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                                                                   EXHIBIT 10.32

                          CHANGE IN CONTROL SEVERANCE AGREEMENT


         AGREEMENT made as of December 8, 1995 between BEVERLY ENTERPRISES,
INC., a Delaware corporation (the "Company"), and FIELD(NAME) (the
"Executive").

         WHEREAS, the Executive is employed by the Company or by one of its
wholly-owned consolidated subsidiaries;

         WHEREAS, the Company recognizes that the Executive's contribution to
the Company's growth and success has been and continues to be substantial;

         WHEREAS, the Company wishes to encourage the Executive to remain with
and devote full time and attention to the business affairs of the Company and
wishes to provide income protection to the Executive for a period of time in
the event of a Change in Control;

         NOW, THEREFORE, in consideration of the mutual agreements and
understandings set forth herein and for other good and valuable consideration,
the receipt and adequacy of which is hereby acknowledged, the Company and the
Executive hereby agree as follows;

         1.      Definitions.

                 (a)      "Base Salary" shall mean the Executive's regular
         annual rate of base pay as of the date in question.

                 (b)      "Cause" shall mean the Executive's (i) conviction of
         a crime involving moral turpitude, (ii) theft or embezzlement of
         property from the Company or (iii) willful misconduct or willful
         failure substantially to perform the duties of his position, but only
         if such has continued after receipt of such notices and cure periods
         as are provided for by the Company's disciplinary process as in effect
         on the Change in Control Date.

                 (c)      A "Change of Control" shall be deemed to have taken
         place if: (i) any person, corporation, or other entity or group,
         including any "group" as defined in Section 13(d)(3) of the Securities
         Exchange Act of 1934, other than any employee benefit plan then
         maintained by the Company, becomes the beneficial owner of shares of
         the Company having 30 percent or more of the total number of votes
         that may be cast for the election of Directors of the Company; (ii) as
         the result of, or in connection with, any contested election for the
         Board of Directors of the Company, or any tender or exchange offer,
         merger or other business combination or sale of assets, or any
         combination of the foregoing (a "Transaction"), the persons who were
         Directors of the Company before the Transaction shall cease to
         constitute a majority of the Board of Directors of the Company or any
         successor to the Company or its assets, or (iii) at any time a the
         Company shall consolidate or merge with any other Person and the
         Company shall not be the continuing or surviving corporation, b any
         Person shall consolidate or merge with the Company, and the Company
         shall be the continuing or surviving corporation and in connection
         therewith, all or part of the outstanding Company stock shall be
         changed into or exchanged for stock or other securities of any other
         Person or cash or any other property, c the Company shall be a party
         to a statutory share exchange with any other Person after which the
         Company is a subsidiary of any other Person, or d the Company shall
         sell or otherwise transfer 50% or more of the assets or earning power
         of the Company and its subsidiaries (taken as a whole) to any Person
         or Persons.





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                 (d)      The "Change in Control Date" shall mean the date
         immediately prior to the effectiveness of the Change in Control.

                 (e)      The Executive shall have "Good Reason" to terminate
         employment if: (I) the Executive is not elected, reelected, or
         otherwise continued in the office of the Company or any of its
         subsidiaries which he held immediately prior to the Change in Control
         Date, or he is removed as a member of the Board of Directors of the
         Company or any of its subsidiaries if the Executive was a director
         immediately prior to the Change in Control Date; (ii) the Executive's
         duties, responsibilities or authority are materially reduced or
         diminished from those in effect on the Change in Control Date without
         the Executive's consent; (iii) the Executive's compensation or
         benefits are reduced; (iv) the Company reduces the potential earnings
         of the Executive under any performance- based bonus or incentive plan
         of the Company in effect immediately prior to the Change in Control
         Date; (v) the Company requires that the Executive's employment be
         based at a location other than the location at the Change in Control
         Date; (vi) any purchaser, assign, surviving corporation, or successor
         of the Company or its business or assets (whether by acquisition,
         merger, liquidation, consolidation, reorganization, sale or transfer
         of assets or business, or otherwise) fails or refuses to expressly
         assume in writing this Agreement and all of the duties and obligations
         of the Company hereunder pursuant to Section 14 hereof; or (vii) the
         Company breaches any of the provisions of this Agreement.

                 (f)      "Person" shall have the meaning ascribed to such term
         in Section 3(a)(9) of the Securities Exchange Act of 1934 and used in
         Sections 13(d) and 14(d) thereof including a "group" as defined in
         Section 13(d).

                 (g)      "Target Bonus" shall mean the target bonus (100%
         level) established for the Executive for the year in question under
         the Company's "Annual Incentive Plan" or "Performance Unit Plan," as
         applicable.

                 (h)      "Termination of Employment" shall mean the
         termination of the Executive's employment by the Company other than
         such a termination in connection with an offer of immediate
         reemployment by a successor or assign of the Company or purchaser of
         the Company or its assets under terms and conditions which would not
         permit the Executive to terminate his employment for Good Reason.

         2.      Term. The initial term of this Agreement shall be for the
period commencing on the later of December 8, 1995 or the Executive's
employment commencement date with the Company or any of its subsidiaries (the
"Effective Date") and ending on December 7, 1998. The Term shall be
automatically extended by one additional day for each day beyond the Effective
Date of this Agreement that the Executive remains employed by the Company until
such time as the Company elects to cease such extension by giving written
notice of such to the Executive. (In such event, the Agreement shall thus
terminate on the third anniversary of the effective date of such notice).

         3.      Eligibility for Severance Benefits. The Executive shall be
eligible for the benefits described in Paragraph 4 (the "Severance Benefits")
if, during the Term there has been a Change in Control and during the two year
period commencing on the Change in Control Date, the Executive has a
Termination of Employment initiated (i) by the Company without Cause or (ii) by
the Executive for Good Reason.





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         4.      Severance Benefit. Upon satisfaction of the requirements set
forth in Paragraph 3, and subject to Paragraphs 5 and 9, the Executive shall be
entitled to the following Severance Benefits:

                 (a)      Cash Payment. The Executive shall be entitled to
         receive an amount of cash equal to FIELD(TIMES) times the greater of

                          (i)     the sum of the Executive's Base Salary and
                 Target Bonus, in each case as in effect upon the Termination
                 of Employment, or,

                          (ii)    the sum of the Executive's Base Salary and
                 Target Bonus, in each case as in effect on the Change in
                 Control Date.

The payment shall be made in a single lump sum upon the Executive's Termination
of Employment unless the Executive shall have elected another method on the
signature page hereof.

                 (b)      Long-Term Incentive Award: Equity-Based Compensation.
         To the extent not already vested pursuant to the Terms of said plan,
         the Executive's interest under the Company's Long-Term Stock Incentive
         Plan shall be fully vested. To the extent not already vested pursuant
         to the terms of any option plans then in effect, any and all (i)
         options, phantom units, and other awards granted to Executive pursuant
         to any such plan to purchase Company stock or which is measured by the
         current market value of Company stock and (ii) restricted stock of the
         Company, owned by the Executive, shall be fully vested.

                 (c)      Continuation of Benefits.

                          (i)     For a period of FIELD(TIMES) years following
         the Termination of Employment, the Executive shall be treated as if he
         or she had continued to be an employee for all purposes under the
         Company's Medical Plan, Executive Medical Reimbursement Plan and
         Dental Plan. Following this period, the Executive shall be entitled to
         receive continuation coverage under part 6 of Title I of ERISA ("COBRA
         Benefits) treating the end of this period as a termination of the
         Executive's employment (other than for gross misconduct).

                          (ii)    The Company shall maintain in force, at its
         own expense, for the remainder of the Executive's life, the vested
         life insurance in effect under the Company's Executive Life Insurance
         Plan as of the Change in Control Date or as of the date of Termination
         of Employment, whichever is greater.

                 (d)      Relocation Benefit.   If the Executive's next
         full-time employment commences within FIELD(TIMES) years after the
         Executive's Termination of Employment with the Company and is based
         more than 25 miles from Fort Smith, Arkansas, and within the
         continental United States, the Company will reimburse the Executive
         for any reasonable relocation expenses (in accordance with the
         Company's general relocation policy for executives as then in effect,
         or, at the Executive's election, as in effect on the Change in Control
         Date) in connection with accepting or continuing such employment.

                 (e)      Executive Retirement Plan. For the year of the
         Executive's Termination of





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         Employment, the Company will make the contribution to its Executive
         Retirement Plan (the "Retirement Plan") that it would have made if the
         Executive had not had a Termination of Employment, but in no event
         less than the percentage contribution it made for the Executive in the
         immediately preceding year (and increased to take account of the
         additional year of service), in each case taking account of the
         Executive's annualized rate of "Compensation" (as defined in the
         Retirement Plan) and the percentage of such Compensation that the
         Executive is contributing to the Retirement Plan, as of the date of
         Termination of Employment, and the Company's matching contribution
         rate for such year (or, if greater, the preceding year). The portion
         of the Company's matching contribution which is based on the preceding
         year's contribution percentage shall be paid to the Executive
         immediately upon his Termination of Employment and any additional
         contribution shall be paid as soon as it is determined.

                 (f)      Disability. For the two year period following the
         Executive's Termination of Employment for any reason other than Cause,
         the Company shall provide disability insurance benefits coverage to
         Executive equivalent to the coverage that the Executive would have had
         had he remained employed under the Company's disability insurance plan
         applicable to Executive on the date of Termination of Employment, or,
         at the Executive's election, the plan applicable to Executive as of
         the Change in Control Date. Should Executive become disabled during
         such period, Executive shall be entitled to receive such benefits, and
         for such duration, as the applicable plan provides.

                 (g)      Plan Amendments. The Company shall adopt such
         amendments to its employee benefit plans and insurance policies as are
         necessary to effectuate the provisions of this Agreement. If and to
         the extent any benefits under this Paragraph 4 are not paid or payable
         or otherwise provided to the Executive or his dependents or
         beneficiaries under any such plan or policy (whether due to the terms
         of the plan or policy, the termination thereof, applicable law, or
         otherwise), then the Company itself shall pay or provide for such
         benefits.

         5.      Golden Parachute Gross-Up. If, in the written opinion of a Big
6 accounting firm engaged by either the Company or the Executive for this
purpose (at the Company's expense), or if so alleged by the Internal Revenue
Service, the aggregate of the benefit payments under Paragraph 4 would cause
the payment of one or more of such benefits to constitute an "excess parachute
payment" as defined in Section 280G(b) of the Internal Revenue Code ("Code"),
then the Company will pay to the Executive an additional amount in cash (the
"Gross-Up Payment") equal to the amount necessary to cause the net amount
retained by the Executive, after deduction of any (i) excise tax on the
payments under Paragraph 4, (ii) federal, state or local income tax on the
Gross-Up Payment, and (iii) excise tax on the Gross-Up Payment, to be equal to
the aggregate remuneration the Executive would have received under Section 4,
excluding such Gross-Up Payment (net of all federal, state and local excise and
income taxes), as if Sections 280G and 4999 of the Code (and any successor
provisions thereto) had not been enacted into law. The Gross-Up Payment
provided for in this Paragraph shall be made within ten (10) days after the
termination of Executive's employment, provided however that if the amount of
the payment cannot be finally determined at the time, the Company shall pay to
Executive an estimate as determined in good faith by the Company of such
payments (together with interest at the rate provided in section 1274(b)(2)(B)
of the Code) as soon as the amount thereof can be determined but in no event
later than the thirtieth (30th) day after the date of termination. Any dispute
concerning the application of this Paragraph shall be resolved pursuant to
Paragraph 8, and if Paragraph 9 applies, any reference in this Paragraph to
Paragraph 4 shall also be deemed to include a reference to Paragraph 9 as well.





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         6.      Employment At-Will. Notwithstanding anything to the contrary
contained herein, the Executive's employment with the Company is not for any
specified term and may be terminated by the Executive or by the Company at any
time, for any reason, with or without cause, without liability except with
respect to the payments provided hereunder or as required by law or any other
contract or employee benefit plan.

         7.      Waiver of Other Severance Benefits.  The benefits payable
pursuant to this Agreement are in lieu of any other severance benefits which
may otherwise be payable to the Executive upon termination following a Change
in Control, (including, without limitation, any benefits to which Executive
might otherwise have been entitled under the "Agreement Concerning Benefits
Upon Severance" dated as of September 1, 1990 to which Executive and the
Company are parties), except those benefits which are to be made available to
the Executive as required by applicable law.

         8.      Disputes. Any dispute or controversy arising under, out of, in
connection with or in relation to this Agreement shall, at the election and
upon written demand of either party, be finally determined and settled by
binding arbitration in the city of Fort Smith, Arkansas, using a single
arbitrator, in accordance with the Labor Arbitration rules and procedures of
the American Arbitration Association, and judgment upon the award may be
entered in any court having jurisdiction thereof. The arbitrator shall have the
power to order specific performance, mandamus, or other appropriate legal or
equitable relief to enforce the provisions of this Agreement. The Company shall
pay all costs of the arbitration and all reasonable attorney's and accountant's
fees of the Executive in connection therewith.

         9.      Additional Payments Due to Dispute. Notwithstanding anything
to the contrary herein, and without limiting the Executive's rights at law or
in equity, if the Company fails or refuses to timely pay to the Executive the
benefits due under Paragraphs 4 and/or 5 hereof, then the benefits under
Paragraph 4(a) shall be increased and the benefits under Paragraphs 4(c), 4(d),
and 4(f) shall each be continued by one additional day for each day of any such
failure or refusal of the Company to pay. In addition, any Gross-Up Payment due
under Paragraph 5 shall be increased to take into account any increased
benefits under this Paragraph.

         10.     No Set-Off. There shall be no right of set-off or counterclaim
in respect of any claim, debt, or obligation against any payment to or benefit
for the Executive provided for in this Agreement.

         11.     No Mitigation Obligation. The parties hereto expressly agree
that the payment of the benefits by the Company to the Executive in accordance
with the terms of this Agreement will be liquidated damages, and that the
Executive shall not be required to mitigate the amount of any payment provided
for in this Agreement by seeking other employment or otherwise, nor shall any
profits, income, earnings or other benefits from any source whatsoever create
any mitigation, offset, reduction or any other obligation on the part of the
Executive hereunder or otherwise.

         12.     Trust. Any payments or installments that may be required to be
made to Executive under this Agreement shall be funded immediately prior to any
Change of Control Date (or, if earlier, within ten (10) days after any
Termination of Employment) by a contribution by the Company of the necessary
amount of cash, as determined by independent actuaries acceptable to both
Executive and the Company, to the irrevocable grantor trust created for such
purpose by the Company, with Chemical Bank as Trustee, dated July 18, 1995, a
copy of which Trust Agreement may he obtained from the Company or the Trustee.





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         13.     Letter of Credit for Legal Fees. In order to ensure the
benefits intended to be provided to the Executive hereunder, immediately prior
to any Change of Control Date the Company shall establish and hereby agrees to
maintain throughout the remaining Term an irrevocable standby Letter of Credit
in favor of the Executive and each other person who is named an Executive under
similar agreements, drawn on a bank selected by the Company (the "Letter of
Credit") which provides for a credit amount of $250,000 being made available to
the Executive against presentation at any time and from time to time of his
clean sight drafts, accompanied by statements of his counsel for fees and
expenses, in an aggregate amount not to exceed $250,000, unless a larger amount
is authorized by either the Chief Executive Officer, General Counsel, Chief
Financial Officer, or a Senior Vice President of the Company.

         14.     Successors; Binding Agreement.

                 (a)      This Agreement shall not be terminated by the
         voluntary or involuntary dissolution of the Company or by any merger
         or consolidation where the Company is not the surviving corporation,
         or upon any transfer of all or substantially all of the Company's
         assets, or any other Change in Control. The Company shall require any
         purchaser, assign, surviving corporation, or successor (whether direct
         or indirect, by purchase, merger, consolidation, reorganization or
         otherwise) to all or substantially all of the business and/or assets
         of the Company, by agreement in form and substance satisfactory to the
         Executive, expressly to assume and agree to perform this Agreement in
         the same manner and to the same extent the Company would be required
         to perform if no such succession had taken place. This Agreement shall
         be binding upon and inure to the benefit of the Company and any
         purchaser, assign, surviving corporation or successor to the Company,
         including without limitation any persons acquiring directly or
         indirectly all or substantially all of the business and/or assets of
         the Company whether by purchase, merger, consolidation,
         reorganization, transfer of all or substantially all of the business
         or assets of the Company, or otherwise (and such purchaser, assign,
         surviving corporation or successor shall thereafter be deemed the
         "Company" for the purposes of this Agreement), but this Agreement
         shall not otherwise be assignable, transferable or delegable by the
         Company.

                 (b)      This Agreement shall inure to the benefit of and be
         enforceable by the Executive's personal or legal representatives,
         executors, administrators, successors, heirs, distributees and/or
         legatees.

                 (c)      This Agreement is personal in nature and neither of
         the parties hereto shall, without the consent of the other, assign,
         transfer or delegate this Agreement or any rights or obligations
         hereunder except as expressly provided in this Section 14. Without
         limiting the generality of the foregoing, the Executive's right to
         receive payments hereunder shall not be assignable, transferable or
         delegable, whether by pledge, creation of a security interest or
         otherwise, or otherwise subject to anticipation, alienation, sale,
         encumbrance, charge, hypothecation, or set-off in respect of any
         claim, debt, or obligation, or to execution, attachment, levy or
         similar process, or assignment by operation of law, other than by a
         transfer by his will or by the laws of descent and distribution. Any
         attempt, voluntarily or involuntarily, to effect any action prohibited
         by this Paragraph shall be null, void, and of no effect.

         15.     Notices. Any notice, request, claim, demand, document and
other communication hereunder to any party shall be effective upon receipt (or
refusal of receipt) and shall be in writing and delivered personally or sent by
telex, telecopy, or certified or registered mail, postage prepaid, or other
similar means of communication, as follows:





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                 (a)      If to the Company, addressed to its principal
         executive offices to the attention of its Secretary;

                 (b)      If to the Executive, to him or her at the address set
         forth below under the Executive's signature; or at any such other
         address as either party shall have specified by notice in writing to
         the other.

         16.     Amendments; Waivers.  This Agreement may not be modified,
amended, or terminated except by an instrument in writing, signed by the
Executive and by a duly authorized representative of the Company. By an
instrument in writing similarly executed, either party may waive compliance by
the other party with any provision of this Agreement that such other party was
or is obligated to comply with or perform; provided, however, that such waiver
shall not operate as a waiver of, or estoppel with respect to, any other or
subsequent failure. No failure to exercise and no delay in exercising any
right, remedy, or power hereunder shall operate as a waiver thereof, nor shall
any single or partial exercise of any right, remedy, or power hereunder
preclude any other or further exercise thereof or the exercise of any other
right, remedy, or power provided herein or by law or in equity.

         17.     Entire Agreement. This Agreement sets forth the entire
agreement of the parties hereto in respect of the subject matter contained
herein and supersedes all prior agreements, promises, covenants, arrangements,
communications, representations or warranties, whether oral or written, by any
officer, employee or representative of any party hereto. The parties further
intend that this Agreement shall constitute the complete and exclusive
statement of its terms and that no extrinsic evidence whatsoever may be
introduced in any judicial, administrative, or other legal proceeding involving
this Agreement.

         18.     Severability; Enforcement. If any provision of this Agreement,
or the application thereof to any person, place, or circumstance shall be held
by a court of competent jurisdiction to be invalid, unenforceable or void, the
remainder of this Agreement and such provisions as applied to other persons,
places and circumstances shall remain in full force and effect.

         19.     Indemnification. The Company shall indemnify, defend, and hold
the Executive harmless from and against any liability, damages, costs, or
expenses (including attorney's fees) in connection with any claim, cause of
action, investigation, litigation, or proceeding involving him by reason of his
having been an officer, director, employee, or agent of the Company, unless it
is judicially determined, in a final, nonappealable order, that the Executive
was guilty of gross negligence or willful misconduct. The Company also agrees
to maintain adequate directors and officers liability insurance for the benefit
of Executive for the term of this Agreement and for at least three years
thereafter.

         20.     ERISA.  This Agreement is pursuant to the Company's Severance
Plan for Executives (the "Plan") which is unfunded and maintained by the
Company primarily for the purpose of providing deferred compensation for a
select group of management or highly compensated employees. The Plan
constitutes an employee welfare benefit plan ("Welfare Plan") within the
meaning of Section 3(1) of the Employee Retirement Income Security Act of 1974,
as amended ("ERISA"). Any payments pursuant to this Agreement which could cause
the Plan not to constitute a Welfare Plan shall be deemed instead to be made
pursuant to a separate "employee pension benefit plan" within the meaning of
Section 3(2) of ERISA as to which the applicable portions of the document
constituting the Plan shall be deemed to be incorporated by reference. None of
the benefits hereunder may be assigned in any way.





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         21.     Governing Law. This Agreement shall be interpreted,
administered and enforced in accordance with the law of the State of Arkansas,
except to the extent pre-empted by Federal law.

         The parties have duly executed this Agreement as of the date first
written above.




BEVERLY ENTERPRISES, INC.                          EXECUTIVE


By:
         David R. Banks                            FIELD (NAME1)
         Chairman and Chief Executive Officer      FIELD(ADDRESS)
                                                   FIELD(CITYSTZP)


By:
         Robert W. Pommerville
         Executive Vice President,
         General Counsel and Secretary

         5111 Rogers Avenue, Suite 40-A
         Fort Smith, AR 72919

         Attention:  Secretary

Form of Cash Benefit Payment Paragraph 4(a);

--       One lump sum payment
--       Equal monthly installment payments each in the amount of Executive's
         monthly Base Salary as of the date of termination of employment.



                                                   FIELD(NAME1)





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