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, 2002

   [   ]    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) 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, 2002, there were outstanding 88,100,766 shares of
 the issuer's Common Stock, par value $.001 per share.

 Transitional Small Business Disclosure Format (check one)

      Yes [ ]        No [X]

<PAGE>

                         AMERICAN HEALTHCHOICE, INC.

                             INDEX TO FORM 10-QSB

                   For the Quarter Ended December 31, 2002




       Part I Financial Information

         Item 1.  Financial Statements

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

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

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

            Notes to Consolidated Financial Statements .....          5


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


       Part II Other Information

         Item 1.  Legal Proceedings ........................          7

         Item 2.  Changes in Securities and Use of Proceeds           7

         Item 3.  Defaults upon Senior Securities ..........          7

         Item 4.  Submission of Matters to a Vote of
                  Security Holders .........................          7

         Item 5.  Other Information ........................          7

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


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

<PAGE>

                        PART I. FINANCIAL INFORMATION

 Item 1. Financial Statements

                         AMERICAN HEALTHCHOICE, INC.
                               AND SUBSIDIARIES

                          CONSOLIDATED BALANCE SHEET
                                 (Unaudited)
                              DECEMBER 31, 2002

                                    ASSETS


 Current Assets:
 Cash                                                          $     16,168
 Accounts receivable, less allowance for doubtful
   accounts of $ 8,070,610                                        6,184,002
 Other current assets                                                53,836
                                                                -----------
       Total current assets                                       6,254,006

 Property and equipment, net                                        305,007
 Goodwill, net                                                    2,348,570
 Other assets                                                        40,120
                                                                -----------
      Total assets                                             $  8,947,703
                                                                ===========

                  LIABILITIES AND STOCKHOLDERS' EQUITY

 Current Liabilities:
 Notes payable and capital lease obligation                    $    922,597
 Convertible debentures                                           1,310,400
 Bankruptcy claims                                                1,175,150
 Accrued payroll and payroll taxes                                  463,010
 Accounts payable and accrued expenses                              401,224
                                                                -----------
      Total current liabilities                                   4,272,381

 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; 88,100,766 shares issued and outstanding              88,100
 Options to acquire common stock                                      8,000
 Additional paid-in capital                                      20,534,684
 Accumulated deficit                                            (15,955,462)
                                                                -----------
      Total stockholders' equity                                  4,675,322
                                                                -----------
      Total liabilities and stockholders' equity               $  8,947,703
                                                                ===========


      See accompanying notes to these consolidated financial statements.

<PAGE>
                         AMERICAN HEALTHCHOICE, INC.
                               AND SUBSIDIARIES

                    CONSOLIDATED STATEMENTS OF OPERATIONS
                                 (Unaudited)


                                                 Three Months Ended December 31,
                                                 -------------------------------
                                                      2001             2002
                                                   ----------       ----------
 Revenues:
   Patient billings                               $ 1,832,179      $ 2,104,070
   Allowance for discount on billings                 667,478          929,525
                                                   ----------       ----------
     Net revenues                                   1,164,701        1,174,545

 Operating Expenses:
   Compensation and benefits                          726,114          668,515
   Depreciation and amortization                       43,137            7,782
   General and administrative                         365,528          382,158
   Rent                                                94,962           95,437
                                                   ----------       ----------
     Total operating expenses                       1,229,741        1,153,892

Other Income (Expense):
  Interest expense and other costs of borrowing       (20,288)         (19,504)
                                                   ----------       ----------
     Total other expense                              (20,288)         (19,504)

                                                   ----------       ----------
Net Income (Loss)                                 $   (85,328)     $     1,149
                                                   ==========       ==========

 Basic and Diluted Net Income (Loss) Per Share    $         -      $         -

 Weighted Average Common Shares Outstanding        93,825,766       88,100,766


      See accompanying notes to these consolidated financial statements.

<PAGE>

                             AMERICAN HEALTHCHOICE, INC.
                                  AND SUBSIDIARIES

                        CONSOLIDATED STATEMENTS OF CASH FLOWS
                                     (Unaudited)



                                                 Three Months Ended December 31,
                                                 -------------------------------
                                                      2001             2002
                                                   ----------       ----------
 Cash Flows From Operating Activities:
 Net income (loss)                                $   (85,328)     $     1,149
 Adjustments to reconcile net income (loss)
   to net cash provided by (used in) operating
   activities:
   Allowance for doubtful accounts                    667,478          929,525
   Employee compensation-stock                         21,900           12,000
   Depreciation and amortization                       43,136            7,782
 Change in operating assets and liabilities, net:
   Accounts receivable-trade                         (587,337)      (1,004,279)
   Other current assets                               (30,028)           5,508
   Accounts payable and accrued expenses              (32,735)          50,635
                                                   ----------       ----------
        Net cash provided by (used in)
          operating activities                         (2,914)           2,320

 Cash Flows From Investing Activities:
   Property and equipment                             (13,095)          (2,089)
                                                   ----------       ----------
        Net cash used in investing activities         (13,095)          (2,089)

 Cash Flows From Financing Activities:
   Proceeds from notes payable                              -            5,000
   Payments on notes payable and capital leases        (5,761)            (359)
                                                   ----------       ----------
        Net cash provided by (used in)
          financing activities                         (5,761)           4,641
                                                   ----------       ----------
 Net Increase (Decrease) In Cash                      (21,770)           4,872
 Cash At Beginning Of Year                             37,303           11,296
                                                   ----------       ----------
 Cash At End Of Period                            $    15,533      $    16,168
                                                   ==========       ==========
 Supplemental Disclosure Of Cash Flow Information:
   Income taxes paid                              $       610      $     2,000
   Interest paid                                          684              500

      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  three months ended December 31, 2002  are
 not necessarily indicative of the results to be expected for the full  year.
 It is suggested that the December 31, 2002 financial information be read  in
 conjunction with the financial statements and notes thereto included in  the
 Company's Form 10-KSB dated September 30, 2002.


 3.   Summary of Significant Accounting Policies

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

 Net patient revenues - Revenue is  recognized upon performance of  services.
 Substantially all  of  the  Company's  revenues  are  derived  from  patient
 insurance settlements,  claims filed  on  major medical  policies,  worker's
 compensation policies, Medicare, and Medicaid.  Allowances for discounts  on
 services provided  are recognized  in the  periods  the related  revenue  is
 earned.  Allowances  are  maintained  at  levels considered  appropriate  by
 management based  upon historical  charge-off experience  and other  factors
 deemed pertinent by management.

 Property and equipment, net - Property and equipment are stated at cost less
 accumulated  depreciation.  Depreciation  is  provided  over  the  estimated
 useful lives  of  the  related assets,  primarily  using  the  straight-line
 method.  Leasehold improvements are amortized over the shorter of the  lease
 term or the estimated useful lives of the improvements.

 Goodwill -  The  Company  elected  to  adopt  the  provisions  of  Financial
 Accounting Standard ("FAS") 142, "Goodwill  and Other Intangible Assets"  as
 of October  1, 2001.  This  policy  requires  an impairment  test, which  is
 performed by the Company on an annual basis.

 Earnings per  share  - Basic  earnings  per  share are  computed  using  the
 weighted-average number of common shares outstanding.  Diluted earnings  per
 share are  computed using  the  weighted-average common  shares  outstanding
 after giving effect to  potential common stock from  stock options based  on
 the treasury  stock  method,  plus  other  potentially  dilutive  securities
 outstanding.  If the result of assumed conversions is dilutive, net earnings
 are adjusted for  the interest expense  on the convertible  debt, while  the
 average shares of common stock outstanding are increased.


 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, 2002 Compared to Three Months Ended December
 31, 2001

      Patient Billings.   For the  three  months  ended  December  31,  2002,
 patient billings increased from  $1,832,000 in 2001  to $2,104,000 in  2002.
 The increase is attributable to an increase in patient billings for personal
 injury cases  in  the  San Antonio  and  Houston  clinics  of  approximately
 $450,000 offset by a decrease in  patient billings for the clinics  acquired
 in September 2000 in the amount of $230,000.

      Allowance for  Discount  on  Billings.   For  the  three  months  ended
 December 31,  2002,  allowance  for  discount  on  billings  increased  from
 $667,000 for the same period in 2001 to  $929,000 in 2002.  The increase  is
 attributable to an  upward adjustment in  the allowance as  a percentage  of
 patient billings from 36% in the 2001 period to 44% in the 2002 period.  The
 adjustment reflects an increase in the  number of new personal injury  cases
 written off in  the 2002 period  due primarily to  the absence of  insurance
 coverage.  The collection percentage on cases that were settled by patient's
 attorneys in 2002 was comparable to 2001.

      Compensation and Benefits.   For the  three months  ended December  31,
 2002, compensation and benefits decreased from $726,000 in 2001 to  $669,000
 in  2002.  The  decrease  is attributable  to  personnel reductions  at  the
 clinics and corporate office,  which reduced 2002 expense  in the amount  of
 $31,000 and $26,000, respectively.

      Depreciation and Amortization.  For the three months ended December 31,
 2002, depreciation and amortization decreased from $43,000 in 2001 to $8,000
 in 2002.  The decrease was primarily due to amortization of financing  costs
 in the  amount of  $22,000 in  the 2001  period.  The  2002  period  has  no
 amortization of  financing costs  since the  costs were  amortized in  prior
 years.

      General and Administrative.   For the three  months ended December  31,
 2002, general and administrative increased from $366,000 in 2001 to $382,000
 in 2002.  Marketing  and  advertising expenses  in  the  Texas  chiropractic
 clinics increased  by approximately  $35,000 offset  by decreases  in  other
 expense categories.

      Rent.  For the three months  ended December 31, 2002, rent was  $95,000
 compared to $95,000 in the 2001 period.  There  were no facility changes  in
 the 2002 period compared to the 2001 period.


 Liquidity and Capital Resources

 For the three months ended December 31, 2002, net cash provided by operating
 activities was $2,000 compared to net  cash used in operating activities  in
 the  amount of $3,000 for  the three months ended  December 31, 2001.  There
 were no significant  differences in  the 2002  period compared  to the  2001
 period.

 During the year ended September 30, 2002, cash generated from operations was
 sufficient to  meet  current  obligations  including  capital  expenditures.
 However, funds were not available to satisfy bankruptcy plan payments due in
 September 2001 and September  2002.  At September  30, 2002 the Company  was
 delinquent on payments due to unsecured  creditor claims and insider  claims
 in  the amounts  of $356,000 and  $440,000, respectively.  In addition,  the
 loan in the amount of $837,000 issued in connection with the acquisition  of
 three clinics in September  2000 was due and  payable on September 1,  2002.
 The amount past  due including  unpaid interest  is approximately  $970,000.
 During the three months ended December  31, 2002, funds were only  available
 to meet current obligations.

 In the  case of  the bankruptcy  payments, fewer  than five  creditors  have
 pursued collection of claims due as of September 30, 2002.  The Company  was
 able to meet  these payments and  avoid legal action  on the  part of  these
 creditors.  At the present time, Management does not foresee any  individual
 creditors initiating legal action in regards to past due payment of  claims.
 The Company  is also  in the  process  of negotiating  an extension  on  the
 principal  and  interest  due  the  note  holder.   However,  there  are  no
 assurances that an individual creditor or group of creditors will not pursue
 legal action which could result in adverse consequences to the Company.

 Before March 31, 2003, Management expects  to amend the note payable  issued
 in connection with  the acquisition of  three clinics to  allow for  payment
 over a longer period of time.  In addition, Management continues to focus on
 increasing payments on  personal injury  case settlements  and increase  the
 number of worker's  compensation cases,  which result  in higher  settlement
 amounts per case compared to personal injury cases.  As a result a result of
 these and  other actions  to improve  cash  flow, overall  liquidity  should
 improve during the first six months of fiscal 2003.


 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 14, 2003.


 Item 2.  Changes in Securities and Use of Proceeds

 Not applicable


 Item 3.  Defaults upon Senior Securities

 None to report


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

 None to report


 Item 5.  Other Information

 None


 Item 6.  Exhibits and Reports on Form 8-K

  99.1      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.

  99.2      Certification pursuant to 18 U.S.C. Section 1350, as adopted
            pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 for
            John C. Stuecheli, Vice President and Chief Financial Officer.

 No Form 8-K Reports were filed during the quarter ended December 31, 2002.



                               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, 2003       By:  /s/ Dr. J.W. Stucki
                               Dr. J.W. Stucki, Chief Executive
                               Officer and President

 Date: February 14, 2003       By:  /s/John C. Stuecheli
                               John C. Stuecheli, Chief Financial Officer and
                               Vice President - Finance
                               (Principal Financial and Accounting Officer)