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): ~~August~~October 71, 2001

Health Risk Management, Inc.
(Exact Name of Registrant as Specified in Its Charter)

Minnesota
(State of Other Jurisdiction of Incorporation)

0-18902	41-1407407
(Commission File Number)	(I.R.S. Employer Identification No.)

10900 Hampshire Avenue S.
Minneapolis, Minnesota 55438
(Address of Principal Executive Offices) (Zip Code)

(952) 829-3500
(Registrant’s Telephone Number, Including Area Code)

Not Applicable
(Former Name or Former Address, if Changed Since Last Report)

Item 3. Bankruptcy or Receivership

On August 7, 2001 Health Risk Management, Inc. (the “Company”), along with certain of its subsidiaries, namely HRM Claim Management, Inc., Institute for Healthcare Quality, Inc., and Health Benefit Reinsurance, Inc. (collectively, the “Subsidiaries”), filed voluntary petitions for reorganization under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of Minnesota (the “Bankruptcy Court”). The Company and the Subsidiaries are presently operating their businesses as debtors-in-possession and hence are subject to the jurisdiction of the Bankruptcy Court while a plan of reorganization is formulated. As a debtor-in-possession, the Company is authorized to continue to operate its business during the Chapter 11 proceeding. In addition, the Bankruptcy Code imposes an automatic stay that precludes creditors and other claimants from taking action against the Company and the Subsidiaries outside of the Chapter 11 proceeding. The Company and the Subsidiaries intend to seek to formulate a plan for approval by the Bankruptcy Court which might involve one or more structured sales of their businesses and assets. As such, and in light of the current financial condition of the Company and Subsidiaries, it is uncertain if any value or proceeds resulting from any plan of reorganization, including any structured sales in connection therewith, will be available to the Company’s shareholders.

Item 5. Other Events

As previously reported, ~~the~~on ~~Company’s~~August ~~HMO~~7, ~~subsidiary~~2001, ~~HRM~~ Health ~~Plans~~Risk ~~(PA)~~Management, Inc. (the “~~Plan~~Company”), ~~which~~along iswith ~~not~~certain ~~included~~of inits ~~the~~subsidiaries, ~~Company’s~~namely ~~Chapter~~HRM ~~11 bankruptcy~~Claim ~~filing~~Management, ~~but~~Inc., asInstitute ~~noted~~for ~~below~~Healthcare Quality, isInc., ~~now~~and ~~subject~~Health toBenefit Reinsurance, anInc. ~~Order~~(collectively, ofthe ~~Rehabilitation~~“Subsidiaries”), ~~did not~~filed ~~meet~~voluntary ~~certain~~petitions for ~~minimum~~reorganization ~~statutory-based~~under ~~net~~Chapter ~~worth~~11 ~~requirements~~of ~~and~~the ~~became subject~~United toStates anBankruptcy ~~Order~~Code ofin ~~Supervision by~~ the United ~~Department~~States ofBankruptcy ~~Insurance~~Court offor the ~~Commonwealth~~ District of ~~Pennsylvania~~Minnesota (the “~~DOI~~Bankruptcy Court”). On onAugust ~~July 3~~9, 2001, the Company and ~~was~~U.S. atBank ~~risk~~National Association, a pre-petition secured lender of the ~~becoming~~Company, ~~subject~~entered tointo ana ~~Order~~Debtor ofin ~~Rehabilitation~~Possession byRevolving ~~the~~Credit ~~DOI~~and ~~which~~Term ~~would~~Loan Agreement ~~place~~providing the ~~Plan~~ ~~into~~Company ~~receivership~~with ~~and~~up ~~control~~to byan ~~the~~additional ~~DOI~~$1. 0 million in ~~While~~borrowings ~~under~~to fund the ~~Order~~actual ofand ~~Supervision,~~necessary ~~the~~costs ~~Plan~~and ~~completed~~expenses onof ~~August~~operating 1,the ~~2001~~Company’s and the ~~transfer~~Subsidiaries’ ~~and~~businesses ~~sale~~in totheir aChapter ~~third~~11 ~~party~~cases. The ~~acceptable~~Bankruptcy toCourt ~~the~~has ~~DOI~~approved ~~certain of~~this ~~the~~arrangement. The ~~Plan’s~~Bankruptcy ~~contract~~Court ~~rights~~has also ~~with~~approved the ~~Pennsylvania~~Company ~~Department~~retaining ofHarpeth ~~Public~~Capital ~~Welfare~~Atlanta LLC, an investment ~~(“DPW”)~~banker, ~~and~~to ~~member~~assess ~~information~~strategic ~~related~~options toincluding ~~the~~sale ~~Plan’s~~of ~~Oaktree~~one ~~unit~~or ~~for~~more parts of the Company. Qualified ~~five~~potential buyers ~~county~~have ~~Philadelphia~~been ~~metropolitan~~identified, ~~area~~and ~~for~~the ~~transition~~Company ofis ~~such~~proceeding ~~members~~on toan ~~the~~accelerated basis to ~~third~~seek ~~party’s~~to ~~HMO~~negotiate and complete one or more transactions. ItAs reported previously, it is, ~~not~~however, ~~anticipated~~uncertain ~~that~~if ~~the~~any ~~Company~~value or ~~its~~proceeds ~~shareholders~~resulting ~~will~~from ~~receive~~ any of such ~~proceeds~~ ~~received~~transactions bywill ~~the~~be available ~~Plan~~to inthe ~~this~~Company’s ~~sale~~shareholders.

OnThe ~~August~~Company 1,has ~~2001,~~also ~~the~~retained ~~DOI~~two ~~obtained~~professional anfirms ~~Order~~to ofassist ~~Rehabilitation~~the ~~which~~Company ~~placed~~in the ~~Plan~~bankruptcy ~~into~~process. Kurron ~~rehabilitation~~Shares of America, aInc. ~~form~~is ofproviding ~~receivership~~a ~~pursuant~~Chief toRestructuring ~~which~~Officer ~~all~~and a Financial ~~possession~~Restructuring ~~and~~Officer. Ron ~~control~~Weitz, a principal of Kurron, is the ~~Plan~~new isChief ~~now~~Restructuring ~~with~~Officer. He ~~the~~has ~~DOI~~more ~~and~~than ~~any~~25 ~~actions,~~years ~~whether~~of senior bymanagement ~~creditors~~experience orin ~~others,~~a ~~against~~variety ~~the~~of ~~Plan~~health orcare ~~interfering~~organizations. J. ~~with~~H. ~~the~~Cohn ~~DOI’s possession~~LLP ~~and~~is ~~rights~~providing tofinancial advisory ~~the~~services. The ~~assets~~Bankruptcy ~~and~~Court has ~~property~~approved these retentions. Both of these firms had provided services to the ~~Plan~~Company ~~are~~prior ~~enjoined~~to by the ~~Order~~Company’s offiling for ~~Rehabilitation~~Chapter 11 protection.

~~Also,~~As onpreviously ~~August 1~~reported, ~~2001,~~ the ~~Company~~Commonwealth ~~entered~~of ~~into~~Pennsylvania’s aDepartment ~~letter~~ of ~~intent to transfer~~Insurance ~~certain~~(the ~~contract~~“DOI”) ~~rights~~obtained ~~and~~an ~~member~~Order ~~information~~of ~~relating~~Rehabilitation tofor the ~~Plan~~Company’s ~~remaining~~HMO ~~HealthMATE~~subsidiary, ~~unit~~HRM ~~for~~Health ~~the~~Plans ~~Harrisburg~~(PA), ~~Pennsylvania Lehigh/Capital region~~Inc. ~~Even~~ ~~if such sale of~~ (the “Plan’s”) ~~remaining HMO~~on ~~activities~~August ~~occurs~~1, ~~now~~2001. The ~~while~~DOI ~~the~~then ~~Plan~~obtained isan inOrder ~~rehabilitation~~of ~~and~~Liquidation on ~~under~~September ~~the control~~20, of2001, ~~the~~effective ~~DOI~~October 1, it2001. It is ~~not~~unlikely ~~anticipated~~ that the Company ~~or its shareholders~~ will receive any ~~of the~~ proceeds from this ~~such sale~~liquidation.

OnIn ~~July~~lieu ~~30,~~of ~~2001,~~filing ~~the~~Form ~~Trustees~~10-Q ofquarterly ~~the~~or ~~University~~Form of10-K ~~Pennsylvania~~annual reports, asthe ~~owner and~~Company ~~operator~~intends ofto ~~The~~file ~~Hospital~~with of the ~~University~~SEC ofmonthly ~~Pennsylvania~~financial ~~and~~information ~~other~~filed ~~members~~by ~~of the~~it ~~University~~with ofthe Bankruptcy ~~Pennsylvania~~Court. Included ~~Health~~as ~~System,~~exhibits to ~~including~~this ~~Presbyterian~~Form ~~Medical Center,~~8-K ~~Phoenixville~~are ~~Hospital,~~monthly ~~Pennsylvania~~financials ~~Hospital,~~for ~~Clinical~~August ~~Care Associates~~2001, ~~Clinical~~ ~~Care Associates~~ as ~~successor~~listed in ~~interest~~Item to7 below. The ~~Benjamin~~financial ~~Franklin~~statements ~~Clinic~~filed ~~and~~with ~~Wissahickon~~this ~~Hospice,~~report ~~filed~~do anot ~~lawsuit~~include ~~against~~ the ~~Company~~results ~~and~~of the Plan ~~in United~~operations ~~States~~which, ~~District~~as noted ~~Court~~above, ~~for~~was ~~the~~placed ~~Eastern~~in ~~District~~rehabilitation ofby the Pennsylvania DOI. ~~The~~However, ~~complaint~~under ~~alleges~~a ~~breach~~contract bywith the ~~Plan~~DOI, ~~of participating provider agreements and failure to pay amounts due under~~ the ~~agreements~~Company ~~for~~is ~~inflation~~adjudicating ~~increases~~claims and ~~medical~~providing related services ~~provided~~for byclaims ~~the~~that ~~plaintiffs~~predated ~~to Medicaid subscribers enrolled in managed care plans administered by~~ the ~~Company~~DOI ~~and~~taking ~~the~~possession ~~Plan~~ and ~~seeks~~control ~~damages in excess~~ of ~~$7,500,000~~the Plan. AsThe ~~noted~~revenues ~~above, the Company’s Chapter 11 bankruptcy filing stays this action as against the Company,~~ and ~~the~~costs ~~Order~~ of ~~Rehabilitation~~ ~~received~~providing bythese services ~~the~~are ~~Pennsylvania~~included ~~DOI~~in ~~stays~~these ~~this~~financial ~~action as against the Plan~~statements.

~~As previously~~Item ~~reported, Loop Corp~~7.~~, which entered into an agreement with the~~ ~~Company~~Financial onStatements ~~May 15, 2001 to provide funding of approximately $6 million, provided only $3 million via check but subsequently thereto indicated that it may seek rescission of the agreement~~ and recovery of the funds advanced thereunder. On July 31, 2001, Loop Corp. brought suit against the Company in the Illinois Circuit Court of Cook County, Illinois, seeking rescission of the agreement and recovery of the amount advanced based, in part, on mistake as to the true financial condition of the Company at the time such contract was entered into and funds advanced. As noted above, this and other actions against the Company are stayed by the Company’s Chapter 11 bankruptcy filing.Exhibits

See Exhibit Index on page following Signatures

[insert the following after the signature block]

EXHIBIT INDEX
to
FORM 8-K

HEALTH RISK MANAGEMENT, INC.

Exhibit No.	Description

99.1	Consolidated Comparative Balance Sheet as of August 31, 2001 as filed with the Bankruptcy Court
99.2	Profit and Loss Statement for the period from August 7 to August 31, 2001 as filed with the Bankruptcy Court
99.3	Statement of Cash Receipts and Disbursements for the period from August 7 to August 31, 2001 as filed with the Bankruptcy Court

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.

	HEALTH RISK MANAGEMENT, INC
Date: August 8, 2001	By /s/ Leland G. LeBlanc
Date: October 5, 2001	By /s/ Leland G. LeBlanc
	Leland G. LeBlancChief Financial Officer

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