<ARTICLE> 5 <LEGEND> This schedule contains mandatory financial information extracted from the August 31, 1997 Form 10-Q and is qualified in its entirety by reference to such financial statements. </LEGEND> <CIK> 0000806151 <NAME> HORIZON/CMS HEALTHCARE CORPORATION <MULTIPLIER> 1,000 <CURRENCY> US Dollars <PERIOD-TYPE> 3-MOS <FISCAL-YEAR-END> MAY-31-1998 <PERIOD-START> JUN-01-1997 <PERIOD-END> AUG-31-1997 <EXCHANGE-RATE> 1 <CASH> 54,170 <SECURITIES> 0 <RECEIVABLES> 384,231 <ALLOWANCES> 55,515 <INVENTORY> 0 <CURRENT-ASSETS> 505,327 <PP&E> 783,030 <DEPRECIATION> (152,647) <TOTAL-ASSETS> 1,612,982 <CURRENT-LIABILITIES> 203,736 <BONDS> 733,876 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 53 <OTHER-SE> 635,404 <TOTAL-LIABILITY-AND-EQUITY> 1,612,982 <SALES> 0 <TOTAL-REVENUES> 444,566 <CGS> 0 <TOTAL-COSTS> 428,300 <OTHER-EXPENSES> 0 <LOSS-PROVISION> 9,687 <INTEREST-EXPENSE> 14,404 <INCOME-PRETAX> 15,292 <INCOME-TAX> 6,455 <INCOME-CONTINUING> 8,837 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 8,837 <EPS-PRIMARY> 0.17 <EPS-DILUTED> 0.17