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Proc-Type: 2001,MIC-CLEAR
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<SEC-DOCUMENT>0001010549-04-000484.txt : 20040803
<SEC-HEADER>0001010549-04-000484.hdr.sgml : 20040803
<ACCEPTANCE-DATETIME>20040803163725
ACCESSION NUMBER:		0001010549-04-000484
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20040802
ITEM INFORMATION:		Other events
ITEM INFORMATION:		Financial statements and exhibits
FILED AS OF DATE:		20040803

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			GREENBRIAR CORP
		CENTRAL INDEX KEY:			0000105744
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-SKILLED NURSING CARE FACILITIES [8051]
		IRS NUMBER:				752399477
		STATE OF INCORPORATION:			NV
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-08187
		FILM NUMBER:		04948904

	BUSINESS ADDRESS:	
		STREET 1:		14185 DALLAS PKWY
		STREET 2:		STE 650
		CITY:			DALLAS
		STATE:			TX
		ZIP:			75240
		BUSINESS PHONE:		9724078400

	MAIL ADDRESS:	
		STREET 1:		14185 DALLAS PKWY
		STREET 2:		STE 650
		CITY:			DALLAS
		STATE:			TX
		ZIP:			75204

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	MEDICAL RESOURCE COMPANIES OF AMERICA
		DATE OF NAME CHANGE:	19920703

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	WESPAC INVESTORS TRUST
		DATE OF NAME CHANGE:	19900605
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>green8k080204.txt
<TEXT>

                                    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): August 2, 2004



                             Greenbriar Corporation
             ------------------------------------------------------
             (Exact name of registrant as specified in its charter)






         Nevada                       0-8187                     75-2399477
- ------------------------       ---------------------         -------------------
(State of incorporation)       (Commission File No.)           (IRS Employer
                                                             Identification No.)






                 1755 Wittington, Suite 340, Dallas, Texas 75234
          ------------------------------------------------------------
          (Address of principal executive offices, including zip code)




                                 (972) 407-8400
              ----------------------------------------------------
              (Registrant's telephone number, including area code)




<PAGE>

Item 5.  Other Events and Required ID disclosures

         On January 8, 2004,  Greenbriar  Corporation  (the "Company")  issued a
press  release  announcing  that the Internal  Revenue  Service was  considering
assessing  penalties  against the Company  under  Section  6700 of the  Internal
Revenue Code.

         On August 2, 2004,  the Company  issued a press  release  announcing  a
settlement  of the above matter with the Internal  Revenue  Service  wherein the
Company  agreed  to pay  $216,000  as a penalty  pursuant  to  Section  6700 but
expressly denied that it engaged in any conduct that would be subject to penalty
under the tax law. A copy of this press  release is  attached  hereto as Exhibit
99.1 and is incorporated herein by reference.

         This information and Exhibit 99.1 hereto are being furnished, and shall
not be deemed to be  "filed",  with the SEC.  The  information  in this  current
Report on Form 8-K shall not be incorporated by reference into any filing of the
registrant  with  the SEC,  whether  made  before  or  after  the  date  hereof,
regardless of any general incorporation language in such filings.

Item 7.  Financial Exhibits, Pro Forma Financial Information and Exhibits.

         (c)      Press Release of Greenbriar Corporation dated August 2, 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 hereunto duly authorized.

Date:    August 3, 2004                 GREENBRIAR CORPORATION
                                        (Registrant)

                                        By: /s/  Gene S. Bertcher
                                           -------------------------------------
                                           Gene S. Bertcher
                                           President and Chief Executive Officer







<PAGE>

                                  EXHIBIT INDEX

Exhibit #

99.1                Press Release of Greenbriar Corporation dated August 2, 2004





</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>green8kex991080204.txt
<DESCRIPTION>PRESS RELEASE DATED AUGUST 2, 2004.
<TEXT>

Exhibit 99.1


                         GREENBRIAR CORPORATION SETTLES
                      INTERNAL REVENUE SERVICE EXAMINATION


FOR IMMEDIATE RELEASE
                                                         Contact: Gene Bertcher
                                                         Oscar Smith
                                                         Phone:   (972) 407-8400

Dallas,  Texas,  (Business  Wire) August 2,  2004...announced  today that it has
entered  into an  agreement  with the  Internal  Revenue  Service (the "IRS") to
resolve an examination arising out of the issuance,  defeasance, and remarketing
of certain tax-exempt bonds.

         As  previously  announced,  the IRS indicated  that it was  considering
assessing a penalty  against  the Company  under  section  6700 of the  Internal
Revenue Code because of the Company's participation in these transactions.

         In participating in the transactions,  which occurred  approximately 12
years ago, the Company relied on advice rendered by the investment  banking firm
of J.C.  Bradford  & Co.,  which is now an  affiliate  of UBS  PaineWebber,  and
certain  nationally-recognized  law  firms.  The  individual  who  directed  the
Company's  participation  in the  transactions  no  longer  is  employed  by the
Company.

         Pursuant to the agreement, the Company remitted $216,000 to the IRS. As
specified in the  agreement,  the Company  agreed to treat the  remittance  as a
penalty pursuant to section 6700. However,  the Company expressly denied that it
engaged in any  conduct  that  would be  subject  to penalty  under the tax law.
Consequently,  it entered into the agreement  solely for the purpose of avoiding
the expense and burden of further proceedings.

         Pursuant to a 2002 agreement  between the IRS and UBS PaineWebber,  the
IRS agreed not to dispute or otherwise  challenge the  tax-exempt  status of the
bonds.

         The bonds in question were:

         -        the  Development  Authority of Colquitt  County  Revenue Bonds
(Southern Care Corporation Facility) Series 1991A and C;

         -        the  Development  Authority of Richmond  County  Revenue Bonds
(Southern Care Corporation Facility) Series 1991A and C;


         -        the Savannah  Economic  Development  Authority  Revenue  Bonds
(Southern Care Corporation Facility) Series 1991A and C; and


         -        the Washington  Wilkes Payroll  Development  Authority Revenue
Bonds (Southern Care Corporation Facility) Series 1991A and C (collectively, the
"Bonds").

                                      # # #




</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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