Exhibit 99.1

Beverly Subsidiary to Purchase Hospice USA, Doubling Size of Current Hospice
Operations

     FORT SMITH, Ark.--(BUSINESS WIRE)--May 27, 2004--Beverly Enterprises, Inc.
(NYSE:BEV) today announced that its AseraCare Hospice subsidiary signed a
definitive agreement to purchase the assets of Hospice USA, LLC, a privately
held company providing hospice services in Mississippi, Alabama and Tennessee.
The acquisition is expected to be accretive to Beverly's pre-tax income by more
than $6 million in the first full year. The cash transaction is subject to
normal licensure and government approvals, and is expected to close around July
31. The purchase price is not being disclosed.
     Hospice USA, based in Memphis (TN), currently operates 18 hospice agencies
and has another 16 under development. Its average daily census totals 900
patients, up significantly from 649 during the fourth quarter of 2002 and 356 at
year-end 2001. Revenues for Hospice USA are projected to total $37 million for
2004.
     AseraCare currently provides services to 1,100 hospice patients through 25
agencies in 10 states, and another eight locations are being developed during
2004. AseraCare revenues for 2004, excluding this acquisition, are projected to
exceed $50 million.
     "This acquisition nearly doubles the size of our current hospice operations
and reflects our strategic commitment to significantly grow our eldercare
service businesses," said William R. Floyd, Beverly Chairman and Chief Executive
Officer. "Hospice USA will give us a strong market position in three states
where we operate 29 skilled nursing facilities and two assisted living centers
but currently have no hospice agencies, and it complements the aggressive
internal growth of AseraCare."
     Floyd added: "Beverly's eldercare service businesses - primarily Aegis
Therapies and AseraCare - enable us to apply our skilled nursing facility
experience to closely related operations, where profit margins are higher and
on-going capital investment requirements are lower. We have achieved significant
synergies among these businesses in recent years, and expect that additional
efficiencies will result from the integration of Hospice USA operations."
     The expanded AseraCare subsidiary will report to Cindy Susienka, President
and Chief Operating Officer of the subsidiary and Executive Vice President of
Beverly Enterprises, Inc.

     This release is intended to be disclosure through methods reasonably
designed to provide broad, non-exclusionary distribution to the public in
compliance with the Securities and Exchange Commission's Fair Disclosure
Regulation. This release may contain forward-looking statements, including
statements related to performance in 2004 and beyond, made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements involve known and unknown risks and uncertainties
that may cause the company's actual results in future periods to differ
materially from forecasted results. These risks and uncertainties include:
national and local economic conditions, including their effect on the
availability and cost of labor, utilities and materials; the effect of
government regulations and changes in regulations governing the healthcare
industry, including the company's compliance with such regulations; changes in
Medicare and Medicaid payment levels and methodologies and the application of
such methodologies by the government and its fiscal intermediaries; the effects
of adopting new accounting standards; the ability to integrate acquisitions and
realize synergies and accretion; liabilities and other claims asserted against
the company, including patient care liabilities, as well as the resolution of
lawsuits brought about by the announcement or settlement of government
investigations and increases in the reserves for patient care liabilities; the
ability to predict future reserves related to patient care and workers'
compensation liabilities; our ability to obtain adequate insurance coverage with
financially viable insurance carriers, as well as the ability of our insurance
carriers to fulfill their obligations; the ability to replace or refinance debt
obligations; the ability to reduce overhead costs, obtain pricing concessions
from suppliers, improve the effectiveness of our fundamental business processes
and develop new sources of profitable revenues; the ability to execute our
strategic growth initiatives and implement our strategy to divest certain of our
nursing facilities in a timely manner at fair values; the ability to attract and
retain qualified personnel; the availability and terms of capital to fund
acquisitions, capital improvements and on-going operations; the competitive
environment in which the company operates; the ability to repurchase our stock
and changes in the stock price after any such repurchases; the ability to
maintain and increase census levels; and demographic changes. These and other
risks and uncertainties that could affect future results are addressed in the
company's filings with the Securities and Exchange Commission, including Forms
10-K and 10-Q.

     Beverly Enterprises, Inc. and its operating subsidiaries are leading
providers of healthcare services to the elderly in the United States. At April
30, 2004, we operated 368 skilled nursing facilities, as well as 19 assisted
living centers, and 25 hospice centers. Through Aegis Therapies, we also offer
rehabilitative services on a contract basis to nursing facilities operated by
other care providers.

     CONTACT: Beverly Enterprises, Inc., Fort Smith
              Investor Contact:
              James M. Griffith, 479-201-5514
              or
              News Media Contact:
              Blair C. Jackson, 479-201-5263
              www.beverlycares.com