EXHIBIT 10.03(a)(iii)

                     MUTUAL SETTLEMENT AND RELEASE AGREEMENT


     Mutual  Settlement  and Release  Agreement  (the  "Agreement")  dated as of
January 30, 1997, between Kenneth W. Creasman ("Creasman"), having an address at
363 Sedgwick Court,  Naples,  FL 33963,  and Community Care of America,  Inc., a
Delaware  corporation,  having an address at 3050 N. Horseshoe Drive, Suite 260,
Naples, FL 33942 ("CCA").

     WHEREAS,  Creasman and CCA are parties to a Letter  Agreement,  dated April
26,  1996 (the  "Letter  Agreement")  pursuant to which CCA agreed to (i) pay to
Creasman  a monthly  consulting  fee in the  amount of  $24,135.56  pursuant  to
Paragraph  2 of the Letter  Agreement,  and (ii) pay to  Creasman a monthly  car
allowance in the amount of $750.00 and provide to him certain  health  insurance
coverage pursuant to Paragraph 3 of the Letter  Agreement,  each for a period of
eighteen (18) months running from April 19, 1996; and

     WHEREAS,  Creasman is indebted to CCA pursuant to two promissory notes (the
"Notes"),  one of which is dated  December 29, 1993,  in the original  principal
amount of $150,000.00 and the other dated May 8, 1996, in the original principal
amount of $141,600.00; and

     WHEREAS,  Creasman  has filed a lawsuit  against  CCA,  styled  Kenneth  W.
Creasman v. Community Care of America,  Inc., Case No.  96-3805CA-01-TB,  in the
Twentieth Judicial Circuit of Florida (the "Lawsuit"); and

     WHEREAS, the parties wish to settle the Lawsuit and their respective claims
in respect of the Notes and the Letter Agreement.

     NOW,  THEREFORE,  for good and  valuable  consideration,  the  receipt  and
sufficiency of which is hereby  acknowledged,  CCA and Creasman  hereby agree as
follows:

     1. Creasman  hereby  releases and  discharges CCA from any and all actions,
causes of action,  suits,  debts,  dues,  sums of money,  accounts,  reckonings,
bonds, bills,  specialties,  covenants,  contracts,  controversies,  agreements,
promises, variances, trespasses, damages, judgments, extents, executions, claims
and demands  whatsoever,  in law,  admiralty  or equity by  Creasman  and/or his
successors,  administrators,  executors, heirs and assigns, which against any or
all of CCA and/or its  successors  and assigns,  Creasman  ever had, now has, or
hereafter can,  shall or may, have for, upon, or by reason of any matter,  cause
or thing  whatsoever  arising out of, or under, or by reason of Paragraphs and 2
and 3 of the Letter Agreement, including, without limitation, any obligations of
CCA to perform any action or make any future  payment  pursuant to  Paragraphs 2
and 3 of the Letter Agreement ("Released Creasman Claims").

     2. CCA hereby  releases and  discharges  Creasman from any and all actions,
causes  of  actions,  suits,  debts,  dues,  sums of  money,  accrued  interest,
accounts,   reckonings,   bonds,  bills,  specialties,   covenants,   contracts,
controversies,  agreements, promises, variances, trespasses, damages, judgments,
extent,  executions,  claims and demands whatsoever, in law, admiralty or equity
by CCA


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and/or its  successors  and  assigns,  which  against any or all of the Creasman
and/or his successors,  administrators,  executors,  heirs and assigns, CCA ever
had, now has, or hereafter  can,  shall or may, have for,  upon, or by reason of
any matter,  cause or thing whatsoever arising out of, or under, or by reason of
(i) the Notes,  and (ii) any other claim on the part of CCA against  Creasman of
which CCA has actual  knowledge as of the date of this Agreement  (collectively,
"Released CCA Claims");  provided  that the terms of  subparagraph  (ii) of this
Paragraph 2 shall not apply to (and  Released  CCA Claims shall not be deemed to
include)  any matter in respect of which a claim is hereafter  asserted  against
CCA by any  shareholder of CCA or any other third party,  other than any officer
or director of CCA who held such position as of the date of this agreement.

     3. In  furtherance of the  foregoing,  Creasman  agrees not to commence any
legal or equitable proceeding, action or lawsuit against CCA with respect to any
Released Creasman Claim.

     4. In furtherance of the foregoing, CCA agrees not to commence any legal or
equitable  proceeding,  action or lawsuit  against  Creasman with respect to any
Released CCA Claim.

     5. CCA acknowledges  that of the 64,693 shares of CCA common stock owned by
Creasman,  (i) as of the date hereof,  a total of 17,251  shares were fully paid
for by Creasman more than two (2) years ago, and (ii) as of February 1, 1997, an
additional  15,095 shares will have been fully paid for by Creasman for a period
of more than two (2) years.  CCA agrees promptly to confirm,  upon request,  the
foregoing  information  in such manner and to such persons as may  reasonably be
necessary  in order  to  enable  Creasman  to  effect  sales  of his  shares  in
compliance with Rule 144 of the Securities and Exchange Commission.

     6. The parties  acknowledge  and agree that this Agreement  constitutes the
release and settlement of all outstanding  Released Creasman Claims and Released
CCA Claims, including,  without limitation, the Lawsuit. Creasman agrees to have
the lawsuit dismissed with prejudice as soon as is reasonably  practicable after
the date hereof.

     7. This Agreement shall inure to the benefit of each person or entity which
now or  hereafter  may become  jointly  liable for,  or shall be a guarantor  or
surety of any Released Creasman Claims or Released CCA Claim.

     8. This Agreement  constitutes  the entire  agreement of the parties hereto
with  respect to the  subject  matter  hereof and may not be amended or modified
except in a writing executed by each of the parties hereto. This Agreement shall
be governed by the internal laws of the State of Florida applicable to contracts
executed,  delivered and to be fully performed in said State,  without regard to
contrary principles of conflict of laws.



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<PAGE>



     IN WITNESS WHEREOF, each of the undersigned has caused this Agreement to be
executed and delivered as of the date first above written.



                                         /s/ Kenneth W. Creasman
                                         -----------------------
                                         Kenneth W. Creasman
                                      
                                      
                                      
                                         COMMUNITY CARE OF AMERICA, INC.
                                      
                                      
                                         By:  /s/ Gary W. Singleton
                                              ---------------------
                                         Name:  Gary W. Singleton
                                         Title: President and CEO
                                      
                                                                        
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<PAGE>


STATE OF WISCONSIN       )
                         )           ss.:
COUNTY OF RACINE         )

     I, the undersigned  Notary Public for the aforesaid  jurisdiction,  certify
that before me personally came Kenneth W. Creasman, to me known, who being by me
duly sworn, did depose and say that he resides at 363 Sedgwick Court, Naples, FL
33963;  and that he is the person  described in and which executed the foregoing
instrument.

     Witness my hand and official seal this 14 day of January 1997.


                                                    Notary Public
                                                  
                                                  
                                                    /s/ Maureen Glynn
                                                    -----------------
                                                    Print Name:
[Seal]                                     

My Commission Expires: August 30, 2000



STATE OF FLORIDA           )
                           )           ss.:
COUNTY OF COLLIER          )

     I, the undersigned  Notary Public for the aforesaid  jurisdiction,  certify
that Gary W. Singleton came before me this day and  acknowledged  that he/she is
President & CEO of Community Care of America, Inc., a Delaware corporation,  and
that by authority  duly given and as the act of the  corporation,  the Agreement
was signed on behalf of said corporation.

     Witness my hand and official seal this 30TH day of January 1997.


                                                 Notary Public


                                                 /s/ Susan P. Wilke
                                                 ------------------
                                                 Print Name:  Susan P. Wilke
[Seal]

My Commission Expires: 7/13/99

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