Olshan Grundman Frome Rosenzweig & Wolosky LLP
                   505 Park Avenue, New York, New York 10022
                                 (212) 753-7200






                                                         December 15, 1999









Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, DC  20549


                 Re:   Healthcare Services Group, Inc.
                       Registration Statement on Form S-8
                       ----------------------------------


Ladies and Gentlemen:

                 Reference  is made to the  Registration  Statement  on Form S-8
dated the date hereof (the "Registration Statement"),  filed with the Securities
and Exchange  Commission  by Healthcare  Services  Group,  Inc., a  Pennsylvania
corporation (the "Company").  The Registration Statement relates to an aggregate
of 1,100,000  shares (the  "Shares") of common  stock,  par value $.01 per share
(the "Common Stock") and the maximum  aggregate amount of $4 million of deferred
compensation  obligations  (the  "Obligations")  of the Company to be offered to
employees of the Company under the  Company's  Deferred  Compensation  Plan (the
"Deferred Compensation Plan"). The Shares will be issued and sold by the Company
in accordance with the Deferred  Compensation Plan, the Company's Employee Stock
Purchase Plan (the "Purchase Plan") and the Retirement (401-K) Savings Plan (the
"401-k  Plan"  and  collectively   with  the  Purchase  Plan  and  the  Deferred
Compensation Plan, the "Plans").





Securities and Exchange Commission
December 15, 1999
Page -2-


                 We  advise  you  that  we have  examined  originals  or  copies
certified or otherwise  identified to our  satisfaction  of the  Certificate  of
Incorporation  and Bylaws of the  Company,  minutes of  meetings of the Board of
Directors and  stockholders of the Company,  the Plans, the documents to be sent
or given to participants in the Plans and such other documents,  instruments and
certificates  of  officers  and   representatives  of  the  Company  and  public
officials,  and we have  made such  examination  of the law,  as we have  deemed
appropriate as the basis for the opinion hereinafter  expressed.  In making such
examination, we have assumed the genuineness of all signatures, the authenticity
of all documents  submitted to us as originals,  and the  conformity to original
documents of documents submitted to us as certified or photostatic copies.

                 Based  upon  the  foregoing,  we are of the  opinion  that  the
Shares,  when issued and paid for in  accordance  with the terms and  conditions
described in the relevant Plan, will be duly and validly issued,  fully paid and
non-assessable.  In  addition,  it is our  opinion  that the  Obligations,  when
established  pursuant to the terms of the Deferred  Compensation  Plan,  will be
valid and binding obligations of the Company, enforceable against the Company in
accordance  with their terms and the terms of the  Deferred  Compensation  Plan,
except  as  enforceability  (1)  may  be  limited  by  bankruptcy,   insolvency,
reorganization,  fraudulent  conveyance  or similar  laws  affecting  creditors'
rights generally, and (2) is subject to general principles of equity (regardless
of whether such  enforceability  is  considered  in a proceeding in equity or at
law).


                             Very truly yours,

                             /s/ Olshan Grundman Frome Rosenzweig & Wolosky LLP
                             OLSHAN GRUNDMAN FROME ROSENZWEIG & WOLOSKY LLP