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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
 MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 GIVUK0as9g4CMRehP0EcBGGPIvgTLOkQ7rlQuIbLiesoCDd7QC0JH0Dgo9aHXhE/
 mK5E3eYsORrHWnfAfTWd3Q==

<SEC-DOCUMENT>0001181431-04-024820.txt : 20040507
<SEC-HEADER>0001181431-04-024820.hdr.sgml : 20040507
<ACCEPTANCE-DATETIME>20040507143341
ACCESSION NUMBER:		0001181431-04-024820
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20040506
FILED AS OF DATE:		20040507

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			HAWKINS CARL P
		CENTRAL INDEX KEY:			0001188318

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-18217
		FILM NUMBER:		04788546

	BUSINESS ADDRESS:	
		STREET 1:		945 E PACES FERRY RD
		STREET 2:		STE 1475
		CITY:			ATLANTA
		STATE:			GA
		ZIP:			30326
		BUSINESS PHONE:		4043648000

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			TRANSCEND SERVICES INC
		CENTRAL INDEX KEY:			0000858452
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-MISC HEALTH & ALLIED SERVICES, NEC [8090]
		IRS NUMBER:				330378756
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	BUSINESS ADDRESS:	
		STREET 1:		945 EAST PACES FERRY ROAD
		STREET 2:		SUITE 1475
		CITY:			ATLANTA
		STATE:			GA
		ZIP:			30326
		BUSINESS PHONE:		4043648000

	MAIL ADDRESS:	
		STREET 1:		945 EAST PACES FERRY ROAD
		STREET 2:		SUITE 1475
		CITY:			ATLANTIC
		STATE:			GA
		ZIP:			30326

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	TRICARE INC
		DATE OF NAME CHANGE:	19920703
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>rrd41909.xml
<DESCRIPTION>FORM 4 5/6/04 HAWKINS
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2004-05-06</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <issuer>
        <issuerCik>0000858452</issuerCik>
        <issuerName>TRANSCEND SERVICES INC</issuerName>
        <issuerTradingSymbol>TRCR</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001188318</rptOwnerCik>
            <rptOwnerName>HAWKINS CARL P</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>945 EAST PACES FERRY ROAD</rptOwnerStreet1>
            <rptOwnerStreet2>SUITE 1475</rptOwnerStreet2>
            <rptOwnerCity>ATLANTA</rptOwnerCity>
            <rptOwnerState>GA</rptOwnerState>
            <rptOwnerZipCode>30326</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>1</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>0</isOther>
            <officerTitle>VP-Chief Information Officer</officerTitle>
        </reportingOwnerRelationship>
    </reportingOwner>

    <derivativeTable>
        <derivativeTransaction>
            <securityTitle>
                <value>Option to purchase Common Stock, par value $0.05</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>3.21</value>
            </conversionOrExercisePrice>
            <transactionDate>
                <value>2004-05-06</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>A</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>10000</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>3.21</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <exerciseDate>
                <value>2004-12-31</value>
                <footnoteId id="F1"/>
            </exerciseDate>
            <expirationDate>
                <value>2014-05-06</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock, par value $0.05</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>10000</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>111500</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </derivativeTransaction>
    </derivativeTable>

    <footnotes>
        <footnote id="F1">Total number of options granted 5/6/04, exercisable in increments of 25% on 12/31/04 and 75% on the third anniversary of the grant (05/06/07).</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>Carl P. Hawkins</signatureName>
        <signatureDate>2004-05-07</signatureDate>
    </ownerSignature>
</ownershipDocument>

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