EXHIBIT 23.4

                        CONSENT OF INDEPENDENT AUDITORS

   
    We  consent to the reference to our  firm under the caption "Experts" in the
Joint  Proxy  Statement/Prospectus   of  Horizon   Healthcare  Corporation   and
Continental  Medical  Systems,  Inc.  which is  made  part  of  the Registration
Statement (Amendment  No. 1  to Form  S-4 No.  33-59561) of  Horizon  Healthcare
Corporation  and to the  incorporation by reference therein  of our report dated
August 9,  1994,  with respect  to  the consolidated  financial  statements  and
schedules  of Continental  Medical Systems, Inc.  included in  its Annual Report
(Form 10-K as amended by  Form 10-K/A Amendment No. 1)  for the year ended  June
30, 1994, filed with the Securities and Exchange Commission.
    

                                            /s/  ERNST & YOUNG LLP

                                            Ernst & Young LLP

Harrisburg, Pennsylvania
   
June 1, 1995