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 September 30, 1996 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)

                           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)


         Registrant's  former name,  former  address and former  fiscal year, if
changed since last report)

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 November 12, 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>
                                                               
                                                                       Page No.
<S>                                                                   <C>      
PART I - FINANCIAL INFORMATION                                            1

         CONSOLIDATED BALANCE SHEETS AT SEPTEMBER 30, 1996 AND
         MARCH 31, 1996                                                   2

         CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE SIX AND
         THREE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995                   3

         CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS'
         EQUITY FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1996               4

         CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE SIX
         MONTHS ENDED SEPTEMBER 30, 1996 AND 1995                        5,6

         NOTES TO CONSOLIDATED FINANCIAL STATEMENTS                      7,8

         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 September 30, 1996

         The  consolidated  balance  sheet as of March 31, 1996 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 (UNAUDITED)
<TABLE>
<S>                                                                              <C>                       <C>
                                                                                  September 30,                March 31,
                                                                                      1996                      1996
                                                                                  -------------             ------------  
                                 ASSETS                                            (Unaudited)
CURRENT ASSETS
   Cash and equivalents                                                             8,693,000                 6,546,000
   Certificate of deposit                                                             300,000                   300,000
   Accounts receivable, less allowance for doubtful
      of $470,000 and $458,000                                                      5,452,000                 2,558,000
      Current maturities of notes receivable                                           47,000                   190,000
      Prepaid and refundable income taxes                                              65,000                 2,343,000
      Inventories, prepaid expenses and other current assets                          385,000                   649,000
                                                                                   -----------               -----------
                Total Current Assets                                               14,942,000                12,586,000

PROPERTY AND EQUIPMENT                                                              1,331,000                 1,529,000
                                                                                   -----------               -----------
OTHER ASSETS:
   Software technology, less accumulated amortization
      of $379,000 and $292,000                                                        322,000                   319,000
   Goodwill, less accumulated amortization of $372,000 and $323,000                 3,572,000                 3,621,000
   Other                                                                              233,000                   204,000
                                                                                   -----------               ----------- 
                Total Other Assets                                                  4,127,000                 4,144,000
                                                                                   -----------               -----------
                                                                                   20,400,000                18,259,000
                                                                                   ===========               ===========
     LIABILITIES, REDEEMABLE PREFERRED STOCK AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
   Accounts payable                                                                 1,095,000                   634,000
   Accrued payroll & benefits                                                         888,000                   724,000
   Accrued restructuring charges                                                      900,000                   963,000
   Accrued expenses for use of trade name                                              21,000                   254,000
   Other accrued expenses                                                             946,000                   805,000
   Current portion of capital lease obligation                                        300,000                   230,000
   Deferred income                                                                    281,000                   242,000
   Customers' deposits and other current liabilities                                  386,000                   410,000     
                                                                                   -----------               -----------  
           Total Current Liabilities                                                4,817,000                 4,262,000
                                                                                   -----------               -----------
LONG-TERM LIABILITIES:
   Accrued restructuring charges - net of current portion                             531,000                   905,000
   Long-term capital lease obligation - net of current portion                         85,000                   267,000
                                                                                   -----------               ------------
      Total Long-term Liabilities                                                     616,000                 1,172,000
                                                                                   -----------               -----------
COMMITMENTS AND CONTINGENCIES

REDEEMABLE PREFERRED STOCK:
   Convertible redeemable preferred stock, par value $.01
      per share, 1,500,000 shares authorized, issued and outstanding
      (liquidation preference  $6,228,000) at March 31, 1996                             -                    6,110,000
                                                                                   -----------               ----------- 
SHAREHOLDERS' EQUITY:
   Convertible preferred stock, par value $.01 per share
      10,0000,000 shares authorized, 2,500,000 issued and outstanding
      (liquidation preference $10,481,000) at September 30,1996                     9,845,000                     -
   Common stock $.01 par value; 30,000,000 shares authorized;
      6,312,000 shares issued                                                          63,000                    63,000
   Capital in excess of par value                                                  14,864,000                14,864,000
   Retained earnings (deficit)                                                     (8,381,000)               (6,788,000)
   Subscription receivable                                                           (140,000)                 (140,000)
   Note receivable - related party                                                 (1,225,000)               (1,225,000)
                                                                                   -----------               -----------
                                                                                   15,026,000                 6,774,000
   Less Treasury Stock at cost: 15,700 shares                                          59,000                    59,000
                                                                                   -----------               -----------
        Total Shareholders' Equity                                                 14,967,000                 6,715,000
                                                                                   -----------               -----------
                                                                                   20,400,000                18,259,000
                                                                                   ===========               =========== 
See accompanying notes to consolidated financial statements.
                                                                          

                                     2

</TABLE>
<PAGE>
                     US SERVIS, INC. AND SUBSIDIARIES
                   CONSOLIDATED STATEMENTS OF OPERATIONS
                                 (UNAUDITED)
<TABLE>
<CAPTION>

                                                           SIX MONTHS ENDED
                                                             SEPTEMBER 30,
                                                      ------------------------
                                                         1996          1995
                                                      ----------    ----------
<S>                                                  <C>           <C> 
REVENUES:
   Service fees                                        9,497,000     7,439,000
   Sales of equipment                                    110,000       176,000
   Software license fees                                  95,000       244,000
   Interest and other                                    145,000        57,000
                                                      ----------    ----------
                                                       9,847,000     7,916,000
                                                      ----------    ----------

EXPENSES:
   Cost of services                                    7,082,000     5,309,000
   Cost of equipment sales                                56,000        48,000
   Research and development                              961,000     1,306,000
   Selling, general and administrative                 3,508,000     4,179,000
   Restructuring charges (gains)                            -         (589,000)
   Interest expense                                       61,000        36,000
                                                      ----------    ----------
                                                      11,668,000    10,289,000
                                                      ----------    ---------- 
LOSS BEFORE INCOME TAXES                              (1,821,000)   (2,373,000)

BENEFIT FOR FEDERAL AND STATE INCOME TAXES                 -          (847,000)
                                                      ----------    ----------
NET LOSS                                              (1,821,000)   (1,526,000)
                                                      ==========     ========== 
NET LOSS PER COMMON SHARE                                 ($0.33)       ($0.24)
                                                      ==========     ==========
WEIGHTED AVERAGE NUMBER OF
   COMMON SHARES OUTSTANDING                           6,296,000     6,269,000
                                                      ==========    ========== 

                                                          THREE MONTHS ENDED
                                                             SEPTEMBER 30,
                                                      ------------------------ 
                                                          1996          1995
REVENUES:                                             ----------    ---------- 
   Service fees                                        4,928,000     3,733,000
   Sales of equipment                                     12,000       123,000
   Software license fees                                  73,000       145,000
   Interest and other                                     78,000        25,000
                                                      -----------   ----------- 
                                                       5,091,000     4,026,000
                                                      -----------   ----------- 

EXPENSES:
   Cost of services                                    3,721,000     2,799,000
   Cost of equipment sales                                10,000        22,000
   Research and development                              468,000       680,000
   Selling, general and administrative                 1,800,000     2,256,000
   Restructuring charges (gains)                               0      (589,000)
   Interest expense                                       30,000        18,000
                                                      ----------    ----------
                                                       6,029,000     5,186,000
                                                      ----------    ---------- 
LOSS BEFORE INCOME TAXES                                (938,000)   (1,160,000)

BENEFIT FOR FEDERAL AND STATE INCOME TAXES                     0      (480,000)
                                                      -----------   ----------- 
NET LOSS                                                (938,000)     (680,000)
                                                      ===========   =========== 
NET LOSS PER COMMON SHARE                                 ($0.17)       ($0.11)
                                                      ===========   =========== 
WEIGHTED AVERAGE NUMBER OF
   COMMON SHARES OUTSTANDING                           6,296,000     6,296,000
                                                      ===========   ===========
</TABLE>
See accompanying notes to consolidated financial statements.

                                   3

<PAGE>
                       US SERVIS, INC. AND SUBSIDIARIES
          CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
                   FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1996
                                (UNAUDITED)

<TABLE>
<CAPTION>

                                          CONVERTIBLE
                                         PREFERRED STOCK 
                                        ----------------                     CAPITAL IN                          NOTE
                                               CARRYING    COMMON STOCK      EXCESS OF   RETAINED SUBSCRIPTION RECEIVABLE - TREASURY
                                        SHARES  VALUE    SHARES   PAR VALUE  PAR VALUE   EARNINGS  RECEIVABLE  RELATED PARTY STOCK 
                                        ------  -----    ------   ---------  ---------   --------  ----------- ------------- ------
<S>                                  <C>      <C>        <C>       <C>      <C>         <C>         <C>       <C>          <C>  
BALANCE, MARCH 31, 1996                                 6,312,000   $63,000 $14,864,000 ($6,788,000)($140,000)($1,225,000) $59,000

SIX MONTHS ENDED
  SEPTEMBER 30, 1996:

    Reclassification of Series A 
      Convertible preferred Stock 
      as a result of the elimination of 
      the redemption provision       1,500,000 $5,895,000

    Reversal of accretion equal to 
     accrued dividends on redeemable 
     preferred stock                                                                       228,000

    Issuance of Series B Convertible
      Preferred Stock                1,000,000 $3,950,000

    Net Loss                                                                             (1,821,000)

                                     --------- ---------- --------- ------- ----------  ----------- --------- -----------  ------- 
BALANCE, SEPTEMBER 30, 1996          2,500,000 $9,845,000 6,312,000 $63,000 $14,864,000 ($8,381,000)($140,000)($1,225,000) $59,000 
                                     ========= ========== ========= ======= =========== ============ ========= =========== =======


See accompanying notes to consolidated financial statements.

                                         4
</TABLE>



<PAGE>
                        US SERVIS, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)
<TABLE>
<CAPTION>

                                                                       SIX MONTHS ENDED
                                                                         SEPTEMBER 30,
                                                                    --------------------------
                                                                       1996           1995
                                                                   ------------   ------------ 
<S>                                                               <C>             <C>   
CASH FLOWS FROM OPERATING ACTIVITIES:
   Net loss                                                         (1,821,000)    (1,526,000)
   Adjustments to reconcile net loss to net cash flows
     from operating activities:
        Depreciation and amortization of property and equipment        326,000        218,000
        Amortization of software technology                             88,000         50,000
        Amortization of goodwill                                        49,000         47,000
        Amortization of convertible preferred issue costs               13,000           -
        Gain on sale of equipment                                       (6,000)          -
        Provision for losses on accounts receivable                     48,000        445,000
        Amortization of officer stock compensation                         -           326,000
        Allowance for impairment of related party note                     -          119,000
        Changes in operating assets and liabilities-
           Accounts receivable                                      (2,942,000)      (640,000)
           Note and installment receivables                            143,000        247,000
           Prepaid and refundable income taxes                       2,278,000      1,032,000
           Inventories, prepaid expenses and other current assets      264,000        (60,000)
           Other assets                                                (29,000)      (310,000)
           Accounts payable                                            461,000        142,000
           Accrued payroll & benefits                                  164,000       (340,000)
           Accrued expenses for use of trade name                     (233,000)        39,000
           Other accrued expenses                                      141,000        101,000
           Accrued restructuring                                      (437,000)    (1,158,000)
           Deferred income                                              39,000       (152,000)
           Customer deposits and other current liabilities             (24,000)       321,000
                                                                   ------------   ------------ 
              Net cash flows from operating activities:             (1,478,000)    (1,099,000)

CASH FLOWS FROM INVESTING ACTIVITIES:
  Increase in software technology                                      (91,000)      (113,000)
  Purchase of property and equipment                                  (149,000)      (275,000)
  Proceeds from sale of equipment                                       27,000        293,000
                                                                   ------------   ------------
     Net cash flows from investing activities                         (213,000)       (95,000)
                                                                   ------------   ------------
CASH FLOWS FROM FINANCING ACTIVITIES:


  Principal payment on capital lease obligation                       (112,000)       (14,000)
  Loans to officers                                                        -         (238,000)
  Cost of listing additional shares                                        -          (17,000)
  Issuance of preferred stock net of issuance costs                  3,950,000           -
                                                                    -----------   ------------
     Net cash flows from financing activities                        3,838,000       (269,000)
                                                                    -----------   ------------
NET CHANGE IN CASH AND EQUIVALENTS                                   2,147,000     (1,463,000)

CASH AND EQUIVALENTS, BEGINNING OF PERIOD                            6,546,000      4,121,000
                                                                    -----------   ------------
CASH AND EQUIVALENTS, END OF PERIOD                                  8,693,000      2,658,000
                                                                   ============   ============    


See accompanying notes to consolidated financial statements.
</TABLE>
                                  5
<PAGE>
                    US SERVIS, INC. AND SUBSIDIARIES
                 CONSOLIDATED STATEMENTS OF CASH FLOWS
                               (UNAUDITED)
                               (concluded)
<TABLE>
<CAPTION>
                                                                         SIX MONTHS ENDED
                                                                            SEPTEMBER 30,
                                                                  ---------------------------
                                                                        1996           1995
                                                                  ------------    ------------
<S>                                                              <C>              <C>     

SUPPLEMENTAL INFORMATION:
   Interest paid                                                        38,000          2,000
                                                                  ============    ============ 
   Income taxes paid (refunded)                                     (2,340,000)    (1,879,000)
                                                                  =============   ============
   Deferred gain on sale-leaseback                                       -             41,000
                                                                  =============   ============ 
   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                                           62,000        500,000
                                                                  =============   ============ 


See accompanying notes to consolidated financial statements.
                                    6
 
</TABLE>



<PAGE>
                        US SERVIS, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                               September 30, 1996
                                   (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 provider of business  and  information  management  systems and
services. The Company's primary markets are physician delivery systems, hospital
business  offices  and  managed  care  organizations.  As part  of its  business
management  services,  the Company has  traditionally  been an outsourcer of the
billing and  accounts  receivable  management  and related  information  systems
departments and performed related personnel  management and systems  integration
services of its customers.  The Company is currently  strengthening  these areas
and expanding  its services and  information  systems to include:  financial and
administrative  management,   systems  support  and  management  and  consulting
services in areas that  directly  complement  its business  management  services
offerings,  such  as  at  risk  contracting  and  contract  management,  revenue
enhancement and re-engineering of the billing and accounts receivable 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 hospital inpatient departments.
The Company is phasing out of these activities.  (See Note C below)

Note C - Restructuring Charges:

During fiscal 1995, the Company  implemented a significant  restructuring of its
business  operations in an effort to:  refocus and redirect  resources away from
clinical,   inpatient  information  systems  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 fiscal 1995 $6.8 million,  pre-tax,  restructuring
charge.

The  restructuring  program was  substantially  completed  during  fiscal  1996,
although the payment of certain items - principally,  termination  costs related
to the former Chairman and selected  severance costs,  will continue for several
years.


                                       7


<PAGE>



Note D - Net Loss Per Common Share:

The computation of fully diluted net loss per share was  antidilutive in each of
the applicable  periods  presented; therefore, no separate  calculation of fully
diluted  loss per share is  reported.  Net loss per  common  share  includes  an
adjustment for the amount equal to accrued dividends on the Company's  preferred
stock,  in the amount of  $253,000  or $.04 per share for the six  months  ended
September 30, 1996.

Note E - Convertible Preferred Stock:

On September  30, 1996,  in  consideration  for the receipt of  $4,000,000,  the
Company  issued,  through  a  private  placement,  1,000,000  shares of Series B
Convertible  Preferred Stock, par value $0.01 per share (the "Series B Shares").
Dividends  on the  Series  B Shares  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. After September
30, 1997, the Series B Shares are  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,  the holders of
the Series B Shares are  entitled  to $4.00 per share plus all  accumulated  and
unpaid  dividends.  Details of this  transaction  are reflected in the Company's
Form 8-K, dated September 30, 1996.

On September  27, 1996,  the Company  filed an amendment to the  Certificate  of
Designation  creating  the  rights and  preferences  of the  Company's  Series A
Convertible  Preferred Stock (the "Series A Shares").  This amendment terminated
the optional redemption rights of holders of such Series A Shares.

In connection with the amendment to the Certificate of Designation,  the Company
amended the warrants to purchase 118,500 shares of the Company's Common Stock at
an exercise price of $0.10 per share presently held by the holders of the Series
A Shares to delete certain forfeiture provisions. The deletion of the forfeiture
provisions vests these warrants in the holders thereof.

Note F - Additional Item:

As previously noted in the Company's last form 10Q filing,  the Company received
on July 17,  1996 a letter  from  its  largest  customer,  New York  Health  and
Hospitals  Corporation  ("MetroPlus").  The letter  alleged that the Company was
failing to fulfill  its  responsibilities  under its  contract  with  MetroPlus,
indicated  that the letter  was  intended  to serve as a notice of  default  and
purported to give the Company 90 days to cure the alleged breaches.

Although  the Company has taken issue with  MetroPlus  as to the legal effect of
the letter,  it has mounted a substantial  effort to resolve the problems and to
eliminate  service  shortfalls.  MetroPlus  has  acknowledged  these  efforts by
extending the date for cure.  The Company and MetroPlus are working  together to
resolve  outstanding  issues and the  Company  believes  that the letter will be
rescinded.

The Company recognizes that the MetroPlus  implementation has been difficult and
protracted and as a result,  it has provided  adjustments to reported  MetroPlus
revenues that it believes to be adequate.

                                      8

<PAGE>




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

                                     GENERAL

For the six months  ended  September  30, 1996 (first six months of fiscal 1997)
the Company reported higher revenues as a result of sales booked in fiscal 1996.
Revenues totaled approximately $9.85 million, an increase of $1.9 million or 24%
over  the  same  period  last  year.  Expenses  for the  same  period  increased
approximately  $1.4  million  or 13%.  The  majority  of the  expense  increases
occurred  in cost of  service  and were  revenue  related.  This  resulted  in a
$552,000  (23%)  decline in the  Company's  pre-tax  loss.  The net loss  (after
taxes), however,  increased by $295,000, from $1.53 million to $1.82 million due
to the availability and use of carry forward tax benefits during fiscal 1996.

The  Company's  fiscal  1997 six month net loss per share was $0.33  compared to
$0.24  reported for the same period last year.  The table below presents the net
loss per share by component. Pre-Tax Operating Loss per Share declined by $0.09;
however,  this  improvement  from year to year was  offset by an $0.18 per share
increase of loss resulting from a $0.04 per share  accretion of Preferred  Stock
dividends and a $0.14 per share loss of carry forward tax benefit.


                                                            
                                                Six Months Ended September 30
                            

                                                        1996           1995


      Pre-Tax Operating Loss per Share                  $.29          $.38

      Allowance for the Preferred
                  Stock Dividends                        .04             -


      Tax Benefit                                         -           (.14)

                                                       ------        ------
      Net Loss per Share                                $.33          $.24




                         LIQUIDITY AND CAPITAL RESOURCES

                                                            
                                       September 30, 1996      March 31, 1996
                                                            

      Total Current Assets                $14,942,000            $12,586,000


      Total Current Liabilities             4,817.000              4,262,000

                                          -----------            -----------
      Working Capital                     $10,125,000             $8,324,000


      Working Capital Ratio to 1              3.1                     3.0



During the six months  ended  September  30,  1996,  Working  Capital  increased
$1,801,000 from  $8,324,000 to  $10,125,000.  The increase was the result of the
issuance  of  $4,000,000  of the Series B Shares  that was  partially  offset by
continued operating losses. Cash and equivalents increased $2,147,000, primarily
due to the  issuance  of  $4,000,000  of the Series B Shares,  the  receipt of a
$2,340,000 tax refund and an increase in current liabilities of $555,000, offset
by the net loss and a $2,894,000 increase in accounts  receivable.  The increase
in accounts  receivable  includes an increase in amounts due under the  contract
with MetroPlus of $1,675,000. (See Note F - Subsequent Event) and an increase in
amounts due from  hospital  clients of  $1,251,000.  The increase in amounts due
from hospital clients includes  approximately  $200,000 relating to new business


                                      9
<PAGE>
and  $300,000  relating  to  disputed  charges  due  from a former  client.  The
remainder  relates to seasonal  increases in the payment cycles of the Company's
hospital clients.

The Company  expects that its cash  position,  enhanced  through the sale of the
Series B Shares,  will  decrease  throughout  the  remainder of fiscal 1997 as a
result of operating  losses but  anticipates  that  available cash and cash flow
from operations  will be sufficient to meet the Company's  operating and capital
requirements  through  the end of the  current  fiscal  year and the fiscal year
ending March 31, 1998.

                              RESULTS OF OPERATIONS

                                    REVENUES


                                   Six Months Ended September 30,


                                   1996                       1995


Service fees                    $9,497,000                 $7,439,000


Sales of equipment                 110,000                    176,000


Software license fees               95,000                    244,000


Interest and other                 145,000                     57,000
                                ----------                 ---------- 
                                $9,847,000                 $7,916,000


For the six months ended  September 30, 1996, the Company's  revenues  increased
$1,931,000  or 24.4% when  compared to the same period in the prior fiscal year.
Contributing  to this increase were  increases in service fees of $2,058,000 and
interest and other items of $88,000.  These  increases were partially  offset by
decreases  in sales  of  equipment  of  $66,000  and  software  license  fees of
$149,000.

Service fee increases occurred in physician services  ($549,000) and third party
administrative  ("TPA")  services  ($1,877,000)  provided  to  MetroPlus.  These
increases were partially  offset by a $76,000 decrease in revenues from clinical
services and a $292,000 decrease in revenues from hospital  services,  resulting
from the phasing out of one  hospital  client and the ramp-up of a new  hospital
client.


                                           
                               Three Months Ended September 30,
                                           
                                           
                               1996                            1995
                                           

Service fees                $4,928,000                     $3,733,000


Sales of equipment              12,000                        123,000


Software license fees           73,000                        145,000


Interest and other              78,000                         25,000
                            ----------                     ----------
                            $5,091,000                     $4,026,000


For the three months ended September 30, 1996, the Company's  revenues increased
$1,065,000  or 26.5% when  compared to the same period in the prior fiscal year.
Contributing  to this increase were  increases in service fees of $1,195,000 and
interest  and other items of $53,000,  offset by decreases in sales of equipment
of $111,000 and software license fees of $72,000.

Contributing  to the increase in revenues  from  service fees were  increases of
$390,000  from  physician  services and $673,000  from TPA services  provided to
MetroPlus.  These  increases  were  partially  offset by a $113,000  decrease in
revenues from clinical services and a $71,000 decrease in revenues from hospital
services.

                                    10
<PAGE>

                                    EXPENSES


                                                     
                                        Six Months Ended September 30,
                                                     
                                                     
                                        1996                          1995
                                                     

Cost of services                     $7,082,000                    $5,309,000


Cost of equipment sales                  56,000                        48,000


Research and development                961,000                     1,306,000


Selling, general and administrative   3,508,000                     4,179,000


Restructuring charges (gains)             -                          (589,000)

Interest expense                         61,000                        36,000

                                    -----------                   -----------
                                    $11,668,000                   $10,289,000



Excluding the $589,000  restructuring gain recorded last year,  expenses for the
six months ended  September  30, 1996,  increased  $790,000 when compared to the
same  period  in the prior  fiscal  year.  Contributing  to this  increase  were
increases  in the cost of services of  $1,773,000,  cost of  equipment  sales of
$8,000,  and interest expense of $25,000.  These increases were partially offset
by  decreases  in research  and  development  expenses of $345,000  and selling,
general and administrative expenses of $671,000.

Substantially  all of the  increase  in cost of  services  related  to  expenses
associated  with new clients for TPA and  physician  services.  The reduction in
research and development expenses resulted primarily from the Company's decision
to  de-emphasize  its clinical  information  systems  products.  The decrease in
selling,  general and  administrative  expenses  resulted  from the inclusion of
amortization  of the CEO's  signing bonus of $326,000 in the first six months of
last year and lower provision for allowance for doubtful accounts of $397,000 as
compared to last year.


                                                      
                                          Three Months Ended September 30,
                                                      
                                                      
                                            1996                     1995

Cost of services                         $3,721,000              $2,799,000


Cost of equipment sales                      10,000                  22,000


Research and development                    468,000                 680,000


Selling, general and administrative       1,800,000               2,256,000


Restructuring charges (gains)                 -                    (589,000)




Interest expense                             30,000                 18,000
                                         ----------             ----------
                                         $6,029,000             $5,186,000



Excluding the $589,000  restructuring gain recorded last year,  expenses for the
three months ended September 30, 1996 increased  $254,000,  when compared to the
same  period  in the prior  fiscal  year.  Contributing  to this  increase  were
increases in the cost of services of $922,000  and interest  expense of $12,000,
offset  by  decreases  in cost of  equipment  sales  of  $12,000,  research  and
development  expenses  of  $212,000  and  selling,  general  and  administrative
expenses of $456,000.

                                       11
<PAGE>

Substantially  all of the  increase  in cost of  services  related  to  expenses
associated  with new clients for TPA and  physician  services.  The reduction in
research and development  expenses result primarily from the Company's  decision
to  de-emphasize  its clinical  information  systems  products.  The decrease in
selling,  general and  administrative  expenses  resulted  from the inclusion of
amortization  of the CEO's  signing  bonus of $163,000 in the second  quarter of
last year and a lower provision for allowance for doubtful  accounts of $361,000
as compared to last year.

                                    NET LOSS


For the six months ended September 30, 1996, the Company  reported a net loss of
$1,821,000  or $0.33 per common  share,  compared to a net loss of $1,526,000 or
$0.24 per common share during the same period last year.  The per share loss for
the six months ended September 30, 1996 included  approximately  $.04 related to
preferred stock  dividends and did not include a restructuring  gain of $.09 per
share or a tax  benefit of $.14 per share  which were  recorded in the first six
months of fiscal  1996.  Although  the  Company  has not  recorded a tax benefit
associated  with losses  incurred  during the current fiscal year,  these losses
will be available to offset future income in subsequent years.

For the three months ended  September 30, 1996, the Company  reported a net loss
of  $938,000  or $0.17 per common  share,  compared to a net loss of $680,000 or
$0.11 per common share during the same period last year.  The per share loss for
the quarter ended  September 30, 1996  included  approximately  $0.02 related to
preferred stock  dividends and did not include a restructuring  gain of $.09 per
share or a tax benefit of $.08 per share which were recorded in the same quarter
of last year.

                                   12    
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<TABLE>
<S>              <C>                                                                                      

                           PART II -OTHER INFORMATION


Item 1       -    Litigation

                  The Company has no material litigation pending.


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: One report on Form 8-K was filed
                           during the six months ended  September 30, 1996. This
                           report,  filed  September  30,  1996,  described  the
                           issuance of the Series B Convertible  Preferred Stock
                           and  changes  to the  rights  of the  holders  of the
                           Company's Series A Convertible  Preferred Stock. (See
                           Note E - Convertible Preferred Stock).


                                       13
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<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:        November 12, 1996                 By:  /s/Graham O. King
(L.S.)
                                               Graham O. King
                                               Chairman of the Board and
                                               Chief Executive Officer


Date:        November 12, 1996                 By:  /s/Michael B. Loscalzo
(L.S.)
                                               Michael B. Loscalzo
                                               Principal Accounting Officer and
                                               Chief Financial Officer


                                        14
<PAGE>

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<S>                                                                                                                      <C>

                                 EXHIBITS 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)                                                                                                   *
        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
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<S>                                                                                                                      <C>     
       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)                                                                              *
       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)                                                                               *
       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)                                       *

                                               16
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<S>                                                                                                                       <C> 
       10(43)       First Amendment to Registration Rights Agreement among US Servis, Inc. and the Purchasers signatory
                    thereto, dated September 30, 1996. (XIX)                                                                   *  



                                                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.   (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.

                                        17
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