<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
HEALTH CARE AND RETIREMENT CORPORATION'S QUARTERLY REPORT ON FORM 10-Q FOR THE
QUARTER ENDED SEPTEMBER 30, 1996 AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<RESTATED> 
<MULTIPLIER> 1,000
       
                             
<PERIOD-TYPE>                   9-MOS
<FISCAL-YEAR-END>                          DEC-31-1996
<PERIOD-START>                             JAN-01-1996
<PERIOD-END>                               SEP-30-1996
<CASH>                                           3,430
<SECURITIES>                                         0
<RECEIVABLES>                                  123,850
<ALLOWANCES>                                    12,920
<INVENTORY>                                          0
<CURRENT-ASSETS>                               139,688
<PP&E>                                         615,418
<DEPRECIATION>                                  99,804
<TOTAL-ASSETS>                                 792,485
<CURRENT-LIABILITIES>                          146,084
<BONDS>                                        186,471
<COMMON>                                           489
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<OTHER-SE>                                     381,249
<TOTAL-LIABILITY-AND-EQUITY>                   792,485
<SALES>                                              0
<TOTAL-REVENUES>                               581,117
<CGS>                                                0
<TOTAL-COSTS>                                  465,684
<OTHER-EXPENSES>                                22,752
<LOSS-PROVISION>                                 4,328
<INTEREST-EXPENSE>                                   0
<INCOME-PRETAX>                                 62,561
<INCOME-TAX>                                    18,768
<INCOME-CONTINUING>                             43,793
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                    43,793
<EPS-PRIMARY>                                     0.91
<EPS-DILUTED>                                     0.91