UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 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): ~~September~~July 101, ~~2008~~ 2010

CORECARE SYSTEMS, INC.

(Exact Name of Registrant as Specified in Its Charter)

Delaware	000-24807	22-2840367
(State or Other Jurisdiction	(Commission	(IRS Employer
of Incorporation)	File Number)	Identification Number)


111 N. 49TH ST., Philadelphia, PA	19139
(Address of Principal Executive Offices)	(Zip Code)

Registrant’s telephone number, including area code: (215) 471-2358

N/A

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

ITEM 8 2.01 : ~~OTHER EVENTS~~ COMPLETION OF ACQUISITION OR DISPOSITION OF ASSETS:

OnSale ~~September~~of ~~10,~~4 ~~2008~~Acres ~~CoreCare~~of ~~Systems, Inc.~~Land; ~~subsidiary,~~Closure Westmeade Healthcare, Inc. (Westmeade), was sued by Alternative Behavioral Services, Inc. (ABS) a company owned by Psychiatric Solutions, Inc. (PSI) in the United States District Court for the Eastern District of ~~Pennsylvania~~ ~~for~~Adolescent ~~approximately~~Residential ~~$996,000. On~~Treatment ~~January~~Program; ~~12,~~License ~~2009 Westmeade~~Changes ~~Healthcare,~~– ~~Inc.~~Kirkbride ~~filed~~Chemical ~~counter~~Dependency ~~claims against ABS for $2,134,000~~Program.

~~Westmeade~~On ~~executed~~July a1, ~~clinical management~~2010 ~~contract~~Kirkbride ~~with~~Realty ~~ABS~~Corporation ~~effective~~(KRC) ~~November~~sold ~~14,~~4 ~~2005~~acres of land (the Market Street Parcel) to Children’s Hospital of Philadelphia (CHOP) for $2,300,000. ~~The contract~~This ~~was~~transaction ~~necessary~~required tothe ~~cure~~approval ~~certain~~of ~~operating~~the first mortgage holder, Kennedy Funding, Inc., and ~~staffing~~certain ~~deficiencies experienced~~subordinated bylien ~~Westmeade~~holders ~~due~~such toas the ~~bankruptcy~~City of ~~its~~Philadelphia ~~sister~~and ~~company~~the Unsecured Creditors Trust of the Kirkbride Center Chapter 11 Reorganization Plan. Proceeds were distributed primarily to the first mortgage holder according to terms previously negotiated in the mortgage documents. Kennedy Funding, Inc .holds a ~~psychiatric~~$14,600,000 ~~hospital~~first ~~and~~mortgage ~~residential~~on ~~drug~~the ~~and~~entire ~~alcohol~~20 ~~rehabilitation program~~acre ~~(2002-2004)~~Campus expiring October 1, 2010. Kennedy received $1,725,000 from the proceeds of the land sale. ~~The~~In ~~ABS~~January ~~contract~~2010 ~~provided~~the Campus was rezoned for acommercial ~~monthly management~~activity ~~fee~~on ~~and~~the ~~50%~~4 ofacres ~~Westmeade’s~~Market ~~Income~~Street ~~before~~Parcel ~~Taxes~~while ~~upon~~the ~~Westmeade achieving~~remaining a16 ~~certain~~acres ~~patient~~received ~~census~~institutional zoning status. ItIn ~~also~~February ~~provided~~of ~~ABS~~2010 ~~with~~the a4 ~~right~~ acres on Market Street was formally subdivided from the rest of ~~first~~the ~~refusal~~Campus to ~~purchase~~enable ~~Westmeade~~it to be transferred to CHOP.

~~ABS~~On isJune ~~suing~~17, ~~Westmeade~~2010 ~~for~~the Kirkbride Center and Kirkbride Realty Corporation reached a settlement agreement with the ~~alleged failure~~City of Philadelphia on its outstanding tax liabilities. These liabilities of over $10 Million accumulated from the Kirkbride Center’s 2002 Bankruptcy Plan. Under this agreement the City will extinguish all liabilities if approximately $3,000,000 in principal plus 5.5% interest is paid by May 31, 2011. The City also agreed to ~~pay~~release the ~~base~~Officers ~~management~~from ~~fees~~their guarantees under the Bankruptcy Plan, upon the payment of $100,000 within 30 days of the land sale. This release requires deferral of certain distributions to the principals until the City has been fully repaid. ~~reimbursable~~The ~~costs~~ Company must remain current on its City filings and ~~“profit~~tax ~~sharing”~~payments. The ~~under~~City received $301,017 from the ~~Management~~proceeds ~~Agreement~~of the land sale.

~~Subsequently~~On inJune ~~2007~~23, ~~Westmeade~~2010 ~~rejected PSI~~CoreCare ~~offer~~Systems, toInc. ~~purchase~~closed ~~assets~~the orAdolescent ~~increase~~Residential ~~its~~Treatment ~~profit~~Program ~~sharing~~operated ~~under~~through ~~the~~its ~~management contract~~subsidiary Westmeade Healthcare, Inc. ~~Westmeade’s~~The ~~position~~closure was isdue ~~that~~to ~~such~~low ~~events~~census ~~lead~~patterns tocaused ~~ABS subsequently~~by ~~terminating~~cutbacks in the ~~clinical~~institutionalization ~~management~~of ~~contract~~adolescents ~~effective~~needing ~~March~~treatment ~~3, 2008~~through managed care companies. CoreCare Systems has owned Westmeade since 1995.

AsDue ~~stated~~to inprolonged census volatility, Kirkbride Center reduced the ~~first~~licensed ~~paragraph~~capacity ~~above, Westmeade~~of ~~asserts~~its ~~that~~Chemical ~~ABS~~Dependency ~~failed~~Program to ~~perform~~improve ~~its~~operating ~~obligations~~efficiency ~~under~~on ~~the management~~November ~~agreement~~5, ~~and~~2009. Licensed ~~thus~~capacity ~~Westmeade~~was is124 ~~not~~detox ~~obligated~~and torehabilitation ~~make~~beds ~~the~~but ~~payments claimed~~decreased byto ~~ABS~~118 beds. ~~Westmeade~~ Due isto ~~counter~~high ~~suing~~census ~~ABS~~demand ~~for~~the ~~$2,134,000 in~~program’s ~~damages~~licensed ~~resulting~~capacity ~~from~~was ~~ABS~~expanded ~~breach~~on ofMay ~~contract~~21, ~~including~~2010 ~~deliberate~~to 154 detox and ~~intentional~~ ~~interference~~rehabilitation ~~with~~beds. Since ~~Westmeade’s~~that ~~strategic~~time ~~contractual~~program ~~relationships~~occupancy ~~as well~~has assteadily ~~defamation~~increased.

Counsel for the Parties have discussed the possibility of mediation with the Court and resolving the litigation through mediation leading to a settlement remains a possibility. However, management cannot at this time make any statement regarding the outcome of a potential session.

The Corporate Office of CoreCare Systems, Inc is located at the Blackwell Human Services Campus, 111 North 49th Street, Philadelphia, PA 19139. The Corporate Office can be reached at 215-471-2358. Information on the Company can be accessed at its web site. www.kirkbridecenter.com

SIGNATURE

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

		CORECARE SYSTEMS, INC.
		By:	/s/ Rose S. DiOttavio
			Rose S. DiOttavio,
Date:	~~May~~July 141, ~~2009~~2010		President & CEO

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