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, 2003

   [   ]    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, 2003, there were outstanding 103,100,766 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, 2003



       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 .........          8

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

<PAGE>

                        PART I. FINANCIAL INFORMATION

 Item 1. Financial Statements

                         AMERICAN HEALTHCHOICE, INC.
                               AND SUBSIDIARIES

                          CONSOLIDATED BALANCE SHEET
                                 (Unaudited)
                              DECEMBER 31, 2003

                                   ASSETS
 Current Assets:
 Cash                                                         $     27,339
 Accounts receivable, less allowance for doubtful
   accounts of $5,191,847                                        6,016,402
 Other current assets                                               60,732
                                                               -----------
      Total current assets                                       6,104,473

 Property and equipment, net                                       343,406
 Goodwill, net                                                   1,348,570
                                                               -----------
      Total assets                                            $  7,796,449
                                                               ===========

                  LIABILITIES AND STOCKHOLDERS' EQUITY

 Current Liabilities:
 Notes payable and capital lease obligation                   $    973,936
 Convertible debentures                                          1,310,400
 Bankruptcy claims of unsecured creditors                          528,500
 Bankruptcy claims of related parties                              625,422
 Accrued payroll and payroll taxes                                 859,133
 Accounts payable and accrued expenses                             441,870
                                                               -----------
      Total current liabilities                                  4,739,261


 Commitments and Contingent Liabilities                                  _

 Stockholders' Equity:
 Preferred stock, $.001 par value; 5,000,000 shares
   authorized; none issued                                               -
 Common stock, $.001 par value; 115,000,000 shares
   authorized; 103,100,766 shares issued and outstanding           103,100
 Options to acquire common stock                                     8,000
 Additional paid-in capital                                     20,669,684
 Accumulated deficit                                           (17,723,596)
                                                               -----------
      Total stockholders' equity                                 3,057,188
                                                               -----------
      Total liabilities and stockholders' equity              $  7,796,449
                                                               ===========

      See accompanying notes to these consolidated financial statements.

<PAGE>

                         AMERICAN HEALTHCHOICE, INC.
                               AND SUBSIDIARIES

                    CONSOLIDATED STATEMENTS OF OPERATIONS
                                 (Unaudited)


                                                 Three Months Ended December 31,
                                                 -------------------------------
                                                      2002             2003
                                                   ----------       ----------
 Revenues:
   Patient billings                               $ 2,104,070      $ 2,163,103
   Allowance for discount on billings                 929,525          993,628
                                                   ----------       ----------
     Net revenues                                   1,174,545        1,169,475

 Operating Expenses:
   Compensation and benefits                          668,515          652,156
   Depreciation and amortization                        7,782            7,035
   General and administrative                         382,158          386,682
   Rent                                                95,437           80,577
                                                   ----------       ----------
     Total operating expenses                       1,153,892        1,126,450

 Other Income (Expense):
   Interest expense and other costs of borrowing      (19,504)         (18,624)
                                                   ----------       ----------
     Total other expense                              (19,504)         (18,624)

                                                   ----------       ----------
 Net Income                                       $     1,149      $    24,401
                                                   ==========       ==========

 Basic and Diluted Net Income Per Share           $         -      $         -

 Weighted Average Common Shares Outstanding        88,100,766      103,100,766


      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,
                                                 -------------------------------
                                                      2002             2003
                                                   ----------       ----------
 Cash Flows From Operating Activities:
 Net income                                       $     1,149      $    24,401
 Adjustments to reconcile net income to net
   cash provided by operating activities:
   Allowance for doubtful accounts                    929,525          993,628
   Employee compensation-stock                         12,000                -
   Depreciation and amortization                        7,782            7,035
 Change in operating assets and liabilities, net:
   Accounts receivable-trade                       (1,004,279)      (1,192,590)
   Other current assets                                 5,508           (2,972)
   Accounts payable and accrued expenses               50,635          175,306
                                                   ----------       ----------
     Net cash provided by operating activities          2,320            4,808

 Cash Flows From Investing Activities:
   Property and equipment                              (2,089)               -
                                                   ----------       ----------
     Net cash used in investing activities             (2,089)               -

 Cash Flows From Financing Activities:
   Proceeds from notes payable                          5,000            1,460
   Payments on notes payable and capital leases          (359)               -
                                                   ----------       ----------
     Net cash provided by financing activities          4,641            1,460
                                                   ----------       ----------
 Net Increase In Cash                                   4,872            6,268
 Cash At Beginning Of Year                             11,296           21,071
                                                   ----------       ----------
 Cash At End Of Period                            $    16,168      $    27,339
                                                   ==========       ==========

 Supplemental Disclosure Of Cash Flow Information:
   Income taxes paid                              $     2,000      $         -
   Interest paid                                          500            2,000

      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 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, 2003  are
 not necessarily indicative of the results to be expected for the full  year.
 It is suggested that the December 31, 2003 financial information be read  in
 conjunction with the financial statements and notes thereto included in  the
 Company's Form 10-KSB dated September 30, 2003.


 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.

 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.   Convertible Debentures

 As part  of  the Plan  of  Reorganization  confirmed by  the  United  States
 Bankruptcy Court on  August 8,  2000 and  effective September  9, 2000,  the
 holders of  the  August  1998 Regulation  D  Debentures  agreed  to  replace
 debentures in the  principal amount of  $3,385,000 and  accrued interest  of
 $312,000 as of October 19, 1999 with new three year debentures dated  August
 24, 2000.  The issuance of these new debentures replaced and superceded  any
 prior debt obligation  of the  Company to the  holders of  the Regulation  D
 debentures.  The new debentures were  convertible into 20,475,000 shares  of
 common stock at  the holder's  option at  any time  during the  term of  the
 debentures.

 Per the new debenture agreement any  portion of the debentures which  remain
 outstanding as of the August 24,  2003 maturity date would be  automatically
 converted into shares of common stock.  As of the maturity date, there  were
 7,258,493 unconverted shares  with a principal  amount of  $1,310,400.   The
 Company sent a  notice of  conversion to the  escrow trustee  on August  25,
 2003.  As of February 13,  2004 the escrow trustee  has not sent notices  of
 conversion to the Company's transfer agent.  Per the agreement, the  Company
 can not cause  the unconverted portion  to be  automatically converted  into
 common shares.  Therefore  the Company  continues  to  report the  principal
 amount  on the balance sheet  as a current liability until the proper notice
 is sent to the transfer agent.  If the notice is not sent by March 31, 2004,
 the Company may pursue legal remedies.


 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, 2003 Compared to Three Months Ended December
 31, 2002

      Patient Billings.    For the  three  months ended  December  31,  2003,
 patient billings increased from  $2,104,000 in 2002  to $2,163,000 in  2003.
 The increase is  attributable to  an increase  in patient  billings for  the
 clinics acquired in  September 2000 in  the amount of  $224,000 offset by  a
 decrease in patient billings  for personal injury cases  in the San  Antonio
 and Houston clinics of approximately $144,000.

      Allowance for  Discount  on  Billings.   For  the  three  months  ended
 December 31,  2003,  allowance  for  discount  on  billings  increased  from
 $929,000 for the same period in 2002 to  $994,000 in 2003.  The increase  is
 attributable to an  upward adjustment in  the allowance as  a percentage  of
 patient billings from 44% in the 2002 period to 46% in the 2003 period.  The
 adjustment reflects a decrease  in the collection  percentage on cases  that
 were settled by patient's attorneys in 2003 compared to 2002.

      Compensation and Benefits.   For the  three months  ended December  31,
 2003, compensation and benefits decreased from $669,000 in 2002 to  $652,000
 in 2003.  The number  of employees at the  clinics and corporate office  was
 unchanged in 2003 compared to 2002.

      Depreciation and Amortization.  For the three months ended December 31,
 2003, depreciation and  amortization was $7,000  compared to  $8,000 in  the
 2002 period.  There were no changes  in clinic equipment in the 2003  period
 compared to 2002.

      General and Administrative.   For the three  months ended December  31,
 2003, general and administrative increased from $382,000 in 2002 to $387,000
 in 2003.  There were changes in major expense categories in the 2003  period
 compared to the 2002 period.

      Rent.  For the three months  ended December 31, 2003, rent was  $81,000
 compared  to  $95,000  in  the  2002  period.   The  decrease  is  primarily
 attributable to  the  Company  moving its  corporate  office  to  a  smaller
 location at the end of January 2003.  The monthly savings are  approximately
 $5,000 per month.


 Liquidity and Capital Resources

 For the three months ended December 31, 2003, net cash provided by operating
 activities was $5,000 compared to $2,000 for the three months ended December
 31, 2002.  There were no significant differences in the 2003 period compared
 to the 2002 period.

 During the  three  months  ended December  31,  2003,  cash  generated  from
 operations was not sufficient to  meet current obligations by  approximately
 $200,000.  Since the Company has no outside source of funds, at December  31
 2003, the  president  and chief  executive  officer was  owed  approximately
 $150,000  in  unpaid  wages  and  the  Internal  Revenue  Service  was   due
 approximately $270,000 in  delinquent payroll  taxes.   As a  result of  the
 shortfall in  cash from  operations, funds  were  not available  to  satisfy
 bankruptcy plan payments due in September 2001, 2002 and 2003.  At  December
 31, 2003, the Company was delinquent  on payments due to unsecured  creditor
 claims  and  insider  claims  in  the  amounts  of  $528,000  and  $625,000,
 respectively.  In  addition, the loan  in the amount  of $837,000 issued  in
 connection with the acquisition of three  clinics in September 2000 was  due
 and payable on  September 1,  2002.  The  amount past  due including  unpaid
 interest is approximately $1,061,000 at December 31, 2003.

 In the  case of  the  bankruptcy payments,  less  than five  creditors  have
 pursued collection of claims due as of  December 31, 2003.  The Company  was
 able to meet these payments of approximately $25,000 during the 2003  fiscal
 year and avoid legal action on the part of these creditors.  At the  present
 time, Management does not foresee any individual creditors initiating  legal
 action in regards  to past due  payment of claims.   However,  there are  no
 assurances that an individual creditor or group of creditors will not pursue
 legal action which could result in adverse consequences to the Company.

 The Company must achieve net revenue of approximately $400,000 per month  to
 meet current obligations. For the six month period ended September 30, 2003,
 net revenue was approximately $2,100,000,  which is a $300,000 shortfall for
 the period based on the $400,000 per month requirement.  Collections for the
 six  month  period  ended  December 31, 2003  were  $2,050,000,  which  is a
 $350,000  shortfall.  During  the  same  six  month period,  net revenue has
 increased to an average of $400,000 per month. Taking into consideration the
 180 day collection cycle,  Management believes monthly  collections for  the
 three  month period ending March 31, 2004 should average $400,000.  However,
 there are no assurances that the increased  collections  will provide  funds
 necessary to pay  the delinquent payroll  taxes.  To  provide an  additional
 source of cash, the Company is considering the closure of one clinic that is
 not generating sufficient operating  profit.  If the  clinic is closed,  the
 collection of  accounts  receivable,  net  of  collection  expenses,  should
 generate approximately $200,000 in excess cash, which can be used to pay the
 delinquent payroll taxes.

 On January 7, 2004,  a letter was received  from the holder the  acquisition
 note payable  requesting  the  Company  to  begin  making  monthly  interest
 payments of $16,750.  On February 11, 2004, a response was sent stating that
 funds from operations were not sufficient to meet current obligations and if
 excess funds  were to  become  available, the  Company  would pay  past  due
 payroll  taxes  before making  interest payments.  Before  March  31,  2004,
 Management believes  it  can renegotiate  the  note terms  to  make  partial
 interest payments and extend  the payment period of  principal and past  due
 interest.


 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 December 29, 2003.


 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, 2003.

<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, 2004       By:  /s/ Dr. J.W. Stucki
                               Dr. J.W. Stucki, Chief Executive
                               Officer and President

 Date: February 17, 2004       By:  /s/John C. Stuecheli
                               John C. Stuecheli, Chief Financial Officer and
                               Vice President - Finance
                               (Principal Financial and Accounting Officer)