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): May 22, 1996
  
               Merit Behavioral Care Corporation                  
      (Exact Name of Registrant as Specified in Charter)

                           Delaware                      
         (State or Other Jurisdiction of Incorporation)

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


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

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

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

     Merit Behavioral Care Corporation announced today that it has reached
an agreement in principle to form a strategic alliance with Prudential 
HealthCare, a business unit of The Prudential Insurance Company of America,
to provide mental health and substance abuse services to Prudential 
HealthCare customers and members on a national basis as described in the 
attached press release.  The alliance is conditional upon the successful
completion of negotiations among the parties concerning the terms of the
arrangement.
  

                           SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934,
the registranbt 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: May 23, 1996





                                                 
FOR IMMEDIATE RELEASE                   Contact: Mafalda Arena
                                                 201/782-3260


          MERIT BEHAVIORAL CARE TO FORM ALLIANCE WITH
          PRUDENTIAL HEALTHCARE TO PROVIDE BEHAVIORAL
             HEALTH SERVICES TO PRUDENTIAL MEMBERS


     PARK RIDGE, New Jersey, May 22, 1996 --  Merit Behavioral Care 
Corporation (MBC), one of the nation's largest managed behavioral 
healthcare companies, announced today that it has reached agreement in 
principle to form a strategic alliance with Prudential HealthCare, a 
business unit of The Prudential Insurance Company of America, to provide
mental health and substance abuse services to Prudential HealthCare 
customers and members on a national basis.  Prudential HealthCare, which 
markets health plans issued by The Prudential and its health maintenance 
organization (HMO) subsidiaries, also selected Value Behavioral Health, Inc.
to participate in the alliance.  The alliance is conditioned upon the 
successful completion of negotiations among the parties concerning the terms
of the arrangement.

       It is expected that Prudential HealthCare will roll out services 
under the new alliance to its managed care plans in selected geographic 
markets beginning July 1, 1996, subject to execution of definitive 
agreements and receipt of appropriate regulatory approvals.  The markets
to be serviced by each of MBC and Value Behavioral will be determined by 
Prudential HealthCare on a market by market basis. 

     Commenting on the selection of MBC and Value Behavioral as alliance
participants, Samuel Havens, president, Prudential HealthCare, said "These 
companies have demonstrated an ability to deliver quality, cost-effective 
behavioral health care.  Through the alliance, we can strengthen Prudential 
HealthCare's operations across the board in areas such as quality 
improvement, member services and management systems, and improve our 
members' access to the full continuum of behavioral health care 
treatments."
     
       "MBC is thrilled to join Prudential HealthCare and Value Behavioral
in this exciting cooperative undertaking," said Albert S. Waxman, Chairman 
and Chief Executive Officer of MBC. "The alliance will set national 
standards for quality and performance, while delivering services to meet 
local requirements in the more than 40 major markets in which Prudential
HealthCare plans are located.  The initiative will combine the strengths of 
the three alliance participants, with a view to delivering fully integrated,
comprehensive behavioral health services to Prudential HealthCare members 
nationally.  We believe the alliance presents a unique opportunity for 
Prudential HealthCare to improve the quality and consistency of health care
services across its various products and markets, while delivering a more 
competitive product for its customers and members."

     MBC currently provides behavioral healthcare services to more than 15
million people and 1,000 clients across all 50 states through a national 
network of 30,000 staff and network providers and facilities.  Clients 
include corporations, union trusts, insurance carriers, HMOs, Blue Cross 
Blue Shield organizations and government entities.  MBC management, in 
conjunction with affiliates of Kohlberg Kravis Roberts & Co. (KKR), acquired
MBC from Merck & Co., Inc. in a transaction completed in October, 1995.
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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): May 22, 1996
  
               Merit Behavioral Care Corporation                  
      (Exact Name of Registrant as Specified in Charter)

                           Delaware                      
         (State or Other Jurisdiction of Incorporation)

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

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

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

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

     Merit Behavioral Care Corporation announced today that it has reached
an agreement in principle to form a strategic alliance with Prudential 
HealthCare, a business unit of The Prudential Insurance Company of America,
to provide mental health and substance abuse services to Prudential 
HealthCare customers and members on a national basis as described in the 
attached press release.  The alliance is conditional upon the successful
completion of negotiations among the parties concerning the terms of the
arrangement.
  

                           SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934,
the registranbt 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: May 23, 1996

                                                 
FOR IMMEDIATE RELEASE                   Contact: Mafalda Arena
                                                 201/782-3260

          MERIT BEHAVIORAL CARE TO FORM ALLIANCE WITH
          PRUDENTIAL HEALTHCARE TO PROVIDE BEHAVIORAL
             HEALTH SERVICES TO PRUDENTIAL MEMBERS

     PARK RIDGE, New Jersey, May 22, 1996 --  Merit Behavioral Care 
Corporation (MBC), one of the nation's largest managed behavioral 
healthcare companies, announced today that it has reached agreement in 
principle to form a strategic alliance with Prudential HealthCare, a 
business unit of The Prudential Insurance Company of America, to provide
mental health and substance abuse services to Prudential HealthCare 
customers and members on a national basis.  Prudential HealthCare, which 
markets health plans issued by The Prudential and its health maintenance 
organization (HMO) subsidiaries, also selected Value Behavioral Health, Inc.
to participate in the alliance.  The alliance is conditioned upon the 
successful completion of negotiations among the parties concerning the terms
of the arrangement.

       It is expected that Prudential HealthCare will roll out services 
under the new alliance to its managed care plans in selected geographic 
markets beginning July 1, 1996, subject to execution of definitive 
agreements and receipt of appropriate regulatory approvals.  The markets
to be serviced by each of MBC and Value Behavioral will be determined by 
Prudential HealthCare on a market by market basis. 

     Commenting on the selection of MBC and Value Behavioral as alliance
participants, Samuel Havens, president, Prudential HealthCare, said "These 
companies have demonstrated an ability to deliver quality, cost-effective 
behavioral health care.  Through the alliance, we can strengthen Prudential 
HealthCare's operations across the board in areas such as quality 
improvement, member services and management systems, and improve our 
members' access to the full continuum of behavioral health care 
treatments."
     
       "MBC is thrilled to join Prudential HealthCare and Value Behavioral
in this exciting cooperative undertaking," said Albert S. Waxman, Chairman 
and Chief Executive Officer of MBC. "The alliance will set national 
standards for quality and performance, while delivering services to meet 
local requirements in the more than 40 major markets in which Prudential
HealthCare plans are located.  The initiative will combine the strengths of 
the three alliance participants, with a view to delivering fully integrated,
comprehensive behavioral health services to Prudential HealthCare members 
nationally.  We believe the alliance presents a unique opportunity for 
Prudential HealthCare to improve the quality and consistency of health care
services across its various products and markets, while delivering a more 
competitive product for its customers and members."

     MBC currently provides behavioral healthcare services to more than 15
million people and 1,000 clients across all 50 states through a national 
network of 30,000 staff and network providers and facilities.  Clients 
include corporations, union trusts, insurance carriers, HMOs, Blue Cross 
Blue Shield organizations and government entities.  MBC management, in 
conjunction with affiliates of Kohlberg Kravis Roberts & Co. (KKR), acquired
MBC from Merck & Co., Inc. in a transaction completed in October, 1995.