<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)