8-K

                                 UNITED STATES
                      SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, DC  20549


                                   FORM 8-K

                                CURRENT REPORT

                      PURSUANT TO SECTION 13 OR 15(D) OF
                    THE SECURITIES AND EXCHANGE ACT OF 1934


        DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): February 15, 2000


                        Commission file number 001-12055



                       PARACELSUS HEALTHCARE CORPORATION
            (Exact name of registrant as specified in its charter)





                CALIFORNIA                                   95-3565943
     (State or other jurisdiction of                       (IRS Employer
      incorporation or organization)                     Identification No.)


                 515 W. Greens Road, Suite 500, Houston, Texas
                   (Address of principal executive offices)



      77067                                            (281) 774-5100
    (Zip Code)                                (Registrant's telephone number,
                                                  including area code)















ITEM 5.  OTHER EVENTS

         On February 15, 2000, Paracelsus Healthcare Corporation (the "Company")
elected not to make the interest payment of  approximately  $16.3 million due on
the Company's $325 million 10% Senior Subordinated Notes due 2006 (the "Notes").
The  scheduled  interest  payment is subject to a 30-day  grace period that will
expire on March 16, 2000.

         The  Company  has  retained  the firm of Chase  Securities  Inc. as its
financial  advisor in  connection  with the  exploration  of  alternatives  with
respect to  Paracelsus'  capital  structure.  The  Company  intends to engage in
discussions with the holders of the Notes.

         On February 14, 2000,  the Company  issued a press  release,  a copy of
which is included in Exhibit 99.1 to this Form 8-K and is incorporated herein by
reference.

Item 7.  Financial Statements and Exhibits.

         (c) Exhibits.

             Exhibit 99.1 Press  Release  dated  February 14, 2000 issued by the
Company.

                                 SIGNATURE

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 thereunto duly authorized.

                                       Paracelsus Healthcare Corporation
                                                 (Registrant)


Dated: February 15, 2000                By: /S/ LAWRENCE A. HUMPHREY
                                       ----------------------------------
                                             Lawrence A. Humphrey
                                            Executive Vice President,
                                          & Chief Financial Officer

EX-99

                                                                    Exhibit 99.1


FOR IMMEDIATE RELEASE:                            CONTACT: Deborah H. Frankovich
                                                       Senior Vice President and
                                                               Treasurer
                                                              281-774-5100

PARACELSUS HEALTHCARE CORPORATION COMMENTS ON OUTSTANDING INTEREST PAYMENT


         HOUSTON,  Texas, February 14, 2000 - Paracelsus Healthcare  Corporation
(NYSE:  PLS) today  announced  that the  scheduled  February  15, 2000  interest
payment of $16.25 million on its $325 million 10% Senior Subordinated Notes will
not be paid  tomorrow.  The  scheduled  interest  payment is subject to a 30-day
grace period that will expire on March 16, 2000.

         Additionally, Paracelsus has retained the firm of Chase Securities Inc.
as its financial advisor in connection with the exploration of alternatives with
respect to  Paracelsus'  capital  structure.  The  Company  intends to engage in
discussions with the holders of the $325 million Notes.

         Paracelsus Healthcare  Corporation,  a public company listed on the New
York Stock Exchange, was founded in 1981 and is headquartered in Houston, Texas.
Including  a hospital  partnership,  Paracelsus  presently  owns or  operates 10
hospitals  in  seven  states,  with a total of 1,287  beds.  Additional  Company
information  may  be  accessed  through   http://www.prnewswire.com   under  the
Company's name.

         Certain   statements  in  this  press   release  are   "forward-looking
statements"  made  pursuant  to  the  Safe  Harbor  provisions  of  the  Private
Securities Litigation Reform Act of 1995.  Forward-looking  statements involve a
number of risks and uncertainties.  Factors which may cause the Company's actual
results in future periods to differ  materially from forecast  results  include,
but  are  not  limited  to:  general  economic  and  business  conditions,  both
nationally and in the regions in which the Company operates;  industry capacity;
demographic  changes;  existing  government  regulations  and changes in, or the
failure  to  comply  with  government  regulations;  legislative  proposals  for
healthcare reform; the ability to enter into managed care provider  arrangements
on  acceptable  terms;  changes in Medicare and Medicaid  reimbursement  levels;
liabilities and other claims asserted against the Company; competition; the loss
of any  significant  customer;  changes in  business  strategy,  divestiture  or
development  plans;  the  ability to attract  and  retain  qualified  personnel,
including physicians; the continued listing of the Company's common stock on the
New York Stock Exchange;  the  availability  of capital at reasonable  terms and
conditions  to  fund  working  capital  requirements  and the  expansion  of the
Company's  business;  its continued  compliance with its existing debt covenants
and its ability to obtain waivers in the event of noncompliance;  the ability of
the  Company to  utilize  its tax  assets;  and the  ability  to  satisfactorily
restructure its balance sheet. Given these uncertainties,  prospective investors
are cautioned not to place undue  reliance on such  forward-looking  statements.
The Company is generally  not  required to, and does not  undertake to update or
revise its forward-looking statements.