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| /X/ | QUARTERLY      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT      OF 1934. |
|-----|---------------------------------------------------------------------------------------------------------|

| Delaware                                                            | 02-0656132                 |
|---------------------------------------------------------------------|----------------------------|
| (State      or other jurisdiction of incorporation or organization) | (IRS      Employer ID No.) |

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|                                                     |                                                                                            | PAGE                 |
|----------------------------------------------------------|-------------------------------------------------------------------------------------------------|----------------------|
|                                                     |                                                                                            |                 |
|                                                     |                                                                                            |                 |
| PART      I  FINANCIAL INFORMATION - Unaudited |                                                                                            |
|                                                     |                                                                                            |                 |
|                                                     | Consolidated      Balance Sheet-March 31, 2008                                                  | 1     |
|                                                     |                                                                                            |                 |
|                                                     | Consolidated      Statements of Operations-Three Months Ended March 31, 2008 and      2007      | 2     |
|                                                     |                                                                                            |                 |
|                                                     | Consolidated      Statement of Cash Flows-Three Months Ended March 31, 2008 and      2007       | 3     |
|                                                     |                                                                                            |                 |
|                                                     | Notes      to the Consolidated Financial Statements                                             | 4     |
|                                                     |                                                                                            |                 |
|                                                     | Management's      Discussion and Analysis of Financial Condition and Results of      Operations | 8     |
|                                                     |                                                                                            |                 |
| PART      II OTHER INFORMATION                           |                                                                                            |
|                                                     |                                                                                            |                 |
|                                                     | Item      1. Legal Proceedings                                                                  | 11    |
|                                                     |                                                                                            |                 |
|                                                     | Item      2. Changes in Securities                                                              | 11    |
|                                                     |                                                                                            |                 |
|                                                     | Item      3. Defaults Upon Senior Securities                                                    | 11    |
|                                                     |                                                                                            |                 |
|                                                     | Item      4. Submission of Matters to a Vote of Security Holders                                | 11    |
|                                                     |                                                                                            |                 |
|                                                     | Item      5. Other Information                                                                  | 11    |
|                                                     |                                                                                            |                 |
|                                                     | Item      6. Exhibits on Reports on Form 8-K                                                    | 11    |
|                                                     |                                                                                            |                 |
| Signature      Page                                      | 12                                                                               |

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| ASSETS                                                                                                                                                                                          |   |           |       |   |              |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|------------|--------|-------------------|--------|
|                                                                                                                                                                                            |   | March      31, |       |   | December      31, |   |
|                                                                                                                                                                                            |   | 2008           |       |   | 2007              |   |
| CURRENT  ASSETS:                                                                                                                                                                      |   |           |       |   |              |   |
|      Cash      and cash equivalents                                                                                                                                    |   | $              | 270,690    |   |              | $      | 406,503 |   |
|      Accounts      receivable                                                                                                                                          |   |           | 1,969,545  |   |              |   | 1,073,949 |   |
|      Inventories,      net                                                                                                                                             |   |           | 106,452    |   |              |   | 81,611 |   |
|      Prepaid      expenses                                                                                                                                             |   |           | 36,600     |   |              |   | - |   |
|           TOTAL  CURRENT  ASSETS                                                                                          |   |           | 2,383,287  |   |              |   | 1,562,063 |   |
|                                                                                                                                                                                            |   |           |       |   |              |   |   |   |
| PROPERTY,  PLANT  AND  EQUIPMENT,      net                                                                                                                        |   |           | 3,459,033  |   |              |   | 3,352,256 |   |
|                                                                                                                                                                                            |   |           |       |   |              |   |   |   |
| LONG-TERM  NOTE  RECEIVABLE                                                                                                                                                 |   |           | 270,767    |   |              |   | 276,967 |   |
|                                                                                                                                                                                            |   |           |       |   |              |   |   |   |
| HOSPITAL  CONTRACTS,      net                                                                                                                                                         |   |           | 6,044,463  |   |              |   | 6,297,779 |   |
|                                                                                                                                                                                            |   |           |       |   |              |   |   |   |
| DEBT  ISSUANCE  COSTS                                                                                                                                                       |   |           | 660,172    |   |              |   | 642,199 |   |
|           TOTAL  ASSETS                                                                                                             |   | $              | 12,817,722 |   |              | $      | 12,131,264 |   |
|                                                                                                                                                                                            |   |           |       |   |              |   |   |   |
| LIABILITIES  AND  STOCKHOLDERS'  EQUITY                                                                                                                           |   |           |       |   |              |   |   |   |
|                                                                                                                                                                                            |   |           |       |   |              |   |   |   |
| CURRENT  LIABILITIES:                                                                                                                                                                 |   |           |       |   |              |   |   |   |
|      Current      portion in long-term liabilities                                                                                                                     |   | $              | 973,333    |   |              | $      | 1,175,684 |   |
|      Accounts      payable                                                                                                                                             |   |           | 2,129,222  |   |              |   | 1,385,083 |   |
|      Notes      payable                                                                                                                                                |   |           | 437,317    |   |              |   | 752,219 |   |
|      Other      current liabilities                                                                                                                                    |   |           | 306,138    |   |              |   | 270,337 |   |
|           TOTAL  CURRENT  LIABILITIES                                                                                     |   |           | 3,846,010  |   |              |   | 3,583,323 |   |
|                                                                                                                                                                                            |   |           |       |   |              |   |   |   |
| LONG-TERM  DEBT                                                                                                                                                                       |   |           | 7,087,754  |   |              |   | 6,216,667 |   |
|                                                                                                                                                                                            |   |           |       |   |              |   |   |   |
| REDEEMABLE PREFERRED STOCK, $.01      par value,1,000,000authorized                                                                                                              |   |           |       |   |              |
|      Issued      and outstanding 30,000 shares(December 31, 2007) and 60,000      shares(December 31, 2006) at par value                                               |   |           | 300        |   |              |   | 300 |   |
|                                                                                                                                                                                            |   |           |       |   |              |   |   |   |
| STOCKHOLDERS'  EQUITY:                                                                                                                                                                |   |           |       |   |              |   |   |   |
|      Common      stock, $.001 par value, 100,000,000 shares ;authorized; 36,120,707 (Dec      31,2007) and 23,671,601(Dec 31, 2006) shares issued and      outstanding |   |           | 36,121     |   |              |   | 36,121 |   |
|      Additional      paid-in-capital                                                                                                                                   |   |           | 7,305,619  |   |              |   | 7,305,619 |   |
|      Retained      deficit                                                                                                                                             |   |           | (5,458,081 | )      |              |   | (5,010,765 | ) |
|           TOTAL  STOCKHOLDERS'  EQUITY                                                                                    |   |           | 1,883,959  |   |              |   | 2,331,274 |   |
|           TOTAL  LIABILITIES  AND      STOCKHOLDERS'  EQUITY                                                    |   | $              | 12,817,722 |   |              | $      | 12,131,264 |   |

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|                                                                                                    |   | THREE      MONTHS ENDED |       |
|---------------------------------------------------------------------------------------------------------|--------|-------------------------|------------|
|                                                                                                    |   | March      31,          |       |   | March      31, |   |
|                                                                                                    |   | 2008                    |       |   | 2007 |   |
|                                                                                                    |   |                    |       |   |   |   |
| NET  SALES                                                                                    |   | $                       | 3,876,233  |   |   | $ | 251,978 |   |
|                                                                                                    |   |                    |       |   |   |   |   |   |
| COST  OF  SALES                                                                     |   |                    | 3,320,185  |   |   |   | 239,231 |   |
| GROSS  PROFIT                                                                                 |   |                    | 556,049    |   |   |   | 12,747 |   |
|                                                                                                    |   |                    |       |   |   |   |   |   |
| DIRECT  OPERATING  EXPENSES:                                                        |   |                    |       |   |   |   |   |   |
|      Sales      and marketing                                                  |   |                    | 98,413     |   |   |   | 90,053 |   |
|      Administration                                                            |   |                    | 692,876    |   |   |   | 29,054 |   |
| TOTAL      OPERATING  EXPENSES                                                                |   |                    | 791,288    |   |   |   | 119,107 |   |
|                                                                                                    |   |                    |       |   |   |   |   |   |
| (LOSS)  FROM  OPERATIONS  BEFORE      OTHER INCOME  AND EXPENSE |   |                    | (235,240   | ) |   |   | (106,360 | ) |
|                                                                                                    |   |                    |       |   |   |   |   |   |
| OTHER  INCOME  AND  EXPENSES                                              |   |                    |       |   |   |   |   |   |
|      Interest      expense                                                     |   |                    | 212,076    |   |   |   | - |   |
|                                                                                                    |   |                    | 212,076    |   |   |   | - |   |
| OPERATING  LOSS  BEFORE  TAXES                                            |   |                    | (447,316   | ) |   |   | (106,360 | ) |
|                                                                                                    |   |                    |       |   |   |   |   |   |
| PROVISION  FOR  INCOME  TAX                                               |   |                    | -          |   |   |   | - |   |
|                                                                                                    |   |                    |       |   |   |   |   |   |
| NET  (LOSS)                                                                                   |   | $                       | (447,316   | ) |   | $ | (106,360 | ) |
|                                                                                                    |   |                    |       |   |   |   |   |   |
| Net      Loss per share:                                                                                |   |                    |       |   |   |   |   |   |
|                                                                                                    |   |                    |       |   |   |   |   |   |
| Basic                                                                                                   |   | $                       | (0.02      | ) |   | $ | (0.01 | ) |
|                                                                                                    |   |                    |       |   |   |   |   |   |
| Weighted      common shares:                                                                            |   |                    |       |   |   |   |   |   |
|                                                                                                    |   |                    |       |   |   |   |   |   |
| Basic                                                                                                   |   |                    | 25,540,612 |   |   |   | 24,136,601 |   |

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|                                                                                                             |   | THREE      MONTHS ENDED |      |
|------------------------------------------------------------------------------------------------------------------|--------|-------------------------|-----------|
|                                                                                                             |   | March      31,          |      |   | March      31, |   |
|                                                                                                             |   | 2008                    |      |   | 2007 |   |
|                                                                                                             |   |                    |      |   |   |   |
| CASH      FLOWS FROM OPERATING  ACTIVITIES:                                                            |   |                    |      |   |   |   |
|    Net      (Loss)                                                                                |   | $                       | (447,316  | ) |   | $ | (106,360 | ) |
|    Adjustments      to reconcile net (loss) to net cash used in operations:                       |   |                    |      |   |   |   |   |   |
|      Depreciation      and amortization                                                 |   |                    | 284,031   |   |   |   | 43,388 |   |
|      (Increase)      decrease in assets:                                                |   |                    |      |   |   |   |   |   |
|          Accounts      receivable                                   |   |                    | (895,596  | ) |   |   | (46,818 | ) |
|          Inventories                                                |   |                    | (24,841   | ) |   |   | - |   |
|          Other      current assets                                  |   |                    | (36,600   | ) |   |   | (46,250 | ) |
|      Increase      (decrease) in liabilities:                                           |   |                    |      |   |   |   |   |   |
|          Accounts      payable                                      |   |                    | 744,139   |   |   |   | 3,152 |   |
|          Other      current liabilities                             |   |                    | 35,801    |   |   |   | 13,131 |   |
|          Notes      payable                                         |   |                    | (314,902  | ) |   |   | 50,000 |   |
|               Total      adjustments       |   |                    | (207,969  | ) |   |   | (9,659 | ) |
|     Net      cash flows used in operating activities                                         |   |                    | (655,285  | ) |   |   | (116,019 | ) |
|                                                                                                             |   |                    |      |   |   |   |   |   |
| CASH      FLOWS INVESTING  ACTIVITIES:                                                                 |   |                    |      |   |   |   |   |   |
|          Purchase      of property, plant and equipment             |   |                    | (178,759  | ) |   |   | (3,159 | ) |
|          Long      term note receivable                             |   |                    | 6,200     |   |   |   | - |   |
|          Reduction/(Purchase)      of hospital contracts            |   |                    | 41,268    |   |   |   | (407,931 | ) |
|          Deferred      loan costs                                   |   |                    | (17,973   | ) |   |   | - |   |
|                                                                                                             |   |                    |      |   |   |   |   |   |
|     Net      cash used in investing activities                                               |   |                    | (149,265  | ) |   |   | (411,090 | ) |
|                                                                                                             |   |                    |      |   |   |   |   |   |
| CASH      FLOWS FINANCING  ACTIVITIES:                                                                 |   |                    |      |   |   |   |   |   |
|          Proceeds      from preferred stock issued                  |   |                    | -         |   |   |   | 537,499 |   |
|          Proceeds      from long-term debt                          |   |                    | 1,025,000 |   |   |   | - |   |
|          Principal      payments on long term debt                  |   |                    | (356,264  | ) |   |   | - |   |
|          Redeemable      preferred stock                            |   |                    | -         |   |   |   | - |   |
|                                                                                                             |   |                    |      |   |   |   |   |   |
|    Net      cash flows provided by financing activities                                           |   |                    | 668,736   |   |   |   | 537,499 |   |
|                                                                                                             |   |                    |      |   |   |   |   |   |
|                                                                                                             |   |                    |      |   |   |   |   |   |
| NET  (DECREASE)      INCREASE  IN  CASH                                            |   |                    | (135,813  | ) |   |   | 10,390 |   |
|                                                                                                             |   |                    |      |   |   |   |   |   |
| CASH  AND  CASH  EQUIVALENTS,  BEGINNING  OF  PERIOD |   |                    | 406,503   |   |   |   | 1,690 |   |
|                                                                                                             |   |                    |      |   |   |   |   |   |
| CASH  AND  CASH  EQUIVALENTS,  END  OF  PERIOD       |   | $                       | 270,690   |   |   | $ | 12,080 |   |
|                                                                                                             |   |                    |      |   |   |   |   |   |
| Supplemental      disclosure of cash flow information:                                                           |   |                    |      |   |   |   |   |   |
| Cash      paid during the period for:                                                                            |   |                    |      |   |   |   |   |   |
|    Interest,      net                                                                             |   |                    | 203,468   |   |   |   | - |   |

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| Note      1 | Basis      of Presentation |
|-------------|----------------------------|

| Note      2 | New      Accounting Standards |
|-------------|-------------------------------|

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| Note      3 | Business      Combination |
|-------------|---------------------------|

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| Note      4 | Inventories |
|-------------|-------------|

|                   |   | March 31, 2008 |    |   | December 31, 2008 |   |
|------------------------|--------|----------------|---------|--------|-------------------|--------|
|                   |   |           |    |   |              |   |
| Finished      products |   | $              | 106,452 |   |              | $      | 81,611 |   |

| Note      5 | Goodwill      and Intangible Assets |
|-------------|-------------------------------------|

| Note      6 | Long-Term      Debts |
|-------------|----------------------|

|                                                    |   | March      2008 |          |   | December      2007 |   |
|---------------------------------------------------------|--------|-----------------|---------------|--------|--------------------|--------|
|                                                    |   |            |          |   |               |   |
| 12%      Convertible Debenture                          |   | $               | 6,996,087     |   |               |   | 7,000,000 |   |
| Line      of Credit                                     |   |            | 675,000       |   |               |   | - |   |
| Other      Long-term Debt                               |   |            | 350,000       |   |               |   | 392,351 |   |
|                                                    |   |            | 8,021,087     |   |               |   | 7,392,351 |   |
|                                                    |   |            |          |   |               |   |   |   |
|                                                    |   |            |          |   |               |   |   |   |
| Less:  Current      portion of long-term debt |   |            |  933,000 |   |               |   | 1,175,684 |   |
|                                                    |   |            | 7,092,000     |   |               |   | 6,216,667 |   |

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| Note      7 | Commitments      and Contingencies |
|-------------|------------------------------------|

| Note      8 | Fair      Value Measurements |
|-------------|------------------------------|

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ITEM 2.  RECENT SALES OF EQUITY SECURITIES AND USE OFPROCEEDS

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|                     | Patient      Portal Technologies, Inc. |
|--------------------------|----------------------------------------|
|                     |                                   |
| Dated:      May 14, 2008 |                                   |
|                     | By: /s/ KEVIN      KELLY               |
|                     | Kevin      Kelly, President            |

| NAME   |                           | TITLE  |                                    | DATE   |
|--------|--------------------------------|--------|-----------------------------------------|--------|
|   |                           |   |                                    |   |   |
| By:    | /s/ KEVIN      KELLY           |   | President,                              |   | 5/14/08 |
|   | Kevin      Kelly               |   | Chairman      of the Board of Directors |   |   |
|   |                           |   |                                    |   |   |
|   |                           |   |                                    |   |   |
| By:    | /s/ THOMAS      HAGAN          |   | Acting      Chief Financial Officer,    |   | 5/14/08 |
|   | Thomas      Hagan              |   | Director                                |   |   |
|   |                           |   |                                    |   |   |
|   |                           |   |                                    |   |   |
| By:    | /s/ DANIEL      COHOLAN        |   | Director                                |   | 5/14/08 |
|   | Daniel      Coholan            |   |                                    |   |   |
|   |                           |   |                                    |   |   |
|   |                           |   |                                    |   |   |
| By:    | /s/ ROUNSEVELLE W.      SCHAUM |   | Director                                |   | 5/14/08 |
|   | Rounsevelle      W. Schaum     |   |                                    |   |   |

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