<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 MARCH 31, 1997, AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. </LEGEND> <MULTIPLIER> 1,000 <PERIOD-TYPE> 3-MOS <FISCAL-YEAR-END> DEC-31-1997 <PERIOD-START> JAN-01-1997 <PERIOD-END> MAR-31-1997 <CASH> 8,106 <SECURITIES> 0 <RECEIVABLES> 139,541 <ALLOWANCES> 13,962 <INVENTORY> 0 <CURRENT-ASSETS> 162,652 <PP&E> 653,448 <DEPRECIATION> 114,017 <TOTAL-ASSETS> 889,572 <CURRENT-LIABILITIES> 132,263 <BONDS> 273,626 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 489 <OTHER-SE> 399,070 <TOTAL-LIABILITY-AND-EQUITY> 889,572 <SALES> 0 <TOTAL-REVENUES> 213,912 <CGS> 0 <TOTAL-COSTS> 170,415 <OTHER-EXPENSES> 8,766 <LOSS-PROVISION> 1,480 <INTEREST-EXPENSE> 0 <INCOME-PRETAX> 23,555 <INCOME-TAX> 7,231 <INCOME-CONTINUING> 16,324 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 16,324 <EPS-PRIMARY> .35 <EPS-DILUTED> .35