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

                                    FORM 10-Q



(Mark one)

(X)      QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) oF THE
                                      SECURITIES EXCHANGE ACT OF 1934

         For the quarterly period ended       March 31, 1997
                                       OR
( )      TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                                     SECURITIES EXCHANGE ACT OF 1934

         For the transition period from_______ to ______
                         Commission file number 0-13415




                CONSOLIDATED RESOURCES HEALTH CARE FUND II
             (Exact name of registrant as specified in its charter)



                  Georgia                              58-1542125
        (State or other jurisdiction                (I.R.S. Employer
         of incorporation or organization)         (identification No.)



      400 Perimeter Center Terrace, Suite 650, Atlanta, Georgia 30346
       (Address of principal executive offices)                (Zip Code)



Registrant's telephone number, including area code   770-698-9040



Indicate  by check  mark  whether  the  registrant,  (1) has filed all  reports
required  to be filed by Section 13 or 15(d) of the  Securities  Exchange Act
of 1934 during the preceding 12 months,  and (2) has been subject to such filing
requirements for the past 90 days.  Yes    x      No















                             THERE ARE NO EXHIBITS.
                              PAGE ONE OF 11 PAGES.


<PAGE>
                         PART I. FINANCIAL INFORMATION
                   CONSOLIDATED RESOURCES HEALTH CARE FUND II
                          CONSOLIDATED BALANCE SHEETS
                                  (Unaudited)
                                                March 31,    December 31,
                                                  1997          1996


ASSETS
Current assets:
  Cash and cash equivalents                  $    867,886  $  1,339,758
  Accounts receivable, net of
    allowance for doubtful accounts
    of $53,554                                    399,759       343,421
  Prepaid expenses and other                       27,076        40,184
    Total current assets                        1,294,721     1,723,363

Property and equipment
  Land                                            178,609       178,609
  Buildings and improvements                    6,531,661     6,333,497
  Equipment and furnishings                       695,802       666,806
                                                7,406,072     7,178,912
  Accumulated depreciation
     and amortization                          (3,839,799)   (3,738,651)
    Net property and equipment                  3,566,273     3,440,261

Other
  Restricted escrows and other deposits           312,393       315,012
  Deferred loan costs, net of
    accumulated amortization
    of $11,739 and $11,480                         20,571        20,831
     Total other assets                           332,964       335,843

                                             $  5,193,958  $  5,499,467


LIABILITIES AND PARTNERS' EQUITY(DEFICIT)
Current liabilities:
  Current maturities of long-term debt       $     74,514  $     67,222
  Accounts payable                                191,849       197,950
  Accrued expenses                                274,527       373,500
  Accrued management fees                         317,747       254,518
  Other liabilities                               138,972       179,130
    Total current liabilities                     997,609     1,072,320

Long-term obligations,
  less current maturities                       4,188,592     4,205,585
    Total liabilities                           5,186,201     5,277,905

Partners' equity (deficit ):
    Limited partners                              199,014       412,271
    General partners                             (191,257)     (190,709)
     Total partners' deficit                        7,757       221,562

                                             $  5,193,958  $  5,499,467


          See accompanying notes to consolidated financial statements.


                   CONSOLIDATED RESOURCES HEALTH CARE FUND II
                     CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (Unaudited)




                                           Three months ended
                                               March 31,
                                            1997        1996


Revenue:
  Operating revenues                    $1,728,212  $1,625,357
  Interest income                            9,604       3,806
    Total revenue                        1,737,816   1,629,163

Expenses:
  Operating expenses                     1,557,297   1,440,033
  Depreciation & amortization               98,211      94,372
  Interest                                  80,146      81,159
  Partnership adminstration
     costs                                  15,867       7,796
    Total expenses                       1,751,521   1,623,360

Operating Income (Loss)                    (13,705)      5,803

 
Net income (loss)                       $  (13,705) $    5,803

Operating income (loss) per L.P. unit        (0.88)       0.37

Net income (loss) per L.P. unit         $    (0.88) $     0.37

L.P. units outstanding                      15,000      15,000




          See accompanying notes to consolidated financial statements.




                   CONSOLIDATED RESOURCES HEALTH CARE FUND II
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)


                                                 Three months ended March

                                                    1997         1996


Operating Activities:
  Cash received from residents and
  government agencies                          $ 1,671,874  $ 1,624,253
  Cash paid to suppliers and employees          (1,606,125)  (1,532,588)
  Interest received                                  9,604        3,806
  Interest paid                                    (80,146)     (81,159)
  Property taxes paid                              (30,119)           -
  Cash provided by (used in)
    operating activities                           (34,912)      14,312

Investing Activities:
  Additions to property and equipment             (227,160)     (18,453)

Financing Activities:
  Principal payments on long-term debt              (9,701)     (12,316)
  Distributions                                   (200,100)    (150,000)
  Cash used in financing activities               (209,801)    (162,316)

Net (decrease) in cash
     and cash equivalents                         (471,873)    (166,457)

Cash and cash equivalents, beginning of period   1,339,758    1,115,300

Cash and cash equivalents, end of period       $   867,886  $   948,843





          See accompanying notes to consolidated financial statements.


                   CONSOLIDATED RESOURCES HEALTH CARE FUND II
                     CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)

                                                 Three months ended March
                                                     1997         1996


Reconciliation of Net Income (Loss) to cash
Provided by Operating Activities:
  Net income (loss)                            $   (13,705) $     5,803
  Adjustments to reconcile net income
    to cash provided by (used in)
    operating activities:
        Depreciation and amortization               98,211       94,372
        Gain on settlement of advances                   -            -
          Changes in assets and liabilities:
          Accounts receivable                      (56,338)      (1,104)
          Restricted excrows                         2,619      (43,689)
          Other current assets                      13,108      (55,403)
          Accounts payable and
              accrued liabilities                  (78,807)      14,333

  Cash provided by (used in) operating
     activities                                $   (34,912) $    14,312



          See accompanying notes to consolidated financial statements.



                        CONSOLIDATED RESOURCES HEALTH CARE FUND II
                       CONSOLIDATED STATEMENTS OF PARTNERS' DEFICIT
                                   (Unaudited)


                                                                  Total
                                                                  Partners'
                                    Limited         General       Deficit


Balance, at December 31, 1995   $    294,707  $   (201,857) $     92,850

Net income                             5,570           232         5,803

Distribution                        (150,000)            -      (150,000)

Balance, at March 31, 1996      $    150,277  $   (201,625) $    (51,347)


Balance, at December 31, 1996   $    412,271  $   (190,709) $    221,562

Net loss                             (13,157)         (548)      (13,705)

Distribution                        (200,100)            -      (200,100)

Balance, at March 31, 1997      $    199,014  $   (191,257) $      7,757









See accompanying notes to consolidated financial statements.








                                                                                

<PAGE>








                   CONSOLIDATED RESOURCES HEALTH CARE FUND II
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                                 March 31, 1997

NOTE 1.

The financial  statements are unaudited and reflect all adjustments  (consisting
only of normal recurring  adjustments)  which are, in the opinion of management,
necessary for a fair  presentation of the Partnership's  financial  position and
operating  results for the interim  periods.  The results of operations  for the
three months ended March 31, 1997, are not necessarily indicative of the results
to be expected for the year ending December 31, 1997.

NOTE 2.

The  consolidated  financial  statements  should be read in conjunction with the
consolidated  financial  statements  and  the  notes  thereto  contained  in the
Partnership's  Annual Report on Form 10-K for the year ended  December 31, 1996,
as  filed  with  the  Securities  and  Exchange  Commission,  a copy of which is
available  upon  request  by  writing to  WelCare  Service  Corporation-II  (the
"Managing  General  Partner"),  at 400  Perimeter  Center  Terrace,  Suite  650,
Atlanta, Georgia 30346.

NOTE 3.

A  summary  of  compensation   paid  to  or  accrued  for  the  benefit  of  the
Partnership's  general partners and their affiliates and amounts  reimbursed for
costs incurred by these parties on the behalf of the Partnership are as follows:

                                                             Three Months Ended
                                                                   March 31,
                                                               1997        1996
Charged to costs and expenses:
  Property management and oversight
     management fees..................................        $6,795     $32,028
  Financial accounting, data processing,
     tax reporting, legal and compliance,
     investor relations and supervision
     of outside services..............................        $15,867     $7,796



<PAGE>



ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
         OF OPERATIONS

Certain statements contained in this Management  Discussion and Analysis are not
based on historical  facts,  but are  forward-looking  statements that are based
upon numerous  assumptions  about future conditions that may ultimately prove to
be inaccurate.  Actual events and results may materially differ from anticipated
results described in such statements.  The Partnership's ability to achieve such
results  is  subject  to  certain  risks  and  uncertainties.   Such  risks  and
uncertainties   include,   but  are  not  limited  to,   changes  in  healthcare
reimbursement systems and rates, the availability of capital and financing,  and
other  factors  affecting  the  Partnership's  business  that may be beyond  its
control.

At March 31, 1997,  the  Partnership  had three  general  partners (the "General
Partners"), Consolidated Associates II, ("CA-II") WelCare Consolidated Resources
Corporation of America, serving as the corporate general partner ("WCRCA" or the
"Corporate  General  Partner") and WelCare  Service  Corporation-II  as managing
general partner ("WSC-II" or the "Managing General Partner").


Results of Operations

Revenues:

Operating revenue showed an increase of $102,855 for the quarter ended March 31,
1997, compared to the same period for the prior year. This increase is primarily
due to  changes in census  mix from  Medicaid  to higher  rate  private  pay and
Medicare residents,  in the Partnership's nursing which was offset by a decrease
in the revenues  from the  retirement  center due to lower  occupancy  levels as
compared to the same period in the prior year.

Expenses:

Operating  expenses  showed an increase of $133,131 for the quarter  ended March
31, 1997,  as compared to the same period for the prior year.  This  increase is
primarily due to increased  nursing and therapy costs due to increased  Medicare
census at the Partnership's nursing facility.

Liquidity and Capital Resources:

At March 31, 1997, the Partnership  held cash and cash equivalents of $867,886 a
decrease of $471,872  from  December  31,  1996.  This  reduction in cash is due
primarily to the  distribution  of $200,100 to the Limited  Partners in February
1997.  The current cash  balance  will be  necessary  to meet the  Partnership's
current  obligations  and for  operating  reserves.  In addition,  cash balances
maintained  at the two  Partnership  facilities  will have to be  maintained  in
accordance with operating reserves established by HUD.

The Partnership's two remaining  facilities produced sufficient revenues to meet
their operating and debt service  obligations as well as provide additional cash
flow to supplement cash reserves.  These  facilities  should continue to produce
positive cash flow in 1997.

As of March 31, 1997, the  Partnership  was not obligated to perform any major
capital expenditures or renovations other than its current project at the
retirement center. For the quarter ended March 31, 1997, the Partnership's
capital expenditures related primarily to its renovation of the retirement
center.  The Managing General Partner anticipates that any repairs,
maintenance, or capital expenditures will be financed with cash reserves,
HUD replacement reserves and cash flow from operations.

On  February  15, 1997,  the  Partnership  distributed  $200,100  to the Limited
Partners. The Managing General Partner anticipates the annual distributions from
operating cash flow will continue in future periods.  However, the Partnership's
ability to make  distributions may be limited by HUD's  requirements for surplus
cash at the facility level.

Significant   changes  have  and  will   continue  to  be  made  in   government
reimbursement  programs, and such changes could have a material impact on future
reimbursement  formulas.  Based on information  currently available,  Management
does not  believe  proposed  legislation  will  have an  adverse  effect  on the
Partnership's  operations.  However,  as  health  care  reform is  ongoing,  the
long-term effects of such changes cannot be accurately  predicted at the present
time.

The  Partnership  should  produce  sufficient  cash  flow  to meet  its  ongoing
obligations   associated  with  the  two  facilities   currently  owned  by  the
Partnership.  In  addition,  the  Partnership's  cash  reserves  are  considered
adequate to meet contingent  liabilities  related to third party  reimbursements
from  the  operation  of  the  Colorado  facilities   previously  owned  by  the
Partnership.  During  1997,  the  Partnership  has not  received any demands for
payment  of any actual or  contingent  liabilities  related to these  previously
owned  facilities.  The Partnership has no existing lines of credit or assurance
of financial support from the General Partners should the need arise.





<PAGE>


Part II - OTHER INFORMATION

ITEM 6.  Exhibits and Reports on Form 8-K

(a)             Exhibits

                    None

(b)             Reports on Form 8-K

                    None




<PAGE>



                                   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, thereunto duly authorized.

                   CONSOLIDATED RESOURCES HEALTH CARE FUND II

                                       By:   WELCARE SERVICE CORPORATION - II
                                             Managing General Partner



Date: May 20, 1997                       By:  /s/J. Stephen Eaton
------------------                            -------------------
                                                 J. Stephen Eaton,
                                                 President



Date: May 20, 1997                       By:  /s/Alan C. Dahl
------------------                            ---------------
                                                 Alan C. Dahl,
                                                 Vice President and Principal
                                                 Financial Officer