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, 1997 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
(State or other jurisdiction of      (I.R.S. Employer or Identification Number)
incorporation of organization)

                   220 Davidson Avenue, Somerset, NJ           08873
                 (Address of Principal Executive Office)     (Zip Code)

                                              (732) 764-9898
                       (Registrant's telephone number, including area code)



                                  (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, 1998, the registrant had outstanding 6,351,000 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 SHEETS AT DECEMBER 31, 1997 AND
         MARCH 31, 1997                                                 2

         CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE NINE AND
         THREE MONTHS ENDED DECEMBER 31, 1997 AND 1996                  3

         CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS'
         EQUITY FOR THE NINE MONTHS ENDED DECEMBER 31, 1997             4

         CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE NINE
         MONTHS ENDED DECEMBER 31, 1997 AND 1996                       5-6

         NOTES TO CONSOLIDATED FINANCIAL STATEMENTS                    7-9

         MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
         CONDITION AND RESULTS OF OPERATIONS                           9-12


PART II - OTHER INFORMATION                                             13


SIGNATURES                                                              14


EXHIBIT INDEX                                                         15-17

</TABLE>

<PAGE>




                                     PART I

                              FINANCIAL INFORMATION


1.       Consolidated Financial Statements as at December 31, 1997

         The  consolidated  balance  sheet as of March 31, 1997 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,
                                                                                       1997         1997
                                                                                   -----------   ----------  
                                                                                   (UNAUDITED)
                                   ASSETS   
CURRENT ASSETS:
         Cash and equivalents                                                      $4,108,000    $8,063,000
         Certificate of deposit                                                       300,000       300,000
         Accounts receivable:
                  Billed, less allowance for doubtful
                           accounts of $667,000 and $464,000                        6,432,000     4,092,000
                  Unbilled                                                          1,797,000     1,387,000
         Prepaid and refundable income taxes                                           42,000        41,000
         Prepaid expenses and other current assets                                    472,000       838,000
                                                                                   ----------   -----------
                           Total Current Assets                                    13,151,000    14,721,000
                                                                                   ----------    ----------

PROPERTY AND EQUIPMENT                                                              1,840,000     1,763,000
                                                                                   ----------    ----------
OTHER ASSETS:
         Software technology, less accumulated amortization
                  of $640,000 and $481,000                                            322,000       322,000
         Goodwill, less accumulated amortization of $461,000 and $387,000           3,091,000     3,164,000
         Other                                                                        786,000       769,000
                                                                                  -----------    ----------
                           Total Other Assets                                       4,199,000     4,255,000
                                                                                  -----------    ----------
                                                                                  $19,190,000   $20,739,000
                                                                                  ===========   ===========
                                   LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
         Accounts payable                                                          $1,009,000    $1,414,000
         Accrued payroll & benefits                                                   724,000     1,015,000
         Accrued restructuring charges                                                340,000       696,000
         Accrued expenses for use of trade name                                        42,000        62,000
         Other accrued expenses                                                     1,240,000       995,000
         Current portion of capital lease obligation                                     -          263,000
         Deferred income                                                              170,000       439,000
         Customers' deposits and other current liabilities                            325,000       325,000
                                                                                   ----------    ----------
                           Total Current Liabilities                                3,850,000     5,209,000
                                                                                   ----------    ----------
LONG-TERM LIABILITIES:
         Accrued restructuring charges - net of current portion                       280,000       369,000
                                                                                   ----------    ----------  
COMMITMENTS AND CONTINGENCIES

SHAREHOLDERS' EQUITY:
         Convertible preferred stock, par value $.01 per share 
                  10,000,000 shares authorized, 2,500,000 issued and outstanding
                  (liquidation preference $11,573,000) at December 31, 1997            25,000        25,000
         Common stock $.01 par value; 30,000,000 shares authorized;
                  6,367,000 shares issued                                              64,000        64,000
         Capital in excess of par value                                            24,891,000    24,865,000
         Retained earnings (deficit)                                               (9,390,000)   (8,805,000)
         Subscription receivable                                                     (140,000)     (140,000)
         Note receivable - related party                                             (331,000)     (789,000)
                                                                                   ----------   ------------
                                                                                   15,119,000    15,220,000
         Less Treasury Stock at cost: 16,000 shares                                    59,000        59,000
                                                                                   ----------   ------------
                           Total Shareholders' Equity                              15,060,000    15,161,000
                                                                                  -----------  -------------
                                                                                  $19,190,000   $20,739,000
                                                                                  ===========  =============
</TABLE> 
See accompanying notes to consolidated financial statements.

                                    2

<PAGE>
                           US SERVIS, INC. AND SUBSIDIARIES
                         CONSOLIDATED STATEMENTS OF OPERATIONS
                                    (UNAUDITED)
<TABLE>
<S>                                 <C>           <C> 
                                                NINE MONTHS ENDED
                                                   DECEMBER 31,
                                            -------------------------
                                                 1997         1996
                                            -----------  ------------
REVENUES:
         Service fees                       $19,453,000  $15,306,000
         Software license fees                  440,000      138,000
         Sales of equipment                      11,000      133,000
         Interest and other                     212,000      236,000
                                             ----------  -----------
                                             20,116,000   15,813,000
                                             ----------  -----------
EXPENSES:
         Cost of services                    14,281,000   11,037,000
         Cost of equipment sales                  7,000       62,000
         Research and development             1,093,000    1,442,000
         Selling, general and admini          4,787,000    5,415,000
         Interest expense                        75,000       85,000
         Loan impairment charge                 458,000      641,000
                                            -----------  ----------- 
                                             20,701,000   18,682,000
                                            -----------  ----------- 
LOSS BEFORE INCOME TAXES                       (585,000)  (2,869,000)

BENEFIT FOR FEDERAL AND STATE INCOME               -             -
                                            ------------ ----------- 

NET LOSS                                      ($585,000) ($2,869,000)
                                            ============ ============
EARNINGS PER SHARE:
         BASIC                                   ($0.20)      ($0.53)
                                           ============= ============  
         DILUTED                                 ($0.20)      ($0.53)
                                           ============= ============ 

                                                THREE MONTHS ENDED
                                                   DECEMBER 31,
                                           ---------------------------
                                                 1997         1996
                                           -------------- ------------
REVENUES:
         Service fees                        $6,996,000   $5,557,000
         Software license fees                  150,000       43,000
         Sales of equipment                        -          23,000
         Interest and other                      68,000       91,000
                                           ------------- ------------
                                              7,214,000    5,714,000
                                           ------------- ------------

EXPENSES:
         Cost of services                     4,950,000    3,955,000
         Cost of equipment sales                   -           6,000
         Research and development               287,000      481,000
         Selling, general and admini          1,195,000    1,907,000
         Interest expense                        25,000       24,000
         Loan impairment charge (reversal)      (47,000)     641,000
                                            ------------  -----------
                                              6,410,000    7,014,000
                                            ------------  ----------- 
INCOME (LOSS) BEFORE INCOME TAXES               804,000   (1,300,000)

BENEFIT FOR FEDERAL AND STATE INCOME               -             -
                                            ------------  -----------

NET INCOME (LOSS)                              $804,000  ($1,300,000)
                                             ===========  ===========
EARNINGS PER SHARE:
         BASIC                                    $0.09       ($0.24)
                                             ===========  ===========
         DILUTED                                  $0.08       ($0.24)
                                             ===========  ===========
</TABLE>
See accompanying notes to consolidated financial statements.

                                    3


<PAGE>
<TABLE>
<CAPTION>
                              US SERVIS, INC. AND SUBSIDIARIES
                    CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
                          FOR THE NINE MONTHS ENDED DECEMBER 31, 1997
                                         (UNAUDITED)


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


                                                                     
                                 PREFERRED STOCK      COMMON STOCK    CAPITAL IN                               NOTE        
                              -------------------  ------------------  EXCESS OF    RETAINED   SUBSCRIPTION RECEIVABLE -  TREASURY 
                               SHARES   PAR VALUE  SHARES   PAR VALUE  PAR VALUE    EARNINGS    RECEIVABLE  RELATED PARTY   STOCK
                              ---------  --------  --------  -------  ----------- -----------   ----------- -------------  -------
BALANCE, MARCH 31, 1997       2,500,000  $25,000  6,367,000  $64,000  $24,865,000 ($8,805,000)   ($140,000)   ($789,000)  ($59,000)

NINE MONTHS ENDED
DECEMBER 31,1997

Allowance for loan collateral
 impairment                                                                                                     458,000

Amortization of Stock Issue
 Costs                                                                     26,000

Net Loss                                                                             (585,000)
                              ---------  -------  ---------  -------  ----------- -----------   -----------   ----------  --------- 
BALANCE, DECEMBER 31, 1997    2,500,000  $25,000  6,367,000  $64,000  $24,891,000 ($9,390,000)   ($140,000)   ($331,000)  ($59,000)
                              =========  =======  =========  =======  =========== ============  ===========   ==========  =========

</TABLE>
See accompanying notes to consolidated financial statements.



                                       4


<PAGE>
                                US SERVIS, INC. AND SUBSIDIARIES
                              CONSOLIDATED STATEMENTS OF CASH FLOWS
                                          (UNAUDITED)
<TABLE>
<S>                                                             <C>           <C>
                                                                    NINE MONTHS ENDED
                                                                       DECEMBER 31,
                                                                 ----------------------- 
                                                                      1997         1996
                                                                 ---------- ------------
CASH FLOWS FROM OPERATING ACTIVITIES:       
         Net loss                                                 ($585,000)  ($2,869,000)
         Adjustments to reconcile net loss to net cash flows
                  from operating activities:
                           Depreciation and amortization of 
                            property and equipment                  514,000       472,000
                           Amortization of software technology      160,000       134,000
                           Amortization of goodwill                  74,000        74,000
                           Amortization of convertible 
                            preferred issue costs                    26,000        21,000
                           Gain on sale of equipment                (14,000)       (6,000)
                           Provision for losses on accounts 
                            receivable                              202,000        72,000
                           Loan impairment charge                   458,000       641,000
                           Changes in operating assets and 
                             liabilities-
                                    Accounts receivable          (2,952,000)   (2,605,000)
                                    Note and installment 
                                     receivablies                       -         190,000
                                    Prepaid and refundable
                                     income taxes                    (1,000)    2,286,000
                                    Prepaid expenses and other
                                     current assets                 291,000       171,000
                                    Other assets                    (17,000)     (666,000)
                                    Accounts payable               (405,000)       66,000
                                    Accrued payroll & benefits     (291,000)      170,000
                                    Accrued expenses for use of
                                     trade name                     (20,000)     (213,000)
                                    Other accrued expenses          245,000       667,000
                                    Accrued restructuring          (445,000)     (649,000)
                                    Deferred income                (269,000)      (42,000)
                                    Customer deposits and other
                                     current liabilities                -         (24,000)
                                                                  ----------   -----------
                   Net cash flows from operating activities      (3,029,000)   (2,110,000)
                                                                  ----------   ----------- 

CASH FLOWS FROM INVESTING ACTIVITIES:
         Purchase of software technology                           (161,000)     (101,000)
         Purchase of property and equipment                        (587,000)     (408,000)
         Proceeds from sale of equipment                             10,000        27,000
                                                                   ---------    ----------
                  Net cash flows from investing activities         (738,000)     (482,000)
                                                                   ---------    ----------

CASH FLOWS FROM FINANCING ACTIVITIES:
         Principal payments on capital lease obligation            (263,000)      (99,000)
         Issuance of preferred stock net of issue costs                -        3,965,000
         Loan repayments from officers                               75,000          -
                                                                   ---------    ---------
                  Net cash flows from financing activities         (188,000)    3,866,000
                                                                   ---------    ---------


NET CHANGE IN CASH AND EQUIVALENTS                               (3,955,000)    1,274,000

CASH AND EQUIVALENTS, BEGINNING OF PERIOD                         8,063,000     6,546,000
                                                                 -----------   -----------
CASH AND EQUIVALENTS, END OF PERIOD                              $4,108,000    $7,820,000
                                                                 =========== ===========




See accompanying notes to consolidated financial statements.

                                                                                        
                                        5

<PAGE>




                                     US SERVIS, INC. AND SUBSIDIARIES
                                   CONSOLIDATED STATEMENTS OF CASH FLOWS
                                               (UNAUDITED)
                                               (concluded)                                         

                                                                      NINE MONTHS ENDED
                                                                         DECEMBER 31,
                                                                 ----------------------
                                                                     1997         1996
                                                                 ----------  ----------

SUPPLEMENTAL INFORMATION:
         Interest paid                                              $39,000       $38,000
                                                                  ==========   ==========
         Income taxes refunded (paid)                               ($1,000)   $2,382,000
                                                                  ==========   ==========
         Transferred from deferred income taxes to prepaid and
                  refundable income taxes                          $   -          $62,000
                                                                  ==========   ==========
         Gross proceeds from issue of convertible preferred 
                  stock                                            $   -       $4,000,000
                                                                  ==========   ==========
         Capitalized issue costs for convertible preferred 
                  stock                                            $   -          $35,000
                                                                  ==========   ==========
         Accretion equal to accrued dividends on convertible
                  preferred stock                                  $   -         $383,000
                                                                  ==========   ==========
</TABLE>
See accompanying notes to consolidated financial statements.
















                                     6


<PAGE>

                        US SERVIS, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                December 31, 1997
                                   (UNAUDITED)



Note A - Basis of Presentation:

The  consolidated  financial  statements  include all the accounts of US SERVIS,
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  professional  management  company  that  provides  outsourcing
services to physician  networks and hospital business  offices,  associated with
Integrated Delivery Systems. The Company's principal focus is providing billing,
accounts  receivable  management  services and  information  systems  management
services.  The Company,  through strategic  alliances,  has expanded its product
offerings to include  outsourcing  of third party  administrative  services to a
managed care organization and the  implementation of electronic  medical records
systems.  The  Company  has  also  historically  been  a  provider  of  clinical
information  systems  products to hospitals.  The Company is phasing out of this
activity.  (See Note 2 to the Consolidated  Financial Statements as of March 31,
1997).

Note C - Change in Revenue Recognition Method and Restructuring:

The  accompanying  financial  statements  for the nine and  three  months  ended
December 31, 1996 have been  retroactively  restated for the effects of a change
in income  recognition.  The Company changed its method of accounting for income
recognition for business management services,  whereby, revenue is recognized on
collections  in process as the services are performed.  In prior years,  revenue
was recognized based solely on the net collections by the third party customers.
The  Company  believes  the new method of revenue  recognition  more  accurately
reflects the earnings process and is the method used throughout the industry.

The effect of the change was to increase  reported  revenues  and  decrease 
the net loss by $244,000  (or $.04 per share) in the statement of operations
for the nine months ended December 31, 1996.

Note D - Earnings Per Share:

In  February  1997,  the FASB  issued SFAS No.  128,  EARNINGS  PER SHARE.  This
Statement  established  new standards for computing and presenting  earnings per
share ("EPS"). The statement requires dual presentation of basic and diluted EPS
on the  face  of  this  income  statement  for  entities  with  complex  capital
structures and requires a reconciliation of the numerator and denominator of the
basic EPS  computation  to the  numerator  and  denominator  of the  diluted EPS
computation.   The  following  is  a   reconciliation   of  the  numerators  and
denominators  for the  computation  of basic and diluted  earnings per share (in
thousands, except per share amounts):



                                   7
<PAGE>
<TABLE>
<S>                                                <C>                 <C>               <C>           <C>           
                                                      Nine Months Ended                  Three Months Ended
                                                        December 31,                        December 31,
                                                    ---------------------------         -----------------------
                                                      1997               1996               1997          1996
                                                    --------           --------            --------     --------
          Basic earnings per share
               Numerator
               Net income (loss)                      (585)             (2,869)              804         (1,300)
               Less preferred dividends                671                 464               229            212
                                                   --------            --------          --------       --------   
               Income (loss) for common             (1,256)             (3,333)              575         (1,512)

               Denominator
               Weighted average number of
               common shares outstanding             6,351              6,296             6,351           6,296

               Basic EPS                            ($0.20)            ($0.53)            $0.09          ($0.24)

          Diluted earnings per share
               Numerator
               Income (loss) for common             (1,256)            (3,333)              575          (1,512)

               Denominator
               Weighted average number of
               common shares outstanding             6,351              6,296             6,351           6,296
               Common equivalents of -
                  Warrants                                                                  365
                  Stock options                                                             343
                                                    -------           --------           -------         -------         
               Total shares                          6,351              6,296             7,059           6,296

               Diluted EPS                          ($0.20)            ($0.53)            $0.08          ($0.24)

</TABLE>
Note E - MetroPlus Settlement:

On October 31, 1997, the Company reached a full settlement of the litigation and
all matters of dispute  between it and its largest  customer,  MetroPlus  Health
Plan,   a  division   of  New  York  City  Health  and   Hospitals   Corporation
(MetroPlus/HHC).

As part of the settlement,  the Company received  $3,132,118 in full payment for
the third party  administrative  services  provided through  September 30, 1997.
Substantially  all of this  amount had been  previously  recorded as revenue and
accounts  receivable.   In  addition,  the  Company  will  receive  payments  of
$2,237,500 for services to be rendered from October 1, 1997 through February 28,
1998.  As of February 6, 1998,  $1,343,000  of this amount has been received and
the Company anticipates no difficulty in obtaining the remainder of such amount.
Pursuant to the original  contract,  MetroPlus/HHC  has elected to terminate the
contract  with the Company as of February  28,  1998.  All claims in the lawsuit
have been dismissed.


                                     8
<PAGE>

Simultaneously,  with the  resolution  of the dispute  with  MetroPlus/HHC,  the
Company settled the case brought against it by  VertiHealth,  its  subcontractor
for the  MetroPlus  contract.  Pursuant to this  settlement,  the  Company  paid
$795,540 to VertiHealth for prior services  rendered.  Such amount was reflected
as an expense of the Company  prior to September  30, 1997 and was  reflected as
accounts payable on the balance sheet of the Company as of such date.

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


                                     GENERAL


Management is encouraged by the Company's  financial  performance  for the third
quarter of fiscal 1998.  While a great deal has been  accomplished  an immediate
challenge  facing the Company is to replace the revenues and profits  associated
with the  termination  of the Company's  contract with MetroPlus on February 28,
1998.  (See Note E).  Without the  MetroPlus  contract,  the Company  would have
reported a loss for the third  quarter.  Returning the Company to  profitability
and increased  shareholder value will be primarily  dependent upon the Company's
continued  success in selling and  implementing  new  customer  agreements  in a
timely and efficient manner.


                         LIQUIDITY AND CAPITAL RESOURCES
<TABLE>
<S>                                                             <C>                              <C> 

                                                                   December 31, 1997                 March 31, 1997
                                                                   -----------------                --------------- 
               Total Current Assets                                   $13,151,000                      $14,721,000
               Total Current Liabilities                                3,850,000                        5,209,000
                                                                      -----------                      -----------
               Working Capital                                         $9,301,000                       $9,512,000
               Working Capital Ratio to 1                                   3.4                             2.8

</TABLE>
During the nine months  ended  December  31,  1997,  Working  Capital  decreased
$211,000  from  $9,512,000  to  $9,301,000  primarily  as a result of  operating
losses.  Cash and Equivalents  decreased  $3,955,000  primarily due to operating
losses, an increase in accounts receivable of $2,750,000,  and a net decrease in
current liabilities of $1,359,000.

The major components of the increase in accounts  receivable were an increase in
the amount due from  MetroPlus/HHC of $1,055,000  (which was subsequently paid -
see Note E), an increase in hospital  receivables of $757,000 and an increase in
physician receivables of $1,152,000.  These increases were partially offset by a
$11,000  decrease  in  clinical  receivables  and a  $200,000  increase  in  the
allowance  for  doubtful  accounts.  Approximately  one-half of the  increase in
hospital  receivables  and  substantially  all  of  the  increase  in  physician
receivables related to billings to new customers.

During the  quarter  ended  December  31,  1997,  the  Company's  cash  position
increased  $1,023,000 as a result of the MetroPlus/HHC  settlement.  The Company


                                     9
<PAGE>
anticipates that available cash and cash flow from operations will be sufficient
to meet the  Company's  operating and capital  requirements  for the next twelve
months.


                              RESULTS OF OPERATIONS

                                    REVENUES

<TABLE>
<S>                                                           <C>                  <C>
                                                                   Nine Months Ended December 31,
                                                                ----------------------------------
                                                                     1997               1996
                                                                ------------        ------------
               Service fees                                      $19,453,000         $15,306,000
               Software license fees                                 440,000             138,000
               Sales of equipment                                     11,000             133,000
               Interest and other                                    212,000             236,000
                                                               -------------       -------------
                                                                 $20,116,000         $15,813,000
</TABLE>

For the nine months ended  December 31, 1997, the Company's  revenues  increased
$4,303,000, or 27.2%, when compared to the same period in the prior fiscal year.
Contributing  to this increase were  increases in service fees of $4,147,000 and
software  license fees of $302,000.  These  increases were  partially  offset by
decreases in sales of equipment of $122,000 and interest and other of $24,000.

Contributing  to the increase in revenues  from  service fees were  increases of
$785,000  from  hospital  services,   $2,399,000  from  physician  services  and
$1,153,000  from TPA  services  provided to  MetroPlus/HHC.  (See Note E). These
increases  were  partially  offset  by a  $190,000  decrease  in  revenues  from
discontinued clinical services.

<TABLE>
<S>                                                             <C>                  <C>                  
                                                                   Three Months Ended December 31,
                                                                 ---------------------------------
                                                                     1997                1996
                                                                 -----------         -----------
               Service fees                                       $6,996,000          $5,557,000
               Software license fees                                 150,000              43,000
               Sales of equipment                                      ---                23,000
               Interest and other                                     68,000              91,000
                                                                 -----------         ----------- 
                                                                  $7,214,000          $5,714,000

</TABLE>
For the three months ended December 31, 1997, the Company's  revenues  increased
$1,500,000, or 26.3%, when compared to the same period in the prior fiscal year.
Contributing  to this increase were  increases in service fees of $1,439,000 and
software  license fees of $107,000.  These  increases were  partially  offset by
decreases in sales of equipment of $23,000 and interest and other of $23,000.

Contributing  to the increase in revenues  from  service fees were  increases of
$226,000 from hospital services, $1,022,000 from physician services and $105,000


                                   10
<PAGE>
from TPA services provided to MetroPlus/HHC.  (See Note E). These increases were
partially  offset by a $50,000 decrease in revenues from  discontinued  clinical
services.

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

                                                                      Nine Months Ended December 31,
                                                                     -------------------------------
                                                                          1997            1996
                                                                     ------------     ------------
               Cost of services                                       $14,281,000      $11,037,000
               Cost of equipment sales                                      7,000           62,000
               Research and development                                 1,093,000        1,442,000
               Selling, general and administrative                      4,787,000        5,415,000
               Interest expense                                            75,000           85,000
               Loan impairment charge                                     458,000          641,000
                                                                     ------------     ------------
                                                                      $20,701,000      $18,682,000
</TABLE>
For the nine months ended  December 31, 1997, the Company's  expenses  increased
$2,019,000, or 10.8%, when compared to the same period in the prior fiscal year.
Contributing  to this  increase  was an  increase  in the  cost of  services  of
$3,244,000. This increase was partially offset by decreases in cost of equipment
sales of  $55,000,  research  and  development  expenses of  $349,000,  selling,
general and administrative expenses of $628,000 and interest expense of $10,000;
plus a  reduction  in the loan  impairment  charge  during  the  current  period
compared to the charge  during the same  period of the prior  fiscal year in the
amount of $183,000.

The major  components  of the increase in cost of services  were  $1,699,000  of
start-up expenses for new services to University  Physician  Associates ("UPA"),
$526,000  relating to additional  infrastructure to support planned expansion of
hospital-based  physician processing,  $445,000 related to the implementation of
MedicaLogicTM  for one of our clients and  $614,000 for  additional  services to
hospital  clients.  These increases were partially offset by a $151,000 decrease
in the cost of clinical services and other decreases of $40,000.

The  decrease  in selling,  general and  administrative  expense  resulted  from
planned  decreases in sales and marketing  expenses of $555,000 and decreases in
senior  management  compensation of $168,000 as the result of pay reductions and
the elimination of one position  effective August 15, 1997. These decreases were
partially offset by other net increases of $95,000.
<TABLE>
<S>                                                                     <C>                  <C>  
                                                                           Three Months Ended December 31,
                                                                        ----------------------------------------
                                                                          1997                          1996
                                                                        -----------                  ----------- 
          Cost of services                                               $4,950,000                   $3,955,000
          Cost of equipment sales                                               ---                        6,000
          Research and development                                          287,000                      481,000
          Selling, general and administrative                             1,195,000                    1,907,000
          Interest expense                                                   25,000                       24,000
          Loan impairment charge (reversal)                                 (47,000)                     641,000
                                                                        -----------                  -----------
                                                                         $6,410,000                   $7,014,000
</TABLE>


                                    11
<PAGE>
For the three months ended December 31, 1997, the Company's  expenses  decreased
$604,000,  or 8.6%,  when  compared to the same period in the prior fiscal year.
Excluding  the impact of the loan  impairment  charge of  $641,000  in the third
quarter of the previous fiscal year and the $47,000  reversal of loan impairment
charges  during the third quarter of this year,  expenses  increased  $84,000 or
1.3%.  Contributing  to this increase were  increases in the cost of services of
$995,000,  and a $1,000  increase in interest  expenses.  These  increases  were
largely offset by decreases in cost of equipment  sales of $6,000,  research and
development  expenses of  $194,000,  and  selling,  general  and  administrative
expenses of $712,000.

The major  components  of the  increase  in cost of  services  were  $778,000 of
start-up expenses for new services to University  Physician  Associates ("UPA"),
$114,000  relating to additional  infrastructure to support planned expansion of
hospital-based  physician  processing,  approximately  $54,000  related  to  the
implementation   of   MedicaLogicTM   for  one  of  our  hospital   clients  and
approximately  $115,000 for additional  services to other  hospital  clients and
other increases of $115,000.

A majority  of the  decrease in selling,  general  and  administrative  expenses
related to planned  decreases  in sales and  marketing  expenses of $294,000 and
decreases  in senior  management  compensation  of $102,000 as the result of pay
reductions and the elimination of one position.

On December 31, 1997, the Company recorded a reversal of loan impairment charges
in the amount of $47,000  representing the increase during the quarter in market
value of the 252,557 shares of the Company's common stock held as security for a
loan made in connection  with an acquisition in 1991. This reversal was based on
the closing price of the Company's  common stock on December 31, 1997, which was
$1.313 per share.  If and to the extent that the closing  stock price at the end
of any  subsequent  quarter is greater  than  $1.313,  there will be  additional
reversals of the loan impairment charge.


                                NET INCOME (LOSS)


For the nine months ended December 31, 1997, the Company  reported a net loss of
$585,000 or $0.20 per common share compared to a net loss of $2,889,000 or $0.53
per common share during the same period last year.

For the three months ended December 31, 1997, the Company reported net income of
$804,000 or $0.09 per common share compared to a net loss of $1,300,000 or $0.24
per common  share  during the same period  last year.  The  positive  net income
recorded during the third quarter  represents the first profitable quarter since
the quarter ended December 31, 1993.


                                   12
<PAGE>


                           PART II - OTHER INFORMATION


Item 1       -    Litigation

                  MetroPlus  Litigation  Reference is made to the description of
                  the litigation  between the Company and MetroPlus  Health Plan
                  and the New York  Health  and  Hospitals  Corporation  that is
                  contained in Item 3 of the  Company's  report on Form 10-K for
                  the fiscal  year ended March 31,  1997.  On October 31, 1997 a
                  complete  settlement  of this  litigation  was effected by the
                  parties.   See  Footnote  E  to  the  Consolidated   Financial
                  Statements  of  the  Company  dated   December  31,  1997.  In
                  connection  with this  settlement,  the  Company  settled  all
                  outstanding matters in dispute between itself and VertiHealth,
                  a   subcontractor   to  the  Company  in  its  contract   with
                  MetroPlus/HHC.

                  Other  Litigation  There  has been no  material  change to the
                  status  of the  other  litigation  described  in Item 3 of the
                  Company's  report on Form 10-K for the fiscal year ended March
                  31, 1997.


Item 2       -    Changes in Securities

                  None

Item 3       -    Defaults Upon Senior Securities

                  None


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

                  None

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 filed
                           during the first nine months of the fiscal year
                           ending March 31, 1998.


                                     13
<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)



Date:        February  11, 1998 By:  _/s/ Graham O. King___________ (L.S.)
                                                Graham O. King
                                           Chairman of the Board and
                                            Chief Executive Officer


Date:        February 11, 1998  By:  /s/  Robert Van Metre  ________(L.S.)
                                                Robert E. Van Metre
                                           Principal Accounting Officer and
                                                 Chief Financial Officer

















                                      14
<PAGE>



                                 EXHIBITS INDEX
<TABLE>
<S>                <C>                                                                                                    <C>

     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)                                                                                                   *
        3(4)        Certificate of Designation Relating to the Series B Convertible Preferred Stock With a Par Value of
                    $.01 Per Share of US Servis, Inc. (XIX)                                                                  *
        3(5)        Amendment to Certificate of Designation Relating to the Series A Convertible Preferred Stock With a
                    Par Value of $.01 Per Share of US Servis, Inc. (XIX)                                                     *
        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)                                                     *
       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)                                     *



                                         15
<PAGE>
       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. (XIII)                                                                             *
       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 descendants 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. (XVII)                                           *
       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)                                                                               *




                                            16
<PAGE>
       10(41)       Agreement for Administrative Services, dated December 21, 1995, between New York Health and
                    Hospitals Corporation and the Registrant. (XVIII)                                                        *
       10(42)       Series B  Convertible  Preferred  Stock  Purchase  Agreement
                    among US Servis,  Inc., and the Purchasers named on Schedule
                    1 thereto, dated as of September 30, 1996. (XIX) *
       10(43)       First Amendment to Registration Rights Agreement among US Servis, Inc. and the Purchasers signatory
                    thereto, dated September 30, 1996. (XIX)                                                                 *
       10(44)       Agreement for Services, dated December 31, 1996, between University Physician Associates and the
                    Registrant. (XX)                                                                                         *


                                                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'  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.   
       (XVIII)      Incorporated by reference from  the Registrant's Form 10-Q, dated August 13, 1996.
        (XIX)       Incorporated by reference from the  Registrant's  Form 8-K, dated September 30, 1996. 
        (XX)        Incorporated by reference from the Registrant's Form 10-Q, dated February 12, 1997 as amended June 17, 1997.



</TABLE>

                                    17