UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
(Mark One)
X Annual Report Pursuant to Section 13 or 15(D) of The Securities
Exchange Act of 1934 (Fee Required)
For the fiscal year ended June 1, 1996

Transition Report Pursuant to Section 13 or 15(D) of The Securities
Exchange Act of 1934 (No Fee Required)
For the transition period from to

Commission file number 1-14194

MORRISON HEALTH CARE, INC.
(Exact name of Registrant as specified in charter)

GEORGIA 63-1155966
(State or other jurisdiction of (I.R.S. Employer identification No.)
incorporation or organization)

1955 Lake Park Drive, Suite 400, Smyrna, GA 30080-8855
(Address of principal executive offices) (Zip Code)

Registrant's telephone number, including area code: (770) 437-3300

Securities Registered Pursuant to Section 12(b) of The Act:
Name of each exchange
Title of each class on which registered

$0.01 par value Common Stock New York Stock Exchange

Securities Registered Pursuant to Section 12(g) of The Act:

None
(Title of class)

Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act
of 1934 during the preceding 12 months (or for such shorter period that the
Registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days. YES X NO

Indicate by check mark if disclosure of delinquent filers pursuant to Item
405 of Regulation S-K is not contained herein, and will not be contained,
to the best of Registrant's knowledge, in definitive proxy or information
statements incorporated by reference in Part III of this Form 10-K or any
amendment to this Form 10-K.[ ]

The aggregate market value of the voting stock held by non-affiliates of the
Registrant, based upon the closing sale price of Common Stock on
August 9, 1996 as reported on the New York Stock Exchange, was approximately
$104,006,000. Shares of Common Stock held by each executive officer and
director and by each person who owns 5% or more of the outstanding Common
Stock have been excluded in that such persons may be deemed to be affiliates.
This determination of affiliate status is not necessarily a
conclusive determination for other purposes.

The number of shares of the Registrant's common stock outstanding at
August 9, 1996 was 11,852,694.

Portions of the Registrant's Annual Report to Stockholders for the fiscal
year ended June 1, 1996 are incorporated by reference into Parts I and II.

Portions of the Registrant's definitive proxy statement dated
August 23, 1996 are incorporated by reference into Part III.

INDEX

PART I
Page
Number
Item 1. Business 3-6

Item 2. Properties 6

Item 3. Legal Proceedings 6

Item 4. Submission of Matters to a Vote of 6
Security Holders

Executive Officers of the Company 7-8

PART II

Item 5. Market for the Registrant's Common Equity 9
and Related Stockholder Matters

Item 6. Selected Financial Data 9

Item 7. Management's Discussion and Analysis of 9
Financial Condition and Results of
Operations

Item 8. Financial Statements and Supplementary 9
Data

Item 9. Changes in and Disagreements with 9
Accountants on Accounting and Financial
Disclosure

PART III

Item 10. Directors and Executive Officers of the 10
Registrant

Item 11. Executive Compensation 10

Item 12. Security Ownership of Certain Beneficial 10
Owners and Management

Item 13. Certain Relationships and Related 10
Transactions

PART IV

Item 14. Exhibits, Financial Statement Schedules, 11-14
and Reports on Form 8-K

PART I
Item 1. Business.

Introduction

Effective March 9, 1996, Morrison Restaurants Inc., a Delaware
corporation ("MRI"), distributed to its shareholders all of the
issued and outstanding shares of common stock of Morrison Health
Care, Inc. (the "Company"), which held the health care food and
nutrition services assets and business of MRI. As a result of
the Distribution, MRI's shareholders received one share of
Company common stock for every three shares of MRI held.

General

Morrison Health Care, Inc., a Georgia corporation, was spun off
from Morrison Restaurants Inc. in March 1996. MHCI is the only
national, public company focused exclusively on providing food
and nutrition services to health care facilities. The Company's
mission is "to be the leading provider of food and nutrition
services to the health care industry, fully committed to
maximizing quality and value in everything the Company does for
its clients, customers, team members and shareowners". With
contracts in 31 states and Washington D.C., MHCI is one of the
leading providers of food and nutrition services to hospitals and
other health care facilities across North America.

The Company's food service business has its origins in the health
care food service operations developed by it in the early 1950's.
The Company has expanded through its own marketing and sales
force and by acquiring other food service businesses. In August
1994, the Company sold certain of its education, business and
industry ("B&I") contracts and assets and closed the remaining
B&I accounts. This divestiture, which left the Company with only
health care contracts, allowed the Company to concentrate its
capital and management team in the health care industry which
Management believes has a better opportunity for growth and
profitability.

Operations

Morrison Health Care, Inc. operates the food and nutrition
services departments of hospitals and other health care
facilities. These departments typically include retail outlets
for staff and visitors and patient food and nutrition services.
MHCI accounts range in size from 100 bed specialty hospitals to
facilities with over 2,000 beds. The Company has operations in
31 states and Washington, D.C. Approximately 75% of the accounts
are in hospitals.

MHCI has capitalized on its retail heritage in operating
restaurants to bring a retail-oriented mentality to health care
clients. Along with managing the food service facilities, the
Company also provides dietary services to some of the largest
hospitals in America.

The Company provides its clients with the flexibility to adjust
programs, staffing and service plans to meet the changing needs
of the industry. MHCI offers its clients programs designed to
reduce costs and increase customer (patients and staff)
satisfaction. To better serve its clients and provide them with
specialized expertise, MHCI's staff is organized into regional
teams. Each team includes a regional vice president, nutrition
services specialist, culinary specialist, human resources
director, support services coordinator and a director of business
development who are dedicated to sharing the best industry
practices and performance improvement ideas. The regional teams
are supported by a corporate staff that includes nutrition
services, marketing, sales, human resources, legal, finance,
layout and design and culinary services.

MHCI offers its services pursuant to three general types of
contracts:(i) profit and loss (or guaranteed cost) contract,
where MHCI assumes the risk of profit or loss for the food
service operation; (ii) management fee contract, where the client
reimburses MHCI for all costs incurred in providing the services
contracted for and a negotiated fixed management fee for
supervising the client's food and nutrition services operations;
and(iii) management fee contract with incentives and penalties,
under which MHCI manages the client's food and nutrition
operations on a management fee basis, with the amount of the
management fee determined based on the achievement of
predetermined goals. Approximately 50% of MHCI's accounts are
operated pursuant to management fee contracts, although
management fee contracts with incentives and penalties are
becoming more popular. Substantially all of MHCI's contracts
were awarded during a bidding process.

In addition, MHCI operates "branded concept" restaurants such as
Morrison Fresh Cooking, Pizza Hut and Taco Bell, on client
premises. These branded concepts accounts are operated pursuant
to license arrangements with the appropriate restaurant company.
Currently, MHCI has 13 license arrangements with nationally
recognized restaurant companies.

MHCI markets its services nationwide through its business
development specialists and business development directors. Each
business development specialist focuses on potential clients in a
specific territory pursuant to a marketing plan. The business
development specialists report to and are supported by business
development directors. The business development directors also
market MHCI's services to large national accounts such as
hospital systems. In addition, MHCI personnel market to existing
clients to cross-sell additional services and increase sales of
existing services to complement the facility's food services
department.

Research and Development

The Company does not engage in any material research and
development activities. Numerous studies are made, however, on a
continuing basis, to improve menus, equipment, and methods of
operations.

Raw Materials

Raw materials essential to the operation of the Company's
business are obtained principally through national food
distributors. The Company negotiates directly with the primary
suppliers to obtain high quality products and services at
competitive prices. The Company uses short-term purchase
commitment contracts to stabilize the potentially volatile
pricing associated with certain commodities. Because of the
relatively short storage life of inventories, limited storage
facilities at customer location, MHCI's requirements for
freshness and the numerous sources of goods, a minimum amount of
inventory is maintained at customer locations. If necessary, all
essential food, beverage and operational products are available
and can be obtained from alternative suppliers in all cities
where the Company operates. The Company has entered into a
purchasing arrangement with Ruby Tuesday, Inc.("RTI") and
Morrison Fresh Cooking, Inc. ("MFCI") to maintain the volume
purchasing bargaining position enjoyed by the Company prior to
its spin-off.

Trademarks of the Company

The Company has registered certain trademarks and service marks
with the United States Patent and Trademark Office including the
Pro-Health Diningr trademark. The Company believes that this and
other related marks are important to its business. Registrations
of trademarks expire from 2000 to 2009, unless renewed.

Seasonality

The Company's revenues are not seasonal to any significant
degree.

Working Capital Practices

Cash provided by operations, along with borrowings under the
Company's revolving lines of credit, are used to pay dividends,
invest in new units and renovate existing units.

Additional information concerning the working capital of the
Company is incorporated herein by reference to information
presented within the "Liquidity and Capital Resources" section of
"Management's Discussion and Analysis of Financial Condition and
Results of Operations" of the Company's 1996 Annual Report to
Stockholders.

Customer Dependence

No material part of the business of the Company is dependent upon
a single customer, or a very few customers, the loss of any one
of which would have a material adverse effect on the Company.

Government Contracts

There is no material portion of the Company's business that is
subject to renegotiation of profits or termination of contracts
or sub-contracts at the election of the Government.

Competition

The health care food and nutrition services business is highly
competitive. The Company competes with national and regional
food contract companies that offer the same type of services as
the Company. Management believes that competition in health care
food and nutrition services is based on pricing, quality of
services and reputation. Management believes that it compares
favorably with its competition in these areas.

Government Compliance

The Company is subject to various licensing and regulations at
both the state and local levels for items such as sanitation,
health and fire safety, all of which could affect the operation
of an existing account. The Company's business is also subject
to various other regulations at the federal level such as fair
labor standards, occupational safety and health regulations.
Compliance with these regulations has not had, and is not
expected to have, a material adverse effect on the Company's
operations.

Environmental Compliance

Compliance with federal, state and local laws and regulations
which have been enacted or adopted regulating the discharge of
materials into the environment, or otherwise relating to the
protection of the environment, is not expected to have a material
effect upon the capital expenditures, earnings or competitive
position of the Company.

Personnel

The Company employs approximately 3,100 full-time and part-time
employees. The Company believes that working conditions are
favorable and employee compensation is comparable with its
competition.

Item 2. Properties.

MHCI professionally manages food service departments on client-
owned property and, therefore, does not own any significant
amounts of property. Vending services on client-owned facilities
complement this program. Under the terms of certain contracts,
MHCI is required to make rent payments to its clients. See Note
5 of the Notes to Consolidated Financial Statements included in
the Annual Report to Stockholders for the fiscal year ended June
1, 1996.

Facilities and equipment are repaired and maintained to assure
their adequacy, productive capacity and utilization. The
corporate headquarters is located in approximately 14,000 square
feet of a leased building in Smyrna, Georgia. The headquarters'
lease term ends in 2001 with annual average lease payments of
approximately $239,000. The Company also has administrative
offices in a leased building in Mobile, Alabama. This office has
a lease term ending in 2001 with average annual lease payments of
approximately $105,000.

Item 3. Legal Proceedings.

The Company is presently, and from time to time, subject to
pending claims and suits arising in the ordinary course of its
business. In the opinion of Management, the ultimate resolution
of these pending legal proceedings will not have a material
adverse effect on the Company's operations or consolidated
financial position.

Item 4. Submission of Matters to a Vote of Security Holders.

None.

Executive Officers of the Company

Executive officers of the Company are appointed by and serve at
the discretion of the Company's Board of Directors. Information
regarding the Company's executive officers as of August 9, 1996 is
provided below.

Name Age Position with the Company

G. A. Davenport 42 President, Chief Executive Officer and
Director
K. W. Engwall 48 Senior Vice President, Finance
and Assistant Secretary
J. E. Fountain 45 Vice President, General Counsel and
Secretary
J. D. Underhill 51 Senior Vice President, Sales and
Marketing
G. L. Anderson 41 Senior Vice President
C. L. Kolesar 43 Senior Vice President
F. G. Michels 58 Senior Vice President

Glenn A. Davenport has been President and Chief Executive
Officer of the Company since the Distribution in March 1996. He
was President of the Health Care Division of MRI's Morrison Group
from November 1993 until the Distribution in March 1996. Prior
thereto, he served as Senior Vice President, Hospitality Group
from February 1990 through November 1993 and in various other
capacities since joining MRI in November 1973.

K. Wyatt Engwall has been Senior Vice President, Finance and
Assistant Secretary of the Company since the Distribution in
March 1996. Prior thereto, he was Vice President, Controller of
MRI's Ruby Tuesday Group from January 1994 until March 1996. He
served as Vice President of Financial Planning of MRI from
January 1993 through January 1994, Vice President and Controller
of MRI's Contract Dining Division from October 1991 through
January 1993 and as Controller of MRI's former MMS (Contract
Dining) Division from October 1986 through October 1991. Mr.
Engwall joined MRI in 1983 as a Financial Systems Analyst.

John E. Fountain has been Vice President, General Counsel
and Secretary of the Company since the Distribution in March
1996. He was Vice President, Legal of MRI's Morrison Group from
August 1994 until March 1996. He served as Senior Attorney of
MRI from December 1991 through August 1994. Prior thereto, he
served as Staff Attorney of MRI from October 1978 through
December 1991.

Jerry D. Underhill has been Senior Vice President, Sales and
Marketing of the Company since the Distribution in March 1996.
He was Senior Vice President of Retail Development of the Health
Care Division of MRI's Morrison Group from September 1995 until
March 1996. Prior thereto, he was Senior Vice President of
Development of the Family Dining Division of MRI's Morrison Group
from March 1993 to September 1995. Mr. Underhill was President
of Mid-Continent Restaurants (currently known as Bravo
Restaurants) from July 1988 to March 1993.

Gregory L. Anderson has been a Senior Vice President of the
Company since the Distribution in March 1996. He was Division
Vice President of the Health Care Division of MRI's Morrison
Group from April 1995 until March 1996. He was Vice President,
Human Resources of MRI's Health Care Division from July 1994 to
April 1995. Prior thereto, Mr. Anderson served as Senior
Director of Employee Relations of the KFC Division of PepsiCo
("KFC") from June 1994 to July 1994, Director of Human Resources
of KFC from October 1992 to June 1994 and Region Manager of Human
Resources of KFC from February 1990 to October 1992 and as Zone
Manager of Human Resources of the Taco Bell Division of PepsiCo
from May 1988 to February 1990.

Carolyn L. Kolesar has been a Senior Vice President of the
Company since the Distribution in March 1996. She was Division
Vice President of the Health Care Division of MRI's Morrison
Group from April 1995 until March 1996. Prior thereto, she
served as Regional Vice President of MRI's Health Care Division
from July 1988 to April 1995.

Frances G. Michels has been Senior Vice President, Support
Services of the Company since the Distribution in March 1996.
She was Senior Vice President of Support Services of the Health
Care Division of MRI's Morrison Group from January 1996 until
March 1996. Prior thereto, she served MRI's Health Care Division
in various capacities, including as Vice President of Nutrition
Services from December 1984 through January 1996, Area Manager
for Operations and Nutrition Services from January 1982 through
December 1984, Consulting Dietitian for the Health Care Division
from June 1974 through January 1982, Food Service Director from
July 1973 through June 1974, and Chief Therapeutic Dietitian from
June 1970 through July 1973.

PART II

Item 5. Market for the Registrant's Common Equity and Related
Stockholder Matters.

Certain information required by this item is incorporated herein
by reference to Note 12 of the Notes to Consolidated Financial
Statements of the Registrant's Annual Report to Stockholders for
the fiscal year ended June 1, 1996.

At June 1, 1996 the Company had $86,000 available for dividend
payments.

Item 6. Selected Financial Data.

The information contained under the caption "Selected Financial
Data" of the Registrant's Annual Report to Stockholders for the
fiscal year ended June 1, 1996 is incorporated herein by
reference.

Item 7. Management's Discussion and Analysis of Financial
Condition and Results of Operations.

The information contained under the caption "Management's
Discussion and Analysis of Financial Condition and Results of
Operations" of the Registrant's Annual Report to Stockholders for
the fiscal year ended June 1, 1996 is incorporated herein by
reference.

Item 8. Financial Statements and Supplementary Data.

The following consolidated financial statements and the related
report of the Company's independent auditors contained in the
Registrant's Annual Report to Stockholders for the fiscal year
ended June 1, 1996, are incorporated herein by reference:

Consolidated Statements of Income - Fiscal years ended
June 1, 1996, June 3, 1995 and June 4, 1994.

Consolidated Balance Sheets - As of June 1, 1996 and June 3, 1995.

Consolidated Statements of Stockholders' Equity -Fiscal years ended
June 1, 1996, June 3, 1995 and June 4, 1994.

Consolidated Statements of Cash Flows - Fiscal years ended
June 1, 1996, June 3, 1995 and June 4, 1994.

Notes to Consolidated Financial Statements.

Item 9. Changes in and Disagreements with Accountants on Accounting and
Financial Disclosure.

None.

PART III

Item 10. Directors and Executive Officers of the Company.

(a) The information regarding directors of the Company is
incorporated herein by reference to the information set forth in
the table captioned "Director and Director Nominee Information"
under "Election of Directors" in the definitive proxy statement
of the Registrant dated August 26, 1996, relating to the
Registrant's annual meeting of stockholders to be held on
September 26, 1996.

(b) Pursuant to Form 10-K General Instruction G(3), the
information regarding executive officers of the Company has been
included in Part I of this Report under the caption "Executive
Officers of the Company."

Item 11. Executive Compensation.

The information required by this Item 11 is incorporated herein
by reference to the information set forth under the captions
"Executive Compensation" and "Election of Directors - Directors'
Fees and Attendance" in the definitive proxy statement of the
Registrant dated August 26, 1996 relating to the Registrant`s
annual meeting of stockholders to be held on September 26, 1996.

Item 12. Security Ownership of Certain Beneficial Owners and
Management.

The information required by this Item 12 is incorporated herein
by reference to the information set forth in the table captioned
"Beneficial Ownership of Common Stock" under "Election of
Directors" in the definitive proxy statement of the Registrant
dated August 26, 1996, relating to the Registrant's annual
meeting of stockholders to be held on September 26, 1996.

Item 13. Certain Relationships and Related Transactions.

The information required by this Item 13 is incorporated herein
by reference to the information set forth under the caption
"Certain Transactions" in the definitive proxy statement of the
Registrant dated August 26, 1996, relating to the Registrant's
annual meeting of stockholders to be held on September 26, 1996.

PART IV

Item 14. Exhibits, Financial Statement Schedules, and Reports
on Form 8-K.
(a) The following documents are incorporated by reference into
or are filed as part of this report:

1. Financial Statements:

The following consolidated financial statements and
the independent auditors' report thereon, included in
the Registrant's Annual Report to Stockholders for
the fiscal year ended June 1, 1996, a copy of which
is contained in the exhibits to this report, are
incorporated herein by reference:

Page Reference
in paper version
of Annual Report
to Shareholders
Consolidated Statements of Income for
the fiscal years ended June 1, 1996,
June 3, 1995 and June 4, 1994 24

Consolidated Balance Sheets as of
June 1, 1996 and June 3, 1995 25

Consolidated Statements of Stockholders' Equity
for the fiscal years ended June 1, 1996,
June 3, 1995 and June 4, 1994 27

Consolidated Statements of Cash Flows
for the fiscal years ended June 1, 1996,
June 3, 1995 and June 4, 1994 26

Notes to Consolidated Financial Statements 28 - 39

Report of Independent Auditors 40

Page Reference
in Form 10K
2. Financial statement schedules:

Schedule II - Valuation and Qualifying
Accounts for the fiscal years ended June 1,
1996, June 3, 1995 and June 4, 1994 17

Financial statement schedules other than those shown above
are omitted because they are either not required or the
required information is shown in the financial statements or
notes thereto.

3. Exhibits

The following exhibits are filed as part of this report:

MORRISON HEALTH CARE, INC.
LIST OF EXHIBITS

Exhibit
Number Description

3.1 Amended and Restated Articles of Incorporation
of Morrison Health Care, Inc.*

3.2 Bylaws of Morrison Health Care, Inc.*

4.1 Specimen Common Stock Certificate (to be filed
by amendment).+

4.2 Amended and Restated Articles of Incorporation
of Morrison Health Care, Inc. (filed as
Exhibit 3.1 hereto).

4.3 Bylaws of Morrison Health Care, Inc. (filed as
Exhibit 3.2 hereto).

4.4 Form of Rights Agreement between Morrison
Health Care, Inc. and AmSouth Bank of Alabama, as
Rights Agent.+

4.5 Form of Rights Certificate (attached as Exhibit B
to the Rights Agreement filed as Exhibit 4.4 hereto).

10.1 Form of Distribution Agreement among Morrison
Restaurants Inc., Morrison Fresh Cooking, Inc. and
Morrison Health Care, Inc.*

10.2 Form of Amended and Restated Tax Allocation and
Indemnification Agreement among Morrison
Restaurants Inc., Custom Management Corporation of
Pennsylvania, Custom Management Corporation, John
C. Metz & Associates, Inc., Morrison
International, Inc., Morrison Custom Management
Corporation of Pennsylvania, Morrison Fresh
Cooking, Inc., Ruby Tuesday, Inc., a Delaware
corporation, Ruby Tuesday (Georgia), Inc., a
Georgia corporation, Galaxy Management, Inc.,
Manask Food Service, Inc., Morrison of New Jersey,
Inc., Tias, Inc. and Morrison Health Care, Inc.*

10.3 Form of Agreement Respecting Employee Benefit
Matters among Morrison Restaurants Inc., Morrison
Fresh Cooking, Inc. and Morrison Health Care,
Inc.+

10.4 Form of License Agreement between Morrison
Fresh Cooking, Inc. and Morrison Health Care, Inc.*

10.5 Form of License Agreement between Ruby Tuesday, Inc.
and Morrison Health Care, Inc.*

10.6 Form of Amended and Restated Operating
Agreement of MRT Purchasing, LLC among Morrison
Restaurants Inc., Ruby Tuesday, Inc., Morrison
Fresh Cooking, Inc. and Morrison Health Care, Inc.*

10.7 Form of Morrison Health Care, Inc. 1996 Stock
Incentive Plan.+

10.8 Form of Morrison Health Care, Inc. Stock
Incentive and Deferred Compensation Plan for
Directors.+

10.9 Form of 1996 Non-Executive Stock Incentive
Plan.+

10.10 Form of Morrison Health Care, Inc. Executive
Supplemental Pension Plan.+

10.11 Form of Morrison Health Care, Inc. Management
Retirement Plan.+

10.12 Form of Morrison Health Care, Inc. Salary
Deferral Plan together with related form of Trust
Agreement.+

10.13 Form of Morrison Health Care, Inc. Deferred
Compensation Plan and related form of Trust
Agreement.+

10.14 Form of Morrison Health Care, Inc. Executive
Group Life and Executive Accidental Death and
Dismemberment Plan.+

10.15 Form of Morrison Health Care, Inc. Executive
Life Insurance Plan.+

10.16 Form of Indemnification Agreement to be entered
into with executive officers and directors.*

10.17 Form of Change of Control Agreement to be
entered into with executive officers.+

10.18 Non-Qualified Stock Option Agreement between
Morrison Restaurants Inc. and Eugene E. Bishop.+

10.19 Non-Qualified Stock Option Agreement between
Morrison Restaurants Inc. and Samuel E. Beall, III.+

11 Statement regarding computation of per share earnings.

13 Annual Report to Shareholders for the fiscal
year ended June1, 1996 (Only portions specifically
incorporated by reference in the Form 10K are
incorporated herewith.)

21.1 List of subsidiaries of Morrison Health Care, Inc.

23 Consent of Independent Auditors.

27 Financial Data Schedule.

* Incorporated by reference to Exhibit of the same number
in the Registrant's Registration Statement on Form 10
filed with the Commission on February 8, 1996.

+ Incorporated by reference to Exhibit of the same number
in the Registrant's amendment to Registration Statement
on Form 10/A filed with the Commission on February 29,
1996.

(b) Reports on Form 8-K

The following report was filed on Form 8-K during the most recent
fiscal quarter:

1. Current Report on Form 8-K filed with the Commission on
March 15, 1966 reporting the distribution of the Registrant's
common stock and the Credit Agreement with SunTrust Bank, Atlanta.

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the
Securities Exchange Act of 1934, the Registrant has duly
caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.

MORRISON HEALTH CARE, INC.

Date 08/23/96 By:/s/ Glenn A. Davenport
Glenn A. Davenport
President, Chief Executive
Officer and Director

Pursuant to the requirements of the Securities Exchange Act
of 1934, this report has been signed below by the following
persons on behalf of the Registrant and in the capacities and
on the dates indicated:

Date 08/23/96 By:/s/ Glenn A. Davenport
Glenn A. Davenport
President, Chief Executive
Officer and Director

Date 08/23/96 By:/s/ K. Wyatt Engwall
K. Wyatt Engwall
Senior Vice President,
Finance and Assistant Secretary
(Principal Accounting Officer)

Date 08/22/96 By:/s/ J. B. McKinnon
J. B. McKinnon
Chairman of the Board

Date 08/27/96 By:/s/ Claire L. Arnold
Claire L. Arnold
Director

Date 08/22/96 By:/s/ E. Eugene Bishop
E. Eugene Bishop
Director

Date 08/23/96 By:/s/ Arthur R. Outlaw, Jr.
Arthur R. Outlaw, Jr.
Director

Date 08/26/96 By:/s/ Dr. Benjamin F. Payton
Dr. Benjamin F. Payton
Director

Morrison Health Care, Inc.
Schedule II - VALUATION AND QUALIFYING ACCOUNTS
For the Periods Ended June 1, 1996, June 3, 1995 and June 4, 1994
(Dollars in Thousands)

Column A Column B Column C Column D(A) Column E
Additions
Balance Charged Charged Balance
at to to at
Beginning Costs and Other End
of Period Expenses Accounts Deductions of Period

Description
Year ended June 1, 1996:
Trade receivables:
Allowance for doubtful accounts $1,641 $ 0 $ 0 $ 519 $1,122

Year ended June 3, 1995
Trade receivables:
Allowance for doubtful accounts $2,622 $ 0 $ 0 $ 981 $1,641

Year ended June 4, 1994
Trade receivables:
Allowance for doubtful accounts $3,087 $ 4 $ 0 $ 469 $2,622

Notes:
(A) Write-off of trade receivables determined to be uncollectible against
the allowance for doubtful accounts.