National HealthCare (NHC) 8-K NHC Reports 23.7% Increase in Net Income

Exhibit 99.1

For release: March 17, 2008

Contact: Gerald Coggin, Sr. VP of Corporate Relations

Phone: (615) 890-2020

NHC Reports 23.7% Increase in Net Income

MURFREESBORO, Tenn. -- National HealthCare Corporation (AMEX: NHC; AMEX: NHC.PR.A), a publicly traded long-term health care company, today announced net income for the year ended Dec. 31, 2007 of $45,449,000 or $3.47 per share basic compared to $36,740,000 or $2.99 per share basic for the year ended Dec. 31, 2006, an increase of 23.7% and 16.0%, respectively.

For the three months ended Dec. 31, 2007 net income was $13,391,000 compared to $11,686,000 in 2006, a 14.6% increase. Earnings per basic share were 91 cents compared to 95 cents last year. The current period basic earnings per share were approximately 14 cents less due to the dividends on the preferred stock that we issued as consideration in the merger with National Health Realty, Inc. (“NHR”).  Revenues for the three months ended Dec. 31, 2007 totaled $153,858,000 compared to $141,570,000 for the last three months of 2006.  Revenues in 2007 were $598,034,000 compared to $562,958,000 in 2006.

Highlights in 2007 include the merger with National Health Realty, Inc. which added $305,935,000 of real property to our fixed assets and the completion of a $75,000,000 Revolving Credit Agreement which will help fund further growth strategies.  Our net income for 2007 includes $6,665,000 of gains on the sale of assets, $6,000,000 recognition of deferred gain – National and an $8,143,000 recovery of notes receivable.

NHC operates for itself and third parties 74 long-term health care centers with 9,262 beds. NHC also operates 32 homecare programs, six independent living centers and 22 assisted living centers. NHC’s other services include managed care specialty medical units, Alzheimer’s units, hospice, rehabilitative services and accounting and financial services. Additional information including the company's most recent press releases may be obtained on NHC's Web site atwww.NHCcare.com.

Statements in this press release that are not historical facts are forward-looking statements. NHC cautions investors that any forward-looking statements made involve risks and uncertainties and are not guarantees of future performance. The risks and uncertainties are detailed from time to time in reports filed by NHC with the S.E.C., including Forms 8-K, 10-Q and 10-K, and include, among others, the following:  liabilities and other claims asserted against us and patient care liabilities, as well as the resolution of current litigation; availability of insurance and assets for indemnification; national and local economic conditions; including their effect on the availability and cost of labor, utilities and materials; the effect of government regulations and changes in regulations governing the healthcare industry, including our compliance with such regulations; changes in Medicare and Medicaid payme nt levels and methodologies and the application of such methodologies by the government and its fiscal intermediaries, the ability of third parties for whom we have guaranteed debt to refinance certain short term debt obligations; and other factors referenced or incorporated by reference in the S.E.C. filings.  The risks included here are not exhaustive.  All forward-looking statements represent NHC’s best judgment as of the date of this release.

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Condensed Statements of Income
(in thousands, except share and per share amounts)
				Three Months Ended		Twelve Months Ended
				December 31		December 31
Revenues:				2007	2006	2007	2006
	Net patient revenues			$   138,116	$   125,726	$   539,758	$   501,705
	Other revenues			15,742	15,844	58,276	61,253
		Net revenues		153,858	141,570	598,034	562,958
Costs and Expenses:
	Salaries, wages and benefits			82,192	79,023	326,445	302,862
	Other operating			51,896	36,589	175,649	157,664
	Recovery of notes receivable			(7,376)	-	(13,571)	(7,309)
	Recognition of deferred gain - National			(10,000)	-	(10,000)	-
	Gain on sale of assets			(323)	-	(11,108)	-
	Rent			8,661	9,502	40,205	40,310
	Depreciation and amortization			5,532	3,700	17,008	14,172
	Interest			321	219	1,172	980
		Total costs and expenses		130,903	129,033	525,800	508,679
Income Before Income Taxes				22,955	12,537	72,234	54,279
	Income Tax Provision			(9,564)	(851)	(26,785)	(17,539)
Net Income				13,391	11,686	45,449	36,740
Dividends to Preferred Shareholders				(1,831)	-	(1,831)	-
Net income available to common shareholders				$     11,560	$     11,686	$     43,618	$     36,740
Earnings Per Share:
	Basic			$        0.91	$        0.95	$        3.47	$        2.99
	Diluted			$        0.89	$        0.91	$        3.36	$        2.85
Weighted average common shares outstanding
	Basic			12,645,663	12,330,732	12,562,347	12,294,730
	Diluted			13,006,119	12,808,156	12,993,930	12,886,171
			Balance Sheet Data
			(in thousands)	Dec. 31	Dec. 31
				2007	2006
			Cash and marketable securities	$   167,779	$   219,246
			Current assets	246,014	290,611
			Total assets	698,408	471,477
			Current liabilities	188,825	168,548
			Long-term obligations	33,790	21,967
			Deferred lease credit	4,847	6,058
			Deferred revenue	15,238	25,762
			Shareholders' equity	455,708	249,142

Selected Operating Statistics
	Three Months Ended		Twelve Months Ended
	December 31		December 31
	2007	2006	2007	2006
Per Diems:
Medicare	$ 369.45	$ 353.28	$   354.87	$  330.74
Medicaid	147.88	139.38	143.15	136.56
Private Pay and Other	204.55	192.55	202.86	192.12
Patient Days:
Medicare	95,590	94,809	392,190	371,415
Medicaid	278,278	285,973	1,109,442	1,147,582
Private Pay and Other	166,051	154,695	637,739	582,513
	539,919	535,477	2,139,371	2,101,510
Average Per Diem	$ 204.53	$ 192.61	$   199.76	$   186.28