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, 1999

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

       For the transition period from           to

       Commission file number: 000-26740

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

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

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

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

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

       Yes [X]        No [ ]

       As of December 31, 1999, 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 December 31, 1999


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

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

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


        Signatures_ .........................................          8

<PAGE>
<TABLE>
                       PART I. FINANCIAL INFORMATION
  Item 1. Financial Statements

                        AMERICAN HEALTHCHOICE, INC.
                             AND SUBSIDIARIES
                        CONSOLIDATED BALANCE SHEET
                                (Unaudited)
                             DECEMBER 31, 1999

                                  ASSETS
  <S>                                                       <C>
  Current Assets:
  Cash                                                      $    24,400
  Accounts receivable, less allowance for doubtful
   accounts of $7,119,266                                     5,201,330
  Advances and notes receivable                                 199,524
  Other current assets                                           47,965
                                                              ---------
       Total current assets                                   5,473,219

  Property and equipment, net                                   746,387
  Other assets                                                   19,345
                                                              ---------
       Total assets                                         $ 6,238,951
                                                              =========
                   LIABILITIES AND STOCKHOLDERS' EQUITY
  Current Liabilities:
  Current portion of notes payable                          $   437,715
  Current portion of capital lease obligations                  141,067
  Accrued payroll and payroll taxes                             382,437
  Accounts payable and accrued expenses                       1,363,156
                                                              ---------
       Total current liabilities                              2,324,375

  Convertible debentures                                      3,385,000
  Capital lease obligations, less current portion               160,510
                                                              ---------
       Total liabilities                                      5,869,885

  Commitments

  Stockholders' Equity:
  Preferred stock, $.001 par value; 5,000,000 shares
   authorized; none issued                                            -
  Common stock, $.001 par value; 115,000,000 shares
    authorized 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                                       (13,222,472)
                                                              ---------
       Total stockholders' equity                               369,066
                                                              ---------
       Total liabilities and stockholders' equity           $ 6,238,951
                                                              =========

    See accompanying notes to these consolidated financial statements.
</TABLE>
<PAGE>
<TABLE>
                        AMERICAN HEALTHCHOICE, INC.
                             AND SUBSIDIARIES
                   CONSOLIDATED STATEMENTS OF OPERATIONS
                                (Unaudited)


                                            Three Months Ended December 31,
                                                  1998           1999
                                               ----------     ----------
  <S>                                         <C>            <C>
  Net Patient Revenues                        $ 1,531,047    $ 1,014,685

  Operating Expenses:
    Compensation and benefits                   1,201,065        641,138
    Depreciation and amortization                  55,772         24,000
    General and administrative                    408,638        254,085
    Rent expense                                  156,256         78,900
                                               ----------     ----------
       Total operating expenses                 1,821,731        998,123

  Other Income (Expense):
    Gain on disposition of clinic                       -         29,000
    Interest expense and other costs
      of borrowing                                (14,513)       (18,012)
    Other income                                    3,231              -
                                               ----------     ----------
       Total other income (expenses)              (11,282)        10,988
                                               ----------     ----------
  Net Income (Loss)                           $  (301,966)   $    27,550
                                               ==========     ==========
  Basic and Diluted Net Income
    (Loss) Per Share                          $     (0.02)   $         -

  Weighted Average Common Shares Outstanding   14,519,632     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)

                                                Three Months Ended December 31,
                                                         1998           1999
                                                      ---------      ---------
  <S>                                                <C>            <C>
  Cash Flows From Operating Activities:
  Net income (loss)                                  $ (301,966)    $   27,550
  Adjustments to reconcile net income (loss) to
    net cash used in operating activities:
    Allowance for doubtful accounts                     675,480        386,600
    Gain on disposition of Conyers clinic assets              -        (29,000)
    Depreciation and amortization                        55,772         24,000
  Change in operating assets and liabilities, net:
    Accounts receivable-trade                          (686,500)      (517,450)
    Other current assets                                (16,315)        (3,000)
    Accounts payable and accrued expenses               (37,060)       106,503
                                                      ---------      ---------
         Net cash used in operating activities         (310,589)        (4,797)

   Cash Flows From Investing Activities:
    Advances and notes receivable, net                   27,318              -
    Property and equipment, net                            (965)        (5,000)
    Deposit received on sale of assets                  150,000              -
                                                      ---------      ---------
         Net cash  provided  by (used in) investing     176,353         (5,000)

  Cash Flows From Financing Activities:
    Proceeds from notes payable                          25,000         25,000
    Payments on notes payable and capital leases        (36,023)       (19,665)
                                                      ---------      ---------
         Net  cash provided by (used  in) financing     (11,023)         5,335
                                                      ---------      ---------
  Net Decrease in Cash                                 (145,259)        (4,462)
  Cash At Beginning Of Year                             169,895         28,862
                                                      ---------      ---------
  Cash At End Of Period                              $   24,636     $   24,400
                                                      =========      =========

  Supplemental Disclosure Of Cash Flow
    Income taxes paid                                $        -     $        -
    Interest paid                                        14,500              -

  Supplemental Disclosure Of Non-Cash
    Offset notes payable against accounts                     -        294,034


    See accompanying notes to these consolidated financial statements.
</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  eleven  clinics  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 three months ended December 31,  1999
  are not necessarily indicative  of the results to  be expected for  the
  full year.   It  is  suggested that  the  December 31,  1999  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.
<PAGE>
  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.

  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.   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.  On December 6, 1999, the Bankruptcy Court granted the Company
  authority to continue operating under a cash collateral budget  through
  February 29, 2000.   The Company forecasts positive  cash flow for  the
  approved budget period  including sufficient cash  to pay  professional
  fees approved by the Bankruptcy Court.   The Company intends to file  a
  Plan of Reorganization and Disclosure Statement on February 15, 2000.


  5.   Disposition of Clinic

  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 $130,000,  and
  un-amortized goodwill  of  $130,000.   In  return, the  previous  owner
  agreed to cancellation of a note payable in the amount of $291,000.  As
  a result, the Company recognized a gain on disposition of $29,000.


  6.   Subsequent Events

  On February 4,  2000, the  Bankruptcy Court  approved the  sale of  the
  McDonough Georgia  clinic assets,  excluding accounts  receivable,  for
  $67,500 as of January 31, 2000.  The sales price approximates the  book
  value of the clinic equipment.
<PAGE>

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

  Results of Operations

  The following discussion  and analysis  should be  read in  conjunction
  with the Consolidated  Financial Statements and  Notes thereto, and  is
  qualified in its entirety by the  foregoing and by other more  detailed
  financial information appearing elsewhere.

  Three Months Ended  December 31, 1999  Compared to  Three Months  Ended
  December 31, 1998

       Net Patient Revenues.   For the  three months  ended December  31,
  1999, net  patient  revenues decreased  from  $1,531,000 for  the  same
  period in 1998 to  $1,015,000 in 1999.   Approximately $424,000 of  the
  decrease was  attributable  to net  patient  revenue for  the  Norcross
  clinic in the 1998 period, which was sold as of December 31, 1998.

       Compensation and Benefits.   For the  three months ended  December
  31, 1999, compensation and benefits  decreased from $1,201,000 in  1998
  to $641,000  in  1999.   Approximately  $400,000 of  the  decrease  was
  attributable to compensation  and benefits for  the Norcross clinic  in
  the 1998 period.  The remainder of the decrease was due to fewer clinic
  employees  and  salary  reductions  taken  by  clinic  physicians   and
  executive officers in 1999.

       General and Administrative.  For  the three months ended  December
  31, 1999, general and administrative decreased from $409,000 for fiscal
  year 1998 to $254,000 in 1999.  Approximately $125,000 of the  decrease
  was  attributable  to  general  and  administrative  expenses  for  the
  Norcross clinic in the 1998 period.    The remainder is due to  overall
  reductions at the clinics and corporate office.

       Rent.   For  the  three  months  ended  December  31,  1999,  rent
  decreased $77,000  from $156,000  in  1998 to  $79,000  in 1999.    The
  decrease was primarily due to rent for the Norcross clinic in the  1998
  period.

  Through the closure of unprofitable clinics and an overall reduction in
  operating expenses,  the Company  has  achieved profitability  for  the
  three months ended December 31, 1999 compared to a loss of $300,000 for
  the three months ended December 31, 1998.

  Liquidity and Capital Resources

  For the  three  months  ended  December 31,  1999,  net  cash  used  in
  operating activities  was $5,000  compared to  $311,000 for  the  three
  months ended December 31, 1998.  The decrease of $306,000 is  primarily
  attributable to net income  of $27,000 in 1999  compared to a  $300,000
  loss in the 1998 period.
<PAGE>
  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 has prepared  a
  Disclosure Statement and  Plan of Reorganization,  which it intends  to
  file on February 15, 2000.

  Since the  bankruptcy petition filing  on October 19, 1999, the Company
  has  been operating  under  a cash  receipts  and  disbursement  budget
  approved  by the Bankruptcy Court.   Cash receipts  from collections of
  accounts receivable  should  be  sufficient  to satisfy all obligations
  incurred since the filing date.


  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.
<PAGE>

  Item 2.  Changes in Securities and Use of Proceeds

  Not applicable


  Item 3.  Defaults upon Senior Securities

  The  Chapter 11 Bankruptcy Petitions  have  created technical  defaults
  under various notes and other 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) On November 5 1999, a Form 8-K Report was filed regarding the
      Chapter 11 Bankruptcy Filing on October 19, 1999.

<PAGE>

                                SIGNATURES

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



                                AMERICAN HEALTHCHOICE, INC.

  Date: February 14, 2000       By:  /s/ Dr. J.W. Stucki
                                     Dr. J.W. Stucki, Chief Executive
                                     Officer and President

  Date: February 14, 2000       By:  /s/John C. Stuecheli
                                     John C. Stuecheli, Chief Financial
                                     Officer and Vice President - Finance
                                     (Principal Financial and Accounting
                                     Officer)  American HealthChoice, Inc.