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 June 30, 2005

    [ ]     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 June 30, 2005, there were outstanding 110,009,259 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 June 30, 2005



       Part I Financial Information

         Item 1.  Financial Statements

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

            Consolidated Statements of Operations ..........          3

            Consolidated Statements of Cash Flows ..........          4

            Notes to Consolidated Financial Statements .....          5


         Item 2.  Management's Discussion and Analysis or
                  Plan of Operation ........................          7


       Part II Other Information

         Item 1.  Legal Proceedings ........................         10

         Item 2.  Changes in Securities and Use of Proceeds          10

         Item 3.  Defaults upon Senior Securities ..........         10

         Item 4.  Submission of Matters to a Vote of
                  Security Holders .........................         10

         Item 5.  Other Information ........................         10

         Item 6.  Exhibits .................................         10

         Signatures ........................................         10

<PAGE>

                        PART I. FINANCIAL INFORMATION

 Item 1. Financial Statements

                         AMERICAN HEALTHCHOICE, INC.
                               AND SUBSIDIARIES

                          CONSOLIDATED BALANCE SHEET
                                 (Unaudited)
                                JUNE 30, 2005

                                   ASSETS
 Current Assets:
 Cash                                                         $      5,884
 Accounts receivable, less allowance for doubtful
   accounts of $ 5,003,994                                       5,579,844
 Notes receivable                                                  133,624
 Other current assets                                               95,320
                                                               -----------
      Total current assets                                       5,814,672

 Property and equipment, net                                       575,317
 Goodwill, net                                                   1,348,570
                                                               -----------
      Total assets                                            $  7,738,559
                                                               ===========

                  LIABILITIES AND STOCKHOLDERS' EQUITY

 Current Liabilities:
 Notes payable and capital lease obligations                  $    519,220
 Acquisition note payable including accrued interest             1,148,700
 Bankruptcy claims of unsecured creditors                          343,801
 Bankruptcy claims of related parties                              469,406
 Accrued payroll taxes and penalties                               446,444
 Compensation due executive officer                                570,731
 Accrued expenses                                                  373,420
 Accounts payable                                                  361,482
                                                               -----------
      Total current liabilities                                  4,233,204

 Commitments and Contingent Liabilities                                  -

 Stockholders' Equity:
 Preferred stock, $.001 par value; 5,000,000 shares
   authorized; 13,875 shares issued and outstanding              1,387,500
 Common stock, $.001 par value; 200,000,000 shares
   authorized; 110,009,259 shares issued and outstanding           110,009
 Additional paid-in capital                                     20,693,675
 Accumulated deficit                                           (18,685,829)
                                                               -----------
      Total stockholders' equity                                 3,505,355
                                                               -----------
      Total liabilities and stockholders' equity              $  7,738,559
                                                               ===========


      See accompanying notes to these consolidated financial statements.

<PAGE>
<TABLE>

                          AMERICAN HEALTHCHOICE, INC.
                                AND SUBSIDIARIES

                     CONSOLIDATED STATEMENTS OF OPERATIONS
                                  (Unaudited)



                                    Three Months Ended June 30,         Nine Months Ended June30,
                                    ---------------------------        ---------------------------
                                       2004             2005              2004             2005
                                    ----------       ----------        ----------       ----------
 <S>                               <C>              <C>               <C>              <C>
 Revenues:
   Patient billings                $ 2,515,026      $ 2,949,103       $ 6,989,884      $ 8,319,027
   Allowance for discount
     on billings                     1,184,293        1,280,585         3,270,656        3,612,641
                                    ----------       ----------        ----------       ----------
   Net patient billings              1,330,733        1,668,518         3,719,228        4,706,386
   Commissions and equipment
     rental fees                             -           17,069                 -           57,249
                                    ----------       ----------        ----------       ----------
     Net revenues                    1,330,733        1,685,587         3,719,228        4,763,635

 Operating Expenses:
   Compensation and benefits           697,153          671,629         1,986,786        2,069,902
   Marketing and advertising           239,778          319,400           627,006          886,547
   General and administrative          308,697          336,107           813,961          869,520
   Rent                                 81,277           74,994           243,131          229,102
                                    ----------       ----------        ----------       ----------
     Total operating expenses        1,326,905        1,402,130         3,670,884        4,055,071
                                    ----------       ----------        ----------       ----------
 Operating income                        3,828          283,457            48,344          708,564

 Other Expenses:
   Interest expense                     18,193           44,104            55,231           85,243
   Bad debt loss                       900,000                -           900,000                -
   Other expense                             -                -                 -           28,000
                                    ----------       ----------        ----------       ----------
     Total other expense               918,193           44,104           955,231          113,243
                                    ----------       ----------        ----------       ----------
 Net Income (Loss)                    (914,365)         239,353          (906,887)         595,321

 Preferred stock dividend                    -                -                 -          (35,600)
                                    ----------       ----------        ----------       ----------
 Net Income (Loss) Applicable
   to Common Stockholders          $  (914,365)     $   239,353       $  (906,887)     $   559,721
                                    ==========       ==========        ==========       ==========
 Basic and Diluted Net Income
   (Loss) Per Share                $     (0.01)     $         -       $     (0.01)     $      0.01

 Preferred stock dividend                    -                -                 -                -
                                    ----------       ----------        ----------       ----------
 Basic and Diluted Net Income
   (Loss) Per Share Applicable
   to Common Stockholders         $      (0.01)     $         -       $     (0.01)     $      0.01
                                    ==========       ==========        ==========       ==========
 Weighted Average Common Shares
   Outstanding                     108,148,000      112,383,000       105,031,000      107,598,000


      See accompanying notes to these consolidated financial statements.

</TABLE>
<PAGE>

                         AMERICAN HEALTHCHOICE, INC.
                               AND SUBSIDIARIES
                    CONSOLIDATED STATEMENTS OF CASH FLOWS
                                 (Unaudited)



                                                    Nine Months Ended June 30,
                                                    --------------------------
                                                        2004         2005
                                                      ---------    ---------
 Cash Flows From Operating Activities:
 Net income (loss)                                   $ (906,887)  $  595,321
 Adjustments to reconcile net income to net cash
   provided by (used in) operating activities:
   Employee and director compensation-stock                   -       46,750
   Other                                                      -       11,000
   Bad debt loss                                        900,000            -
   Depreciation and amortization                         22,689       27,606
 Change in operating assets and liabilities, net:
   Accounts receivable-trade                           (388,212)    (898,307)
   Other current assets                                  12,939      (38,246)
   Accounts payable and accrued expenses                398,762      116,031
                                                      ---------    ---------
        Net cash provided by (used in)
          operating activities                           39,291     (139,845)

 Cash Flows From Investing Activities:
   Payments on notes receivable                               -       26,000
   Property and equipment                                (2,365)     (85,094)
                                                      ---------    ---------
        Net cash used in investing activities            (2,356)     (59,094)

 Cash Flows From Financing Activities:
   Proceeds from notes payable                                -      250,500
   Payments on notes payable and capital leases         (34,444)     (55,248)
                                                      ---------    ---------
        Net cash provided by (used in)
          financing activities                          (34,444)     195,252
                                                      ---------    ---------
 Net Increase (Decrease) In Cash                          2,491       (3,687)
 Cash At Beginning Of Year                               21,071        9,571
                                                      ---------    ---------
 Cash At End Of Period                               $   23,562   $    5,884
                                                      =========    =========
 Supplemental Disclosure Of Cash Flow Information:
   Income taxes paid                                 $    1,500   $        -
   Interest paid                                          5,000       35,000

 Supplemental Disclosure of Non-Cash Transactions:
   Issuance of common stock in connection with
     executive employment contract                            -       25,000
   Issuance of stock in connection with legal
     and consulting agreements                           79,000            -
   Conversion of debenture into stock                 1,310,400            -
   Purchase of equipment through issuance
     of capital leases                                  115,850      122,000
   Issuance of common stock in connection with
     exercise of stock options                                -       26,000
   Conversion of preferred stock into common stock            -      612,500
   Preferred stock dividend                                   -       35,600


      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 four wholly-owned subsidiaries. AHC Chiropractic Clinics,
 Inc. owns and operates  twelve clinics providing medical,  physical therapy,
 and  chiropractic services  in San  Antonio, McAllen,  Laredo,  San  Benito,
 Corpus Christi and Houston, Texas, and, in addition, has  15  clinics in its
 Affiliated  Clinic  Program.  AHC  Physicians  Corporation,  Inc.  owns  and
 operates two medical clinics in San Antonio providing medical services  and,
 in addition,  provides telemedicine  services.  RehabCo,  Inc.,  a  recently
 formed subsidiary (See Footnote  4 Acquisitions), receives commissions  from
 the sale of medical equipment.  AHI Management, Inc. includes the  corporate
 office staff and other related expenses.


 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 accounting  principles  generally  accepted in  the  United  States  of
 America  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 nine months ended  June 30, 2005  are not
 necessarily indicative of the results  to be expected for the full year.  It
 is suggested  that  the  June  30, 2005  financial information  be  read  in
 conjunction with the financial statements and notes thereto included in  the
 Company's Form 10-KSB dated September 30, 2004.


 3.   Summary of Significant Accounting Policies

 Consolidation policy  -  The  accompanying condensed consolidated  financial
 statements  include  the  accounts  of  the  Company  and  its  wholly-owned
 subsidiaries.  All  material  inter-company accounts  and transactions  have
 been eliminated in consolidation.

 Net patient revenues - Revenue is  recognized upon performance of  services.
 Substantially all of the Company's revenues are derived from personal injury
 claims and claims filed on major medical policies and worker's  compensation
 policies.   Allowances  for  discounts  on  current  services  provided  are
 recognized in  the periods  the  related  revenue  is  earned.  Net  patient
 revenues are reported  at the  estimated realizable  amounts from  patients,
 third-party  payors  and  others  for  services  rendered.   Allowances  are
 maintained  at  levels  considered  appropriate  by  management  based  upon
 historical charge-off  experience  and  other factors  deemed  pertinent  by
 management.

 Commissions on equipment sales - RehabCo, Inc. is an authorized  distributor
 for certain  lines  of medical  equipment,  including the  DRX  9000  Spinal
 Decompression System.  Revenue is recognized when the equipment is installed
 at the customer's site.

 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  -  Goodwill  is  accounted  for  according to  the  provisions  of
 Financial Accounting Standard  ("FAS") 142, "Goodwill  and Other  Intangible
 Assets".  This policy requires an impairment test, which is performed by the
 Company on an annual basis.  As of June 30, 2005 and for the three and  nine
 months period then ended, Management has  determined there is no  impairment
 of goodwill.

 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 issuance from the exercise  of
 stock options based on the treasury stock method.  If the potential issuance
 is dilutive, the  average number of  shares of common  stock outstanding  is
 increased.  For the three  and nine month periods  ended June 30, 2004,  the
 effect of the  treasury stock method  was anti-dilutive. For  the three  and
 nine month periods  ended June 30, 2005,  the effect  of the treasury  stock
 method was dilutive but the number of common shares was immaterial.


 4.   Acquisition

 On March 7, 2005, RehabCo, Inc.,  a wholly-owned subsidiary of the  Company,
 acquired  certain  assets  of  Axiom  Marketing  Group,  Inc.   Axiom  is  a
 distributor  of   medical  equipment,   including   the  DRX   9000   Spinal
 Decompression System.  The acquisition was accounted for under the  purchase
 method of  accounting.  The  initial  consideration  was the  equivalent  of
 $333,333 in shares of the American  HealthChoice common stock.  On  June 30,
 2005, the Company terminated  the agreement to acquire  the assets of  Axiom
 Marketing Group, Inc.  Therefore the  assets and equity  were  written  off.
 The Company  intends to  enforce the  terms of  the accompanying  employment
 agreement between the seller and RehabCo,  and seek reimbursement of  salary
 and expenses advanced to the seller under the employment agreement.


 5.   Stockholders' Equity

 During the nine month period ended June 30, 2005, the Company issued 710,000
 shares of common stock in connection with the exercise of stock options  and
 issued 1,250,000 shares in connection with an executive employment contract.

 On  January 3, 2005 the President and CEO of the Company submitted  a notice
 to convert  4,375  shares  of Series  B  Preferred Stock into  common stock.
 Based on an average bid price  of $0.07 for the  common stock,  the  Company
 issued  5,469,000  shares  of common stock in satisfaction of the conversion
 notice.

 On  March 17, 2005 a  holder of  more than  5% but  less than  9.99% of  the
 Company's common stock submitted a notice to convert 1,750 shares of  Series
 B Preferred Stock into common stock.  Based on an average bid price of $0.10
 for the common stock, the Company issued 1,683,000 shares of common stock in
 satisfaction of the conversion notice.

 On March 31, 2005 the Company issued  302,000 shares of common stock to  the
 holders 13,875 shares  of Series B  Preferred Stock in  satisfaction of  the
 semi-annual dividend due March 31, 2005.


 6.   Related Party Transactions

 During the nine months ended June  30, 2005, Mainstream Enterprises, an  LLC
 owned 50% by a holder of more than 5%  but less than 9.99% of the  Company's
 common stock and the President and CEO of the Company, advanced the  Company
 $114,000 in short term loans.  The more than 5% holder advanced the  Company
 $36,000 as an individual.  The  Company intends to satisfy the loans  either
 by cash payments, issuance of stock or a combination of cash and stock.

 In April 2005 the President and CEO of the Company sold 1,000,000 shares  of
 common stock.  The  proceeds  of the  sale were  approximately $113,000,  of
 which $100,000 was loaned to the Company.


 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  June 30, 2005  Compared to Three  Months Ended June  30,
 2004

      Patient Billings.  For  the three months  ended  June 30, 2005, patient
 billings increased from $2,515,000 in 2004  to $2,949,000  in 2005.  Patient
 billings at Texas  owned clinics and  affiliated clinics increased  $184,000
 and $213,000, respectively.  The 2005  period included patient billings  for
 spinal decompression systems in  the amount of  $198,000 with no  comparable
 amount in the 2004  period.  The 2004  period included $161,000 in  billings
 for the New Orleans clinic with no comparable amount in the 2005 period  due
 to the sale of the clinic in September 2004.

      Allowance for Discount on  Billings.  For the  three months ended  June
 30, 2005, allowance for  discount on billings  increased from $1,184,000  in
 2004 to $1,281,000  in 2005.  $194,000  is attributable  to the increase  in
 patient billings in  the amount  of $434,000  offset by  a $97,000  downward
 adjustment (improvement)  in  the  allowance  as  a  percentage  of  patient
 billings  from  47% in  the 2004  period to  43%  in the  2005  period.  The
 adjustment reflects an increase in the  collection percentage on cases  that
 were settled by patient's  attorneys in 2005 compared  to 2004 and a  higher
 overall collection percentage for affiliated and medical clinic billings.

      Commissions  and  Equipment  Rental  Fees.    RehabCo,  a  wholly-owned
 subsidiary of the Company, commenced operations  on March 7, 2005.  For  the
 three months ended June 30, 2005, RehabCo recognized revenue of $17,000.

      Compensation and Benefits.  For the  three months ended June 30,  2005,
 compensation and benefits  decreased from $697,000  in 2004  to $672,000  in
 2005.  Compensation  and  benefits  at  Texas  clinics and corporate  office
 increased $12,000, offset by  $58,000 in compensation  and benefits for  the
 New Orleans clinic in the 2004 period with no comparable amount in the  2005
 period.  The number of employees  at the Texas clinics and corporate  office
 was unchanged  in 2005  compared to  2004.  Compensation  and  benefits  for
 RehabCo were $21,000 in 2005.

      Marketing and Advertising.  For the  three months ended June 30,  2005,
 marketing and advertising increased from $240,000 in 2004 to $319,000 in the
 2005  period.  The  patient  billings  for  the  2005 period  had  a  higher
 percentage of personal injury cases, which carry higher marketing  expenses.
 As discussed above under allowance for discount on billings, the  collection
 percentage on personal  injury cases is  greater than  major medical  cases,
 which  partially  mitigates  the higher  marketing  expense.  Marketing  and
 advertising attributable to RehabCo was $19,000  in the 2005 period and  the
 New Orleans clinic had no marketing expense in the 2004 period.

      General and Administrative.  For the three months ended June 30,  2005,
 general and administrative increased  from $309,000 in  2004 to $336,000  in
 2005.  Due to the related increase in revenue, management fees  attributable
 to patient billings from affiliated clinics were $107,000 in the 2005 period
 compared to $40,000  in the  2004 period.  Legal  and  professional  expense
 increased from $34,000 in the 2004 period to $65,000 in the 2005 period  due
 primarily to investor relation expenses.

      Rent.   For the  three months  ended June  30, 2005,  rent was  $75,000
 compared to $81,000  in the 2004  period.  The  decrease is attributable  to
 rent for the New Orleans clinic.

 Nine Months Ended June 30, 2005 Compared to Nine Months Ended June 30, 2004

      Patient Billings.   For the  nine  months ended  June 30, 2005, patient
 billings increased from $6,990,000 in 2004  to  $8,319,000 in 2005.  Patient
 billings at Texas  owned clinics and  affiliated clinics increased  $595,000
 and $559,000, respectively.  The 2005  period included patient billings  for
 spinal decompression systems in  the amount of  $649,000 with no  comparable
 amount in the 2004  period.  The 2004  period included $474,000 in  billings
 for the New Orleans clinic with no comparable amount in the 2005 period  due
 to the sale of the clinic in September 2004.

      Allowance for Discount on Billings.  For the nine months ended June 30,
 2005, allowance for discount on billings  increased from $3,271,000 in  2004
 to $3,613,000 in 2005.  $586,000 is attributable to the increase in  patient
 billings  in  the  amount  of  $1,329,000  offset  by  a  $244,000  downward
 adjustment (improvement)  in  the  allowance  as  a  percentage  of  patient
 billings from  47% in  the 2004  period  to  43%  in the  2005  period.  The
 adjustment reflects an increase in the  collection percentage on cases  that
 were settled by patient's  attorneys in 2005 compared  to 2004 and a  higher
 overall collection percentage for affiliated and medical clinic billings.

      Commissions  and  Equipment  Rental  Fees.    RehabCo,  a  wholly-owned
 subsidiary of the Company, commenced operations  on March 7, 2005.  For  the
 nine months ended June 30, 2005, RehabCo recognized revenue of $57,000.

      Compensation and Benefits.  For the nine  months  ended  June 30, 2005,
 compensation and benefits increased from $1,987,000 in 2004 to $2,070,000 in
 2005.  Compensation  and  benefits at  Texas  clinics and  corporate  office
 increased $273,000, offset by $212,000 in compensation and benefits for  the
 New Orleans clinic in the 2004 period with no comparable amount in the  2005
 period.  The number of employees  at the Texas clinics and corporate  office
 was  unchanged  in 2005  compared to  2004.  Compensation and  benefits  for
 RehabCo were $72,000 in 2005.

      Marketing and Advertising.  For the nine months  ended  June 30,  2005,
 marketing and advertising increased from $627,000 in 2004 to $887,000 in the
 2005  period.  The  patient  billings  for  the  2005 period  had  a  higher
 percentage of personal injury cases, which carry higher marketing  expenses.
 As discussed above under allowance for discount on billings, the  collection
 percentage on personal  injury cases is  greater than  major medical  cases,
 which  partially  mitigates  the higher  marketing  expense.  Marketing  and
 advertising attributable to RehabCo was $21,000  in the 2005 period and  the
 New Orleans clinic had no marketing expense in the 2004 period.

      General and Administrative.  For the  nine months ended June 30,  2005,
 general and administrative increased  from $814,000 in  2004 to $870,000  in
 2005.  Due to the related increase in revenue, management fees  attributable
 to patient billings from affiliated clinics were $262,000 in the 2005 period
 compared to $101,000  in the 2004  period.  Legal  and professional  expense
 increased from $79,000 in the 2004 period to $138,000 in the 2005 period due
 primarily to investor relation expenses.

      Rent.  For the  nine  months  ended June 30, 2005,  rent  was  $229,000
 compared to $243,000 in  the 2004 period.  The decrease is  attributable  to
 rent for the New Orleans clinic.

 Liquidity and Capital Resources

 For  the  nine  months  ended  June 30, 2005,  net cash  used  in  operating
 activities was $140,000 compared to $39,000  net cash provided by  operating
 activities for the nine months ended June 30, 2004.  For 2005 net income  of
 $595,000 was reduced by  a $820,000 increase in  net operating  assets.  The
 increase in net operating assets and  funding for equipment acquisitions  of
 $85,000 was  provided by  loans of  $250,000.  For  2004  the  net  loss  of
 $907,000 was offset by a $900,000 bad debt loss and the$400,000 increase  in
 accounts receivable  was  funded by  a  corresponding increase  in  accounts
 payable and accrued expenses.

 Net patient billings from the  Company's medical clinics were  approximately
 $4,700,000 for the  nine month period  ended June 30,  2005 and  collections
 were $3,600,000.  The  Company was approximately  $150,000 short of  meeting
 its current obligations for the medical clinics.  Taking into  consideration
 the  180  to  200  days   collection  cycle,  Management  believes   monthly
 collections of patient  billings from its  medical clinic operations  should
 average $500,000  for  the three  month  period ended  September  30,  2005.
 Assuming the achievement of this collection level, cash from medical  clinic
 operations should be adequate to meet current obligations.

 As of June 30, 2005,  the Company  was  current  on all  calendar year  2005
 withholding tax payments due the Internal Revenue Service.  The Company  has
 a calendar 2004 past due obligation of approximately $375,000.  The IRS  has
 agreed to  abate  any further  collection  efforts against  the  Company  or
 officers until October  20, 2005.  The  Company has  committed to obtain  at
 least $400,000 in new financing to satisfy the IRS obligation.

 On April 21, 2005,  AHC Chiropractic Clinics, Inc.  entered into a  purchase
 agreement with Northern Healthcare Capital to sell accounts receivable at  a
 discount from its Katy and Laredo  clinics.  Initially, the Company  intends
 to sell receivables from its Laredo and Katy clinics.  As of June 30,  2005,
 the net advance was approximately $200,000.  In addition, the President  and
 CEO loaned the Company  $100,000 on April 15,  2005 using proceeds from  the
 sale of 1,000,000 shares of common stock.  As discussed earlier,  Management
 believes monthly collections will average  $500,000 per month, which  should
 be adequate to meet current obligations.

 The Company is actively pursuing new  financing in the form of secured  debt
 or  convertible  debentures.  The proceeds  will be  used to  pay  remaining
 payroll taxes, reduce  the $1,132,000 balance  on the  acquisition note  due
 December 31, 2005 and up to $500,000 for acquisitions.

 Forward-Looking Information

 This report  contains  certain forward-looking  statements  and  information
 relating to  the Company  that are  based on  the beliefs  of the  Company's
 management  as  well  as  assumptions  made  by  and  information  currently
 available to the Company's management. When  used in the report, words  such
 as "anticipate," "believe,"  "estimate," "expect,"  "intend," "should,"  and
 similar expressions,  as  they relate  to  the Company  or  its  management,
 identify forward-looking statements.  Such statements  reflect  the  current
 views of  the Company  with respect  to  future events  and are  subject  to
 certain risks, uncertainties,  and assumptions relating  to the  operations,
 results of  operations,  liquidity,  and growth  strategy  of  the  Company,
 including competitive factors  and pricing pressures,  changes in legal  and
 regulatory requirements, interest  rate fluctuations,  and general  economic
 conditions, as well as other factors  described in this report.  Should  one
 or more of  the risks materialize,  or should  underlying assumptions  prove
 incorrect, actual  results  or  outcomes  may  vary  materially  from  those
 described herein as anticipated, believed, estimated, expected, or intended.


                         Part II.  OTHER INFORMATION

 Item 1.  Legal Proceedings

 There have been no material events related to legal proceedings.


 Item 2.  Changes in Securities and Use of Proceeds

 Not applicable


 Item 3.  Defaults upon Senior Securities

 None to report


 Item 4.   Submission of matters to a vote of security holders

 None to report


 Item 5.  Other Information

 None


 Item 6.  Exhibits

 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


                               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: August 15, 2005         By:  /s/ Dr. J.W. Stucki
                               Dr. J.W. Stucki, Chief Executive
                               Officer and President

 Date: August 15, 2005         By:  /s/John C. Stuecheli
                               John C. Stuecheli, Chief Financial
                               Officer andVice President - Finance
                               (Principal Financial and Accounting Officer)