EXHIBIT 11


                           LEXINGTON HEALTHCARE GROUP, INC.
                   SCHEDULE OF COMPUTATION OF NET INCOME PER SHARE
                        (IN THOUSANDS, EXCEPT PER SHARE DATA)


                                                      Years Ended June 30,
                                                 --------------------------
                                                      1997           1996

Net income (loss)                                $   (275,000)  $   461,000

                                                 ------------   -----------

Net income (loss) for primary income per 
     common share                                $   (275,000)  $   461,000
                                                 ------------   -----------
                                                 ------------   -----------

Weighted average number of common shares 
     outstanding during the year                    2,724,042     2,592,000
                                                 ------------   -----------


Weighted average number of shares used in 
calculation of primary income per share             2,724,042     2,592,000
                                                 ------------   -----------
                                                 ------------   -----------

Primary income (loss) per common share           $      (0.10)  $      0.18
                                                 ------------   -----------
                                                 ------------   -----------


Income per common share is computed using the weighted average number of shares
deemed outstanding as adjusted for the exchange of shares between entities under
common control. Weighted average number of shares outstanding includes common
stock equivalents when they have a dilutive effect. There are no material
differences between primary and fully-diluted income per common share.