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, 2001

   [   ]    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, 2001, there  were outstanding 82,343,521 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, 2001




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


<PAGE>

                        PART I. FINANCIAL INFORMATION

 Item 1. Financial Statements

                         AMERICAN HEALTHCHOICE, INC.
                               AND SUBSIDIARIES

                          CONSOLIDATED BALANCE SHEET
                                 (Unaudited)
                                MARCH 31, 2001

                                 ASSETS


 Current Assets:
 Cash                                                         $      5,403
 Accounts receivable, less allowance for doubtful
   accounts of $7,637,665                                        7,912,901
 Advances and notes receivable                                      46,091
 Other current assets                                               76,796
                                                               -----------
      Total current assets                                       8,041,191

 Property and equipment, net                                       429,139
 Goodwill, net                                                   3,623,662
 Other assets                                                      354,895
                                                               -----------
      Total assets                                            $ 12,448,887
                                                               ===========

                  LIABILITIES AND STOCKHOLDERS' EQUITY

 Current Liabilities:
 Current portion of capital lease obligations                 $     47,868
 Current bankruptcy claims                                         431,500
 Accrued payroll and payroll taxes                                 289,764
 Accounts payable and accrued expenses                             204,442
                                                               -----------
      Total current liabilities                                    973,574

 Convertible debentures                                          3,374,800
 Notes payable to related parties                                  957,500
 Long-term bankruptcy claims                                       753,750
                                                               -----------
      Total liabilities                                          6,059,624

 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 82,343,521 shares issued and outstanding              82,343
 Options to acquire common stock                                   100,104
 Additional paid-in capital                                     19,191,666
 Accumulated deficit                                           (12,984,850)
                                                               -----------
      Total stockholders' equity                                 6,389,263
                                                               -----------
      Total liabilities and stockholders' equity              $ 12,448,887
                                                               ===========


      See accompanying notes to these consolidated financial statements.


<PAGE>
<TABLE>
                         AMERICAN HEALTHCHOICE, INC.
                               AND SUBSIDIARIES

                    CONSOLIDATED STATEMENTS OF OPERATIONS
                                 (Unaudited)



                                     Three Months Ended March 31,       Six Months Ended March 31,
                                    -----------------------------      ---------------------------
                                       2000            2001              2000             2001
                                    ----------       ----------        ----------       ----------
 <S>                               <C>              <C>               <C>              <C>
 Net Patient Revenues              $   907,544      $ 1,404,207       $ 1,922,229      $ 2,640,054

 Operating Expenses:
   Compensation and benefits           571,266          721,853         1,212,404        1,417,071
   Depreciation and amortization        33,788          157,627            57,788          292,832
   General and administrative          186,679          372,440           440,764          691,183
   Rent expense                         81,039           92,713           159,939          185,552
                                    ----------       ----------        ----------       ----------
      Total operating expenses         872,772        1,344,633         1,870,895        2,586,638

 Other Income (Expense):
   Gain on disposition of clinics       14,233                -            43,233                -
   Interest expense and other
     costs of borrowing                 (2,550)         (18,837)          (20,562)         (44,900)
   Other income                              -           57,579                 -          107,579
                                    ----------       ----------        ----------       ----------
      Total other income                11,683           38,742            22,671           62,679
                                    ----------       ----------        ----------       ----------
 Income Before Taxes                    46,455           98,316            74,005          116,095

 Federal Income Taxes                        -           37,500                 -           43,500
                                    ----------       ----------        ----------       ----------
 Net Income                        $    46,455      $    60,816       $    74,005      $    72,595
                                    ==========       ==========        ==========       ==========

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


 Weighted Average Common Shares
   Outstanding                      28,144,259       81,502,032        28,144,259       80,821,764



      See accompanying notes to these consolidated financial statements.

</TABLE>
<PAGE>


                         AMERICAN HEALTHCHOICE, INC.
                               AND SUBSIDIARIES

                    CONSOLIDATED STATEMENTS OF CASH FLOWS
                                 (Unaudited)

                                                   Six Months Ended March 31,
                                                   --------------------------
                                                         2000       2001
                                                      ---------    ---------
 Cash Flows From Operating Activities:
 Net income (loss)                                   $   74,005   $   72,595
 Adjustments to reconcile net income to net cash
   cash used in operating activities:
   Allowance for doubtful accounts                      776,997    1,412,764
   Gain on disposition of clinic assets                 (43,233)           -
   Gain on cancellation of options                            -     (100,000)
   Employee compensation-stock                                -       43,800
   Depreciation and amortization                         57,788      292,832
 Change in operating assets and liabilities, net:
   Accounts receivable-trade                           (949,830)  (1,895,084)
   Other current assets                                 (24,300)       9,741
   Accounts payable and accrued expenses                 54,476       99,291
                                                      ---------    ---------
        Net cash used in operating activities           (54,097)     (64,061)

  Cash Flows From Investing Activities:
   Property and equipment, net                           (5,000)      (3,240)
   Proceeds from sale of clinic assets                   67,500            -
                                                      ---------    ---------
        Net cash provided by (used in)
          investing activities                           62,500       (3,240)

 Cash Flows From Financing Activities:
   Proceeds from notes payable                           25,000       50,000
   Payments on notes payable and capital leases         (59,665)     (17,997)
                                                      ---------    ---------
        Net cash provided by (used in)
          financing activities                          (34,665)      32,003
                                                      ---------    ---------
 Net Decrease In Cash                                   (26,262)     (35,298)
 Cash At Beginning Of Year                               28,862       40,701
                                                      ---------    ---------
 Cash At End Of Period                               $    2,600   $    5,403
                                                      =========    =========
 Supplemental Disclosure Of Cash Flow
   Income taxes paid                                 $        -   $        -
   Interest paid                                          2,500        3,100

 Supplemental Disclosure Of Non-Cash Transactions:
   Offset notes payable against accounts
     receivable, equipment and goodwill                 289,534            -
   Issuance of stock in connection with
     financing activities                                     -       12,500
   Conversion of debenture and accrued
     interest into stock                                      -      322,200
   Issuance of stock in connection with
     employment agreements                                    -      222,875


      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 thirteen 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 six months ended  March 31, 2001 are  not
 necessarily indicative of the results to be expected for  the full year.  It
 is  suggested  that the  March  31, 2001  financial  information be  read in
 conjunction with the financial statements and notes thereto included in  the
 Company's Form 10-KSB dated September 30, 2000.


 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.

 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.   Employment Agreements

 Effective October 1, 2000, the Company entered into a three-year  employment
 agreement with its President and Chief Executive Officer for an annual  base
 salary of $250,000.  As added consideration for entering into the employment
 agreement, this  individual  received  5,200,000  shares  of  common  stock.
 Effective October 1,  2000, United Chiropractic  Clinic of  Uptown, Inc.,  a
 subsidiary of the Company, entered into a two year employment agreement with
 a director, who serves as clinic director at the New Orleans Uptown  clinic,
 for an annual base salary of $150,000.  As added consideration for  entering
 into the employment agreement, this individual received 3,215,000 shares  of
 common stock.  Effective October 1, 2000, the Company entered into a  three-
 year employment agreement with its Chief Financial Officer and Secretary for
 an annual base salary of $110,000.  As added consideration for entering into
 the employment agreement, this individual received 500,000 shares of  common
 stock.  The shares issued to these individuals bear a "Rule 144" restrictive
 legend and are  valued at  $0.025 per share,  which was  the estimated  fair
 market value as of October 1, 2000.   The $222,875 value of these shares  is
 being amortized over the period of the employment agreements.


 5.   Convertible Debentures

 On August  24, 2000,  the Company  issued new  debentures in  the amount  of
 $3,697,000, which are  convertible, at the  holders option, into  20,475,000
 shares of common stock at any time during the period ended August 24,  2003.
 On February 1, 2001 and February  22, 2001, the Company received  conversion
 notices  for  721,095  shares  and  1,063,167  shares,   respectively.   The
 principal amount of outstanding debentures  was  reduced by $322,200 and the
 number of issued and outstanding common stock increased by 1,784,262  shares
 for the six months ended March 31, 2001.  Additional conversion notices  for
 4,019,895 shares were received on April 9, 2001.


 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, 2001  Compared to Three Months Ended March  31,
 2000

      Net Patient Revenues.  For the  three months ended March 31, 2001,  net
 patient revenues increased  from $908,000  for the  same period  in  2000 to
 $1,404,000 in 2001.  Approximately $486,000 of the increase was attributable
 to net patient revenue for the three clinics acquired in September 2000.

      Compensation and Benefits.  For the three months ended March 31,  2001,
 compensation  and  benefits  increased from $571,000  in  2000  to  $722,000
 in  2001.  Approximately  $171,000  of  the  increase  was  attributable  to
 compensation and benefits for the three clinics acquired in September 2000.

      Depreciation and Amortization.  For  the three  months  ended March 31,
 2001,  depreciation and  amortization  increased from  $34,000  in  2000  to
 $158,000  in  2001.  The  increase  was  primarily due  to  amortization  of
 goodwill in the amount  of $97,000 attributable to  the clinics  acquired in
 September 2000.

      General and Administrative.  For the three months ended March 31, 2001,
 general and administrative increased from $187,000  for fiscal year 2000  to
 $372,000 in 2001.  Approximately $95,000 of the increase was attributable to
 general and  administrative  expenses  for the  three  clinics  acquired  in
 September 2000 and $63,000 was attributable  to higher marketing  expense at
 the Texas clinics resulting from an  increase in the number of new  patients
 in 2001 compared to 2000.

      Rent.  For the three months  ended March 31, 2001, rent increased  from
 $81,000 in 2000 to  $93,000 in 2001. Approximately  $17,000 of the  increase
 was attributable  to  rent  expenses  for  the  three  clinics  acquired  in
 September 2000.  This increase was partially offset by a decrease of  $5,000
 attributable to the Georgia clinics sold in 2000.

 Six Months Ended March 31, 2001 Compared to Six Months Ended March 31, 2000

      Net Patient Revenues.  For the  six  months ended  March 31, 2001,  net
 patient revenues increased from  $1,922,000 for the same  period in 2000  to
 $2,640,000 in 2001.  Approximately $990,000 of the increase was attributable
 to net patient  revenue for the  three clinics acquired  in September  2000.
 The increase from the acquired clinics was offset by a decrease of  $236,000
 attributable to the Georgia clinics sold in fiscal 2000.

      Compensation and Benefits.  For the six  months  ended March 31,  2001,
 compensation  and  benefits  increased from $1,212,000 in 2000 to $1,417,000
 in  2001.  Approximately  $347,000  of  the  increase  was  attributable  to
 compensation and benefits for the three clinics acquired in September  2000.
 The increase from the acquired clinics was offset by a decrease of  $153,000
 attributable to the Georgia clinics sold in fiscal 2000.

      Depreciation and  Amortization.  For  the  six months  ended March  31,
 2001,  depreciation  and  amortization  increased from  $58,000  in  2000 to
 $293,000  in  2001.  The  increase  was  primarily due  to  amortization  of
 goodwill in the amount of $194,000  attributable  to the clinics acquired in
 September 2000.

      General and Administrative.  For the  six months ended March 31,  2001,
 general and administrative increased from $441,000  for fiscal year 2000  to
 $691,000 in 2001. Approximately $183,000 of the increase was attributable to
 general and  administrative  expenses  for the  three  clinics  acquired  in
 September 2000 and $183,000 was attributable to higher marketing  expense at
 the Texas clinics resulting from an  increase in the number of new  patients
 in 2001 compared to 2000.  The increase from the acquired clinics and higher
 marketing expense was partially offset by a decrease of $65,000 attributable
 to the Georgia clinics sold in fiscal 2000.

      Rent.  For  the six months  ended March 31,  2001, rent increased  from
 $160,000 in 2000 to $186,000 in 2001. Approximately $35,000 of the  increase
 was  attributable to  rent  expenses  for  the  three  clinics  acquired  in
 September 2000.  This increase was partially offset by a decrease of  $9,000
 attributable to the Georgia clinics sold in 2000.


 Liquidity and Capital Resources

 For the  six  months  ended March  31,  2001,  net cash  used  in  operating
 activities was $64,000 compared  to $54,000 for the  six months ended  March
 31,  2000.   Net  cash used  in operating activities in  the 2001 period  is
 primarily attributable to an increase in  accounts receivable in the  amount
 of $1,895,000 offset  by non-cash expenses in the  amount  of $1,413,000 for
 allowance  for doubtful accounts and  depreciation and  amortization in  the
 amount  of  $293,000.  The  Company  anticipates  an  increase  in  accounts
 receivable collections  in the period April  to September 2001.   The  funds
 generated will be used to pay bankruptcy obligations in September 2001.


 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 January 16, 2001.


 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


 No Form 8-K Reports were filed during the quarter ended March 31, 2001.


<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 14, 2001            By:  /s/ Dr. J.W. Stucki
                               Dr. J.W. Stucki, Chief Executive
                               Officer and President

 Date: May 14, 2001            By:  /s/John C. Stuecheli
                               John C. Stuecheli, Chief Financial
                               Officer and Vice President - Finance
                               (Principal Financial and Accounting Officer)