UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q

(Mark One)

[ X ]    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
         SECURITIES EXCHANGE ACT OF 1934

         For the quarterly period ended December 31, 1995 OR

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

         For the transition period from _____________ to ___________

Commission File Number:    0-15352

                                 US SERVIS, Inc.
             (Exact name of registrant as specified in its charter)

         DELAWARE                                    22-2467332
(Sate or other jurisdiction of       (I.R.S. Employer or Identification Number)
incorporation of organization

                 414 Eagle Rock Avenue, West Orange, NJ                07052
                 (Address of Principal Executive Office)             (Zip Code)

                                  (201) 731-9252
            (Registrant's telephone number, including area code)

                         (MICRO Healthsystems, Inc.)
                         (Registrant's Former Name)

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 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 _______

                APPLICABLE ONLY TO ISSUERS INVOLVED In BANKRUPTCY
                   PROCEEDINGS DURING THE PRECEDING FIVE YEARS

Indicate  by check mark  whether  the  registrant  has filed all  documents  and
reports  required  to be  filed by  Section  12,  13 or 15(d) of the  Securities
Exchange Act of 1934 subsequent to the  distribution of securities  under a plan
confirmed by a court.
                                             Yes   _______          No _______

                      APPLICABLE ONLY TO CORPORATE ISSUERS

At February 8, 1996, the registrant had outstanding 6,296,137 outstanding shares
of Common Stock, $0.01 par value.

<PAGE>


                        US SERVIS, INC. AND SUBSIDIARIES

                                      INDEX

<TABLE>
<S>                                                                       <C>
                                                                       Page No.

PART I - FINANCIAL INFORMATION                                             1

         CONSOLIDATED BALANCE SHEET AT DECEMBER 31, 1995 AND
         MARCH 31, 1995                                                    2

         CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE NINE AND
         THREE MONTHS ENDED DECEMBER 31, 1995 AND 1994                     3

         CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS'
         EQUITY FOR THE NINE MONTHS ENDED DECEMBER 31, 1995                4

         CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS
         ENDED DECEMBER 31, 1995 AND 1994                                 5,6

         NOTES TO CONSOLIDATED FINANCIAL STATEMENT                        7-9

         MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
         CONDITION AND RESULTS OF OPERATIONS                             10-13


PART II - OTHER INFORMATION                                              14-16


SIGNATURES                                                                 17


EXHIBIT INDEX                                                            18-21


</TABLE>
<PAGE>




                                     PART I

                              FINANCIAL INFORMATION


1.       Consolidated Financial Statements as at December 31, 1995

         The  consolidated  balance  sheet as of March 31, 1995 has been derived
         from the audited  Consolidated Balance Sheet contained in the Company's
         Form 10-K and is presented for comparative purposes. Certain items have
         been  reclassified  to  conform  to  the  current   presentation.   The
         accompanying  consolidated financial statements presume that users have
         read the audited  consolidated  financial  statements  of the preceding
         fiscal  year.  Accordingly,  footnotes  which would have  substantially
         duplicated such disclosures have been omitted.

         The interim  consolidated  financial statements reflect all adjustments
         which are, in the opinion of management, necessary for a fair statement
         of the results for interim periods presented.  Such interim adjustments
         consist  solely  of  normal  recurring  adjustments.   The  results  of
         operations for interim  periods are not  necessarily  indicative of the
         results to be expected for a full year.









                                      1  



<PAGE>

US SERVIS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
<TABLE>
<S>                                                                          <C>                      <C>                         
                                                                               December 31,              March 31,
                                                                                   1995                     1995
                                                                             ------------------------------------------
                                            ASSETS                              (Unaudited)
CURRENT ASSETS
   Cash and equivalents                                                             $7,330,000              $4,121,000
   Accounts receivable, less allowance for doubtful
     accounts of $476,000 and $206,000                                               3,059,000               2,867,000
  Current maturities of notes receivable                                               185,000                 324,000
   Inventories                                                                           6,000                  18,000
   Prepaid and refundable income taxes                                               2,029,000               2,000,000
   Deferred income taxes                                                               264,000               1,014,000
   Prepaid expenses and other current assets                                           741,000                 448,000
                                                                             ------------------       -----------------
             Total Current Assets                                                   13,614,000              10,792,000
                                                                             ------------------       -----------------

PROPERTY AND EQUIPMENT                                                                 986,000               1,235,000
                                                                             ------------------       -----------------

OTHER ASSETS:
   Long-term maturities of notes receivable                                              -                     143,000
   Software technology:
      Purchased, less accumulated amortization of
      $32,000 at December 31, 1995                                                     143,000                  50,000
   Developed, less accumulated amortization
      of $233,000 and $163,000                                                         169,000                 239,000
   Goodwill, less accumulated amortization of
      $266,000 and $193,000                                                          3,679,000               3,552,000
   Deferred income taxes                                                                72,000                  72,000
   Other                                                                               280,000                  29,000
                                                                             ------------------       -----------------
               Total Other Assets                                                    4,343,000               4,085,000
                                                                             ------------------       -----------------

                                                                                   $18,943,000             $16,112,000
                                                                             ==================       =================
                              LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:
   Accounts payable                                                                   $398,000                $530,000
   Accrued payroll                                                                     359,000                 567,000
   Accrued restructuring charges                                                     1,212,000               1,664,000
   Other accrued expenses                                                            1,239,000                 852,000
   Deferred income                                                                     284,000                 651,000
   Customers' deposits                                                                 105,000                 121,000
   Other current liabilities                                                           267,000                  50,000
                                                                             ------------------       -----------------
              Total Current Liabilities                                              3,864,000               4,435,000
                                                                             ------------------       -----------------

ACCRUED RESTRUCTURING CHARGES                                                          836,000               1,770,000
                                                                             ------------------       -----------------

COMMITMENTS AND CONTINGENCIES

REDEEMABLE PREFERRED STOCK:
   Convertible Redeemable Preferred Stock,
   par value $0.01 per share, 10,000,000 shares
   authorized, 1,500,000 issued and outstanding
   (Liquidation preference  $6,107,000)                                              5,982,000                  -
                                                                             ------------------       -----------------

SHAREHOLDERS' EQUITY:
   Common stock $.01 par value; 30,000,000 shares
   authorized; 6,312,000 and 6,257,000 shares issued                                    63,000                  63,000
   Capital in excess of par value                                                   14,847,000              14,664,000
   Unearned compensation                                                              (252,000)               (742,000)
   Retained earnings (deficit)                                                      (5,011,000)             (2,654,000)
   Subscription receivable                                                            (140,000)               (140,000)
   Note receivable - related party                                                  (1,187,000)             (1,225,000)
                                                                             ------------------       -----------------
                                                                                     8,320,000               9,966,000
   Less Treasury Stock at cost: 15,700 shares                                           59,000                  59,000
                                                                             ------------------       -----------------
              Total Shareholders' Equity                                             8,261,000               9,907,000
                                                                             ------------------       -----------------

                                                                                   $18,943,000             $16,112,000
                                                                             ==================       =================
See accompanying notes to consolidated financial statements.
</TABLE>
                                                                2
<PAGE>

               US SERVIS, INC. AND SUBSIDIARIES                 
            CONSOLIDATED STATEMENTS OF OPERATIONS                       
                         (UNAUDITED)                    
<TABLE>
<S>                                                                <C>                     <C>   
                        
                                                                           NINE MONTHS ENDED         
                                                                              DECEMBER 31,             
                                                                    -----------------------------------
                                                                        1995                  1994
                                                                    ------------           -------------
                        
REVENUES                                                             12,183,000             11,976,000
                                                                    ------------           -------------                         
EXPENSES:                       
  Salaries, wages and benefits                                        9,163,000              9,015,000
  Other selling, general and administrative                           6,559,000              5,452,000
  Depreciation and amortization                                         476,000                929,000
  Restructuring charges (gains)                                        (589,000)              7,021,000
  Interest expense                                                       52,000                  2,000
                                                                    ------------            ------------      
     Total expenses                                                  15,661,000             22,419,000
                                                                    ------------            ------------ 
                        
LOSS BEFORE INCOME TAXES                                             (3,478,000)            (10,443,000)
                        
PROVISION (BENEFIT) FOR FEDERAL AND STATE INCOME TAXES               (1,228,000)             (3,215,000)
                                                                    ------------            ------------
NET LOSS                                                             (2,250,000)             (7,228,000)
                                                                    ============            ============         
NET LOSS PER COMMON SHARE                                              (0.38)                   (1.21)
                                                                    ============            ============  
WEIGHTED AVERAGE NUMBER OF SHARES                       
   COMMON SHARES OUTSTANDING                                          6,278,000               5,958,000
                                                                    ============            ============
                        
                        
                                                                              THREE MONTHS ENDED         
                                                                                 DECEMBER 31,
                                                                    --------------------------------------            
                                                                        1995                   1994
                                                                    -----------              ------------
REVENUES                                                              4,267,000              3,699,000
                                                                    ------------             ------------   
EXPENSES:                       
  Salaries, wages and benefits                                        3,079,000              3,068,000
  Other selling, general and administrative                           2,116,000              1,912,000
  Depreciation and amortization                                         161,000                314,000
  Restructuring charges (gains)                                               0              7,021,000
  Interest expense                                                       16,000                  2,000
                                                                    ------------            ------------
     Total expenses                                                   5,372,000             12,317,000
                                                                    ------------            ------------
LOSS BEFORE INCOME TAXES                                             (1,105,000)             (8,618,000)
                        
PROVISION (BENEFIT) FOR FEDERAL AND STATE INCOME TAXES                 (381,000)             (2,422,000)
                                                                    ============            ============ 
NET LOSS                                                               (724,000)             (6,196,000)
                                                                    ============            ============ 
NET LOSS PER COMMON SHARE                                               (0.13)                 (1.01)
                                                                    ============            ============
WEIGHTED AVERAGE NUMBER OF                      
   COMMON SHARES OUTSTANDING                                       
                                                                      6,296,000               6,133,000
                                                                    ------------            ------------ 
                        
                        
                        
See accompanying notes to consolidated financial statements.                    
                        
                        
</TABLE>

<PAGE>



                   US SERVIS, INC. AND SUBSIDIARIES            
         CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY 
                FOR THE NINE MONTHS ENDED DECEMBER 31, 1995           
                                (UNAUDITED)                       
                                                                       
<TABLE>                                                               
                                                           
                                                                    
                                                                       
<S>                            <C>                  <C>           <C>           <C>         <C>            <C>           <C>     
                                                     CAPITAL IN                                            NOTE           
                                  COMMON STOCK       EXCESS OF      UNEARNED    RETAINED     SUBSCRIPTION  RECEIVABLE -  TREASURY
                                SHARES   PAR VALUE   PAR VALUE    COMPENSATION  EARNINGS     RECEIVABLE    RELATED PARTY   STOCK
                               ---------  --------   ----------    -----------  --------     ------------  -------------  -------
BALANCE, MARCH 31, 1995        6,257,000  63,000     14,664,000    (742,000)    (2,654,000)   (140,000)    (1,225,000)     59,000
                                     
NINE MONTHS ENDED                
DECEMBER 31, 1995:       
                                
  Amortization of officer
    stock compensation                                              490,000     
                                            
  Shares issued in accordance with                              
    amended plan of merger        55,000                200,000 
                                   
  Cost of issuing additional shares                     (17,000) 
                
  Allowance for loan collateral impairment                                                                     38,000  
                                          
  Acretion equal to accrued dividends                 
    on redeemable preferred stock                                                 (107,000)  
                                          
  Net Loss                                                                      (2,250,000)            
                               ---------  ------     ----------    --------     -----------   ---------    ----------      ------
BALANCE, DECEMBER 31, 1995     6,312,000  63,000     14,847,000    (252,000)    (5,011,000)   (140,000)    (1,187,000)     59,000
                               ---------  ------     -----------   ---------    -----------   ---------    -----------     ------
                                                  
                                                   
     See accompanying notes to consolidated financial statements                                             
                                             
                                          
</TABLE>
<PAGE>
                                              US SERVIS, INC. AND SUBSIDIARIES
                                         CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                     (UNAUDITED)
<TABLE>
<S>                                                                            <C>                    <C>  

                                                                                      NINE MONTHS ENDED
                                                                                         DECEMBER 31, 
                                                                                 1995                     1994
CASH FLOWS FROM OPERATING ACTIVITIES:
        Net loss                                                               (2,250,000)             (7,228,000)
        Adjustments to reconcile net loss to net cash flows
        from operating activities:
                Depreciation and amortization of property and equipment           310,000                 303,000
                Amortization of software technology                                86,000                 546,000
                Amortization of goodwill                                           73,000                  71,000
                Amortization of covertible preferred issue costs                    5,000                   -
                Property, plant and equipment sold                                    -                    30,000
                Provision for losses on accounts receivable                       445,000                  20,000
                Deferred income taxes                                                 -                (1,969,000)
                Amortization of officer stock compensation                        490,000                 145,000
                Allowance for impairment of related party note                     38,000                 201,000
                Changes in operating assets and liabilities-
                                Write off assets in restructuring                     -                 2,628,000
                                Accounts receivable                              (620,000)                527,000
                                Note and installment receivables                  282,000                 368,000
                                Inventories                                        12,000                  (3,000)
                                Prepaid and refundable income taxes               721,000                (902,000)
                                Prepaid expenses and other current assets          45,000                  33,000
                                Other assets                                     (251,000)                  9,000
                                Accounts payable                                 (132,000)                   -
                                Accrued payroll                                  (208,000)                   -
                                Other accrued expenses                            387,000                (164,000)
                                Accrued restructuring                          (1,386,000)              3,998,000
                                Deferred income                                  (408,000)                225,000
                                Income taxes payable                                 -                     53,000
                                Customer deposits and other current liabilities   215,000                  58,000
                                  Net cash flows from operating activities:    (2,146,000)             (1,051,000)

CASH FLOWS FROM INVESTING ACTIVITIES:
        Purchase of treasury stock                                                   -                    (59,000)
        Increase in software technology                                          (125,000)               (134,000)
        Sale of equipment                                                         293,000                  82,000
        Purchase of property and equipment                                       (314,000)               (580,000)
                                  Net cash flows from investing activities       (146,000)               (691,000)

CASH FLOWS FROM FINANCING ACTIVITIES:
        Proceeds from convertible preferred stock offering                      6,000,000                   -
        Issue costs for convertible preferred stock                              (130,000)                  -
        Payments of debt                                                          (14,000)               (120,000)
        Cost of listing additional shares                                         (17,000)                  -
        Loans to officers                                                        (338,000)                  -
                                  Net cash flows from financing activities      5,501,000                (120,000)

NET CHANGE IN CASH AND EQUIVALENTS                                              3,209,000              (1,862,000)

CASH AND EQUIVALENTS, BEGINNING OF PERIOD                                       4,121,000               4,483,000

CASH AND EQUIVALENTS, END OF PERIOD                                             7,330,000               2,621,000

</TABLE>

See accompanying notes to consolidated financial statements.


                                                        5
<PAGE>




                                    US SERVIS, INC. AND SUBSIDIARIES
                                  CONSOLIDATED STATEMENTS OF CASH FLOWS
                                               (UNAUDITED)
                                               (concluded)
<TABLE>
<S>                                                                          <C>                     <C>                      

                                                                             NINE MONTHS ENDED
                                                                                 DECEMBER 31,
                                                                                 1995                    1994


SUPPLEMENTAL INFORMATION:
        Interest paid                                                               3,000                   2,000

        Income taxes paid (refunded)                                           (1,949,000)                   -

        Deferred gain on sale-leaseback                                            41,000                    -

        Purchase of treasury stock                                                   -                     59,000

        Value assigned to goodwill relating to shares of common
                stock issued for prior year business acquisition                  200,000                    -

        Transferred from deferred income taxes to prepaid and
                refundable income taxes                                           750,000                    -

        Gross proceeds from issue of convertible preferred stock                6,000,000                    -

        Capitalized issue costs for convertible preferred stock                   130,000                    -

        Acretion equal to accrued dividends on convertible
                preferred stock                                                   107,000                    -


</TABLE>

See accompanying notes to consolidated financial statements.


<PAGE>
                        US SERVIS, INC. AND SUBSIDIARIES
                    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 December 31, 1995
                                    (UNAUDITED)



Note A - Basis of Presentation:

The consolidated  financial statements include all the accounts of 
US SERVIS, Inc. (f/k/a MICRO  Healthsystems,  Inc.) and its  wholly-owned 
subsidiaries  (collectively,  the  "Company").  All  significant  intercompany 
transactions  have been eliminated.

Note B - Nature of Business:

The  Company  is  a  leading  provider  of  business   management  services  and
information  management  systems.  The Company's primary markets are physicians,
physician  delivery  systems,   ambulatory  departments  and  at  risk  networks
associated  with hospital driven  integrated  delivery  systems.  As part of its
business management services, the Company has traditionally provided on-site and
off-site personnel, billing and accounts receivable management services together
with  information  systems and  systems  integration  services  related to these
business  activities.  The Company is  currently  strengthening  these areas and
expanding  its  services  and  information  systems to  include:  financial  and
administrative management, clinical information,  systems support and management
and  operational   consulting  services  in  critical  areas  such  as  at  risk
contracting and contract  management,  revenue enhancement and re-engineering of
the  billing and A/R  management  activities.  The  Company,  through  strategic
alliances,  has expanded its  information  systems  offerings to include managed
care and electronic  medical records systems.  The Company has also historically
been a provider  of clinical  information  systems  products  and  services  for
various hospital inpatient departments.  The Company will be phasing out of this
activity. (See Note C below)

Note C - Restructuring Charges

During fiscal 1995, the Company,  under the direction of a new Chairman and CEO,
undertook a substantial  restructuring  of its business  operations in an effort
to: refocus and redirect  resources away from  clinical,  inpatient  information
systems products and towards contract management, physician practice management,
ambulatory  care  and  software  integration   business  services;   consolidate
operations;  negotiate a termination of the  employment  agreement of the former
chairman; downsize, and sell underperforming assets. These actions resulted in a
$6.8  million,  pre-tax,  restructuring  charge in fiscal  1995 and  contributed
significantly to the Company's $8.1 million after tax net loss.

As the result of revised  cost  estimates  for  certain  items  included  in the
original  restructuring  charge,  the Company  recorded a restructuring  gain of
$589,000 for the nine months ended  December 31,  1995.  The  components  of the
restructuring gain were as follows:

                                     7


<PAGE>

<TABLE>
<CAPTION>

                                                   
                                                    Three Months Ended                    Nine Months Ended
                                                     December 31, 1995                    December 31, 1995
<S>                                                <C>                                   <C>

Decrease in termination costs related to
  former chairman                                    $       -                             $148,000

Decrease in estimated facilities close
  down costs                                               75,000                           830,000

Decrease in estimated legal costs
  associated with the restructuring                       150,000                           150,000

Increase in severance costs                              (225,000)                         (539,000)

Net restructuring gain                               $      -                              $589,000


The changes to the liabilities for accrued restructuring charges during the nine
months ended December 31, 1995, were as follows:

                                                     
                                                         Current                           Long-Term

Balance, March 31, 1995                              $1,664,000                          $1,770,000

Payments                                               (646,000)                             -

Transferred to allowance for doubtful
accounts and other current liabilities                 (200,000)                             -

Net restructuring gain                                     -                               (589,000)

Interest on deferred charges                             12,000                              37,000

Transferred to current from long-term                   382,000                            (382,000)

Balance, December 31, 1995                           $1,212,000                            $836,000
</TABLE>


The Company  expects the  restructuring  to be completed  during the fiscal year
ending  March 31,  1996,  although  payments  of  certain  items -  principally,
termination  costs related to the former Chairman and selected  severance costs,
will continue for several years.

Note D - Convertible Redeemable Preferred Stock

On October  12,  1995,  the Company  issued,  through a private  placement,  (i)
1,500,000 shares of Series A Convertible  Redeemable  Preferred Stock, par value
$0.01 per share, (ii) warrants to purchase up to 390,000 shares of the Company's
Common  Stock at an  exercise  price of $0.10 per share,  and (iii)  warrants to
purchase up to 198,000 shares of the Company's Common Stock at an exercise price
of $3.50 per share,  for an aggregate  purchase price of $6,000,000.  All of the
$0.10  warrants  are  subject  to  cancellation  by the  Company  under  certain
circumstances.

As of December 31,  1995,  the carrying  value of the  preferred  stock has been
reduced by $125,000 of  unamortized  stock issue costs and increased by $107,000
of acretion equal to accrued dividends.  Dividends on the preferred stock accrue
at a rate equal to 8% per annum,  compounded  quarterly.  If not  earlier  paid,
preferred  dividends  are  payable  on i)  redemption,  ii)  conversion  or iii)
dissolution  of the  Company.  If  not  previously  converted,  the  Company  is
obligated to redeem the preferred stock at a redemption price of $4.00 per share
plus  accrued  dividends in six equal  semi-annual  installments  commencing  on
October 12, 2000.

After October 12, 1996, the preferred  stock is convertible at the option of the
holders into an equal number of common  shares and under  certain  circumstances
the Company may require conversion.  In the event of the Company's  liquidation,


                                       8

<PAGE>
the  holders of the  preferred  stock are  entitled  to $4.00 per share plus all
accumulated and unpaid dividends.

Note E - Net Loss Per Common Share

The computation of fully diluted net loss per share was  antidilutive in each of
applicable  the periods  presented;  therefore no separate  calculation of fully
diluted loss per share was reported. Net loss per common share was determined by
dividing net loss, as adjusted,  by applicable shares outstanding.  The loss was
adjusted by  acretions  equal to accrued  dividends on the  Company's  preferred
stock in the  amount  of  $107,000  for both the  nine and  three  months  ended
December, 31, 1995.


Note F - Subsequent Event

In December of 1995 the Company was notified that one of its business management
services  contracts  representing  approximately  8% of the Company's  revenues,
would  not be  renewed  so that the  client  could  pursue  a plan to bring  its
outpatient  billing and accounts  receivable  activities  in house.  The Company
anticipates  that revenues from this client will decline over the next ninety to
one hundred and eighty days as the December 1995 accounts  receivable balance is
collected.  The  Company  anticipates  a modest  reduction  in  manpower  as the
contract winds down.


                                       9

<PAGE>



Item 2:  Management's Discussion and Analysis of Financial Condition and 
          Results of Operations

                                     GENERAL

During  October of 1994,  the  Company  hired Mr.  Graham O. King as its 
Chairman  and Chief  Executive  Officer.  Mr.  King was previously  President
of Shared Medical Systems  Corporation,  the largest healthcare  information
services company in the United States.  Under Mr. King's leadership, the 
Company developed a plan to:

     Refocus on its  expertise  in  business  management  services,  proprietary
     software,  and proven ability to improve operating efficiency and cash flow
     through performance based management agreements.

     Recapitalize  the Company in order to provide  resources to expand  through
     internal growth and selected acquisitions.

     Recruit new,  experienced  individuals  to the Board of  Directors  and the
     senior management team.

     Expand and upgrade the  Company's  sales,  marketing  and customer  service
     departments and instill a "Commitment to Customer Service" mentality.

     Build a sales and contract revenue backlog.

     Develop a strategy with specific  programs to  strengthen  employee  morale
     through  education,  better  communications  and the  introduction of Total
     Quality Management principles.

     Downsize and divest under-performing assets.

During the first nine months of fiscal  1996,  the Company has made  progress in
the implementation of several elements of this plan.

<TABLE>
<CAPTION>
                                             LIQUIDITY AND CAPITAL RESOURCES

                                                            
                                                  December 31, 1995                 March 31, 1995

               <S>                                <C>                                <C>  
               Total Current Assets                  $13,614,000                      $10,792,000


               Total Current Liabilities               3,864,000                        4,435,000


               Working Capital                        $9,750,000                       $6,357,000


               Working Capital Ratio to 1                 3.5                              2.4

</TABLE>

During the nine months  ended  December  31,  1995,  Working  Capital  increased
$3,393,000 and Cash and Equivalents increased  $3,209,000,  primarily due to the
issuance of $6 million of preferred stock and an income tax refund of $1,949,000
offset by the loss sustained  during the first nine months,  payments made under
the Company's  restructuring  plan, a modest increase in accounts receivable and
modest investments in capital assets.

The  Company  expects  that its  cash  position  will  decrease  as a result  of
continued operating losses and investments in capital assets.


                                      10         
<PAGE>
<TABLE>
<CAPTION>

                              RESULTS OF OPERATIONS

                                    REVENUES

<S>                                                <C>                                      <C>      
                                                              Nine Months Ended December 31,


                                                        1995                                     1994

Hospital Services                                    $5,783,000                               $5,768,000

Physician Services                                    4,822,000                                4,695,000

TPA Services                                            258,000                                    -

Clinical Systems                                      1,171,000                                1,369,000

Interest and Other                                      149,000                                  144,000

                                                    $12,183,000                              $11,976,000
</TABLE>

For the nine months ended  December 31, 1995, the Company's  revenues  increased
$207,000 when compared to the same period in the prior fiscal year. Contributing
to this increase were increases in revenues of $127,000 from physician  services
and $258,000 from TPA Services provided to MetroPlus Health Plan  ("MetroPlus").
These  increases were partially  offset by a $198,000  decrease in revenues from
clinical  services  which,  as discussed in the Company's  annual report on Form
10-K,  (Item 1 - Business - Company  Overview)  is a business  activity  that is
being  phased out so that the  Company  can focus more  intensely  on  providing
practice  management  services to physicians and contract management services to
hospitals.

<TABLE>
<S>                                                 <C>                                      <C>
                                                                   Three Months Ended December 31,


                                                        1995                                     1994


Hospital Services                                     $1,832,000                               $1,777,000


Physician Services                                     1,692,000                                1,509,000


TPA Services                                             258,000
                                                                                    -


Clinical Systems                                         393,000                                  376,000


Interest and Other                                        92,000                                   37,000


                                                      $4,267,000                               $3,699,000

</TABLE>
The Company's  revenues increased $568,000 during the quarter ended December 31,
1995 as  compared  to the same  quarter in the prior  year.  A majority  of this
increase  results from a $183,000  increase in revenues from physician  services
and a $258,000  increase in revenues from TPA services relating to the MetroPlus
contract.






                                      11
<PAGE>



                                    EXPENSES
<TABLE>
<S>                                                <C>                                  <C>                                  

                                                                         Nine Months Ended December 31,


                                                         1995                               1994


Salaries, wages and benefits                          $9,163,000                          $9,015,000
Other selling, general and administrative              6,559,000                           5,452,000
Depreciation and amortization                            476,000                             929,000
Restructuring charges (gain)                            (589,000)                          7,021,000
Interest expense                                          52,000                               2,000


                                                      15,661,000                         $22,419,000
</TABLE>


Excluding the $7,610,000  change in  restructuring  charges (gain) (See Note C),
expenses for the nine months ended  December  31,  1995,  increased  $852,000 as
compared to the same period in the prior fiscal  year.  The  components  of this
increase were salaries,  wages and benefits ($148,000),  other selling,  general
and administrative  expenses  ($1,107,000) and interest expense ($50,000) offset
by a $453,000 decrease in depreciation and amortization. The $1,107,000 increase
in other selling,  general and administrative expenses primarily resulted from a
$445,000 provision for losses on accounts  receivable;  increased  marketing and
sales costs; recruiting expenses associated with several additions to the senior
management team; and higher legal,  accounting and consulting fees. The decrease
in depreciation and amortization resulted from the write-offs of assets included
in the restructuring charge during fiscal 1995.

<TABLE>
<S>                                                 <C>                                  <C>
                                                                         Three Months Ended December 31,


                                                        1995                               1994


Salaries, wages and benefits                          $3,079,000                          $3,068,000
Other selling, general and administrative              2,116,000                           1,912,000
Depreciation and amortization                            161,000                             314,000
Restructuring charges (gain)                                -                              7,021,000
Interest expense                                          16,000                               2,000


                                                      $5,372,000                         $12,317,000

</TABLE>
Excluding the $7,021,000  restructuring  charges (See Note C),  expenses for the
three months ended December 31, 1995,  increased $76,000 as compared to the same
period in the prior fiscal year.  The components of this increase were salaries,
wages and benefits ($11,000), other selling, general and administrative expenses
($204,000)  and  interest  expense  ($14,000)  offset by a $153,000  decrease in
depreciation and amortization.  The $204,000 increase in other selling,  general
and  administrative  expenses  primarily  resulted from increased  marketing and
sales costs; recruiting expenses associated with several additions to the senior
management team and higher legal,  accounting and consulting  fees. The decrease
in depreciation and amortization resulted from the write-offs of assets included
in the restructuring charge during fiscal 1995.




                                      12 
<PAGE>



                                    NET LOSS


For the nine months ended December 31, 1995, the Company  reported a net loss of
$2,250,000  or $.38 per common  share  compared to a net loss of  $7,228,000  or
$1.21 per common share during the same period last year.

For the quarter  ended  December  31, 1995,  the Company  reported a net loss of
$724,000 or $.13 per common share  compared to a net loss of $6,196,000 or $1.01
per common share during the same quarter last year.











                                      13
<PAGE>



                           PART II -OTHER INFORMATION


Item 1       -    Litigation

                  The Company has no material litigation pending.


Item 2       -    Changes in Securities

                  On October 11,  1995,  the Company  amended and  restated  its
Certificate  of  Incorporation  to increase the number of  authorized  shares to
40,000,000  shares  from  10,000,000  shares,   including  an  increase  in  the
authorized shares of Common Stock, par value $.01 per share ("Common Stock"), to
30,000,000  shares from 10,000,000  shares,  and the establishment of a class of
10,000,000  shares of preferred  stock, par value $.01 per share (the "Preferred
Stock").

                  The  Amended  and  Restated   Certificate   of   Incorporation
authorizes  the Board of Directors to provide for the issuance of the  Preferred
Stock in series,  to establish  the number of shares to be included in each such
series and the designations,  preferences and relative, participating, optional,
conversion  or  other  special  rights,  and   qualifications,   limitations  or
restrictions,  of such shares.  Classes or series of shares of  Preferred  Stock
could be given voting and conversion  rights which could dilute the voting power
and equity of holders of Common Stock and could have  preference over the Common
Stock with  respect to  dividends  and  liquidation  rights.  The  existence  of
authorized  but  unissued  and  unreserved  shares of Common Stock and shares of
Preferred Stock of the Company may enable the Board of Directors to issue shares
to third parties  which could render more  difficult or discourage an attempt to
obtain control of the Company by means of a merger,  tender offer, proxy contest
or otherwise.

                  On October 12, 1995,  the Company,  pursuant to the terms of a
certain Series A Convertible Preferred Stock and Warrant Purchase Agreement (the
"Purchase Agreement"), by and among Frontenac VI Limited Partnership ("Frontenac
VI"), a trust  established  for the benefit of the descendents of Robert E. King
and Morgan  Holland  Fund II,  L.P.  (collectively,  the  "Purchasers")  and the
Company,  sold to the  Purchasers,  through a private  placement,  (i) 1,500,000
shares of Series A Convertible  Preferred  Stock, par value $0.01 per share (the
"Series A  Convertible  Preferred  Shares"),  warrants to purchase up to 390,000
shares of the Company's Common Stock at an exercise price of $0.10 per share and
warrants  to purchase  up to 198,000  shares of the Common  Stock at an exercise
price of $3.50 per share for an aggregate purchase price of $6,000,000.

                  Pursuant  to the  terms  of the  Purchase  Agreement  and  the
Certificate  of  Designation  filed  to  establish  the  terms  of the  Series A
Convertible  Preferred Shares (i) so long as any Series A Convertible  Preferred
Shares remain  outstanding,  without the consent of holders of a majority of the
Series A  Convertible  Preferred  Shares  then  outstanding,  the Company is not
permitted to redeem,  purchase or otherwise  acquire  directly or indirectly any
junior securities, nor is the Company permitted to directly or indirectly pay or
declare any dividend or make any distribution upon any junior securities,  until
all accumulated dividends on the Series A Convertible Preferred Shares are paid;
(ii) upon any liquidation, dissolution or winding up of the Company, each holder
of Series A Convertible Preferred Shares will be entitled to be paid, before any
distribution or payment is made upon any of the Company's equity securities that
rank junior to the Series A Convertible  Preferred Shares  (including  shares of
Common  Stock),  a preferred  liquidation  amount in cash,  plus all accrued and
unpaid  dividends;  (iii)  so long as at  least  300,000  Series  A  Convertible
Preferred Shares are outstanding and so long as Frontenac VI holds a majority of
such Series A Convertible Preferred Shares, the holders of the




                                     14
<PAGE>


                     PART II - OTHER INFORMATION - CONTINUED


Series A  Convertible  Preferred  Shares,  voting  as a single  class,  shall be
entitled  to elect  one  member of the  Company's  Board of  Directors,  and the
director  elected by the holders of Series A Convertible  Preferred Shares shall
be designated a member of the Executive Committee or an equivalent  committee of
the  Board of  Directors;  (iv) the  Board of  Directors  shall  not at any time
consist of more than twelve (12)  members  without the  approval of the director
elected  by the Series A  Convertible  Preferred  Shares;  and (v) as long as at
least 300,000 Series A Convertible Preferred Shares remain outstanding,  without
the consent of the holders of a majority of the Series A  Convertible  Preferred
Shares,  the  Company  will not be  permitted  to alter or  change  the  rights,
preferences  or  privileges of the Series A  Convertible  Preferred  Shares with
respect to payment or dividends or the distribution of assets upon liquidation.

                  A complete description of the Amended and Restated Certificate
of  Incorporation,  the Purchase  Agreement and the  Certificate  of Designation
establishing  the term of the Series A Convertible  Preferred Shares is included
in the definitive Proxy Statement for the 1995 Annual Meeting of stockholders of
the Company, and is incorporated herein by reference.


Item 3       -    Defaults Upon Senior Securities

                  None


Item 4       -    Submission of Matters to a Vote of Security Holders

The Company held its Annual  Meeting of  Stockholder on October 10, 1995. At the
annual  meeting,  the  following  matters  were  submitted  to  a  vote  of  the
stockholders:

        a)   The  stockholders  approved a  proposal  to amend and  restate  the
             Company's  Certificate of  Incorporation to increase the authorized
             common  stock  of the  Company,  $.01 par  value  per  share,  from
             10,000,000 to 30,000,000 shares, and to authorize 10,000,000 shares
             of preferred stock of the Company,  par value $.01 per share.  This
             proposal  was approved  with  3,677,423  shares voted for,  135,697
             shares voted against and 25,842 shares abstaining.

        b)   The  stockholders  approved  a  proposal  to change the name of the
             Company from "Micro Healthsystems,  Inc." To "US Servis, Inc." This
             proposal  was approved  with  3,223,316  shares voted for,  100,429
             shares voted against and 515,154 shares abstaining.

        c)   The  stockholders  approved the issuance in a private sale of units
             consisting  of (i)  1,500,000  shares  of the  Company's  Series  A
             Convertible  Preferred  Stock,  (ii)  warrants to purchase  390,000
             shares of the  Company's  Common Stock at $0.10 per share and (iii)
             warrants to purchase  198,000 shares of the Company's  Common Stock
             at $3.50 per share,  for an aggregate  consideration of $6,000,000.
             This proposal was approved with 3,667,022 shares voted for, 143,694
             shares voted against and 18,246 shares abstaining.



                                     15
<PAGE>      
                          PART II - OTHER INFORMATION - CONTINUED


        d)   The  stockholders  elected the following eight directors to serve
             until the 1996 Annual Meeting of the stockholders of the Company: 
             Graham O. King, Robert E. King, S.M. Caravetta,  James A. Pesce, 
             Stanford J. Goldblatt,  Robert C. Bowers,  Frederick R. Blume, 
             James E. Cowie.  Each  director  was elected with a minimum of 
             3,768,090 shares voted for,and a maximum of 70,872 shares withheld.

        e)   The stockholders  approved a plan to restructure the Company into a
             holding company by  transferring  certain assets of subsidiaries to
             the Company and merging certain other  subsidiaries.  This proposal
             was approved with 3,714,795  shares voted for, 110,727 shares voted
             against and 13,440 shares abstaining.

             A  complete  description  of each of the  matters  voted  on at the
Annual  Meeting is included in the  definitive  Proxy  Statement  for the Annual
Meeting, and is incorporated herein by reference.

Item 5       -    Other Information

                  None


Item 6       -    Exhibits and Reports on Form 8-K

                  (a)      Exhibits:  the exhibits  required by Item 601 of
                           Regulation  S-K and filed  herewith are listed in the
                           Exhibit Index that follows the signature page.

                  (b)      Reports  on Form 8-K;  No report on Form 8-K was file
                           during the first six months of the fiscal year ending
                           March 31, 1996.






                                     16
<PAGE>



                                   SIGNATURES


Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.



                                                              US SERVIS, INC.
                                                              (Registrant)
<TABLE>
<S>         <C>                                     <C>                                                      


Date:        February 8, 1996                        By:      __________________________________ (L.S.)
                                                              Graham O. King
                                                              Chairman of the Board and
                                                              Chief Executive Officer


Date:        February 8, 1996                        By:      ___________________________________ (L.S.)
                                                              Michael B. Loscalzo
                                                              Principal Accounting Officer and
                                                              Chief Financial Officer

</TABLE>










                                     17
<PAGE>
<TABLE>

<S>                    <C>                               <C>                                                   <C>


                                  EXHIBIT INDEX

 
       Exhibit No.                                         Description                                           Page
 
          3(1)          By-Laws. (I)                                                                               *
  
          3(2)          Amended and Restated Certificate of Incorporation of the Registrant. (XVII)                *
 
           3(3)          Certificate of Designation Relating to the Series A Convertible Preferred Stock            *
                        of the Registrant. (XVII)
  
          4(1)          Form of warrant to purchase in the aggregate up to 390,000 shares of the                   *
                        Registrant's Common Stock at an exercise price of $0.10 per share, such warrants
                        issued October 12, 1995. (XV)
  
          4(2)          Form of warrant to purchase in the aggregate up to 198,000 shares of the                   *
                        Registrant's Common Stock at an exercise price of $3.50 per share, such warrants
                        issued October 12, 1995. (XV)
 
           10(1)         Lease date March 31, 1986, between Skyline Associates, Inc. And Digital Equipment          *
                        Corporation relating to the premises located at 414 Eagle Rock Avenue, West
                        Orange, New Jersey. (I)
 
           10(2)         1986 Stock Option Agreement. (I)                                                           *
 
           10(3)         Service Agreement between the Registrant and Digital Equipment Corporation. (I)            *
 
           10(4)         Non-qualified Stock Option Agreement between the Registrant and S.M. Caravetta,            *
                        dated February 10, 1990 and expiring February, 1995. (III)
 
           10(5)         License Agreement between the Registrant and North County Computer Services, Inc.          *
                        (III)
 
           10(6)         Distribution/Sales Representation Agreement by and between Baxter Healthcare               *
                        Corporation and MedTake Corp., dated as of October 1, 1990. (IV)
 
           10(7)         Letter Agreement by and among MedTake Corp., the Registrant, Salvatore M.                  *
                        Caravetta and Baxter Healthcare Corporation, dated as of October 1, 1990. (IV)
 
           10(8)         Guaranty of the Registrant in favor of Baxter Healthcare Corporation, dated as of          *
                        October 1, 1990. (IV)
 
           10(9)         Complimentary Marketing Agreement between International Business Machines                  *
                        Corporation and the Registrant. (V)
 
          10(10)         Service Agreements between Digital Equipment Corporation and the Registrant. (V)           *
 
          10(11)         Asset Purchase Agreement and Plan of Reorganization by and among Administrative            *
                        Information Systems Corporation, the Registrant and Receivables Management Corp.,
                        dated as of June 14, 1991. (VI)
 
          10(12)         Registration Rights Agreement by and between the Registrant and Administrative             *
                        Information Systems, Inc. (Misnamed in said document as "Administrative
                        Information Services Corporation"), dated June 14, 1991. (VI)
 
          10(13)         Employment Agreement among Receivables Management Corp. (Renamed AISCorp.), the            *
                        Registrant and Stephen G. Sullivan, dated as of June 14, 1991. (VI)
 

                                     18
<PAGE>
                                  EXHIBIT INDEX

 
     Exhibit No.                                        Description                                             Page
 
       10(14)       Option Registration Rights Agreement by and Between the Registrant and Stephen G.            *
                    Sullivan, dated June 14, 1991. (IV)
 
        10(15)       Employment Contract between the Registrant and S.M. Caravetta. (VII)                         *
 
        10(16)       Employment Contract between the Registrant and James A. Pesce. (VII)                         *
 
        10(17)       Agreement and Plan of Merger with Exhibits by and among the Registrant, Vanco                *
                    Business Management, Inc. And David K. Vanco, dated as of December 31, 1992. (VIII)
 
        10(18)       Employment Agreement, dated as of January 1, 1993, between Management-Data Service,          *
                    Inc., the Registrant and David K. Vanco. (VIII)
 
        10(19)       Registration Rights Agreement between David K. Vanco and the Registrant, dated as            *
                    of December 31, 1992. (VIII)
 
        10(20)       Guaranty dated March 5, 1993, given by the Registrant to Harris Bank Roselle                 *
                    relating to loans to David K. Vanco. (VIII)
 
        10(21)       Letter agreement between David K. Vanco and the Registrant, dated March 5, 1993,             *
                    relating to the guaranty of notes, from David K. Vanco to Harris Bank Roselle.
                    (VIII)
 
        10(22)       Agreement of Merger with ACT/PC, dated September 15, 1993, amended November 12,              *
                    1993. (X)
 
        10(23)       Term Loan Agreement, dated as of December 13, 1993, between Stephen G. Sullivan and          *
                    Registrant. (X)
 
        10(24)       Guarantee Modification Agreement, dated as of December 13, 1993, between Stephen G.          *
                    Sullivan and the Registrant. (X)
 
        10(25)       Escrow Agreement, dated as of December 13, 1993, between Stephen G. Sullivan,                *
                    Registrant and Crummy Del Deo Dolan Griffinger & Vecchione. (X)
 
        10(26)       Termination Agreement relating to the Baxter Distribution/Sales Representation               *
                    Agreement, dated December 17, 1993. (X)
  
       10(27)       Amendment to Agreement and Plan of Merger between the Registrant and                         *
                    Management-Data Services, Inc., dated April 8, 1994. (XI)
 
        10(28)       Amendment to Employment Agreement between David K. Vanco and the Registrant, dated           *
                    April 8, 1994. (XI)
 
        10(29)       Employment Agreement, dated as of October 12, 1994, between the Registrant and               *
                    Graham O. King. (XII)
 
        10(30)       Option Agreement, dated as of October 12, 1994, between the Registrant and Graham            *
                    O. King. (XII)
 
        10(31)       Registration Agreement, dated as of October 12, 1994, between the Registrant and             *
                    Graham O. King. (XII)
 
        10(32)       Stockholder Agreement, dated as of October 12, 1994, between the Registrant and              *
                    Graham O. King. (XII)
 
        10(33)       S.M. Caravetta Termination Agreement between S.M. Caravetta and the Registrant,              *
                    dated as of October 12, 1994, as amended. (XII)
 

                                     19    

<PAGE>



                                  EXHIBIT INDEX

 
     Exhibit No.                                         Description                                             Page
 
       10(34)       Letter of Intent, dated June 26, 1995, between the Registrant and Frontenac VI                *
                    Limited Partnership. (XIV)
  
       10(35)       Registrant's Amended 1993 Stock Option Plan. (XIV)                                            *
 
        10(36)       Registrant's Amended 1994 Stock Option Plan for Non-Employee Directors. (XIV)                 *
 
        10(37)       Series A Convertible Preferred Stock and Warrant Purchase Agreement, dated July 18,           *
                    1995, by and among the Registrant, a trust established for the benefit of
                    descendents of Robert E. King, Frontenac VI Limited Partnership and Morgan Holland
                    Fund II, L.P. (XV)
 
        10(38)       Promissory Note of Graham O. King, dated June 14, 1995, payable to the Company. (XVI)         *
 
        10(39)       First and Second Amendments to Series A Convertible Preferred Stock and Warrant               *
                    Purchase Agreements dated July 31, 1995 and October 10, 1995, respectively.
 
        10(40)       Registration Agreement, dated October 12, 1995, by and among the Registrant, a trust          *
                    established for the benefit of the descendants of Robert E. King, Frontenac VI
                    Limited Partnership and Morgan Holland Fund II, L.P. (XV)
 




                                     20   

<PAGE>



                             NOTES TO EXHIBIT INDEX


      Note No.                                                     Description

         (I)   Incorporated  by reference  from the Form S-18  Registration
               Statement of the Registrant, dated June 10, 1986.

        (II)   Incorporated by reference from Amendment No. 1, dated September 6, 1986, to the Form S-18 Registration
               Statement of the Registration

        (III)  Incorporated by reference from the Registrant's  Form 10-K, dated
               June 18, 1990.


        (IV)   Incorporated  by reference from the  Registrant's  Form 8-K, dated
               October 1, 1990.

         (V)   Incorporated by reference from the Registrant's Form S-3, Registration No. 33-39062, dated April 11,
               1991.


        (VI)  Incorporated  by reference from the  Registrant's  form 8-K, dated
              June 18, 1991.


        (VII) Incorporated by reference from the Registrant's  Form 10-K, dated
              June 28, 1991.


       (VIII) Incorporated by reference from the  Registrant's  Form 8-K, dated
              March 9, 1993.


        (IX)  Incorporated  by reference from the  Registrant's  Form 8-K, dated
              September 15, 1993.


         (X)  Incorporated  by reference from the  Registrant's  Form 8-K, dated
              December 28, 1993.


        (XI)  Incorporated  by reference from the  Registrant's  Form 8-K, dated
              April 15, 1994.


        (XII) Incorporated by reference from the  Registrant's  Form 8-K, dated
              November 1, 1994.


       (XIII) Incorporated by reference from the Registrant's  Form 10-Q, dated
              November 11, 1994.


        (XIV) Incorporated by reference from the Registrant's  Form 10-K, dated
              June 26, 1995.


        (XV)  Incorporated by reference from the Registrant's Form 10-K/A,  dated
              July 24, 1995.


        (XVI) Incorporated by reference from the Registrant's  Form 10-Q, dated
              August 10, 1995.


       (XVII) Incorporated by reference from the Registrant's Form 10-Q, dated November 10, 1995




                                     21
</TABLE>