<PAGE>

   AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON AUGUST 9, 1995
                                              Registration No. 33-
==============================================================================

                                UNITED STATES
                     SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
                                _________________

                                    FORM S-8
                              REGISTRATION STATEMENT
                                     UNDER
                            THE SECURITIES ACT OF 1933
                                _________________

                       HORIZON/CMS HEALTHCARE CORPORATION
             (Exact name of registrant as specified in its charter)

              DELAWARE                                     91-1346899
   (State or other jurisdiction of                      (I.R.S. Employer
    incorporation or organization)                     Identification No.)

                 6001 INDIAN SCHOOL ROAD, N.E., SUITE 530
                     ALBUQUERQUE, NEW MEXICO  87110

        (Address of principal executive offices, including zip code)
                             _________________

         CONTINENTAL MEDICAL SYSTEMS, INC. 1986 STOCK OPTION PLAN
            CONTINENTAL MEDICAL SYSTEMS, INC. 1989 NON-EMPLOYEE
                      DIRECTORS'  STOCK OPTION PLAN
       CONTINENTAL MEDICAL SYSTEMS, INC. 1992 CEO STOCK OPTION PLAN
   CONTINENTAL MEDICAL SYSTEMS, INC. 1993 NONQUALIFIED STOCK OPTION PLAN
         CONTINENTAL MEDICAL SYSTEMS, INC. 1994 STOCK OPTION PLAN

                        (Full title of the plans)


                                                        COPIES TO:

             SCOT SAUDER                           WILLIAM E. JOOR III
    SECRETARY AND GENERAL COUNSEL                 VINSON & ELKINS L.L.P.
  HORIZON/CMS HEALTHCARE CORPORATION               2300 FIRST CITY TOWER
 6001 INDIAN SCHOOL ROAD, N.E., SUITE 530              1001 FANNIN
        ALBUQUERQUE, NM 87110                   HOUSTON, TEXAS  77002-6760
           (505) 881-4961                             (713) 758-2582
   (Name, address and telephone number,
including area code, of agent for service)

                      CALCULATION OF REGISTRATION FEE
<TABLE>
<CAPTION>
==================================================================================================
       Title of                            Proposed maximum  Proposed maximum
   securities to be          Amount to be   offering price      aggregate           Amount of
     registered               registered      per share(1)   offering price(1)  registration fee
--------------------------------------------------------------------------------------------------
<S>                            <C>               <C>            <C>                  <C>
Common Stock, par value
 $.001 per share(2).......     3,765,586         $22.44         $84,499,750          $29,138
==================================================================================================
<FN>
(1) Estimated solely for purposes of calculating the registration fee in
    accordance with Rule 457(h) on the basis of the price of securities
    of the same class, as determined in accordance with Rule 457(c), using
    the average of the high and low prices reported on the New York Stock
    Exchange for the Registrant's Common Stock on August 4, 1995.

(2) This Registration Statement also pertains to rights to purchase shares
    of Series A Junior Participating Preferred Stock of the Registrant.
    One right is attached to and trades with each share of Common Stock
    of the Registrant.  Until the occurrence of certain events, the
    rights are not exercisable and will not be evidenced or transferred
    apart from the Common Stock.
</TABLE>

==============================================================================
<PAGE>

                                   PART II
            INFORMATION REQUIRED IN THE REGISTRATION STATEMENT


ITEM 3.   INCORPORATION OF DOCUMENTS BY REFERENCE.

          The following documents, which have been filed with the Securities
and Exchange Commission (the "Commission") by Horizon/CMS Healthcare
Corporation, a Delaware corporation (the "Company"), are incorporated herein
by reference and made a part hereof:

          (a)      Annual Report on Form 10-K for the fiscal year ended
                   May 31, 1994, as amended by Amendment No. 1 on
                   Form 10-K/A dated October 25, 1994, Amendment No. 2
                   on Form 10-K/A dated April 10, 1995 and Amendment No. 3
                   on Form 10-K/A dated June 2, 1995;

          (b)      Quarterly Report on Form 10-Q for the quarter ended
                   August 31, 1994, as amended by Amendment No. 1 on
                   Form 10-Q/A dated June 2, 1995;

          (c)      Quarterly Report on Form 10-Q for the quarter ended
                   November 30, 1994, as amended by Amendment No. 1 on
                   Form 10-Q/A dated June 2, 1995;

          (d)      Quarterly Report on Form 10-Q for the quarter ended
                   February 28, 1995, as amended by Amendment No. 1 on
                   Form 10-Q/A dated May 18, 1995, Amendment No. 2 on
                   Form 10-Q/A dated May 19, 1995 and Amendment No. 3 on
                   Form 10-Q/A dated June 2, 1995;

          (e)      Current Reports on Form 8-K dated August 12, 1994 (as
                   amended by Amendment No. 1 on Form 8-K/A dated October 10,
                   1994 and Amendment No. 2 on Form 8-K/A dated June 2, 1995),
                   September 16, 1994, April 10, 1995, June 23, 1995 (as
                   amended by Amendment No. 1 on Form 8-K/A dated August 8,
                   1995), July 25, 1995 and July 25, 1995;

          (f)      Description of the Company's Common Stock, par value $.001
                   per share, contained in the Company's Registration Statement
                   on Form 8-A dated March 17, 1987, as amended by Amendment
                   No. 1 on Form 8-A/A dated June 23, 1994 and Amendment No. 2
                   on Form 8-A/A dated September 22, 1994; and

          (g)      Description of rights to purchase the Company's Series A
                   Junior Participating Preferred Stock, par value $.001 per
                   share, contained in the Company's Registration Statement
                   on Form 8-A dated September 16, 1994.

          All documents filed by the Company pursuant to Sections 13(a),
13(c), 14 and 15(d) of the Securities Exchange Act of 1934, as amended (the
"Exchange Act"), subsequent to the effective date of this Registration
Statement, prior to the filing of a post-effective amendment to this
Registration Statement indicating that all securities offered hereby have
been sold or deregistering all securities then remaining unsold, shall be
deemed to be incorporated by reference herein and to be a part hereof from
the date of filing of such documents.  Any statement contained herein or in
any document incorporated or deemed to be incorporated by reference herein
shall be deemed to be modified or superseded for purposes of this
Registration Statement to the extent that a statement contained in any other
subsequently filed document which also is or is deemed to be incorporated by
reference herein modifies or supersedes such statement.  Any such statement
so modified or superseded shall not be deemed to constitute a part of this
Registration Statement, except as so modified or superseded.

ITEM 4.   DESCRIPTION OF SECURITIES.

          Not applicable.

                                     2
<PAGE>

ITEM 5.   INTERESTS OF NAMED EXPERTS AND COUNSEL.

          None.

          The audited consolidated financial statements and schedules of the
Company incorporated by reference in this Registration Statement, to the
extent and for the periods indicated in their reports, have been audited by
Arthur Andersen LLP, independent public accountants, and are included herein
in reliance upon the authority of said firm as experts in giving said reports.

          The combined financial statements of peopleCARE Heritage Group
incorporated by reference in this Registration Statement have been audited by
BDO Seidman LLP, independent certified public accountants, to the extent and
for the periods set forth in their report incorporated herein by reference,
and are incorporated herein in reliance upon such report given upon the
authority of said firm as experts in auditing and accounting.

ITEM 6.   INDEMNIFICATION OF DIRECTORS AND OFFICERS.

          Under Section 145 of the General Corporation Law of the State of
Delaware (the "DGCL"), a Delaware corporation has the power, under specified
circumstances, to indemnify its directors, officers, employees and agents in
connection with threatened, pending or completed actions, suits or
proceedings, whether civil, criminal, administrative or investigative (other
than an action by or in right of the corporation), brought against them by
reason of the fact that they were or are such directors, officers, employees
or agents, against expenses, judgments, fines and amounts paid in settlement
actually and reasonably incurred in any such action, suit or proceeding.
Article XIV of the Company's Restated Certificate of Incorporation together
with Article IX of its Bylaws provide for indemnification of each person who
is or was made a party to any actual or threatened civil, criminal,
administrative or investigative action, suit or proceeding because such
person is or was an officer or director of the Company or is a person who is
or was serving at the request of the Company as a director, officer, employee
or agent of another corporation or of a partnership, joint venture trust or
other enterprise, including service relating to employee benefit plans, to
the fullest extent permitted by the DGCL as it existed at the time the
indemnification provisions of the Company's Restated Certificate of
Incorporation and the Bylaws were adopted or as may be thereafter amended.
Article IX of the Company's Bylaws and Article XIV of its Restated
Certificate of Incorporation expressly provide that they are not the
exclusive methods of indemnification.

          Article IX of the Bylaws and Article XIV of the Company's Restated
Certificate of Incorporation also provide that the Company may maintain
insurance, at its own expense, to protect itself and any director, officer,
employee or agent of the Company or of another entity against any expense,
liability or loss, regardless of whether the Company would have the power to
indemnify such person against such expense, liability or loss under the DGCL.

          Section 102(b)(7) of the DGCL provides that a certificate of
incorporation may contain a provision eliminating or limiting the personal
liability of a director to the corporation or its stockholders for monetary
damages for breach of fiduciary duty as a director, provided that such
provision shall not eliminate or limit the liability of a director (i) for
any breach of the director's duty of loyalty to the corporation or its
stockholders, (ii) for acts or omissions not in good faith or which involve
intentional misconduct or a knowing violation of law, (iii) under Section 174
of the DGCL (relating to liability for unauthorized acquisitions or
redemptions of, or dividends on, capital stock) or (iv) for any transaction
from which the director derived an improper personal benefit.  Article XI of
the Company's Restated Certificate of Incorporation contains such a provision.

ITEM 7.   EXEMPTION FROM REGISTRATION CLAIMED.

          Not applicable.

                                      3
<PAGE>

ITEM 8.   EXHIBITS.

          3.1      Restated Certificate of Incorporation of the Company dated
                   March 6, 1987, together with Certificate of Amendment of
                   Certificate of Incorporation dated January 6, 1992
                   (incorporated by reference to Exhibit 3.1 to the Company's
                   Annual Report on Form 10-K for the year ended May 31, 1994).

          3.2      Certificate of Amendment of Restated Certificate of
                   Incorporation dated September 12, 1994  (incorporated by
                   reference to Exhibit 4.2 to the Company's Registration
                   Statement on Form S-8  filed with the Securities and Exchange
                   Commission on September 29, 1994).

         *3.3      Certificate of Amendment of Restated Certificate of
                   Incorporation dated July 6, 1995.

          3.4      Certificate of Designation of Series A Junior Participating
                   Preferred Stock dated September 16, 1994 (incorporated by
                   reference to Exhibit 4.3 to the Company's Registration
                   Statement on Form S-8  filed with the Securities and Exchange
                   Commission on September 29, 1994).

          3.5      Amended and Restated Bylaws of the Company dated as of
                   February 28, 1987, together with Amendment to Bylaws Section
                   9.1.1 dated August 30, 1993 (incorporated by reference to
                   Exhibit 3.2 to the Company's Annual Report on Form 10-K for
                   the year ended May 31, 1994).

          3.6      Rights Agreement, dated as of September 15, 1994, between the
                   Company and Chemical Trust Company of California, as Rights
                   Agent, specifying the terms of the rights to purchase the
                   Company's Series A Junior Participating Preferred Stock, and
                   the exhibits thereto (incorporated by reference to Exhibit 1
                   to the Company's Registration Statement on Form 8-A dated
                   September 16, 1994).

         *4.1      Continental Medical Systems, Inc. 1986 Stock Option Plan (as
                   amended and restated effective December 1, 1991), Amendment
                   No. 1 to Continental Medical Systems, Inc. 1986 Stock Option
                   Plan, Amendment No. 2 to Continental Medical Systems, Inc.
                   1986 Stock Option Plan and form of option agreement.

         *4.2      Continental Medical Systems, Inc. 1989 Non-Employee
                   Directors' Stock Option Plan (as amended and restated
                   effective December 1, 1991) and form of option agreement.

         *4.3      Continental Medical Systems, Inc. 1992 CEO Stock Option Plan,
                   Amendment No. 1 to Continental Medical Systems, Inc. 1992 CEO
                   Stock Option Plan and form of option agreement.

         *4.4      Continental Medical Systems, Inc. 1993 Nonqualified Stock
                   Option Plan,Amendment No. 1 to Continental Medical Systems,
                   Inc. 1993 Nonqualified Stock Option Plan, Amendment No. 2 to
                   Continental Medical Systems, Inc. 1993 Nonqualified Stock
                   Option Plan and form of option agreement.

         *4.5      Continental Medical Systems, Inc. 1994 Stock Option Plan and
                   form of option agreement.

         *5.1      Opinion of Vinson & Elkins L.L.P.

         23.1      Consent of Vinson & Elkins L.L.P. (set forth in Exhibit 5.1).

        *23.2      Consent of Arthur Andersen LLP.

        *23.3      Consent of BDO Seidman LLP.

         24.1      Powers of Attorney (set forth on signature pages).
       _______________
       *  Filed herewith.

                                      4

<PAGE>

ITEM 9.   UNDERTAKINGS

          The Company hereby undertakes:

          (1)      To file, during any period in which offers or sales are
being made, a post-effective amendment to this Registration Statement:

                   (a)   To include any prospectus required by Section 10(a)(3)
          of the Securities Act of 1933, as amended (the "Securities Act");

                   (b)   To reflect in the prospectus any facts or events
          arising after the effective date of the Registration Statement (or the
          most recent post-effective amendment thereof) which, individually or
          in the aggregate, represent a fundamental change in the information
          set forth in this Registration Statement;

                   (c)   To include any material information with respect to
          the plan of distribution not previously disclosed in this Registration
          Statement or any material change to such information in this
          Registration Statement;

PROVIDED, HOWEVER, that paragraphs (1)(a) and (1)(c) do not apply if the
information required to be included in a post-effective amendment by those
paragraphs is contained in periodic reports filed by the Company pursuant to
Section 13 or Section 15(d) of the Exchange Act that are incorporated by
reference in this Registration Statement.

          (2)      That, for the purpose of determining any liability under
the Securities Act, each such post-effective amendment shall be deemed to be
a new registration statement relating to the securities offered therein, and
the offering of such securities at that time shall be deemed to be the
initial bona fide offering thereof.

          (3)      To remove from registration by means of a post-effective
amendment any of the securities being registered which remain unsold at the
termination of the offering.

          (4)      That, for the purposes of determining any liability under
the Securities Act, each filing of the Company's annual report pursuant to
Section 13(a) or Section 15(d) of the Exchange Act (and, where applicable,
each filing of an employee benefit plan's annual report pursuant to Section
15(d) of the Exchange Act) that is incorporated by reference in this
Registration Statement shall be deemed to be a new registration statement
relating to the securities offered herein, and the offering of such
securities at that time shall be deemed to be the initial bona fide offering
thereof.

          Insofar as indemnification for liabilities arising under the
Securities Act may be permitted to directors, officers and controlling
persons of the Company pursuant to the foregoing provisions, or otherwise,
the Company has been advised that in the opinion of the Commission such
indemnification is against public policy as expressed in the Securities Act
and is, therefore, unenforceable.  In the event that a claim for
indemnification against such liabilities (other than the payment by the
Company of expenses incurred or paid by a director, officer or controlling
person of the Company in the successful defense of any action, suit or
proceeding) is asserted by such director, officer or controlling person in
connection with the securities being registered, the Company will, unless in
the opinion of its counsel the matter has been settled by controlling
precedent, submit to a court of appropriate jurisdiction the question whether
such indemnification by it is against public policy as expressed in the
Securities Act and will be governed by the final adjudication of such issue.


                                       5

<PAGE>

                                  SIGNATURES

          Pursuant to the requirements of the Securities Act, the Company
certifies that it has reasonable grounds to believe that it meets all of the
requirements for filing on Form S-8 and has duly caused this Registration
Statement to be signed on its behalf by the undersigned, thereunto duly
authorized, in the City of Albuquerque, State of New Mexico, on August 9,
1995.

                                  HORIZON/CMS HEALTHCARE CORPORATION


                                  By: /s/ Ernest A. Schofield
                                      -----------------------------------
                                      Ernest A. Schofield
                                      Senior Vice President

          KNOW ALL MEN BY THESE PRESENTS, that each person whose signature
appears below constitutes and appoints Klemett L. Belt, Jr., Ernest A.
Schofield and Scot Sauder, or any of them, his true and lawful
attorney-in-fact and agent, with full power of substitution, for him and in
his name, place and stead, in any and all capacities, to sign any and all
amendments (including post-effective amendments) to this Registration
Statement, and to file the same with all exhibits thereto, and other
documents in connection therewith, with the Securities and Exchange
Commission, granting unto said attorney-in-fact and agent full power and
authority to do and perform each and every act and thing requisite and
ratifying and confirming all that said attorney-in-fact and agent or his
substitute or substitutes may lawfully do or cause to be done by virtue
hereof.

          Pursuant to the requirements of the Securities Act, this
Registration Statement has been signed by the following persons in the
capacities indicated on the dates indicated.

       Signature                      Title                            Date
       ---------                      -----                            ----
/s/Neal M. Elliott       President, Chief Executive Officer       August 9, 1995
-----------------------   and Chairman of the Board of Directors
Neal M. Elliott           (Principal Executive Officer)

/s/Klemett L. Belt, Jr.  Director                                 August 9, 1995
-----------------------
Klemett L. Belt, Jr.

/s/Russell L. Carson     Director                                 August 9, 1995
-----------------------
Russell L. Carson

/s/Brian C. Cressey      Director                                 August 9, 1995
-----------------------
Brian C. Cressey

/s/Charles H. Gonzales   Director                                 August 9, 1995
-----------------------
Charles H. Gonzales

/s/Michael A. Jeffries   Director                                 August 9, 1995
-----------------------
Michael A. Jeffries

/s/Gerard M. Martin      Director                                 August 9, 1995
-----------------------
Gerard M. Martin

/s/Frank M. McCord       Director                                 August 9, 1995
-----------------------
Frank M. McCord

                                       6

<PAGE>

/s/Raymond N. Noveck     Director                                 August 9, 1995
-----------------------
Raymond N. Noveck

/s/Rocco A. Ortenzio     Director                                 August 9, 1995
-----------------------
Rocco A. Ortenzio

/s/Robert A. Ortenzio    Director                                 August 9, 1995
-----------------------
Robert A. Ortenzio

/s/Barry M. Portnoy      Director                                 August 9, 1995
-----------------------
Barry M. Portnoy

/s/LeRoy S. Zimmerman    Director                                 August 9, 1995
-----------------------
LeRoy S. Zimmerman

/s/Ernest A. Schofield   Senior Vice President, Chief             August 9, 1995
-----------------------   Financial Officer and Chief
Ernest A. Schofield       Accounting Officer (Principal
                          Financial and Accounting
                          Officer)

                                    7

<PAGE>

                               EXHIBIT INDEX


   Exhibit                                                     Sequentially
    Number                     Description                     Numbered Page
    ------                     -----------                     -------------
     3.1        Restated Certificate of Incorporation of the
                Company dated March 6, 1987, together with
                Certificate of Amendment of Certificate of
                Incorporation dated January 6, 1992
                (incorporated by reference to Exhibit 3.1 to
                the Company's Annual Report on Form 10-K for
                the year ended May 31, 1994).

    3.2         Certificate of Amendment of Restated
                Certificate of Incorporation dated September 12,
                1994 (incorporated by reference to
                Exhibit 4.2  to the Company's Registration
                Statement on Form S-8 filed with the
                Securities Exchange Commission on
                September 29, 1994).

   *3.3         Certificate of Amendment of Restated
                Certificate of Incorporation dated July 6,
                1995.

    3.4         Certificate of Designation of Series A Junior
                Participating Preferred Stock dated September 16,
                1994 (incorporated by reference to
                Exhibit 4.3  to the Company's Registration
                Statement on Form S-8 filed with the
                Securities Exchange Commission on
                September 29, 1994).

    3.5         Amended and Restated Bylaws of the Company
                dated as of February 28, 1987, together with
                Amendment to Bylaws Section 9.1.1 dated
                August 30, 1993 (incorporated by reference to
                Exhibit 3.2 to the Company's Annual Report on
                Form 10-K for the year ended May 31, 1994).

    3.6         Rights Agreement, dated as of September 15,
                1994, between the Company and Chemical Trust
                Company of California, as Rights Agent,
                specifying the terms of the rights to
                purchase the Company's Series A Junior
                Participating Preferred Stock, and the
                exhibits thereto (incorporated by reference
                to Exhibit 1 to the Company's Registration
                Statement on Form 8-A dated September 16,
                1994).

   *4.1         Continental Medical Systems, Inc. 1986 Stock
                Option Plan (as amended and restated
                effective December 1, 1991), Amendment No. 1
                to Continental Medical Systems, Inc. 1986
                Stock Option Plan, Amendment No. 2 to
                Continental Medical Systems, Inc. 1986 Stock
                Option Plan and form of option agreement.

   *4.2         Continental Medical Systems, Inc. 1989 Non-
                Employee Directors' Stock Option Plan (as
                amended and restated effective December 1,
                1991) and form of option agreement.

   *4.3         Continental Medical Systems, Inc. 1992 CEO
                Stock Option Plan, Amendment No. 1 to
                Continental Medical Systems, Inc. 1992 CEO
                Stock Option Plan and form of option
                agreement.

   *4.4         Continental Medical Systems, Inc. 1993
                Nonqualified Stock Option Plan, Amendment No. 1
                to Continental Medical Systems, Inc. 1993
                Nonqualified Stock Option Plan, Amendment No. 2
                to Continental Medical Systems, Inc. 1993
                Nonqualified Stock Option Plan and form of
                option agreement.

                                  8


<PAGE>

   *4.5         Continental Medical Systems, Inc. 1994 Stock
                Option Plan and form of option agreement.

   *5.1         Opinion of Vinson & Elkins L.L.P.

   23.1         Consent of Vinson & Elkins L.L.P. (set forth
                in Exhibit 5.1).

  *23.2         Consent of Arthur Andersen LLP.


  *23.3         Consent of BDO Seidman LLP.

   24.1         Powers of Attorney (set forth on signature
                pages).

__________________
*  Filed herewith.

                                   9
[{"type": "S-8", "sequence": "1", "description": "S-8", "secsgml_size_bytes": 27668}]
AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON AUGUST 9, 1995
                                              Registration No. 33-
==============================================================================

                                UNITED STATES
                     SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
                                _________________

                                    FORM S-8
                              REGISTRATION STATEMENT
                                     UNDER
                            THE SECURITIES ACT OF 1933
                                _________________

                       HORIZON/CMS HEALTHCARE CORPORATION
             (Exact name of registrant as specified in its charter)

              DELAWARE                                     91-1346899
   (State or other jurisdiction of                      (I.R.S. Employer
    incorporation or organization)                     Identification No.)

                 6001 INDIAN SCHOOL ROAD, N.E., SUITE 530
                     ALBUQUERQUE, NEW MEXICO  87110

        (Address of principal executive offices, including zip code)
                             _________________

         CONTINENTAL MEDICAL SYSTEMS, INC. 1986 STOCK OPTION PLAN
            CONTINENTAL MEDICAL SYSTEMS, INC. 1989 NON-EMPLOYEE
                      DIRECTORS'  STOCK OPTION PLAN
       CONTINENTAL MEDICAL SYSTEMS, INC. 1992 CEO STOCK OPTION PLAN
   CONTINENTAL MEDICAL SYSTEMS, INC. 1993 NONQUALIFIED STOCK OPTION PLAN
         CONTINENTAL MEDICAL SYSTEMS, INC. 1994 STOCK OPTION PLAN

                        (Full title of the plans)

                                                        COPIES TO:

             SCOT SAUDER                           WILLIAM E. JOOR III
    SECRETARY AND GENERAL COUNSEL                 VINSON & ELKINS L.L.P.
  HORIZON/CMS HEALTHCARE CORPORATION               2300 FIRST CITY TOWER
 6001 INDIAN SCHOOL ROAD, N.E., SUITE 530              1001 FANNIN
        ALBUQUERQUE, NM 87110                   HOUSTON, TEXAS  77002-6760
           (505) 881-4961                             (713) 758-2582
   (Name, address and telephone number,
including area code, of agent for service)

                      CALCULATION OF REGISTRATION FEE
==================================================================================================
       Title of                            Proposed maximum  Proposed maximum
   securities to be          Amount to be   offering price      aggregate           Amount of
     registered               registered      per share(1)   offering price(1)  registration fee
--------------------------------------------------------------------------------------------------
Common Stock, par value
 $.001 per share(2).......     3,765,586         $22.44         $84,499,750          $29,138
==================================================================================================
(1) Estimated solely for purposes of calculating the registration fee in
    accordance with Rule 457(h) on the basis of the price of securities
    of the same class, as determined in accordance with Rule 457(c), using
    the average of the high and low prices reported on the New York Stock
    Exchange for the Registrant's Common Stock on August 4, 1995.

(2) This Registration Statement also pertains to rights to purchase shares
    of Series A Junior Participating Preferred Stock of the Registrant.
    One right is attached to and trades with each share of Common Stock
    of the Registrant.  Until the occurrence of certain events, the
    rights are not exercisable and will not be evidenced or transferred
    apart from the Common Stock.
==============================================================================
PART II
            INFORMATION REQUIRED IN THE REGISTRATION STATEMENT

ITEM 3.   INCORPORATION OF DOCUMENTS BY REFERENCE.

          The following documents, which have been filed with the Securities
and Exchange Commission (the "Commission") by Horizon/CMS Healthcare
Corporation, a Delaware corporation (the "Company"), are incorporated herein
by reference and made a part hereof:

          (a)      Annual Report on Form 10-K for the fiscal year ended
                   May 31, 1994, as amended by Amendment No. 1 on
                   Form 10-K/A dated October 25, 1994, Amendment No. 2
                   on Form 10-K/A dated April 10, 1995 and Amendment No. 3
                   on Form 10-K/A dated June 2, 1995;

          (b)      Quarterly Report on Form 10-Q for the quarter ended
                   August 31, 1994, as amended by Amendment No. 1 on
                   Form 10-Q/A dated June 2, 1995;

          (c)      Quarterly Report on Form 10-Q for the quarter ended
                   November 30, 1994, as amended by Amendment No. 1 on
                   Form 10-Q/A dated June 2, 1995;

          (d)      Quarterly Report on Form 10-Q for the quarter ended
                   February 28, 1995, as amended by Amendment No. 1 on
                   Form 10-Q/A dated May 18, 1995, Amendment No. 2 on
                   Form 10-Q/A dated May 19, 1995 and Amendment No. 3 on
                   Form 10-Q/A dated June 2, 1995;

          (e)      Current Reports on Form 8-K dated August 12, 1994 (as
                   amended by Amendment No. 1 on Form 8-K/A dated October 10,
                   1994 and Amendment No. 2 on Form 8-K/A dated June 2, 1995),
                   September 16, 1994, April 10, 1995, June 23, 1995 (as
                   amended by Amendment No. 1 on Form 8-K/A dated August 8,
                   1995), July 25, 1995 and July 25, 1995;

          (f)      Description of the Company's Common Stock, par value $.001
                   per share, contained in the Company's Registration Statement
                   on Form 8-A dated March 17, 1987, as amended by Amendment
                   No. 1 on Form 8-A/A dated June 23, 1994 and Amendment No. 2
                   on Form 8-A/A dated September 22, 1994; and

          (g)      Description of rights to purchase the Company's Series A
                   Junior Participating Preferred Stock, par value $.001 per
                   share, contained in the Company's Registration Statement
                   on Form 8-A dated September 16, 1994.

          All documents filed by the Company pursuant to Sections 13(a),
13(c), 14 and 15(d) of the Securities Exchange Act of 1934, as amended (the
"Exchange Act"), subsequent to the effective date of this Registration
Statement, prior to the filing of a post-effective amendment to this
Registration Statement indicating that all securities offered hereby have
been sold or deregistering all securities then remaining unsold, shall be
deemed to be incorporated by reference herein and to be a part hereof from
the date of filing of such documents.  Any statement contained herein or in
any document incorporated or deemed to be incorporated by reference herein
shall be deemed to be modified or superseded for purposes of this
Registration Statement to the extent that a statement contained in any other
subsequently filed document which also is or is deemed to be incorporated by
reference herein modifies or supersedes such statement.  Any such statement
so modified or superseded shall not be deemed to constitute a part of this
Registration Statement, except as so modified or superseded.

ITEM 4.   DESCRIPTION OF SECURITIES.

          Not applicable.

                                     2
ITEM 5.   INTERESTS OF NAMED EXPERTS AND COUNSEL.

          None.

          The audited consolidated financial statements and schedules of the
Company incorporated by reference in this Registration Statement, to the
extent and for the periods indicated in their reports, have been audited by
Arthur Andersen LLP, independent public accountants, and are included herein
in reliance upon the authority of said firm as experts in giving said reports.

          The combined financial statements of peopleCARE Heritage Group
incorporated by reference in this Registration Statement have been audited by
BDO Seidman LLP, independent certified public accountants, to the extent and
for the periods set forth in their report incorporated herein by reference,
and are incorporated herein in reliance upon such report given upon the
authority of said firm as experts in auditing and accounting.

ITEM 6.   INDEMNIFICATION OF DIRECTORS AND OFFICERS.

          Under Section 145 of the General Corporation Law of the State of
Delaware (the "DGCL"), a Delaware corporation has the power, under specified
circumstances, to indemnify its directors, officers, employees and agents in
connection with threatened, pending or completed actions, suits or
proceedings, whether civil, criminal, administrative or investigative (other
than an action by or in right of the corporation), brought against them by
reason of the fact that they were or are such directors, officers, employees
or agents, against expenses, judgments, fines and amounts paid in settlement
actually and reasonably incurred in any such action, suit or proceeding.
Article XIV of the Company's Restated Certificate of Incorporation together
with Article IX of its Bylaws provide for indemnification of each person who
is or was made a party to any actual or threatened civil, criminal,
administrative or investigative action, suit or proceeding because such
person is or was an officer or director of the Company or is a person who is
or was serving at the request of the Company as a director, officer, employee
or agent of another corporation or of a partnership, joint venture trust or
other enterprise, including service relating to employee benefit plans, to
the fullest extent permitted by the DGCL as it existed at the time the
indemnification provisions of the Company's Restated Certificate of
Incorporation and the Bylaws were adopted or as may be thereafter amended.
Article IX of the Company's Bylaws and Article XIV of its Restated
Certificate of Incorporation expressly provide that they are not the
exclusive methods of indemnification.

          Article IX of the Bylaws and Article XIV of the Company's Restated
Certificate of Incorporation also provide that the Company may maintain
insurance, at its own expense, to protect itself and any director, officer,
employee or agent of the Company or of another entity against any expense,
liability or loss, regardless of whether the Company would have the power to
indemnify such person against such expense, liability or loss under the DGCL.

          Section 102(b)(7) of the DGCL provides that a certificate of
incorporation may contain a provision eliminating or limiting the personal
liability of a director to the corporation or its stockholders for monetary
damages for breach of fiduciary duty as a director, provided that such
provision shall not eliminate or limit the liability of a director (i) for
any breach of the director's duty of loyalty to the corporation or its
stockholders, (ii) for acts or omissions not in good faith or which involve
intentional misconduct or a knowing violation of law, (iii) under Section 174
of the DGCL (relating to liability for unauthorized acquisitions or
redemptions of, or dividends on, capital stock) or (iv) for any transaction
from which the director derived an improper personal benefit.  Article XI of
the Company's Restated Certificate of Incorporation contains such a provision.

ITEM 7.   EXEMPTION FROM REGISTRATION CLAIMED.

          Not applicable.

                                      3
ITEM 8.   EXHIBITS.

          3.1      Restated Certificate of Incorporation of the Company dated
                   March 6, 1987, together with Certificate of Amendment of
                   Certificate of Incorporation dated January 6, 1992
                   (incorporated by reference to Exhibit 3.1 to the Company's
                   Annual Report on Form 10-K for the year ended May 31, 1994).

          3.2      Certificate of Amendment of Restated Certificate of
                   Incorporation dated September 12, 1994  (incorporated by
                   reference to Exhibit 4.2 to the Company's Registration
                   Statement on Form S-8  filed with the Securities and Exchange
                   Commission on September 29, 1994).

         *3.3      Certificate of Amendment of Restated Certificate of
                   Incorporation dated July 6, 1995.

          3.4      Certificate of Designation of Series A Junior Participating
                   Preferred Stock dated September 16, 1994 (incorporated by
                   reference to Exhibit 4.3 to the Company's Registration
                   Statement on Form S-8  filed with the Securities and Exchange
                   Commission on September 29, 1994).

          3.5      Amended and Restated Bylaws of the Company dated as of
                   February 28, 1987, together with Amendment to Bylaws Section
                   9.1.1 dated August 30, 1993 (incorporated by reference to
                   Exhibit 3.2 to the Company's Annual Report on Form 10-K for
                   the year ended May 31, 1994).

          3.6      Rights Agreement, dated as of September 15, 1994, between the
                   Company and Chemical Trust Company of California, as Rights
                   Agent, specifying the terms of the rights to purchase the
                   Company's Series A Junior Participating Preferred Stock, and
                   the exhibits thereto (incorporated by reference to Exhibit 1
                   to the Company's Registration Statement on Form 8-A dated
                   September 16, 1994).

         *4.1      Continental Medical Systems, Inc. 1986 Stock Option Plan (as
                   amended and restated effective December 1, 1991), Amendment
                   No. 1 to Continental Medical Systems, Inc. 1986 Stock Option
                   Plan, Amendment No. 2 to Continental Medical Systems, Inc.
                   1986 Stock Option Plan and form of option agreement.

         *4.2      Continental Medical Systems, Inc. 1989 Non-Employee
                   Directors' Stock Option Plan (as amended and restated
                   effective December 1, 1991) and form of option agreement.

         *4.3      Continental Medical Systems, Inc. 1992 CEO Stock Option Plan,
                   Amendment No. 1 to Continental Medical Systems, Inc. 1992 CEO
                   Stock Option Plan and form of option agreement.

         *4.4      Continental Medical Systems, Inc. 1993 Nonqualified Stock
                   Option Plan,Amendment No. 1 to Continental Medical Systems,
                   Inc. 1993 Nonqualified Stock Option Plan, Amendment No. 2 to
                   Continental Medical Systems, Inc. 1993 Nonqualified Stock
                   Option Plan and form of option agreement.

         *4.5      Continental Medical Systems, Inc. 1994 Stock Option Plan and
                   form of option agreement.

         *5.1      Opinion of Vinson & Elkins L.L.P.

         23.1      Consent of Vinson & Elkins L.L.P. (set forth in Exhibit 5.1).

        *23.2      Consent of Arthur Andersen LLP.

        *23.3      Consent of BDO Seidman LLP.

         24.1      Powers of Attorney (set forth on signature pages).
       _______________
       *  Filed herewith.

                                      4
ITEM 9.   UNDERTAKINGS

          The Company hereby undertakes:

          (1)      To file, during any period in which offers or sales are
being made, a post-effective amendment to this Registration Statement:

                   (a)   To include any prospectus required by Section 10(a)(3)
          of the Securities Act of 1933, as amended (the "Securities Act");

                   (b)   To reflect in the prospectus any facts or events
          arising after the effective date of the Registration Statement (or the
          most recent post-effective amendment thereof) which, individually or
          in the aggregate, represent a fundamental change in the information
          set forth in this Registration Statement;

                   (c)   To include any material information with respect to
          the plan of distribution not previously disclosed in this Registration
          Statement or any material change to such information in this
          Registration Statement;

PROVIDED, HOWEVER, that paragraphs (1)(a) and (1)(c) do not apply if the
information required to be included in a post-effective amendment by those
paragraphs is contained in periodic reports filed by the Company pursuant to
Section 13 or Section 15(d) of the Exchange Act that are incorporated by
reference in this Registration Statement.

          (2)      That, for the purpose of determining any liability under
the Securities Act, each such post-effective amendment shall be deemed to be
a new registration statement relating to the securities offered therein, and
the offering of such securities at that time shall be deemed to be the
initial bona fide offering thereof.

          (3)      To remove from registration by means of a post-effective
amendment any of the securities being registered which remain unsold at the
termination of the offering.

          (4)      That, for the purposes of determining any liability under
the Securities Act, each filing of the Company's annual report pursuant to
Section 13(a) or Section 15(d) of the Exchange Act (and, where applicable,
each filing of an employee benefit plan's annual report pursuant to Section
15(d) of the Exchange Act) that is incorporated by reference in this
Registration Statement shall be deemed to be a new registration statement
relating to the securities offered herein, and the offering of such
securities at that time shall be deemed to be the initial bona fide offering
thereof.

          Insofar as indemnification for liabilities arising under the
Securities Act may be permitted to directors, officers and controlling
persons of the Company pursuant to the foregoing provisions, or otherwise,
the Company has been advised that in the opinion of the Commission such
indemnification is against public policy as expressed in the Securities Act
and is, therefore, unenforceable.  In the event that a claim for
indemnification against such liabilities (other than the payment by the
Company of expenses incurred or paid by a director, officer or controlling
person of the Company in the successful defense of any action, suit or
proceeding) is asserted by such director, officer or controlling person in
connection with the securities being registered, the Company will, unless in
the opinion of its counsel the matter has been settled by controlling
precedent, submit to a court of appropriate jurisdiction the question whether
such indemnification by it is against public policy as expressed in the
Securities Act and will be governed by the final adjudication of such issue.

                                       5
SIGNATURES

          Pursuant to the requirements of the Securities Act, the Company
certifies that it has reasonable grounds to believe that it meets all of the
requirements for filing on Form S-8 and has duly caused this Registration
Statement to be signed on its behalf by the undersigned, thereunto duly
authorized, in the City of Albuquerque, State of New Mexico, on August 9,
1995.

                                  HORIZON/CMS HEALTHCARE CORPORATION

                                  By: /s/ Ernest A. Schofield
                                      -----------------------------------
                                      Ernest A. Schofield
                                      Senior Vice President

          KNOW ALL MEN BY THESE PRESENTS, that each person whose signature
appears below constitutes and appoints Klemett L. Belt, Jr., Ernest A.
Schofield and Scot Sauder, or any of them, his true and lawful
attorney-in-fact and agent, with full power of substitution, for him and in
his name, place and stead, in any and all capacities, to sign any and all
amendments (including post-effective amendments) to this Registration
Statement, and to file the same with all exhibits thereto, and other
documents in connection therewith, with the Securities and Exchange
Commission, granting unto said attorney-in-fact and agent full power and
authority to do and perform each and every act and thing requisite and
ratifying and confirming all that said attorney-in-fact and agent or his
substitute or substitutes may lawfully do or cause to be done by virtue
hereof.

          Pursuant to the requirements of the Securities Act, this
Registration Statement has been signed by the following persons in the
capacities indicated on the dates indicated.

       Signature                      Title                            Date
       ---------                      -----                            ----
/s/Neal M. Elliott       President, Chief Executive Officer       August 9, 1995
-----------------------   and Chairman of the Board of Directors
Neal M. Elliott           (Principal Executive Officer)

/s/Klemett L. Belt, Jr.  Director                                 August 9, 1995
-----------------------
Klemett L. Belt, Jr.

/s/Russell L. Carson     Director                                 August 9, 1995
-----------------------
Russell L. Carson

/s/Brian C. Cressey      Director                                 August 9, 1995
-----------------------
Brian C. Cressey

/s/Charles H. Gonzales   Director                                 August 9, 1995
-----------------------
Charles H. Gonzales

/s/Michael A. Jeffries   Director                                 August 9, 1995
-----------------------
Michael A. Jeffries

/s/Gerard M. Martin      Director                                 August 9, 1995
-----------------------
Gerard M. Martin

/s/Frank M. McCord       Director                                 August 9, 1995
-----------------------
Frank M. McCord

                                       6
/s/Raymond N. Noveck     Director                                 August 9, 1995
-----------------------
Raymond N. Noveck

/s/Rocco A. Ortenzio     Director                                 August 9, 1995
-----------------------
Rocco A. Ortenzio

/s/Robert A. Ortenzio    Director                                 August 9, 1995
-----------------------
Robert A. Ortenzio

/s/Barry M. Portnoy      Director                                 August 9, 1995
-----------------------
Barry M. Portnoy

/s/LeRoy S. Zimmerman    Director                                 August 9, 1995
-----------------------
LeRoy S. Zimmerman

/s/Ernest A. Schofield   Senior Vice President, Chief             August 9, 1995
-----------------------   Financial Officer and Chief
Ernest A. Schofield       Accounting Officer (Principal
                          Financial and Accounting
                          Officer)

                                    7
EXHIBIT INDEX

   Exhibit                                                     Sequentially
    Number                     Description                     Numbered Page
    ------                     -----------                     -------------
     3.1        Restated Certificate of Incorporation of the
                Company dated March 6, 1987, together with
                Certificate of Amendment of Certificate of
                Incorporation dated January 6, 1992
                (incorporated by reference to Exhibit 3.1 to
                the Company's Annual Report on Form 10-K for
                the year ended May 31, 1994).

    3.2         Certificate of Amendment of Restated
                Certificate of Incorporation dated September 12,
                1994 (incorporated by reference to
                Exhibit 4.2  to the Company's Registration
                Statement on Form S-8 filed with the
                Securities Exchange Commission on
                September 29, 1994).

   *3.3         Certificate of Amendment of Restated
                Certificate of Incorporation dated July 6,
                1995.

    3.4         Certificate of Designation of Series A Junior
                Participating Preferred Stock dated September 16,
                1994 (incorporated by reference to
                Exhibit 4.3  to the Company's Registration
                Statement on Form S-8 filed with the
                Securities Exchange Commission on
                September 29, 1994).

    3.5         Amended and Restated Bylaws of the Company
                dated as of February 28, 1987, together with
                Amendment to Bylaws Section 9.1.1 dated
                August 30, 1993 (incorporated by reference to
                Exhibit 3.2 to the Company's Annual Report on
                Form 10-K for the year ended May 31, 1994).

    3.6         Rights Agreement, dated as of September 15,
                1994, between the Company and Chemical Trust
                Company of California, as Rights Agent,
                specifying the terms of the rights to
                purchase the Company's Series A Junior
                Participating Preferred Stock, and the
                exhibits thereto (incorporated by reference
                to Exhibit 1 to the Company's Registration
                Statement on Form 8-A dated September 16,
                1994).

   *4.1         Continental Medical Systems, Inc. 1986 Stock
                Option Plan (as amended and restated
                effective December 1, 1991), Amendment No. 1
                to Continental Medical Systems, Inc. 1986
                Stock Option Plan, Amendment No. 2 to
                Continental Medical Systems, Inc. 1986 Stock
                Option Plan and form of option agreement.

   *4.2         Continental Medical Systems, Inc. 1989 Non-
                Employee Directors' Stock Option Plan (as
                amended and restated effective December 1,
                1991) and form of option agreement.

   *4.3         Continental Medical Systems, Inc. 1992 CEO
                Stock Option Plan, Amendment No. 1 to
                Continental Medical Systems, Inc. 1992 CEO
                Stock Option Plan and form of option
                agreement.

   *4.4         Continental Medical Systems, Inc. 1993
                Nonqualified Stock Option Plan, Amendment No. 1
                to Continental Medical Systems, Inc. 1993
                Nonqualified Stock Option Plan, Amendment No. 2
                to Continental Medical Systems, Inc. 1993
                Nonqualified Stock Option Plan and form of
                option agreement.

                                  8
*4.5         Continental Medical Systems, Inc. 1994 Stock
                Option Plan and form of option agreement.

   *5.1         Opinion of Vinson & Elkins L.L.P.

   23.1         Consent of Vinson & Elkins L.L.P. (set forth
                in Exhibit 5.1).

  *23.2         Consent of Arthur Andersen LLP.

  *23.3         Consent of BDO Seidman LLP.

   24.1         Powers of Attorney (set forth on signature
                pages).

__________________
*  Filed herewith.

                                   9