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, 2000

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

            For the transition period from ____________ to ______________

            Commission file number: 000-26740

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

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

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

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

      Check whether the issuer (1) filed all reports required to be filed  by
 Section 13 or 15(d) of the  Exchange Act during the  past 12 months (or  for
 such shorter period that the registrant was required to file such  reports),
 and (2) has been subject to such filing requirements for the past 90 days.

      Yes [X]        No [ ]

      As of March 31, 2000, there  were outstanding 28,144,259 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 March 31, 2000




       Part I Financial Information

          Item 1.  Financial Statements

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

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

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

            Notes to Consolidated Financial Statements .....          5


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

       Part II Other Information

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

          Item 2.  Changes in Securities and Use of Proceeds          8

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

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

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

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


       Signatures  .........................................          9


<PAGE>
                        PART I. FINANCIAL INFORMATION

 Item 1. Financial Statements
<TABLE>
                         AMERICAN HEALTHCHOICE, INC.
                               AND SUBSIDIARIES

                          CONSOLIDATED BALANCE SHEET
                                 (Unaudited)
                                MARCH 31, 2000

                                 ASSETS
<S>                                                       <C>
 Current Assets:
 Cash                                                     $      2,600
 Accounts receivable, less allowance for doubtful            5,248,005
 Advances and notes receivable                                 199,524
 Other current assets                                           64,266
                                                           -----------
      Total current assets                                   5,514,395

 Property and equipment, net                                   659,616
 Other assets                                                   23,868
                                                           -----------
      Total assets                                        $  6,197,879
                                                           ===========

                  LIABILITIES AND STOCKHOLDERS' EQUITY

 Current Liabilities:
 Notes payable to related parties                         $    412,715
 Current portion of capital lease obligations                  237,414
 Accrued payroll and payroll taxes                             332,831
 Accounts payable and accrued expenses                       1,360,735
                                                           -----------
      Total current liabilities                              2,343,695

 Convertible debentures                                      3,385,000
 Capital lease obligations, less current portion                53,663
                                                           -----------
      Total liabilities                                      5,782,358

 Commitments

 Stockholders' Equity:
 Preferred stock, $.001 par value; 5,000,000 shares                  -
 Common stock, $.001 par value; 115,000,000 shares
   28,144,259 shares issued and outstanding                     28,144
 Options to acquire common stock                               200,104
 Additional paid-in capital                                 13,363,290
 Accumulated deficit                                       (13,176,017)
                                                           -----------
      Total stockholders' equity                               415,521
                                                           -----------
      Total liabilities and stockholders' equity          $  6,197,879
                                                           ===========

      See accompanying notes to these consolidated financial statements.
</TABLE>
<PAGE>
<TABLE>
                         AMERICAN HEALTHCHOICE, INC.
                               AND SUBSIDIARIES

                    CONSOLIDATED STATEMENTS OF OPERATIONS
                                 (Unaudited)


                                    Three Months Ended             Six Months Ended
                                         March 31,                    March 31,
                                     1999         2000            1999         2000
                                  ----------   ----------      ----------   ----------
<S>                              <C>          <C>             <C>          <C>
 Net Patient Revenues            $ 1,167,634  $   907,544     $ 2,698,681  $ 1,922,229

 Operating Expenses:
   Compensation and benefits         836,074      571,266       2,037,139    1,212,404
   Allowance for doubtful
     accounts at closed clinics      380,000            -         380,000            -
   Depreciation and amortization      55,390       33,788         111,162       57,788
   General and administrative        323,587      186,679         732,225      440,764
   Rent expense                       91,390       81,039         247,646      159,939
                                  ----------   ----------      ----------   ----------
      Total operating expenses     1,686,441      872,772       3,508,172    1,870,895

 Other Income (Expense):
   Gain on disposition of clinics    272,350       14,233         272,350       43,233
   Interest expense and other
     costs of borrowing               (8,936)      (2,550)        (23,449)     (20,562)
   Other income (expense)             (9,564)           -          (6,333)           -
                                  ----------   ----------      ----------   ----------
      Total other income             253,850       11,683         242,568       22,671
                                  ----------   ----------      ----------   ----------
 Net Income (Loss)               $  (264,957) $    46,455     $  (566,923) $    74,005
                                  ==========   ==========      ==========   ==========
 Basic and Diluted Net Income
   (Loss) Per Share              $     (0.01) $         -     $     (0.03) $         -

 Weighted Average Common
   Shares Outstanding            $23,801,964  $28,144,259     $19,160,798  $28,144,259


      See accompanying notes to these consolidated financial statements.

</TABLE>
<PAGE>
<TABLE>
                         AMERICAN HEALTHCHOICE, INC.
                               AND SUBSIDIARIES
                    CONSOLIDATED STATEMENTS OF CASH FLOWS
                                 (Unaudited)

                                                      Six Months Ended March 31,
                                                         1999           2000
                                                       ---------      ---------
<S>                                                   <C>            <C>
 Cash Flows From Operating Activities:
 Net income (loss)                                    $ (566,923)    $   74,005
 Adjustments to reconcile net income (loss) to
   net cash used in operating activities:
   Allowance for doubtful accounts                     1,456,590        776,997
   Gain on disposition of clinic assets                 (272,350)       (43,233)
   Depreciation and amortization                         111,162         57,788
 Change in operating assets and liabilities, net:
   Accounts receivable-trade                          (1,054,239)      (949,830)
   Other current assets                                      383        (24,300)
   Accounts payable and accrued expenses                (125,163)        54,476
                                                       ---------      ---------
        Net cash used in operating activities           (450,540)       (54,097)

  Cash Flows From Investing Activities:
   Advances and notes receivable, net                     53,091              -
   Property and equipment, net                            (1,986)        (5,000)
   Proceeds from sale of clinic assets                   950,000         67,500
                                                       ---------      ---------
        Net cash  provided by investing activities     1,001,105         62,500

 Cash Flows From Financing Activities:
   Proceeds from notes payable                            32,500         25,000
   Payment on debentures                                (665,000)             -
   Payments on notes payable and capital leases          (53,825)       (59,665)
                                                       ---------      ---------
        Net cash used in financing activities           (686,325)       (34,665)
                                                       ---------      ---------
 Net Decrease In Cash                                    135,760)       (26,262)
 Cash At Beginning Of Year                               169,895         28,862
                                                       ---------      ---------
 Cash At End Of Period                                $   34,135     $    2,600
                                                       =========      =========
 Supplemental Disclosure Of Cash Flow Information:
   Income taxes paid                                  $        -     $        -
   Interest paid                                          23,400          2,500

 Supplemental Disclosure Of Non-Cash Transactions:
   Offset notes payable against accounts receivable,
     equipment and goodwill                                    -        289,534
   Note received from purchaser of Norcross
     clinic assets                                       125,000              -
   Conversion of debenture and accrued interest
     into stock                                           16,523              -
   Issuance of stock as partial payment
     on notes payable to directors                       187,570              -

       See accompanying notes to these consolidated financial statement
</TABLE>
<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  nine  clinics,  owned  and  operated  by  wholly-owned
 subsidiaries, providing medical, physical therapy, and chiropractic services
 in San Antonio,  McAllen, and Houston,  Texas, and  New Orleans,  Louisiana.
 Substantially all of the Company's  revenues are derived from  chiropractic,
 physical therapy and medical services provided to individuals living in  the
 vicinity of the clinics.


 2.    Basis of Presentation

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

 The results of operations for  the six months ended  March 31, 2000 are  not
 necessarily indicative of the results to be expected for the full year.   It
 is suggested  that the  March  31, 2000  financial  information be  read  in
 conjunction with the financial statements and notes thereto included in  the
 Company's Form 10-KSB dated September 30, 1999.


 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.
<PAGE>
 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.

 Recent  Accounting  Pronouncements - In December  1999, the  Securities  and
 Exchange Commission  ("SEC")  issued  Staff  Accounting  Bulletin  No.  101,
 "Revenue Recognition in Financial Statements" ("SAB No. 101").  SAB No.  101
 summarizes certain of the SEC's staff's views in applying generally accepted
 accounting principles to  revenue recognition in  the financial  statements.
 We are presently evaluating the impact, if  any, that SAB No. 101 will  have
 on reported results.

 Year  2000  Compliance  -  The  Company's  computer  systems  and   products
 successfully transitioned to the Year 200 with no significant problems.  The
 Company will continue to monitor latent  problems that could  surface at key
 dates in  the  future.   It  is  not  anticipated  that  there  will  be any
 significant problems related to these dates or events.  To date, the Company
 has not incurred material losses associated with Year 2000 compliance or any
 disruption with vendors or operations.

 4.    Reorganization

 On October 19, 1999,  American HealthChoice, Inc.,  the parent company,  and
 AHC Physicians  Corporation,  Inc.,  a  subsidiary  that  owns  the  Georgia
 clinics, filed  Chapter  11  Bankruptcy Petitions  with  the  United  States
 Bankruptcy Court, Northern District of Texas, Dallas Division (Case No.  99-
 37314).  The Company elected to file the petitions for two primary  reasons.
 First, it was unable to restructure  terms of the September 1997 and  August
 1998 Debenture  Agreements, which  would have  allowed  for new  funding  to
 acquire profitable  clinics.   Second, in  early October  1999, the  Company
 received an adverse  ruling on a  lawsuit.  The  Company filed a  Disclosure
 Statement and Plan  of Reorganization on  February 16, 2000.   An  important
 provision of the Plan is the  acquisition of three established clinics  with
 expected  gross  annual  revenue  of  $5,000,000  and  expected  EBITDA   of
 approximately $1,500,000.   The purchase price  is approximately  $6,000,000
 with $900,000 in  cash at closing  and the remainder  in a debenture,  which
 will be  convertible into  common  stock if  annual  cash flow  targets  are
 achieved over  a  three year  period.   In  addition,  the Plan  allows  the
 debenture holders, who  are owed $3,385,000  face amount,  to convert  their
 debentures into a fixed amount of common stock.  The acquisition and  future
 working  capital  requirements  will  be  funded  through  an  infusion   of
 approximately $1,500,000  in  new capital.    The debt  conversion  and  the
 acquisition of the clinics will increase the number of outstanding shares of
 common stock to approximately 70 million.  A hearing for Confirmation of the
 Plan is scheduled for May 16, 2000.

 The August 1998 Convertible Debenture in the principal amount of  $3,385,000
 accrues interest at an 8% rate, which is payable in shares of common  stock.
 Since the proposed restructuring  agreement provides for  the issuance of  a
 fixed number  of  shares  of common  stock  for  the  debenture  obligation,
 including interest, the Company ceased accruing additional  interest expense
 on October 19, 1999.
<PAGE>
 5.    Disposition of Clinics

 On December 3, 1999 an order was  entered by the Bankruptcy Court to  return
 the Conyers,  Georgia  clinic to  the  previous  owner in  settlement  of  a
 lawsuit.   In compliance  with  the order,  the  Company recorded  an  asset
 writeoff of accounts receivable and equipment of $125,000, and  un-amortized
 goodwill of $130,000.  In return, the previous owner agreed to  cancellation
 of a note  payable in  the amount of  $290,000.   As a  result, the  Company
 recognized a  gain on  disposition  of $35,000.  On  February 4,  2000,  the
 Bankruptcy Court approved the sale of the McDonough, Georgia clinic  assets,
 excluding accounts receivable, for a $67,500 cash payment.  The sales  price
 approximates the book value of the clinic equipment.


 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  31,2000 Compared to Three  Months Ended March  31,
 1999

      Net Patient Revenues.  For the  three months ended March 31, 2000,  net
 patient revenues decreased from  $1,168,000 for the same  period in 1999  to
 $908,000 in 2000.  Approximately $267,000  of the decrease was  attributable
 to net patient revenue for the sold Georgia clinics in the 1999 period.  Net
 patient revenue at the remaining clinics  was unchanged in 2000 compared  to
 1999.

      Compensation and Benefits.  For the three months ended March 31,  2000,
 compensation  and  benefits  decreased from  $836,000  in 1999  to  $571,000
 in  2000.   Approximately  $222,000  of the  decrease  was  attributable  to
 compensation and benefits for the Georgia  clinics in the 1999  period.  The
 remainder of  the decrease  was due  to fewer  clinic employees  and  salary
 reductions taken by clinic physicians and executive officers in 2000.

      General and Administrative.  For the three months ended March 31, 2000,
 general and administrative decreased from $324,000  for fiscal year 1999  to
 $187,000 in 2000.  Approximately $98,000 of the decrease was attributable to
 general and  administrative expenses  for the  Georgia clinics  in the  1999
 period.   The remainder  is due  to overall  reductions at  the clinics  and
 corporate office.  The 2000 period  includes approximately $25,000 in  legal
 fees related to bankruptcy matters.

      Rent.   For the  three  months ended  March  31, 2000,  rent  decreased
 $10,000 from $91,000 in 1999 to $81,000 in 2000.  The decrease was primarily
 due to rent for the Georgia clinics in the 1999 period.

<PAGE>
 Six Months Ended March 31,2000 Compared to Six Months Ended March 31, 1999

      Net Patient Revenues.   For the  six months ended  March 31, 2000,  net
 patient revenues decreased from  $2,699,000 for the same  period in 1999  to
 $1,922,000 in 2000.  Approximately $757,000 of the decrease was attributable
 to net patient revenue for the sold Georgia clinics in the 1999 period.  Net
 patient revenue at the remaining clinics  was unchanged in 2000 compared  to
 1999.

      Compensation and Benefits.   For the six months  ended March 31,  2000,
 compensation  and  benefits  decreased from $2,037,000 in 1999 to $1,212,000
 in  2000.   Approximately  $719,000  of the  decrease  was  attributable  to
 compensation and benefits for the Georgia  clinics in the 1999 period.   The
 remainder of  the decrease  was due  to fewer  clinic employees  and  salary
 reductions taken by clinic physicians and executive officers in 2000.

      General and Administrative.  For the  six months ended March 31,  2000,
 general and administrative decreased from $732,000  for fiscal year 1999  to
 $441,000 in 2000.  Approximately $271,000  of the decrease was  attributable
 to general and administrative expenses for  the Georgia clinics in the  1999
 period.    The remainder is  due to overall  reductions at  the clinics  and
 corporate office. The remainder is due to overall reductions at the  clinics
 and corporate office.   The 2000  period includes  approximately $60,000  in
 legal fees related to bankruptcy matters.

      Rent.  For the six months ended March 31, 2000, rent decreased  $88,000
 from $248,000 in 1999 to $160,000 in  2000.  The decrease was primarily  due
 to rent for the Georgia clinics in the 1999 period.

 Through the  closure of  unprofitable clinics  and an  overall reduction  in
 operating expenses,  the  Company has  achieved  profitability for  the  six
 months ended March  31, 2000  compared to  a  loss  of $567,000  for the six
 months ended March 31, 1999.


 Liquidity and Capital Resources

 For the  six  months  ended March  31,  2000,  net cash  used  in  operating
 activities was $54,000 compared to $450,000  for the six months  ended March
 31, 1999.  The decrease of $400,000 is primarily attributable to net  income
 of $74,000 in 2000 compared to a $567,000 loss in the 1999 period.

 During the last  six months of  fiscal year 1999,  the Company  was able  to
 reduce its monthly  cash loss to  approximately $40,000  and had  identified
 profitable acquisitions, which would have been funded by an equity infusion.
 However, the Company was unable to  restructure terms of the September  1997
 and August  1998 debenture  agreements, which  would  have allowed  for  new
 funding under terms satisfactory to the Company and the prospective  seller.
 Also, in early  October 1999, the  Company received an  adverse ruling on  a
 lawsuit.  As a result of these two events, the Board of Directors elected on
 October 19,1999  to file  individual  voluntary bankruptcy  petitions  under
 Chapter 11 of the United States  Bankruptcy Code for American  HealthChoice,
 Inc., the parent  company, and  its subsidiary,  AHC Physicians  Corporation
 Inc., the  owner  of the  Georgia  medical clinics.    The Company  filed  a
 Disclosure Statement and Plan of Reorganization  on February 16, 2000.   The
 Disclosure Statement was approved by the  United States Bankruptcy Court  on
 April 6, 2000.  A hearing for Confirmation of the Plan is scheduled for  May
 16, 2000.
<PAGE>
 Since the bankruptcy petition  filing on October 19,  1999, the Company  has
 been operating under a  cash receipts and  disbursements budget approved  by
 the Bankruptcy Court.  Cash receipts from collection of accounts  receivable
 should be sufficient to satisfy  all financial obligations incurred  through
 the confirmation date.   The Plan of  Reorganization contemplates a  capital
 infusion of approximately $1,500,000 with $600,000 of the funding  allocated
 to working capital.


 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

 On October 19, 1999,  American HealthChoice, Inc.,  the parent company,  and
 AHC Physicians  Corporation,  Inc.,  a  subsidiary  that  owns  the  Georgia
 clinics, filed  Chapter  11  Bankruptcy Petitions  with  the  United  States
 Bankruptcy Court, Northern District of Texas, Dallas Division (Case No.  99-
 37314).

 The Company was served a complaint on December 7, 1999 alleging  unspecified
 damages arising from an alleged contract  breach concerning the purchase  of
 the McAllen Texas clinic in 1996.   Since all causes of action arose  before
 October 19, 1999 bankruptcy  filing, the Company  will assert the  automatic
 stay provision  of the  Bankruptcy Code.   The  case is  filed in  the  16th
 District Court, of Denton County, Texas.

 Any further actions in the legal proceedings disclosed in the 1999 Form  10-
 KSB filed January 13,  2000, have been stayed  by the Chapter 11  Bankruptcy
 Petition filed by the Company on October 19, 1999.


 Item 2.  Changes in Securities and Use of Proceeds

 Not applicable
<PAGE>


 Item 3.  Defaults upon Senior Securities

 The Chapter 11  Bankruptcy Petitions have  created technical defaults  under
 various notes and other contractual obligations.


 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

 (a)  Exhibit 27 - Financial data schedule

 (b)  No Form 8-K Report were filed during the quarter ended March 31, 2000.

<PAGE>
                               SIGNATURES

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



                               AMERICAN HEALTHCHOICE, INC.

 Date: May 15, 2000                 By:  /s/ Dr. J.W. Stucki
                                    ------------------------------------
                                    Dr. J.W. Stucki, Chief Executive
                                    Officer and President

 Date: May 15, 2000                 By:  /s/John C. Stuecheli
                                    ------------------------------------
                                    John C. Stuecheli, Chief Financial
                                    Officer and Vice President - Finance
                                    (Principal Financial and Accounting
                                    Officer)