In connection with the exercise of certain stock options, we have received 5.57% interest-bearing, full recourse notes in the amount of $448,000 at September 30, 2003. The notes are secured by shares of NHC, shares of NHR, or shares of NHI having a fair market value of not less than 150% of the amount of the note. The principal balances of the notes are reflected as a reduction of shareowners' equity in the consolidated financial statements.

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

Overview

National HealthCare Corporation ("NHC" or the "Company") operates or manages 76 long-term health care centers with 9,332 beds in 11 states. We provide nursing care as well as ancillary therapy services to patients in a variety of settings including long-term care nursing centers (76), subacute care units (9), Alzheimer's care units (6), homecare programs (32), assisted living centers (20) and independent living centers (7). In addition, we provide accounting and financial services to owners of over 42 long-term health care centers and investment advisory services to National Health Investors, Inc. ("NHI") and National Health Realty, Inc. ("NHR").

Critical Accounting Policies

In December 2001, the SEC requested all registrants list their three to five most "critical accounting policies" in MD&A. The SEC indicated that a "critical accounting policy" is one which is both important to the portrayal of the Company's financial condition and results and requires management's most difficult, subjective or complex judgements, often as a result of the need to make estimates about the effect of matters that are inherently uncertain. In our Form 10-K annual report for the fiscal year ended December 31, 2002, we identified in MD&A the following critical accounting policies as fitting this definition.

1) Revenue Recognition - third party payors

2) Accrued risk revenues

3) Revenue recognition - uncertain collections

4) Revenue recognition - mortgage interest

5) Potential recognition of deferred income

6) Tax contingencies

Please refer to MD&A in the 2002 Form 10-K for a more complete discussion of these policies. There are no additional critical accounting policies identified in the second quarter of 2003.

SNF Medicare Payments Increase

The Center for Medicare and Medicaid Services ("CMS") announced that, for the fiscal year beginning October 1, 2003, per diem payment rates under the skilled nursing facilities (SNF) prospective payment system (PPS) will increase by a total of approximately 6.2%. The increase includes both an annual update of 3.0% and forecast error adjustments of 3.26%. We estimate our fourth quarter revenues will increase by approximately $1.25 million related to these rate improvements.

Results of Operations

Three Months Ended September 30, 2003 Compared to Three Months Ended September 30, 2002.

Results for the three month period ended September 30, 2003 include a 2.1% increase in net revenues compared to the same period in 2002 and a 23.2% increase in net income.

Net patient revenues increased 1.9% compared to the same period last year. We estimate that the October 2002 Medicare rate cuts for skilled nursing centers and home health care services reduced our revenues by approximately $2.7 million for the quarter ended September 30, 2003. These Medicare cuts were offset by Medicaid increases, improved census mix and improved census.

The total census at owned and leased centers for the quarter averaged 94.5% compared to an average of 93.5% for the same quarter a year ago.

Other revenues increased $.4 million or 3.5% in 2003 from $12.7 million in 2002 to $13.1 million in 2003. The increase is the result of increases in regularly recurring management, accounting and financial services to managed centers. This increase, however, is largely offset because in the quarter last year, $2.2 million of these fees which had previously been doubtful of collection were collected. During the three months ended September 30, 2003, NHC provided financial and accounting services for 39 facilities as compared to 37 facilities during the three months ended September 30, 2002.

Total costs and expenses for the 2003 third quarter increased $.9 million or .8% to $110.4 million from $109.5 million. Salaries, wages and benefits, the largest operating costs of this service company, increased $6.5 million or 11.2% to $64.8 million from $58.2 million. Other operating expenses decreased $.4 million or 1.4% to $31.5 million for the 2003 period compared to $32.0 million in the 2002 period. Rent expense increased $.1 million or .8% to $10.4 million. Depreciation and amortization increased 4.1% to $3.1 million. Interest costs decreased $.3 million to $.5 million. Increases in salaries, wages and benefits are due primarily to increased therapy and homecare services and to inflationary wage increases. Decreases in other operating costs are due to decreased health insurance costs offset by inflationary increases as well as increases in costs of professional liability insurance, workers compensation insurance, and homecare services.

The decrease in interest costs is primarily due to the $10.6 million prepayment of long-term debt in December 2002.

Nine Months Ended September 30, 2003 Compared to Nine Months Ended September 30, 2002.

Results for the nine month period ended September 30, 2003 include a 1.9% increase in net revenues compared to the same period in 2002 and a 15.3% increase in net income.

Net patient revenues increased 2.1% compared to the same period last year. We estimate that the October 2002 Medicare rate cuts for skilled nursing centers and home health care services reduced our revenues by approximately $8.1 million for the nine months ended September 30, 2003. These Medicare cuts were offset by Medicaid increases, improved census mix and improved census.

The total census at owned and leased centers for the nine months averaged 94.0% compared to an average of 93.2% for the same period a year ago.

Other revenues increased $.2 million or .5% in 2003 from $36.3 million in 2002 to $36.5 million in 2003. The increase is the result of increases in regularly recurring management, accounting and financial services to managed centers. This increase, however, is largely offset because in the nine months last year, $3.2 million of these fees which had previously been doubtful of collection were collected. During the nine months ended September 30, 2003, NHC provided financial and accounting services for 39 facilities as compared to 33 facilities during the nine months ended September 30, 2002.

Total costs and expenses for the 2003 first nine months increased $3.8 million or 1.2% to $326.1 million from $322.3 million. Salaries, wages and benefits, the largest operating costs of this service company, increased $10.7 million or 6.0% to $188.7 million from $178.0 million. Other operating expenses increased $1.7 million or 1.8% to $95.3 million for the 2003 period compared to $93.7 million in the 2002 period. Rent expense increased .4% to $31.2 million. Depreciation and amortization increased 2.5% to $9.2 million. Interest costs decreased $.9 million to $1.6 million. There were no note receivable write-offs this year compared to $7.6 million of write-offs in the same period last year. Increases in salaries, wages and benefits are due primarily to increased therapy and homecare services and to inflationary wage increases. Increases in other operating costs are due to inflationary increases as well as increases in costs of professional liability insurance, workers compensation insurance and homecare services offset in part due to the $1.2 million write-off in 2002 of development costs related to the construction of a new retirement and nursing home community.

The decrease in interest costs is primarily due to the $10.6 million prepayment of long-term debt in December 2002.

Liquidity and Capital Resources

Net cash provided by operating activities during the first nine months of 2003 totaled $38.5 million compared to $37.1 million provided in the same period last year. Cash provided by operating activities is composed of net income plus depreciation and increases in accrued liabilities and reserves, accounts payable, accrued payroll and deferred income, offset by increases in accounts receivable and decreases in amounts due third party payors.

Cash flows used in investing activities during the first nine months of 2003 totaled $15.3 million compared to $3.0 million used by investing activities in the same period in 2002. Cash used for additions to property and equipment totaled $17.6 million in 2003 compared to $8.8 million in 2002. We have under construction one new center (113 beds) and one addition (30 beds). No cash was used this year for investments in notes receivable, compared to $2.1 million used last year. Collections of notes receivable generated $2.0 million in 2003 compared to $2.7 million in 2002. Cash provided by sales of marketable securities totaled $.5 million compared to $11.2 million in 2002.

Cash used in financing activities totaled $16.4 million in the first nine months of 2003 compared to $14.8 million used for the same period in 2002. Cash used for payments of debt totaled $3.0 million and increases in restricted cash totaled $13.8 million in 2003. In the prior year, cash flows used totaled $4.7 million for payments on debt and $14.4 million for increase in restricted cash offset in part by $4.1 million collection of notes receivable. Cash held by trustees is primarily related to professional liability insurance, workers' compensation insurance and health insurance.

At September 30, 2003, our ratio of long-term debt to total capitalization (total debt plus deferred income plus shareholders equity) is 18.7%.

Guarantees and Contingencies

In addition to our primary debt obligations, which are included in our consolidated financial statements, we have guaranteed the debt obligations of certain other entities. Those guarantees, which are not included as debt obligations in our consolidated financial statements, total $27,267,000 at September 30, 2003 and include $15,601,000 of debt of managed and other long-term health care centers and $12,666,000 of debt of National Health Corporation ("National") and the National Health Corporation Leveraged Employee Stock Ownership Plan (the "ESOP").

The $15,601,000 of guarantees of debt of managed and other long-term health care centers relates to first mortgage debt obligations of three long-term health care centers to which we provide management or accounting services. We agreed to guarantee these obligations in order to obtain management agreements. For this service, we charge an annual guarantee fee of 1% to 2% of the outstanding principal balance guaranteed, which fee is in addition to our management fee. All of this guaranteed indebtedness is secured by first mortgages, pledges of personal property, accounts receivable, marketable securities and, in certain instances, the personal guarantees of the owners of the facilities.

The $12,666,000 of guarantees of debt of National and the ESOP relates to senior secured notes held by financial institutions. The total outstanding balance of National and the ESOP's obligations under these senior secured notes is $20,426,000. Of this obligation, $7,761,000 has been included in our debt obligations because we are a direct obligor on this indebtedness. The remaining $12,666,000, which is not included in our debt obligations because we are not a direct obligor, is due from NHI to National and the ESOP. Additionally, under the amended terms of these note agreements, the lending institutions have the right to put to us the entire outstanding balance of this debt on June 30, 2005. Upon exercise of this put option by the lending institutions at this time, we would be obligated to purchase the then outstanding balance of these senior secured notes, which is estimated to be approximately $15,116,000 at March 31, 2005.

Debt Cross Defaults

Our $7,761,000 senior secured notes and our $4,643,000 senior notes were borrowed from National. National obtained its financing through the ESOP. As we are a direct obligor on this debt, it has been reported as a liability owed by us to the holders of the debt instruments rather than as a liability owed to National and the ESOP.

Through a guarantee agreement, our $7,761,000 senior secured notes and our $12,666,000 guarantee described above, and our $4,643,000 senior notes have cross-default provisions with other debt of National and the ESOP. We currently believe that National and the ESOP are in compliance with the terms of their debt agreements.

Limited Guarantee of Investment Income to Facility Residents

As a marketing tool to provide opportunities for enhanced income to existing residents and to attract new residents, NHC has offered to facility residents at one of its centers beginning April 1, 2003 to guarantee the continuation of dividend income of at least $.40 per share, per quarter on newly purchased shares of National Health Investors, Inc. (NHI:NYSE). The guarantee expires on the earlier of the resident's termination of occupancy, the resident's sale of the NHI common stock, or on April 30, 2004.

NHC has limited the guarantee offer to an unlimited number of residents who meet certain income and net worth tests and to 35 other sophisticated residents. NHC may limit the number of shares to which this guarantee will relate.

Although the total number of shares has not yet been determined, we believe NHC's maximum exposure under the plan to be less than $200,000 and we do not expect our guarantee will be called upon during the term of the plan. Under the provisions of FIN 45, we have estimated the fair value of this guarantee to be $0.

Contractual Cash Obligations

Our contractual cash obligations for periods subsequent to September 30, 2003 are as follows:

We have guaranteed debt obligations of certain other entities totaling approximately $28,267,000. These guarantees are not included in the table above due to uncertainty about the amount or timing of our obligations under our commitments. We do not anticipate material obligations under these commitments

Our current cash on hand, marketable securities, short-term notes receivable, operating cash flows, and as needed, our borrowing capacity are expected to be adequate to finance our operating requirements and growth and development plans for 2003 and into 2004.

Our charter authorizes the payment of dividends at the discretion of the Board of Directors; however, at present, we do not anticipate paying dividends.

New Accounting Pronouncements

On December 31, 2002, the FASB issued Statement of Financial Accounting Standards No. 148, "Accounting for Stock-Based Compensation - Transition and Disclosure" (SFAS 148). SFAS 148 amends Statement of Financial Accounting Standards No. 123 "Accounting for Stock-Based Compensation" (SFAS 123), to provide alternative methods of transition to SFAS 123's fair value method of accounting for stock-based employee compensation. SFAS 148 also amends the disclosure provisions of SFAS 123 and APB Opinion No. 28, "Interim Financial Reporting", to require disclosure in the summary of significant accounting policies of the effects of an entity's accounting policy with respect to stock-based employee compensation on reported net income and earnings per share in annual and interim financial statements. While SFAS 148 does not amend SFAS 123 to require companies to account for employee stock options using the fair value method, the disclosure provisions of SFAS 148 are applicable to all companies with stock-based employee compensation, regardless of whether they account for the compensation using the fair value method of SFAS 123 or the intrinsic value method of Accounting Principles Board Opinion No. 25, "Accounting for Stock Issued to Employees" ("APB 25"). See Note 7 for the required disclosures under SFAS 148.

In November 2002, the FASB issued FASB Interpretation No. 45, "Guarantor's Accounting and Disclosure Requirements for Guarantees, Including Indirect Guarantees of Indebtedness of Others" ("FIN 45"). FIN 45 requires that the guarantor recognize, at the inception of certain guarantees, a liability for the fair value of the obligation undertaken in issuing such guarantees. FIN 45 also requires additional disclosure requirements about the guarantor's obligations under certain guarantees that it has issued. The initial recognition and measurement provisions of this interpretation are applicable on a prospective basis to guarantees issued or modified after December 31, 2002 and the disclosure requirements are effective for financial statement periods ending after December 15, 2002. Through September 30, 2003, adoption of FIN 45 has not had a material effect on the Company's financial statements. The future effect of FIN 45 on the Company's financial statements will depend on whether the Company enters into new or modifies existing guarantees.

In January 2003, the FASB issued Interpretation No. 46, "Consolidation of Variable Interest Entities" ("FIN 46"), which requires the consolidation of variable interest entities. FIN 46's consolidation provisions apply immediately to variable interest entities created subsequent to January 31, 2003. Variable interest entities created prior to January 31, 2003 must be consolidated effective July 1, 2003. Disclosures are required currently if the Company expects to consolidate any variable interest entities. The Company is currently evaluating the requirement to consolidate any additional material entities as a result of FIN 46. The Company does not believe that it has entered into any contractual agreements with variable interest entities subsequent to January 31, 2003.

General Liability Lawsuits

Nationwide the entire long term care industry has experienced a dramatic increase in personal injury/wrongful death claims and awards based on alleged negligence by nursing facilities and their employees in providing care to residents. As of September 30, 2003, we and/or our managed centers are currently defendants in 89 such claims covering 1995 through 2002. Forty-nine of these cases are filed in Florida, where we have not operated or managed long-term care providers since September 30, 2000.

When bids were solicited for third party liability coverage for 2002, only two companies would quote coverage. Both quotations were so onerous and expensive that we elected to pay the quoted premium into a self-funded captive insurance company. Thus, during 2002 and the current fiscal year, insurance coverage for incidents occurring at all providers owned or leased, and most providers managed by us, is provided through this Cayman Island captive insurance company which is qualified and taxed as a domestic NHC subsidiary.

The coverages for all years include both primary policies and umbrella policies. For years 1999 through 2001 forward, the policies contain a per incident deductible. In 2000 and 2001, there is no aggregate limit on our potential deductible obligations. In 2002, the deductibles were eliminated and first dollar coverage is provided through the captive insurance company, while the excess was provided by a third party insurer.

In 2003, both first dollar and excess coverage is provided through our subsidiary insurance company, in the amount of $1 million per incident, $3 million per location, with $7.5 million excess.

We use independent actuaries to estimate our exposures for claims obligations (for both asserted and unasserted claims) related to deductibles and exposures in excess of coverage limits, and we maintain reserves for these obligations. It is possible that claims against us could exceed our coverage limits and our reserves, which would have a material adverse effect on our financial position, results of operations and cash flows.

On September 25, 2003, a tragic and as of yet unexplained fire occurred on the second floor of an NHC subsidiary operated skilled nursing facility located in Nashville, Tennessee. While the concrete and steel constructed facility complied with applicable fire safety codes, the building was not sprinkled. Although the fire was limited to a double bedded patient's room, extensive smoke filled the area and caused injuries to other patients despite aggressive efforts to evacuate these patients by NHC employees, Fire Department personnel and other volunteers. There have been eighteen patient deaths since the fire, an undetermined number of which may be related to the events of September 25, 2003.

The fire produced extensive media coverage, specifically focused on the lack of requirements that health care centers, including hospitals, constructed prior to 1994 are not required to be fully sprinkled if constructed with fire resistant materials. We have announced that irrespective of code standards we will commence a process of fully sprinkling all facilities operated by NHC that are not already fully sprinkled. We have created through our National Health Foundation (a qualified 501(c)(3) charity) a patient and family relief fund, which is being administered separately from other funds of the Foundation by families of Nashville patients. The prayers and best wishes of the NHC family partners have gone forth to all patients and families affected by this fire. We are proactively seeking to resolve any questions or losses with our patients and their families, and will continue to do so until all matters are resolved. Unfortunately, there have already been 11 lawsuits filed in the state court system in Tennessee. It is too early to make any assessment of the potential liability or cost to the company.

Forward-Looking Statements

References throughout this document to the Company include National HealthCare Corporation and its wholly-owned subsidiaries. In accordance with the Securities and Exchange Commission's "Plain English" guidelines, this Quarterly Report on Form 10-Q has been written in the first person. In this document, the words "we", "our", "ours" and "us" refer only to National HealthCare Corporation and its wholly-owned subsidiaries and not any other person.

This Quarterly Report on Form 10-Q and other information we provide from time to time, contains certain "forward-looking" statements as that term is defined by the Private Securities Litigation Reform Act of 1995. All statements regarding our expected future financial position, results of operations or cash flows, continued performance improvements, ability to service and refinance our debt obligations, ability to finance growth opportunities, ability to control our patient care liability costs, ability to respond to changes in government regulations, ability to execute our three-year strategic plan, and similar statements including, without limitations, those containing words such as "believes", "anticipates", "expects", "intends", "estimates", "plans", and other similar expressions are forward-looking statements.

Forward-looking statements involve known and unknown risks and uncertainties that may cause our actual results in future periods to differ materially from those projected or contemplated in the forward-looking statements as a result of, but not limited to, the following factors:

• 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 our 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;
• liabilities and other claims asserted against us, including patient care liabilities, as well as the resolution of current litigation (see "Note 5: Legal Proceedings);
• the ability of third parties for whom we have guaranteed debt to refinance certain short term debt obligations;
• the ability to attract and retain qualified personnel;
• the availability and terms of capital to fund acquisitions and capital improvements;
• the competitive environment in which we operate;
• the ability to maintain and increase census levels; and
• demographic changes.

See the notes to the quarterly financial statement, and "Item 1. Business" as is found in our 2002 Annual Report on Form 10-K for a discussion of various governmental regulations and other operating factors relating to the healthcare industry and the risk factors inherent in them. This may be found on our web side at www.nhccare.com. You should carefully consider these risks before making any investment in the Company. These risks and uncertainties are not the only ones facing us. There may be additional risks that we do not presently know of or that we currently deem immaterial. If any of the risks actually occur, our business, financial condition or results of operations could be materially adversely affected. In that case, the trading price of our shares of stock could decline, and you may lose all or part of your investment. Given these risks and uncertainties, we can give no assurances that these forward-looking statements will, in fact, transpire and, therefore, caution investors not to place undue reliance on them.

Item 3. Quantitative and Qualitative Information About Market Risk

Interest Rate Risk

Our cash and cash equivalents consist of highly liquid investments with a maturity of less than three months. As a result of the short-term nature of our cash instruments, a hypothetical 10% change in interest rates would have no impact on our future earnings and cash flows related to these instruments. Approximately $31.5 million of our notes receivable bear interest at fixed interest rates. As the interest rates on these notes receivable are fixed, a hypothetical 10% change in interest rates would have no impact on our future earnings and cash flows related to these instruments. Approximately $7.9 million of our notes receivable bear interest at variable rates (generally at prime plus 2%). Because the interest rates of these instruments are variable, a hypothetical 10% change in interest rates would result in a related increase or decrease in annual interest income of approximately $42,000. As of September 30, 2003, $13.7 million of our long-term debt and debt serviced by other parties bear interest at fixed interest rates. Because the interest rates of these instruments are fixed, a hypothetical 10% change in interest rates would have no impact on our future earnings and cash flows related to these instruments. The remaining $11.4 million of our long-term debt and debt serviced by other parties bear interest at variable rates. Because the interest rates of these instruments are variable, a hypothetical 10% change in interest rates would result in a related increase or decrease in annual interest expense of approximately $30,000.

Equity Price Risk

We consider our investments in marketable securities as "available for sale" securities and unrealized gains and losses are recorded in stockholders' equity in accordance with Statement of Financial Accounting Standards No. 115. The investments in marketable securities are recorded at their fair market value based on quoted market prices. Thus, there is exposure to equity price risk, which is the potential change in fair value due to a change in quoted market price. Hypothetically, a 10% change in quoted market prices would result in a related 10% change in the fair value of our investments in marketable securities.

Item 4. Controls and Procedures

As of September 30, 2003, an evaluation was performed under the supervision and with the participation of the Company's management, including the Chief Executive Officer ("CEO") and Principal Accounting Officer ("PAO"), of the effectiveness of the design and operation of the Company's disclosure controls and procedures. Based on that evaluation, the Company's management, including the CEO and PAO, concluded that the Company's disclosure controls and procedures were effective as of June 30, 2003. There have been no significant changes in the Company's internal controls or in other factors that could significantly affect internal controls during the quarter ended or subsequent to September 30, 2003.

Item 1. Legal Proceedings.

For a discussion of prior, current and pending litigation of material significance to NHC, please see Note 5 of this Form 10-Q.

Item 2. Changes in Securities. Not applicable

Item 3. Defaults Upon Senior Securities. None

Item 4. Submission of Matters to Vote of Security Holders. None

Item 5. Other Information. None

Item 6. Exhibits and Reports on Form 8-K.

(a) List of exhibits

Exhibit No.	Description
31	Rule 13a-14(a)/15d-14(a) Certifications
	302 Certification of W. Andrew Adams
	302 Certification of Donald K. Daniel
99	Additional Exhibits
	906 Certification of W. Andrew Adams
	906 Certification of Donald K. Daniel

(b) Reports on Form 8-K.

Form 8-K filed on September 2, 2003 regarding new election of James Paul Abernathy to the Board of Directors.

Form 8-K filed on October 2, 2003 regarding a fire at NHC HealthCare/Nashville, LLC, a subsidiary of National HealthCare Corporation.

Form 8-K filed on October 8, 2003 regarding the addition of sprinklers to its licensed nursing homes with an estimated cost of $10 million.

Form 8-K filed on November 5, 2003 regarding third quarter earnings release.

SIGNATURES

Pursuant to the requirements of the Security Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

EXHIBIT 31

CERTIFICATION

I, W. Andrew Adams, certify that:

1. I have reviewed this quarterly report on Form 10-Q of National HealthCare Corporation;

2. Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent function);

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: November 11, 2003

CERTIFICATION

I, Donald K. Daniel, certify that:

1. I have reviewed this quarterly report on Form 10-Q of National HealthCare Corporation;

2. Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent function);

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: November 11, 2003

Exhibit 99

Certification of Quarterly Report on Form 10-Q

of National HealthCare Corporation

For The Quarter Ended September 30, 2003

The undersigned hereby certify, pursuant to 18 U.S.C. Section 906 of the Sarbanes-Oxley Act of 2002, that, to the undersigned's best knowledge and belief, the Quarterly Report on Form 10-Q for National HealthCare Corporation ("Issuer") for the period ending June 30, 2003 as filed with the Securities and Exchange Commission on the date hereof (the "Report"):