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                                                                      EXHIBIT 18
 
October 7, 1997
 
Retirement Care Associates, Inc.
6000 Lake Forrest Drive, Suite 200
Atlanta, Georgia 30328
 
Gentlemen:
 
     We are providing this letter to you for inclusion as an exhibit to your
Form 10-K/A filing for the year ended June 30, 1996, pursuant to Item 601 of
Regulation S-K.
 
   
     We have read management's justification for the change of method of
accounting for facility supplies inventories from expensing when purchased to
capitalizing (using the cost basis) and expensing as used, contained in the
Company's Form 10-K/A for the year ended June 30, 1996. Based on our reading of
the data and discussions with Company officials about the business judgment and
business planning factors relating to the change, we believe management's
justification to be reasonable. Accordingly, in reliance on management's
determination as regards elements of business judgment and business planning, we
concur that the newly adopted accounting principle described above is preferable
in the Company's circumstances to the method previously applied.
    
 
   
                                          /s/ Cherry, Bekaert & Holland, L.L.P.
    
 
                                            -------------------------
   
                                                Cherry, Bekaert &
                                                  Holland, L.L.P.
    
 
Greensboro, North Carolina