<PAGE>   1
                                 UNITED STATES

                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                   FORM 10-Q

(Mark One)

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

                 For the quarterly period ended March 31, 1997

                                       OR

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

                       For the transition period from to

                         Commission file number 0-26688

                            UNITED DENTAL CARE, INC.
             (Exact name of registrant as specified in its charter)

               DELAWARE                                 75-2309712
     (State or other jurisdiction                    (I.R.S. Employer
           of incorporation)                         Identification No.)

                       13601 PRESTON ROAD, SUITE 500 EAST
                              DALLAS, TEXAS 75240
                    (Address of principal executive offices)
                                   (Zip Code)

                                 (972) 458-7474
              (Registrant's telephone number, including area code)

                                      NONE
                    (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
     ---        ---

The number of shares outstanding of the issuer's only class of $.10 par value
common stock as of April 29, 1997 was 8,928,616.


<PAGE>   2


                            UNITED DENTAL CARE, INC.

                                     INDEX


                                                                      Page No.
PART I.  FINANCIAL INFORMATION                                        --------

Item 1.  Consolidated Financial Statements

         o     Consolidated Balance Sheets
                December 31, 1996 and March 31, 1997.......................  3

         o     Consolidated Statements of Operations
                for the three months ended March 31, 1996 and
                1997.......................................................  4

         o     Consolidated Statements of Cash Flows
                for the three months ended March 31, 1996 and
                1997.......................................................  5

         Notes to Consolidated Financial Statements........................  6

Item 2.  Management's Discussion and Analysis of Financial
           Condition and Results of Operations.............................  7

PART II. OTHER INFORMATION

Item 4.  Submission of Matters to a Vote of Security-Holders............... 11

Item 6.  Exhibits and Reports on Form 8-K.................................. 11

SIGNATURES................................................................. 12



                                    2 of 12

<PAGE>   3


                         PART I. FINANCIAL INFORMATION


ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS


                   United Dental Care, Inc. and Subsidiaries
                          Consolidated Balance Sheets
                                 (In thousands)


<TABLE>
<CAPTION>
                                                   December 31,    March 31,
                                                       1996          1997
                                                   ------------   ------------
                                                                  (Unaudited)
<S>                                                <C>            <C>         
ASSETS

  Cash and cash equivalents ....................   $     50,035   $     19,342
  Premiums receivable, net .....................         11,016         13,870
                                                   ------------   ------------
  Accrued interest and other current assets ....            832          1,569
  Deferred taxes, current ......................            957            957
                                                   ------------   ------------
    Total current assets .......................         62,840         35,738
  Regulatory deposits ..........................          3,433          3,705
  Furniture and equipment, net .................          7,056          9,104
  Intangible assets, net .......................         91,066         96,167
  Pre-operational costs, net ...................            127            238
  Other assets, net ............................            856             43
  Deferred taxes, noncurrent ...................            294            294
                                                   ------------   ------------
TOTAL ASSETS ...................................   $    165,672   $    145,289
                                                   ============   ============

                     LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
  Accounts payable and accrued expenses ........   $      5,805   $      7,435
  Current portion of debt ......................         26,191          1,260
  Claims reserve ...............................          2,172          2,522
  Unearned premiums ............................          3,177          3,012
  Other current liabilities ....................             75           --
                                                   ------------   ------------
     Total current liabilities .................         37,420         14,229
  Long-term debt, net of current portion .......          2,757          2,583
                                                   ------------   ------------
    Total liabilities ..........................         40,177         16,812
                                                   ------------   ------------

STOCKHOLDERS' EQUITY
  Preferred stock, $.10 par value ..............           --             --
  Common stock, $.10 par value .................            891            893
  Additional paid-in-capital ...................        108,223        108,484
  Retained earnings ............................         16,381         19,100
                                                   ------------   ------------
    Total stockholders' equity .................        125,495        128,477
                                                   ------------   ------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY .....   $    165,672   $    145,289
                                                   ============   ============
</TABLE>


                     The accompanying notes are an integral
                      part of these financial statements.


                                    3 of 12
<PAGE>   4

                            United Dental Care, Inc.
                     Consolidated Statements of Operations
            (In thousands, except per share amounts and share data)
                                  (Unaudited)



<TABLE>
<CAPTION>
                                                        Three Months Ended
                                                             March 31,
                                                     -----------------------
                                                        1996         1997
                                                     ----------   ----------
<S>                                                  <C>          <C>       
REVENUES:
    Dental services revenues .....................   $   24,582   $   44,848
    Interest income ..............................          212          175
                                                     ----------   ----------
           Total revenues ........................       24,794       45,023
                                                     ----------   ----------
COSTS AND EXPENSES:
    Dental services expense ......................       14,931       28,250
    Sales and marketing ..........................        2,798        4,706
    General and administrative ...................        4,282        6,326
    Depreciation and amortization ................          465        1,136
    Interest expense .............................           94          147
                                                     ----------   ----------
           Total costs and expenses ..............       22,570       40,565
                                                     ----------   ----------
INCOME BEFORE INCOME TAXES .......................        2,224        4,458
PROVISION FOR INCOME TAXES .......................          813        1,739
                                                     ----------   ----------
NET INCOME .......................................   $    1,411   $    2,719
                                                     ==========   ==========

NET INCOME PER COMMON SHARE ......................   $     0.19   $     0.30

WEIGHTED AVERAGE SHARES OUTSTANDING ..............    7,250,442    9,159,194
</TABLE>


                     The accompanying notes are an integral
                      part of these financial statements.


                                    4 of 12
<PAGE>   5


                   United Dental Care, Inc. and Subsidiaries
                     Consolidated Statements of Cash Flows
                                 (In thousands)
                                  (Unaudited)


<TABLE>
<CAPTION>
                                                                                 For Three Months Ended
                                                                                        March 31,
                                                                                ------------------------
                                                                                   1996          1997
                                                                                ----------    ----------
<S>                                                                             <C>           <C>       

OPERATING ACTIVITIES:
  Net income ................................................................   $    1,411    $    2,719
  Adjustments to reconcile net income to net cash provided by
      operating activities:
      Depreciation and amortization .........................................          465         1,136
      Changes in operating assets and liabilities:
           Increase in premiums receivable ..................................         (859)       (2,607)
           Increase in accrued interest and other current assets ............         (372)         (590)
           Increase (decrease) in accounts payable, accrued expenses
                and claims reserve ..........................................         (860)        3,462
           Increase in deferred income taxes ................................          (50)         --
           Decrease in other assets .........................................          311           597
           Increase (decrease) in unearned premiums .........................        1,235          (295)
                                                                                ----------    ----------
                Net cash provided by operating activities ...................        1,281         4,422

INVESTING ACTIVITIES:
  Purchases of furniture and equipment ......................................         (962)       (2,466)
  Decrease in regulatory deposits ...........................................           12            28
  Investment in new markets .................................................          (30)         (111)
  Purchase of acquisitions (net of cash acquired) ...........................      (13,575)       (7,589)
                                                                                ----------    ----------
                Net cash used in investing activities .......................      (14,555)      (10,138)


FINANCING ACTIVITIES:
  Repayment of indebtedness .................................................      (11,136)      (25,080)
  Stock options exercised ...................................................           15           103
                                                                                ----------    ----------
                Net cash used in financing activities .......................      (11,121)      (24,977)

NET DECREASE IN CASH AND CASH EQUIVALENTS ...................................      (24,395)      (30,693)
CASH AND CASH EQUIVALENTS:
   Beginning of period ......................................................       46,940        50,035
                                                                                ----------    ----------
   End of period ............................................................   $   22,545    $   19,342
                                                                                ==========    ==========

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: Cash paid during the period
  for:
      Interest ..............................................................   $      142    $      228
                                                                                ==========    ==========
      Income taxes ..........................................................   $      272    $       16
                                                                                ==========    ==========
</TABLE>


                     The accompanying notes are an integral
                      part of these financial statements.


                                    5 of 12
<PAGE>   6
                                                                               
                   United Dental Care, Inc. and Subsidiaries                   
                   Notes to Consolidated Financial Statements                  
                                  (Unaudited)                                  
                                                                               
                                                                               
                                                                               
1.       Basis of Presentation                                                 
                                                                               
         The financial statements included herein have been prepared by the    
         Registrant, without audit, pursuant to the rules and regulations of   
         the Securities and Exchange Commission. Certain information and       
         footnote disclosures normally required under generally accepted       
         accounting principles have been omitted pursuant to such rules and    
         regulations. It is suggested that these financial statements be read  
         in conjunction with the consolidated financial statements and the     
         notes thereto contained in the Company's Annual Report on Form 10-K.  
         However, this information reflects all adjustments (consisting solely 
         of normal recurring adjustments) that are, in the opinion of          
         management, necessary for a fair statement of the results of the      
         interim periods. The results of operations for the year to date are   
         not necessarily indicative of the results to be expected for the full 
         year.                                                                 
                                                                               
2.       Acquisitions                                                          
                                                                               
         Effective November 1, 1995, the Company completed the acquisition of  
         all of the outstanding common stock of U.S. Dental Management, Inc.   
         ("US Dental") for $1.3 million in cash, deferred payments of $1.0     
         million (consulting and non-competition agreements) and a promissory  
         note, maturing January 18, 1996, in the amount of $10.3 million (the  
         "US Dental Promissory Note"). US Dental was a managed dental benefits 
         company that operated managed dental plans in Arizona, Colorado,      
         Nebraska and New Mexico, providing dental benefits to approximately   
         163,000 members.                                                      
                                                                               
         Effective February 1, 1996, the Company completed the acquisition of  
         all of the outstanding capital stock of Associated Health Plans, Inc. 
         and Associated Companies, Inc. (collectively, "Associated") for $15.0 
         million, composed of $14.1 million in cash at closing, financed       
         through internal funds, $0.3 million in cash from escrow deposits and 
         additional monthly payments totaling $0.6 million for the three-year  
         period beginning February 1996. Associated was a managed dental       
         benefits company that operated managed dental plans in Arizona,       
         providing dental benefits to over 220,000 members.                    
                                                                               
         Effective October 1, 1996, the Company completed the acquisitions of  
         all of the outstanding common stock of Independent Dental Plan, Inc.  
         ("Independent") for $1.3 million in cash and of Association Dental    
         Plan, Inc. ("Association") for $3.2 million in cash. Independent      
         operated a prepaid dental plan in Michigan having approximately 10,000
         members. Association operated a multi-state dental referral plan      
         having approximately 60,000 members.                                  
                                                                               
         Effective November 1, 1996, the Company completed the acquisitions of 
         all of the outstanding common stock of Kansas City Dental Care, Inc.  
         ("KCDC") for $12.5 million in cash and of OraCare DPO, Inc.           
         ("OraCare") for $5.6 million in cash and a promissory note, maturing  
         January 2, 1997, in the amount of $24.9 million (the "OraCare         
         Promissory Note"). The OraCare Promissory Note was paid in full at    
         maturity on January 2, 1997. KCDC operated prepaid dental plans in    
         Missouri and Kansas having approximately 90,000 members in the        
         aggregate. OraCare was a New Jersey prepaid dental plan having        
         approximately 150,000 members and an affiliated dental management     
         company.                                                              
                                                                               
         Effective January 1, 1997, the company completed the acquisition of   
         all of the outstanding common stock                                   
                                                                               
                                                                               
                                    6 of 12                                    
                                                                               
<PAGE>   7


         of United Dental Care, Inc., an Oklahoma corporation ("United") for
         $10.8 million in cash. At the date of acquisition, United had cash and
         regulatory deposits of $3.2 million. United, through an indemnity
         insurance company subsidiary, operated a prepaid plan in Oklahoma
         having approximately 90,000 members.

3.       Stockholders' Equity

         In October 1996, the Company completed a public offering of 2,000,000
         shares of its common stock for $30.00 per share (the "Offering"),
         resulting in net proceeds of $56.2 million. The Company used a portion
         of the proceeds to complete the acquisitions of Independent,
         Association, OraCare and KCDC in 1996 and of United in 1997.

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND 
         RESULTS OF OPERATIONS

The following discussion should be read in conjunction with the attached
consolidated financial statements and notes thereto.

DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS

This document includes "forward-looking statements" within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. All statements other than
statements of historical fact included in this document, including, without
limitation, statements under "Management's Discussion and Analysis of Financial
Condition and Results of Operations" regarding the Company's financial
position, business strategy and plans and objectives of management of the
Company for future operations are forward-looking statements. Although the
Company believes that the expectations reflected in such forward-looking
statements are reasonable, it can give no assurance that such expectations will
prove to have been correct. Important factors that could cause actual results
to differ materially from the Company's expectations are disclosed throughout
the Company's 1997 Form 10-K, including, without limitation, in conjunction
with the forward-looking statements included therein. All subsequent written
and oral forward-looking statements attributable to the Company or persons
acting on its behalf are hereby expressly qualified in their entirety.


                                    7 of 12
<PAGE>   8


RESULTS OF OPERATIONS

The following table sets forth, for the periods indicated, the percentages of
revenues represented by the items reflected in the Company's consolidated
statements of operations:


<TABLE>
<CAPTION>
                                                  For three Months Ended
                                                         March 31
                                                 ------------------------
                                                    1996          1997
                                                 ----------    ----------
<S>                                               <C>           <C>  
Revenues:
      Managed benefits .......................         83.6%         83.9%
      Indemnity ..............................         15.2          12.5
      Dental centers .........................         --             5.7
          Less:  Intercompany ................         --            (2.5)
      Interest ...............................          1.2           0.4
                                                 ----------    ----------

            Total revenues ...................        100.0         100.0
                                                 ----------    ----------

Expenses:
      Dental services:
         Managed benefits ....................         48.7          51.3
            Less:  Intercompany ..............         --            (2.5)
         Indemnity ...........................         11.5           9.8
         Dental centers ......................         --             4.1
                                                 ----------    ----------

            Subtotal .........................         60.2          62.7
                                                 ----------    ----------


      Sales and marketing expenses ...........         11.3          10.5
      General and administrative expenses ....         17.2          14.1
      Depreciation and amortization ..........          1.9           2.5
      Interest expense .......................          0.4           0.3
                                                 ----------    ----------

            Total expenses ...................         91.0          90.1
                                                 ----------    ----------

Net income before income taxes ...............          9.0           9.9
Provision for income taxes ...................          3.3           3.9
                                                 ----------    ----------

Net income ...................................          5.7%          6.0%
                                                 ==========    ==========
</TABLE>


Comparison of First Quarter of 1997 to First Quarter of 1996

Revenues. Total revenues for the quarter ended March 31,1997, increased by
$20.2 million, or 81.6% to $45.0 million from $24.8 million in the comparable
quarter of 1996. Managed benefits revenues increased $17.0 million to $37.8
million. Of this increase, $12.4 million was attributable to the members added
through the acquisitions of Associated (effective February 1, 1996),
Independent and Association (effective October 1, 1996), KCDC and OraCare
(effective November 1, 1996) and United (effective January 1, 1997). The
increase in managed benefits premium revenues was primarily a result of an
increase in the number of members rather than price increases. During the three
months ended March 31, 1997, members increased from 1,729,000 at December 31,
1996, to 1,935,000 at March 31, 1997. The increase in the comparable period
from December 31, 1995 to March 31, 1996 was from 937,000 to 1,178,000.
Historically, the Company's rate of premium increases on its managed benefits
products has been less than the rate of increase in the cost of dental services
in general. Indemnity revenues increased from $3.8 million to $5.6 million.
Approximately 3.2% of total revenues (after the elimination of intercompany
revenues in consolidation) were generated by the dental centers acquired as
part of the OraCare acquisition in November 1996.

Dental Services Expense. Dental services expense increased $13.3 million, or
89.2% to $28.3 million in 1997 from $14.9 million in 1996. Dental services
expense as a percentage of total revenues increased to 62.7% in 1997 from 60.2%
in 1996, primarily due to the higher dental services expense ratio in the
Arizona Medicaid managed dental benefits business added during the fourth
quarter of 1996. Dental services expense for the Company's managed


                                    8 of 12
<PAGE>   9


benefits plans, which consist primarily of capitation payments to general
dentists, increased to 61.1% of managed benefits revenues in 1997, from 58.3%
in 1996. The Arizona Medicaid managed benefits plans pay general dentists a
significantly higher percentage of premiums than the average of the Company's
other managed benefits plans. Claims expense for the indemnity business in the
first quarter of 1997 was 77.8% of indemnity revenues, up from 75.6% in the
comparable quarter of 1996. Generally, it is management's intention to continue
to increase premiums in all markets over the next several years, as market
conditions permit, thereby increasing revenues. In most markets, amounts paid
to general dentists through capitation payments will also be increased somewhat
to maintain the Company's competitive position and to improve the economics for
managed care general dentists. Management expects these actions to result in
the dental services expense for the managed dental benefits plans as a
percentage of managed benefits revenues remaining approximately the same as the
percentage experienced in the first quarter of 1997. The dental centers' dental
services expenses, as a percentage of total revenues, exceeded the dental
centers' contribution to revenues as a result of the elimination in
consolidation of intercompany revenues.

Sales and Marketing Expenses. Sales and marketing expenses increased $1.9
million, or 68.2% to $4.7 million in 1997 from $2.8 million in 1996. Sales and
marketing expenses as a percentage of revenue decreased to 10.5% in 1997 from
11.3% in 1996. A portion of the sales and marketing costs, such as base
salaries of field sales personnel and office rents, are fixed so that the
expenses as a percentage of revenues decline as revenues increase.

General and Administrative Expenses. General and administrative expenses
increased $2.0 million, or 47.7%, to $6.3 million in 1997 from $4.3 million in
1996. The decrease in general and administrative expenses as a percentage of
revenues from 17.2 % in 1996 to 14.1% in 1997 was primarily attributable to the
largely fixed nature of such costs, which generally do not vary in the short
term relative to changes in revenue.

Depreciation and Amortization. Depreciation and amortization expenses increased
$0.7 million, 144.3%, to $1.1 million in 1997 from $0.5 million in 1996. This
increase was the result of amortization of the goodwill and the consulting and
non-competition agreements attributable to the acquisitions of Associated,
Independent, Association, KCDC, OraCare and United and depreciation related to
the Company's new computer systems.

Interest Expense. Interest expense remained essentially unchanged at about $0.1
million. The $0.1 million was composed primarily of the imputed interest on the
consulting and non-competition agreements incurred to finance the Company's
acquisitions. The weighted average interest rates on the agreements during the
first quarter of 1997 was 7.9%. This weighted average interest rate includes
the fees for letters of credit related to the agreements. In addition, the
Company amortized the cost of its revolving credit agreement and paid a fee
equal to about 0.15% per annum on the amount remaining available to be drawn
under the credit facility for a total interest cost for the credit facility of
0.26% per annum.

Taxes. The average tax rate was 39.0% and 36.6% in 1997 and 1996, respectively.
In 1997 the average tax rate was greater than the statutory Federal tax rate of
34%, primarily as the result of the non-deductibility of the amortization of
goodwill incurred in the Company's acquisitions.

LIQUIDITY AND CAPITAL RESOURCES

General. The Company's historical operating cash requirements have been met
through cash provided by operations. Net cash provided by operating activities
was $4.4 million for the three months ended March 31, 1997. An increase in
accounts payable, accrued expenses and claims reserves provided net cash of
$3.5 million largely as a result of an increase in accrued income tax payable
of $1.6 million, $0.5 due to the acquisition of United effective January 1,
1997 and $0.3 million for an increase in claims reserve.

The Company's primary cash need after operations is for debt service on
consulting and non-competition agreements entered into in connection with
previous acquisitions. The principal amount of such indebtedness of the Company
at March 31, 1997 was $3.8 million. The various agreements have fixed rates of
interest ranging from 5.0% to 7.5% and require aggregate payments of principal
and interest of $1.4 million each year.


                                    9 of 12
<PAGE>   10


In January 1997, the company paid off the OraCare Promissory Note for $24.9
million as required by the OraCare acquisition agreement. The Company completed
the acquisition of United in January 1997. The United acquisition agreement
required the Company to pay $10.8 million at the closing. (See Note 2 above)

The Company completed the acquisition of Associated effective February 1, 1996.
The Associated acquisition agreement required the Company to pay $14.1 million
at the closing and to release $0.3 million from escrow deposits. In January,
the Company paid off the US Dental Promissory Note for $10.3 million as
required by the US Dental acquisition agreement (see Note 2 above).

Capital Expenditures. In June 1995, the Company entered into a contract to
acquire a new information system to replace its existing system. Management has
reviewed the status of the project and revised the projected capital cost of
the system and the related database conversion, including conversion of the
databases of the Company's recent acquisitions. The project is currently
expected to cost approximately $7.1 million and to be completed in 1998.
Capital expenditures, other than the cost of the new information system, were
$1.5 million during the three months ended March 31, 1997. Such expenditures
included approximately $0.6 million for computer equipment and $0.2 million for
a new telephone system. The remaining capital expenditures primarily consisted
of leasehold improvements and equipment purchased in connection with the
relocation of the company's headquarters to new office space at the end of
March. Capital expenditures for the remainder of the 1997 fiscal year,
excluding the costs associated with the new information system, are expected to
be approximately $2.5 million.

Credit Facility. On November 14, 1996, the Company signed a revolving credit
agreement providing a $35.0 million revolving credit facility with an
unaffiliated bank. The purpose of the revolving credit facility is to provide
(i) for funding future acquisition of managed dental benefits companies; (ii)
for the issuance of letters of credit; (iii) for capital expenditures; and (iv)
at the election of the Company, a working capital line of credit in an amount
up to $5.0 million out of the total amount available under the revolving credit
facility. The revolving credit facility has a term of four years, expiring
November 30, 2000. Outstanding indebtedness under the revolving line of credit
will bear interest payable quarterly, at the Company's option, at: (i) up to
0.25% over the base rate of the lender or (ii) up to 1.85% over LIBOR, with the
margin over the respective rates decreasing as the ratio of total funded debt
to earnings before interest, taxes, depreciation and amortization ("EBITDA")
decreases. The Company pays an annual fee of up to 0.25% of the amount
remaining available to be drawn under the credit facility and up to 0.85% of
the amount available to be drawn under letters of credit issued under the
credit facility.

The revolving credit facility is secured by the pledge of all the outstanding
capital stock of the direct and indirect subsidiaries of the Company and a
negative pledge on all other assets. The revolving credit facility contains
numerous covenants including, among other things, that the Company cannot,
except in certain permitted instances, (i) incur any additional indebtedness;
(ii) grant liens on any of the assets of the Company or its subsidiaries; (iii)
declare or pay any dividends; or (iv) merge or consolidate with any other
entity. In addition, the Company is required to satisfy on an ongoing basis
certain financial covenants. The Company's breach of any covenant would result
in an event of default under the revolving credit facility.

In 1994, the Company arranged for the issuance of two letters of credit in the
aggregate amount of $4.8 million. The letters of credit secure the obligations
of the Company under certain agreements executed in connection with an
acquisition. The letters of credit decline in amount annually and expire in
September 1998. The Company pays an annual fee of up to 0.85% of the amount
remaining to be drawn under the letters of credit.

Regulation. Under applicable insurance laws of most states in which the Company
conducts business, the Company's subsidiary operating in the particular state
is required to maintain a minimum level of net worth and reserves. In general,
minimum capital requirements are more stringent for insurance companies, such
as United Dental Care Insurance Company ("UDCIC") and UDC Life & Health
Insurance Co. ("UDCLH"), the Company's indemnity dental insurance subsidiaries.
The Company may be required from time to time to invest funds in one or more of
its subsidiaries to meet regulatory capital requirements. The implementation of
risk-based capital regulations in states having jurisdiction over UDCIC and
UDCLH may require that the Company increase its


                                    10 of 12
<PAGE>   11


investment in such subsidiaries. However, the Company does not believe that
compliance with such regulations will adversely affect the Company's ability to
meet its operating cash requirements. The Company believes that UDCIC and UDCLH
will be able to satisfy such regulations without the need for significant
capital contributions by the Company. Applicable laws generally limit the
ability of the Company's subsidiaries to pay dividends to the extent that
required regulatory capital would be impaired.

Inflation. Management believes that the Company's operations are not materially
affected by inflation. The Company's principal costs, such as dental services
expense and part of sales and marketing expenses, are largely related to
membership levels and therefore generally vary with premium revenues.
Historically, the Company's rate of premium increases has been less than the
rate of increase in the cost of dental services in general.

                           PART II. OTHER INFORMATION

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

The only matter submitted to a vote of the stockholders of the Company during
the current fiscal year was the uncontested election of directors voted upon at
the Company's annual meeting of stockholders held on April 18, 1997. A total of
7,425,725 shares were represented at the annual meeting in person or by proxy,
including 202 shares that abstained from voting for any director nominee. The
1,499,691 (16.8% of the outstanding shares) non-votes (nominees or beneficial
holders that did not respond to the proxy solicitation) were not considered as
"represented" at the meeting and were not counted in tabulating the results of
the election. The following is a tabulation of the votes:

<TABLE>
<CAPTION>
                                                                                                  VOTES REPRESENTED
                                                AFFIRMATIVE VOTES       PERCENTAGE OF VOTES        AT MEETING BUT
                                                   RECEIVED FOR            REPRESENTED AT            WITHHELD OR
              NAME OF NOMINEE                        NOMINEE                  MEETING                 ABSTAINED
-------------------------------------------    --------------------    ----------------------   ---------------------
<S>                                                  <C>                      <C>                         <C>
Jack R. Anderson...........................          7,425,523                99.997%                     202
George E. Bello............................          7,425,523                99.997%                     202
James E. Buncher...........................          7,425,483                99.997%                     242
William H. Longfield.......................          7,425,523                99.997%                     202
Robert J. Nettinga.........................          7,423,783                99.974%                   1,942
James Ken Newman...........................          7,425,523                99.997%                     202
Donald E. Steen............................          7,425,458                99.996%                     267
William H. Wilcox..........................          7,425,083                99.991%                     642
</TABLE>

ITEM 6.   EXHIBITS AND REPORTS ON FORM 8-K

(a)  List of Exhibits

3.01*     Restated Certificate of Incorporation of the Company (filed as
          Exhibit 3.01 to the Company's Registration Statement on Form S-1,
          Registration Number 33-94356 (the "1995 Registration Statement") and
          incorporated herein by reference).
3.02*     Amended and Restated Bylaws of the Company (filed as Exhibit 3.02 to 
          the 1995 Registration Statement and incorporated herein  by 
          reference).
4.01*     Specimen Common Stock Certificate (filed as Exhibit 4.01 to the 1995 
          Registration Statement and incorporated herein by reference).
11.**     Statement regarding computation of per share earnings.
27.1**    Financial Data Schedule

-------------------------------

*       Previously filed.
**      Filed herewith.

(b)  The Company filed a report on Form 8-K on January 31, 1997 to report the 
     acquisition of United.


                                    11 of 12
<PAGE>   12




                                   SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.


                                       UNITED DENTAL CARE, INC.
                                   -------------------------------------
                                             (Registrant)


Date:      April 30, 1997           /s/       MARK E. PAPE
                                   -------------------------------------
                                    Mark E. Pape, Senior Vice President
                                          Chief Financial Officer


                                    12 of 12
<PAGE>   13




                            UNITED DENTAL CARE, INC.

                               INDEX OF EXHIBITS


Exhibit No.

    3.01*     Restated Certificate of Incorporation of the Company (filed as
              Exhibit 3.01 to the Company's Registration Statement on Form S-1,
              Registration Number 33-94356 (the "1995 Registration Statement")
              and incorporated herein by reference).
    3.02*     Amended and Restated Bylaws of the Company (filed as Exhibit 3.02 
              to the 1995 Registration
              Statement and incorporated herein by reference).
    4.01*     Specimen Common Stock Certificate (filed as Exhibit 4.01 to the 
              1995 Registration Statement and incorporated herein by reference).
   11.0**     Statement regarding computation of per share earnings.
   27.1**     Financial Data Schedule


-------------------------------

*    Previously filed.
**   Filed herewith.