock, options to purchase 6,806,531 shares of Coram Common Stock ("Coram
Options")  and  warrants  to purchase  7,210,118  shares of Coram  Common  Stock
("Coram  Warrants"),  including  warrants to purchase  1,653,064 shares of Coram
Common Stock owned by Coram Funding, Inc. ("CFI") which will be purchased by IHS
at the effective time of the merger as described  below. In addition,  Coram has
agreed  to issue  5,000,000  shares of Coram  Common  Stock in  settlement  of a
pending class action lawsuit.  IHS will issue approximately  9,978,000 shares of
IHS  Common   Stock  under  the   Agreement,   and  will  reserve  for  issuance
approximately  2,610,000  shares of IHS Common Stock  issuable  upon exercise of
Coram Options and Coram Warrants  (after giving effect to the  transaction  with
CFI discussed  below).  At September 30, 1996,  IHS had  outstanding  23,117,934
shares  of  IHS  Common  Stock  and  had  reserved  for  issuance  approximately
10,500,000  shares under stock option and stock  purchase plans and warrants and
7,989,275 shares upon conversion of outstanding convertible debentures.

         The merger is  intended  to qualify  as a tax free  reorganization,  as
permitted  by the  Internal  Revenue  Code,  and a "pooling  of  interests"  for
accounting  and financial  reporting  purposes.  Completion of the  transaction,
which is expected to occur in the first  quarter of 1997,  is subject to,  among
other  things,  approval  by each  company's  stockholders,  receipt of required
regulatory  approvals,  consent  of senior  bank  lenders  and  other  customary
conditions.

         In addition,  IHS has agreed to purchase at the  effective  time of the
merger  from CFI,  an  affiliate  of  Donaldson,  Lufkin &  Jenrette  Securities
Corporation,  the Coram bridge notes and warrants to purchase Coram Common Stock
(collectively, the "CFI

                                       -2-
Securities")  purchased  by CFI in April 1995.  The  purchase  price for the CFI
Securities  will be cash in an amount  equal to  $172.3  million  (plus  accrued
interest  thereon  from  January 1, 1997 at the rate of 11% per annum) (the "CFI
Securities Cash Purchase  Price").  IHS may elect to pay all or a portion of the
CFI  Securities   Cash  Purchase  Price  through  the  issuance  of  11%  Senior
Subordinated  Notes due 2007 of IHS (the "11% Notes") in an aggregate  principal
amount equal to  approximately  101.394% of that  portion of the CFI  Securities
Cash Purchase Price to be paid through the issuance of 11% Notes.

         In addition,  the litigation between Coram and Caremark  International,
Inc. ("CII"), a wholly-owned subsidiary of MedPartners, Inc., will be settled at
the  closing  of the  transaction,  and CII  will  receive  from  Coram a 2-year
promissory note in the principal  amount of $52.7 million plus accrued  interest
from September 30, 1996 through closing in exchange for the  approximately  $111
million  principal  amount  of  subordinated  notes  issued  by  Coram to CII in
connection with Coram's  acquisition of an alternate site infusion business from
CII. IHS will assume a total of  approximately  $375 million of  indebtedness in
the merger, including the new debt to be issued to CFI and CII.

         Smith Barney Inc. acted as financial advisor to IHS in the transaction.

Item 7.  Financial Statements, Pro Forma Financial Information and Exhibits.

         (c)  Exhibits.

         2        Agreement  and Plan of Merger  entered  into as of October 19,
                  1996, among Coram Healthcare  Corporation,  Integrated  Health
                  Services, Inc. and IHS Acquisition XIX, Inc.

         10.1     Agreement,  dated as of October  19,  1996,  among  Integrated
                  Health Services, Inc. and Coram Funding, Inc.

         10.2     Agreement,  dated  as of  October  20,  1996,  by and  between
                  MedPartners, Inc. and Integrated Health Services, Inc.

                                       -3-
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.

                                           INTEGRATED HEALTH SERVICES, INC.

Date: November 12, 1996                     By: /s/ W. Bradley Bennett    
                                                ----------------------    
                                            Name: W. Bradley Bennett      
                                            Title: Executive Vice President -
                                                  Chief Accounting Officer

                                       -4-