For release: August 7, 2007

Exhibit 99.1

[ex9912008nhcthirdquartere001.jpg]

For release: November 6, 2008

Contact: Gerald Coggin, Sr. V.P. Corporate Relations

Phone: (615) 890-2020

NHC reports third quarter earnings

MURFREESBORO, Tenn. -- National HealthCare Corporation (NYX-US: NHC, NHC.PR.A), today announced that revenues for the third quarter increased 10.5% from $147,719,000 to $163,271,000. After removing the impact of a gain on the sale of assets in 2007, NHC’s net income for the third quarter increased 107.1% over the same quarter for 2007.

Third quarter net income available to common shareholders was $11,604,000 or 91 cents per basic common share, compared to $13,126,000 or $1.05 per basic share in the third quarter of 2007. Pretax earnings for the comparable quarter of the prior year included a gain on the sale of assets in the amount of $10,792,000.

NHC provides services to 76 long-term health care centers with 9,772 beds. NHC also operates 32 homecare programs, seven independent living centers and 23 assisted living centers. NHC’s other services include managed care specialty medical units, Alzheimer’s units, hospice, and a rehabilitation services company. In order to understand in all material respects the financial condition, results of operations and cash flows of NHC, the investor must review our most recent Form 10-Q quarterly report, Form 10-K annual report and press releases which are available on our web site at www.NHCcare.com.

Statements in this press release that are not historical facts are forward-looking statements. NHC cautions investors that any forward-looking statements made involve risks and uncertainties and are not guarantees of future performance. The risks and uncertainties are detailed from time to time in reports filed by NHC with the S.E.C., including Forms 8-K, 10-Q and 10-K, and include, among others, the following: liabilities and other claims asserted against us, as well as the resolution of current litigation; availability of insurance and assets for indemnification; 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, the ability of third parties for whom we have guaranteed debt to refinance certain short term debt obligations; and other factors referenced or incorporated by reference in the S.E.C. filings. The risks included here are not exhaustive. All forward-looking statements represent NHC’s best judgment as of the date of this release.

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NHC reports third quarter earnings

Condensed Statements of Income

(in thousands, except share and per share amounts)

Three Months Ended

Nine Months Ended

September 30

Revenues:

2008

2007

2008

2007

Net patient revenues

$ 146,521

$ 134,131

$ 433,649

$ 401,642

Other revenues

16,750

13,588

50,325

42,527

Net revenues

163,271

147,719

483,974

444,169

Costs and Expenses:

Salaries, wages and benefits

88,036

83,540

261,889

244,253

Other operating

44,755

40,992

134,708

123,753

Recovery of notes receivable

(6,195)

Gain on sale of assets

(10,792)

Rent

7,834

10,535

23,628

31,544

Depreciation and amortization

6,218

3,892

18,239

11,476

Interest

274

281

663

851

Total costs and expenses

147,117

128,448

439,127

394,890

Income Before Income Taxes

16,154

19,271

44,847

49,279

Income Tax Provision

(2,381)

(6,145)

(13,416)

(17,221)

Net Income

13,773

13,126

31,431

32,058

Dividends to Preferred Shareholders

(2,169)

(6,505)

Net income available to common shareholders

$ 11,604

$ 13,126

$ 24,926

$ 32,058

Earnings Per Common Share:

Basic

$ 0.91

$ 1.05

$ 1.95

$ 2.56

Diluted

$ 0.88

$ 1.01

$ 1.90

$ 2.47

Weighted average common shares outstanding

Basic

12,788,968

12,538,340

12,778,786

12,534,269

Diluted

15,678,702

12,981,366

13,099,488

12,989,561

Balance Sheet Data

(in thousands)

Sept. 30

Dec. 31

2008

2007

Cash and marketable securities

$ 218,660

$ 167,779

Current assets

289,174

246,014

Total assets

752,303

698,408

Current liabilities

195,115

188,825

Long-term obligations

49,802

33,790

Deferred lease credit

3,938

4,847

Deferred revenue

15,888

15,238

Stockholders' equity

487,560

455,708

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NHC Reports Third Quarter Earnings

Selected Operating Statistics

	Three Months Ended		Nine Months Ended
	September 30		September 30
	2008	2007	2008	2007
Per Diems:
Medicare	$ 364.28	$ 349.97	$ 363.39	$ 350.18
Medicaid	147.70	143.61	146.64	141.57
Private Pay and Other	214.55	202.71	214.66	202.27

Patient Days:
Medicare	103,213	96,627	309,567	296,600
Medicaid	281,097	280,084	830,260	831,164
Private Pay and Other	171,478	165,101	501,526	471,688
	555,788	541,812	1,641,353	1,599,452

Average Per Diem	$ 208.55	$ 198.42	$ 208.30	$ 198.15

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