<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> 6-MOS <FISCAL-YEAR-END> JUN-30-1996 <PERIOD-END> DEC-31-1996 <CASH> 328,924 <SECURITIES> 0 <RECEIVABLES> 36,296,497 <ALLOWANCES> 0 <INVENTORY> 10,193,585 <CURRENT-ASSETS> 56,414,637 <PP&E> 138,485,928 <DEPRECIATION> 0 <TOTAL-ASSETS> 227,453,324 <CURRENT-LIABILITIES> 47,309,239 <BONDS> 0 <COMMON> 1,379 <PREFERRED-MANDATORY> 0 <PREFERRED> 6,230,000 <OTHER-SE> 35,747,669 <TOTAL-LIABILITY-AND-EQUITY> 227,453,324 <SALES> 22,856,118 <TOTAL-REVENUES> 116,526,900 <CGS> 77,331,513 <TOTAL-COSTS> 77,331,513 <OTHER-EXPENSES> 106,754,008 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 5,182,905 <INCOME-PRETAX> 4,237,484 <INCOME-TAX> 1,610,244 <INCOME-CONTINUING> 0 <DISCONTINUED> 0 <EXTRAORDINARY> (842,587) <CHANGES> 0 <NET-INCOME> 1,784,660 <EPS-PRIMARY> .12 <EPS-DILUTED> .00