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When National HealthCare Corp. files its second quarter earnings ending June 30, 2004 with the Securities and Exchange Commission, Ernst & Young will simultaneously resign as its independent auditor. A reason was not given for why the auditor is stepping down, but according to a press release by NHC, there was no disagreement between the parties.

Ernst & Young has audited the Murfreesburo, TN-based nursing home company for two years. NHC dismissed Arthur Andersen LLP as its auditor July 2002 and appointed Ernst & Young.

NHC, lead by chief executive Andrew Adams, runs a family of healthcare companies, including National Health Investors and National Health Realty Inc. Ernst & Young is also resigning as the auditor those companies.

NHC operates 74 long-term healthcare centers with 9,208 beds.