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)
                               September 13, 2004

                                  ADVOCAT, INC.
             (Exact name of registrant as specified in its charter)



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

         [ ] Written communications pursuant to Rule 425 under the Securities
             Act (17 CFR 230.425)
         [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act
             (17 CFR 240.14a-12)
         [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
             Exchange Act (17 CFR 240.14d-2(b))
         [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
             Exchange Act (17 CFR 240.13e-4(c))



Item 8.01.  Other Events.

     On September 13, 2004, Advocat, Inc. (the "Company") announced that it had
reached an agreement with the Attorney General of the State of Arkansas to
settle all civil claims the State had filed against the Company. A press release
dated September 13, 2004 announcing the settlement is attached hereto as Exhibit
99.1.

Item 9.01.  Financial Statements and Exhibits.

         (c) Exhibits

                  Number   Exhibit
                  ------   -------

                  99.1     News Release dated September 13, 2004.






                                   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 thereunto duly authorized.


                                  PRIVATE BUSINESS, INC.



                                           By:      /s/ L. Glynn Riddle, Jr.
                                                    ------------------------
                                                    L. Glynn Riddle, Jr
                                                    Chief Financial Officer

Date:    September 13, 2004




  EXHIBIT INDEX

  Number   Exhibit
  ------   -------

    99.1   News Release dated September 13, 2004.

EX-99.1

                                                                    Exhibit 99.1

Advocat Settles All Outstanding Claims With State of Arkansas

    FRANKLIN, Tenn.--(BUSINESS WIRE)--Sept. 13, 2004--Advocat Inc.
(NASDAQ OTC:AVCA) today announced that it reached an agreement with
the Attorney General for the State of Arkansas to settle all civil
claims filed against the Company by the State for alleged violations
by the Company in Arkansas. In the agreement, the Company did not
admit or agree, to any degree, any violation of any statute nor any
standard of care.
    In consideration of the settlement with the State of Arkansas,
Advocat will pay the State $400,000 in monthly payments over 24 months
and agreed to pay at least $600,000 to install sprinkler systems in
nursing homes owned by the Company in the State of Arkansas. The
settlement also included $300,000 in funds already expended by the
Company for additional training of nursing home staff.
    "We are pleased to reach the settlement with Arkansas," stated
William R. Council, III, Chief Executive Officer of Advocat. "We did
not agree with the Attorney General's assertions in their lawsuits and
were prepared to fight them vigorously. However, we understand and
agree that this is a compromise settlement of doubtful and disputed
claims. We appreciate the willingness of the Arkansas Attorney General
to work with us on a settlement and believe it is in the best interest
of our residents in Arkansas and our shareholders. The safety and
security of our residents was our primary goal and I believe this
settlement with the State of Arkansas underscores our commitment to
providing quality care," concluded Mr. Council.
    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, 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. 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

    CONTACT: Advocat Inc., Franklin
             William R. Council, III, 615-771-7575