U.S. SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549



                                   FORM 10-QSB



[X]  Quarterly  Report under Section 13 or 15(d) of the Securities  Exchange Act
     of 1934 For the quarterly period ended March 31, 2000

[ ] Transition  report under Section 13 or 15(d) of the  Securities  Exchange
     Act of 1934 For the transition period from _________ to ________




                                 SURGICARE, INC.
                 (NAME OF SMALL BUSINESS ISSUER IN ITS CHARTER)


          DELAWARE                                        58-1597246
(STATE OR OTHER JURISDICTION OF            (I.R.S. EMPLOYER IDENTIFICATION NO.)
 INCORPORATION OR ORGANIZATION)


  6699 CHIMNEY ROCK, SUITE 105
    HOUSTON, TEXAS(ADDRESS OF                                77081
   PRINCIPAL EXECUTIVE OFFICES)                           (ZIP CODE)

ISSUER'S TELEPHONE NUMBER: (713) 665-1406


Check  whether the  Registrant:  (1) filed all  reports  required to be filed by
Section 13 or 15(d) of the  Exchange  Act during the past 12 months (or for such
shorter period that the  Registrant was required to file such reports),  and (2)
has been subject to such filing requirements for the past 90 days.

Yes [X]  No [ ]

As of May 8, 2000,  12,596,657 shares of Common Stock, $0.005 par value per
share, were outstanding.  As of May 8, 2000,  1,450,000 shares of Preferred
"Series A" Stock, $0.001 par value per share, were outstanding.

Transitional Small Business Disclosure Format:  Yes [ ]  No [X]

<PAGE>

PART I
                              FINANCIAL INFORMATION


The information  contained  herein contains  certain forward looking  statements
within the meaning of Section 27A of the  Securities Act of 1933, as amended and
Section  21E of the  Securities  Exchange  Act of 1934,  as  amended,  which are
intended  to be covered  by the safe  harbors  created  thereby.  Investors  are
cautioned that all forward  looking  statements  involve risks and  uncertainty,
including,  without  limitation,  the  ability  of  SurgiCare  to  continue  its
expansion strategy,  changes in federal or state healthcare laws and regulations
or third party payer practices,  SurgiCare's  historical and current  compliance
with existing or future  healthcare  laws and  regulations and third party payer
requirements, changes in costs of supplies, labor and employee benefits, as well
as general  market  conditions,  competition  and  pricing.  Although  SurgiCare
believes  that  the  assumptions   underlying  the  forward  looking  statements
contained herein are reasonable, any of the assumptions could be inaccurate, and
therefore,  there  can be no  assurance  that  the  forward  looking  statements
included  in  this  Form  10-QSB  will  prove  to be  accurate.  In  view of the
significant  uncertainties  inherent in the forward looking statements  included
herein,  the  inclusion  of  such  information  should  not  be  regarded  as  a
representation by SurgiCare or any other person that the objectives and plans of
SurgiCare  will be achieved.  SurgiCare  undertakes  no  obligation to update or
revise forward-looking statements to reflect changed assumptions, the occurrence
of unanticipated events or changes to future operating results over time.



ITEM 1.

Financial Statements

The information required hereunder is included in this report as set forth
in the "Index to Financial Statements"

                          INDEX TO FINANCIAL STATEMENTS

Consolidated Balance Sheet as of December 31 1999, and
     March 31, 2000                                                Page

                                                                      3

Consolidated  Income  Statement for the 3 months ending as
of March 31, 1999 and 2000                                            5

Consolidated Statement of Cash Flows for the 3 months ending
as of March 31, 1999 and 2000                                         6


<PAGE>



                                 SURGICARE, INC.
<TABLE>

<CAPTION>
                           CONSOLIDATED BALANCE SHEETS


                                                     December 31,     March 31,
                                                        1999            2000
                                                                     (Unaudited)
                            ASSETS
<S>                                                      <C>
Current Assets
     Cash and cash equivalents                       $   243,859  $      91,214
     Accounts receivable (less allowance for
      contractual adjustments and doubtful accounts    1,751,984      1,980,529
      of $1,470,530 and $1,546,397 at December
      31, 1999 and March 31, 2000, respectivly)
     Other receivabls                                     80,849
     Inventory                                            89,361         89,537
     Prepaid expenses                                     27,175         24,354
     Other current Assets                                 21,200         16,883

        Total Current Assets                           2,214,428      2,202,517

Property and Equipment
     Office furniture and equipment                       40,922         40,922
     Medical and surgical equipment                      660,225        699,038
     Leasehold improvements                               28,016        382,604
     Computer equipment                                   58,303         61,102
     Construction in progress                            117,121

                                                         904,587      1,183,667

     Less: Accumulated depreciation and                  487,998        527,347
        amortization

        Total Property and Equipment                     416,589        656,320


Other Assets
     Goodwill                                            166,367        163,499


        TOTAL ASSETS                              $    2,797,384  $   3,022,336




<PAGE>





                                 SURGICARE, INC.

                           CONSOLIDATED BALANCE SHEETS



                         LIABILITIES

Current Liabilities
     Current portion of capital lease             $       21,464   $     32,466
     Notes Payable                                       633,764        564,291
     Accounts Payable                                    147,685        253,340
     Accrued Expenses                                    128,280         46,626
     Federal income tax payable                           95,637        311,832
     Deferred federal income tax                         546,000        576,090

        Total Current Liabilities                      1,572,830      1,784,645

Long-Term Capital Lease Obligations                       49,544         32,706

        Total Liabilities                              1,622,374      1,817,351

                SHAREHOLDERS' EQUITY

Preferred Stock, Series A, par value
  $.001, 1,650,000 authorized, 1,400,000 and               1,400          1,450
   1,450,000 issued and outstanding at
   December 31, 1999 and March 31, 2000 respectively

Common Stock, par value $.005, 50,000,000 shares
     authorized, 12,596,657 issued and outstanding        62,983         62,983

Additional Paid-In Capital                               900,245        922,695

Retained Earnings                                        237,882        486,607

Less:   Shareholders receivables                        (27,500)       (268,750)

        Total Shareholders' Equity                     1,175,010      1,204,985

     TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY   $    2,797,384    $ 3,022,336

</TABLE>

<PAGE>




                                 SURGICARE, INC.
<TABLE>
<CAPTION>

                          CONSOLIDATED INCOME STATEMENT
                                   (unaudited)

                                                           FOR THE
                                                      THREE MONTHS ENDING
                                                          Marchr 31,

                                                       1999        2000
<S>                                                <C>          <C>

Revenues, net ..................................   $ 898,128 $  1,228,703

Expenses
Direct Surgical Expenses
      Surgical Costs ...........................     113,246      193,208
      Salaries, wages and benefits .............      77,194      108,615
      Contract services ........................       7,474       31,029
                                                    ----------------------------
              Total Direct Surgical Expenses ...     197,914      332,852
 Gen. and Admin. Expenses
      Salaries, Wages and benefits                    18,990       46,702
      Professional fees ........................       5,453        6,791
      Rent .....................................      43,863       40,682
      Management fees ..........................      78,516       21,218
      Insurance ................................       6,075        8,937
      Depreciation and amortization ............      29,658       42,217
      Repairs and maintenance ..................       9,899       12,298
      Other operating expenses .................      67,202       52,135
      Taxes ....................................           0       35,780
                                                    ---------------------------
          Total Direct Gen. and Admin.  Expenses     259,658      266,760
                                                    ---------------------------
          Total Expenses .......................     457,572      599,612

Earnings Before Federal Income Tax Expense .....     440,556      629,091

Federal Income Tax Expense (Benefit)
      Deferred .................................           0       30,090
      Current ..................................           0      180,280
                                                   -----------------------------

Net Earnings .................................  $    440,556 $    418,721
                                                   =============================
Pro forma income data (unaudited):
      Earnings before federal income tax expense$    440,556 $
      Proforma federal and state income tax ....    (171,817)
                                                   -----------------------------
      Pro forma Net Earnings ...................$    268,739 $    418,721
                                                   =============================

      Pro forma earnings per share - basic and .$       .010 $       .020
      diluted


</TABLE>


<PAGE>





                                 SURGICARE, INC.
<TABLE>
<CAPTION>

                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (unaudited)
                                                           FOR THE
                                                      THREE MONTHS ENDING
                                                            March 31,

<S>                                                   <C>            <C>
                                                      1999           2000
Cash Flows From Operating Activities
     Net earnings                              $     440,556 $     418,721
     Adjustments to reconcile net earnings to
     net cash provided by operations:
         Depreciation and amortization                26,154        42,217
         Deferred federal income tax                                30,090
         (Increase) Decrease in:
         Accounts receivable                        (169,518)     (146,670)
         Inventory                                      2013          (176)
         Prepaid expenses                               3048         3,785
         Other current assets                           1889          (226)
         State Income Tax Payable                                   30,934
         Federal Income Tax                                0       122,335
         Increase (Decrease) in:
         Accounts payable                             44,674       106,049
         Accrued expenses                             42,629       (21,292)

         Net Cash Provided by Operating              391,445       585,769
         Activities

Cash Flows From Investing Activities
     Capital expenditures                           (80,498)      (279,080)
     Collections on shareholder receivable            31,500        25,750
     Loan to Shareholders                                         (244,500)
         Net Cash Used in Investing Activities      (48,998)      (520,330)

Cash Flows From Financing Activities
     Borrowings on debt                              50,612
     Payments on debt                               (54,579)       (64,547)
     Principal payments on capital lease            (28,956)        (6,036)
     Dividends paid to preferred shareholders      (275,000)      (170,000)
         Net Cash Used in Financing Activities     (307,924)      (218,083)

Net Decrease in Cash and Cash Equivalents             34,522      (152,645)

Cash and Cash Equivalents - Beginning of              57,049       243,859
Period

Cash and Cash Equivalents - End of Period      $      91,571 $     91,214
</TABLE>
Schedule of new cash financing and Investing
     Preferred stock sold for shareholder receivable $22,500
<PAGE>

                                 SURGICARE, INC.

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)

     The accompanying financial statements are unaudited,  but in the opinion of
management,  include  all  adjustments  necessary  for a  fair  presentation  of
financial position and results of operations for the periods presented.

Note 1 - Accounting Policies

SurgiCare,  Inc. (the Company)  maintains its accounts on the accrual  method of
accounting  in  accordance  with  generally  accepted   accounting   principles.
Accounting  principles followed by the Company and the methods of applying those
principles which  materially  affect the  determination  of financial  position,
results of operations and cash flows are summarized below:

   Description of Business

     Bellaire Surgicare,  Inc. (Bellaire) was formed in January, 1995 as a Texas
     corporation  to  operate  a day  surgery  center  in  Houston,  Texas,  and
     therefore  operates as a single segment.  Effective July 1, 1999,  Bellaire
     acquired SurgiCare,  Inc. (formerly Technical Coatings,  Inc.) in a reverse
     acquisition.  Bellaire Surgicare,  Inc. is now a wholly-owned subsidiary of
     SurgiCare, Inc.

   Principles of Consolidation

     These consolidated financial statements include the accounts of the Company
     and its  wholly-owned  subsidiary,  Bellaire  Surgicare,  Inc. All material
     intercompany   balances   and   transactions   have  been   eliminated   in
     consolidation.

   Cash and Cash Equivalents

     The Company considers all short-term  investments with an original maturity
     of three  months  or less to be cash  equivalents.  During  the  year,  the
     Company maintained cash balances in excess of federally insured limits.

   Revenue Recognition

     Revenue  is  recognized  on the  date the  procedures  are  performed,  and
     accounts receivable are recorded at that time. Revenues are reported at the
     estimated  realizable amounts from patients and third-party payers. If such
     third-party payers were to change their reimbursement  policies, the effect
     on revenue could be significant.  Earnings are charged with a provision for
     contractual  adjustments  and  doubtful  accounts  based on fee  schedules,
     contracts and collection experience.  Contractual  adjustments and accounts
     deemed uncollectible are applied against the allowance account.

   Inventory

     Inventory consists of medical and pharmaceutical  supplies which are stated
     at the lower of cost or  market.  Cost is  determined  under the  first-in,
     first-out method.

   Property and Equipment

     Property  and  equipment  are  presented  at  cost.  Medical  and  surgical
     equipment,  of approximately  $144,000,  under capital lease is recorded at
     the  present  value of future  minimum  lease  payments.  Depreciation  and
     amortization  are computed at rates  considered  sufficient to amortize the
     cost of the assets,  using the  straight-line  method over their  estimated
     useful lives as follows:

          Office furniture and equipment         7 years
          Medical and surgical equipment         5 years
          Leasehold improvements                 5 years
          Computer equipment                     5 years

   Goodwill

   Goodwill  arises  from the  acquisition  of  assets at an amount in excess of
   their fair market value. Amortization is computed by the straight-line method
   over 15 years.
<PAGE>

                                 SURGICARE, INC.
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
                           March 31, 1999 and 2000


   Federal Income Taxes

   Prior  to  July  1,  1999,  the  Company  had  elected  to be  taxed  as an S
   corporation  under provisions of the Internal Revenue Code. As such,  current
   taxable   income  had  been  included  on  the  income  tax  returns  of  the
   shareholders  for federal  income tax purposes and no provision had been made
   for federal income taxes.

   Effective July 1, 1999,  the Company  changed its election to be taxed as a C
   corporation  under the Internal  Revenue  Code.  Taxes on income are provided
   based upon Statement of Financial  Accounting  Standards No. 109, "Accounting
   for  Income  Taxes,"  which  requires  an asset  and  liability  approach  to
   financial  accounting  and reporting for income  taxes.  Deferred  income tax
   assets and  liabilities  are computed for  differences  between the financial
   statement and tax bases of assets and liabilities that will result in taxable
   or  deductible  amounts in the  future.  Such  deferred  income tax asset and
   liability  computations are based on enacted tax laws and rates applicable to
   periods in which the differences are expected to affect taxable income.

   Use of Estimates

   The preparation of financial statements in conformity with generally accepted
   accounting  principles  requires management to make estimates and assumptions
   that affect the reported  amounts of assets and liabilities and disclosure of
   contingent assets and liabilities at the date of the financial statements and
   the reported  amounts of revenues and expenses  during the reporting  period.
   Actual results could differ from those estimates.

Note 2 - Unaudited Pro Forma Net Earnings and Pro Forma Earnings Per Share

         Pro forma earnings per share  represent pro forma net earnings (after a
pro forma  provision  for income  taxes as if the  Company  had been  subject to
federal and state income taxation as a C corporation since inception)  available
to common  shareholders  divided  by the pro forma  weighted  average  number of
common shares  outstanding  during the period. Pro forma weighted average shares
were  calculated  giving  effect to the 7,304 to 1 exchange of SurgiCare  common
stock for Bellaire common stock,  as if the reverse  acquisition had occurred at
the beginning of each period presented.The conversion of preferred stock to
common stock is anti-dilutive

The following table sets forth the computation of basic and diluted earnings per
share:

<TABLE>
<CAPTION>

                                                                          For the Three
                                                                          Months Ended
                                                                            March 31,
                                                                          (Unaudited)
                                                                          -------------
                                                                      1999              2000

<S>                                                              <C>              <C>
Basic Earnings Per Share:
   Pro forma net earnings                                       $      268,739    $       418,721
   Less: Preferred dividends                                           137,500            170,000
                                                                --------------    --------------
   Pro forma net earnings available for common shareholders
                                                                $      131,239    $       248,721
                                                                ==============    ===============
   Weighted average shares outstanding                              12,596,657         12,596,657
                                                                ==============    ===============
   Pro forma net earnings per share - basic                           $.010              $.020
                                                                ==============    ===============

   Proforma  earnings  per  share for 1999 have  been  reduced  to assume  the
preferred stock had been issued at the beginning of the period.


</TABLE>


Note 3 - Preferred Stock

The Series A preferred  stock is convertible at a rate of one share of preferred
stock into one share of $.005 par value common stock. The Company can redeem the
stock at $5 per share. The Series A preferred stock accrues  dividends at a rate
of $.48 per share per annum which are payable,  in arrears,  on the first day of
the month. Holders of Series A preferred stock are entitled to one vote for each
share of Series A preferred stock held.



ITEM 2.

Management's  Discussion  and  Analysis of  Financial  Condition  and results of
Operation.

SurgiCare   principal   business   strategies  are  to  (i)  increase  physician
utilization of existing facilities,  (ii) increase both the revenue and profits,
from current cases and procedures  being  performed in existing  facilities and,
(iii) achieve growth and expand revenues by pursuing  strategic  acquisitions of
existing,  and the  development  of new,  physician  owned  ambulatory  surgical
centers.

     (i) Bellaire  SurgiCare is currently  operating  at or near  capacity.  In
         order to facilitate growth,  SurgiCare added one additional  operating
         room to its Bellaire  facility.  This additional operating  room has
         increased  the  capacity at Bellaire by 50% of fiscal 1999.

    (ii) SurgiCare  is  constantly  striving to achieve  increase  profits from
         existing  revenues.  Surgical supply costs are the single largest cost
         component of any ambulatory  surgical center.  Therefore  SurgiCare is
         always  looking  for ways to decrease  the cost of surgical  supplies.
         Through  participation  in national  buying groups  SurgiCare has been
         able to  negotiate  discounts on most of the  commonly  used  surgical
         supplies.  SurgiCare has also implemented a "Just in Time" approach to
         inventory.  This allows the center to minimize  the amount of supplies
         that it is required  to keep in  inventory.  SurgiCare  is also always
         looking for new  distributors  of its surgical  supplies that have the
         capability to deliver the majority of its surgical  supplies  "Just in
         Time", and provide quality service,  at reduced prices.  SurgiCare has
         found that the  purchasing  policies  that govern the  acquisition  of
         surgical  equipment is an important key to maximize a centers  profit.
         Therefore all equipment is purchased at the corporate  level, in order
         to insures that the  equipment  is  purchased  at the lowest  possible
         price.

     (iii)SurgiCare is in the process of identifying ambulatory surgical centers
          as potential  acquisition targets,  and has, in some cases,  conducted
          preliminary  discussions with  representatives of centers. At the time
          of this filing there are no commitments, understandings, or agreements
          with any potential  acquisition  targets. All of such discussions have
          been  tentative in nature and there can be no assurance that SurgiCare
          will  acquire any center with whom  discussions  have been  conducted.
          SurgiCare  expects that generally the  acquisition of another  surgery
          center  would take the form of a merger,  stock-for-stock  exchange or
          stock-for-assets  exchange,  and  that in most  instances  the  target
          company will wish to structure the business  combination  to be within
          the definition of a tax-free  reorganization  under Section 368 of the
          Internal Revenue Code of 1986, as amended. SurgiCare may, however, use
          other  acquisition  structuring  techniques,  including  purchases  of
          assets or stock for cash or cash and stock,  or through  formation  of
          one or more limited partnerships or limited liability companies.


RESULTS OF OPERATION

The following  table sets forth for the period  indicated the number of surgical
cases.
<TABLE>
<CAPTION>

                                                              For the
                                                        Three Months Ended
                                                             March 31,
                                                       1999             2000

<S>                                                 <C>                <C>
Total Number of Cases                                  519               657

Total Revenues Generated                            $ 898,128        $ 1,228,703

Revenue Generated per Case                          $   1,730        $     1,870

Earnings Before Federal Income Tax per Case         $     849        $       958

</TABLE>


THREE MONTHS ENDING MARCH 31, 2000 vs THREE MONTHS ENDING MARCH 31, 1999

     SurgiCare  is  continuing  to making a concerted  effort to  increase  both
revenues and profits.  One of the tools that SurgiCare uses to achieve increased
revenues  and profits,  is a program that  involves  constantly  monitoring  the
profitability of specific procedures, and service. This information is then used
to decreasing the number of cases being done in those less profitable, high cost
services,  and increasing the number of cases being done in the more  profitable
less cost intensive services.

     SurgiCare  performed 657 case by March 31, 2000 compared to 519  procedures
done for the same  period in 1999,  this  represents  27%  increase  in  average
monthly  utilization.  The revenues  generated per case increased 9% from $1,730
for the three month period  ending March 31, 1999,  to $1,870 for the same three
month period in 2000. The pre-tax  earnings  generated per case increased by 13%
from $849 per case for the three month period ending March 31, 1999, to $958 for
the same three month period in 2000.

     In the three months ending March 31, 2000 Bellaire  recorded record revenue
of $1,228,703  compared to $898,128 for the same period in 1999, this represents
a 37% increase in total revenue.

     In the fourth  quarter of 1999,  in an effort to better  capture  and track
incremental   direct  expense,   certain  expenses  from  out  sourced  services
previously  classified,  as  "Professional  Fees", a general and  administrative
expense,  were re-classified to "Contract Services",  a direct surgical expense.
This change in classification  dramatically altered the expenses as a percentage
of revenue for both "direct" and general and  administrative"  expenses.  Direct
surgical  cost rose as a  percentage  of total  revenue  from 22% for the period
ending  March  31,  1999  to 27%  for the  same  period  in  2000.  General  and
administrative  expenses  dropped as a percentage  of total revenue from 28% for
the period  ending March 31, 1999,  to 21% for the same period in 2000.

     As percentage of revenue,  total  expenses  dropped from 50% for the period
ending march 31, 1999, to 48% for the same period in 2000. This decrease in over
all expenses  couples with the 37% growth in revenues  translated to an increase
in pre-tax earning of 42% to $629,091 for the period ending March 31, 2000, from
$440,556 for the same period in 1999.

LIQUIDITY and CAPTIAL RESOURCES

         SurgiCare's  current  source of liquidity  consists  primarily of funds
from operations.  SurgiCare  believes that the cash available from operations is
adequate to meet the company's operational requirments requirements.


PART II
                                OTHER INFORMATION
ITEM 1.
Legal Proceedings

         SurgiCare is not currently involved in any legal proceedings.

ITEM 2.
Change in Securities and Use of Proceeds

     There has been no change in common  securities  since SurgiCare  filled its
Form 10-SB on August 20, 1999.

ITEM 3.
Default Upon Senior Securities

         SurgiCare has not defaulted on any payments of principal or interest on
any securities.


ITEM 4.
Submission of Matters to a Vote of Security Holder

     None


                                    SIGNATURES



In accordance with the  requirements of the Exchange Act, the Registrant  caused
this  Report to be  signed on its  behalf  by the  undersigned,  thereunto  duly
authorized.


Date:    May 10, 1999                            REGISTRANT:

                                                        SurgiCare, Inc

                                                By: /s/ David Blumfield
                                                     Dr. David Blumfield
                                                     President and CEO


                                                By:  /s/ CHARLES S. COHEN
                                                     Charles S. Cohen
                                                     Chief Operating Officer


ITEM 6.
INDEX TO EXHIBITS

                                                           DESCRIPTION
     EXHIBIT
     NUMBER
       3.1         * Amended and Restated Certificate of Incorporation of
                     SurgiCare, Inc.
       3.2         * Articles of Incorporation of Bellaire SurgiCare, Inc.
       3.3         * By-Laws of Technical Coatings Incorporated
                     (now SurgiCare, Inc.)
       3.4         * By-Laws of Bellaire SurgiCare, Inc.
        4          * Certificate of Designation,  Powers, Preferences and Rights
                     of Series A Redeemable  Preferred  Stock, par value $.001
                     per share, of SurgiCare, Inc.
      10.1         * Agreement, dated July 29, 1989, 1999, between
                     SurgiCare, Inc. and Surgery Centers of
                     America II, Inc.
      10.2         * Letter agreement with SCOA
       27          * Financial Data Schedule


* Incorporated herein by reference to the Company's Current Report on form 10-SB
filed on August 20, 1999.

During the three months ended March 31, 2000,  SurgiCare filed the following
current  reports on 10KSB