8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of Report (Date of earliest event reported)
June 7, 2005 (June 7, 2005)

ADVOCAT INC.

(Exact name of registrant as specified in its charter)

Delaware	001-12996	62-1559667
(State or other jurisdiction of incorporation)	(Commission File Number)	(Employer Identification Number)

277 Mallory Station Road, Suite 130, Franklin, Tennessee 37067
(Address of principal executive offices)

(615) 771-7575
(Registrant’s telephone number, including area code)

Not applicable
(Former name or former address, if changed since last report)

     Check the appropriate box below if the Form 8-K is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

TABLE OF CONTENTS

	Item 8.01. Other Events
	Item 9.01. Financial Statements and Exhibits.
SIGNATURES
	EXHIBIT INDEX
Ex-99.1 Press Release

Item 8.01. Other Events

     On June 7, 2005 Advocat Inc. (the “Company”) announce revisions to the estimated impact of the Proposed RUG Refinement Rule issued by the Centers for Medicare and Medicaid (CMS). A press release announcing the revised estimates is attached as an exhibit hereto.

Item 9.01. Financial Statements and Exhibits.

(c)   Exhibits

Number	Exhibit
99.1	Press release dated June 7, 2005

SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	ADVOCAT INC.
	By:	/s/ L. Glynn Riddle, Jr.
		L. Glynn Riddle, Jr Chief Financial Officer
Date: June 7, 2005

EXHIBIT INDEX

Number	Exhibit
99.1	Press Release dated June 7, 2005.

EX-99.1

                                                                    EXHIBIT 99.1

ADVOCAT INC.
277 MALLORY STATION ROAD, SUITE 130
FRANKLIN, TENNESSEE  37067
(615) 771-7575                                                      NEWS RELEASE

- --------------------------------------------------------------------------------
Contact:    William R. Council, III
            Chief Executive Officer

        ADVOCAT REVISES ESTIMATED IMPACT OF PROPOSED RUG REFINEMENT RULE

FRANKLIN, Tenn. - (June 7, 2005) - Advocat Inc. (NASDAQ OTC: AVCA) today revised
its estimate of the impact on revenues of the proposed Resource Utilization
Group (RUG) refinement. The Centers for Medicare and Medicaid (CMS) recently
published a Notice of Proposed Rule Making for the implementation of the
long-scheduled RUG refinement. According to the CMS press release, the Proposed
Rule includes the introduction of nine new payment categories, increases in the
case mix index for all of the RUG's and the elimination of the "add-on" payments
that have increased the reimbursement for the last several years. The increase
in payments associated with the RUG refinements, together with an annual
inflation increase of approximately three percent, will (according to CMS)
"result in virtually no change in overall SNF Medicare payments in FY 2006."

The Company had previously reported that the possible impact from the RUG
revisions and add-on elimination could reduce revenue and cash flow before taxes
by approximately $3.6 million per year. While the Company cannot at this time
fully quantify the reimbursement impact, in part because CMS has not yet
published all the data needed to quantify the effect, management currently
believes that the proposed rules, if implemented, would result in a reduction in
reimbursement for the Company in 2006 as compared to 2005. The Company's
estimate of this effect is currently between $1.3 million and $2.0 million. The
rules are not yet final and may not be implemented or may be revised prior to
their adoption. The Company is actively involved, along with many other nursing
home providers, in the review of the proposed rules and will be participating in
providing comments to CMS for their review prior to the final implementation.

Advocat also updated certain information regarding professional liability. The
Company's professional liability expense was a negative $1.9 million in 2004, a
net benefit resulting from downward revisions in previous estimates. The $1.9
million benefit included a provision for 2004 claims of $16.7 million, offset by
a benefit of $18.6 million as a result of downward adjustments in the liability
for claims incurred and accrued prior to 2004, as determined by quarterly
actuarial valuations of the accruals for claims related to years 2003 and prior.
The number of lawsuits filed against the Company was 19 in 2004 compared to 36
in 2003.

         Forward-looking statements made in this release involve a number of
risks and uncertainties, including but not limited to, uncertainty regarding the
Company's ability to restructure or refinance its debt, the impact of
under-insured professional liability claims, the accuracy of the Company's
estimate of its anticipated professional liability expense, factors affecting
the long-term care industry in general,




governmental reimbursement, government regulation, health care reforms, the
impact of future licensing surveys, changing economic and market conditions and
other risk factors detailed in the Company's Securities and Exchange Commission
filings. The Company has provided additional information in its Annual Report on
Form 10-K for the fiscal year ended December 31, 2004, as well as in other
filings with the Securities and Exchange Commission, which readers are
encouraged to review for further disclosure of other factors that could cause
actual results to differ materially from those indicated in the forward-looking
statements. Advocat Inc. is not responsible for updating the information
contained in this press release beyond the published date, or for changes made
to this document by wire services or Internet services.

         Advocat Inc. provides long-term care services to nursing home patients
and residents of assisted living facilities in nine states, primarily in the
Southeast.

     For additional information about the Company, visit Advocat's web site:
                            http://www.irinfo.com/avc