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

                                   FORM 10-K405

For annual and  transition  reports  pursuant  to  sections  13 or 15 (d) of the
Securities Exchange Act of 1934.

(Mark One)

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

                  For the fiscal year ended December 31, 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 0-14435

                   CONSOLIDATED RESOURCES HEALTH CARE FUND IV
--------------------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)


                Georgia                                  58-1582370
--------------------------------------------------------------------------------
   (State or other jurisdiction of                (I.R.S. Employer
      corporation or organization)                identification No.)


        400 Perimeter Center Terrace, Suite 650, Atlanta, Georgia 30346
--------------------------------------------------------------------------------
               (Address of principal executive offices)(Zip Code)


Registrant's telephone number, including area code      770-698-9040
                                                        ------------




Securities registered pursuant to Section 12(b)of the Act:None
---------------------------------------------------------

Securities  registered  pursuant to Section 12(g)of the Act:Limited  Partnership
-----------------------------------------------------------
Units

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, and (2) has been subject to such filing requirements 
for the past 90 days.    Yes    x      No
                              ----

Indicate by check mark if disclosure of delinquent  filers  pursuant to Item 405
of Regulations S-K is not contained  herein,  and will not be contained,  to the
best of  registrant's  knowledge,  in definite proxy or  information  statements
incorporated by reference in Part III of this Form 10-K or any amendment to this
Form 10-K. [ X ]

All  of  the  registrant's 26,283  Limited   Partnership  Units  are  held  by
non-affiliates.  The aggregate market value of units held by  non-affiliates  is
not determinable since there is no public trading market for Limited Partnership
Units and transfers of units are subject to certain restrictions.

Documents Incorporated by Reference:  See Page 29.

                       SEE INDEX TO EXHIBITS ON PAGE 31.
                             PAGE ONE OF 32 PAGES.




<PAGE>



PART I

ITEM 1.  BUSINESS

Consolidated  Resources Health Care Fund IV (the "Partnership") was organized on
August 10, 1984, as a Limited  Partnership  under the  provisions of the Georgia
Uniform Limited Partnership Act.

At December 31, 1996, the Partnership  had three general  partners (the "General
Partners"),  WelCare  Consolidated  Resources  Corporation of America,  a Nevada
corporation, serving as the corporate general partner ("WCRCA" or the "Corporate
General   Partner"),   Consolidated   Associates   IV,   and   WelCare   Service
Corporation-IV   ("WSC-IV"  or  the  "Managing  General  Partner"),   a  Georgia
Corporation,  serving as managing general  partner.  At December 31, 1996, WCRCA
and WSC-IV were wholly-owned  subsidiaries of Centennial Acquisition Corporation
("CAC"), a Georgia  corporation,  which is in turn a wholly-owned  subsidiary of
Centennial Healthcare Corporation,  ("Centennial").  Prior to December 1996, CAC
and   Centennial   were  known  as  WelCare   Acquisition   Corp.   and  WelCare
International, Inc., respectively. Consolidated Associates IV, a Georgia general
partnership,  is  composed  of  WCRCA,  as the  managing  general  partner,  and
individuals  who  were  previously   associated  with   Consolidated   Resources
Corporation  of America  ("CRCA").  On January 30, 1997, all of the stock of the
Corporate  General  Partner  and  the  Managing  General  Partner  was  sold  to
Consolidated  Partners  Corporation,  which is  wholly-owned by the president of
Centennial, who is also a general partner of Consolidated Associates IV.

On October 15, 1984, a Registration Statement on Form S-1 was declared effective
by the Securities and Exchange  Commission  whereby the Partnership  offered for
sale $30,000,000 of Limited  Partnership  Units. The Limited  Partnership  Units
represent  equity  interests in the  Partnership and entitle the holders thereof
("Limited  Partners") to participate in certain allocations and distributions of
the Partnership. The sale of Limited Partnership Units closed in April 1985 with
26,283  units sold at $1,000  each,  for gross  proceeds of  $26,283,000  to the
Partnership.

The Partnership's  primary business and only industry segment is to own, operate
and  ultimately  dispose of a diversified  portfolio of health care related real
properties for the benefit of its Limited Partners.  As of December 31, 1996 and
1995, the  Partnership  owned two nursing homes in Kansas.  During October 1995,
the Partnership sold a nursing home located in Missouri (See Item 8, Note 7).

Current Developments

A  majority  in  interest  of the  Partnership's  Limited  Partners  approved  a
proposal,  on  October  18,  1994,  which  provides  for the  sale of all of the
remaining Partnership assets and the eventual dissolution of the Partnership, as
outlined in a proxy  statement  dated  September  28,  1994.  Under the approved
proposal,  the Limited  Partners  consented for the Managing  General Partner to
attempt  to sell or  otherwise  dispose  of its  remaining  properties  prior to
October  18,  1997.  Upon the  disposition  of all of its assets,  the  approved
proposal requires that the Managing General Partner dissolve the Partnership.

As discussed in Item 8, Note 4, the Partnership's mortgage debt obligations were
in default as of December 31, 1996. The Partnership will continue to operate the
facilities  and plans to sell the  properties  to  prospective  purchasers.  The
Managing  General  Partner  anticipates  that the  Partnership's  two  remaining
facilities will be sold during 1997.  Mortgage debt obligations secured by these
facilities  matured April 1996. The  Partnership  has obtained an extension from
the lender until May 31, 1997 to satisfy these debts.

Operation of Nursing Home Facilities

At the beginning of 1991, all six of the  Partnership's  existing  nursing homes
were managed by National Heritage,  Inc. ("NHI"). NHI, a New York Stock Exchange
listed  company,  was  affiliated  with the  Partnership  prior to  Centennial's
subsidiary's  acquisition of the Corporate General Partner on November 20, 1990.
Effective  March 1, 1991, NHI was terminated as manager of Kent's Nursing Center
and Life Care Centers of America, Inc. ("LCCA"), a privately-owned  corporation,
began managing this facility. In September 1991, the Partnership  terminated NHI
as manager  of the  Partnership's  three  facilities  located in Kansas.  In the
fourth quarter of 1991, the Partnership  notified NHI that effective January 31,
1992, NHI was terminated from



<PAGE>



providing  management  services at the  Partnership's  remaining two facilities.
Lawsuits  between the  Partnership  and NHI ensued and on December 31, 1991, NHI
and the  Partnership  entered into a Consent  Order which allowed NHI to perform
accounting  services for two facilities  under the  supervision of the Corporate
General Partner and the Court.  This litigation was resolved in October 1993 and
NHI no longer  performs  accounting or any other services for the  Partnership's
facilities.

An  affiliate  of  the  Corporate  General  Partner  assumed  direct  management
responsibilities  for the three Kansas  facilities  following NHI's  termination
effective September 1, 1991, and at River Oaks Care Center and Heritage Manor of
Mountain Grove effective  February 1, 1992. This affiliate received a management
fee of 6% of gross  revenues at Heritage  Manor of Hiawatha,  Heritage  Manor of
Mountain  Grove and Heritage Manor of Emporia,  and an aggregate  management and
accounting fee of 6% of gross revenues at Heritage Manor of Hoisington and River
Oaks Care  Center.  An  affiliate  of the  Corporate  General  Partner  provided
oversight management services for Kent's Nursing Center and received a fee equal
to 1% of gross revenues. A management fee of 5% of Kent's Nursing Center's gross
revenues was paid to LCCA. Kent's Nursing Center, Heritage Manor of Hiawatha and
River Oaks Care Center were sold by the Partnership during 1993.

As a  result  of  efforts  made  by the  Corporate  General  Partner,  in 1991 a
distribution  of  $150,000  was made to the  Limited  Partners,  the first  such
distribution  since 1987. No distributions  were made in 1992.  During 1993, the
Partnership  distributed  $750,000 to the Limited  Partners as proceeds from the
facility  sales.  During 1994,  the  Partnership  distributed  $1,000,000 to the
Limited  Partners  from  the  sale  of  Rainbow  Springs.   No  limited  partner
distributions were made during 1995 or 1996.

The Partnership's Rainbow Springs parcel contained undeveloped land, a partially
developed  hotel and two  operating  18-hole golf courses.  The Rainbow  Springs
facility  competed with other golf courses in the Milwaukee,  WI market, as well
as against other facilities with spring and summer recreational  activities.  In
1989, the joint owner of Rainbow  Springs filed for bankruptcy  protection.  The
bankruptcy court,  having  jurisdiction over this joint owner,  ordered a public
auction to take place on January  31,  1994,  and the sale of the  property  was
closed on March 21, 1994.

As of December 31, 1996, the  Partnership  employed  approximately  128 persons,
including  administrative,  nursing,  dietary,  social  services and maintenance
personnel.

The  services  provided  at the  Partnership's  nursing  facilities  consist  of
long-term nursing care.  Nursing care consists of 24 hour  professional  nursing
care and related medical  services  prescribed by the resident's  physician,  as
well as  assistance  or  supervision  with  activities  of daily  living such as
dressing, grooming, bathing, medication and dietary needs.

All of the nursing  facilities  are  certified to receive  benefits  under joint
Federal and state funded programs administered by the state of Kansas to provide
medical assistance to the indigent, known generally as the "Medicaid".  Benefits
under the Federal Health Insurance for the Aged Act ("Medicare") are for skilled
care only in those  facilities  which are certified  for this program.  Medicaid
reimbursement  formulas vary by state and are  established  in  accordance  with
Federal guidelines.  Typically,  Medicaid provides for reimbursement for nursing
home care of an all-inclusive  nature up to specified limits based on historical
costs,  with  adjustments  for  inflation.  Federal law requires  that  Medicaid
reimbursement  rates be  reasonable  and adequate to meet the costs that must be
incurred by efficiently and economically operated facilities to provide care and
services in conformity with applicable laws,  regulations and quality and safety
standards.  Medicaid payments are generally set prospectively for each facility,
with the exception of a few states, where retrospective settlement exists.

The  Medicare and Medicaid  programs  are subject to  statutory  and  regulatory
changes, administrative rulings, interpretations of policy and determinations by
intermediaries,  and to  governmental  funding  restrictions,  all of which  may
materially  increase or decrease  program  payments to long-term care facilities
and could  adversely  affect the  operations of the  Partnership's  nursing home
facilities.

In the operation  and sale of its long-term  care  facilities,  the  Partnership
competes with a number of individuals and entities,  including  large,  national
nursing  home  chains  and  small,  locally  owned  geriatric  facilities.  Some
competing operators have greater financial resources than the Partnership or may
operate on a nonprofit basis



<PAGE>



or  as  charitable   organizations.   The  degree  of  success  with  which  the
Partnership's  facilities  compete varies by location and depends on a number of
factors. The Partnership  believes the quality of care provided,  the reputation
and physical  appearance of facilities and, in the case of private pay patients,
charges for services, are significant  competitive factors. There is limited, if
any,  competition in price with respect to Medicaid and Medicare  patients since
revenues for services to such  patients  are  strictly  controlled  and based on
fixed rates and cost reimbursement  principles.  In light of these factors,  the
Partnership  seeks to meet competition in each locality by improving the quality
of services  provided at its  facilities,  establishing a reputation  within the
local medical community for providing excellent care services, and by responding
appropriately to regional variations in demographics and tastes. In most states,
approval  by  state  healthcare  regulatory  agencies  must  be  obtained  and a
Certificate  of Need ("CON") or  authorization  issued before new long-term care
beds can be  constructed.  This tends to stabilize  competition.  However,  some
states have already or are considering a repeal of CON programs. The Partnership
owns two facilities in Kansas which does not currently require a CON.

The following  table sets forth  information  regarding the average daily census
and sources of patient revenues at the Partnership's  facilities at December 31,
1996:

               Average Daily Census for Year Ended     Revenues for Year Ended
                        December 31,1996                   December 31,1996
            --------------------------------------      ----------------------


Medicaid                70         55%                          48%
Private Pay             53         41%                          28%
VA, Medicare and Other   5          4%                          24%
                       ---        ----                         ----

                       128         100%                         100%
                     =====         ===                          ===

Overall Occupancy Rate 86%
                      ===


Because of a changing  census mix (i.e.  private  pay  patients  vs.  government
reimbursed  patients),  the  occupancy  required  for a  facility  to achieve an
operating break-even point cannot be determined precisely.  Generally, a greater
ratio of Medicaid patients will require a higher occupancy to reach a break-even
point.  On the other  hand,  a high  Medicare  census  can  lower the  number of
patients  necessary to reach the  break-even  point due to higher  reimbursement
rates.

All licensed beds in the  operating  facilities  are  available  except in a few
instances  where a small  number of rooms  have been  taken out of service to be
utilized as office space and ancillary support areas, (i.e.,  revenue generating
rehabilitation services).

ITEM 2.  DESCRIPTION OF PROPERTY

The following  table sets forth the investment  portfolio of the  Partnership at
December 31, 1996.  The buildings of the projects and the land on which they are
located are owned by the Partnership. The fee is subject in each case to secured
debt, which is in default, as set forth more fully in Item 8, Note 4.




<PAGE>




                        Properties (dollars in 000's)
                   ---------------------------------------

                                                    
                      Secured      Acquisition   Net Book              Date
     Property           Debt          Cost        Value              Acquired
 
Heritage Manor
of Emporia
Emporia, KS
79 Licensed Nursing
Home Beds              $1,048          $2,809     $216(1)          October 1985

Heritage Manor
of Hoisington
Hoisington, KS
70 Licensed Nursing
Home Beds                 609           1,387      397(1)             July 1985
                        -----           -----     ----

Totals                  $1,657          $4,196    $613
                        ======          ======    ====




(1) provision was made to write down this facility,  to its estimated fair value
or net  realizable  value at the time of the  write-down  as  determined  by the
Corporate  General  Partner  (See  Item 8, Note 6).  The  amount  reflects  this
write-down.

Occupancy Levels and Rental Rates

The  following  table sets forth the  occupancy  levels and rental rates for the
last five years for the facilities  owned by the  Partnership as of December 31,
1996.  Rental  rates are  presented  as  Per-Patient-Day  amounts  ("PPD"),  the
standard of  comparison  used in the  long-term  care  industry.  The PPD amount
represents the average revenue received per day of care provided.



<PAGE>

                            1996     1995         1994         1993        1992
                            ----     ----         ----         ----        ----

Heritage Manor of
Emporia

Occupancy Rate               80%        86%           89%         91%       78%
Rental Rate (PPD)         $78.00     $70.00        $64.00      $57.00    $47.00

Heritage Manor of
Hoisington

Occupancy Rate               93%        92%           94%         98%       97%
Rental Rate (PPD)         $72.00     $68.00        $61.00      $53.00    $49.00




  


ITEM 3.  LEGAL PROCEEDINGS

The Partnership is not a party to any material pending legal proceedings,  other
than ordinary litigation routine to the Partnership's business.

The  Partnership  and  Southmark  reached a settlement  which was filed with the
Bankruptcy  Court in January 1994 regarding the claims filed by the  Partnership
against  Southmark  and  Southmark's  suit against the  Partnership.  Under this
settlement agreement, Southmark released all claims against the Partnership.


ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

None.






<PAGE>



                                    PART II

ITEM 5.   MARKET FOR THE REGISTRANT'S UNITS OF LIMITED PARTNERSHIP
          AND SECURITY HOLDER MATTERS

(A)       No market for Limited  Partnership Units exists nor is one expected to
          develop.

(B)       Title of Class                      Number of Record Unit Holders

          Limited Partnership Units           2,909 as of March 28, 1997

(C)       Due to improvements in operations following Centennial's  subsidiary's
          acquisition  of the Corporate  General  Partner and proceeds  received
          from the sale of Heritage Manor of Red Boiling Springs,  the Corporate
          General Partner caused the  Partnership to distribute  $150,000 to the
          Limited  Partners  in 1991.  This was the  first  distribution  to the
          Limited  Partners  since 1987.  In 1994 and 1993,  the  Partnership  
          distributed $1,000,000 and $750,000, respectively, of proceeds from 
          sales of twoproperties.

          Future  distributions  are dependent on the  Partnership's  ability to
          meet its ongoing obligations and to generate proceeds from the sale of
          its assets in excess of existing debt.  Cumulative  distributions paid
          to the Limited  Partners as of December  31,  1996,  were  $5,446,590.
          There  have  been  no  distributions  to  the  General  Partners.  See
          Liquidity  and  Capital  Resources  section  of Item  7,  Management's
          Discussion  and  Analysis  of  Financial   Condition  and  Results  of
          Operations and Item 8, Note 5 for discussion of distributions.

ITEM 6.  SELECTED FINANCIAL DATA

The  following  table sets forth a summary of  selected  financial  data for the
Partnership.  This summary should be read in  conjunction  with the notes to the
Partnership's financial statements appearing in Item 8.


            Years Ended December 31, (dollars in 000's, except per unit figures)
            --------------------------------------------------------------------
Statements of
Operations                1996      1995(1)    1994(2)     1993(3)        1992
----------                ----      ------     ------      ------         ----  
                                                                  
Operating revenue         $3,358     $5,321     $4,997      $9,319       $11,111
Income (loss) before                                              
  extraordinary gain       (231)      (365)      (356)       1,520       (3,049)
Net income (loss)          (231)      1,901       (46)       2,853       (3,049)
Income (loss) before                                              
  extraordinary gain per                                          
  Limited Partnership Unit(8.44)     (12.90)   (12.30)       58.25      (111.38)
Net income (loss) per                                             
Limited Partnership Unit  (8.44)      69.86     (0.99)      108.49      (111.38)
                                                                                
Distribution paid per                                             
Limited Partnership Unit    -            -       38.05       28.54          -
                                           





<PAGE>



                                At December 31, (dollars in 000's)
                    -----------------------------------------------------------

Balance Sheets                1996         1995      1994        1993      1992
--------------                ----         ----      ----        ----      ----
                                                           
                                                                 
Property and equipment,net    $   -       $   -      $   -      $3,506    $5,443
Property held for sale          613         744      3,268       2,016     3,558
Total assets                  1,550       1,953      5,194       7,870    11,186
Current maturities of debt    1,657       1,764      4,683       2,007     2,777
Long-term debt obligations,                                                  
less current maturities          -            -          -       2,825     5,380
Partners' deficit             (472)       (241)     (2,142)     (1,096)  (3,200)
                                                                

(1)  During 1995, the Partnership sold one facility.
(2)  During 1994, the  Partnership sold one facility.
(3)  During 1993, the Partnership sold three facilities.


ITEM 7.     MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
            CONDITION AND RESULTS OF OPERATIONS

Certain statements contained in this Management  Discussion and Analysis are not
based on historical  facts,  but are  forward-looking  statements that are based
upon numerous  assumptions  about future conditions that may ultimately prove to
be inaccurate.  Actual events and results may materially differ from anticipated
results described in such statements.  The Partnership's ability to achieve such
results  is  subject  to  certain  risks  and  uncertainties.   Such  risks  and
uncertainties   include,   but  are  not  limited  to,   changes  in  healthcare
reimbursement systems and rates, the availability of prospective  purchasers for
its facilities,  and other factors affecting the Partnership's business that may
be beyond its control.

Plan of Operations

A  majority  in  interest  of the  Partnership's  Limited  Partners  approved  a
proposal,  on  October  18,  1994,  which  provides  for the  sale of all of the
Partnership's  remaining assets and the eventual dissolution of the Partnership,
as outlined in a proxy statement  dated  September 28, 1994.  Under the approved
proposal,  the Limited  Partners  consented for the Managing  General Partner to
attempt  to sell or  otherwise  dispose  of its  remaining  properties  prior to
October  18,  1997.  Upon the  disposition  of all of its assets,  the  approved
proposal requires that the Managing General Partner dissolve the Partnership.

As discussed in Item 8, Note 4, the  Partnership's two mortgage debt obligations
were in default as of December 31, 1996 and are due May 31, 1997  pursuant to an
extension  obtained  January 31, 1997. The Partnership  will continue to operate
the facilities and plans to: (A) sell the properties to prospective  purchasers,
or (B) negotiate a settlement with its lenders.

At December 31, 1996 and 1995,  the  Partnership  held available for sale all of
its  nursing  home  facilities.  Accordingly,  the  Partnership  classified  the
facilities  as Property held for sale in the  accompanying  balance  sheets.  On
October 18, 1995, The Oaks of Mountain Grove ("Mountain Grove") was sold.

Results of Operations

Revenue:

1996 compared to 1995

Operating revenues decreased  $1,962,506 for 1996 as compared to the prior year.
Of this net decrease  $2,274,988  was due to the sale of Mountain Grove in 1995,
which was offset by an increase in revenues at the  Partnership's  two remaining
nursing facilities due to an increase in the volume of therapy services provided



<PAGE>



and  increases  in Medicare  and  Medicate  reimbursement  rates which more than
offset a decrease in patients in 1996 as compared to 1995 censusat Emporia.



1995 compared to 1994

Operating revenues increased by $323,347 for 1995 compared to the prior year. On
October 18, 1995,  Mountain Grove was sold.  During the time it was owned by the
Partnership in 1995,  Mountain Grove  generated  $2,274,988 in revenues.  During
1994,  Mountain Grove generated  $1,873,943 in revenues.  The remaining increase
over the prior year was due primarily to increases in rates at the Partnership's
two remaining facilities, along with a favorable increase in Medicare census and
therapy utilization in 1995 as compared to 1994.


Expenses:

1996 compared to 1995

Operating expenses decreased  $2,032,804 for 1996 as compared to the prior year.
Of this net decrease,  $2,114,511 was due to the sale of Mountain Grove in 1995,
which was offset by an increase in expenses at the  Partnership's  two remaining
nursing  facilities due to inflationary  increases along with increased expenses
associated with an increase in the volume of therapy  services  provided in both
facilities.

1995 compared to 1994

Operating expenses  increased by $95,817 for 1995. As discussed above,  Mountain
Grove was sold during  1995.  This  facility  incurred  $2,114,511  in operating
expenses during the time it was owned by the  Partnership in 1995.  During 1994,
Mountain  Grove  incurred  $1,933,092  in  operating  expenses.  The increase at
Mountain  Grove was due  primarily to salary  increases and  additional  therapy
utilization as compared to the prior year.  The reduction in operating  expenses
at the  Partnership's  remaining  facilities  was due to  reductions in expenses
associated with a decrease in overall patient census.

Liquidity and Capital Resources

At  December  31,  1996,  the  Partnership  held  cash and cash  equivalents  of
$723,569.  Cash is being held in  reserve  for  working  capital  and  operating
contingencies.

During 1995 and 1996, the Partnership  maintained  current debt service payments
on all of its debt secured by facilities currently owned by the Partnership. The
Partnership  should produce  sufficient cash flow from operations during 1997 to
continue to satisfy  current monthly debt service  obligations.  The Partnership
anticipates  the  satisfaction  of these debts through  sales of the  facilities
during 1997.  Under terms of a current  agreement  with the lender,  these loans
must be reapid prior to May 31, 1997.

As of December 31, 1996, the  Partnership was not obligated to perform any major
capital additions or renovations and no such capital expenditures or renovations
are  planned  for  1997.  Necessary  minor  repairs,   maintenance  and  capital
expenditures are expected to be funded by existing cash reserves.

Significant   changes  have  and  will   continue  to  be  made  in   government
reimbursement  programs, and such changes could have a material impact on future
reimbursement  formulas.  Based on information  currently available,  Management
does not believe that proposed  legislation  will have an adverse  effect on the
Partnership's  operations.  However,  as  health  care  reform is  ongoing,  the
long-term effects of such changes cannot be accurately  predicted at the present
time.

The  Partnership  is in default on the  long-term  debt  obligations  secured by
Hoisington  and  Emporia as these  loans were  originally  due April  1996.  The
Partnership  is currently  seeking  purchasers  for these  facilities at a sales
price that would satisfy the operating and debt  obligations of the  facilities.
There can be no assurance  that the  facilities can be sold prior to foreclosure
or that the Partnership  will be able to obtain  additional  extensions from the
lender.  However,  as long as these default  situations  exist,  the Partnership
remains at risk relative to these loans.  The  Partnership has no existing lines
of credit to draw upon should present  resources or cash flow from operations be
inadequate.



<PAGE>







ITEM 8.     FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA


Index                                                        Page Number

Report of Independent Certified Public Accountants                    11

Consolidated Financial Statements

   Balance Sheets - December 31, 1996 and 1995                     12-13

   Statements of Operations                                           14
    - Years ended December 31, 1996, 1995 and 1994

   Statements of Partners' Deficit                                    15
    - Years ended December 31, 1996, 1995 and 1994

   Statements of Cash Flows                                           16
    - Years ended December 31, 1996, 1995 and 1994

   Summary of Significant Accounting Policies                      17-19

   Notes to Consolidated Financial Statements                      20-23


The  following  financial  statement  schedule for the years ended  December 31,
1996, 1995 and 1994 of the Registrant is submitted  herewith in response to Item
14 (a)(2):

Schedule II - Valuation and Qualifying Accounts                       25

All  other  schedules  of the  Partnership  for which  provision  is made in the
applicable  regulations  of the  Securities  and  Exchange  Commission  are  not
required under the related instructions, are inapplicable or have been disclosed
in the notes to the consolidated financial statements and, therefore,  have been
omitted.




<PAGE>










Report of Independent Certified Public Accountants


The Partners
Consolidated Resources Health Care Fund IV and Subsidiaries


We have audited the  accompanying  consolidated  balance sheets of  Consolidated
Resources  Health  Care Fund IV and  Subsidiaries  (limited  partnerships)  (the
"Partnership")  as of December 31, 1996 and 1995,  and the related  consolidated
statements of operations, partners' deficit and cash flows for each of the three
years in the period ended  December 31, 1996.  We have also audited the schedule
listed in the accompanying  index. These consolidated  financial  statements and
schedule  are  the   responsibility   of  the  Partnership's   management.   Our
responsibility  is  to  express  an  opinion  on  these  consolidated  financial
statements and schedule based on our audits.

We  conducted  our  audits  in  accordance  with  generally   accepted  auditing
standards. Those standards require that we plan and perform the audits to obtain
reasonable  assurance about whether the  consolidated  financial  statements and
schedule are free of material  misstatement.  An audit includes examining,  on a
test basis,  evidence supporting the amounts and disclosures in the consolidated
financial  statements  and  schedule.  An  audit  also  includes  assessing  the
accounting principles used and significant estimates made by management, as well
as evaluating the overall presentation of the consolidated  financial statements
and  schedule.  We believe that our audits  provide a  reasonable  basis for our
opinion.

The Partnership is operating its properties under a plan approved by its Limited
Partners,  as described in the Summary of Significant  Accounting  Policies,  to
sell or otherwise  dispose of its remaining  properties by October 18, 1997. The
financial  statements  have been  presented  on a basis  similar to  liquidation
accounting.  As  discussed  in  Notes  3 and  4 of  the  consolidated  financial
statements, the Partnership has suffered recurring losses from operations, has a
working capital deficiency,  has defaulted on certain debt, and has no assurance
of any  financial  support from the General  Partners.  These  conditions  raise
substantial doubt about the Partnership's  ability to operate as a going concern
until  it is able to  realize  its  plan to  sell or  otherwise  dispose  of its
remaining  properties  by October 18, 1997.  Management's plans  regarding these
matters are described in the Summary of Significant Accounting Policies and Note
3. The  consolidated  financial  statements  and  schedule  do not  include  any
adjustments that might result from the outcome of these uncertainties.

In our opinion, the consolidated  financial statements referred to above present
fairly,  in all  material  respects,  the  consolidated  financial  position  of
Consolidated   Resources   Health  Care  Fund  IV  and   Subsidiaries   (limited
partnerships)  at December 31, 1996 and 1995,  and the  consolidated  results of
their  operations and their cash flows for each of the three years in the period
ended  December 31, 1996,  in  conformity  with  generally  accepted  accounting
principles.

Also, in our opinion,  the schedule presents fairly,  in all material  respects,
the information set forth therein.






                                       BDO Seidman, LLP



Atlanta, Georgia
March 28, 1997




<PAGE>
          Consolidated Resources Health Care Fund IV and Subsidiaries
                             (limited partnerships)
                           Consolidated Balance Sheets


December 31,                                            1996           1995
                                                       ------         -----

Assets

Current
  Cash and cash equivalents (Note 10)                 $723,569       $628,543
  Patient accounts receivable and third party 
  settlements, net of allowance for doubtful accounts 
  of $72,978 in 1995 (Note 9)                          165,545        477,805
  Prepaid expenses and other                               901         18,529
  Property held for sale (Notes 4 and 6)               613,198        744,147
                                                       -------        --------

Total current assets                                 1,503,213      1,869,024
                                                     ---------      ---------

Other
  Restricted escrow and other deposits (Note 4)         46,979         49,241
  Deferred loan costs, net of accumulated 
  amortization of $71,312 in 1995                           -          34,931
                                                        ------       --------

Total other assets                                      46,979         84,172
                                                        ------       --------

                                                    $1,550,192     $1,953,196
                                                    ==========     ==========



See  accompanying  summary  of  significant  accounting  policies  and  notes to
consolidated financial statements.




<PAGE>


      Consolidated Resources Health Care Fund IV and Subsidiaries
                         (limited partnerships)

                      Consolidated Balance Sheets




December 31,                                          1996           1995
                                                     ------         -----

Liabilities and Partners' Deficit

Current liabilities
  Mortgage debt obligations in default (Note 4)   $1,656,836     $1,763,962
  Accounts payable and accrued expenses              156,163        156,102
  Accrued compensation                               103,960        126,004
  Insurance payable                                   58,062         58,255
  Accrued interest (Note 4)                           17,916         46,637
  Accrued real estate taxes                           29,455         43,376
                                                     -------       --------

Total liabilities                                  2,022,392      2,194,336
                                                   ---------      ---------

Commitments and Contingencies (Notes 3, 4 and 10)

Partners' deficit (Note 5)
  Limited partners                                   211,038        432,856
  General partners                                  (683,238)      (673,996)
                                                    --------       ---------

Total partners' deficit                             (472,200)      (241,140)
                                                     --------      --------

                                                  $1,550,192     $1,953,196
                                                  ==========     ==========



See  accompanying  summary  of  significant  accounting  policies  and  notes to
consolidated financial statements.




<PAGE>




      Consolidated Resources Health Care Fund IV and Subsidiaries
                         (limited partnerships)

                 Consolidated Statements of Operations




Years ended December 31,                  1996            1995           1994
                                         ------          ------         ------

Revenue
  Operating revenue (Notes 7 and 9)  $3,358,072      $5,320,578      $4,997,231
  Interest income                        26,748          29,587          73,854
                                        -------        --------         -------

Total revenue                         3,384,820       5,350,165       5,071,085
                                      ---------       ---------       ---------

Expenses
  Operating expenses (Note 7)         2,859,314       4,814,084       4,718,267
  Interest expense (Note 4)             161,990         445,608         453,979
  Depreciation and amortization         191,258         302,419         324,202
  Management fee substantially
  to all affiliates (Note 2)            210,655         313,790         317,271
  Real estate taxes                      17,340          43,518          41,284
  Partnership administration costs 
  substantially all to affiliates       175,323         173,452         179,060
  (Note 2)                              -------        --------         -------

Total operating costs and expenses    3,615,880       6,092,871       6,034,063
                                      ---------       ---------       ---------

Operating loss                         (231,060)       (742,706)      (962,978)
 
Gain on sales of properties (Note 7)          -         377,591         607,169
                                        -------        --------         -------

Loss before extraordinary gain         (231,060)       (365,115)      (355,809)
Extraordinary gain on extinguishment 
of debt (Notes 1 and 8)                       -       2,266,170         309,730
                                        -------       ---------         -------

Net income (loss)                     $(231,060)     $1,901,055       $(46,079)
                                       =========     ==========        ========

Loss per limited partnership unit
  before extraordinary gain              $(8.44)        $(12.90)       $(12.30)

Extraordinary gain from debt extinguishment   -           82.76           11.31
                                           ----        ---------       --------

Net income (loss) per limited
 partnership unit                        $(8.44)      $   69.86         $(0.99)
                                         ======       =========          ======

Distributions paid per limited
 partnership unit                            -        $      -         $  38.05
                                         ======        ========        ========

Limited partnership units outstanding    26,283          26,283          26,283
                                        =======        ========         =======


See  accompanying  summary  of  significant  accounting  policies  and  notes to
consolidated financial statements.





<PAGE>


      Consolidated Resources Health Care Fund IV and Subsidiaries
                         (limited partnerships)

              Consolidated Statements of Partners' Deficit
              Years Ended December 31, 1996, 1995 and 1994




                                                                     Total
                                                                   Partners'
                                      Limited        General        Deficit

Balance, at January 1, 1994            $(383,426)    $(712,690)    $(1,096,116)

  Net loss                               (20,058)      (26,021)        (46,079)

  Distributions (Note 5)              (1,000,000)           -       (1,000,000)
                                      ----------      ---------      ----------

Balance, at December 31, 1994         (1,403,484)     (738,711)     (2,142,195)

  Net income                           1,836,340        64,715        1,901,055
                                       ---------      ---------       ---------

Balance, at December 31 , 1995           432,856      (673,996)       (241,140)

  Net loss                              (221,818)       (9,242)       (231,060)
                                        --------      ---------        --------

Balance, at December 31, 1996           $211,038     $(683,238)      $(472,200)
                                        ========      =========       =========
 


See  accompanying  summary  of  significant  accounting  policies  and  notes to
consolidated financial statements.



<PAGE>


      Consolidated Resources Health Care Fund IV and Subsidiaries
                         (limited partnerships)

                 Consolidated Statements of Cash Flows




Years ended December 31,                       1996         1995         1994
                                              ------       ------        -----

Operating activities
  Net income (loss)                          $(231,060) $1,901,055    $(46,079)
  Adjustments to reconcile net income(loss)
  to cash provided by (used in) 
  operating activities: 
   Depreciation and amortization               191,258     302,419      324,202
   Bad debt expense                            167,805           -        9,754
   Gain on sale of properties                        -    (377,591)   (607,169)
   Extraordinary gain on debt forgiveness            -  (2,266,170)   (309,730)
   Changes in assets and liabilities:                              
     Accounts receivable                       144,455    (110,660)     260,418
     Prepaid expenses and other                 17,628      19,423       38,184
     Other assets                               37,193      80,511        3,743
     Accounts payable and accrued liabilities  (64,818)    174,167     (34,444)
                                               -------    --------      -------
                                                                   
Cash provided by(used in)operating activities  262,461    (276,846)   (361,121)
                                               -------    ---------    --------
                                                                   
Investing activities                                               
  Additions to property held for sale          (60,309)    (70,489)    (74,263)
  Net proceeds from sale of properties               -           -    1,410,283
  Proceeds from repayment of note receivable         -     250,000            -
                                                ------    --------       ------
                                                                   
Cash provided by(used in)investing activities  (60,309)    179,511    1,336,020
                                               -------    --------    ---------
                                                                   
Financing activities                                               
  Principal payments on long term
   debt obligations                           (107,126)    (94,443)   (148,398)
  Distributions to limited partners                  -           -  (1,000,000)
  Cash proceeds from settlement                      -           -       76,342
                                               -------    --------     --------
                                                                   
Cash used in financing activities             (107,126)    (94,443) (1,072,056)
                                              --------    --------   ----------
                                                                   
Net increase (decrease) in cash and cash 
  equivalents                                   95,026    (191,778)    (97,157)
                                                                   
Cash and cash equivalents, beginning of year   628,543     820,321      917,478
                                              --------    --------      -------
                                                                   
Cash and cash equivalents, end of year        $723,569    $628,543     $820,321
                                              ========    ========     ========
                                                        


See  accompanying  summary  of  significant  accounting  policies  and  notes to
consolidated financial statements.



                                                                 20


<PAGE>


      Consolidated Resources Health Care Fund IV and Subsidiaries
                         (limited partnerships)

               Summary of Significant Accounting Policies




Organization

Consolidated  Resources Health Care Fund IV (the "Partnership") was organized on
August 10, 1984 as a Limited  Partnership  under the  provisions  of the Georgia
Uniform  Limited  Partnership  Act for the purpose of  acquiring,  operating and
holding  for  investment  and  future  capital  appreciation  income  producing,
healthcare  related real  properties.  The  Partnership  currently  operates two
nursing  homes  in  Kansas.  The  occupancy  rate,  in the  aggregate,  for  the
Partnership's properties was 86% for the year ended December 31, 1996.

The General  Partners of the  Partnership  are  WelCare  Consolidated  Resources
Corporation of America,  ("WCRCA" or the "Corporate General Partner"),  a Nevada
corporation,   WelCare  Service   Corporation-IV  as  managing  general  partner
("WSC-IV"  or the  "Managing  General  Partner"),  a  Georgia  corporation,  and
Consolidated   Associates   IV   ("CA-IV"),   a  Georgia   general   partnership
(collectively  the "General  Partners").  At December 31, 1996, WCRCA and WSC-IV
were wholly-owned  subsidiaries of Centennial  Acquisition  Corporation ("CAC"),
formerly known as WelCare  Acquisition  Corp., which in turn, is a subsidiary of
Centennial  Healthcare  Corporation  ("Centennial"),  formerly  known as WelCare
International, Inc. CA-IV is composed of WCRCA, as the managing general partner,
and individuals who were associated with Consolidated  Resources  Corporation of
America ("CRCA"). On January 30, 1997, all of the stock of the Corporate General
Partner and Managing General Partner of the Partnership was sold to Consolidated
Partners  Corporation,  which is wholly-owned by the president of Centennial who
is also a general partner of CA-IV.

Pursuant to an agreement  dated  October 30, 1985,  CRCA, a Georgia  corporation
that initially was the Corporate General Partner of the Partnership,  was merged
into a  subsidiary  of  Southmark  Corporation  ("Southmark").  The  name of the
surviving  Southmark  subsidiary  was then  changed  to  Southmark  Consolidated
Resources  Corporation of America  ("SCRCA").  Southmark emerged from Chapter 11
bankruptcy on August 10, 1990 and  liquidated  most of its assets under its plan
of  reorganization.  On November 20, 1990,  CAC acquired from  Southmark all the
stock of SCRCA  whose name was then  changed to WelCare  Consolidated  Resources
Corporation  of  America.  Effective  January  1992,  WSC-IV,  was  added as the
Managing General Partner to the Partnership.

A  majority  in  interest  of the  Partnership's  Limited  Partners  approved  a
proposal,  on  October  18,  1994,  which  provides  for the  sale of all of the
Partnership's  remaining assets and the eventual dissolution of the Partnership,
as outlined in a proxy statement  dated  September 28, 1994.  Under the approved
proposal,  the Limited  Partners  consented for the Managing  General Partner to
attempt  to sell or  otherwise  dispose  of its  remaining  properties  prior to
October  18,  1997.  Upon the  disposition  of all of its assets,  the  approved
proposal requires that the Managing General Partner dissolve the Partnership.

As discussed in Note 4, the  Partnership's two mortgage debt obligations were in
default as of December 31, 1996. These obligations matured on April 1, 1996. The
Partnership  has  obtained an  extension  from the lender  until May 31, 1997 to
allow for the sale of the  facilities.  Under the extension,  the Partnership is
obligated  to make monthly  principal  and  interest  payments  (see Note 4). In
consideration  for the  extension,  the  Partnership  paid the lender $50,000 on
January  31,  1997.  The  Partnership  has  also  paid the  lender a  refundable
extension fee equal to 1% of the balance of the mortgage debt  obligations as of
January 31, 1997. The extension fee will be forfeited by the  Partnership if the
mortgage debt  obligations  are not satisfied by May 31, 1997.  The  Partnership
will  continue to operate  the  facilities  and is actively  seeking a buyer for
these  properties  and  plans to  either  sell  the  properties  to  prospective
purchasers, or negotiate a settlement with its lenders.

The  consolidated  financial  statements do not reflect  assets the partners may
have  outside  their  interests in two inactive  limited  Partnerships,  nor any
personal obligations, including income taxes, of the individual partners.

Consolidation

The consolidated  financial  statements  include the accounts of the Partnership
and two inactive limited partnerships in which it holds a majority interest. All
significant  intercompany  balances and transactions  have been eliminated.  The
amount of minority interest is immaterial.




<PAGE>


      Consolidated Resources Health Care Fund IV and Subsidiaries
                         (limited partnerships)

               Summary of Significant Accounting Policies




Property Held for Sale

Property  held for sale at December  31, 1996 and 1995,  consists of two nursing
home facilities owned by the Partnership.  In accordance with a plan approved by
the Limited  Partners on October 18, 1994, the Managing General Partner has been
given permission to either sell or otherwise dispose of the Partnership's assets
by October 18, 1997.

Depreciation and Amortization

Property and equipment are depreciated using the straight-line method over lives
of 5 to 30 years.  Amortization of leased assets is included in depreciation and
amortization  expense.  Renewals and betterments are capitalized and repairs and
maintenance are charged to operations as incurred.

Deferred Loan Costs

Deferred loan costs were amortized over the terms of the respective  loans using
the  straight-line  method.  Amortization  of deferred loan costs is included in
depreciation and amortization  expense.  At December 31, 1996, all deferred loan
costs had been fully amortized.

Operating Revenue

Operating  revenue is recorded when  services are rendered and includes  amounts
reimbursable  by  Medicaid  and  Medicare.  Medicare  revenue is recorded at the
applicable net reimbursement rates;  therefore,  no contractual  adjustments are
reported.

Income Taxes

No provision has been made in the financial  statements for Federal income taxes
because  under  current law, no Federal  income  taxes are paid  directly by the
Partnership.  The Partnership reports certain  transactions  differently for tax
and financial statement purposes.

Allocation of Net Income or Net Loss

The  Partnership's  net  profits  and net losses  (other than net profits or net
losses from a sale or refinancing of Partnership  property) are allocated 96% to
the Limited Partners and 4% to the General Partners. Distributions are allocated
on the basis described in Note 5.

Net profits and losses  resulting from a sale or refinancing  shall be allocated
99%  to  the  Limited  Partners  and 1% to the  General  Partners.  Net  profits
resulting from a sale or refinancing shall be allocated in the following order:

1. First, 1% to the General  Partners and 99% to the Limited  Partners until the
net profits  allocated  to the Limited  Partners  from such sale or  refinancing
equals  the  excess of the  greater of the  following  items over their  capital
account  immediately  prior to such sale or  refinancing:  (a) zero;  or (b) the
Limited  Partners'invested capital immediately prior to such sale or refinancing
plus 9% per annum of the  Limited  Partners'  average  invested  capital for all
fiscal  years  to  the  extent  not  received  through  prior  distributions  of
distributable cash from operations or sale or refinancing proceeds; or




<PAGE>


      Consolidated Resources Health Care Fund IV and Subsidiaries
                         (limited partnerships)

               Summary of Significant Accounting Policies




(c) the amount of sale or  refinancing  proceeds  distributable  to the  Limited
Partners;

(2) Second,  to the General  Partners  until the net  profits  allocated  to the
General Partners from such sale or refinancing  equals the excess of the greater
of the following items over their capital account immediately prior to such sale
or  refinancing:  (a) zero;  or (b) the amount of sale or  refinancing  proceeds
distributable to the General Partners from such sale or refinancing;  Third, any
remaining net profits shall be allocated 15% to the General  Partners and 85% to
the Limited Partners.

Net Income (Loss) Per Limited Partnership Unit

Net income  (loss) per Limited  Partnership  Unit is  computed  by dividing  net
income  (loss)  allocated  to the  Limited  Partners  by the  number of  Limited
Partnership units outstanding.

Reclassifications

Certain  1995 and 1994  amounts  have been  reclassified  to conform to the 1996
presentation.

Statements of Cash Flows

For  purposes  of this  statement,  cash  equivalents  include  bank  repurchase
agreements backed by U.S. Government  Securities,  U.S. Treasury Obligations and
money market funds with original maturities of three months or less.

Use of Estimates

The preparation of financial  statements in conformity  with generally  accepted
accounting   principles  requires  management  to  make  certain  estimates  and
assumptions  that  affect the  reported  amounts of assets and  liabilities  and
disclosure of  contingent  assets and  liabilities  at the date of the financial
statements  and the  reported  amounts  of  revenues  and  expenses  during  the
reporting period. Actual results could differ from those estimates.





<PAGE>


      Consolidated Resources Health Care Fund IV and Subsidiaries
                         (limited partnerships)

               Notes to Consolidated Financial Statements




1. Transactions With Former Affiliates

Amounts  claimed  payable  to former  affiliates  (primarily  Southmark  and the
Corporate General Partner) totalled  $2,266,170  including accrued interest,  at
December 31, 1994. In July 1991, Southmark filed suit demanding payment of these
alleged advances.  In 1991, after CAC's affiliate acquired the Corporate General
Partner,  it  challenged  the validity of these  payables  through  claims filed
against  the  Southmark  Bankruptcy  Estate.  In February  1994,  the suits were
settled  whereby the  Partnership  was released of all  liabilities to Southmark
(see Note 8). Accordingly, during 1995 and 1994, the Partnership recorded a gain
on debt  extinguishment  related to this  settlement  totalling  $2,266,170  and
$309,730, respectively. Amounts included in the gain on debt forgiveness in 1994
include  payables to Southmark  and former  affiliates  of Southmark of $233,388
plus settlement proceeds paid to the Partnership by Southmark totalling $76,342.
All remaining  amounts owed to affiliates and former affiliates were forgiven in
1995.

2. Management Fees and Affiliate Transactions

During  1996,  1995 and  1994 an  affiliate  of the  Corporate  General  Partner
received  management fees of 6 % of gross operating revenues from the facilities
that  the  affiliate   managed  totalling   $210,655,   $313,790  and  $317,271,
respectively. The affiliate was also reimbursed for costs incurred in connection
with the  administration  of  Partnership  activities  of  $64,534,  $58,176 and
$55,928,  during  the same  periods,  respectively,  which are  included  in the
Partnership  Administration Costs on the accompanying Consolidated Statements of
Operations.

3. Going Concern

The Partnership's  consolidated  financial statements have been presented on the
basis that it is a going concern,  which  contemplates the realization of assets
and the  satisfaction  of  liabilities  in the  normal  course of  business.  At
December 31, 1996, the Partnership has experienced working capital deficiencies,
had defaulted on certain debt  obligations and had no assurance of any financial
support from the General Partners.  The Partnership does not anticipate improved
liquidity during the remainder of 1997.

The Partnership's  continued existence is dependent upon its ability to generate
sufficient  cash flow to meet its  obligations on a timely basis, to comply with
the terms of its financing agreements, and to obtain additional financing as may
be required.  The  Partnership  is in the process of seeking  buyers for its two
remaining  facilities.  Debt obligations secured by these facilities  originally
matured April 1, 1996. The  Partnership  is currently  under an extension of the
due date on these  obligations  until  May 31,  1997.  The  inability  to obtain
additional extensions could result in foreclosure and a loss of the facilities.

4. Mortgage Obligations

Mortgage debt obligations consisted of:

                                                       1996             1995

9.6% note related to Heritage Manor of Emporia,
collateralized by real estate with recourse
to other assets of the Partnership,payable in                                   
monthly installments of principal and interest
of $14,281, due April 1, 1996.                     $ 1,047,435      $ 1,115,192

9.6% note related to Heritage Manor of Hoisington,
collateralized by real estate with recourse to
other assets of the Partnership,payable in 
monthly installments of principal and 
interest of $8,305, due April 1, 1996.                 609,401          648,770
                                                       -------          -------
                                               
                                                    $1,656,836       $1,763,962
                                                    ==========       ==========


The Partnership was in default on the mortgage debt related to Heritage Manor of
Hoisington  and  Heritage  Manor of Emporia at December 31, 1996 and 1995 due to
failure to maintain certain minimum debt service escrow  balances.  Furthermore,
each of the debt  obligations  matured  on April 1,  1996.  As a  result,  these
obligations are classified as current  liabilities in the  accompanying  balance
sheets for 1996 and 1995.

At December 31, 1996 and 1995,  substantially all property held for sale is held
as collateral for mortgage debt obligations.

The Partnership  paid interest of $190,711,  $471,486 and $430,665 in 1996, 1995
and 1994, respectively.

Restricted  escrow and other  deposits  include  amounts  held by lenders  under
various note terms.

Due to the default  provisions  described above, it is not practical to estimate
the fair value of the Partnership's mortgage obligations.

5. Distributions

Distributions  to the Partners  are paid from  operations  of the  Partnership's
properties, or from sales or refinancing of properties.  Cash from operations is
distributed 96% to the Limited Partners and 4% to the General Partners. However,
no  distributions of cash from operations may be made to the General Partners in
any year until the Limited  Partners have received  distributions  for such year
equal to 9% of their invested capital.

Distributions  of cash from  sales  and  refinancing  are made in the  following
order:  (a)first to the Limited  Partners in an amount  equal to their  invested
capital; then, (b) to the Limited Partners in an amount necessary to provide the
Limited Partners with a 9% cumulative, non-compounded return on invested capital
to the extent not previously  received  through  distributions  of distributable
cash from operations; then, (c) to the General Partners in an amount up to 3% of
the sales price of all properties on a cumulative  basis;  then, (d) the balance
15% to the General Partners and 85% to the Limited Partners.

During 1994, the Partnership distributed $1,000,000 of proceeds from the sale of
the Rainbow  Springs  facility (see Note 7). No  distributions  were made during
1995 or  1996.  Cumulative  distributions  paid to the  Limited  Partners  as of
December  31,  1996 were  $5,446,590.  There have been no  distributions  to the
General Partners.

6.   Property Held for Sale and Loss from Write-Down of Properties

The  Partnership  recorded  write-downs  to reduce the carrying value of certain
properties  to  their  estimated  net  realizable  value  as  determined  by the
Corporate  General Partner.  These writedowns were as follows as of December 31,
1996 and 1995:

Heritage Manor of Emporia                                  $1,317,825
Heritage Manor of Hoisington                                  447,506
                                                              -------

                                                           $1,765,331
                                                           ==========







<PAGE>


      Consolidated Resources Health Care Fund IV and Subsidiaries
                         (limited partnerships)

               Notes to Consolidated Financial Statements




Property held for sale at December 31, 1996,  consisted of the Partnership's two
nursing home facilities.



Heritage Manor of Emporia
Heritage Manor of Hoisington                                       $215,818
                                                                    397,380
                                                                    -------

                                                                   $613,198
                                                                   ========


7. Property Dispositions

The Oaks of Mountain Grove  ("Mountain  Grove") was sold  effective  October 18,
1995, and a gain of $377,591 was  recognized.  Under the terms of the agreement,
the purchaser acquired all the assets except patient accounts  receivables,  and
assumed bonds payable of $2,825,000 and accrued interest thereon.  In connection
with the sale,  the  Partnership  paid cash of $45,697,  for  closing  costs and
certain accrued operating expenses.  During the period January 1 through October
18,  1995,  Mountain  Grove  earned  approximately  $2,275,000  in revenues  and
incurred approximately $2,115,000 in expenses.

Heritage  Manor of Red Boiling  Springs was sold  effective  April 30, 1991.  In
connection with the sale, the Partnership  received a $250,000 note  receivable,
bearing  interest at 11%, from the purchaser.  The note receivable was collected
in September 1995.

In 1989,  the joint owner of Rainbow  Springs filed for  bankruptcy  protection.
Rainbow Springs was auctioned for sale by the bankruptcy court with jurisdiction
over this joint owner on January 31, 1994. The sale was closed on March 31, 1994
at  a  sales  price  of  $4,200,000.  Under  the  allocation  of  proceeds,  the
Partnership received proceeds of $1,410,283 (net of delinquent real estate taxes
totalling $1,213,468) and recognized a gain on sale of $607,169.

8. Southmark Litigation

In November 1990, the Partnership  filed claims against  Southmark in the United
States  Bankruptcy Court for the Northern District of Texas. In August 1991, the
Partnership  was  served  notice  that on July 12,  1991,  Southmark  filed suit
against the Partnership, the Corporate General Partner,  partnerships controlled
by affiliates of the Corporate General Partner and partnerships and corporations
which are  unaffiliated  with the Partnership or the Corporate  General Partner.
The suit was also filed in the United States  Bankruptcy  Court for the Northern
District of Texas,  Dallas Division.  On October 15, 1991, the Partnership filed
its response,  including counterclaims against Southmark,  for alleged fraud and
misrepresentation  and  asserting  that in fact  Southmark  owed  amounts to the
Partnership  as  represented  by  Proof  of  Claims  filed  against  Southmark's
bankruptcy estate.

The Partnership and Southmark reached a settlement  agreement  effectively filed
with the  Bankruptcy  Court in January  1994,  regarding the claims filed by the
Partnership  against  Southmark and  Southmark's  suit against the  Partnership.
Under this  settlement  agreement,  Southmark  releases  all claims  against the
Partnership  and  recognized  the  Partnership's  claims.  In  settlement of the
Partnership's claims, Southmark paid $76,345 to the Partnership in 1994.

9. Cost Reimbursements

Accounts   receivable  and  operating   revenue  include  amounts  estimated  by
management  to  be  reimbursable  by  Medicaid  under  the  provisions  of  cost
reimbursement  formulas  in effect.  Final  determination  of amounts  earned is
subject to audit by the intermediaries.  In the opinion of management,  adequate
provision  has been made for any  adjustments  that may result from such audits.
Differences  between estimated  provisions and final settlement are reflected as
charges or credits to operating revenue in the year finalized. Medicaid




<PAGE>


      Consolidated Resources Health Care Fund IV and Subsidiaries
                         (limited partnerships)

               Notes to Consolidated Financial Statements




accounted for  approximately  48%, 49% and 51% of operating revenue during 1996,
1995 and 1994, respectively.

Significant   changes  have  and  will   continue  to  be  made  in   government
reimbursement  programs, and such changes could have a material impact on future
reimbursement formulas.

Accounts  receivable are recorded at net realizable value and relate principally
to amounts due from various  state  Medicaid  programs.  Receivables  from these
programs were approximately as follows:

                                          1996           1995
                                          ----           ----
                                          
Kansas                                  $173,000        $110,000
Missouri                                      -           75,000


Amounts due from  Medicaid  programs  are  usually  paid on an interim and final
basis,  depending  on the  state,  generally  within  30 to 60 days from date of
billing.


10.   Concentration of Credit Risk

At December 31, 1996, the  Partnership had and cash on deposit with a bank which
exceeded Federal Deposit Insurance Corporation limits by $585,180.

11.   Supplemental Disclosures of Cash Flow Information

As  discussed  in Note 1,  the  Partnership  had a  forgiveness  of debt  due to
Southmark  in 1995  and  1994.  In  connection  with the  forgiveness,  gains of
$2,266,170 and $309,730 were recorded in 1995 and 1994, respectively.

The above amounts are included in the extraordinary  gain of debt forgiveness on
the accompanying statements of cash flows.






<PAGE>





                                   SCHEDULE




<PAGE>


      Consolidated Resources Health Care Fund IV and Subsidiaries
                         (limited partnerships)



                Schedule II - Valuation and Qualifying Accounts
                  Years Ended December 31, 1996, 1994 and 1993


                   Balance at       Additions                      Balance at
                  beginning of   charged to costs  Deductions(1)   end of year
                      year         and expenses

1996
Allowance for                                
doubtful accounts  $   72,978      $ 167,805       $(240,783)      $     -
                   ==========      =========       =========       =======

1995
Allowance for
doubtful accounts  $   72,978      $       -       $               $72,978
                   ==========      =========       ========        =======

1994
Allowance for
doubtful accounts  $   80,864      $   9,754       $(17,640)       $72,978
                   ==========      =========       ========        =======


(1) Represents direct write-offs of receivables.




<PAGE>





ITEM 9.     CHANGES IN  AND DISAGREEMENTS WITH ACCOUNTANTS ON
            ACCOUNTING AND FINANCIAL DISCLOSURE


None.

                                PART III

ITEM 10.    DIRECTIONS AND EXECUTIVE OFFICERS OF THE REGISTRANT

The Partnership  does not have officers or directors.  At December 31, 1991, the
General  Partners  of  the  Partnership  were  WelCare  Consolidated   Resources
Corporation of America  ("WCRCA"),  and  Consolidated  Associates IV.  Effective
January  7,  1992,   WSC-IV  was  added  as  Managing  General  Partner  of  the
Partnership.  The  executive  officers  and  director  of WSC-IV and WCRCA,  who
control the affairs of the Partnership, are as follows:


 Name and Position    Age    Other Principal Occupations and Other Directionship
                             During the Past 5 Years

J. Stephen  Eaton     46     J. Stephen Eaton is sole Chairman of the Board and 
President, Chief Executive   the founder of Centennial HealthCare Corporation
Officer and Sole Director    and has served as its President and Chief Executive
                             Officer since its inception in February 1989.
                             Mr. Eaton has been involvedin the long-term care
                             industry since 1982. Mr. Eaton also serves as a 
                             director of Saint Joseph's Mercy Care Corporation,
                             a non-profit corporation based in Atlanta,
                             Georgia  which  provides mobile health seervices 
                             to the  homeless  and  other  underserved
                             populations, and of Saint Joseph's Health System, a
                             major  tertiary  care hospital and health system in
                             Atlanta, Georgia.


Alan C. Dahl          36     Alan C. Dahl has served as Executive Vice President
Vice President, Chief        Chief Financial Officer, and Director of Centennial
Financial Officer            HealthCare Corporation since January 1996.  From 
and Treasurer                February 1991 to December 1995, he served as senior
                             vice president.  Mr. Dahl has been involved in 
                             healthcare finance for the past eleven years.  
                             Mr. Dahl was previously senior vice president of 
                             Southmark Public Syndications, Inc.,a subsidiary of
                             Southmark Corporation.  Mr.Dahl, a certified 
                             public accountant, also worked in the tax 
                             department at Arthur Young & Company.


ITEM 11.    EXECUTIVE COMPENSATION

No  individual   principal  or  principals  as  a  group   received  any  direct
remuneration from the Partnership.

The General Partners are not compensated  directly for their services as general
partners  of the  Partnership.  See  Item  13 and  Item  8,  Note 2 for  further
discussion of compensation paid to affiliates of the General Partners.




<PAGE>





ITEM 12.  SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

(A)                   Security ownership of certain beneficial owners.

    No  individual  or group as defined by Section  13(d)(3)  of the  Securities
    Exchange Act of 1934,  known to the  Partnership is the beneficial  owner of
    more than 5% of the Partnership's securities.

(B)                   Security ownership of management.

    The General Partners and their management own less than 1%.

    The General  Partners are entitled to  distributions of cash from operations
    and  from  "other  sources"  (primarily  from  the  sale or  refinancing  of
    Partnership properties, as set forth in Item 8, Note 4).

(C)                   Change in control.

    On January 30, 1997, all of the stock of the Corporate  General  Partner and
    Managing  General  Partner  of the  Partnership  was  sold  to  Consolidated
    Partners  Corporation,  which is wholly-owned by the president of Centennial
    who is also a general partner of Consolidated Associates IV.



<PAGE>












ITEM 13.  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

Affiliates and former affiliates of the General Partners, in accordance with the
Partnership  Agreement,  may receive  compensation  for services  rendered.  The
following is a summary of compensation paid to or accrued for the benefit of the
General Partners and affiliates in 1995:

   Management fees          .......................................... $210,655
   Partnership activities (1)......................................      64,534

  (1) For reimbursement of expenses incurred by the Corporate General Partner in
performing certain  administrative  functions,  including investor relations and
accounting.

See Note 2 to the accompanying  consolidated  financial  statements appearing in
Part II, Item 8.


                                PART IV


ITEM 14.  EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON FORM 8-K

(a) (1) The following financial statements are included in Part II, Item 8:

Consolidated Financial Statements:

Report of Independent Certified Public Accountants

Balance Sheets - as of December 31, 1996 and 1995

Statements of Operations - for the Years Ended December 31, 1996, 1995 and 1994

Statements of Partners' Deficit - for the Years Ended 
  December 31, 1996,1995 and 1994

Statements of Cash Flows - for the Years Ended December 31, 1996, 1995 and 1994

Summary of Significant Accounting Policies

Notes to Consolidated Financial Statements

   (2) The following  financial statement schedule is included in Part II,
        Item 8:

      Schedule II - Valuation and Qualifying Accounts

      All other schedules are omitted since they are not required,and 
      are not applicable or the financial information required is included 
      in the financial statements or notes thereto.




<PAGE>





    (3)               Exhibits:

The following exhibits are incorporated by reference and are an integral part of
this Form 10-K.

   Exhibit Number
(as per Exhibit Table)               Document Description

 2.1     Liquidation Proposal incorporated by reference to the Proxy Statement 
         filed on September 28, 1994 file 0-14435.

 3.1     Amended and Restated Agreement of Limited Partnership of Consolidated
         Resources Health Care Fund IV incorporated by reference to Exhibit A 
         to the Registration Statement on Form S-1, Page A-1, File No. 2-93219.

 3.2     Amendment to Amended and Restated Agreement of Limited Partnership of
         Consolidated Resources Health Care Fund IV incorporated by reference to
         Exhibit A to Proxy Statement filed on November 19,1991,File No. 0-14435

  21     Subsidiaries

  27     Financial Data Schedules



(b)       Reports on Form 8-K

    (1)   None





<PAGE>





                               SIGNATURES


Pursuant to the  requirements of Section 13 or 15(d) of the Securities  Exchange
Act of 1934,  Registrant  has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.



                   CONSOLIDATED RESOURCES HEALTH CARE FUND IV
                                  (Registrant)

                                       By:   WELCARE SERVICE CORPORATION - IV
                                             --------------------------------
                                             Managing General Partner

                                       By:    /s/ J. Stephen Eaton
                                             ------------------
Date:04/15/97                                 J. Stephen Eaton,
                                              President


Pursuant to the requirements of the Securities Exchange Act of 1934, this report
has been signed below by the following persons,  on behalf of the Registrant and
in the capacities and on the dates indicated:



                                       By:     /s/ J. Stephen Eaton
                                               -----------------
Date:04/15/97                                  J. Stephen Eaton,
                                               Sole Director and Principal
                                               Executive Officer of the
                                               Managing General Partner


                                       By:     /s/ Alan C. Dahl
                                               ------------
Date:04/15/97                                  Alan C. Dahl
                                               Chief Financial Officer
                                               of the Managing General Partner








<PAGE>





                             Exhibit Index

  Exhibit Number                  Description             Sequential Page Number

     2.1   Liquidation Proposal incorporated by reference to the           N/A
           Proxy Statement filed on September 28, 1994 file 0-14435.


     3.1    Amended and Restated Agreement of Limited N/A Partnership of   N/A
            Consolidated  Resources  Health Care Fund IV incorporated by
            reference to Exhibit A to the Registration Statement on Form
            S-1, Page A-1, File No.
            2-93219.


     3.2    Amendment to Amended and  Restated  Agreement of N/A Limited   N/A
            Partnership of  Consolidated  Resources  Health Care Fund IV
            incorporated  by reference  to Exhibit A to Proxy  Statement
            filed on November 19, 1991, File No.
            0-14435.

     21     Subsidiaries                                                    E


     27     Financial Data Schedules                                        E

                 E submitted electronically as a separate document 
                 herewithin the Registrant's Form 10-K405