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                                                                      EXHIBIT 15


                     INDEPENDENT ACCOUNTANTS' REVIEW REPORT


The Stockholders and Board of Directors
ARV Assisted Living, Inc.:

We have reviewed the condensed consolidated balance sheet of ARV Assisted
Living and subsidiaries as of June 30, 1998, and the related condensed
consolidated statements of operations and cash flows for the three-month and
six-month periods ended June 30, 1998 and 1997. These condensed consolidated
financial statements are the responsibility of the Company's management.

We conducted our review in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical procedures to
financial data and making inquiries of persons responsible for financial and
accounting matters. It is substantially less in scope than an audit conducted
in accordance with generally accepted auditing standards, the objective of
which is the expression of an opinion regarding the financial statements taken
as a whole. Accordingly, we do not express such an opinion.

Based on our review, we are not aware of any material modifications that
should be made to the condensed consolidated financial statements referred to
above for them to be in conformity with generally accepted accounting
principles.

We have previously audited, in accordance with generally accepted auditing
standards, the consolidated balance sheet of ARV Assisted Living, Inc. and
subsidiaries as of December 31, 1997, and the related consolidated statements
of operations, shareholders' equity and cash flows for the year then ended (not
presented herein); and in our report dated March 24, 1998, we expressed an
unqualified opinion on those consolidated financial statements. In our opinion,
the information set forth in the accompanying condensed consolidated balance
sheet as of December 31, 1997, is fairly stated, in all material respects, in
relation to the consolidated balance sheet from which it has been derived.


KPMG Peat Marwick LLP


Orange County, California
August 14, 1998