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, 2004

  [   ]     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.)

      2221 Justin Road, Suite 119-154, Flower Mound, TX        75028
          (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 [   ]

      As of December 31, 2004, there were outstanding 102,205,259 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, 2004



       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 ........................          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 .........          8


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

<PAGE>

                        PART I. FINANCIAL INFORMATION

 Item 1. Financial Statements

                         AMERICAN HEALTHCHOICE, INC.
                               AND SUBSIDIARIES

                          CONSOLIDATED BALANCE SHEET
                                 (Unaudited)
                              DECEMBER 31, 2004

                                   ASSETS
 Current Assets:
 Cash                                                         $     23,446
 Accounts receivable, less allowance for doubtful
   accounts of $ 5,221,230                                       4,947,186
 Notes receivable                                                  139,244
 Other current assets                                               61,676
                                                               -----------
      Total current assets                                       5,171,552

 Property and equipment, net                                       415,599
 Goodwill, net                                                   1,348,570
                                                               -----------
      Total assets                                            $  6,935,721
                                                               ===========

                  LIABILITIES AND STOCKHOLDERS' EQUITY

 Current Liabilities:
 Notes payable and capital lease obligations                  $    199,002
 Acquisition note payable including accrued interest             1,127,500
 Bankruptcy claims of unsecured creditors                          343,801
 Bankruptcy claims of related parties                              469,406
 Accrued payroll taxes and penalties                               599,796
 Compensation due executive officer                                534,481
 Accrued expenses                                                  332,104
 Accounts payable                                                  331,154
                                                               -----------
      Total current liabilities                                  3,937,244

 Commitments and Contingent Liabilities

 Stockholders' Equity:
 Preferred stock, $.001 par value; 5,000,000 shares
   authorized; 20,000 shares issued and outstanding              2,000,000
 Common stock, $.001 par value; 200,000,000 shares
   authorized; 102,205,259 shares issued and outstanding           102,205
 Options to acquire common stock                                     2,000
 Additional paid-in capital                                     20,020,879
 Accumulated deficit                                           (19,126,607)
                                                               -----------
      Total stockholders' equity                                 2,998,477
                                                               -----------
      Total liabilities and stockholders' equity              $  6,935,721
                                                               ===========

      See accompanying notes to these consolidated financial statements.

<PAGE>
                         AMERICAN HEALTHCHOICE, INC.
                               AND SUBSIDIARIES

                    CONSOLIDATED STATEMENTS OF OPERATIONS
                                 (Unaudited)


                                                 Three Months Ended December 31,
                                                 -------------------------------
                                                      2003             2004
                                                   ----------       ----------
 Revenues:
   Patient billings                               $ 2,163,103      $ 2,472,832
   Allowance for discount on billings                 993,628        1,047,168
                                                   ----------       ----------
     Net revenues                                   1,169,475        1,425,664

 Operating Expenses:
   Compensation and benefits                          652,156          662,146
   Marketing and advertising                          214,758          273,312
   General and administrative                         178,959          263,931
   Rent                                                80,577           77,055
                                                   ----------       ----------
     Total operating expenses                       1,126,450        1,276,444

                                                   ----------       ----------
 Operating income                                      43,025          149,220

 Other Expenses:
   Interest expense                                    18,624           20,777
   Other expense                                            -            9,500
                                                   ----------       ----------
      Total other expense                              18,624           30,277

                                                   ----------       ----------
 Net Income                                       $    24,401      $   118,943
                                                   ==========       ==========

 Basic and Diluted Net Income Per Share           $         -      $         -

 Weighted Average Common Shares Outstanding       103,100,000      101,900,000


      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,
                                                 -------------------------------
                                                      2003             2004
                                                   ----------       ----------
 Cash Flows From Operating Activities:
 Net income                                       $    24,401      $   118,943
 Adjustments to reconcile net income to net
   cash provided by operating activities:
   Depreciation and amortization                        7,035           16,644
   Other                                                    -           26,750

 Change in operating assets and liabilities, net:
   Accounts receivable-trade                         (198,962)        (265,649)
   Other current assets                                (2,972)           3,678
   Accounts payable and accrued expenses              175,306          144,889
                                                   ----------       ----------
     Net cash provided by operating activities          4,808           45,255

 Cash Flows From Investing Activities:
   Payments on note receivable                              -            8,000
   Property and equipment                                   -           (9,414)
                                                   ----------       ----------
     Net cash used in investing activities                  -           (1,414)

 Cash Flows From Financing Activities:
   Proceeds from notes payable                          1,460                -
   Payments on notes payable and capital leases             -          (29,966)
                                                   ----------       ----------
     Net cash provided by (used in)
       financing activities                             1,460          (29,966)

                                                   ----------       ----------
 Net Increase In Cash                                   6,268           13,875
 Cash At Beginning Of Year                             21,071            9,571
                                                   ----------       ----------
 Cash At End Of Period                            $    27,339      $    23,446
                                                   ==========       ==========

 Supplemental Disclosure Of Cash Flow Information:
   Income taxes paid                              $         -      $         -
   Interest paid                                        2,000            4,000

 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                         -           14,000

      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 twelve owned clinics providing medical, physical therapy,
 and  chiropractic  services in  San Antonio,  McAllen, Laredo,  San  Benito,
 Corpus Christi and Houston, Texas.  In addition, the Company has 15  clinics
 in  its  Affiliated  Clinic  Program.  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, 2004  are
 not necessarily indicative of the results to be expected for the full  year.
 It is suggested that the December 31, 2004 financial information be read  in
 conjunction with the financial statements and notes thereto included in  the
 Company's Form 10-KSB dated September 30, 2004.


 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 personal injury
 claims and claims filed on major medical policies and worker's  compensation
 policies.   Allowances  for  discounts  on  current  services  provided  are
 recognized in  the periods  the  related  revenue  is  earned.  Net  patient
 revenues are reported  at the  estimated realizable  amounts from  patients,
 third-party payors and others for services  rendered.  Net patient  revenues
 are reported at the estimated realizeable amount from patients, third  party
 payors  and  others for  services rendered.  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.

 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.


 4.Stockholders' Equity

 During the three month  period ended December 30,  2004, the Company  issued
 360,000 shares of  common stock  in connection  with the  exercise of  stock
 options  and  issued  1,250,000  shares  in  connection  with  an  executive
 employment contract.


 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, 2004 Compared to Three Months Ended
 December 31, 2003

      Patient Billings.   For  the  three  months ended  December  31,  2004,
 patient billings increased from  $2,163,000 in 2003  to $2,473,000 in  2004.
 Patient billings at  Texas owned  clinics and  affiliated clinics  increased
 $83,000  and  $173,000,  respectively.  The  2004  period  included  patient
 billings for  the  DRX  9000  System  in the  amount  of  $209,000  with  no
 comparable amount in the 2003 period.  The 2003 period included $160,000  in
 billings for the New  Orleans clinic with no  comparable amount in the  2004
 period due to the sale of the clinic in September 2004.

      Allowance  for  Discount  on  Billings.  For  the  three  months  ended
 December 31,  2004,  allowance  for  discount  on  billings  increased  from
 $994,000 in 2003  to $1,047,000 in  2004.  $133,000  is attributable to  the
 increase in patient billings in the amount of $310,000 offset by an  $80,000
 downward adjustment in  the allowance as  a percentage  of patient  billings
 from  46% in  the 2003  period to 42%  in the  2004 period.  The  adjustment
 reflects an increase in the collection percentage on cases that were settled
 by patient's  attorneys  in 2004  compared  to  2003 and  a  higher  overall
 collection percentage for affiliated and medical clinic billings.

      Compensation and Benefits.   For the  three months  ended December  31,
 2004, compensation and benefits increased from $652,000 in 2003 to  $662,000
 in 2004.  Compensation  and benefits at Texas  clinics and corporate  office
 increased  $59,000   and   $26,000,  respectively,  offset  by  $75,000   in
 compensation and benefits for the New Orleans clinic in the 2003 period with
 no  comparable amount in  the 2004 period.  The number  of employees at  the
 Texas clinics and corporate office was unchanged in 2004 compared to 2003.

      Marketing and Advertising.   For the  three months  ended December  31,
 2004, marketing and advertising increased from $215,000 in 2003 to  $273,000
 in the 2004 period.  The patient billings  for the 2004 period had a  higher
 percentage of personal injury cases, which carry higher marketing  expenses.
 As discussed above under allowance for discount on billings, the  collection
 percentage on personal  injury cases is  greater than  major medical  cases,
 which  partially  mitigates  the higher  marketing  expense.  Marketing  and
 advertising attributable to the DRX 9000 System was not material in the 2004
 period and  the New  Orleans clinic  had no  marketing expense  in the  2003
 period.

      General and Administrative.   For the three  months ended December  31,
 2004, general and administrative increased from $179,000 in 2003 to $264,000
 in  2004.    Due  to  the  related  increase  in  revenue,  management  fees
 attributable to patient billings from affiliated clinics were $66,000 in the
 2004 period compared to $20,000 in the 2003 period.  Legal and  professional
 expense  increased  from  $22,000  in  the  2003  period  to  $39,000 in the
 2004  period  due primarily  to investor  relation  expenses.  In  addition,
 depreciation expense increased from $7,000 in the 2003 period to $17,000  in
 the 2004 period due primarily to acquisition of clinic equipment.

      Rent.  For the three months  ended December 31, 2004, rent was  $77,000
 compared to $81,000  in the 2003  period.  The  decrease is attributable  to
 rent for the New Orleans clinic.


 Liquidity and Capital Resources

 For the three months ended December 31, 2004, net cash provided by operating
 activities was  $45,000  compared  to $5,000  for  the  three  months  ended
 December 31, 2003.  There were no significant differences in the 2004 period
 compared to the 2003 period.

 During the  three  months  ended December  31,  2004,  cash  generated  from
 operations was not sufficient to  meet current obligations by  approximately
 $100,000.  During this period, the Company was able to reduce the delinquent
 taxes due the IRS by $15,000 to a balance of $600,000 at  December 31, 2004.
 In January 2005, an additional payment of $70,000 was made  to the IRS.  The
 Company is  actively  pursuing  new  financing in  the  form  of  equity  or
 convertible debt.  The proceeds will be used to pay remaining payroll  taxes
 and reduce  the  $837,500  principal balance  on the  acquisition  note  due
 December 31, 2005.  Collections  of  patient billings for  the three  months
 should be adequate to meet current obligations.

      In addition, the Company is pursuing funding to acquire an initial  six
 DRX 9000 systems to  be placed under  partnership agreements in  established
 clinics owned  and/or operated  by  individual  doctors.  The Company  would
 provide marketing and financing,  and the doctor  would treat the  patients.
 The doctor would be charged a fee for each patient and this fee would  cover
 the cost of marketing and financing plus a profit margin.  If the Company is
 successful  and  finalizes  an  agreement,  Management  anticipates  placing
 approximately six systems per quarter.  The location of the systems could be
 anywhere in the United States.


 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.


 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

 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

 No Form 8-K Reports were filed during the quarter ended December 31, 2004.

<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 17, 2005       By:  /s/ Dr. J.W. Stucki
                               Dr. J.W. Stucki, Chief Executive
                               Officer and President

 Date: February 17, 2005       By:  /s/John C. Stuecheli
                               John C. Stuecheli, Chief Financial Officer and
                               Vice President - Finance
                               (Principal Financial and Accounting Officer)