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, 2006

   [   ]    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.)

      7350 Hawk Road, Flower Mound, TX                         75022
  (Address of principal executive offices)                   (Zip Code)

                                (972) 538-0122
                         (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 [   ]

 Indicate by check mark whether the registrant is a shell company (as defined
 in Rule 12b-2 of the Exchange Act).

      Yes [   ]      No [ X ]

 As of March 31, 2006, there were outstanding 111,429,759 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, 2006



       Part I Financial Information

         Item 1.  Financial Statements

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

            Consolidated Statements of Operations ..........          3

            Consolidated Statements of Cash Flows ..........          4

            Notes to Consolidated Financial Statements .....          5


         Item 2.  Management's Discussion and Analysis or
                  Plan of Operation ........................          7


         Item 3.  Controls and Procedures ..................          9

       Part II Other Information

         Item 1.  Legal Proceedings ........................          9

         Item 2.  Unregistered Sales of Equity Securities
                  and Use of Proceeds ......................          9

         Item 3.  Defaults upon Senior Securities ..........          9

         Item 4.  Submission of Matters to a Vote of
                  Security Holders .........................          9

         Item 5.  Other Information ........................          9

         Item 6.  Exhibits .................................          9

         Signatures ........................................         10

<PAGE>

                        PART I. FINANCIAL INFORMATION

 Item 1. Financial Statements

                         AMERICAN HEALTHCHOICE, INC.
                               AND SUBSIDIARIES

                          CONSOLIDATED BALANCE SHEET
                                 (Unaudited)
                               MARCH 31, 2006

                                   ASSETS
 Current Assets:

 Cash                                                         $      5,144
 Accounts receivable gross                                      10,598,442
 Allowance for discount and uncollectible                       (3,804,120)
                                                               -----------
 Accounts receivable after allowance
   for discount and uncollectible                                6,794,322
 Accounts receivable attributable to affiliated clinics           (436,000)
                                                               -----------
 Accounts receivable net                                         6,358,322
 Other current assets                                              216,688
                                                               -----------
      Total current assets                                       6,580,154

 Property and equipment, net                                       453,783
 Goodwill, net                                                   1,348,570
                                                               -----------
      Total assets                                            $  8,382,507
                                                               ===========

                  LIABILITIES AND STOCKHOLDERS' EQUITY

 Current Liabilities:

 Notes payable and capital lease obligations                  $    210,051
 Acquisition note payable including accrued interest             1,158,497
 Bankruptcy claims of unsecured creditors                          210,000
 Obligations to related parties                                  1,543,538
 Accrued payroll taxes and penalties                               541,603
 Accounts payable and accrued expenses                             534,199
                                                               -----------
      Total current liabilities                                  4,197,888

 Convertible debenture                                             250,000
                                                               -----------
                Total liabilities                                4,447,888

 Commitments and Contingent Liabilities

 Stockholders' Equity:

 Preferred stock, $.001 par value; 5,000,000 shares
   authorized; 13,875 shares issued                              1,387,500
 Common stock, $.001 par value; 200,000,000 shares
   authorized; 111,429,759 shares issued and outstanding           111,430
 Additional paid-in capital                                     20,778,129
 Accumulated deficit                                           (18,342,440)
                                                               -----------
      Total stockholders' equity                                 3,934,619
                                                               -----------
      Total liabilities and stockholders' equity              $  8,382,507
                                                               ===========

      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,
                                    ----------------------------       --------------------------
                                       2005             2006              2005             2006
                                    ----------       ----------        ----------       ----------
 <S>                               <C>              <C>               <C>              <C>
 Revenues:
   Patient billings                $ 2,897,092      $ 2,675,525       $ 5,369,924      $ 5,518,748
   Allowance for discount
     on patient billings             1,284,888        1,027,355         2,332,056        2,110,736
                                    ----------       ----------        ----------       ----------
   Patient billings after
     allowance for discount          1,612,204        1,648,170         3,037,868        3,408,012
   Less patient billings
     attributable to affiliated
     clinic doctors                     77,053          126,000           154,108          251,000
                                    ----------       ----------        ----------       ----------
     Net patient billings retained   1,535,151        1,522,170         2,883,760        3,157,012
   Commissions on equipment sales       40,180                -            40,180                -
                                    ----------       ----------        ----------       ----------
     Net revenues                    1,575,331        1,522,170         2,923,940        3,157,012

 Operating Expenses:
   Compensation and benefits           736,127          718,178         1,398,273        1,465,789
   Marketing and advertising           293,835          273,635           567,147          592,174
   General and administrative          269,482          314,638           533,413          637,907
                                    ----------       ----------        ----------       ----------
     Total operating expenses        1,299,444        1,306,451         2,498,833        2,695,870

                                    ----------       ----------        ----------       ----------
 Operating income                      275,887          215,719           425,107          461,142

 Other Expenses:
   Interest expense                     20,362           40,000            41,139           77,116
   Other expense                        18,500                -            28,000                -
                                    ----------       ----------        ----------       ----------
     Total other expense                38,862           40,000            69,139           77,116

                                    ----------       ----------        ----------       ----------
 Net Income                            237,025          175,719           355,968          384,026

 Preferred stock dividend              (35,600)         (27,500)          (35,600)         (27,500)
                                    ----------       ----------        ----------       ----------
 Net Income Applicable to Common
   Stockholders                    $   201,425      $   148,219       $   320,368      $   356,526
                                    ==========       ==========        ==========       ==========
 Basic and Diluted Net Income
   Per Share                       $         -      $         -       $         -      $         -

 Preferred stock dividend                    -                -                 -                -

                                    ----------       ----------        ----------       ----------
 Basic and Diluted Net Income
   Per Share                       $         -      $         -       $         -      $         -
                                    ==========       ==========        ==========       ==========

 Weighted Average Common Shares    108,492,000      110,981,000       105,205,000      110,976,000


     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,
                                                    --------------------------
                                                        2005         2006
                                                      ---------    ---------
 Cash Flows From Operating Activities:
 Net income                                          $  355,968   $  384,026
 Adjustments to reconcile net income to net cash
   used in operating activities:
   Depreciation and amortization                         17,412       45,000
   Employee and director compensation-stock              40,500            -
   Other                                                 11,000            -

 Change in operating assets and liabilities, net:
   Accounts receivable-trade                           (579,096)    (733,420)
   Other current assets                                 (16,152)     (35,929)
   Accounts payable and accrued expenses                126,477      154,839
                                                      ---------    ---------
        Net cash used in operating activities           (43,891)    (185,484)

 Cash Flows From Investing Activities:
   Payments on note receivable                           20,000            -
   Property and equipment                               (18,491)     (29,948)
                                                      ---------    ---------
        Net cash provided by (used in)
          investing activities                            1,509      (29,948)

 Cash Flows From Financing Activities:
   Proceeds from notes payable                          109,000            -
   Proceeds from convertible debenture                        -      250,000
   Payments on notes payable and capital
     lease obligations                                  (61,584)     (38,023)
                                                      ---------    ---------
        Net cash provided by financing activities        47,416      211,977

                                                      ---------    ---------
 Net Increase (Decrease) In Cash                          5,034       (3,455)

 Cash At Beginning Of Year                                9,571        8,599
                                                      ---------    ---------
 Cash At End Of Period                               $   14,605   $    5,144
                                                      =========    =========
 Supplemental Disclosure Of Cash Flow Information:
   Income taxes paid                                 $        -   $        -
   Interest paid                                          4,000       45,000

 Supplemental Disclosure of Non-Cash Transactions:
   Issuance of stock in connection with
     executive employment contract                       25,000            -
   Purchase of equipment through issuance
     of capital leases                                   27,000            -
   Issuance of stock in connection with exercise
     of stock options                                    26,000            -
   Conversion of preferred stock into common stock      612,500            -
   Preferred stock dividend                              35,600       27,500


      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) is  a  medical
 sales and  service company  which consists  of a  parent company  and  three
 business divisions:  Medical Clinics,  RehabCo  and  TelmedCo.  The  company
 operates  13  company-owned  medical  clinics  in  Texas.  The  Company  has
 approximately 40 clinics in its Affiliated  Clinic Program located in  Texas
 and Tennessee.  Substantially all of the Company's revenues are derived from
 medical  services  provided  to  individuals  living  in the vicinity of the
 clinics.  TelmedCo was  formed  to  embrace  the revolutionary technology of
 Telemedicine  and  to provide second opinions  to patients  of  the  Medical
 Clinics Division.  RehabCo  sells  and  recognizes commission revenue on the
 sale of medical equipment.


 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, 2006 are  not
 necessarily indicative of the results  to be expected for the full year.  It
 is suggested  that  the  March 31, 2006  financial  information be  read  in
 conjunction with the financial statements and notes thereto included in  the
 Company's Form 10-KSB dated September 30, 2005.


 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 Billings  Retained- Revenue is  recognized at  the time  medical
 services are provided to patients treated at the Company's company-owned and
 affiliated clinics.  The  allowance for discount on  patient billings is  an
 accounting estimate of  the anticipated discounts  on patient billings  upon
 settlement and  anticipated  write-off  of patient  billings  for  which  no
 settlement is received by the treating clinic.  Allowances are maintained at
 levels considered appropriate by Management based upon historical experience
 and other factors deemed  pertinent.  Patient  billings after allowance  for
 discount are  the anticipated  reimbursement for  medical services  provided
 during the reported period of operations.  Based on the indicators discussed
 in Emerging Issues Task  Force (EITF) 99-19: "Reporting  Revenue Gross as  a
 Principal versus  Net  as an  Agent",  the  Company has  elected  to  reduce
 affiliated clinic  patient billings  after allowance  for discounts  by  the
 amount attributable  to  medical  services  provided  by  affiliated  clinic
 doctors.  Under the terms of  the agreement with the affiliated doctor,  the
 Company pays the doctor between  40% and 50%  of collections  at the time of
 settlement  as  compensation  for medical  services.  Net  patient  billings
 retained are the anticipated reimbursement for medical services provided  as
 a principal  for  company-owned  clinics and  as  an  agent  for  affiliated
 clinics.

 Equipment  Rental  and  Sales-  Revenue  is  recognized  when  equipment  is
 installed at  the customer  site for  sales  and the  month of  service  for
 equipment rentals.

 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  adopted the  provisions  of  Financial Accounting
 Standard ("FAS")  No. 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.

 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.

 Reclassifications - Certain  reclassifications have been  made to the  prior
 period financial statements in order for  them to be in conformity with  the
 current period  presentation.  These  reclassifications  had  no  effect  on
 stockholders' equity or net income as previously reported


 4.   Convertible Debenture

 On December 29, 2005, the Company  entered into four agreements with  Golden
 Gate Investors, Inc. ("GGI"): (i) 4.75% Convertible Debenture ("Debenture"),
 (ii) Warrant to Purchase Common Stock ("Warrant"), (iii) Registration Rights
 Agreement and (iv) Securities Purchase  Agreement.  The Debenture  Principal
 Amount  is  $300,000  and  has a  maturity  date  of December 29, 2008.  The
 Warrants give GGI the right to purchase 3,000,000 shares of common stock  at
 a price of $1.00 per share.

 On January 4, 2006,  an addendum was executed,  which reduced the  debenture
 principal amount to $30,000 and revised the exercise price of the Warrant to
 $1.09.   On  April 28, 2006,  an  addendum  was  executed  to  increase  the
 debenture principal amount to $1,000,000 and cancel the Warrant.

 On  February 2, 2006 the Company  filed a Form  SB-2 Registration  Statement
 ("SB-2") with the Securities and Exchange  Commission relating to the  offer
 and sale of securities included  in the agreements with  GGI.  On  April 28,
 2006, the Company withdrew the SB-2 filed  February 2, 2006 and filed a  new
 SB-2, which reflected the terms of the Addendum dated April 28, 2006.

 On January 11, 2006, the Company received an advance on the Debenture in the
 amount of $250,000 and additional $200,000  on May 2, 2006 after filing  the
 SB-2 on April 28, 2006.  The remaining $550,000 will be wired to the Company
 within 5 days of the SB-2 becoming effective.

 The Debenture has  a principal amount  of $1,000,000 and  bears interest  at
 4.75%, matures three  years from the  date of issuance,  and is  convertible
 into common stock.  The Debenture  is convertible into the number of  shares
 of common stock equal to the dollar amount of the conversion divided by  the
 lesser of (i) $0.75,  (ii) eighty five  percent of the  average of the  five
 lowest volume weighted average  prices during the  twenty (20) trading  days
 prior to the conversion or (iii) eighty five percent of the volume  weighted
 average price on the trading  day prior to the  conversion.  GGI has  agreed
 that, beginning  in the  first full  calendar month  after the  registration
 statement is declared effective, it shall  convert at least 3%, but no  more
 than 30%, of the  $1,000,000 principal amount  per calendar month,  provided
 that the common stock is available, registered and freely tradable.  In  the
 event that the volume weighted average price is less than $.075, the Company
 will have the option to pay the  amount the debenture conversion in cash  at
 112% rather than  have the debenture  converted into common  stock.  If  the
 Company elects to pay the debenture in cash, GGI may withdraw its conversion
 notice.  The Company may reduce the monthly maximum conversion from  30%  to
 10% for any three calendar months (but not two consecutive months) by giving
 notice of such election to GGI at least ten business days prior to the first
 day of the applicable calendar month.

 The Form SB-2 Registration Statement filed April 28, 2006 seeks to  register
 for resale by  the selling  stockholder up  to 56,470,588  shares of  common
 stock underlying the Debenture.  Based on a price per share of $0.0625,  the
 maximum aggregate offering price would be approximately $3,500,000.

 Since the Debenture is convertible at a discount to the market price of  the
 common stock at the  conversion date, the Company  is required to  calculate
 the intrinsic value of the beneficial  conversion feature at the  commitment
 date using  facts available  at that  date per  EITF 98-5:  "Accounting  for
 Convertible Securities with Beneficial  Conversion Features or  Contingently
 Adjustable Conversion Ratios".  The Company  has determined  the  commitment
 date will be the date the  Form SB-2 Registration  Statement filed April 28,
 2006 becomes effective.  If the Registration Statement had become  effective
 May 1, 2006, the fair value would have been $0.0625 per share and the  share
 price for the  preceding 20 trading  days would have  been $0.06 per  share.
 Applying a  15%  discount  the  conversion  price would  have  been  $0.051,
 resulting in  an intrinsic  value  of  $225,500.  The Company  would  record
 interest expense of $225,500 and increase additional  paid-in capital by  an
 equal amount.  If  the Company  elects  in  the future  to pay  a  debenture
 conversion in cash, it would reduce  interest expense for the  proportionate
 amount of the debenture principal.


 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, 2006  Compared to Three Months Ended  March 31,
 2005

      Patient Billings.  For the three  months ended  March 31, 2006, patient
 billings decreased from $2,897,000 in 2005  to $2,676,000  in 2006.  Patient
 billings at  company-owned clinics  decreased $408,000  due primarily  to  a
 decrease in  personal injury  cases at  the  clinics.  Patient  billings  at
 affiliated clinics increased from $216,000 in  2005 to $403,000 in 2006  due
 to an  increase  in the number  of clinics  in the program  from  15  to  40
 clinics.

      Allowance for Discount on Patient Billings.  For the three months ended
 March 31, 2006, allowance for discount on billings decreased from $1,285,000
 in  2005 to $1,027,000 in 2006.  $84,000 is attributable to the decrease  in
 patient  billings  in  the  amount  of  $221,000  and  a  $174,000  downward
 adjustment in the allowance as a percentage of patient billings from  44% in
 the 2005 period  to 38%  in the  2006  period.  The  adjustment reflects  an
 increase in  the  collection  percentage  on cases that were settled in 2006
 compared to 2005 and a higher overall collection percentage  for  affiliated
 and medical clinic billings.

      Patient Billings Attributable  to Affiliated Clinic  Doctors.  For  the
 three months  ended  March 31,  2006,  billings attributable  to  affiliated
 doctors increased $49,000 compared to 2005 due to an increase in the  number
 of doctors in the affiliated clinic program.

      Compensation and Benefits.  For the three months ended  March 31, 2006,
 compensation and benefits  decreased from $736,000  in 2005 to  $718,000  in
 2006.  $51,000 of the decrease is attributable  to compensation and benefits
 for RehabCo in 2005 with no comparable  expense in 2006 offset by a  $44,000
 increase attributable to compensation and benefits for two former affiliated
 clinics, which were acquired in August 2005. The Company has hired mid-level
 management to control revenue growth.

      Marketing and Advertising.  For the three months ended  March 31, 2006,
 marketing and advertising decreased from $294,000 in 2005 to $274,000 in the
 2006 period.  The  decrease is attributable to  a corresponding decrease  in
 patient billings for personal injury cases.

      General and Administrative.  For the three months ended March 31, 2006,
 general  and  administrative  increased  from  $269,000 in  2005 to $315,000
 in  2006.   Facility  expenses  including  rent   and   utilities  increased
 approximately $25,000 in the 2006 period  in connection with the  relocation
 of the  corporate  office  in  January  2006  and  the  acquisition  of  two
 affiliated  clinics  in  August  2005.  In  addition,  depreciation  expense
 increased $23,000 in  the 2006 period  due primarily to  the acquisition  of
 spinal decompression equipment.

 Six Months Ended March 31, 2006 Compared to Six Months Ended March 31, 2005

      Patient Billings.  For the  six  months  ended  March 31, 2006, patient
 billings increased from $5,370,000 in 2005  to $5,519,000  in 2006.  Patient
 billings at  company-owned clinics  decreased $348,000  due primarily  to  a
 decrease in  personal injury  cases at  the  clinics.  Patient  billings  at
 affiliated clinics increased from $384,000 in  2005 to $881,000 in 2006  due
 to an  increase in  the number  of clinics  in  the program  from 15  to  40
 clinics.

      Allowance for Discount on Patient Billings.  For the six  months  ended
 March 31, 2006, allowance for discount on billings decreased from $2,332,000
 in 2005 to $2,111,000 in 2006.  $57,000  is attributable to the increase  in
 patient billings in  the amount of  $149,000 offset by  a $278,000  downward
 adjustment in the allowance as a percentage of patient billings from  43% in
 the 2005 period  to 38%  in the  2006  period.  The  adjustment reflects  an
 increase in  the  collection  percentage  on cases that were settled in 2006
 compared to 2005 and a higher overall collection percentage  for  affiliated
 and medical clinic billings.

      Patient Billings Attributable  to Affiliated Clinic  Doctors.  For  the
 six months ended March 31, 2006, billings attributable to affiliated doctors
 increased $97,000  compared to  2005 due  to an  increase in  the number  of
 doctors in the affiliated clinic program.

      Compensation and Benefits.  For  the  six months  ended March 31, 2006,
 compensation and benefits increased from $1,398,000 in 2005 to $1,466,000 in
 2006.  Compensation and benefits at company-owned clinics increased $150,000
 with $88,000  attributable  to  compensation and  benefits  for  two  former
 affiliated clinics,  which  were acquired  in  August 2005  and  $60,000  in
 compensation  earned  by  doctors for higher clinic profits in 2006 compared
 to  2005.  The increase  in  company-owned  expense  was offset by a $51,000
 decrease attributable to compensation and benefits  for RehabCo in 2005 with
 no comparable expense in 2006.

      Marketing and Advertising.  For the  six months  ended  March 31, 2006,
 marketing and advertising increased from $567,000 in 2005 to $592,000 in the
 2006 period.  The  increase is attributable to  a corresponding increase  in
 patient billings for personal injury cases.

      General and Administrative.  For the  six months ended March 31,  2006,
 general  and  administrative  increased  from  $533,000 in  2005 to $638,000
 in  2006.   Facility  expenses  including  rent   and   utilities  increased
 approximately $50,000 in the 2006 period  in connection with the  relocation
 of  the  corporate  office  in  January 2006  and  the  acquisition  of  two
 affiliated  clinics  in  August  2005.  In  addition,  depreciation  expense
 increased $28,000 in  the 2006 period  due primarily to  the acquisition  of
 spinal decompression equipment.


 Liquidity and Capital Resources

 For  the  six  months  ended  March 31, 2006,  net cash  used  in  operating
 activities was $185,000.  The primary reasons for the difference of $569,000
 between net income of $384,000 and net cash provided by operating activities
 is a  $733,000 increase  in net  accounts receivable  offset by  a  $155,000
 increase in accounts payable and accrued expenses.

 Collections on  patient  billings  increased  from  $2,365,000  in  2005  to
 $2,622,000  in 2006.  The Company  forecast for the  six month period  ended
 March 31, 2006  was $2,900,000.  The shortfall  was due  to  fewer  personal
 injury cases  being settled  than had  been forecasted  based on  historical
 data.  However, the  average collections for settled  cases were within  the
 forecast range.  After discussions  with attorneys, Management believes  the
 shortfall was due  to an  increase in the  number of  personal injury  cases
 being sent  into  litigation  by  the  attorneys  due  lower  than  expected
 settlement offers  by the  insurance  companies.  The  Company is  currently
 evaluating the impact on cash flow  but still expects to meet its  financial
 obligations due to an anticipated increase  in the total number of  personal
 injury cases scheduled for settlement.

 As disclosed  in Note  4 Convertible  Debenture,  the Company  was  advanced
 $250,000 on January 11, 2006 and $200,000 on May 2, 20006 from the  proceeds
 of the $1,000,000 Convertible Debenture Principal.  The Company will receive
 $550,000 within 5 days of the  effective date of the Form SB-2  Registration
 Statement filed with  the Securities and  Exchange Commission  on  April 28,
 2006.  $115,000 of the $450,000 advance to date was applied to 2005  payroll
 taxes due the IRS and the remainder of $335,000 to working capital.

 As of March 31, 2006, the Company was current on 2006 payroll taxes and owed
 the IRS for 2004 payroll trust fund  taxes in the amount of $426,000,  which
 it intends to pay from the $550,000 remaining proceeds from the  Convertible
 Debenture  no  later  than  June  15,  2006.   The  IRS  has  also  assessed
 approximately $390,000 in penalties and interest  for late payment of  taxes
 for  the  period  1999  to 2004.  The  Company believes it can  negotiate  a
 reduction with  the IRS  and has  established  a reserve  in the  amount  of
 $160,000 as of March 31, 2006.  If the Company is required to pay more, then
 there will be an additional charge to the financial statements.

 Management continues  to pursue  a loan  using  the accounts  receivable  as
 collateral and  expects to  receive multiple  proposals within  the  next 30
 days.  The proceeds  from  the  loan should  be in  a range  of $800,000  to
 $1,000,000 and will be used to fund acquisitions.


 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.


 Item 3.  Controls and Procedures

 Under  the  supervision  and  with   the  participation  of  the   Company's
 management, including the  Company's Chief Executive  Officer and  Principal
 Financial and Accounting Officer, the Company performed an evaluation of the
 effectiveness of  the  design  and operation  of  the  Company's  disclosure
 controls and procedures (as defined in  Rules 13a-15(e) and 15d-15(e)  under
 the  Securities  Exchange Act)  as of  March 31, 2006.  There  are  inherent
 limitations to the effectiveness  of any system  of disclosure controls  and
 procedures.  Accordingly, even effective disclosure controls and  procedures
 can provide only reasonable assurance of achieving their control objectives.
 Based upon  that  evaluation,  the Chief  Executive  Officer  and  Principal
 Financial and  Accounting Officer  concluded that  the Company's  disclosure
 controls and procedures are effective in ensuring that material  information
 relating to the Company and its  consolidated subsidiaries will be  received
 by them from others within those entities (particularly during the period in
 which this quarterly report was being prepared).

 There were  no changes  in the  Company's internal  controls over  financial
 reporting that  have  materially  affected,  or  are  reasonably  likely  to
 materially affect, the Company's internal control over financial reporting.


                         PART II.  OTHER INFORMATION

 Item 1.  Legal Proceedings

 There have been no material events related to legal proceedings.


 Item 2.  Unregistered Sales of Equity 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

 31.1     Certification pursuant to Section 302 of the Sarbanes-Oxley Act of
          2002 for Dr. J. W. Stucki, President and Chief Executive Officer

 31.2     Certification pursuant to Section 302 of the Sarbanes-Oxley Act of
          2002 for John C. Stuecheli, Vice President and Chief Financial
          Officer

 32.1     Certification pursuant to 18 U.S.C Section 1350, as adopted
          pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 for
          Dr. J.W. Stucki, President and Chief Executive Officer

 32.2     Certification pursuant to 18 U.S.C Section 1350, as adopted
          pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 for
          John C. Stuecheli, Vice President and Chief Financial Officer


                               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, 2006            By:  /s/ Dr. J.W. Stucki
                               Dr. J.W. Stucki, Chief Executive
                               Officer and President

 Date: May 15, 2006            By:  /s/John C. Stuecheli
                               John C. Stuecheli, Chief Financial
                               Officer and Vice President - Finance
                               (Principal Financial and Accounting Officer)