<PAGE>

                                  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 June 30, 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

<PAGE>

                         PART I. FINANCIAL INFORMATION
                   CONSOLIDATED RESOURCES HEALTH CARE FUND II
                          CONSOLIDATED BALANCE SHEETS
                                  (Unaudited)

                                              June 30,         December 31,
                                                1997               1996
                                         -----------------  ------------------


ASSETS
Current assets:
  Cash and cash equivalents              $      1,011,577   $       1,339,758
  Accounts receivable, net of
    allowance for doubtful accounts
    of $43,226                                    386,273             343,421
  Prepaid expenses and other                       27,102              40,184
                                         -----------------  ------------------
    Total current assets                        1,424,952           1,723,363
                                         -----------------  ------------------

Property and equipment
  Land                                            178,609             178,609
  Buildings and improvements                    6,621,285           6,333,497
  Equipment and furnishings                       751,623             666,806
                                         -----------------  ------------------

                                                7,551,517           7,178,912
                                         -----------------  ------------------
  Accumulated depreciation
     and amortization                          (3,945,730)         (3,738,651)
                                         -----------------  ------------------
    Net property and equipment                  3,605,787           3,440,261
                                         -----------------  ------------------

Other
  Restricted escrows and other deposits           349,320             315,012
  Deferred loan costs, net of
    accumulated amortization
    of $11,998 and $11,480                         20,312              20,831
                                         -----------------  ------------------
     Total other assets                           369,632             335,843
                                         -----------------  ------------------

                                         $      5,400,371   $       5,499,467
                                         =================  ==================


LIABILITIES AND PARTNERS' EQUITY
Current liabilities:
  Current maturities of long-term debt   $         74,514   $          67,222
  Accounts payable                                172,718             197,950
  Accrued expenses                                419,800             373,500
  Accrued management fees                         329,340             254,518
  Other liabilities                               168,373             179,130
                                         -----------------  ------------------

    Total current liabilities                   1,164,745           1,072,320
                                         -----------------  ------------------

Long-term obligations,
  less current maturities                       4,169,884           4,205,585
                                         -----------------  ------------------
    Total liabilities                           5,334,629           5,277,905
                                         -----------------  ------------------

Partners' equity (deficit):
    Limited partners                              254,680             412,271
    General partners                             (188,938)           (190,709)
                                         -----------------  ------------------
     Total partners' equity                        65,742             221,562
                                         -----------------  ------------------

                                         $      5,400,371   $       5,499,467
                                         =================  ==================


          See accompanying notes to consolidated financial statements.

<PAGE>
                   CONSOLIDATED RESOURCES HEALTH CARE FUND II
                     CONSOLIDATED STATEMENTS OF OPERATIONS
                                  (Unaudited)
<TABLE>
<CAPTION>




                                         Three Months Ended                  Six Months Ended
                                              June 30,                           June 30,
                                        1997              1996             1997              1996
                                  ----------------  ----------------   --------------  ----------------

<S>                               <C>              <C>              <C>               <C>
Revenue:
  Operating revenues             $     1,925,960   $     1,763,623  $     3,654,172   $     3,388,980
  Interest income                          8,834             5,599           18,438             9,405
                                 ----------------  ----------------   --------------  ----------------
    Total revenue                      1,934,794         1,769,222        3,672,610         3,398,385
                                 ----------------  ----------------   --------------  ----------------

Expenses:
  Operating expenses                   1,677,440         1,595,514        3,234,737         3,043,343
  Depreciation & amortization            106,190           101,891          204,401           196,263
  Interest                                80,131            80,890          160,277           162,049
  Partnership adminstration
     costs                                13,048             7,796           28,915             7,796
                                 ----------------  ----------------   --------------  ----------------
    Total expenses                     1,876,809         1,786,091        3,628,330         3,409,451
                                 ----------------  ----------------   --------------  ----------------



Net income (loss)                $        57,985   $       (16,869) $        44,280   $       (11,066)
                                 ================  ================ ================  ================


Net income (loss) per L.P. unit  $          3.71   $         (1.08) $          2.83   $         (0.71)
                                 ================  ================ ================  ================

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

</TABLE>


          See accompanying notes to consolidated financial statements.

<PAGE>

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


                                                  Six months ended June 30,

                                                    1997              1996
                                               ---------------  ----------------


Operating Activities:
  Cash received from residents and
  government agencies                          $    3,611,320   $     3,667,014
  Cash paid to suppliers and employees             (3,166,430)       (3,219,167)
  Interest received                                    18,438             9,406
  Interest paid                                      (160,277)         (169,687)
  Property taxes paid                                 (30,119)                -
                                               ---------------  ----------------
  Cash provided by (used in)
    operating activities                              272,932           287,566
                                               ---------------  ----------------

Investing Activities:
  Additions to property and equipment                (372,605)          (93,207)
                                               ---------------  ----------------

Financing Activities:
  Principal payments on long-term debt                (28,409)          (26,783)
  Distributions                                      (200,100)         (150,000)
                                               ---------------  ----------------
  Cash used in financing activities                  (228,509)         (176,783)
                                               ---------------  ----------------

Net (decrease) in cash
     and cash equivalents                            (328,182)           17,576

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

Cash and cash equivalents, end of period       $    1,011,577   $     1,132,876
                                               ===============  ================





                See accompanying notes to financial statements.

<PAGE>

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


                                                  Six months ended June 30,
                                                   1997              1996
                                              ---------------    --------------


Reconciliation of Net Income (Loss) to cash
Provided by Operating Activities:
  Net income (loss)                         $       44,280   $       (11,066)
  Adjustments to reconcile net income
    to cash provided by (used in)
    operating activities:
        Depreciation and amortization              204,401           196,26
        Changes in assets and liabilities:
          Accounts receivable                      (42,852)          278,034
          Restricted escrows                       (34,308)          (17,083)
          Other current assets                      13,082          (116,777)
          Accounts payable and
              accrued liabilities                   88,329           (34,167)
                                            ---------------    --------------

  Cash provided by (used in) operating
     activities                             $      272,932   $       295,204
                                            ===============  ================


                See accompanying notes to financial statements.

<PAGE>


                   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 loss                                (10,624)           (443)        (11,066)

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

Balance, at June 30, 1996         $     134,083   $    (202,300)  $     (68,216)
                                  ==============  ==============  ==============


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

Net income                               42,509           1,771          44,280

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

Balance, at June 30, 1997         $     254,680   $    (188,938)  $      65,742
                                  ==============  ==============  ==============




              See accompanying notes to the financial statements.

<PAGE>








                   CONSOLIDATED RESOURCES HEALTH CARE FUND II
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                                  June 30, 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 six
months ended June 30, 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.........................     $36,541    $78,097
  Financial accounting, data processing,
     tax reporting, legal and compliance,
     investor relations and supervision
     of outside services.....................     $28,915    $ 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 June 30, 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 $265,192 for the six months ended June
30,  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 facility 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 $191,394 for the six months ended June
30, 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 June 30, 1997, the Partnership held cash and cash equivalents of $1,011,577 a
decrease of $328,182  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 June 30,  1997,  the  Partnership  was not  obligated to perform any major
capital  expenditures or renovations.  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.  During
1997, the Partnership's  retirement  center is undergoing  renovations to comply
with requirements of the State of Ohio's  regulations  governing rest homes. The
Center's existing cash, HUD replacement reserves and cash from operations should
be sufficient to cover the cost of these renovations.

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: August 14, 1997                         By:  /s/J. Stephen Eaton
                                                   J. Stephen Eaton
                                                   President



Date: August 14, 1997                         By:  /s/Alan C. Dahl
                                                    Alan C. Dahl
                                                    Vice President and Principal
                                                    Financial Officer