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================================================================================
                                                         

                      SECURITIES AND EXCHANGE COMMISSION
                            WASHINGTON, D.C.  20549

                                 ______________

                                  FORM 10-K/A

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

                  For the fiscal year ended December 31, 1996
                                      or
               (  )  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

                        Commission File Number 0-26390

                         SUMMIT MEDICAL SYSTEMS, INC.
            (Exact name of registrant as specified in its charter)

         MINNESOTA                                               41-1545493
(State or other jurisdiction of                              (I.R.S. Employer 
incorporation or organization)                               Identification No.)

         10900 RED CIRCLE DRIVE
         MINNETONKA, MINNESOTA                                     55343
   (Address of principal executive offices)                     (Zip Code)

      Registrant's telephone number, including area code:  (612) 939-2200
                           _________________________

       SECURITIES REGISTERED PURSUANT TO SECTION 12(B) OF THE ACT:  NONE

          SECURITIES REGISTERED PURSUANT TO SECTION 12(G) OF THE ACT:

                         COMMON STOCK, $.01 PAR VALUE
                               (Title of Class)

     Indicate by check mark whether registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities and Exchange Act
of 1934 during the preceding twelve 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   (  )

     The aggregate market value of the common stock held by non-affiliates of
the registrant at March 25, 1997 was $27,961,433.50 based on the last sale price
for the Common Stock as quoted on the Nasdaq National Market on that date.

     At March 25, 1997, 10,347,696 shares of the registrant's common stock were
outstanding.

     Documents Incorporated by Reference:  Pursuant to General Instruction G(3),
     -----------------------------------                                        
the responses to Items 10, 11, 12 and 13 of Part III of this report are
incorporated herein by reference from the Company's definitive proxy statement
for its 1997 Annual Meeting of Shareholders to be filed with the Securities and
Exchange Commission on or before April 30, 1997.

     Indicate by check mark if disclosure of delinquent filers pursuant to Item
405 of Regulation S-K is not contained herein, and will not be contained, to the
best of registrant's knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any amendment to this
Form 10-K.  (   )
 
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                        Report of Independent Auditors


The Board of Directors
Summit Medical Systems, Inc.

We have audited the consolidated statements of financial position of Summit
Medical Systems, Inc. as of December 31, 1996 and 1995, and the related
consolidated statements of operations, changes in shareholders' equity and cash
flows for each of the three years in the period ended December 31, 1996. Our 
audits also include the financial statement schedule listed in the Index at Item
14(a).  These consolidated financial statements and schedule are the
responsibility of the Company's management. Our responsibility is to express an
opinion on these financial statements and schedule based on our audits.

We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above present
fairly, in all material respects, the consolidated financial position of Summit
Medical Systems, Inc. at December 31, 1996 and 1995, and the consolidated
results of its operations and its cash flows for each of the three years in the
period ended December 31, 1996, in conformity with generally accepted accounting
principles. Also, in our opinion, the related financial statement schedule, when
considered in relation to the basic financial statements taken as a whole,
presents fairly, in all material respects, the information set forth therein.

As discussed in Note 2 to the consolidated financial statements, prior years'
financial statements have been restated.



                                                /s/ Ernst & Young LLP


Minneapolis, Minnesota
April 3, 1997

                                      F-2
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                                  SIGNATURES

     Pursuant to the requirements of Section 13 or 15(d) 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.


Date:  April 4, 1997              SUMMIT MEDICAL SYSTEMS, INC.



                                  By  /s/ Kevin R. Green
                                    ---------------------------------------
                                    Kevin R. Green, President and
                                    Chief Executive Officer


     Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed by the following persons on behalf of the registrant and
in the capacities and on the dates indicated.

<TABLE>
<CAPTION>
 
 
      Signature                     Title                   Date
      ---------                     -----                   ----
<S>                        <C>                           <C>
                                                              
/s/ W. Hudson Connery      Chairman of the Board         April 4, 1997
-------------------------
W. Hudson Connery
 
/s/ Kevin R. Green         President, Chief Executive    April 4, 1997
-------------------------
Kevin R. Green             Officer and Director
                           (principal executive officer)
 
/s/ Richard J. Willemin    Interim Vice President,       April 4, 1997
-------------------------
Richard J. Willemin        Finance and Chief Financial 
                           Officer (principal financial 
                           and accounting officer)
 
/s/ John M. Nehra          Director                      April 4, 1997
-------------------------
John M. Nehra
 
                           Director                      April 4, 1997
-------------------------
Kent J. Thiry
 
                           Director                      April 4, 1997
-------------------------
Edward F. Sweeney
</TABLE>