<ARTICLE> 5 <LEGEND> This schedule contains summary financial information extracted from the balance sheets and statements of operations found on pages 4-6 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-30-1997 <PERIOD-END> SEP-30-1997 <CASH> 2,881,066 <SECURITIES> 0 <RECEIVABLES> 49,644,721 <ALLOWANCES> 0 <INVENTORY> 7,410,521 <CURRENT-ASSETS> 75,631,459 <PP&E> 152,676,366 <DEPRECIATION> 0 <TOTAL-ASSETS> 269,872,960 <CURRENT-LIABILITIES> 90,556,254 <BONDS> 0 <COMMON> 1,475 <PREFERRED-MANDATORY> 0 <PREFERRED> 3,000,000 <OTHER-SE> 27,064,173 <TOTAL-LIABILITY-AND-EQUITY> 269,872,960 <SALES> 12,036,835 <TOTAL-REVENUES> 79,422,752 <CGS> 57,990,222 <TOTAL-COSTS> 57,990,222 <OTHER-EXPENSES> 24,768,310 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 1,592,006 <INCOME-PRETAX> (3,427,280) <INCOME-TAX> (1,340,000) <INCOME-CONTINUING> 0 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (2,087,280) <EPS-PRIMARY> (.15) <EPS-DILUTED> (.15)