SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549
                                   ----------

                                    FORM 8-K

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

                         Date of Report January 22, 1998


                        HOSPITAL STAFFING SERVICES, INC.


          FLORIDA                    1-11131               59-2150637
(State or other jurisdiction of    (Commission           (I.R.S. Employer
 incorporation or organization)     File Number)       Identification Number)

                      6245 North Federal Highway, Suite 500
                       Fort Lauderdale, Florida 33308-1900
                    (Address of principal executive offices)

                                 (954) 771-0500
               Registrant's telephone number, including area code

















                HOSPITAL STAFFING SERVICES, INC. AND SUBSIDIARIES
                                    FORM 8-K

ITEM 5. OTHER EVENTS



PRESS RELEASE ISSUED JANUARY 22, 1998:


         On January  22,  1998,  the  Company  executed a  definitive  agreement
contemplating  the sale of substantially  all of the assets  associated with its
Travel Nurse subsidiary to Preferred  Employers  Holdings,  Inc. for cash in the
amount of $5.0  million.  The sale of Travel  Nurse is  expected  to occur on or
before  February 13, 1998,  and is contingent  upon  satisfactory  completion of
Preferred Employers' due diligence.  As an initial advance on the purchase price
for the Travel  Nurse  operations,  in exchange  for $1.5 million in cash Travel
Nurse today issued to  Preferred  Employers  preferred  stock and a secured note
convertible,  under  certain  circumstances,  into a majority of Travel  Nurse's
equity on a fully  diluted  basis.  In the event that the  transaction  fails to
close,  Preferred  Employers has the right to require Travel Nurse to repurchase
the preferred stock and redeem the note for $1.5 million.  At November 30, 1997,
the assets of the Travel Nurse subsidiary to be transferred had a carrying value
on the  consolidated  books  of  the  Company  of  approximately  $151,000.  The
Company's   Travel  Nurse  subsidiary   provides   registered  nurse  and  other
professional medical personnel,  often referred to as "travel nurses", primarily
to client hospitals on a contractual  basis for periods generally ranging from 8
to 52 weeks.

         The Company  continues to experience  critical cash flow shortfalls and
remains in default (and may remain in default  following  completion of the sale
of its Travel Nurse operations) under its line of credit. The Company's Board of
Directors,  with the assistance of its investment bank, is actively evaluating a
variety of strategic  alternatives,  including an equity infusion and/or sale of
the Company's home care  operations.  Completion of any such  transaction may be
subject to  satisfaction  of a number of  conditions,  including due  diligence;
shareholder approval;  resolution of the Company's Dade County,  Florida Federal
Medicare  investigation;  and the  negotiation of a global  settlement  with the
Medicare program of open cost reports and appeal and reopening issues. There can
be no assurance that all or any of these conditions can be satisfied in a timely
fashion and that the Company will be able to generate  cash  sufficient  to fund
its operations.  The uncertainties associated with the Company's ability to fund
its operations raise  substantial  doubt about the Company's ability to continue
as a going concern.










                HOSPITAL STAFFING SERVICES, INC. AND SUBSIDIARIES
                                   SIGNATURES
                                January 22, 1998


         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.


HOSPITAL STAFFING SERVICES, INC.


By:  __________________________________  Ronald G. Huneycutt, Vice President of
       Ronald G. Huneycutt               Finance, Chief Financial Officer
                                         (principal accounting officer)
                                         Date:  January 29, 1998