FORM 10-K(SB)
       SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549
     Annual Report Pursuant to Section 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 (Fee Required)

     For the fiscal year ended June 30, 2002

[   ]     TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
     OF THE SECURITIES EXCHANGE ACT OF 1934 (No Fee Required)

     For the transition period from ____________ to _____________

                             Commission File No.  0-18113


                      TENET INFORMATION SERVICES, INC.
          (Exact name of registrant as specified in its charter)


               UTAH                               87-0405405
    (State or other jurisdiction               (I.R.S. Employer
  of incorporation or organization)          Identification No.)

     53 West 9000 South
     Sandy, Utah                                    84070
(Address of principal executive office)          (Zip Code)

        Registrant's telephone number, including area code (801) 568-0899

          Securities Registered Pursuant to Section 12 (g) of the Act:

                                  Common Stock
                                (Title of Class)

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 and 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.  (1)  Yes X  No     (2) Yes X   No
                                            ---   ---         ---    ---

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

State issuer's revenues for its most recent fiscal year:          $ 717,005

State the aggregate market value of voting stock held by non-affiliates computed
by reference to the price at which the common equity was sold, or the average
bid and asked price of such common equity, as of a specified date within the
past 60 days. No current market value for common stock within last 60 days.

The number of shares outstanding of the Registrant's Common Stock as of
September 27, 2002 was 19,336,205.


<PAGE>


                              TABLE OF CONTENTS
                                                                        Page #

PART I

     Item 1         Business                                               1

     Item 2         Properties                                             4

     Item 3         Legal Proceedings                                      5

     Item 4         Submission of Matters to a Vote of Security Holders    5

PART II

     Item 5         Market for the Registrant's Common Equity
                     and Related Stockholder Matters                       5
     Item 6         Management's Discussion and Analysis of Financial
                     Condition and Results of Operation                    5

     Item 7         Financial Statements                                   8

     Item 8         Changes In and Disagreements with Accountants on
                     Accounting and Financial Disclosure                   9


PART III

     Item 9         Directors, Executive Officers, Promoters and
                     Control Persons of the Registrant: Compliance with
                     Section 16)a) of the Exchange Act                     9

     Item 10   Executive Compensation                                     11

     Item 11   Security Ownership of Certain Beneficial
                Owners and Management                                     13

     Item 12   Certain Relationships and Related Transactions             14


PART IV

     Item 13   Exhibits and Reports on Form 8-K                           15


SIGNATURES                                                                16

EXHIBITS                                                              Attached


<PAGE>


ITEM 1:   BUSINESS

General

The Company was incorporated on February 24, 1984 by employees of Telemed who
organized the buyout of Telemed's pulmonary and respiratory care information
services business.  In March 1984, the Company purchased that business for cash
and a promissory note.


By 1988, annual revenue had grown to $2.4 million and the Company completed an
initial public offering of its common stock through Schneider Securities in
1989.  By September 15, 1989, 23 hospitals were using the Company's respiratory
care management systems (then referred to as "RCMS") and the Company employed 23
full and part-time employees.

Over time, with improvements in computer hardware and performance, the mini
computer based RCMS product became dated. The last RCMS sale was made in January
1991. In 1994 a new senior management team was put in place.

In the following year, the Company acquired two complimentary businesses (see
Acquisitions).  Based on Y2K issues, a business decision was made to discontinue
the RCMS product line.

Acquisitions:

International Healthcare Consulting Group Acquisition

Effective September 5, 1995, the Company acquired certain assets of The
International HealthCare Consulting Group ("HCG").  The assets acquired included
certain accounts receivable, equipment, software products and other intangible
assets.  In exchange for the assets acquired, the Company agreed to issue 50,000
shares of its common stock and assume $30,000 of debt.

Since 1986 HCG has provided healthcare institutions, mainly hospitals, with
professional high-quality, cost effective, consulting services, which produce a
more efficient, lower cost care delivery model while maintaining the highest
quality of care standards.  Consulting services are provided in the following
areas:

..    Nurse Staffing and Patient Classification
..    Cost Benefit Analysis for Computerized Patient Records (CPR)
..    Productivity
..    Cost Accounting
..    Operations Assessment
..    Modeling and Simulation


                                        1


National Microcomputer Corporation Merger

On September 29, 1995, the Company and National MicroComputer Corporation
("NMC") approved the terms of an Agreement and Plan of Reorganization (the
"Agreement") pursuant to which NMC was merged with and into Tenet Merger
Subsidiary, Inc., a wholly owned subsidiary of the Company incorporated for the
purpose of effecting the merger.  NMC developed and marketed an integrated
information management/patient tracking system (EDNet) designed specifically for
use in emergency departments.


NMC was founded in California in 1979 and originated the concept of a
computerized patient tracking and information management system dedicated to
emergency department operations.  The Emergency Department Network ("EDNet") was
first developed in 1989.  Early versions ran on highly proprietary hardware and
software with limited flexibility and functionality.


In 1991, the software was completely redesigned for IBM compatible PCs and
utilized standard operating systems and database software.


EDNet, is an integrated information management/patient tracking system designed
specifically for use in emergency departments.  It is a collaborative
information management tool used in real time by clinical and management
personnel to collect data and provide information at the most efficient points
in the patient care process.  Demographic information is collected at
registration either by way of an interface from the main hospital information
system registration function or directly through the EDNet registration process.
Clinical flow information is generated and recorded through the tracking system
and at the time of discharge through use of custom configured discharge
routines.  Auxiliary data may be added at any
time.  Information is stored in linked relational databases, which are
completely open and non-proprietary, accessible both within the system and
through other compatible applications on a shared basis.

EDNet is currently in its sixth release, (EDNet) as a Windows 95/98/NT/2000
compliant product.  Recent enhancements include discharge aftercare instructions
database, a user-sortable patient tracking display and the development of triage
assessment protocols, auto faxing, and auto paging. EDNet for Windows was
released in the spring of 1998.


Marketing

The Company's marketing efforts are directed at broadening the market for its
products by increasing awareness among directors of emergency departments and
chief information officers.  In support of its sales efforts, the Company
conducts programs that include advertising, direct mail, trade shows and ongoing
customer communications programs.  The Company also keeps its customers informed
of advances in the field through e-mail and other mailings.  The Company
maintains a Web site on the Internet that provides Company and product
information for its products.  (www.Tenetinfo.com).

The position of Vice President of Sales is vacant and is currently being filled
by the Chief Operating Officer of the company.


                                        2


As of June 30, 2002, the software division of the Company had sold its EDNet
product to 24 emergency department and urgent care sites.  All sites have annual
maintenance contracts for continued support and updates.  As of June 30, 2002
the Company was in the process of installing EDNet upgrades at 5 DOS clients.

In response to client requests the company has enhanced its basic EDNet software
to other hospital applications.  ARCNet, which is used in same day surgery and
ambulatory care departments and IntelliChartr which helps to make hospital
staffing decisions based on patient care needs have been developed and
installed.

The Consulting division provides consulting support to major hospitals
throughout the country.  These services consist primarily of cost benefit
evaluations, patient classification for nursing, and productivity management for
all other departments.  Consulting services are charged on a negotiated fee
basis

Customers receive maintenance support from a staff of experienced customer
specialists via a telephone "hot line".  Annual maintenance contracts are
required at each site and are provided for a fixed price.  Included in the
annual maintenance contracts are periodic product upgrades and feature/function
enhancements.  New modules are furnished at an additional cost.

EDNet  Product Development

Development efforts are focused on the enhancement of the EDNet product.
Research is being conducted on the integration of nursing and physician
documentation.  Voice recognition and radio frequency are being investigated as
possible product enhancements.  An inpatient nursing application,
(IntelliChart), building upon existing EDNet software, is being beta-tested at a
major consulting client site.  IntelliChart utilizes the main library set of
EDNet to provide inpatient-nursing units with a real time patient tracking
system.  The primary focus of IntelliChart is to provide the nursing staff an
automated methodology to determine patient dependency.  Patient dependency is
determined based upon the patient's care needs and is translated into staffing
requirements on shift and staff skill level basis.

EDNet is now an enterprise level solution, which has greatly enhanced the
durability of the product by being able to serve at either single or multi
location hospitals.  A majority of the development effort has been expended
on this enhancement.

The software divisions future success will depend on its ability to continue to
enhance its current product line and to continue to develop and introduce new
products that keep pace with competitive product introductions and technological
developments, satisfy diverse and evolving customer requirements and otherwise
achieve market acceptance.

Protection of Proprietary Rights

The Company holds a registered trademark on the name "IntelliChart".  In
addition, the Company expects to seek certain patent, trademark and/or copyright


                                        3


protection in the further development of its new products, if appropriate.  The
Company has entered into non-disclosure agreements with employees, consultants
and customers to protect its proprietary technology.

Capital Stock

The Company's Articles of Incorporation authorize the board of directors,
without shareholder approval, to issue up to 1,000,000 shares of preferred stock
with such rights and preferences as the board of directors may determine in its
discretion.  The board of directors has the authority to issue shares of
preferred stock having rights prior to the common stock with respect to
dividends, voting and liquidation.

The current authorized common stock of the Company is 100,000,000 shares.

Employees

At June 30, 2002, the Company employed seven full-time employees, one parttime
employee and several independent service contractors.  The number of employees
and their responsibilities are as follows:  three professional, three technical,
and two administrative.

Competition

The health care information systems industry is highly competitive.  There are
many companies of considerable size and expertise that could enter the Company's
market for emergency management systems.  The Company is aware of competing
emergency department information systems.

The Company's products target the emerging market for computerized patient and
data management products in hospital and urgent care settings.

The Company faces direct competition in the emergency department market from
several other firms.  Many of these competitors have significantly greater
resources, name recognition and larger installed bases of customers than the
Company.

As a result, these potential competitors may be able to devote greater resources
to the development, promotion and sale of their products than the Company.

The Company believes that it is imperative that it be competitive in service and
product performance.  The Company stresses customer service wherever the product
is placed.

With the enhancements to the capabilities of networks, the Company has
determined it must adopt new technology in order to continue to compete
effectively in the large hospital marketplace.  As discussed in Product
Development, the Company is further developing and converting its products. This
effort is expected to enable the Company to compete in this marketplace.


                                        4


ITEM 2:   PROPERTIES

The Company's headquarters were relocated to Sandy, Utah in March 2001.  The
Company leases approximately 1,920 square feet of office space at a total cost
of approximately $2,350 per month.  This is pursuant to a lease that expires on
November 9, 2004.

ITEM 3:   LEGAL PROCEEDINGS

The Company is not a party to any material pending legal proceedings, nor to the
knowledge of management, is any litigation threatened against the Company.

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

     None

PART II

ITEM 5:   MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER
          MATTERS

The Company's Common Stock began trading in the over-the-counter market in May
1989.  Prices were quoted on the National Association of Security Dealers
Automated Quotation System ("NASDAQ") under the symbol "TISI" until November 1,
1991 at which time the Company was suspended from NASDAQ for untimely filings
and inadequate financial resources.  On September 3, 1996, the symbol was
changed to "TISV."

Just prior to its suspension from NASDAQ on November 1, 1991, the reported
closing bid and asked prices of the Company's Common Stock were $.03125 and
$.0625, respectively.  In 1996 limited public trading of the Company's Common
Stock resumed with price quotations available on the over the counter "bulletin
board".  During fiscal year ended June 30, 2002 a limited number of shares
traded on the bulletin board market at a price range of $0.05 to $0.15.

In March, the Company was advised that the bulletin board listing had been
suspended pending completion of the appropriate filings.

The number of shareholders of record for the Company's Common Stock as of June
30, 2002 was 314, which include depositories and broker/dealers who hold shares
of Common Stock in "nominee" or "street" names.


                                        5


ITEM 6:   MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS

General

The following discussion contains forward-looking statements regarding the
company, its business, prospects and results of operations that are subject to
risks and uncertainties posed by many factors and events that could cause the
company's actual business, prospects and results of operations to differ
materially from those that may be anticipated by such forward-looking
statements.  Factors that might cause such differences include, but are not
limited to, those discussed herein as well as those discussed under the captions
"risk factors" and "business" as well as those discussed elsewhere in this
prospectus.  Readers are cautioned not to place undue reliance on these forward-
looking statements, which speak only as of the date of this report.  The Company
undertakes no obligation to revise any forward-looking statements in order to
reflect events or circumstances that may subsequently arise.  Readers are urged
to carefully review and consider the various disclosures made by the company in
this report and in the company's other reports filed with the securities and
exchange commission that attempt to advise interested parties of the risks and
factors that may affect the company's business.

Results of Operations

Fiscal 2002 Compared with Fiscal 2001

During fiscal year 2002, the Company had revenues of $717,005, which represented
an increase of $175,908 or 33% from revenues of $541,097 for the prior fiscal
year.  The following table presents the components of revenues for fiscal 2002
and 2001.

                                 ACTUAL
REVENUES           FY 02         FY 01      Increase  % Change
                 --------      ---------    --------  --------
EDNet Systems    $467,542      $ 419,096    $ 48,446     12%
Consulting       $249,463      $ 122,001    $127,462     104%
Total            $717,005      $ 541,097    $175,908     33%

The following table details cost of revenue by product, comparing the prior
fiscal year as shown on financials.

                        2002         2001      Change    %Change
                      --------     --------   ---------  -------
EDNet System and      $225,205     $245,461   $(20,256)
Consulting            $139,927     $ 98,160   $ 41,767
Total                 $365,132     $343,621   $ 21,511     6%

Cost of revenues increased to $365,132, up 6% for fiscal year 2002 compared with
$343,621 for the previous fiscal year.  Costs of revenues related to the EDNet
System for fiscal year 2002 were $225,205 giving the system revenue products a
gross margin of 52%.  This compares to cost of revenues of $245,461 with a gross
margin of 41% for the prior twelve-month period. Overall gross profit for the


                                        6


fiscal year 2002was 49% compared to 36% for the prior year.  70% of this profit
improvement was due to increased revenue while 30% was due to improved margins.

Selling, general and administrative expenses increased by $9,473 or 6%, to
$178,015 for fiscal year 2002 compared with $168,542 for the previous fiscal
year.  Software development expenses were unchanged at $104,700 for fiscal year
2002 from fiscal 2001.

As a result of the above factors, the net gain from operations was $69,200 for
fiscal year 2002 compared with loss of $(75,862) for fiscal year 2001.
Interest expense increased to $20,446 from $15,610 for the prior fiscal year.
The net gain was $70,890 or $.00 per share for fiscal year 2002 compared with a
net loss of $(90,515) or ($0.00) per share for fiscal year 2001.

Liquidity and Capital Resources

The Company's cash position increased from $37,022 to $78,585 during its fiscal
year 2002.  The Company had a working capital deficit of $238,431 as of June 30,
2002, as compared with a deficit of $304,192 as of June 30, 2001. Operating
activities provided $62,915 for the fiscal year ended June 30, 2002 as compared
to providing $26,132 in the corresponding period of the prior fiscal year.

The Company's investing activities used $17,977 of cash for the current
year compared to using $3,720 in the corresponding period of the prior fiscal
year.

There were no related party advances to the Company during the current year
ended June 30, 2002.

While a portion of the current liabilities, approximately $200,000, is owed to
present officers and/or directors, there can be no assurances that these
officers/directors will not seek payment in the near term.

Inflation has not had a significant impact on the Company's operations.

Item 7A:  Market Risk Sensitive Instruments
          N/A


                                        7


ITEM 7:   FINANCIAL STATEMENTS



                 TENET INFORMATION SERVICES, INC. AND SUBSIDIARY


                                TABLE OF CONTENTS

                                                                 Page

     Report of Independent Certified Public Accountants           F-1

     Consolidated Financial Statements:

          Consolidated Balance Sheet - June 30, 2002              F-2

          Consolidated Statements of Operations for the Years
             Ended June 30, 2002 and 2001                         F-3

          Consolidated Statements of Shareholders' Deficit for
             the Years Ended June 30, 2001 and 2002               F-4

          Consolidated Statements of Cash Flows for the Years
             Ended June 30, 2002 and 2001                         F-5

     Notes to Consolidated Financial Statements                   F-6


<PAGE>


HANSEN, BARNETT & MAXWELL                        (801) 532-2200
A Professional Corporation                      Fax (801) 532-7944
CERTIFIED PUBLIC ACCOUNTANTS               5 Triad Center, Suite 750
                                        Salt Lake City, Utah 84180-1128
                                                www.hbmcpas.com



                  REPORT OF INDEPENDENT CERTIFIED PUBLIC ACOUNTANTS



To the Board of Directors and the Stockholders
Tenet Information Services, Inc.


We have audited the accompanying consolidated balance sheet of Tenet Information
Services, Inc. (a Utah corporation) and subsidiary as of June 30, 2002, and  the
related  consolidated statements of operations, shareholders' deficit  and  cash
flows for the years ended June 30, 2002 and 2001. These financial statements are
the responsibility of the Company's management. Our responsibility is to express
an opinion on these financial statements based on our audits.

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

In  our opinion, the consolidated financial statements referred to above present
fairly,  in  all material respects, the financial position of Tenet  Information
Services,  Inc.  and subsidiary as of June 30, 2002, and the  results  of  their
operations  and their cash flows for the years ended June 30, 2002 and  2001  in
conformity with accounting principles generally accepted in the United States.



                                              /s/  HANSEN, BARNETT & MAXWELL

Salt Lake City, Utah
August 16, 2002

                                        F-1



                 TENET INFORMATION SERVICES, INC. AND SUBSIDIARY
                           CONSOLIDATED BALANCE SHEET
                                  JUNE 30, 2002
                                     ASSETS


Current Assets
   Cash                                                    $    78,585
   Accounts receivable, net of allowance for
     doubtful accounts of $7,500                                95,430
   Prepaid expenses                                              4,300
   Work performed in excess of billings                         20,631

       Total Current Assets                                    198,946

Furniture, Fixtures and Equipment                              131,824
   Less: accumulated depreciation                             (112,887)
                                                           -----------
                                                                18,937
                                                           -----------

Other Assets, Net                                                3,675
                                                           -----------

Total Assets                                               $   221,558
                                                           ===========
             LIABILITIES AND SHAREHOLDERS' DEFICIT

Current Liabilities
   Accounts payable                                       $    117,977
   Accrued expenses                                             73,238
   Accrued interest                                              7,402
   Deferred revenue                                            153,599
   Billings in excess of work performed                         38,485
   Related party debt                                           46,676
                                                           -----------
       Total Current Liabilities                               437,377
                                                           -----------

Shareholders' Deficit
   Preferred stock, $0.01 par value; 1,000,000
      shares authorized, no shares issued                            -
   Common stock, $0.001 par value; 100,000,000
      shares authorized, 19,336,205 shares issued
      and outstanding                                           19,336
   Additional paid-in capital                                4,853,896
   Accumulated deficit                                      (5,089,051)
                                                           -----------
       Total Shareholders' Deficit                            (215,819)
                                                           -----------

Total Liabilities and Shareholders' Deficit                $   221,558
                                                           ===========

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

                                        F-2


                 TENET INFORMATION SERVICES, INC. AND SUBSIDIARY
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                   FOR THE YEARS ENDED JUNE 30, 2002 AND 2001


                                                           2002       2001
                                                      ----------   ----------
Revenues
  Software license fees and maintenance               $  467,542   $  419,096
  Consulting services                                    249,463      122,001
                                                      ----------   ----------
     Total Revenues                                      717,005      541,097

Cost of Revenues
  Software license fees and maintenance                  225,205      245,461
  Consulting services                                    139,927      98,160
                                                      ----------   ----------
     Total Cost of Revenues                              365,132      343,621
                                                      ----------   ----------

Gross Profit                                             351,873      197,476

Operating Expenses
  Selling, general and administrative                    178,015      168,542
  Software development                                   104,658      104,796
                                                      ----------   ----------
     Total Operating Expenses                            282,673      273,338
                                                      ----------   ----------

Income (Loss) From Operations                             69,200      (75,862)

Other Income and (Expense)
  Interest income                                            511            -
  Miscellaneous income                                         -          957
  Interest expense                                       (20,446)     (15,610)
  Gain on forgiveness of debt                             21,625            -
                                                      ----------   ----------
     Net Other Income (Loss)                               1,690      (14,653)
                                                      ----------   ----------

Net Income (Loss)                                     $   70,890   $  (90,515)
                                                      ==========   ==========

Basic and Diluted Earnings (Loss) Per Share           $        -   $        -

Weighted Average Number of Common Shares
   Used in Per Share Calculation                      19,065,892   19,065,892
                                                      ==========   ==========

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

                                        F-3


                 TENET INFORMATION SERVICES, INC. AND SUBSIDIARY
                CONSOLIDATED STATEMENTS OF SHAREHOLDERS' DEFICIT
                   FOR THE YEARS ENDED JUNE 30, 2001 AND 2002


<TABLE>
<CAPTION>

                                  Common Stock
                            ------------------------   Additional
                               Shares                   Paid-In     Warrants    Accumulated
                               Issued      Amount       Capital    Outstanding    Deficit      Total
                            -----------  -----------  -----------  -----------  -----------  -----------
<S>                        <C>          <C>          <C>          <C>          <C>          <C>
Balance, June 30, 2000       19,065,892  $    19,066  $ 4,843,476  $     7,987  $(5,069,426) $  (198,897)

Expiration of warrants                -            -        7,987       (7,987)           -            -

Net loss                              -            -            -            -      (90,515)     (90,515)
                            -----------  -----------  -----------  -----------  -----------  -----------

Balance, June 30, 2001       19,065,892       19,066    4,851,463            -   (5,159,941)    (289,412)

Shares issued to director
 for services                   270,313          270        2,433            -            -        2,703

Net income                            -            -            -            -       70,890       70,890
                            -----------  -----------  -----------  -----------  -----------  -----------

Balance, June 30, 2002       19,336,205  $    19,336  $ 4,853,896  $         -  $(5,089,051) $  (215,819)
                            ===========  ===========  ===========  ===========  ===========  ===========
</TABLE>


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

                                        F-4



                 TENET INFORMATION SERVICES, INC. AND SUBSIDIARY
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                   FOR THE YEARS ENDED JUNE 30, 2002 AND 2001


                                                         2002         2001
                                                      ----------   ----------

Cash Flows From Operating Activities
  Net income (loss)                                   $   70,890   $  (90,515)
  Adjustments to reconcile net income (loss) to net
    cash from operating activities:
     Depreciation                                         10,145       10,407
     Stock issued for services                             2,703            -
     Gain on forgiveness of debt                         (21,625)           -
     Change in assets and liabilities
       Accounts receivable                               (10,797)      65,908
       Deposits                                                -       (2,250)
       Prepaid expenses                                   (2,300)       3,609
       Accounts payable                                  (22,059)       4,458
       Accrued liabilities                               (27,522)      45,070
       Deferred revenue                                   45,001      (20,352)
       Work performed in excess of billings                5,819       (6,910)
       Billings in excess of work performed               12,660       16,707
                                                      ----------   ----------
     Net Cash Provided By Operating Activities            62,915        26,132
                                                      ----------   ----------

Cash Flows From Investing Activities
  Acquisition of furniture, fixtures and equipment       (17,977)      (3,720)
                                                      ----------   ----------
     Net Cash Used In Investing Activities               (17,977)      (3,720)

Cash Flows From Financing Activities
  Principal payments on short term debt                   (3,375)           -
                                                      ----------   ----------
     Net Cash Used In Financing Activities                (3,375)           -
                                                      ----------   ----------

Net Increase In Cash                                      41,563       22,412

Cash at Beginning of the Year                             37,022       14,610
                                                      ----------   ----------

Cash at End of the Year                               $   78,585   $   37,022
                                                      ==========   ==========
Supplemental Disclosures of Cash
   Flow Information:
  Cash paid for interest                              $    1,625   $    1,396
                                                      ==========   ==========
Non-Cash Investing and Financing Activities
  Disposal of furniture, fixtures and equipment       $   20,387   $   18,623
                                                      ==========   ==========

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

                                        F-5



                 TENET INFORMATION SERVICES, INC. AND SUBSIDIARY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


NOTE 1--NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

     Organization  -  Tenet  Information  Services,  Inc.  ("Tenet"),   a   Utah
     corporation,  designs  and  markets  a computer-based  medical  and  health
     information  system related primarily to emergency departments (the  "EDNet
     System"). During fiscal 1996, Tenet expanded its operations by merging with
     National Microcomputer Corporation ("NMC") and acquiring certain assets  of
     The  International Healthcare Consulting Group, Inc. ("HCG"). NMC  designed
     and  marketed the integrated information management/patient tracking system
     for  use in emergency departments of hospitals and urgent care centers (the
     "EDNet   System").   HCG  has  provided  healthcare  institutions,   mainly
     hospitals, with consulting services to assist the institutions in achieving
     a  more  efficient,  lower cost care delivery model while  maintaining  the
     highest quality of care standards.

     Tenet  and  its wholly owned subsidiary, NMC, (collectively, "the Company")
     sell and lease computer software license rights to hospitals throughout the
     United  States.  In addition, the Company sells maintenance  contracts  for
     these information systems. Substantially all of the Company's revenues  are
     generated from hospitals and therefore, the Company's financial performance
     is  partially  dependent  upon the viability  of  the  healthcare  economic
     sector.

     The  Company  is  subject to various risks associated with companies  in  a
     similar  stage  of  operations  including dependence  on  key  individuals,
     potential  competition from larger and more established companies  and  the
     need to obtain adequate sources of financing.

     Concentration of Risk - Sales to major customers are defined as revenues to
     any  one  customer which exceeds 10% of total sales. During the year  ended
     June  30, 2002, the Company had revenues from two customers which accounted
     for  44%  of  the Company's total revenue. The risk of loss of these  major
     customers subjects the Company to the possibility of decreased revenues.

     Principles  of  Consolidation  -  The accompanying  consolidated  financial
     statements  include the accounts of Tenet and its wholly owned  subsidiary,
     NMC.  All  significant intercompany transactions and account balances  have
     been eliminated in consolidation.

     Use  of  Estimates  in  the  Preparation  of  Financial  Statements  -  The
     preparation   of   financial  statements  in  conformity  with   accounting
     principles  generally  accepted in the United States  of  America  requires
     management  to  make  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.


                                        F-6


     Revenue Recognition - The Company recognizes revenue in accordance with the
     provisions  of Statement of Position No. 91-1 Software Revenue  Recognition
     as follows:

     Revenues related to the EDNet System consist of sales of software licenses,
     installation of information systems and related software customization  and
     enhancements.  In  addition, revenues are generated  from  annual  software
     support  and  maintenance.  Installation revenues  are  recognized  on  the
     percentage  of  completion method measured by completion and acceptance  of
     contracted  milestones. The asset "work performed in  excess  of  billings"
     represent  costs  incurred and revenues earned in  excess  of  billings  on
     uncompleted contracts. The liability "billings in excess of work performed"
     represents billings in excess of costs incurred and revenue recognized.

     Revenues  from annual software and maintenance are recognized ratably  over
     the term of each contract. Amounts billed in advance of revenue recognition
     for software and maintenance are recorded as deferred revenue.

     Revenues  from  consulting services are recognized when the  services  have
     been provided.

     Furniture,  Fixtures and Equipment - Furniture, fixtures and equipment  are
     stated  at  cost.  Depreciation is computed using the straight-line  method
     over  the estimated useful lives of the related assets, generally 3  to  10
     years.  Depreciation expense was $10,145 and $10,407 for the periods  ended
     June  30, 2002 and 2001, respectively. Maintenance and repairs are  charged
     to   expense  as  incurred  and  major  improvements  or  betterments   are
     capitalized.  Gains or losses on sales or retirements are included  in  the
     statement of operations in the year of disposition. Furniture, fixtures and
     equipment  include  $128,105 of computer equipment used in  operations  and
     $3,719 of furniture, fixtures and other equipment at June 30, 2002.

     Software  Development Costs - Costs incurred in creating computer  software
     products are charged to operations as software development expense prior to
     the  development of a detailed program design or a working model. After the
     detailed program design or working model is established, costs of producing
     product  masters are capitalized as software development costs. The Company
     had no capitalized software costs at June 30, 2002.

     Costs  of  maintenance and customer support are recognized as expense  when
     the  related  revenue  is  recognized or when  those  costs  are  incurred,
     whichever occurs first.

     Impairment  -  The  Company  records  impairment  losses  on  property  and
     equipment  when indicators of impairment are present and undiscounted  cash
     flows  estimated to be generated by those assets are less than the  assets'
     carrying amount.  The Company had no impaired assets at June 30, 2002.


                                        F-7

     Cash  Equivalents and Fair Value of Financial Instruments -Cash Equivalents
     include highly liquid investments with original maturities of three  months
     or less readily convertible to known amounts of cash.

     The estimated fair value of financial instruments is not presented because,
     in  Management's opinion, there is no material difference between  carrying
     amounts and estimated fair values of financial instruments as presented  in
     the accompanying balance sheet.

     Income Taxes - The Company recognizes the amount of income taxes payable or
     refundable  for  the current year and recognizes deferred  tax  assets  and
     liabilities  for  the future tax consequences attributable  to  differences
     between  the  financial statement amounts of certain assets and liabilities
     and  their  respective tax bases. Deferred tax assets and  liabilities  are
     measured using enacted tax rates expected to apply to taxable income in the
     years  those temporary differences are expected to be recovered or settled.
     Deferred tax assets are reduced by a valuation allowance to the extent that
     uncertainty exists as to whether the deferred tax assets will ultimately be
     realized.

     Stock-Based  Compensation  -  Stock-based  compensation  to  employees   is
     measured by the intrinsic value method. This method recognizes compensation
     based  on  the  difference between the fair value of the underlying  common
     stock  and  the  exercise price of the stock option on  the  date  granted.
     Compensation  relating to options granted to non-employees is  measured  by
     the fair value of the options, computed by an option-pricing model.

     Warranty  Costs  - A one-year limited warranty from date of  first  use  is
     provided  on  sales  of software licenses. The terms of  the  warranty  are
     extended  to  all  periods  where the System is covered  by  an  applicable
     Support  Agreement.   Warranty costs have not been  material  in  any  year
     presented; accordingly, these costs are expensed when incurred.

     Basic  and  Diluted  Earnings (Loss) Per Share -Basic earnings  (loss)  per
     common  share is computed by dividing net income (loss) available to common
     stockholders  by  the weighted-average number of common shares  outstanding
     during  the  period.  Diluted  earnings per share  reflects  the  potential
     dilution  which  could occur if all contracts to issue  common  stock  were
     exercised  or  converted into common stock or resulted in the  issuance  of
     common stock.  A total of 605,000 potentially issuable shares were excluded
     from the calculation of diluted income (loss) per common share at June  30,
     2002 and 2001 because the effects would be anti-dilutive.

     Recently Enacted Accounting Standards - In April 2002, the FASB issued SFAS
     No.  145. Among other provisions, this statement modifies the criteria  for
     classification  of gains or losses on debt extinguishments such  that  they
     are  not  required to be classified as extraordinary items if they  do  not
     meet  the criteria for classification as extraordinary items in APB Opinion
     No.  30,  "Reporting the Results of Operations - Reporting the  Effects  of
     Disposal  of  a  Segment  of  a  Business, and Extraordinary,  Unusual  and
     Infrequently Occurring Events and Transactions." The Company has elected to
     adopt  this  standard  during the year ended June 30, 2002.  Adopting  this
     standard had an affect on income statement classification but no effect  on
     net income for the year ended June 30, 2002.


                                        F-8


     In  July  2002,  the  FASB  issued  SFAS No.  146,  "Accounting  for  Costs
     Associated  with  Exit  or  Disposal Activities."  The  statement  requires
     companies  to  recognize costs associated with exit or disposal  activities
     when  they are incurred rather than at the date of a commitment to an  exit
     or  disposal plan. Examples of costs covered by the standard include  lease
     termination costs and certain employee severance costs that are  associated
     with  a restructuring, discontinued operation, plant closing, or other exit
     or  disposal activity. The Company will be required to apply this statement
     prospectively for any exit or disposal activities initiated after  December
     31,  2002. The adoption of this standard is not expected to have a material
     effect on the Company's financial position or results of operations.

NOTE 2- RELATED PARTY DEBT AND NOTES PAYABLE

     Related-party debt consists of the following at June 30, 2002:

      Debt payable to a related party corporation owned by an
        employee of the Company at an interest rate of 8.0%,
        unsecured, balance is due on demand.                        $  4,666

      Note payable to a company associated with a shareholder,
        at an interest rate of 8% per annum, balance is due on
        demand                                                        10,714

      Debt payable to officers/shareholders at an interest rate
        of 12%, unsecured, due on demand.                              4,860

      Note payable to an officer and shareholder, at an interest
        rate of 8%, balance due by June 30, 2003, unsecured.          26,436
                                                                    --------
          Total related party debt                                  $ 46,676
                                                                    ========

     On  November 1, 2001, the Company paid $5,000 to a creditor as  payment  in
     full  of  all obligations on an unsecured note for $25,000. After deducting
     $1,625  for  payment  of outstanding interest, $3,375 was  applied  to  the
     outstanding principal and the creditor forgave the balance due on the  note
     resulting in a one-time gain of $21,625.  In accordance with SFAS 145,  the
     gain from debt forgiveness did not meet the conditions for being classified
     as  extraordinary and therefore was included in continuing operations.   On
     June  30,  2002,  the Company issued 270,313 shares of common  stock  to  a
     director  for services in negotiating the debt settlement. The shares  were
     valued at $2,703 or $0.01 per share and were expensed.


                                        F-9


NOTE 3 - INCOME TAXES

     No  benefit for income taxes has been recorded during the years ended  June
     30,  2002  and  2001.  Certain risks exist with respect  to  the  Company's
     future  profitability,  and management has concluded  that,  due  to  these
     uncertainties,  the  related net deferred tax asset may  not  be  realized.
     Accordingly, a valuation allowance has been recorded to offset the deferred
     tax asset in its entirety. The components of the net deferred tax assets at
     June 30, 2002 are as follows:

       Deferred Tax Assets
          Tax net operating loss carry forward        $ 1,829,441
          Tax credits carry forward                         4,822
          Reserves and accrued liabilities                 51,462
                                                      -----------
       Total Deferred Tax Assets                        1,885,725
                                                      -----------
       Valuation allowance                             (1,885,725)
                                                      -----------

       Net Deferred Tax Asset                         $         -
                                                      ===========

     As  of June 30, 2002, the Company has net operating loss carryforwards  for
     federal  income  tax reporting purposes of approximately  $4,913,889  which
     will expire through 2021.

     As  of  June 30, 2002, the Company had research and development tax credits
     and  investment  tax credit carryforwards of approximately $51,462.   These
     credits will expire through fiscal 2006.

     The  following  is  a  reconciliation of the  income  tax  at  the  federal
     statutory  rate of 34% with the provision for income taxes  for  the  years
     ended June 30, 2002 and 2001:

                                                          2002         2001
                                                       ----------   ----------
       Income tax expense (benefit) at statutory rate  $   24,103   $  (30,775)
       Change in deferred tax valuation account           (50,420)      (8,247)
       (Non taxable income) /non deductible taxes           2,675        2,675
       Expired operating losses and tax credits            21,303       39,334
       State taxes, net of federal benefit                  2,339       (2,987)
                                                       ----------   ----------
       Provision for Income Taxes                      $        -   $        -
                                                       ==========   ==========


                                        F-10

NOTE 4 - STOCK OPTIONS

     During  fiscal  year  ended  June 2002, the  Board  of  Directors  did  not
     authorize the issuance of any stock options outside of the Incentive  Stock
     Option Plan to employees of the Company.

     The  Company  has adopted an incentive stock option plan and a nonqualified
     stock  option  plan. Stock options for an aggregate of  600,000  shares  of
     common  stock  may be granted under these plans. Stock options  under  both
     option  plans may be granted at a price per share not less than 100 percent
     of  the fair market value of the common stock, as determined at the date of
     grant. Employees vest in the right to exercise their options from the first
     anniversary date following the date of grant to the fifth anniversary  date
     following the date of grant. The options expire five years from the vesting
     date. Incentive stock options are forfeited unless exercised within zero to
     three  months  following  termination of employment  or  twelve  months  if
     termination is due to death or disability.

     A summary of the status of the Company's options outstanding as of June 30,
     2002 and 2001, and changes during the years then ended is presented below:

                                            For the year ended June 30,
                                             2002                 2001
                                     --------------------   -----------------
                                                Weighted            Weighted
                                                Average              Average
                                                Exercise             Exercise
                                       Shares     Price      Shares    Price
                                     --------------------   -----------------
   Outstanding at beginning of year    605,000       0.10   675,000      0.10
   Granted                                   -          -         -         -
   Forfeited                                 -          -   (70,000)     0.13
                                       -------              -------
   Outstanding at end of year          605,000       0.10   605,000      0.10
                                       =======              =======

   Options exercisable                 242,000       0.10   121,000      0.10
                                       =======              =======
   Weighted average fair value
   of options granted during
   the year                                          n/a                  n/a


     The following table summarizes information about stock options outstanding
     at June 30, 2002:

            Options Outstanding                Options Exercisable
 --------------------------------------  ----------------------------------
                Number       Weighted    Weighted     Number      Weighted
   Range of   Outstanding    Average     Average    Exercisable   Average
   Exercise       at        Remaining    Exercise       at        Exercise
   Price       6/30/02    Contract Life  Price       6/30/02       Price
 -------------------------------------- -----------------------------------
   $ 0.10      605,000      2.1 years    $ 0.10      242,000       $  0.10


     The Company applies APB Opinion 25, Accounting for Stock Issued to
     Employees, and related interpretations in accounting for its plans.
     Accordingly, no compensation cost has been recognized for its stock option
     plans. Had compensation cost for the Company's stock-based compensation
     plans been determined based on the fair value at the grant dates for awards


                                        F-11


     under those plans consistent with the method of FASB Statement 123,
     Accounting for Stock-Based Compensation, the Company's net income and
     income per share would have been increased to the pro forma amounts
     indicated below:

                                                 For the year ended June 30,
                                                      2002        2001
                                                   ---------    ---------
       Net income (loss)
          As reported                              $  70,890    $ (90,515)
          Pro forma                                   68,045      (93,514)
       Basic earnings (loss) per share
          As reported                                   0.00        (0.00)
          Pro forma                                     0.00        (0.00)
       Diluted earnings (loss) per share
          As reported                                   0.00        (0.00)
          Pro forma                                     0.00        (0.00)

     Option pricing models require the input of highly subjective assumptions
     including the expected stock price volatility. Also, the Company's employee
     stock options have characteristics significantly different from those of
     traded options, and changes in the subjective input assumptions can
     materially affect the fair value estimate. Management believes the best
     input assumptions available were used to value the options and the
     resulting values are reasonable.

NOTE 5-OPERATING LEASE

     The  Company occupies its facilities under a non-cancelable operating lease
     that  expires in October 2005. Lease expense for fiscal 2002 and  2001  was
     $26,535 and $31,745, respectively.

     Minimum future lease payments under non-cancelable operating leases  as  of
     June 30, 2002 are as follows:

          Year Ended June 30,
                2003                                     24,480
                2004                                     25,214
                2005                                      8,487


                                        F-12




ITEM 8:   CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
            FINANCIAL DISCLOSURE

On July 30, 1997 the Registrant engaged Hansen, Barnett & Maxwell ("Hansen") to
perform its audits and provide various accounting services thereafter. The
Registrant did not consult with Hansen prior to such date regarding any
reportable matter.


PART III


ITEM 9:   Directors, Executive Officers, Promoters, and Control Persons of
          the Registrant;

           Compliance with Section 16(a) of the Exchange Act
The names of the executive officers and directors of the Company, their
respective ages and positions with the Company, and the dates of their elections
to the Board of Directors or as officers are as follows:

    Name            Age  Position with The Company          Date of Election
   ------           ---  -------------------------          ----------------

Jerald L. Nelson    59   President (resigned)               December 1, 1993
                                                            (July 10, 1996)
                         Chairman of the Board              July 10, 1996
                         Director                           January 24, 1994
                         Corporate Treasurer                June 5, 2001

Frank Overfelt      59   Director                           September 29, 1995
                         Chief Operations Officer (acting)  July 10, 1996
                         President & Chief Operating
                         Officer                            August 31, 1998
                         (Resigned as COO)                  (June 5, 2001)

Donald W. Ballash   44   Chief Operations Officer           June 5, 2001
                         Corporate Secretary                June 5, 2001

Eric J. Nickerson   49   Director                           June 29, 1990

All directors hold office until the next annual meeting of shareholders of the
Company or until their successors have been elected and qualified.  The number
of authorized directors may be varied by the Board of Directors, but may not be
less than three.  Executive officers serve at the discretion of the Board of
Directors.  The directors are entitled to certain limitations on their
liabilities as directors of the Company as permitted under Utah law and as
included in the Company's Articles of Incorporation.


                                        9

The Company's stock option plans permit the administration of the plans through
a Stock Option Plan Committee, composed of at least three members of the Board
of Directors.  No such committee has been appointed, and no other committees of
the Board of Directors have been formed.

On July 10, 1996 Jerald L. Nelson resigned as President and Chief Operating
Officer and was elected Chairman of the Board of Directors.  Frank C. Overfelt
was also appointed Chief Operating Officer on an interim basis.  At a board of
directors meeting held on August 31, 1998 Frank Overfelt was elected to the
position of President and Chief Operating Officer.

On June 5, 2001 a board of directors meeting was held.  Mr. Overfelt resigned
his title of Chief Operating Officer while retaining his position as President.
The board elected Donald Ballash to the positions of Corporate Secretary and
Chief Operating Officer.  The board further elected
Jerald Nelson to the position of Corporate Treasurer.

Business Biographies

     Jerald L. Nelson.  Jerald L. Nelson has served as a director, president and
chief operating officer of the Company since December 1993. Effective July 10,
1996 Dr. Nelson was appointed Chairman of the Board of Directors, and
relinquished his position as President and Chief Operating Officer.  On June 5,
2001 the board elected Dr. Nelson to the position of Corporate Secretary.  Dr.
Nelson received his Ph.D. in Economics from North Carolina State University in
1974.  From 1974 to 1984, Mr. Nelson worked or consulted with several Fortune
500 firms, including US Industries, TransWorld Airlines, GTE, Xerox, Pitney
Bowes and General Foods.  From 1984 until December 1993, Mr. Nelson worked with
various businesses as an investment banker and business advisor.  He has also
consulted with or served on the Board of Directors of numerous Utah firms
including Arrow Dynamics, Beacon Financial, Interwest Home Medical, Gentner
Communications and One-2-One Communications, where he also served as chairman
and chief executive officer.

     Frank C. Overfelt  Frank Overfelt was elected to the Board on September 29,
1995.  At the current time, Mr. Overfelt holds the position of President.  Mr.
Overfelt has been the managing partner the International HealthCare Consulting
Group, Inc. since its inception in 1986.  He is a recognized authority in
workload measurement systems for health care institutions.  Prior to founding
the consulting company Mr. Overfelt was a senior manager in the Healthcare Cost
Accounting and Productivity Practice of Peat Martwick.  He holds an MBA from the
University of Utah.  His total healthcare experience is 23 years.

     Eric J. Nickerson.  Eric J. Nickerson has served as a director since June
of 1990.  Mr. Nickerson was a member of the faculty of the United States
Military Academy at West Point, New York from 1989 to 1993.  In June 1993, Mr.
Nickerson retired as a United States Air Force officer. Currently, Mr. Nickerson
is a private investor and directs personal accounts and two investing
partnerships:  "Third Century II" and "Z Fund."

     Donald W. Ballash.  Mr. Ballash holds the positions of Corporate
Secretary and Chief Operating Officer, Vice-President of Product Development and
Consulting and has over 19 years of experience in the health care field. He has


                                        10


specialized in management engineering at two large multi-hospital systems;
Intermountain Health Care and Kaiser Permanente.  Most recently he was a partner
in the International HealthCare Consulting Group.  He holds a B.S. Degree from
BYU.


ITEM 10:  EXECUTIVE COMPENSATION

The following table sets forth all cash compensation for services rendered in
all capacities to the Company during the fiscal years ended June 30, 2002, 2001,
and 2000 paid to (i) the Company's president and each executive officer whose
cash compensation exceeded $100,000, and (ii) all executive officers of the
Company as a group.  No executive officers salary exceeded $100,000 for the
fiscal year.


<TABLE>
<CAPTION>

                               Annual Compensation       /Long Term Compensation      /
                        --------------------------------------------------------------
                                                 /         Awards            /Payouts/
                                                 -------------------------------------
Name                    Year     Salary   Bonus   Other  Restricted Securities  LTIP  All Other
and                     ($)       ($)      ($)    Annual    Stock   Underlying  Pay-   Compen-
Principal                                        Compen-    Awards   Options/   outs   sation
Position                                           ($)                SARs(#)    ($)     ($)
-----------------------------------------------------------------------------------------------
<S>                     <C>     <C>      <C>     <C>      <C>       <C>       <C>     <C>

Frank C. Overfelt        2000    76,360    -0-     -0-       -0-      -0-      -0-      3,600
President                2001    57,270    -0-     -0-       -0-      -0-      -0-      5,325
                         2002   104,810    -0-     -0-       -0-      -0-      -0-       -0-


Jerald L. Nelson         2000      -0-     -0-      600      -0-      -0-      -0-       -0-
Chairman of the Board    2001      -0-     -0-     -0-       -0-      -0-      -0-       -0-
Corporate Treasurer      2002      -0-     -0-    1,000    2,703      -0-      -0-       -0-

Donald W. Ballash        2001    61,500    -0-     -0-       -0-      -0-      -0-       250
Chief Operating Officer  2002   102,625    -0-     -0-       -0-      -0-      -0-       -0-
Corporate Secretary

All Executive Officers

(1 person)               2000   76,360     -0-     -0-       -0-      -0-    -0-   3,600
(3 persons)              2001  118,750     -0-     -0-       -0-      -0-    -0-   5,325
(3 persons)              2002  207,434     -0-   1,000     2,703      -0-    -0-    -0-

</TABLE>

The Company also may pay discretionary cash bonuses to management and employees
based on meritorious performance.

Stock Option Plans

On October 15, 1984, the Company adopted an Incentive Stock Option Plan (the
"ISO Plan"), pursuant to which only "incentive stock options"  ("ISO's"), as
defined in the Internal Revenue Code (the "Code"), may be granted.  On the same
date, the Company adopted a Nonqualified Stock Option Plan ("NQSO Plan"),


                                        11


pursuant to which only "nonqualified stock options" ("NQSOs"), as defined in the
Code, may be granted.  Stock options for an aggregate of 600,000 shares of
common stock may be granted under both Plans.  ISOs may be granted under the ISO
Plan to employees owning less that 10% of the Company's voting stock (as defined
by Sections 422A and 425 of the Code).  NQSOs may be granted under the NQSO Plan
to employees who are ineligible to receive options under the ISO Plan.

Stock options may be granted under the Plans at a price per share not less than
100% of the "fair market value" (as defined by the Plans) of the common stock on
the date of grant.

The Plans limit grants of stock options to any one employee to 60,000 shares of
stock per plan year, with an aggregate option price ceiling of $100,000 under
the ISO Plan in any year.  Each stock option, unless sooner terminated, expires
five years from the "date of effectiveness", which is three years from the date
of grant.

ISOs are exercisable until three months following termination of employment
(twelve months if termination is due to death or disability).  Termination of
employment for any reason does not affect the exercisability of NQSOs,
regardless of whether the option's effective date has been reached.  Under both
Plans, options are exercisable during an optionee's lifetime only by such
optionee and are transferable only upon death by the laws of decent or
distribution.

The Board of Directors has the right to modify or amend the Plans at any time,
provided, however, that, unless ratified by the Company's shareholders, no
amendment will be effective which (i) changes the number of shares which may be
issued under the Plans, (ii) changes the option price, other than the manner of
determining the fair market value of the shares, (iii) changes the periods
during which options may be granted or exercised, (iv) changes the provisions
relating to the determination of employees to whom options may be granted and
the number of shares to be covered by such options, or (v) changes the
provisions relating to adjustments to be made upon changes in capitalization.
Shareholder action is also required to terminate the Plans.

As of August 1, 1999 the company had granted 830,000 options to key employees
exercisable at the rate of $.10 per share.  205,000 of these options were
forfeited during the fiscal year end at June 30, 2000 and an additional 70,000
were forfeited during the year ended June 30, 2001. Only 605,000 remained
outstanding as of September 27, 2002  These options were issued outside of the
Incentive Stock Option Plan and authorized by the Board of Directors.


                                        12


ITEM 11:  SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

The following table sets forth the holdings of common stock as of September 27,
2002  (i) by each person who held of record, or was known by the Company to own
beneficially, more than five percent of the outstanding common stock of the
Company, (ii) by each Director, and (iii) by all Directors and officers as a
group.  Unless otherwise indicated, all shares are owned directly.  The
percentage calculations for any individual stockholder assume that all
outstanding options and warrants held by that stockholder have been exercised in
full and that no other stockholder has exercised any outstanding options or
warrants.


Name and Address of Beneficial Owner as of September 27, 2002

                              Common (1)        Percent of Shares Outstanding
                              ----------        -----------------------------

Michael R. Carlston 2         4,673,977                     24.17%
Dennis C. Peterson 3          4,220,442                     21.83%
Mark Oldroyd 4                3,975,559                     20.56%
Scott Staker 5                3,975,559                     20.56%
T-Acquisition 6               3,775,559                     19.53%
Eric J. Nickerson 7           2,173,500                     11.24%
Third Century II 7            2,173,500                     11.24%
Jerald L. Nelson 12           1,542,326                      7.98%
Donald W. Ballash 11          1,226,429                      6.34%
Robert Smith 8                1,166,246                      6.03%
Richard Gwinn 9               1,004,920                      5.20%
Frank Overfelt 10               670,204                      3.47%

All Officers and
   Directors                  5,612,459                     29.03%

1.  Based on 19,336,205 common shares outstanding and options to acquire 605,000
shares of Common Stock at $0.10 per share.

2.  The shares indicated include:  (i) 1,734,731 shares of Common Stock
beneficially owned by Mr. Carlston (including shares owned by his wife and held
in trust for the benefit of his children); (ii) 3,775,559 shares of Common Stock
held by T-Acquisition. Mr. Carlson's address is 855 Harwood Dr., Murray, UT
84107

3.  Includes 444,883 shares of Common Stock beneficially owned by Mr. Peterson,
and 3,775,559 shares of Common Stock  held by T Acquisition L.L.C. Mr.
Peterson's address is 2508 W. Bueno Vista Dr., W. Jordan, UT 84088

4.  Includes 200,000 shares of Common Stock beneficially held by Mr. Oldroyd,
including shares held in trust for the Violet Johnson Brown Family Trust. Also
includes 3,775,559 shares of Common Stock held by T-Acquisition. Mr. Oldroyd
address is 55 North 800 West, Provo, UT 84601

5.  Includes 200,000 shares of Common Stock held by Mr. Staker and also includes
3,775,559 shares of Common Stock  held by T-Acquisition. Mr. Stakers address is
880 North 98 West #9, Provo, UT 84604

6.  A Utah Limited Liability company of which Michael R. Carlston owns or
controls 56.7%, Mark Oldroyd owns or controls 32.1%, Dennis C. Peterson owns or
controls 6.4% and Scott Staker  owns or controls 4.8%.  The shares indicated
consist of 3,775,559 shares of Common Stock   The address of TAcquisition is 855
Harwood Dr., Murray, UT 84107.

7.  Includes 2,173,500 shares of Common Stock  held by Third Century Fund II.
Mr. Nickerson is Senior Partner of Third Century Fund II. Mr. Nickerson is also
a director of the Company.  Mr. Nickerson and Third Century Fund II's address is
1711 Chateau CT., Fallston, MD 21047

8.  Includes 1,166,240 shares of Common Stock held by Dr. Smith .  Dr. Smiths
address is 2291 Greer Rd., Palo Alto CA 94303

9.  Includes 1,004,920 shares of Common Stock held by Dr. Gwinn.  Dr. Gwinns
address is 304 W. Thorn, San Diego, CA 92103

10.  Includes 50,000 shares of Common Stock held by IHCG and 620,204 shares of
Common Stock held by Mr. Overfelt,  Mr. Overfelts address is 4634 So. Ledgemont
Dr., Holladay UT 84124

11.  Includes 50,000 shares of Common Stock held by IHCG, and 726,429 shares of
Common Stock held by Mr. Ballash and options to acquire 450,000 shares of Common
Stock at $0.10 per share.  Mr. Ballash's address is 9777 So. Dunsinsame Dr., So.
Jordan, UT 84095

12.  Includes 1,542,326 shares of Common Stock .. Mr. Nelsons address is 207
West Clarendon #3B, Phoenix, AZ 85013


                                        13


ITEM 12:  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

Since the beginning of the Company's last fiscal year, there have been no
transactions or series of transactions between the Company and any executive
officer, director or 5% beneficial owner of the Company's common stock in which
one of the foregoing individuals had an interest of more than $60,000.

The Company believes that all transactions between the Company and related
parties have been on terms and conditions no less favorable to the Company than
those available from third parties.  Each transaction was entered into to
provide operating capital for the Company.  All future transactions between the
Company and any related party will be on terms and conditions no less favorable
to the Company than those available from third parties and will be approved by a
majority of the Company's disinterested directors.

Section 16(a) of the Securities Exchange Act of 1934 required the Company's
directors and executive officers, and persons who own more than ten percent of a
registered class of the Company's equity securities, to file with the Securities
and Exchange Commission initial reports of ownership and reports of changes in
ownership of Common Stock and other equity securities of the Company.  Executive
officers, directors and holders of ten percent or more of the Company's equity
securities are required to furnish the Company with copies of all Section 16(a)
reports they file.  However, because of the recent mergers and conversions,
these reports have not been provided.

PART IV

ITEM 13:  EXHIBITS AND REPORTS ON FORM 8-K

(a)       The following financial statements are included in Part II Item 8:
               Report of Independent Public Accountants
               Balance Sheets as of June 30, 2002 and 2001
               Statements of Operations for the Years Ended June 30, 2002
               and 2001
               Statements of Shareholders' Equity for the Years Ended June 30,
               2002 and 2001
               Statements of Cash Flows for the Years ended June 30, 2002 and
               2001

               Notes to Financial Statements

(b)       Reports on Form 8-K

               No reports on Form 8-K have been filed by the Registrant during
               the last quarter of the period covered by this report.

(c)       Exhibits

          Exhibit 99.1   Certification under Section 906 of the Sarbanes-Oxley
                         Act (18 U.S.C. Section 1350)


                                        14


                                   SIGNATURES

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



                         TENET INFORMATION SERVICES, INC.


September 27, 2002            By: /s/ Jerald L. Nelson
                                 ----------------------
                              Jerald L. Nelson, Chairman of the Board
                              Corporate Treasurer

Pursuant to the requirements of the Securities Exchange Act of 1934, this report
has been signed below by the following person, which include the Chief Operating
Officer, and a majority of the Board of Directors, on behalf of the Company and
in the capacities and on the dates indicated:


    Signature                        Title                        Date
    ---------                        -----                       ------

/s/ Jerald L. Nelson          Director and Chairman         September 27, 2002
--------------------          Corporate Treasurer
   Jerald L. Nelson           of the Board of Directors


/s/ Donald W. Ballash         Corporate Secretary, Chief    September 27, 2002
---------------------         Operations Officer
    Donald W. Ballash


/s/ Frank C. Overfelt         Director, President           September 27, 2002
---------------------
    Frank C. Overfelt

/s/ Eric J. Nickerson         Director                      September 27, 2002
---------------------
    Eric J. Nickerson



CERTIFICATIONS

I, Frank C. Overfelt, certify that:

     1.   I have reviewed this annual report on Form 10-Ksb of Tenet
     Information Services, Inc.;

     2.   Based on my knowledge, this annual report does not contain any untrue
     statement  of a  material  fact  or  omit to  state  a  material  fact
     necessary to make the statements  made, in light of the  circumstances
     under which such  statements were made, not misleading with respect to the
     period covered by this annual report; and

     3.   Based on my knowledge, the financial statements, and other financial
     information  included in this annual report, fairly  present in all
     material respects the financial  condition,  results of operations and
     cash flows of the registrant as of, and for, the periods presented in this
     annual report.


Date: September 27, 2002

/S/  Frank C. Overfelt
--------------------------
Frank C. Overfelt
Director, President


I, Jerald L. Nelson, certify that:

     1.   I have reviewed this annual report on Form 10-Ksb of Tenet
          Information Services, Inc.;

     2.   Based on my knowledge, this annual report does not contain any
          untrue statement  of a  material  fact  or  omit to  state  a
          material fact necessary to make the statements  made, in light of
          the circumstances under which such  statements were made, not
          misleading with respect to the period covered by this annual report;
          and

     3.   Based on my knowledge, the financial statements, and other financial
          information included in this  annual  report, fairly  present in all
          material respects the financial condition, results of operations and
          cash flows of the registrant as of, and for, the periods presented in
          this annual report.

Date: September 27, 2002

/S/ Jerald L. Nelson
---------------------------
Jerald L. Nelson
Corporate Treasurer, Chairman of the Board




                                   SIGNATURES

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


                         TENET INFORMATION SERVICES, INC.


                    By   /s/  Jerald L. Nelson
                         ________________________
                         Jerald L. Nelson, Chairman of the Board


Pursuant to the requirements of the Securities Exchange Act of 1934, this report
has been signed below by the following person, which include the Chief Operating
Officer, and a majority of the Board of Directors, on behalf of the Company and
in the capacities and on the dates indicated:


     Signature                        Title                  Date


/s/ Jerald L. Nelson
______________________        Chairman of the Board    September 27, 2002
Jerald L. Nelson              Director and Corporate
                              Treasurer

Frank C. Overfelt
_________________________     Director, President      September 27, 2002
Frank C. Overfelt


Donald W. Ballash
_________________________     Corporate Secretary and
Donald W. Ballash             Chief Operating Officer  September 27, 2002


Eric J. Nickerson
______________________        Director                 September 27, 2002
Eric J. Nickerson



CERTIFICATIONS

I, Frank C. Overfelt, certify that:

     1.   I have reviewed this annual report on Form 10-Ksb of Tenet
          Information Services, Inc.;

     2.   Based on my knowledge,  this annual report does not contain any
          untrue statement  of a  material  fact  or  omit to  state  a
          material fact necessary to make the statements  made, in light of
          the circumstances under which such  statements were made, not
          misleading with respect to the period covered by this annual
          report; and

     3.   Based on my knowledge, the financial statements, and other financial
          information included in this annual  report, fairly  present in all
          material respects the financial condition, results of operations and
          cash flows of the registrant as of, and for, the periods presented
          in this annual report.



Date: September 27, 2002

/S/  Frank C. Overfelt
--------------------------
Frank C. Overfelt
Director, President



I, Jerald L. Nelson, certify that:

     1.   I have reviewed this annual report on Form 10-Ksb of Tenet
          Information Services, Inc.;

     2.   Based on my knowledge,  this annual report does not contain any
          untrue statement  of a  material  fact or omit to state a material
          fact necessary to make the statements  made, in light of the
          circumstances under which such  statements were made, not misleading
          with respect to the period covered by this annual report; and

     3.   Based on my knowledge, the financial statements, and other financial
          information  included in this  annual  report, fairly present in all
          material respects the financial condition, results of operations and
          cash flows of the registrant as of, and for, the periods presented
          in this annual report.


Date: September 27, 2002

/S/ Jerald L. Nelson
---------------------------
Jerald L. Nelson
Corporate Treasurer, Chairman of the Board