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 December 31, 2001

   [   ]    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 December 31,  2001, 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 December 31, 2001




       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........................          7

          Item 2.  Changes in Securities and Use of Proceeds          7

          Item 3.  Defaults upon Senior Securities..........          7

          Item 4.  Submission of Matters to a Vote of
                   Security Holders ........................          7

          Item 5.  Other Information........................          7

          Item 6.  Exhibits and Reports on Form 8-K.........          7


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

<PAGE>

                        PART I. FINANCIAL INFORMATION

 Item 1. Financial Statements

                         AMERICAN HEALTHCHOICE, INC.
                               AND SUBSIDIARIES

                          CONSOLIDATED BALANCE SHEET
                                 (Unaudited)
                              DECEMBER 31, 2001

                                 ASSETS


 Current Assets:
 Cash                                                          $     15,533
 Accounts receivable, less allowance for doubtful
   accounts of $6,309,745                                         7,707,012
 Other current assets                                                89,405
                                                                -----------
      Total current assets                                        7,811,950

 Property and equipment, net                                        331,722
 Goodwill, net                                                    4,055,081
 Other assets                                                       205,320
                                                                -----------
      Total assets                                             $ 12,404,073
                                                                ===========

                  LIABILITIES AND STOCKHOLDERS' EQUITY

 Current Liabilities:
 Notes payable                                               $      976,726
 Capital lease obligation                                            15,000
 Current bankruptcy claims                                          795,500
 Accrued payroll and payroll taxes                                  266,267
 Accounts payable and accrued expenses                              299,456
                                                                -----------
      Total current liabilities                                   2,352,949

 Convertible debentures                                           1,310,400
 Long-term bankruptcy claims                                        380,650
                                                                -----------
      Total liabilities                                           4,043,999

 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                                            (12,988,835)
                                                                -----------
      Total stockholders' equity                                  8,360,074
                                                                -----------
      Total liabilities and stockholders' equity               $ 12,404,073
                                                                ===========


      See accompanying notes to these consolidated financial statements.

<PAGE>


                         AMERICAN HEALTHCHOICE, INC.
                               AND SUBSIDIARIES

                    CONSOLIDATED STATEMENTS OF OPERATIONS
                                 (Unaudited)


                                                 Three Months Ended December 31,
                                                 -------------------------------
                                                      2000             2001
                                                   ----------       ----------
 Net Patient Revenues                             $ 1,235,847      $ 1,164,701

 Operating Expenses:
   Compensation and benefits                          695,218          726,114
   Depreciation and amortization                      135,205           43,137
   General and administrative                         318,743          365,528
   Rent expense                                        92,839           94,962
                                                   ----------       ----------
      Total operating expenses                      1,242,005        1,229,741

 Other Income (Expense):
   Interest expense and other costs
     of borrowing                                     (26,063)         (20,288)
   Other income                                        50,000                -
                                                   ----------       ----------
      Total other income (expense)                     23,937          (20,288)
                                                   ----------       ----------
 Income (Loss) Before Taxes                            17,779          (85,328)

 Taxes                                                  6,000                -
                                                   ----------       ----------
 Net Income (Loss)                                $    11,779      $   (85,328)
                                                   ==========       ==========

 Basic and Diluted Net Income Per Share           $         -      $         -


 Weighted Average Common Shares Outstanding        80,121,057       93,825,766


      See accompanying notes to these consolidated financial statements.

<PAGE>

                             AMERICAN HEALTHCHOICE, INC.
                                  AND SUBSIDIARIES

                        CONSOLIDATED STATEMENTS OF CASH FLOWS
                                     (Unaudited)



                                                 Three Months Ended December 31,
                                                 -------------------------------
                                                      2000             2001
                                                   ----------       ----------
 Cash Flows From Operating Activities:
 Net income (loss)                                $    11,779      $   (85,328)
 Adjustments to reconcile net income to
   net cash used in operating activities:
   Allowance for doubtful accounts                    639,717          667,478
   Gain on cancellation of options                    (50,000)               -
   Employee compensation-stock                         21,900           21,900
   Depreciation and amortization                      135,205           43,136
 Change in operating assets and liabilities, net:
   Accounts receivable-trade                         (828,816)        (587,337)
   Other current assets                               (36,401)         (30,028)
   Accounts payable and accrued expenses               37,829          (32,735)
                                                   ----------       ----------
        Net cash used in operating activities         (68,787)          (2,914)

 Cash Flows From Investing Activities:
   Property and equipment                             (11,801)         (13,095)
                                                   ----------       ----------
        Net cash used in investing activities         (11,801)         (13,095)

 Cash Flows From Financing Activities:
   Proceeds from notes payable                         50,000                -
   Payments on notes payable and capital leases        (7,500)          (5,761)
                                                   ----------       ----------
        Net cash provided by (used in)
         financing activities                          42,500           (5,761)
                                                   ----------       ----------
 Net Decrease In Cash                                 (38,088)         (21,770)
 Cash At Beginning Of Year                             40,701           37,303
                                                   ----------       ----------
 Cash At End Of Period                            $     2,613      $    15,533
                                                   ==========       ==========
 Supplemental Disclosure Of Cash Flow Information:
   Income taxes paid                              $         -      $       610
   Interest paid                                        2,219              684

 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                -
   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  three months ended December 31, 2001  are
 not necessarily indicative of the results to be expected for the full  year.
 It is suggested that the December 31, 2001 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.
<PAGE>


 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 December 31, 2001 Compared to Three Months Ended December
 31, 2000

      Net Patient Revenues.   For the three months  ended December 31,  2001,
 net patient revenues decreased from $1,236,000  for the same period in  2000
 to  $1,165,000  in  2001.    Approximately   $43,000  of  the  decrease   is
 attributable to a 2%  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 2001 period compared to the 2000 period.

      Compensation and Benefits.   For the  three months  ended December  31,
 2001, compensation and benefits increased from $695,000 in 2000 to  $726,000
 in 2001.  The increase is  attributable to two additional physicians in  the
 2001 period and salary increases for clinic personnel.

      Depreciation and Amortization.  For the three months ended December 31,
 2001, depreciation  and  amortization decreased  from  $135,000 in  2000  to
 $43,000 in 2001.  The decrease was primarily due to amortization of goodwill
 in the  amount of  $97,000 in  the 2000  period.   The  2001 period  has  no
 goodwill amortization due to a change in accounting policy.

      General and Administrative.   For the three  months ended December  31,
 2001, general and administrative increased from $319,000 in 2000 to $366,000
 in 2001. Approximately $40,000  of the increase  was attributable to  higher
 marketing and advertising expenses in the Texas chiropractic clinics.

      Rent.  For  the three months  ended December 31,  2001, rent  increased
 from $93,000 in 2000 to $95,000 in 2001.  There were no facility changes  in
 the 2001 period compared to the 2000 period.


 Liquidity and Capital Resources

 For the three  months ended December  31, 2001, net  cash used in  operating
 activities was  $3,000  compared  to $69,000  for  the  three  months  ended
 December 31, 2000.  The decrease is primarily attributable to a decrease  in
 accounts receivable, net of allowance for  doubtful accounts, of $80,000  in
 2001 compared to an increase of $189,000 in the 2000 period.


 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

 None to report

<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: February 14, 2002       By:  /s/ Dr. J.W. Stucki
                               Dr. J.W. Stucki, Chief Executive
                               Officer and President

 Date: February 14, 2002       By:  /s/ John C. Stuecheli
                               John C. Stuecheli, Chief Financial
                               Officer and Vice President - Finance
                               (Principal Financial and Accounting Officer)