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                                                                    EXHIBIT 10.1

                    SECOND AMENDMENT TO EMPLOYMENT AGREEMENT

         THIS SECOND AMENDMENT TO EMPLOYMENT AGREEMENT (the "Amendment") is made
as of April 6, 2000, by and between Coram Healthcare Corporation, a Delaware
corporation (the "Company"), and Daniel D. Crowley ("Executive").

                                    RECITALS

         A. The parties previously made and executed that certain Employment
Agreement, effective November 30, 1999, that was subsequently amended effective
as of November 30, 1999 (collectively, the "Employment Agreement").

         B. Each of the parties desires to amend the Employment Agreement as set
forth herein.

         NOW THEREFORE, in consideration of the premises set forth above and the
covenants contained herein and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the Company and the
Executive hereby agree as follows:

         1. Amendment. The Employment Agreement is hereby amended as follows:

         (a) Section 3(b) of the Employment Agreement is hereby amended by
deleting such paragraph in its entirety and replacing it with the following:

         In addition to the Base Salary, Executive shall be entitled to a
         performance bonus (the "Incentive Bonus") payable within 90 days of the
         end of each fiscal year based upon the Company's operating results
         measured against a target level of earnings established by the
         Executive and the Compensation Committee of Coram's Board of Directors
         before the beginning of each of the Company's fiscal years during the
         Employment Term. With respect to the Company's fiscal year ending
         December 31, 2000, the Incentive Bonus shall be, as follows: if
         earnings before interest, taxes, depreciation and amortization (EBITDA)
         of the Company for such year, as measured by the audited financial
         statements of the Company for its fiscal year ending December 31, 2000,
         equals or exceeds $14,000,000 (the "2000 Incentive Target"), the
         Incentive Bonus to which the Executive shall be entitled shall be an
         amount equal to 25% of the Company's EBITDA that exceeds the 2000
         Incentive Target. The Incentive Bonus shall be paid in cash from
         Coram's available Free Cash (as defined below) or from the Revolving
         Credit Facility (as that term is defined below).

         In addition to the Incentive Bonus, in the event that the EBITDA of the
         Company as measured by the audited financial statements of the Company
         equals or exceeds $35,000,000, for its fiscal year ending December 31,
         2000, the Company shall pay an additional bonus (the "EBITDA Bonus") of
         $5,000,000 to the Executive or others as designated by Executive, if
         any.

         Any Incentive Bonus, EBITDA Bonus, Success Bonus (as defined below) or
         other bonus earned by the Executive under any provision of this
         Employment Agreement


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         shall be payable by the Company in cash out of funds derived from the
         Company's excess available cash flow ("Free Cash") or from amounts
         drawn on the Company's Credit Facility, dated August 20, 1998, among
         the Company, Coram, Inc. and the Guarantors named therein, the Lenders
         named therein and Foothill Capital Corporation, as Agent, or any
         subsequent credit facility that replaces such facility (the "Revolving
         Credit Facility"); provided, however, that in the event that the amount
         drawn on the Revolving Credit Facility at the time any of such bonuses
         are due is an amount that is greater than 65% (the percentage drawn as
         of April 6, 2000) of the maximum funds available to the Company under
         such credit facility (for example, the maximum amount available under
         the Revolving Credit Facility is $60,000,000 and as of April 6, 2000
         the amount drawn was $38.5 Million), the Company shall pay such to the
         Executive (or the designated individual recipient) as follows: 50% in
         cash on the due date and 50% in monthly installments over the next
         eleven (11) months. In the event that the Executive or the designated
         recipient is terminated for any reason whatsoever other than for Cause,
         any unpaid amount of such bonus shall be paid immediately in a lump
         sum.

         (b) Section 3 of the Employment Agreement is hereby amended by adding
the following provision to such Section as a new Section 3(j):

         In addition to the Base Salary and any other bonuses payable under this
         Amendment or the Agreement, Executive shall also be entitled to
         receive, upon consummation of a "Refinancing" (as that term is defined
         below) of the Company's "Principal Debt Instruments" (as that term is
         defined below), a success bonus (the "Success Bonus") equal to the
         greater of (i) 1.5% of the principal amount of the Principal Debt
         Instruments that are converted into common or preferred stock issued by
         the Company; or (ii) 1.0% of the total principal amount of the
         Principal Debt Instruments outstanding after consummation of the
         Refinancing. Such Success Bonus shall be paid immediately upon the
         Effective Date of the Refinancing from Free Cash or the Revolving
         Credit Facility.

         The term "Principal Debt Instruments" shall mean (a) the Revolving
         Credit Facility; and (b) that certain Securities Exchange Agreement,
         dated as of May 6, 1998, as amended, by and between the Company; Coram,
         Inc.; Cerberus Partners, L.P.; Goldman Sachs Credit Partners, L.P.; and
         Foothill Capital Corporation and the Series A and Series B Notes issued
         pursuant thereto.

         The term "Refinancing" shall mean a transaction or series of related
         transactions approved by the Company's Board of Directors that provides
         for either: (a) the conversion of some or all of the Principal Debt
         Instruments into a combination of new Company debt instruments and
         shares of common or preferred stock issued by the Company; or (b) the
         conversion of the Principal Debt Instruments into new debt instruments
         issued by the Company.

         (c) Section 5(a) of the Employment Agreement is hereby amended by
deleting such Section in its entirety and replacing it with the following:

         The Company agrees to employ and Executive accepts such employment for
         the period beginning as of the Effective Date and ending on the third
         anniversary of the


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         Effective Date, provided that: (i) the Employment Period shall
         terminate prior to such date upon Executive's resignation, death or
         permanent disability (defined as the expiration of a continuous period
         of 180 days during which Executive is unable to perform the essential
         functions of his assigned duties due to physical or mental incapacity);
         (ii) the Employment Period may be terminated by Executive at any time
         prior to such date if the Company fails to comply with any material
         provision of this Agreement, which failure has not been cured within 10
         business days after written notice of such noncompliance has been given
         by Executive to the Company; and (iii) the Employment Period may be
         terminated by the Company at any time prior to such date for Cause. In
         the absence of the occurrence of any of the events in subsections (i)
         through (iv) of this Section, the Employment Period shall automatically
         be renewed for up to two (2) additional one (1) year terms commencing
         on the third anniversary of the Effective Date.

         (d) Section 5(d) of the Employment Agreement is hereby amended by
deleting such Section in its entirety and replacing it with the following:

         If the Employment Period is terminated by the Company other than for
         Cause or by Executive pursuant to paragraph 5(a)(ii) above, or if
         Executive's duties, responsibilities, and/or job title is substantially
         altered from that of Chairman of the Board, Chief Executive Officer and
         President other than as contemplated by Section 2 of this Agreement,
         then Executive shall be entitled to receive his Base Salary and
         Automobile Allowance through the third anniversary of the date such
         termination of employment becomes effective (the "Severance Period"),
         payable in accordance with the Company's general payroll practices, and
         all bonuses payable hereunder, however denominated, as described herein
         throughout the Severance Period. The Company shall also continue
         coverage for Executive under the Company's life insurance, medical,
         health, disability and similar welfare benefit plans described in
         Section 3(d) (or under other plans, including the whole life insurance
         policy, obtained by the Company for the benefit of the Executive and
         fully funded by the Company. The Executive shall receive a full tax
         gross-up for any tax liability of the Executive for such benefits and
         the Automobile Allowance) throughout the Severance Period.

         (e) Section 3 of the Employment Agreement is hereby amended by adding
the following provision to such Section as a new Section 3(k):

         If the Executive and the Board of Directors concur on the appointment
         of a Chief Executive Officer and/or a President for the Company as
         contemplated by Section 2 of the Agreement, this Agreement will remain
         in full force and effect without modification to any of the terms and
         conditions set forth herein (other than the Executive's duties to the
         extent they may be assigned to the new chief executive officer),
         including but not limited to the Executive's Base Salary, bonus
         opportunities and full benefits; provided, however, that the new Chief
         Executive Officer and/or President shall be entitled to receive a
         portion of the EBITDA Bonus in an amount reasonably negotiated between
         the Board of Directors, the Executive and such person. The split of the
         money between Daniel D. Crowley and the new Chief Executive Officer or
         President needs to be approved by the Board of Directors whose approval
         will not be unreasonably withheld.

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         2. Counterparts. This Amendment may be executed in separate
counterparts, each of which is deemed to be an original and all of which taken
together constitute one and the same instrument.

         3. Miscellaneous. Except as expressly amended by this Amendment, the
Employment Agreement shall continue in full force and effect in accordance with
the provisions thereof. As used in the Employment Agreement, the terms
"hereinafter," "hereto," hereof, and other words of similar import shall, unless
the context otherwise requires, mean the Employment Agreement as amended by this
Amendment. In the event of any conflict or inconsistency between the terms and
conditions of the Employment Agreement and the terms and conditions of this
Amendment, the terms and conditions of this Amendment shall control.

         IN WITNESS WHEREOF, the parties hereto have executed this Amendment as
of the date first above written.

CORAM HEALTHCARE CORPORATION             EXECUTIVE

By: /s/ Stephen A. Feinberg              /s/ Daniel D. Crowley
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   Stephen A. Feinberg                   Daniel D. Crowley
   Chairman of Compensation Committee

By: /s/ L. Peter Smith
   -----------------------------------
   L. Peter Smith
   Director, Compensation Committee


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