8-K

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D. C. 20549


                                    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)............January 19, 2005



                             HEALTHCARE SERVICES GROUP, INC.
                             -------------------------------
             (Exact name of registrant as specified in its charter)



        Pennsylvania                          0-120152              23-2018365
        ------------                          --------              ----------
(State or other jurisdiction of            (Commission            (IRS Employer
 Incorporation or organization)            File Number)           Identification
                                                                      number)


           3220 Tillman Drive-Suite 300, Bensalem, Pennsylvania 19020
           ----------------------------------------------------------
               (Address of principal executive offices) (Zip code)



Registrant's telephone number, including area code: 215-639-4274
                                                    --------------------












Item 8.01         Other Events.


On January 19, 2005, the Company issued a press release announcing the
declaration of its fourth quarter 2004 cash dividend. Such dividend is to be
$.09 per common share. Additionally, it will be paid on February 11, 2005 to
shareholders of record at the close of business January 28, 2005. A copy of the
press release is attached hereto as Exhibit (99) and hereby incorporated by
reference.

The information in this Current Report is being furnished pursuant to Item 8,
"Other Events" and shall not be deemed "filed" for the purposes of Section 18 of
the Securities and Exchange Act of 1934, as amended, or otherwise subject to the
liabilities of that Section. The information in this Current Report shall not be
incorporated by reference into any registration statement or other document
filed pursuant to the Securities Act of 1933, as amended.



                                   SIGNATURES



         Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant had duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.

                                          HEALTHCARE SERVICES GROUP, INC.

January 19, 2005                          /s/ Richard W. Hudson
- -------------------------                     ----------------------------------
Date                                          Richard W. Hudson, Secretary and
                                                    Vice President- Finance

EX-99

[LOGO OMITTED]

                         HEALTHCARE SERVICES GROUP, INC.

                     ANNOUNCES FOURTH QUARTER 2004 DIVIDEND


Bensalem, PA - January 19, 2005- Healthcare Services Group, Inc. (NASDAQ-HCSG)

         Our Board of Directors has declared a fourth quarter 2004 dividend of
$.09 per common share, payable on February 11, 2005 to shareholders of record at
the close of business January 28, 2005. This dividend represents a 13% increase
over the dividend declared for the third quarter and is the seventh consecutive
quarterly dividend payment, as well as the sixth consecutive increase since we
have initiated a quarterly dividend payment in 2003.

         The Company has a Dividend Reinvestment Plan available for shareholders
to apply their dividends to the purchase of the Company's common stock.

         The Company intends to release its results for the three months
(unaudited) and year ended (audited) December 31, 2004 during the week of
February 21, 2005.

         The Company announced that it will make a presentation on February 14,
2005 at 8:30 AM regarding the Company at the "UBS Warburg Global Healthcare
Services Conference" in New York City. Additionally, this presentation is being
audio webcast at www.ibb.ubs.com.

FORWARD LOOKING STATEMENTS/RISK FACTORS
Certain matters discussed may include forward-looking statements that are
subject to risks and uncertainties that could cause actual results or objectives
to differ materially from those projected. The Company undertakes no obligation
to publicly update or revise any forward-looking statements, whether as a result
of new information, future events or otherwise. Such risks and uncertainties
include, but are not limited to, risks arising from the Company providing its
services exclusively to the health care industry, primarily providers of
long-term care; credit and collection risks associated with this industry; one

                                                                             
                                                                                [GRAPHIC OMITTED]

Corporate Office: 3220 Tillman Drive o Glenview Corporate Center o Suite 300 o Bensalem, PA 19020
                  (215) 699-4274 o (800) 523-2248 o Fax: (215) 639-2152 o http://www.hcsgcorp.com








Dividend Announcement Release                                        Page 2 of 3
January 19, 2005


client accounting for approximately 20% of revenues in 2004; our claims'
experience related to workers' compensation and general liability insurance; the
effects of changes in laws and regulations governing the industry and risk
factors described in our most recent Form 10-K filed with the Securities and
Exchange Commission for the year ended December 31, 2003 in Part I thereof under
"Government Regulation of Clients", "Competition" and "Service
Agreements/Collections". Many of our clients' revenues are highly reliant on
Medicare and Medicaid reimbursement funding rates, which have been and continue
to be adversely affected by the change in Medicare payments under the 1997
enactment of the Prospective Payment System. That change, and lack of
substantive reimbursement funding rate reform legislation, as well as other
trends in the long-term care industry have resulted in certain of our clients
filing for bankruptcy protection. Others may follow. Any decisions by the
government to discontinue or adversely modify legislation related to
reimbursement funding rates will have a material adverse affect on our clients.
These factors, in addition to delays in payments from clients, have resulted in
and could continue to result in significant additional bad debts in the near
future. Additionally, our operating results would also be adversely affected if
unexpected increases in costs of labor and labor related costs, materials,
supplies and equipment used in performing our services could not be passed on to
our clients.

         In addition, we believe that to further improve our future financial
performance we must continue to obtain service agreements with new clients,
provide new services to existing clients, achieve modest price increases on
current service agreements with existing clients and maintain internal cost
reduction strategies at our various operational levels. Furthermore, we believe
that our ability to sustain the internal development of managerial personnel






Dividend Announcement Release                                       Page 3 of 3
January 19, 2005


is an important factor impacting future operating results and successfully
executing projected growth strategies.

         Healthcare Services Group, Inc. is the largest national provider of
professional housekeeping, laundry and food services to long-term care and
related facilities.


Company  Contacts:
Daniel P. McCartney                        Thomas Cook
Chairman and Chief Executive Officer       President and Chief Operating Officer
215-639-4274                               215-639-4274