GOLDMAN SACHS GROUP LP
SC 13G, 1997-05-12
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<PAGE>
 
                      SECURITIES AND EXCHANGE COMMISSION
                            WASHINGTON, D.C. 20549
 
 
                                 SCHEDULE 13G
                   Under the Securities Exchange Act of 1934
 
 
 
 
                                 Advocat Inc.
                   ----------------------------------------
                               (Name of Issuer)
 
 
 
                         Common Stock, $.01 par value
                   ----------------------------------------
                        (Title of Class of Securities)
 
 
 
 
                                   007586100
                             --------------------
                                (CUSIP Number)
 
 
 


                              Page 1 of 10 Pages
<PAGE>
 
- ------------------ 
CUSIP NO.
007586100
- ------------------ 
- ------------------------------------------------------------------------------
1.       Name of Reporting Person
          S.S. or I.R.S. Identification No. of Above Person
 
          Goldman, Sachs & Co.

- ------------------------------------------------------------------------------
2.       Check the Appropriate Box if a Member of a Group
 
                                                         (a)____
                                                         (b)____
 
- ------------------------------------------------------------------------------ 
3.       SEC Use Only
 
- ------------------------------------------------------------------------------
4.       Citizenship or place of Organization
 
               New York
- ------------------------------------------------------------------------------
Number of                    5.   Sole Voting Power
Shares
Beneficially                         0
Owned By                   ---------------------------------------------------
Each                         6.   Shared Voting Power
Reporting                      
Person With                          387,900
                           ---------------------------------------------------
                             7.   Sole Dispositive Power
 
                                     0
                           ---------------------------------------------------
                             8.   Shared Dispositive Power
 
                                     387,900
                           ---------------------------------------------------
9.       Aggregate Amount Beneficially Owned by Each Reporting Person
 
               544,200
- ------------------------------------------------------------------------------
10.      Check if the Aggregate Amount in Row (9) Excludes Certain Shares

 
- ------------------------------------------------------------------------------
11.      Percent of Class Represented by Amount in Row (9)
 
               10.2%
- ------------------------------------------------------------------------------
12.      Type of Reporting Person
 
               BD-PN-IA
- ------------------------------------------------------------------------------
 
 
                              Page 2 of 10 Pages
<PAGE>
 
- --------------
CUSIP NO.
007586100
- --------------
- ------------------------------------------------------------------------------
1.       Name of Reporting Person
         S.S. or I.R.S. Identification No. of Above Person
 
         The Goldman Sachs Group, L.P.
- ------------------------------------------------------------------------------
2.       Check the Appropriate Box if a Member of a Group
 
                                                        (a)___ 
                                                        (b)___
 
- ------------------------------------------------------------------------------ 
3.       SEC Use Only
 
- ------------------------------------------------------------------------------
4.       Citizenship or place of Organization
 
               Delaware
- ------------------------------------------------------------------------------
Number of                    5.       Sole Voting Power
Shares
Beneficially                              0
Owned By                   ---------------------------------------------------
Each                         6.       Shared Voting Power
Reporting
Person With                               387,900
                           ---------------------------------------------------
                             7.       Sole Dispositive Power
 
                                          0
                           ---------------------------------------------------
                             8.       Shared Dispositive Power
 
                                          387,900
                           ---------------------------------------------------
9.       Aggregate Amount Beneficially Owned by Each Reporting Person
 
               544,200
- ------------------------------------------------------------------------------
10.      Check if the Aggregate Amount in Row (9) Excludes Certain Shares
 
- ------------------------------------------------------------------------------
 
11.      Percent of Class Represented by Amount in Row (9)
 
               10.2%
- ------------------------------------------------------------------------------
12.      Type of Reporting Person
 
                HC-PN
- ------------------------------------------------------------------------------


                              Page 3 of 10 Pages
<PAGE>
 
Item 1(a).   Name of Issuer:
             Advocat Inc.
             
Item 1(b).   Address of Issuers Principal Executive Offices:
             277 Mallory Station Road, Suite 130
             Franklin, TN  37067
             
Item 2(a).   Name of Persons Filing:
             Goldman, Sachs & Co. and The Goldman Sachs Group, L.P.
             
Item 2(b).   Address of Principal Business Office or, if None, Residence:
             85 Broad Street
             New York, NY  10004
             
Item 2(c).   Citizenship:
             Goldman, Sachs & Co. - New York
             The Goldman Sachs Group, L.P. - Delaware
             
Item 2(d).   Title and Class of Securities:
             Common Stock, $.01 par value
             
Item 2(e).   CUSIP Number:
             007586100
             
Item 3.      If this statement is filed pursuant to Rules 13d-1(b), or
             13d-2(b), check  whether the person filing is a :
 
      (a).X  Broker or dealer registered under Section 15 of the Act,
                    Goldman, Sachs & Co.
             
      (b).   Bank as defined in Section 3(a)(6) of the Act,
             
      (c).   Insurance Company as defined in Section 3(a)(19) of the Act,
             
      (d).   Investment Company registered under Section 8 of
             the Investment
             Company Act,
             
      (e).X  Investment Adviser registered under Section 203
             of the Investment Advisers Act of 1940,
                    Goldman, Sachs & Co.
             
      (f).   Employee Benefit Plan, Pension Fund which is
             subject to the provisions of the Employee
             Retirement Income Security Act of 1974 or
             Endowment Fund; see 13d-1(b)(1)(ii)(F),


                              Page 4 of 10 Pages
<PAGE>
 
      (g).X  Parent Holding Company, in accordance with Rule
             13d-1(b)(ii)(G); see  Item 7,
                    The Goldman Sachs Group, L.P.
             
      (h).   Group, in accordance with Rule 13d-1(b)(ii)(H).
             
             
Item 4.      Ownership
                 
      (a).   Amount beneficially owned:
             See the response(s) to Item 9 on the attached cover page(s).
             
      (b).   Percent of Class:
             See the response(s) to Item 11 on the attached cover page(s).
             
      (c).   Number of shares as to which such person has:
             
             (i).   Sole power to vote or to direct the vote:
                         See the response(s) to Item 5 on the attached cover
                         page(s).
             
             (ii).  Shared power to vote or to direct the vote:
                         See the response(s) to Item 6 on the attached
                         cover page(s).
             
             (iii). Sole power to dispose or to direct the disposition of:
                         See the response(s) to Item 7 on the attached
                         cover page(s).
             
             (iv).  Shared power to dispose or to direct the disposition of:
                         See the response(s) to Item 8 on the attached
                         cover page(s).
                 
Item 5.      Ownership of Five Percent or Less of a Class.
                    Not Applicable
             
Item 6.      Ownership of More than Five Percent on Behalf of Another Person.
                    Not Applicable
             
Item 7.      Identification and Classification of the Subsidiary Which Acquired
             the Security Being Reported on by the Parent Holding Company.
                    See Exhibit (99.2)
             
Item 8.      Identification and Classification of Members of the Group.
                    Not Applicable


                              Page 5 of 10 Pages
             
<PAGE>
 
Item 9.      Notice of Dissolution of Group.
                    Not Applicable
             
Item 10.     Certification.
             
             By signing below I certify that, to the best of
             my knowledge and belief, the securities referred
             to above were acquired in the ordinary course of
             business and were not acquired for the purpose
             of and do not have the effect of changing or
             influencing the control of the issuer of such
             securities and were not acquired in connection
             with or as a participant in any transaction
             having such purpose or effect.
 
 
                              Page 6 of 10 Pages 
<PAGE>
 
                                   SIGNATURE
 
After reasonable inquiry and to the best of my knowledge and belief, I certify
that the information set forth in this statement is true, complete and correct.
 
 
Date:  May 10, 1997
 
 
                                    THE GOLDMAN SACHS GROUP, L.P.
                                    By: The Goldman Sachs Corporation,
                                        its general partner
 
 
                                    By: /s/ David B. Ford
                                        -------------------------------
                                    Name:  David B. Ford
                                    Title:  Executive Vice President
 
 
 
                                    GOLDMAN, SACHS & CO.
 
 
                                    By: /s/ David B. Ford
                                        -------------------------------
                                    Name:  David B. Ford
                                    Title:  Managing Director
 
 
 
                              Page 7 of 10 Pages
<PAGE>
 
                               INDEX TO EXHIBITS
 
 
 
 
Exhibit No.       Exhibit
- -----------       -------           

   99.1           Joint Filing Agreement, dated May 10, 1997 between
                  The Goldman Sachs Group, L.P. and Goldman, Sachs & Co.
 
   99.2           Item 7 Information
 
 
                              Page 8 of 10 Pages
<PAGE>
 
                                                                  EXHIBIT (99.1)
 
 
 
                            JOINT FILING AGREEMENT
 
 
 
        In accordance with Rule 13d-1(f) promulgated under the Securities
Exchange Act of 1934, the undersigned agree to the joint filing of a Statement
on Schedule 13G (including any and all amendments thereto) with respect to the
shares of common stock, $.01 par value of Advocat Inc., and further agree to the
filing of this agreement as an Exhibit thereto. In addition, each party to this
Agreement expressly authorizes each other party to this Agreement to file on its
behalf any and all amendments to such Statement on Schedule 13G.

 
Date:  May 10, 1997
 
 
                                         THE GOLDMAN SACHS GROUP, L.P.
                                         By: The Goldman Sachs Corporation,
                                             its general partner
 
 
                                         By: /s/ David B. Ford
                                             -------------------------------
                                         Name:  David B. Ford
                                         Title:  Executive Vice President
 
 
 
                                         GOLDMAN, SACHS & CO.
 
 
                                         By: /s/ David B. Ford
                                             -------------------------------
                                         Name:  David B. Ford
                                         Title:  Managing Director
 
 
                              Page 9 of 10 Pages
<PAGE>
 
                                                                  EXHIBIT (99.2)
 
 
 
                              ITEM 7 INFORMATION
 
 
        Goldman, Sachs & Co. is a broker or dealer registered under Section 15
of the Act and an investment adviser registered under Section 203 of the
Investment Advisers Act of 1940.


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