SECURITIES AND EXCHANGE COMMISSION
                               Washington, D.C.  20549
                                                  

                                      Form 10-Q

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

             For the Quarterly Period Ended    November 30, 1995  

                                         OR

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

             For the Transition period from           to           

                            Commission File Number 0-3997

                              GERIATRIC & MEDICAL COMPANIES, INC.         
               (Exact name of registrant as specified in the charter)

             Delaware                                       23-1713341          
(State or other jurisdiction                     (IRS Employer Identification
 of incorporation or organization)                                    Number)
  
               5601 Chestnut Street, Philadelphia, Pennsylvania  19139    
           (Address of principal executive offices)             (zip code)

                                    (215) 476-2250                        
                 Registrant's telephone number, including area code 

                                          N/A                             
                 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        

Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date.

On January 12, 1996, there were 15,416,683 shares of common stock,
$.10 par value, outstanding.

                           GERIATRIC & MEDICAL COMPANIES,
                                INC. AND SUBSIDIARIES

                                        INDEX

Part I       Financial Information                                  Page

Item 1       Financial Statements 

             Consolidated Balance Sheets ---
             November 30, 1995 (unaudited)
             and May 31, 1995                                          3

             Consolidated Statements of 
             Operations (unaudited) ---
             Three and Six months ended November 30, 1995
             and November 30, 1994                                     4

             Consolidated Statements of 
             Cash Flows (unaudited) ---
             Six months ended November 30, 1995 
             and November 30, 1994                                     5

             Notes to Consolidated Financial Statements              6-9

Item 2       Management's Discussion and Analysis of Results of
             Operations and Financial Condition                    10-14

Part II      Other Information

Item 6       Exhibits and Reports on Form 8-K                         15

Signature                                                             16

Exhibit 27 - Article 5 FDS                                            17


                                       2

    PART I         FINANCIAL INFORMATION

    ITEM 1        GERIATRIC & MEDICAL COMPANIES INC. AND SUBSIDIARIES
                  CONSOLIDATED BALANCE SHEETS
                  (IN THOUSANDS EXCEPT PAR VALUES AND SHARES)


<TABLE>

 <S>                                            <C>       <C>
                                             November 30,  May 31,
                                               1995         1995 *
        ASSETS                               (Unaudited)

    Current Assets:
      Cash                                  $     487     $   3,368
      Restricted cash                             704           715
      Patients' funds                           1,401         1,388
      Accounts receivable, net of allowance
        of $8,858 at November 30, 1995 and
        $7,733 at May 31, 1995                 36,596        24,145
      Other receivables, net of allowance
        of $975                                 5,418         5,919
      Prepaids and other assets                 3,446         6,622
      Inventories                               4,180         5,154
      Due from third-party payors, net of
        allowance of $4,299 at November 30,
        1995 and $3,391 at May 31, 1995        14,236        13,948

          Total current assets                 66,468        61,259

    Property and equipment:
      Land                                      3,614         3,702
      Building and improvements                99,711        99,971
      Equipment and fixtures                   39,079        38,299
      Construction-in-progress                 10,184         5,259
                                              152,588       147,231

    Less accumulated depreciation              63,196        59,293
                                               89,392        87,938

    Other noncurrent assets:
      Restricted cash                           2,911         3,021
      Investments in joint ventures               385           385
      Goodwill net of accumulated amortization
        of $430 at November 30, 1995 and
        $359 at May 31, 1995                    2,498         2,567
      Notes and other receivables               9,504        11,132
      Deferred charges and other, net of
        accumulated amortization of $3,237
        at November 30, 1995 and $2,891
        at May 31, 1995                         9,938        10,415
                                               25,236        27,520

                                            $ 181,096     $ 176,717

                                            November         May 31, 
                                             1995             1995 *
       LIABILITIES                       (Unaudited)

      Current Liabilities:
      Current portion of long-term debt         $   3,077   $  2,906
      Accounts payable                             20,739     23,770
      Accrued expenses                             11,570     10,151
      Total current liabilities                    35,386     36,827



      Other long-term liabilities                   2,949      3,090
      Long-term debt                              124,111    120,660

      Subordinated debenture                        1,000      1,000

      Deferred gains                                  492        492

      Commitments and contingencies


      STOCKHOLDERS' EQUITY (DEFICIT)

      Preferred stock, $.10 par, authorized
      15,000,000 shares; none were issued
      or outstanding                                 -           -
      Common stock, $.10 par, authorized
      30,000,000 shares in 1995 and 1994;
      issued and outstanding 15,416,183 as of
      November 30, 1995 and 15,244,261
      as of May 31, 1995                              1,542    1,524
      Capital in excess of par value                 14,730   14,643
      Accumulated earnings (deficit)                    886   (1,519)
                                                     17,158   14,648

                                                  $ 181,096  $176,717

</TABLE>

* Reclassified for comparative purposes

             See accompanying notes to consolidated financial statements.


                     GERIATRIC & MEDICAL COMPANIES, INC. AND SUBSIDIARIES

                                CONSOLIDATED STATEMENTS OF OPERATIONS

                              (In thousands except per common share)

                                           (Unaudited)

<TABLE>
<S>                               <C>        <C>           <C>      <C>
                               Three Months Ended        Six Months Ended

                                  Nov. 30,   Nov. 30,   Nov. 30,   Nov. 30, 
                                    1995       1994      1995        1994
Operating Revenues, net          $ 49,506  $  47,782  $  98,915   $ 93,757

   Expenses:

   Operating expenses              41,658     40,850     83,263     79,955
   Depreciation and amortization    2,252      2,074      4,493      4,152
   Interest expense, net            2,991      2,648      5,973      5,368
   Provision for costs on sale
    of accounts receivable            984        928      2,059      2,080
                                   47,885     46,500     95,788     91,555

   Income before income taxes      1,621       1,282      3,127      2,202
   Income taxes                      373         257        722        437


   Net Income                    $ 1,248   $   1,025   $  2,405   $  1,765

   Earnings per common share     $  0.08   $    0.07   $   0.16   $   0.12

    Average common shares
     outstanding                  15,313      15,196     15,313     15,196


</TABLE>

    See accompanying notes to consolidated financial statements.


 GERIATRIC & MEDICAL COMPANIES, INC. AND SUBSIDIARIES
 CONSOLIDATED STATEMENTS OF CASH FLOWS
 SIX MONTHS ENDED NOVEMBER 30, 1995 AND NOVEMBER 30, 1994
 (IN THOUSANDS)
 (UNAUDITED)

<TABLE>
<S>                                                 <C>             <C> 
                                                       1995        1994 *
    CASH FLOWS FROM OPERATING ACTIVITIES:

      Net income                              $       2,405   $   1,765

      Adjustments to reconcile net income to net cash (used in)
      provided by operating activities:
          Provision for uncollectible accounts        2,019       2,039
          Depreciation and amortization               4,493       4,152
          Other items                                   350           -
          Changes in assets and liabilities,   
          net of effects from acquisitions:
              Increase in patients' funds               (13)      (895)
              Increase in accounts receivable       (14,470)    (3,110)
              Decrease in other receivables             501         87
              Decrease in prepaids and other assets 
              and inventories                         4,150        228
              (Increase) decrease in net amounts 
              due from third-party payors              (288)       452
              Decrease in accounts payable and 
              accrued expenses                       (1,612)    (2,517)
              Decrease in other long-term liabilities  (141)      (278)
          Net cash (used in) provided by operating 
          activities                                 (2,606)     1,923

    CASH FLOWS FROM INVESTING ACTIVITIES:

      Capital expenditures                             (640)    (1,383)
      Capital expenditures financed by construction
          and property improvement funds             (4,867)    (1,535)
      Decrease in notes and other receivables         1,628        351
      Acquisitions of ambulance companies, net of 
      cash acquired                                       -       (364)
      Other investing activities, net                   530        234
          Net cash used in investing activities      (3,349)    (2,697)

    CASH FLOWS FROM FINANCING ACTIVITIES:

      Proceeds from borrowings                        4,867     2,535
      Repayment of debt                              (1,569)   (2,942)
      Decrease in restricted cash                       121     1,325
      Expenditures for deferred charges                (355)     (682)
      Proceeds from issuance of common stock             10        24
          Net cash provided by financing              3,074       260

    NET DECREASE IN CASH AND CASH EQUIVALENTS        (2,881)     (514)

    CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR    3,368       927

    CASH AND CASH EQUIVALENTS AT END OF PERIOD    $     487   $   413

    SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
      Cash paid during the period for:
      Interest                                    $    8,172  $ 8,073
      Income taxes                                $      313  $    91

    SUPPLEMENTAL SCHEDULE OF NONCASH ITEMS:
      Assets acquired under capital leases        $      324   $  607
      Acquisitions of ambulance companies:
          Fair value of assets acquired           $        -   $1,911
          Cash paid and debt issued                        -   (1,593)
          Liabilities assumed                     $        -   $  318


</TABLE>
    * Reclassified for comparative purposes

See accompanying notes to consolidated financial statements.


              GERIATRIC & MEDICAL COMPANIES, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS



1.     Principles of Consolidation and Presentation:

       In the opinion of Management, the accompanying unaudited
       consolidated financial statements contain all adjustments
       (consisting of normal recurring accruals) necessary to
       present fairly the financial position as of November 30,
       1995 and May 31, 1995, and the results of operations for
       the three and six months ended November 30, 1995 and
       November 30, 1994 and changes in cash flows for the six
       months ended November 30, 1995 and November 30, 1994. 
       These financial statements should be read in conjunction
       with Geriatric & Medical Companies, Inc.'s (the
       "Company") annual report filed with the Securities and
       Exchange Commission for the year ended May 31, 1995.
       Results of operations for the three and six months ended
       November 30, 1995 and November 30, 1994 are not
       necessarily indicative of results of operations expected
       for the full year.

2.     Accounts Receivable:

       Effective November 4, 1993, the Company entered into a
       three year $25,000,000 accounts receivable sale agreement
       with recourse with a financial institution, retiring its
       previous arrangement.  The Company may sell, on a
       continuing basis, up to $25,000,000 of certain qualifying
       accounts receivable.  The Company initially receives, net
       of reserves, approximately 80% of accounts receivable
       submitted.  This transaction has been accounted for as a
       sale under Financial Accounting Standards Board Statement
       No. 77 guidelines but may be treated as a financing
       (borrowing) transaction for Medicare/Medicaid purposes.  
       
       Under the terms of the agreement, the Company will pay
       program costs at 9.84% on the outstanding receivables
       submitted and sold.  During the six month period ended
       November 30, 1995 and 1994, the Company submitted and
       sold approximately $55,612,000 and $54,298,000,
       respectively, of certain qualifying accounts receivables. 
       As of November 30, 1995 and 1994, the balance of the
       receivables submitted for sale was approximately
       $15,958,000 and $16,852,000 of which approximately
       $12,766,000 and $13,482,000 were funded.  The unfunded
       portion is included in other receivables on the balance
       sheets.

       In May 1994, the Company entered into an agreement to
       sell certain long-term receivables due from third-party
       payors.  The program costs charged are 9.75% of the
       outstanding receivables submitted and sold.  The maximum
       amount of cash available under this agreement is
       $5,000,000. The Company received, net of reserves 80% of
       net third party receivables sold.  During the six month
       period ended November 30, 1995 and 1994, the Company
       submitted and sold approximately $3,000,000 and
       $3,103,000 of certain qualifying accounts receivables. 
       As of November 30, 1995 and 1994 the balance of the
       receivables submitted for sale was approximately
       $3,150,000 and $2,938,000, respectively.  

       For the six months ended November 30, 1995 and 1994, the
       Company has recognized a provision for costs on sale of
       accounts receivable of $2,059,000 and $2,080,000
       respectively. The provision for costs on sale of accounts
       receivable consists of :  (A) program and other costs
       incurred on receivables sold and (B) servicing costs
       relating to the collection of receivables sold.  Under
       the sale agreement, the Company continues and is required
       to service the accounts receivable sold.  

3.     Commitments and Contingencies:

       All of the following are updates of committments and
       contingicies previously disclosed:



A.     Geriatric & Medical Companies, Inc. (the "Company") was
       named a defendant, together with GMS Management, Inc.,
       and various current and former officers of the Company,
       in a class action suit which was filed in September,
       1992, in the United States District Court for the Eastern
       District of Pennsylvania in Philadelphia.  The plaintiff
       class alleged that, among other things, various reports
       and press releases issued by the Company misrepresented
       or omitted adverse material facts concerning various
       matters relating to the Company and its affairs.  The
       plaintiff class did not seek a specified sum other than
       "to pay to plaintiff and to all members of the class
       damages in an amount to be proven at trial, with interest
       thereon."  The jury returned a verdict on Friday, June 9,
       1995, resulting in no liability on five of the six
       alleged misrepresentations or omissions set forth in the
       plaintiff's complaint.  The jury found in favor of the
       plaintiff class with respect to the remaining alleged
       omission relating to the criminal investigation conducted
       by the Pennsylvania Attorney General.  Based on the
       findings of the jury, the court entered judgment of $.20
       per share in damages for each share of the Company's
       common stock purchased by a class member during the
       period March 1, 1992 to September 2, 1992.  The Company
       believes that damages in the aggregate, calculated
       pursuant to the judgment will not exceed $350,000,
       exclusive of costs, pre and post judgment interest and
       other charges which may apply.  

             As a result of the jury's findings, the primary
             insurer of the individual defendants, which had
             entered into a Funding Agreement under which the
             insurer had promised to pay 60% of the legal fees
             and other expenses associated with the defense of
             this suit, after the retention amount of $250,000
             had been paid, sent a letter stating that it was
             terminating the Funding Agreement.  Accordingly, the
             insurer has declined to participate in the payment
             of any part of the judgment or additional costs and
             fees and expenses to be incurred in this matter and
             could seek a repayment of advances already made. 
             The Company intends to pursue its rights under its
             insurance policies and to enforce the Funding
             Agreement previously entered into with the insurance
             company.  All parties have filed post trial motions
             in connection with this judgment.

B.     Life Support Ambulance, Inc. ("LSA"), a subsidiary of the
       Company, received a notice of suspension of payments
       relating to Medicare billings submitted by LSA to its
       Medicare intermediary effective April 6, 1995.  The
       suspension was imposed because the intermediary had
       received evidence that prior payments made to LSA may not
       have been billed correctly.  The intermediary has not yet
       quantified the nature of the alleged deficiency in
       billing procedures nor the amount for which LSA may have
       improperly billed Medicare.  In connection therewith, the
       Office of the Inspector General issued a search warrant
       and seized certain records of LSA.  Subsequently, the
       Company has responded to subpoenas issued by the federal
       grand jury investigating this matter. LSA believes that
       it has operated, at all times, in substantial compliance
       with all provisions required by Medicare relating to
       reimbursement for services.  On August 11, 1995, LSA
       reached an agreement with its Medicare intermediary
       whereby Medicare will retain, until resolution of the
       issues amounts it was then holding, approximately
       $3,100,000 and 25% of future billings processed. In
       connection with the agreement, Geriatric & Medical
       Companies, Inc. has agreed to guarantee the payment by
       LSA of up to $5,000,000 of any finally determined
       overpayments.  As of November 30, 1995, the amount being
       held by the intermediary was approximately $3,800,000. 
       It is not possible to determine at the present time the
       length of the suspension or whether such suspension will
       have a material adverse effect on the operations or the
       financial condition of the Company.   

C.     On May 19, 1995, the U.S. Attorney for the Eastern
       District of Pennsylvania delivered a draft complaint to
       the Company which alleges that Healthcare Hospitality
       Services, Inc. ("HCHS"), a subsidiary of the Company,
       failed to recommend adequate nutritional requirements to
       three residents of a nursing home facility (the
       "Facility") previously managed by another subsidiary of
       the Company. The draft complaint contains a further
       allegation that HCHS billed Medicare and state medical
       assistance programs for reimbursement for nutritional
       services which were not provided to such residents.  The
       U.S. Attorney has invited the Company to discuss a
       possible resolution of this matter before the filing of
       such complaint in federal district court.  The Company
       has had preliminary discussions with the U.S. Attorney
       and believes that this matter may be settled prior to the
       filing of such complaint by the payment of an as of yet
       unspecified amount, with no admission of wrongdoing. 
       Although the outcome of this matter can not be predicted,
       the Company denies any wrongdoing and is prepared to
       vigorously defend this action should the complaint be
       filed.  The Company's management agreement with the
       Facility provides that the Facility indemnify and hold
       the Company harmless with respect to claims such as that
       alleged by the U.S. Attorney.  However, it is unclear
       whether the Facility has or would have the funds
       necessary to provide such indemnification.

             On or about June 6, 1995, an officer of HCHS was
             served with a subpoena issued by the Attorney
             General of the Commonwealth of Pennsylvania,
             relating to the nutritional care provided to
             residents of the Facility.  In addition, the
             Attorney General has subpoenaed certain records of
             the Company.  It is the belief of counsel for the
             Company that such subpoena results from the same
             facts surrounding the operations of the Facility as
             are alleged in the draft complaint delivered to the
             Company by the U.S. Attorney, as discussed above. 
             At the present time, it is unclear as to what
             action, if any, the State Attorney General intends
             to take with respect to the Company's management of
             and other involvement with this Facility.  

             The Company is involved in routine government
             inquiries, audit surveys and administrative
             proceedings concerning its activities and
             operations.  The Company is also involved in various
             claims and legal actions arising in the ordinary
             course of business.  The Company believes that the
             outcome of all of these matters will not have a
             material adverse effect on the Company's operations,
             financial position and cash flows.
<PAGE>
Item 2

                        MANAGEMENT'S DISCUSSION AND ANALYSIS
                              OF RESULTS OF OPERATIONS
                               AND FINANCIAL CONDITION
                                                                  
                                                 

INTRODUCTION

       Geriatric & Medical Companies, Inc., Inc., (hereinafter,
       together with its subsidiaries, referred to as the
       "Company") is a Mid-Atlantic health care company providing
       support services to hospitals, HMO's, physician groups and
       nursing homes.  It also is a major of long term care
       services provider in Pennsylvania and New Jersey.  The
       Company operates through the following companies:

       The Operating Companies

             Life Support Ambulance (LSA), provides a full range of
             ambulance transportation services to hospitals, nursing
             homes, rehabilitation centers, and other health care
             facilities throughout Pennsylvania and New Jersey.  LSA
             services include basic life support, advanced life
             support, critical care transport and paratransit
             transportation.  LSA has in place a state of the art
             vehicle tracking system enabling it to maximize
             efficiencies.  This satellite driven system allows LSA
             to provide in excess of 8,000 transports monthly.  LSA
             is one of approximately 45 transportation companies in
             the country fully accredited by the Commission on
             Accreditation of Ambulance Services.  

       United Health Care Services (UHCS), provides a full range of
       respiratory therapy, infusion therapy and enteral therapy
       (delivery of nutrients through feeding tubes) to adult and
       pediatric patients primarily in the home care setting and
       distributes durable medical equipment and home medical
       supplies.  UHCS serves its patients through its branches
       located in Philadelphia, Reading, Easton, and Pittsburgh,
       Pennsylvania and Clifton, New Jersey.  UHCS is accredited by
       the Joint Commission on the Accreditation of Health Care
       Organizations ("JCAHO").  

       Innovative Pharmacy Services (IPS) is a full service
       institutional pharmacy which provides pharmaceutical
       services and enteral nutrition products to health care
       institutions through its full service pharmacies located in
       Philadelphia, Pennsylvania and Blackwood, New Jersey.  IPS
       also operates a retail pharmacy in west Philadelphia,
       Pennsylvania.

             IPS currently fills approximately 45,000 prescriptions
             each month and provides various products and services
             to approximately 5,900 long term care and residential
             beds.  

             Healthcare Hospitality Services (HCHS), provides
             contract management services including dietary,
             housekeeping, laundry, pest control, plant operations
             and facilities management services to nursing homes,
             personal care facilities, and retirement communities. 
             HCHS operates with full time, on site management which
             are supported by a regional team of specialists.  HCHS
             provides such contract services to approximately 6,700
             long term care and residential  beds.

             Diagnostic and Rehab Technologies (DRT) provides
             diagnostic and rehabilitative management services
             including portable x-ray, Holter monitoring, ultra
             sound, echocardiograms, and physical, speech and
             occupational therapy, primarily to skilled nursing
             facilities.  The Diagnostics division provides portable
             x-ray, Holter monitoring, ultra sound and
             echocardiograms to approximately 6,000 long term care
             beds.  The Rehab Tech Division provides comprehensive
             rehabilitation programs to approximately 4,000 long
             term care beds which include physical and occupational
             therapists, speech pathologists and administrative
             personnel.  The division also manages five subacute
             medical specialty units, known as Rehab Tech Units. 
             These units provide rehabilitation, non-acute cardiac
             care, wound care, infusion therapy, neurological,
             oncology, pulmonary and post surgical care at units
             located within long term care facilities.

       
             Geriatric and Medical Services (GMS), provides sub-
             acute, rehab, long term skilled care, residential and
             independent living services to approximately 4,000 beds
             at 28 locations in Pennsylvania and New Jersey.  GMS
             operates 18 long term care, 8 residential and 2
             independent living facilities.  Services provided
             include the prescribed type of nursing care, room and
             board, special diets as needed, occupational, physical
             and recreational therapy and other services as
             specified by the patient's physician.  

             The Company is focused on the development of its sub-
             acute and specialized care wings.  GMS now operates 18 


             Medicare certified distinct part units with
             approximately 350 beds.  This includes 5 "Rehab Tech
             Units" which provide lower cost alternatives as
             compared to acute care settings for rehabilitative and
             sub-acute services.  


Results of Operations

             Net operating revenues for the three months ended
             November 30, 1995 were $49,506,000 as compared to
             $47,782,000 for the corresponding period of fiscal
             1995, an increase of $1,724,000 or 3.6%.  Net operating
             revenues for the six months ended November 30, 1995
             were $98,915,000 as compared to $93,757,000 for the
             corresponding period of fiscal, 1995, or an increase of
             $5,158,000 or 5.5%

             The increases for the three and six month periods ended
             November 30, 1995 are primarily a result of bed
             additions placed in service during fiscal, 1995, and
             revenues generated rate increases resulting from its
             Medicare units $1,251,000 and $4,777,000, respectively. 
             The remaining increases were generated from higher
             volumes in certain of the Company's support service
             businesses which includes the effect of ambulance
             companies acquired during the second and third quarters
             of fiscal, 1995.

             Operating expenses increased $808,000 and $3,308,000
             for both the three and six month periods ended November
             30, 1995 as a result of increased volumes and the
             effect of ambulance companies acquired during the
             second and third quarters of fiscal, 1995.  Operating
             expenses decreased as a percentage of revenues due to
             continued cost containments and efficiencies.

             Depreciation and amortization increased $178,000 for
             the three months ended November 30, 1995 and $341,000
             for the six months ended November 30, 1995 as the
             result of depreciation on new beds added and the
             acquisition of ambulance equipment in connection with
             acquisitions and amortization of goodwill.

             Interest expense rose $343,000 for the three months
             ended November 30, 1995 and $605,000 for the six months
             ended November 30, 1995 when compared to the same
             periods of the prior year.  This increase is
             principally attributed to the debt related to new beds
             opened in fiscal, 1995 and interest incurred on the
             $1,000,000 subordinated debenture.

             
             Income tax expense increased 15% as a percentage of
             pretax income as compared to the same period of the
             prior year resulting primarily from the full
             utilization of federal net operating loss carryforward
             tax credits during fiscal, 1996.

Liquidity and Capital Resources

             In November 1993, the Company entered into a $25
             million accounts receivable sale agreement, with
             recourse. This is a three year agreement with program
             costs charged at 9.84% of the outstanding receivables
             sold.  In May 1994, the Company entered into an
             additional agreement to sell certain receivables due
             from third-party payors. The program cost charged is
             9.75% of outstanding amounts sold.  The maximum amount
             to be sold under this agreement is $5,000,000.  The
             amount outstanding at November 30, 1995 under these
             agreements was $19,108,000.  These agreements expire in
             November, 1997.  The Company has accounted for these
             transactions as a sale but may be treated as a
             financing (borrowing) transaction for Medicare/Medicaid
             purposes.

       On December 28, 1995 the Company entered into a $5,000,000
       line of credit agreement  with a commercial bank.  The line
       of credit is secured by certain real estate and private
       receivables not sold under the accounts receivable financing
       agreement discussed above.  Interest on the line is at the
       Prime Rate plus 1%.  The line is renewable annually and may,
       at the Company's option, be converted to a three (3) year
       term loan.

             A substantial part of the Company's revenues consists
             of reimbursements under the Pennsylvania Medicaid
             Program, a retrospective cost based program that
             typically results in the generation of large
             receivables which are periodically settled.   As
             discussed in the next paragraph Pennsylvania is
             implementing a new system effective January 1, 1996.


Pennsylvania has adopted regulations, effective January 1, 1996,
to implement a new case-mix payment system which the federal
government mandated in 1987 to replace its retrospective cost
reimbursement system.  While the regulations were published in
December 1995, many details of the new system have not been
finalized and implementation of the new system is contingent on
federal review and approval of funding arrangements entered into
with counties (Intergovernment Transfer Agreements) and of the
new system's compliance with federal requirements.  The Company
expects that its long term care Medicaid rates in Pennsylvania
under the new system will be lower than under the old system.  It
is not possible at this time to determine the net impact of the
new system on the Company's results, since final rates have not
yet been established.

In expectation of the new system, the Company has commenced
steps to reduce costs and continues aggressive program to
reduce its concentration on Medicaid programs and shift to
other payor programs and opportunities.  The Company has also
initiated discussions with Pennsylvania officials to qualify
some of its Pennsylvania nursing facilities for rate
exceptions.  The Company is also exploring with other
Pennsylvania providers and provider associations possible
litigation to delay or preclude implementation of the new
case-mix payment system for failure to meet federal procedural
and substantive requirements for state Medicaid rates,
including lack of federal approval prior to implementation. 
Management believes that the results of these activities will
be to mitigate what could otherwise be a substantial adverse
effect on the Company's results from the implementation of the
new system.  

The Company's subsidiary, Life Support Ambulance, Inc. (LSA),
on April 6, 1995 received a notice of suspension of payment
pertaining to Medicare billings submitted to its Medicare
intermediary.  The Company believes the suspension was imposed
because of evidence received by the intermediary that prior
payments may not have been billed correctly.  LSA believes it
has operated, at all times, in substantial compliance with all
provisions required by Medicare for reimbursement of its
services.  On August 11, 1995 LSA reached an agreement with
its Medicare intermediary whereby Medicare will retain, until
resolution of the issues, all amounts being held at the time
of agreement and 25% of future billings processed. (Total
being held at November 30, 1995 was approximately $3,800,000.)
In connection with the agreement, Geriatric & Medical
Companies, Inc. has agreed to guarantee the payment by LSA of
up to $5,000,000 of any finally determined overpayments.  It
is not possible to determine at the present time the length of
suspension, or whether such suspension will have a material
adverse effect on the operations or financial condition of the
Company.

  The Company reached a settlement in Fiscal 1994, with the
Office of the United States Attorney for the Eastern District
of Pennsylvania regarding the joint venture and management
arrangements of its subsidiary United Health Care Services,
Inc. whereby the Company is required to pay $340,000 in
Fiscal, 1996 and $440,000 in Fiscal, 1997.

  The Company's net trade receivables have increased
$12,451,000 for the six months ended November 30, 1995
primarily as a result of the suspension of payments to LSA,
discussed above, and a slow down in payment for services
provided to outside long term care facilities. The outside
long term care facilities are experiencing a temporary slow
down in cashflow as they await tentative payment for their
fiscal, 1995 cost reports.

  As more fully discussed in Note 3, the Company is a party to
various legal and other matters asserted against the Company. 
The ultimate liability resulting from the foregoing matters
cannot presently be determined.  Accordingly, no provision for
any liability that may result has been made to the
accompanying consolidated financial statements.

  The Company intends to meet its capital commitments and
working capital requirements in fiscal 1996 from operations, 
existing financing arrangements, or the sale or refinancing of
other assets.<PAGE>
PART II      OTHER INFORMATION


Item 6       EXHIBITS AND REPORTS ON FORM 8-K

             (a)   Exhibits

                   Exhibit 27 - Article 5 FDS


             (b)   Reports on Form 8-K

                   None.

<PAGE>
                                    SIGNATURE


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.




                                GERIATRIC & MEDICAL COMPANIES, INC.



January 16, 1996                       By:                              
                                   
                                             James J. O'Malley