EXHIBIT 10.03(f)(ii)

                            PERSONAL AND CONFIDENTIAL



                                  April 4, 1997



Mr. Gary W. Singleton
78 Southport Cove
Bonita Springs, FL 34134

Dear Gary:

This is to summarize our agreement  concerning the terms of your separation from
Community Care of America, Inc. (the "Company").  By signing this document,  you
agree to the following:

1.   By your  execution  hereof,  you  hereby  confirm  your  resignation  as an
     employee and officer of the Company and its subsidiaries, and as a director
     of the Company  and its  subsidiaries,  effective  as of April 4, 1997 (the
     "Termination Date").

2.   In full satisfaction of any and all amounts now or hereafter payable to you
     under the Company's  Supplemental  Deferred  Compensation Plan, the Company
     shall  pay to you a  total  sum of  $25,000,  payable  in a six  (6)  month
     promissory note at an annual  interest rate of seven (7) percent.  The note
     and any accrued  interest shall become  immediately  due and payable in the
     event of the sale of the Company. It is agreed that the Company's agreement
     to make such payment is in cancellation of the prior promissory note of the
     Company  to you  dated  September  13,  1996,  in the  principal  amount of
     $125,000,  and the  replacement  note of the Company in the same  principal
     amount dated January 2, 1997.  You agree to deliver back to the Company for
     cancellation  both of the said promissory notes upon your execution of this
     Letter Agreement.

3.   The Company  hereby agrees to continue  your  benefits  under the Company's
     health care plans,  including  the  Exec-u-Care  Plan,  for a period of six
     months from the Termination Date.

4.   The Company agrees: (i) to pay to you a severance payment  representing six
     (6)  months  salary  and  automobile  allowance  in  the  total  amount  of
     $154,500.00,  which amount shall be paid without  interest,  in two initial
     installments  of  $12,875.00  on April  15,  1997 and  April  30,  1997 and
     subsequent semi-monthly  installments of $6,437.50 each for ten (10) months
     thereafter, pursuant to a promissory note of the Company to be delivered to
     you upon  execution  hereof,  and (ii) to vest  you in 25  percent  of your
     awarded options which will be repriced at at any general repricing level if
     the Company's  options are repriced prior to or at the sale of the Company.
     You agree to provide reasonable consultation services to the

                                                               
<PAGE>


                                       
Mr. Gary W. Singleton                  -2-                         April 4, 1997


     Company as may be requested during this period. In the event of the sale of
     the  Company,  the  remaining  severance  will become  immediately  due and
     payable.

5.   You agree not to disclose to any person or entity any trade,  technical  or
     technological secrets, details of organization,  business affairs, or other
     information  of a  proprietary  or  confidential  nature  relating  to  the
     business of or belonging to the Company,  its  subsidiaries  or affiliates.
     Subject to a legal obligation or a fiduciary duty to others,  you agree not
     to malign or make  negative  statements  about  the  Company  or any of its
     officers,  directors  or  employees.  You agree to initiate  only  positive
     statements about the Company and its officers, directors and employees, and
     to act generally as a goodwill ambassador for the Company.

6.   With the  exception  of the above  obligations  of the  Company,  you,  for
     yourself,  your heirs and assigns,  do hereby waive,  relinquish,  release,
     acquit and forever  discharge the Company,  its  subsidiaries,  affiliates,
     shareholders,  directors,  officers  and  employees of and from any and all
     claims or rights that you may have or ever had against any of them, whether
     arising in respect of your employment, termination, compensation, benefits,
     or otherwise,  including,  without limitation, any claims arising under any
     employment  agreement  or under the  Civil  Rights  Act of 1964,  the Civil
     Rights  Act of 1991,  the Age  Discrimination  in  Employment  Act,  or any
     similar federal or state laws, rules, or regulations.

7.   You agree that you will  continue to be bound by all of the  covenants  and
     restrictions  set forth in Article V of your  Employment  Agreement,  dated
     April 19, 1996, with the Company (the  "Employment  Agreement".  Except for
     the said Article V and except for Article VII of the Employment  Agreement,
     the provisions of which shall also be applicable to this Letter  Agreement,
     all remaining  terms and provisions of the Employment  Agreement are hereby
     terminated  effective  as of the  Termination  Date.  For  purposes  of the
     notices  provision of Article VII of the Employment  Agreement (and for any
     notices  hereunder),  your  address  is as  follows  until we are  notified
     otherwise pursuant to said Article VII:

                        78 Southport Cove
                        Bonita Springs, FL 34134

8.   In the event that you materially violate any of the covenants  contained in
     this Letter  Agreement,  the Company may, at its election,  forthwith cease
     providing  you with any of the  payments  under this Letter  Agreement.  In
     addition, you acknowledge and agree that the amount of damages in the event
     of  your  breach  of  this  Letter  Agreement  will  be  difficult,  if not
     impossible, to ascertain. You therefore agree that the Company, in addition
     to, and without  limiting any other remedy or right it may have, shall have
     the right to an injunction  enjoining  any breach of the covenants  made by
     you in this Letter Agreement.

9.   We have  advised  you of your right to consult an  attorney.  If you do not
     choose to consult an attorney  before  execution of this Letter  Agreement,
     you have knowingly waived that right.

                                             
<PAGE>


                                       
Mr. Gary W. Singleton                 -3-                         April 4, 1997


10.  You acknowledge  that you have read this Letter  Agreement,  understand its
     contents,  and have been given a period of 21 days to review  and  consider
     this agreement, ask questions and have problems resolved.

11.  You  acknowledge   that  you  are  entering  into  this  Letter   Agreement
     voluntarily and not as a result of any pressure, coercion or duress.

12.  For a period of seven (7) days  following  your  execution  of this  Letter
     Agreement,  you may revoke this Letter  Agreement by written  notice to the
     Company.  The Letter  Agreement  shall not become  effective or enforceable
     until the seven (7) day revocation period has ended.

13.  This Letter  Agreement  sets forth the entire  agreement and  understanding
     between  us  and  shall  supersede  all  prior  agreements,   documents  or
     discussions  with  respect  to the  matters  herein  covered.  This  Letter
     Agreement  may be amended,  modified,  or waived only by an  instrument  in
     writing signed by the parties hereto.

                                   Sincerely,

                                   COMMUNITY CARE OF AMERICA, INC.


                                   By: Deborah Lau
                                       ---------------

                                   Title: President & Chief Executive Officer
                                          -----------------------------------


AGREED TO AND ACCEPTED:


-------------------------------       
Gary W. Singleton          Date
                                


cc:  Personnel File