<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 September 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)

                                            September 30,       December 31,
                                                1997               1996
                                         -----------------  ------------------


ASSETS
Current assets:
  Cash and cash equivalents              $      1,323,164   $       1,339,758
  Accounts receivable, net of
    allowance for doubtful accounts
    of $44,686                                    484,509             343,421
  Prepaid expenses and other                       14,138              40,184
                                         -----------------  ------------------
    Total current assets                        1,821,811           1,723,363
                                         -----------------  ------------------

Property and equipment
  Land                                            178,609             178,609
  Buildings and improvements                    6,617,854           6,333,497
  Equipment and furnishings                       782,046             666,806
                                         -----------------  ------------------

                                                7,578,509           7,178,912
                                         -----------------  ------------------
  Accumulated depreciation
     and amortization                          (4,034,081)         (3,738,651)
                                         -----------------  ------------------
    Net property and equipment                  3,544,428           3,440,261
                                         -----------------  ------------------

Other
  Restricted escrows and other deposits           400,839             315,012
  Deferred loan costs, net of
    accumulated amortization
    of $12,258 and $11,480                         20,052              20,831
                                         -----------------  ------------------
     Total other assets                           420,891             335,843
                                         -----------------  ------------------

                                         $      5,787,130   $       5,499,467
                                         =================  ==================


LIABILITIES AND PARTNERS' EQUITY
Current liabilities:
  Current maturities of long-term debt   $         74,516   $          67,222
  Accounts payable                                170,609             197,950
  Accrued expenses                                387,009             373,500
  Accrued management fees                         344,648             254,518
  Other liabilities                               171,166             179,130
                                         -----------------  ------------------

    Total current liabilities                   1,147,948           1,072,320
                                         -----------------  ------------------

Long-term obligations,
  less current maturities                       4,151,258           4,205,585
                                         -----------------  ------------------
    Total liabilities                           5,299,206           5,277,905
                                         -----------------  ------------------

Partners' equity (deficit):
    Limited partners                              659,975             412,271
    General partners                             (172,051)           (190,709)
                                         -----------------  ------------------
     Total partners' equity                       487,924             221,562
                                         -----------------  ------------------

                                         $      5,787,130   $       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                 Nine Months Ended
                                             September 30,                      September 30,
                                        1997              1996             1997              1996
                                  ----------------  ----------------   --------------  ----------------

<S>                               <C>              <C>              <C>               <C>
Revenue:
  Operating revenues             $     2,347,175   $     1,686,383  $     6,001,347   $     5,075,363
  Interest income                          8,145             3,871           26,583            13,276
                                 ----------------  ----------------   --------------  ----------------
    Total revenue                      2,355,320         1,690,254        6,027,930         5,088,639
                                 ----------------  ----------------   --------------  ----------------

Expenses:
  Operating expenses                   1,684,276         1,586,806        4,919,013         4,630,149
  Depreciation & amortization            120,960           103,623          325,361           299,886
  Interest                                79,557            70,258          239,834           232,307
  Partnership adminstration
     costs                                48,345                 -           77,260             7,796
                                 ----------------  ----------------   --------------  ----------------
    Total expenses                     1,933,138         1,760,687        5,561,468         5,170,138
                                 ----------------  ----------------   --------------  ----------------



Net income (loss)                $       422,182   $       (70,433) $       466,462   $       (81,499)
                                 ================  ================ ================  ================


Net income (loss) per L.P. unit  $         27.02   $         (4.51) $         29.85   $         (5.22)
                                 ================  ================ ================  ================

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)


                                                 Nine months ended September 30,

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


Operating Activities:
  Cash received from residents and
  government agencies                          $    5,860,259   $     5,431,560
  Cash paid to suppliers and employees             (4,954,405)       (4,893,616)
  Interest received                                    26,583            13,276
  Interest paid                                      (239,834)         (232,307)
  Property taxes paid                                 (62,465)          (60,026)
                                               ---------------  ----------------
  Cash provided by 
    operating activities                              630,138           258,887
                                               ---------------  ----------------

Investing Activities:
  Additions to property and equipment                (399,597)         (134,155)
                                               ---------------  ----------------

Financing Activities:
  Principal payments on long-term debt                (47,033)          (53,628)
  Distributions                                      (200,100)         (150,000)
                                               ---------------  ----------------
  Cash used in financing activities                  (247,133)         (203,628)
                                               ---------------  ----------------

Net (decrease) in cash
     and cash equivalents                             (16,592)          (78,896)

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

Cash and cash equivalents, end of period       $    1,323,166   $     1,036,404
                                               ===============  ================





                See accompanying notes to financial statements.

<PAGE>

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


                                                 Nine months ended September 30,
                                                   1997              1996
                                              ---------------    --------------


Reconciliation of Net Income (Loss) to cash
Provided by Operating Activities:
  Net income (loss)                         $      466,462   $       (81,499)
  Adjustments to reconcile net income
    to cash provided by (used in)
    operating activities:
        Depreciation and amortization              325,361           299,886
        Changes in assets and liabilities:
          Accounts receivable                     (141,088)          356,197
          Restricted escrows                       (85,827)          (22,343)
          Other current assets                      26,046          (104,480)
          Accounts payable and
              accrued liabilities                   39,184          (188,874)
                                            ---------------    --------------

  Cash provided by operating
     activities                             $      630,138   $       258,887
                                            ===============  ================


                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                                (78,239)         (3,260)        (81,499)

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

Balance, at September 30, 1996    $      66,467   $    (205,117)  $    (138,649)
                                  ==============  ==============  ==============


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

Net income                              447,804          18,658         466,462

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

Balance, at September 30, 1997    $     659,975   $    (172,051)  $     487,924
                                  ==============  ==============  ==============




              See accompanying notes to the financial statements.

<PAGE>






CONSOLIDATED RESOURCES HEALTH CARE FUND II
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                               September 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 nine months ended  September 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:

                                                Nine Months Ended
                                                  September 30,

                                                1997        1996
Charged to costs and expenses:
  Property management and oversight
     management fees....................        $6,795     $88,290
  Financial accounting, data processing,
     tax reporting, legal and compliance,
     investor relations and supervision
     of outside services.................      $15,867      $7,796



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 prospective  purchasers for
its facilities,  and other factors affecting the Partnership's business that may
be beyond its control.

     At September 30, 1997,  the  Partnership  had three  general  partners (the
"General Partners"),  Consolidated Associates II, a Georgia general partnership,
WelCare Consolidated Resources Corporation of America,  serving as the Corporate
General  Partner  ("WCRCA"  or the  "Corporate  General  Partner"),  and WelCare
Service  Corporation-II,  a Georgia  corporation  as  Managing  General  Partner
("WSC-II" or the "Managing General Partner").
     At December 31, 1996 and  September  30, 1997,  the  Partnership  owned and
operated two health care facilities,  a nursing home and retirement center, both
located in Columbus, Ohio.

Results of Operations

Revenues:

     Operating  revenue  showed an increase of  $660,792  for the quarter  ended
September  30,  1997,  compared to the same  period for the prior year.  Of this
increase,  approximately  $362,000 was  attributable to favorable  Medicare cost
report  settlements  related to the year ended  December 31, 1995 not previously
recognized by the  Partnership's  nursing facility.  The remaining  increase was
primarily due to favorable  changes in census mix at the  Partnership's  nursing
facility as compared to the same period in the prior year,  which offset in part
a decline in revenues at the  Partnership's  retirement  center  resulting  from
lower occupancy levels.
Expenses:

     Operating  expenses  showed an increase  of $97,470  for the quarter  ended
September  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 September 30, 1997, the  Partnership  held cash and cash  equivalents of
$1,323,164 a decrease of $16,594 from  December 31, 1996.  The 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 September 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.
     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.

Part II - OTHER INFORMATION

ITEM 6.  Exhibits and Reports on Form 8-K

(a)             Exhibits

                27.1   Financial Data Schedule (for SEC use only)

(b)             Reports on Form 8-K

                    None



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


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







                                  EXHIBIT INDEX


Exhibit Number  Description

       27.1        Financial Data Schedule (for SEC use only)