U.S. Securities and Exchange Commission

                            Washington, D.C. 20549


                                 FORM 10-QSB

 (Mark One)
   [ X ]    QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
            EXCHANGE ACT OF 1934

            For the quarterly period ended March 31, 2002

   [  ]     TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
            EXCHANGE ACT OF 1934

            For the transition period from                    to

            Commission file number: 000-26740

                         AMERICAN HEALTHCHOICE, INC.
      (Exact name of small business issuer as specified in its charter)

                 New York                                    11-2931252
      (State or other jurisdiction of                     (I.R.S. Employer
      incorporation or organization)                    Identification No.)

      1300 W. Walnut Hill Lane, Suite 275, Irving, TX           75038
      (Address of principal executive offices)                (Zip Code)

                                (972) 751-1900
                         (Issuer's telephone number)

      Check whether the issuer (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 March 31, 2002, there were outstanding 93,825,766 shares of the
 issuer's Common Stock, par value $.001 per share.

 Transitional Small Business Disclosure Format (check one)

      Yes [   ]      No [ X ]

<PAGE>

                         AMERICAN HEALTHCHOICE, INC.

                             INDEX TO FORM 10-QSB

                     For the Quarter Ended March 31, 2002




       Part I Financial Information

          Item 1.  Financial Statements

            Consolidated Balance Sheet .....................          2

            Consolidated Statement of Operations ...........          3

            Consolidated Statement of Cash Flows ...........          4

            Notes to Consolidated Financial Statements .....          5


          Item 2.  Management's Discussion and Analysis or
                   Plan of Operation .......................          6


       Part II Other Information

          Item 1.  Legal Proceedings........................          8

          Item 2.  Changes in Securities and Use of Proceeds          8

          Item 3.  Defaults upon Senior Securities..........          8

          Item 4.  Submission of Matters to a Vote of
                   Security Holders ........................          8

          Item 5.  Other Information........................          8

          Item 6.  Exhibits and Reports on Form 8-K.........          8


       Signatures  .........................................          8

<PAGE>

                        PART I. FINANCIAL INFORMATION

 Item 1. Financial Statements

                         AMERICAN HEALTHCHOICE, INC.
                               AND SUBSIDIARIES

                          CONSOLIDATED BALANCE SHEET
                                 (Unaudited)
                                MARCH 31, 2002

                                    ASSETS


 Current Assets:
 Cash                                                         $     20,879
 Accounts receivable, less allowance for doubtful
      accounts of $7,120,512                                     7,918,259
 Other current assets                                               93,358
                                                               -----------
      Total current assets                                       8,032,496

 Property and equipment, net                                       319,005
 Goodwill, net                                                   4,055,081
 Other assets                                                      155,295
                                                               -----------
      Total assets                                            $ 12,561,877
                                                               ===========

                  LIABILITIES AND STOCKHOLDERS' EQUITY

 Current Liabilities:
 Notes payable                                                $  1,041,458
 Capital lease obligation                                           12,500
 Current bankruptcy claims                                         795,500
 Accrued payroll and payroll taxes                                 281,367
 Accounts payable and accrued expenses                             374,029
                                                               -----------
      Total current liabilities                                  2,504,854

 Convertible debentures                                          1,310,400
 Long-term bankruptcy claims                                       380,650
                                                               -----------
      Total liabilities                                          4,195,904


 Commitments                                                             _

 Stockholders' Equity:
 Preferred stock, $.001 par value; 5,000,000 shares
   authorized; none issued                                               -
 Common stock, $.001 par value; 115,000,000 shares
   authorized; 93,825,766 shares issued and outstanding             93,825
 Options to acquire common stock                                     8,000
 Additional paid-in capital                                     21,247,084
 Accumulated deficit                                           (12,982,936)
                                                               -----------
      Total stockholders' equity                                 8,365,973
                                                               -----------
      Total liabilities and stockholders' equity              $ 12,561,877
                                                               ===========


      See accompanying notes to these consolidated financial statements.

<PAGE>
<TABLE>

                          AMERICAN HEALTHCHOICE, INC.
                                AND SUBSIDIARIES

                     CONSOLIDATED STATEMENTS OF OPERATIONS
                                  (Unaudited)


                                    Three Months Ended March 31,        Six Months Ended March 31,
                                    ----------------------------       ---------------------------
                                       2001             2002              2001             2002
                                    ----------       ----------        ----------       ----------
 <S>                               <C>              <C>               <C>              <C>
 Net Patient Revenues              $ 1,404,207      $ 1,293,692       $ 2,640,054      $ 2,458,393

 Operating Expenses:
   Compensation and benefits           721,853          701,920         1,417,071        1,428,034
   Depreciation and amortization       157,627           42,807           292,832           85,944
   General and administrative          372,440          422,162           691,183          787,690
   Rent expense                         92,713          100,608           185,552          195,570
                                    ----------       ----------        ----------       ----------
      Total operating expenses       1,344,633        1,267,497         2,586,638        2,497,238

 Other Income (Expense):
   Interest expense and other
     costs of borrowing                (18,837)         (20,296)          (44,900)         (40,584)
   Other income                         57,579                -           107,579                -
                                    ----------       ----------        ----------       ----------
      Total other income (expense)      38,742          (20,296)           62,679          (40,584)
                                    ----------       ----------        ----------       ----------
 Income (Loss) Before Taxes             98,316            5,899           116,095          (79,429)

 Federal Income Taxes                   37,500                -            43,500                -
                                    ----------       ----------        ----------       ----------
 Net Income (Loss                  $    60,816      $     5,899       $    72,595      $   (79,429)
                                    ==========       ==========        ==========       ==========

 Basic and Diluted Net Income
    (Loss) Per Share               $         -      $         -       $         -      $         -


 Weighted Average Common Shares
   Outstanding                      81,502,032       93,825,766        80,821,764       93,825,766


                                  See accompanying notes to these consolidated financial statements.
</TABLE>
<PAGE>

                         AMERICAN HEALTHCHOICE, INC.
                               AND SUBSIDIARIES

                    CONSOLIDATED STATEMENTS OF CASH FLOWS
                                 (Unaudited)



                                                    Six Months Ended March 31,
                                                    --------------------------
                                                        2001         2002
                                                      ---------    ---------
 Cash Flows From Operating Activities:
 Net income (loss)                                   $   72,595   $  (79,429)
 Adjustments to reconcile net income to net cash
   used in operating activities:
   Allowance for doubtful accounts                    1,412,764    1,531,055
   Gain on cancellation of options                     (100,000)           -
   Employee compensation-stock                           43,800       43,800
   Depreciation and amortization                        292,832       85,944
 Change in operating assets and liabilities, net:
   Accounts receivable-trade                         (1,895,084)  (1,662,161)
   Other current assets                                   9,741      (33,981)
   Accounts payable and accrued expenses                 99,291       56,938
                                                      ---------    ---------
        Net cash used in operating activities           (64,061)     (57,834)

 Cash Flows From Investing Activities:
   Property and equipment                                (3,240)     (15,061)
                                                      ---------    ---------
        Net cash used in investing activities            (3,240)     (15,061)

 Cash Flows From Financing Activities:
   Proceeds from notes payable                           50,000       65,715
   Payments on notes payable and capital leases         (17,997)      (9,244)
                                                      ---------    ---------
        Net cash provided by financing activities        32,003       56,471
                                                      ---------    ---------
 Net Decrease In Cash                                   (35,298)     (16,424)
 Cash At Beginning Of Year                               40,701       37,303
                                                      ---------    ---------
 Cash At End Of Period                               $    5,403   $   20,879
                                                      =========    =========



 Supplemental Disclosure Of Cash Flow Information:
   Income taxes paid                                 $        -   $      610
   Interest paid                                          3,100        1,600

 Supplemental Disclosure Of Non-Cash Transactions:
   Offset reduction in valuation of clinic assets
     acquired against goodwill                                -      330,000
   Issuance of stock in connection with financing
     activities                                          12,500            -
   Conversion of debenture into stock                   322,200            -
   Issuance of stock in connection with
     employment agreements                              225,875            -


      See accompanying notes to these consolidated financial statements.

<PAGE>

                         AMERICAN HEALTHCHOICE, INC.
                               AND SUBSIDIARIES

                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 1.   Organization

 American HealthChoice, Inc.  and subsidiaries  (the Company)  consists of  a
 parent company and thirteen clinics providing medical, physical therapy, and
 chiropractic services in  San Antonio, McAllen,  Laredo, San Benito,  Corpus
 Christi and Houston, Texas, and New  Orleans, Louisiana.  Substantially  all
 of the Company's  revenues are derived  from chiropractic, physical  therapy
 and medical services provided to individuals  living in the vicinity of  the
 clinics.


 2.   Basis of Presentation

 The accompanying unaudited interim consolidated financial statements of  the
 Company  have  been  prepared  pursuant  to  the  rules  and  regulations of
 the Securities  and Exchange Commission.  Certain  information  in  footnote
 disclosures normally included in financial statements prepared in accordance
 with generally accepted accounting principles have been condensed or omitted
 pursuant to these rules and regulations. The accompanying unaudited  interim
 consolidated financial statements reflect all adjustments which the  Company
 considers necessary for a fair presentation of the results of operations for
 the interim periods covered and for  the financial condition of the  Company
 at the date of the interim balance  sheet.  All such adjustments (except  as
 otherwise disclosed herein) are of a normal recurring nature.

 The results of operations for  the six months ended  March 31, 2002 are  not
 necessarily indicative of the results to be expected for  the full year.  It
 is suggested  that the  March  31, 2002  financial  information be  read  in
 conjunction with the financial statements and notes thereto included in  the
 Company's Form 10-KSB dated September 30, 2001.


 3.    Summary of Significant Accounting Policies

 Consolidation policy  -  The accompanying condensed  consolidated  financial
 statements  include  the  accounts  of  the  Company  and  its  wholly-owned
 subsidiaries.   All material  inter-company accounts  and transactions  have
 been eliminated in consolidation.

 Net patient revenues - Revenue is  recognized upon performance of  services.
 Substantially all  of  the  Company's  revenues  are  derived  from  patient
 insurance settlements,  claims filed  on  major medical  policies,  worker's
 compensation policies, Medicare, and Medicaid.  Allowances for discounts  on
 services provided  are recognized  in the  periods  the related  revenue  is
 earned.   Allowances  are maintained  at  levels considered  appropriate  by
 management based  upon historical  charge-off experience  and other  factors
 deemed pertinent by management.

 Property and equipment, net - Property and equipment are stated at cost less
 accumulated depreciation.    Depreciation  is provided  over  the  estimated
 useful lives  of  the  related assets,  primarily  using  the  straight-line
 method.  Leasehold improvements are amortized over the shorter of the  lease
 term or the estimated useful lives of the improvements.

 Goodwill  -  The  Company  elected  to  adopt the  provisions  of  Financial
 Accounting Standard ("FAS") 142, "Goodwill  and Other Intangible Assets"  as
 of October  1, 2001.   This  policy requires  an impairment  test, which  is
 performed by  the  Company on  an  annual basis.    See footnote  4  to  the
 financial statements.

 Earnings per  share  -  Basic earnings  per  share are  computed  using  the
 weighted-average number of common shares outstanding.  Diluted earnings  per
 share are  computed using  the  weighted-average common  shares  outstanding
 after giving effect to  potential common stock from  stock options based  on
 the treasury  stock  method,  plus  other  potentially  dilutive  securities
 outstanding.  If the result of assumed conversions is dilutive, net earnings
 are adjusted for  the interest expense  on the convertible  debt, while  the
 average shares of common stock outstanding are increased.


 4.    Goodwill

 The Company  elected to  adopt the  provisions of  the Financial  Accounting
 Standard ("FAS") 142, "Goodwill and Other  Intangible Assets" as of  October
 1, 2001.  This  pronouncement addresses the issue  of proper accounting  and
 reporting for  intangible  assets,  such  as  purchased  goodwill.  FAS  142
 modified the purchase method of  accounting by eliminating the  amortization
 of goodwill  and substituting  an  impairment  test.  In  this  regard,  the
 Company engaged an independent valuation firm to conduct the impairment test
 as  of December  31, 2001.  For testing  purposes the  "reporting unit",  as
 prescribed by FAS 142, was the three clinics acquired in September 2000  for
 a total purchase price of $6,000,000.

 The first  step  of  the goodwill  impairment  testing  process  involves  a
 "carrying amount comparison" that compares the  fair value of the  reporting
 unit to its carrying value.  If  fair value exceeds carrying value, then  no
 further testing is required.  With respect to the valuation of the reporting
 unit, the firm relied on the results of the income approach.  In  connection
 with this  approach, the  firm utilized  the  discounted cash  flow  method.
 Based on the income  approach, in the opinion  of the independent  valuation
 firm, the fair value of  the net assets of  the reporting unit exceeded  the
 carrying value as  of December 31,  2001.  Thus,  goodwill of the  reporting
 unit was not impaired.


 Item 2.   Management's Discussion and Analysis or Plan of Operation

 Results of Operations

 The following discussion and analysis should be read in conjunction with the
 Consolidated Financial Statements and Notes thereto, and is qualified in its
 entirety by the foregoing and by  other more detailed financial  information
 appearing elsewhere.


 Three Months Ended March 31, 2002  Compared to Three Months Ended March  31,
 2001

      Net Patient Revenues.  For the  three months ended March 31, 2002,  net
 patient revenues decreased from  $1,404,000 for the same  period in 2001  to
 $1,294,000 in 2002.  Approximately $87,000  of the decrease is  attributable
 to a 4% increase in the allowance  for doubtful accounts as a percentage  of
 patient revenues.  The  remainder  is the result  of a  decrease in  patient
 billings in the 2002 period compared to the 2001 period.

      Compensation and Benefits.  For the three months ended March 31,  2002,
 compensation and benefits  decreased from $722,000  in 2001  to $702,000  in
 2002.  There were no material personnel changes in the 2001 period  compared
 to the 2000 period.

      Depreciation and Amortization.   For the three  months ended March  31,
 2002, depreciation  and  amortization decreased  from  $158,000 in  2001  to
 $43,000 in 2002.  The decrease is primarily due to amortization of  goodwill
 in the  amount of  $97,000  in  the 2001  period.  The  2002 period  has  no
 goodwill amortization due to a change in accounting policy.

      General and Administrative.  For the three months ended March 31, 2002,
 general and administrative increased from $372,000 in  2001 to  $422,000  in
 2002. Approximately  $55,000  of the  increase  was attributable  to  higher
 marketing and advertising expenses in the Texas chiropractic clinics.

      Rent.  For the three months  ended March 31, 2002, rent increased  from
 $93,000 in 2001 to $101,000 in 2002.  The increase is attributable to common
 area expense adjustments for the calendar year 2001.  There were no facility
 changes in the 2001 period compared to the 2000 period.


 Six Months Ended March 31, 2002 Compared to Six Months Ended March 31, 2001

      Net Patient Revenues.   For the  six months ended  March 31, 2002,  net
 patient revenues decreased from  $2,640,000 for the same  period in 2001  to
 $2,458,000 in 2002.  Approximately $130,000 of the decrease is  attributable
 to a 3% increase in the allowance  for doubtful accounts as a percentage  of
 patient revenues.   The remainder  is the result  of a  decrease in  patient
 billings in the 2002 period compared to the 2001 period.

      Compensation and Benefits.   For the six months  ended March 31,  2002,
 compensation and benefits increased from $1,417,000 in 2001 to $1,428,000 in
 2002.  There were no material personnel changes in the 2001 period  compared
 to the 2000 period.

      Depreciation and  Amortization.   For the  six months  ended March  31,
 2002, depreciation  and  amortization decreased  from  $293,000 in  2001  to
 $86,000 in 2002.  The decrease is primarily due to amortization of  goodwill
 in the  amount of  $194,000 in  the 2001  period.   The 2002  period has  no
 goodwill amortization due to a change in accounting policy.

      General and Administrative.  For the  six months ended March 31,  2002,
 general and administrative increased  from $691,000 in  2001 to $788,000  in
 2002. Approximately  $95,000  of the  increase  was attributable  to  higher
 marketing and advertising expenses in the Texas chiropractic clinics.

      Rent.  For  the six months  ended March 31,  2002, rent increased  from
 $186,000 in  2001 to  $196,000 in  2002.   The increase  is attributable  to
 common area expense adjustments for the  calendar year 2001.  There were  no
 facility changes in the 2001 period compared to the 2000 period.


 Liquidity and Capital Resources

 For the  six  months  ended March  31,  2002,  net cash  used  in  operating
 activities was $58,000 compared  to $64,000 for the  six months ended  March
 31, 2001.  Net cash used in  operating activities was  financed by  proceeds
 from notes payable.


 Forward-Looking Information

 This report  contains  certain forward-looking  statements  and  information
 relating to  the Company  that are  based on  the beliefs  of the  Company's
 management  as  well  as  assumptions  made  by  and  information  currently
 available to the Company's management. When  used in the report, words  such
 as "anticipate," "believe,"  "estimate," "expect,"  "intend," "should,"  and
 similar expressions,  as  they relate  to  the Company  or  its  management,
 identify forward-looking statements.   Such statements  reflect the  current
 views of  the Company  with respect  to  future events  and are  subject  to
 certain risks, uncertainties,  and assumptions relating  to the  operations,
 results of  operations,  liquidity,  and growth  strategy  of  the  Company,
 including competitive factors  and pricing pressures,  changes in legal  and
 regulatory requirements, interest  rate fluctuations,  and general  economic
 conditions, as well as other factors  described in this report.  Should  one
 or more of  the risks materialize,  or should  underlying assumptions  prove
 incorrect, actual  results  or  outcomes  may  vary  materially  from  those
 described herein as anticipated, believed, estimated, expected, or intended.


                         Part II.  OTHER INFORMATION


 Item 1.  Legal Proceedings

 There have been no material events related to legal proceedings reported  in
 the Registrants 10-KSB filed January 14, 2002.


 Item 2.  Changes in Securities and Use of Proceeds

 Not applicable


 Item 3.  Defaults upon Senior Securities

 None to report


 Item 4.   Submission of matters to a vote of security holders

 None to report


 Item 5.  Other Information

 None


 Item 6.  Exhibits and Reports on Form 8-K


 No Form 8-K Reports were filed during the quarter ended March 31, 2002.


<PAGE>
                               SIGNATURES

      In accordance with Section 13 or  15(d) of the Securities Exchange  Act
 of 1934, the Registrant caused this Report to be signed on its behalf by the
 undersigned, thereunto duly authorized.



                               AMERICAN HEALTHCHOICE, INC.

 Date: May 15, 2002            By:  /s/ Dr. J.W. Stucki
                               Dr. J.W. Stucki, Chief Executive
                               Officer and President

 Date: May 15, 2002            By:  /s/John C. Stuecheli
                               John C. Stuecheli, Chief Financial
                               Officer and Vice President - Finance
                               (Principal Financial and Accounting Officer)