<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
balance sheets and statements of operations found on pages 4-7 of the 
Company's Form 10-Q for the year to date, and is qualified in its entirety 
by reference to such financial statements.
</LEGEND>
<CIK> 0000798540
<NAME> RETIREMENT CARE ASSOCIATES, INC.
<PERIOD-TYPE>                   3-MOS
<FISCAL-YEAR-END>                          JUN-30-1996
<PERIOD-END>                               SEP-30-1996
<CASH>                                       3,071,179
<SECURITIES>                                         0
<RECEIVABLES>                               30,169,478
<ALLOWANCES>                                         0
<INVENTORY>                                  9,962,452         
<CURRENT-ASSETS>                            47,352,011
<PP&E>                                     136,010,446
<DEPRECIATION>                                       0
<TOTAL-ASSETS>                             213,507,833
<CURRENT-LIABILITIES>                       44,574,274         
<BONDS>                                              0
<COMMON>                                         1,047
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                  9,074,500
<OTHER-SE>                                  32,203,489
<TOTAL-LIABILITY-AND-EQUITY>               213,507,833
<SALES>                                     54,143,395
<TOTAL-REVENUES>                            55,139,631
<CGS>                                       37,947,739
<TOTAL-COSTS>                               37,947,739
<OTHER-EXPENSES>                            15,704,235
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                           2,375,601
<INCOME-PRETAX>                              1,292,657
<INCOME-TAX>                                   491,210
<INCOME-CONTINUING>                                  0
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                   801,447
<EPS-PRIMARY>                                      .06
<EPS-DILUTED>                                      .06