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, 1999

[   ] 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.)

        4885 SOUTH 900 EAST #107
     SALT LAKE CITY, UTAH                             84117
(Address of principal executive office)             (Zip Code)

     Registrant's telephone number, including area code (801) 268-3480

     __________________________________________________________

     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-K, or any amendment to this Form 10-K [   ].

The number of shares outstanding of the Registrant's Common Stock as
of June 30, 1999 was 19,065,892.

                          TABLE OF CONTENTS


                                                                  Page #
PART I

     Item 1      Business                                            1

     Item 2      Properties                                          7

     Item 3      Legal Proceedings                                   7

     Item 4      Submission of Matters to a Vote of
                 Security Holders                                    7

PART II

     Item 5      Market for the Registrant's Common Equity
                 and Related Stockholder Matters                     7

     Item 6      Selected Financial Data                             8

     Item 7      Management's Discussion and Analysis
                 of Financial Condition and Results
                 of Operation                                        8

     Item 8      Financial Statements                               12

     Item 9      Changes In and Disagreements with
                 Accountants on Accounting and Financial
                 Disclosure                                         13


PART III

     Item 10     Directors, Executive Officers, Promoters
                 and Control Persons of the Registrant:
                 Compliance with Section 16)a)
                 of the Exchange Act                                13

     Item 11     Executive Compensation                             14

     Item 12     Security Ownership of Certain Beneficial Owners
                 and Management                                     16

     Item 13     Certain Relationships and Related Transactions     16

     Item 14     Exhibits and Reports on Form 8-K                   25


SIGNATURES


EXHIBITS                                                       Attached


ITEM 1:    BUSINESS

GENERAL


In 1978, Telemed Cardio Pulmonary Systems ("Telemed") purchased a
pulmonary testing business based in Salt Lake City, Utah.  Telemed's
business was developed from research performed at the University of
Utah on computer applications in medical data processing.  Telemed
later became a division of Becton Dickinson & Co.  ("Becton"), a
conglomerate of companies dealing primarily in disposable medical
supplies. Telemed's primary focus was in developing and marketing
diagnostic computer systems used in pulmonary testing and analysis.

In 1983, Becton's management decided to sell the high technology
pulmonary and respiratory care business.  The Company was organized
on February 24, 1984 by employees of Telemed to purchase Telemed's
pulmonary and respiratory care information services business.  In
March 1984, the Company purchased that business for cash and a
promissory note payable to Becton.  The Company then repositioned
its business to focus on providing the RCMS family of products, with
a view to offering cost-effective information systems that allow
health care institutions to provide better care at less cost.  The
Company built and serviced much of its mini-computer based hardware
and developed its own proprietary software, all state of the art for
the mid-eighties.

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 product became dated.  With the entrance of
two P.C. based competitors, the market shifted away from the
Company's Respiratory product.  The last RCMS sale was made in
January 1991.  The Company launched a technical development effort
to create a new generation of products and meet the competitive
challenge.  New technology required new programmers, and in 1994 a
new senior management team was put in place.

A newly developed system, designated as the RCMS/X, was designed to
use off-the-shelf P.C. hardware, commercially available software
such as a UNIX operating system and the ORACLE relational data base.
 The system's open architecture allowed it to share information
easily with other computers and networks.  In 1993, the first two
Beta sites were installed and the system was thoroughly tested.  In
the spring of 1995, after more than three years of development and
testing, a production system RCMS/X, including handhelds and
hospital interfaces was installed.  There have not been any further
installations of the RCMS/X since 1995, when the Company decided to
focus its development efforts on its new Emergency Department
Management System.
                                1
(PAGE)

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.

In connection with the assets purchased, the Company also entered
into three-year employment agreements with HCG's two principal
shareholders and agreed to issue certain warrants to purchase common
stock and to grant certain options to purchase common stock based on
future performance.

HCG provides 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

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.

Emergency Department Network System

Dr. Richard Gwinn, MD, an emergency medicine professional, founded
NMC in California in 1979.  NMC 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, a decision was reached to completely rewrite and expand the
original EDNet software.  The first installation of EDNet, version
3, occurred in April 1992.  This version was designed for IBM
compatible PCs and utilized standard operating systems and database
software.  With this version the cost of ownership of EDNet was
reduced substantially.

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.

                                2
(PAGE)

EDNet is currently in its fifth release, (EDNet 32) as a Windows
95/NT 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 32 for Windows was released in the
spring of 1998.

System Architecture - EDNet32 is written in Borland C++ Builder
using the Borland Database Engine.  All permanent databases and most
control files use Paradox level 7 tables.  Files are compatible with
either Borland Paradox 7 or Corel Paradox 8.  EDNet32 is supplied
complete with all necessary licenses.  EDNet 32 runs under Microsoft
Windows 95 or later along with other applications.  The system can
be tied to mulitple data bases such as Oracle, Sybase, Informix,
Sequel Server and Paradox.

Hardware - EDNet32 Version 5.x runs on a standard Novell network
(3.11 or better) or Microsoft NT Server with Windows 95 or later
workstations.  The Company recommends a Pentium-based server with at
least 2 GB of disk storage capacity.  The server should be equipped
with mirrored drives for data security.  Optical disk or tape drives
are recommended for backup and archive storage.  The server should
be supported by an Intelligent uninterruptible power supply (UPS).
The server must be suitable for use with Novell Network, v.4.1.
Network communications hardware (Ethernet, Token Ring, 10BaseT)
should be certified by Novell.  The Company supplies a fully
licensed copy of Paradox 7.0 with every EDNet system.

Individual workstations should be Pentium II's or better, with at
least 32MB of RAM.   Workstations must fully support SVGA color
graphics.  Stations should have Windows installed.  In addition to
the appropriate number of end-user workstations, Tenet recommends a
dedicated station for remote access communication and a dedicated
station for interfaces from the hospital-wide information system.  A
56K baud modem is required.  PC Anywhere should be installed on the
communications station.

Tracking Functions - The EDNet Patient Tracking module replaces the
grease board, chalk board, magnets and markers with an on-screen
display, continuously updated and distributed throughout the
Emergency Department.

The EDNet Patient Tracking module is the heart of the EDNet System.
EDNet status screens are distributed throughout the emergency
department so up-to-the-second information on every patient is
available at a glance from wherever providers are currently working.
 There is no need to return to a central point to check on the
status of orders, determine which patients have priority, or
discover the types of problems that have just been presented at
Triage.  Updates from Triage, Registration, Order Communications and
Discharge are displayed immediately throughout the emergency
department.

EDNet provides color coded status screens for designated emergency
department areas such as Triage, Registration, Treatment1,
Treatment2, Trauma, Pediatrics, Major Medical, Fast Track, Holding,
Out in the Hall, etc.  During system configuration customers
determine how to designate emergency department areas on their EDNet
System.

Following installation of EDNet, the department becomes quieter and
less hectic.  Communication among staff is facilitated by convenient
interaction with the EDNet System and vital information is not
erased, but instead, recorded.

Time and Motion - EDNet Tracking Module keeps a time stamp record of
every patient visit.  The system automatically records triage time,
the time a patient is registered, the time when a patient is made
ready to be seen, a patient is seen by a physician, orders are
placed, orders acknowledged, results available, the order is cleared
and three specific events in the discharge process.  Time stamps and
all associated data become available for various analytical studies.
 The goal is an accurate picture of emergency department operations,
greater efficiency, lower waiting times, faster turn around on
orders, and improved patient care.

                                3

(PAGE)

Triage Function - EDNet provides the ability to create triage
procedures that meet requirements for intake and initial assessment
of ambulatory patients.  This function is separate from but fully
integrated with the Registration Module. Triage may take place
either before or after patient registration, as the patient's
medical condition requires.  Data is merged when both functions have
been completed.  The triage assessment function contributes to the
EDNet database to improve the quality management, research and
outcome tracking.

Order Entry Module - Automating the order process while maintaining
a database offers department managers improved turn around times and
may significantly impact costs.  EDNet Order Entry Module (Optional)
allows users to automate the order requisition process while
simultaneously completing a detailed database entry for all
departmental orders.  Physicians and nurses gain a simple,
consistent means of entering order information and generating a
requisition when appropriate.  Unit clerks and technicians receive
consistent print or screen-based output.

Order status indicators display on the EDNet Tracking Screens and
detailed query capability is always available.  Providers will know
precisely the elapsed time between steps in the order process.
EDNet Order Entry software records four time stamps in the permanent
database:  Order placed, Order acknowledged, Results available and
Results reviewed.  EDNet Report Writers can be used to examine the
order process in detail to improve turn around times, minimize
unnecessary procedures and generate a wide variety of routine
reports and ad hoc studies.

The EDNet Order Entry Module can be interfaced with laboratory or
other ancillary departmental systems or with the main hospital
information system (HIS). The Standard Order Status Interface
carries automated status notification flags from HIS order
communications software to the EDNet Tracking Screens.  Additional
interface capability is offered on a custom basis.  All EDNet
interfaces are available in HL-7 format.

Prescription Function - EDNet Prescription Writer generates printed,
signature ready prescriptions at discharge or at any time during or
after the patient visit.  Warnings and instructions relating to
prescribed medication may be automatically incorporated into patient
discharge instructions.

The significance of an integrated prescription writer extends far
beyond the printing of the prescription itself.  As the prescription
information is input, database files are simultaneously completed.
These database files may be used for many important medical and
quality management functions such as follow up of culture results,
utilization summaries, formulary management, and analysis of
patterns of antibiotic sensitivities.

Data tables are established during system configuration.  Typically
menus list physicians, drug category, formulary, quantity, dosage,
frequency and special instructions.  Password security can be
applied.  Charges for each medication may be indicated if desired.
Data tables can be updated easily by emergency department managers,
information services personnel or by the Tenet support staff, using
remote access capability.

Charge Entry Module - Recording charges at the point of service
reduces lost revenues and produces an accurate record which can be
used to verify payments.

EDNet Charge Entry Module (optional) allows users to enter charges
at any time during the patient visit.  Charges may also be recorded
during the discharge process or in a batch mode after a visit.
EDNet records charges in a specialized data base table that can be
configured to generate a flexible report of charges for individual
patients, all patients or special subsets of patients.  Reports can
describe specific visits, a daily summary of all visits or various
date and hourly ranges may be selected.  Reports are configured
through a selection of menus by authorized personnel.  Reports may
be viewed on the screen, printed or sent to a computer file in HL-7
format for transmission to the hospital billing function.

Discharge Functions - EDNet aftercare instructions are selected from
a database of more than 1,000 aftercare instructions and are printed
individually for each patient.  Instructions are available in both
English and Spanish.  English instructions may be selected for
either a fifth grade reading level or a ninth grade reading level.

                                       4

(PAGE)

EDNet Discharge Module is extremely flexible.  During configuration,
various discharge procedures are created to handle standard
discharge, hospital admission, transfer, workers compensation cases,
trauma registry and other situations.  A comprehensive ICD-9 code
database is available.  Various database menus may be included to
record additional details of a patient visit.

Hospitals may wish to accompany the discharge instructions with
pertinent information about the facility.  Individual instructions
are stored in an extensive database, and are chosen from a menu
where they can be catalogued by a physician, and related to ICD-9
codes.  Free-form instructions are fully supported and multiple
instructions may be selected.  Instruction sets may be imported from
other discharge instruction generating systems.

Multiple languages are supported by the system.  Any set of
discharge instructions kept in the database, in up to 26 languages
and variations, may be selected upon discharge.  The discharging
personnel need not be familiar with that language.

Management Report Writer - The EDNet system can be configured to
exceed all applicable JCAHO requirements.  Data is collected
consistently, for all patients, all the time, without the need for
redundant entry or additional staff.

EDNet contains an open, relational database configured to create a
variety of standard and recurring reports and available for ad hoc
inquiries as well.  EDNet will generate and recall logs, routinely
run statistical and comparative analyses and with the recently added
Crystal Reports feature, display graphical reports to answer
management questions without paging through charts and medical
records.  Virtually any type of report desired can be constructed
from the standard report writing menus or by using the ad hoc report
writing capability of the databases.

Other Features of the latest version, EDNet32 include auto faxing,
auto paging, industrial medicine components, forms management and
the like.


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 President of the company.

As of June 30, 1999, the Company had sold its EDNet product to 27
emergency department and urgent care sites.  These sites have annual
maintenance contracts for continued support and updates.  It is
anticipated that a vast majority, if not all of these sites, will
renew this maintenance on an annual basis.  As of June 30, 1999 the
Company was in the process of installing EDNet32 upgrades at 13
additional sites.  The Company has previously completed the
installations of its new Windows 32 product at 10 sites.

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.  As of June 30, 1999
the Company was providing consulting services to three hospitals.

                                       5

(PAGE)

As of June 30, 1999, the Company had two clients still using its
Respiratory product.  Both of these clients have been notified that
their products are not year 2000 compliant and that the Company
would not be supporting them after December 31, 1999.

The Company believes that high-quality customer service and
technical support are essential competitive factors in its
marketplace. Through its training, consulting, maintenance, and
support services, Tenet is aware of customers' needs and strives to
provide services that will maximize the results achieved by
customers using Tenet's products. Maintenance, support, and training
also provide valuable feedback that is used to refine, enhance, and
develop Tenet's products.  Customers receive maintenance support
from a staff of experienced customer specialists via a telephone
"hot line".  Annual maintenance contracts are available for a fixed
price per site.  Customers with annual maintenance contracts also
receive periodic product upgrades and feature/function enhancements.

EDNET 32 PRODUCT DEVELOPMENT

Development efforts are focused on the enhancement of the EDNet 32
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, building upon existing EDNet 32
software, is being developed in conjunction with a major consulting
client.

The Company's 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 "Transit" and
"Intellichart".  In addition, the Company expects to seek certain
patent, trademark and/or copyright 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.


WARRANT, OPTION, AND DEBT CONVERSIONS

On February 20, 1998 the Company's board of directors authorized a
reduction in exercise price on all outstanding Class A, B, C & D
Warrants and options to $.03/share contingent upon exercise by March
20, 1998.  The original exercise prices ranged from $.05 to $.42 per
share. A total of 2,578,430 warrants and 1,164,286 options were
exercised.  As a result of the exercise, the Company received cash
of $17,321 and extinguished $94,961 of debt held by the option and
warrant holders.  In addition, the Company converted $62,174 of debt
into 2,072,496 of common stock.


EMPLOYEES

At June 30, 1999, the Company employed ten full-time employees, one
part-time employee and several independent service contractors.  The
number of employees and their responsibilities are as follows:  two
professional, seven technical,  one administrative.

                                6

(PAGE)

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.

Our products target the emerging market for computerized patient and
data management products in hospital and urgent care settings.

We face 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 we do.

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

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.

ITEM 2:   PROPERTIES

The Company's headquarters and operational facilities are located in
Salt Lake City, Utah.  The Company leases approximately 3,490 square
feet of office space at a cost $4,050 per month.  This is pursuant
to a lease that expires on November 15, 2000.

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, 1999 a limited number of shares traded on the
bulletin board market at a price range of $0.05 to $0.10 (bid).  The
number of shareholders of record for the Company's Common Stock as
of June 30, 1999 was 327 which includes depositories and
broker/dealers who hold shares of Common Stock in "nominee" or
"street" names.

                                7

(PAGE)

ITEM 6:   SELECTED FINANCIAL DATA

The selected financial data as of and for each of the fiscal years
ended June 30, 1995 through 1996 has been derived from the Company's
financial statements which have been audited by Arthur Andersen,
LLP, independent public accountants.  Financial Data for fiscal
years ended June 30, 1997, 1998 and 1999 has been derived from the
Company"s financial statements which have been audited by Hansen
Barnett & Maxwell, independent public accountants.  The following
selected financial data should be read in conjunction with the
financial statements and accompanying notes appearing elsewhere in
this Form 10-KSB.


Statement of Operations Data

                                    Year Ended June 30,
                          ----------------------------------------
                          1999     1998     1997    1996      1995
                          ----     ----     ----    ----      ----
                          (In thousands, except per share amounts)

Revenues                  879     $ 676    $ 757   $ 1,054    $ 369
Gain (loss) from
 operations                58       (48)    (431)     (571)   (319)
Net gain (loss)            69       (41)    (435)   (1,132)   (335)
Net gain (loss) per
 common share             .00      (.00)    (.03)     (.11)   (.07)

Balance Sheet Data
                                        As of June 30,
                         -----------------------------------------
                         1999      1998     1997   1996       1995
                         ----      -----    ----   ----       ----
                                   (In thousands)

Working capital
  (deficit)              (180)     (292)   $(470) $(319)      $(60)
Total assets              195       101       95    573        406
Long-term
 obligations               51         -        -      4         11
Stockholders' equity
  (deficit)              (208)     (286)    (453)  (106)       172


ITEM 7:   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.

As of June 30, 1999, the Company had sold its EDNet product to 27
emergency department and urgent care sites.  These sites have annual
maintenance contracts for continued support and updates.  It is
anticipated that a vast majority, if not all of these sites, will
renew this maintenance on an annual basis.  As of June 30, 1999 the
Company was in the process of installing EDNet32 upgrade at 13
additional sites.  The Company has completed installation of its new
Windows 32 product at 10 sites.

                                       8

(PAGE)

On October 24, 1998 the Company signed a consulting contract with a
client in the Southwest to develop and install Intellichart, an
inpatient nursing product.

As of June 30, 1999, the Company had sold or leased its RCMS/X
product to two hospitals.  Since the product is not Y2K compliant,
this product will terminate on 12/31/99 if not before. The Company
evaluated the feasibility and marketability of converting the RCMS/X
code to be both year 2000 compliant and to run in a small hospital
situation utilizing a Windows environment for added flexibility.  It
was decided that the Company"s limited resources would be better
spent on its Emergency Department product

RESULTS OF OPERATIONS


FISCAL 1999 COMPARED WITH FISCAL 1998

During fiscal year 1999, the Company had revenues of $878,968, which
represented an increase of $202,565 or 30% from $676,403 for the
prior fiscal year.  The following table presents the components of
revenues for fiscal 1999 and 1998.

                                           ACTUAL
           REVENUES          FY 99         FY 98      INCREASE      PERCENT
        -------------     -----------    ---------   ----------   ----------
       EDNet Systems      $   587,604    $ 313,090   $ 274,514       89%

       RCMS Systems           124,206      277,580    (153,374)     (54%)
       Consulting             167,158       85,733      81,425       95%
                          -----------    ---------   ---------    ----------

       TOTAL              $   878,968    $ 676,403   $ 202,565       30%
                          ===========    =========   =========    ==========

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

                               1999         1998      (DECREASE)
                           -----------   ---------   ------------


       EDNet System and
       RCMS & RCMS/X
       Systems             $  269,213    $ 189,128    $   80,085
       Consulting              69,925       89,759       (19,834)
                          -----------  -----------    ----------

              TOTAL       $   339,138  $   278,887    $   60,251
                          ===========  ===========    ==========


Cost of revenues increased by $60,251, up 22% to $339,138 for fiscal
year 1999 compared with $278,887 for the previous fiscal year.  Cost
of revenues related to the EDNet System and Respiratory System for
fiscal year 1999 were $269,213, a gross margin of 62%.  This
compares to cost of revenues of $189,128 with a gross margin of 68%
for the prior twelve month period.  Overall gross profit for the
fiscal year 1999 was 61% compared to 59% for the prior year.  This
improvement was a direct result of higher EDNet and consulting
revenues.

Selling, general and administrative expenses increased by $35,890 or
15%, to $280,118 for fiscal year 1999 compared with $244,228 for the
previous fiscal year.  Higher sales levels required a modest
expansion of overhead expenses.  Software development expenses
increased by $33 or 0%, to $201,326 for fiscal year 1999 from
$201,293 for fiscal 1998.  The Company's development effort
continues at the same level in 1999 as in 1998.

As a result of the above factors, the net gain from operations
increased to $58,386 for fiscal year 1999 compared with a loss of
$48,005 for fiscal year 1998.

                                9

(PAGE)

Net interest expense decreased to $7,360 for fiscal year 1999
compared with $20,716 for fiscal year 1998.  This is the result of
reduced short term debt and debt forgiveness and the conversion of
short term debt to long term debt.

Net income was $68,705 or $.00 per share for fiscal year 1999
compared with a loss of $40,556 or (0.00) per share for fiscal year
1998.


FISCAL 1998 COMPARED WITH FISCAL 1997

During fiscal year 1998, the Company had revenues of $676,403, which
represented a decrease of $80,854 (11%) from $757,257 for the prior
fiscal year.  The following table presents the components of
revenues for fiscal 1998 and 1997.

                                                                     PERCENT
                                         ACTUAL        INCREASE     INCREASE
       REVENUES          FY 1998        FY 1997       (DECREASE)    (DECREASE)
    -------------      ----------     ---------     -----------    ----------
    EDNet Systems      $  313,090     $  359,638   $  (46,548)        (13%)
    RCMS Systems          277,580        309,395      (31,815)        (10%)
    Consulting             85,733         88,224       (2,491)         (0%)
                       ----------     ----------   -----------     ----------

    TOTAL              $  676,403     $  757,257   $  (80,854)     $  (11%)
                       ==========     ==========   ==========      =======

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

                                                          INCREASE
                                 1998           1997     (DECREASE)
                             ------------  ------------  -----------

       EDNet System and
       RCMMS & RCMS/X
       Systems               $    189,128  $    203,985  $  (14,857)
       Consulting                  89,759       116,518     (26,759)
       Amortization &
         writedown of
         deferred software
         costs                          -       180,637    (180,637)
                              -----------   -----------   ----------

       TOTAL                  $   278,887   $   501,140   $ (222,253)
                              ===========   ===========   ===========


Cost of revenues decreased by $222,253 (44%) to $278,887 for fiscal
year 1998 compared with $501,140 for the previous fiscal year.  Cost
of revenues related to the EDNet System and Respiratory System for
fiscal year 1998 were $189,128, with a gross margin of 68%.  This
compares to cost of revenues of $203,985 with a gross margin of 70%
for the prior twelve month period.

Amortization and write-downs of deferred software costs were 0 for
fiscal year 1998 compared with$180,637 for the previous fiscal year.
Consulting cost of revenue decreased by 23% to $89,759 for fiscal
year 1998 from $116,518 for the fiscal year 1997.

Selling, general and administrative expenses decreased by $218,352,
or 47%, to $244,228 for fiscal year 1998 compared with $462,580 for
the previous fiscal year.  Software development expenses decreased
by $23,628 or 11%, to $201,293 for fiscal year 1998 from $224,921
for fiscal 1997.  This is the result of fewer administrative
personnel, and the use of outside contractors to finish the
development of EDNet 32.

Net interest expense increased to $19,959 for fiscal year 1998
compared with $3,785 for fiscal year 1997.  This is the result of
the conversion of debt and accumulated interest expense converted
into equity.

                                10

(PAGE)

As a result of the above factors, the net loss from operations
decreased to $48,005 for fiscal year 1998 compared with a loss of
$431,384 for fiscal year 1997.

Net loss decreased to $40,556 or $.00 loss per share for fiscal year
1998 compared with loss of $435,169 or $.03 loss per share for
fiscal year 1997.


LIQUIDITY AND CAPITAL RESOURCES

On February 20, 1998 the Company"s board of directors authorized a
reduction in exercise price on all outstanding Class A, B, C & D
Warrants and options to $.03/share contingent upon exercise by March
20, 1998.  The original exercise prices ranged from $.05 to $.42 per
share. A total of 2,578,430 warrants and 1,164,286 options were
exercised.  As a result of the exercise, the Company received cash
of $17,321 and extinguished $94,961 of debt held by the option and
warrant holders.  In addition, the Company converted $62,174 of debt
into 2,072,496 of common stock.

The Company"s cash position increased by $10,102 during the fiscal
year ended June 30, 1999 to $32,039 as compared to $21,937 as of
June 30, 1998.  The Company had a working capital deficit of
$180,257as of June 30, 1999 as compared with a deficit of $292,487
as of June 30, 1998.  Operating activities provided $36,050 for the
fiscal year ended June 30, 1999 as compared with using $20,584 for
the corresponding period of the previous year.  There were debt
payments of $661 during the fiscal year ended June 30, 1999 as
compared with $31,445 for the corresponding period of the previous
year.

While a portion of the current liabilities, approximately $19,000,
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.

Year 2000 Disclosure - The Company does not anticipate incurring any
substantial expenses to modify its software or operations to adjust
for the year 2000.

ITEM 7A:   MARKET RISK SENSITIVE INSTRUMENTS
      N/A

                                11

(PAGE)



ITEM 8:    FINANCIAL STATEMENTS


               TENET INFORMATION SERVICES, INC. AND SUBSIDIARY


                         INDEX TO FINANCIAL STATEMENTS

                                                                         Page

     Report of Independent Certified Public Accountants                  F-1

     Consolidated Financial Statements:

      Consolidated  Balance Sheet - June 30, 1999                        F-2

      Consolidated Statements of Operations for the Years
         Ended June 30, 1999 and 1998                                    F-3

      Consolidated Statements of Shareholders' Deficit for
         the Years Ended June 30, 1999 and 1998                          F-4

      Consolidated Statements of Cash Flows for the Years
         Ended June 30, 1999 and 1998                                    F-5

     Notes to Consolidated Financial Statements                          F-6

<PAGE>


       HANSEN, BARNETT & MAXWELL
      A Professional Corporation
     CERTIFIED PUBLIC ACCOUNTANTS

                                                     (801) 532-2200
      Member of AICPA Division of Firms            Fax (801) 532-7944
               Member of SECPS                345 East 300 South, Suite 200
  Member of Summit International Associates  Salt Lake City, Utah 84111-2693


               REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS


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, 1999, and the related consolidated statements of operations,
shareholders' deficit and cash flows for the years ended June 30, 1999 and
1998. 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 generally accepted auditing
standards. 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, 1999, and the
results of their operations and their cash flows for the years ended June
30, 1999 and 1998 in conformity with generally accepted accounting
principles.

                                            HANSEN, BARNETT & MAXWELL

Salt Lake City, Utah
July 29, 1999

                                      F-1
<PAGE>


               TENET INFORMATION SERVICES, INC. AND SUBSIDIARY
                          CONSOLIDATED BALANCE SHEET
                                JUNE 30, 1999

                                    ASSETS

Current Assets
 Cash                                                     $    32,039
 Accounts receivable, net of allowance for
   doubtful accounts of $7,500                                122,514
 Work performed in excess of billings                          16,676
                                                          -----------
      Total Current Assets                                    171,229
                                                          -----------
Furniture, Fixtures and Equipment                             144,589
 Less: Accumulated depreciation                              (122,181)
                                                          -----------
                                                               22,408
                                                          -----------
Other Assets, Net                                               1,425
                                                          -----------
Total Assets                                              $   195,062
                                                          ===========

                    LIABILITIES AND SHAREHOLDERS' DEFICIT

Current Liabilities
 Accounts payable                                         $    97,430
 Accrued expenses                                              63,773
 Accrued interest                                               1,057
 Deferred revenue                                             103,663
 Billings in excess of work performed                          66,683
 Payable to related parties                                    18,880
                                                          -----------
      Total Current Liabilities                               351,486

Long Term Liabilities
 Notes payable                                                 25,000
 Note payable to officer/shareholder                           26,436
                                                          -----------
      Total Long-Term Liabilities                              51,436
                                                          -----------
Total Liabilities                                             402,922

Shareholders' Deficit
 Preferred stock, $0.01 par value; 1,000,000
  shares authorized, no shares issued                              -
 Common stock, $.001 par value; 100,000,000
  shares authorized, 19,065,892 shares issued
  and outstanding                                              19,066
 Additional paid-in capital                                 4,843,476
 Warrants outstanding                                           7,987
 Accumulated deficit                                       (5,078,389)
                                                          -----------
      Total Shareholders' Deficit                            (207,860)
                                                          -----------
Total Liabilities and Shareholders' Deficit               $   195,062
                                                          ===========

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

                                      F-2
<PAGE>


               TENET INFORMATION SERVICES, INC. AND SUBSIDIARY
                    CONSOLIDATED STATEMENTS OF OPERATIONS
                  FOR THE YEARS ENDED JUNE 30, 1999 AND 1998

                                                          1999        1998
                                                       ----------  ----------
Revenues
 Software license fees and maintenance                 $  711,810  $  590,670
 Consulting services                                      167,158      85,733
                                                       ----------  ----------
    Total Revenues                                        878,968     676,403
                                                       ----------  ----------
Cost of Revenues
    Software license fees and maintenance                 269,213     189,128
    Consulting services                                    69,925      89,759
                                                       ----------  ----------
    Total Cost of Revenues                                339,138     278,887
                                                       ----------  ----------
Gross Profit                                              539,830     397,516

Operating Expenses
 Selling, general and administrative                      280,118     244,228
 Software development                                     201,326     201,293
                                                       ----------  ----------
    Total Operating Expenses                              481,444     445,521
                                                       ----------  ----------
Income (Loss) From Operations                              58,386     (48,005)

Other Income and Expense
 Interest income                                              776         757
 Interest expense                                          (7,360)    (20,716)
                                                       ----------  ----------
    Net Other Expense                                      (6,584)    (19,959)
                                                       ----------  ----------
Income (Loss) Before Extraordinary Item                    51,802     (67,964)

Extraordinary Item - Forgiveness of Debt
  (Net of $0 Tax Benefit)                                  16,903      27,408
                                                       ----------  ----------
Net Income (Loss)                                      $   68,705  $  (40,556)
                                                       ==========  ==========
Basic Earnings (Loss) Per Share
 Operations                                            $     0.00   $   (0.00)
 Extraordinary item                                          0.00       (0.00)
                                                       ----------   ---------
Total Basic Earnings (Loss) Per share                  $     0.00   $   (0.00)
                                                       ==========   =========
Diluted Earnings (Loss) Per Share
 Operations                                            $     0.00   $   (0.00)
 Extraordinary item                                          0.00       (0.00)
                                                       ----------   ---------
Total Diluted Earnings (Loss) Per Share                $     0.00   $   (0.00)
                                                       ==========   =========

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

                                      F-3
<PAGE>


               TENET INFORMATION SERVICES, INC. AND SUBSIDIARY
               CONSOLIDATED STATEMENTS OF SHAREHOLDERS' DEFICIT
                  FOR THE YEARS ENDED JUNE 30, 1999 AND 1998

<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, 1997        13,018,505  $   13,019  $4,611,517  $   29,721  $(5,106,538) $  (452,281)

Conversion of options and
 warrants to common stock at
 discounted rate for cash and
 conversion of liabilities      3,742,716       3,743     130,273     (21,734)          -       112,282

Issuance of common stock to
 satisfy amounts owed           2,072,496       2,072      60,102          -            -        62,174

Shares returned to Company     (1,084,286)     (1,084)      1,084          -            -            -

Shares issued to employees
 as compensation and to third
 parties as interest expense    1,084,286       1,084      31,445          -            -        32,529

Net loss                               -           -           -           -       (40,556)     (40,556)
                               ----------  ----------  ----------  ----------  -----------  -----------
Balance, June 30, 1998         18,833,717      18,834   4,834,421       7,987   (5,147,094)    (285,852)

Issuance of common stock
 to satisfy amounts owed          232,175         232       9,055          -            -         9,287

Net income                             -           -           -           -        68,705       68,705
                               ----------  ----------  ----------  ----------  -----------  -----------

Balance, June 30, 1999         19,065,892  $   19,066  $4,843,476  $    7,987  $(5,078,389) $  (207,860)
                               ==========  ==========  ==========  ==========  ===========  ===========
<FN>
The accompanying notes are an integral part of these consolidated financial
statements.
</FN>
</TABLE>

                                      F-4
<PAGE>
               TENET INFORMATION SERVICES, INC. AND SUBSIDIARY
                    CONSOLIDATED STATEMENTS OF CASH FLOWS
                  FOR THE YEARS ENDED JUNE 30, 1999 AND 1998


                                                        1999        1998
                                                     ----------  ----------
Cash Flows From Operating Activities
  Net income (loss)                                  $   68,705  $  (40,556)
  Adjustments to reconcile net income (loss)
   to net cash from operating activities:
     Depreciation and amortization                        8,089      10,859
     Expenses related to the issuance of
       stock and stock options                               -       32,529
     Stock issued for services                            9,287          -
     Gain on forgiveness of debt                        (16,903)    (27,408)
     Change in assets and liabilities:
        Accounts receivable                             (50,333)    (22,188)
        Accounts payable                                  3,467      (7,087)
        Accrued liabilities                              23,265       1,482
        Deferred revenue                                (59,534)     31,785
        Work performed in excess of billings            (16,676)         -
        Billings in excess of work performed             66,683          -
                                                     ----------  ----------
     Net Cash Provided By (Used) In
      Operating Activities                               36,050     (20,584)
                                                     ----------  ----------
Cash Flows From Investing Activities
  Acquisition of furniture, fixtures and equipment      (25,287)         -
                                                     ----------  ----------
Net Cash Used In Investing Activities                   (25,287)         -
                                                     ----------  ----------
Cash Flows From Financing Activities
  Proceeds from the sale of common stock and
   warrants to purchase common stock                         -       17,321
  Proceeds from borrowings                                   -       29,307
  Principal payments on long-term debt                     (661)    (31,445)
                                                     ----------  ----------
     Net Cash Provided By (Used) by
      Financing Activities                                 (661)     15,183
                                                     ----------  ----------

Net Increase (Decrease) In Cash                          10,102      (5,401)

Cash at Beginning of the Year                            21,937      27,338
                                                     ----------  ----------
Cash at End of the Year                              $   32,039  $   21,937
                                                     ==========  ==========

Supplemental Disclosures of Cash
  Flow Information:
   Cash paid for interest                            $    3,069  $      488
                                                     ==========  ==========

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

                                      F-5
 <PAGE>
                TENET INFORMATION SERVICES, INC. AND SUBSIDIARY
                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


 NOTE 1--NATURE OF OPERATIONS

       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. Tenent has elected to phase out its respiratory
       therapy product line.

       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.

       Basis of Presentation - The accompanying financial statements have
       been prepared on a going concern basis, which contemplates the
       realization of assets and the satisfaction of liabilities in the
       normal course of business.  The Company previously experienced losses
       from operations. These factors previously caused substantial doubt
       about  the Company's ability to continue as a going concern for a
       reasonable period of time. The Company has net income of $68,705 and
       has a positive cash flow from operations of $36,050 for the current
       year. The Company has phased out its respiratory therapy product line
       and replaced it with the EDNet System which is deemed to be a more
       marketable and profitable product line. Management is also
       negotiating various sales agreements and is continuing to better
       manage its cash flow. Management is also considering raising capital
       through the issuance of warrants and other equity instruments. The
       Company has restructured its management personnel in an effort to
       streamline operations. In the current fiscal year, management has
       shown positive earnings compared to prior periods. These factors
       reasonablely mitigate the concern about the Company's ability to
       continue as a going concern.

                                       F-6
 <PAGE>

 NOTE 2-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

       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 generally
       accepted accounting principles 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.

       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 completion method measured by
       completion and acceptance of contracted milestones. The assets "work
       performed in excess of billings" represents revenues in excess of
       billings on uncompleted contracts. The liability "billings in excess
       of work performed" represents billings in excess of 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 $8,089 and $10,859
       for the periods ended June 30, 1999 and 1998. 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 $135,916 of
       computer equipment used in operations and $8,673 of furniture,
       fixtures and other equipment at June 30, 1999.

       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, 1999.

                                       F-7
 <PAGE>

       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.

       Fair Value of Financial Instruments - 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.

       Advertising Costs - Advertising costs are charged to expense in the
       period incurred. Advertising expense for the years ended June 30,
       1999 and 1998 was $2,430 and $10,675 respectively.

       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 90-day limited warranty is provided on sales of
       hardware and software licenses. Warranty costs incurred on hardware
       are passed through to the manufacturer. Warranty costs have not been
       material in any year presented, accordingly, these costs are expensed
       when incurred.

       Earnings (Loss) Per Share - In 1998, the Company adopted Statement of
       Financial Accounting Standards (SFAS) No. 128, Earnings Per Share.
       Under SFAS 128, earnings (loss) per common share is computed by
       dividing net loss available to common stockholders  by the
       weighted-average number of common shares outstanding during the
       period. Diluted earnings (loss) 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.

                                       F-9
 <PAGE>

 NOTE 3-EARNINGS (LOSS) PER SHARE

       The following data shows the amounts used in computing earnings per
       share for the year ended June 30, 1999 and the effect on income and
       weighted average number of shares of dilutive potential common stock:

      Income available to common shareholders
       used in basic earnings per share                          $    68,705
                                                                 ===========
      Income available to common shareholders
       after assumed conversions of dilutive securities          $    68,705
                                                                 ===========
      Weighted average number of common shares
       used in basic earnings per shares.                         18,948,850
                                                                 ===========
      Effect of dilutive securities
            Stock options                                             50,000
            Stock warrants                                           688,077
                                                                 -----------
      Weighted average number of common shares
       and dilutive potential common shares used in
       dilutive earnings per share                                19,686,927
                                                                 ===========

 The weighted average number of common shares used in the computation for
 basic loss per share was 14,643,578, options on 50,000 shares of common
 stock and warrants on 688,077 of common stock were not included in
 computing diluted loss per share for the period ended June 30, 1998 because
 their effects were antidilutive.

 NOTE 4-NOTES PAYABLE AND RELATED-PARTY DEBT

 Long-term notes payable consist of the following at June 30, 1999:

    Note payable to Utah Technology Finance
    Corporation at an interest rate of 9.75% per annum.
    Repayment of principal shall be paid in two lump
    sum payments of $12,500 due on December 30, 2000
    and 2001.                                                         25,000
                                                                   ---------
          Total Notes Payable                                      $  25,000
                                                                   =========
                                       F-9
 <PAGE>



 Current related-party debt consists of the following at June 30, 1999:

  Debt payable to a related party corporation owned by an
     employee of the Company at an  interest rate of 8.5%,
     balance is due on demand                                      $   3,747

  Debt payable to officers/shareholders at an interest rate
    of 12% per annum, balance is due on demand                        15,133

 Long-term related party debt consists of the following
  at June 30, 1999:

  Note payable to an officer and shareholder, at an interest
    rate of 8% per annum. Payment of principal shall be
    made on or before March 31, 2002.                                 26,436
                                                                   ---------
    Total Related Party Debt                                       $  45,316
                                                                   =========
 Annual maturities are as follows:

               Period Ending June 30:
                       2000                 18,880
                       2001                 12,500
                       2002                 38,936

 NOTE 5-OPERATING LEASE

       The Company occupies its facilities and uses equipment under
       non-cancelable operating leases which expire in fiscal year 2001.
       Lease expense for fiscal 1999 and 1998 was $53,007and $47,896,
       respectively.

       Minimum future lease payments under non-cancelable operating leases
       having remaining terms in excess of one year as of June 30, 1999 are
       as follows:

               Year Ended June 30,
                       2000               $ 50,000
                       2001                 21,073
                                          --------
                                          $ 71,073
                                          ========

                                       F-10
 <PAGE>

 NOTE 6 - INCOME TAXES

       No benefit for income taxes has been recorded during the years ended
       June 30, 1999 and 1998.  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, 1999 are as
       follows:

       Deferred Tax Assets
          Tax net operating loss carry forward                   $ 1,572,655
          Tax credits carry forward                                  103,000
          Reserves and accrued liabilities                             5,499
                                                                 -----------
       Total Deferred Tax Assets                                   1,681,154
                                                                 -----------
       Valuation allowance                                        (1,681,154)
                                                                 -----------
       Net Deferred Tax Asset                                    $        -
                                                                 ===========

       During the years ended June 30, 1999 and 1998, the valuation
       allowance decreased by $28,031 and increased by $13,184 respectively.

       As of June 30, 1999, the Company has net operating loss carryforwards
       for federal income tax reporting purposes of approximately
       $4,216,893. The tax net operating losses will begin to expire in
       fiscal 2000.

       The Company has research and development tax credit and investment
       tax credit carryforwards of approximately $95,000 and $8,000,
       respectively, which will begin to expire in fiscal 2000.

       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, 1999 and 1998:

                                                       1999         1998
                                                    --------     ---------
  Income tax expense (benefit) at statutory rate    $ 23,360     $ (13,789)
  Change in deferred tax valuation account           (28,031)       13,184
  Non deductible taxes                                 2,404         1,943
  State taxes, net of federal benefit                  2,267        (1,338)
                                                    --------     ---------
  Provision for Income Taxes                        $     -      $      -
                                                    ========     =========

                                       F-12
 <PAGE>

 NOTE 7-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 at 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.

       During the fiscal year ended June 30, 1999, the Company issued
       232,175 shares of common stock to satisfy amounts owed of $9,287 for
       legal work performed on behalf of the Company.

       During 1998, the Company converted $62,174 of debt into 2,072,496
       shares of common stock. As described in Notes 10 and 11, 2,578,430
       warrants and 1,164,286 stock options were exercised at $0.03 per
       share. As a result of the exercise, the Company received cash of
       $17,321 and extinguished $94,961 of debt held by the option and
       warrant holders.

       In 1998, two officers returned 1,084,286 shares of common stock to
       the treasury. These shares were then reissued to employees and
       creditors as additional compensation of  $25,951 and interest expense
       of $6,578.

 NOTE 8 - STOCK OPTIONS

       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 immediately to the third
       anniversary date following the date of grant. The options expire five
       years from the vesting date. Incentive stock options are forfeited
       unless exercised within 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 option plan as of June 30,
       1999 and 1998, and changes during the years then ended is presented
       below:

                                    1999                      1998
                           ----------------------    -----------------------
                                   Weighted-Average         Weighted-Average
                           Shares   Exercise Price    Shares  Exercise Price
                           -------- ---------------  --------- ------------
  Outstanding at beginning
   of year                   50,000   $    0.14       1,014,286    $  0.14
  Granted                        -           -          200,000       0.05
  Exercised                      -           -       (1,164,286)      0.03
                           --------   ---------     -----------    -------
  Outstanding at end
   of  year                  50,000        0.14          50,000       0.14
                          =========                 ===========

  Options exercisable at
   year-end                  50,000        0.14          50,000       0.14
                          =========                 ===========

  Weighted-average fair
   value of options granted
   during the year            N/A                   $      0.05
                          =========                 ===========

                                       F-12
 <PAGE>

       On February 20, 1998, the Company's board of directors authorized a
       reduction of the exercise price on all outstanding options to $0.03
       per share contingent upon exercise by March 20, 1998. A total of
       1,164,286 options with original exercise prices from $0.05 to $0.14
       per share were exercised.

       At June 30, 1999 and 1998, the exercise price for options outstanding
       was $0.14 per share and the weighted-average remaining contractual
       life was 2.5 and 3.5 years, respectively.

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

                                               1999         1998
                                            ----------  -----------
       Net income (loss)
          As reported                       $   68,705  $   (40,556)
          Pro forma                             68,705      (50,963)

       Income (loss) per share
          As reported                            (0.00)       (0.03)
          Pro forma                              (0.00)       (0.04)

       The fair value of each option granted was estimated on the date of
       grant using the Black-Scholes option-pricing model with the following
       weighted-average assumptions used for grants during the year ended
       June 30, 1998:  expected volatility of 34.0 percent, risk-free
       interest rate of 5.7% and expected lives of 5 years. There were no
       issuances of options during the year ended June 30, 1999.

       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.

                                       F-13

 <PAGE>

 NOTE 9-WARRANTS TO PURCHASE COMMON STOCK

       The Company has issued warrants to purchase common stock in
       connection with various transactions. The following table summarizes
       the warrants to purchase common stock issued and outstanding,
       together with their respective exercise price ranges:

                                                    Years Ended June 30,
                                                   -----------------------
                                                      1999        1998
                                                   ----------  -----------
  Warrants to purchase common
       shares, beginning of the year,
       at prices ranging from $0.14
       to $0.42 per share                              688,077   3,266,507

  Warrants exercised at prices ranging
    from $0.03 to $0.05 per share                           -   (2,578,430)
                                                   -----------  ----------
  Warrants to purchase common
       shares, end of the year, at
       prices ranging from $0.14
       to $0.42 per share                              688,077     688,077
                                                   ===========  ==========

       On February 20, 1998, the Company's board of directors authorized a
       reduction of the exercise price on all outstanding Class A, B, C and
       D warrants to $0.03 per share contingent upon exercise by March 20,
       1998. The original exercise prices ranged from $0.05 to $0.42 per
       share. A total of 2,578,430 warrants were exercised.

 NOTE 10--SUPPLEMENTAL CASH FLOW INFORMATION ACTIVITIES

      During fiscal year ended June 30, 1999, the Company issued 232,175
      shares of stock to satisfy amounts owed for services performed on
      behalf of the Company in the amount of $9,287.

       As described in Note 8, the Company converted $62,174 of debt into
       2,072,496 shares of common stock. In addition, 2,578,430 warrants and
       1,164,286 stock options were exercised at $0.03 per share resulting
       in 3,742,716 shares of common stock. As a result of the exercise the
       Company received cash of $17,321 and extinguished $94,961 of debt
       held by the option and warrant holders. Also during fiscal 1998,
       $7,869 of accrued interest was converted to long term debt.

 NOTE 11 -- EXTRAORDINARY ITEM

       During the year ended June 30, 1999, $7,615 of unpaid accrued
       interest was forgiven on a  Note payable. In addition, $9,288 owed
       for legal services performed on behalf of the Company was forgiven.
       The total write off of $16,903 has been recognized as an
       extraordinary gain on the forgiveness of debt.

       During the year ended June 30, 1998, an officer forgave $9,933 of
       debt. In addition the Company eliminated $17,475 worth of payables
       between one and three years old for which the Company believes it is
       no longer liable. The total write off of $27,408 has been recorded as
       an extraordinary gain on the forgiveness of debt.

NOTE 12 -- SUBSEQUENT EVENTS

       During July and August 1999, the Company granted 830,000 options to
       purchase its common shares to various employees which was greater than
       the market value on the date of grant which was greater than the market
       value on the date of the grant. The term of the options shall
       be for a period of 5 years and shall vest at a rate of 20% at the end
       of each of the 5 years. (Unaudited)

                                      F-14


                                12

(PAGE)

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

On May 30, 1997, the Registrant dismissed Arthur Anderson LLP,
("Andersen") as its certifying accountant.  Andersen's reports on
the Registrant's financial statements for the years ended June 30,
1995 and 1996 did not contain an adverse opinion or a disclaimer of
opinion and were not qualified as to uncertainty, audit scope or
accounting principles.  The Registrant's board of directors
unanimously approved dismissal of Arthur Anderson.

During the two most recent fiscal years ended June 30, 1996 and 1995
and the interim period subsequent to June 30, 1997, there were no
disagreements, as defined in Regulation S-K Item 304, with Andersen
on any matter of accounting principles or practices, financial
statement disclosure, or auditing scope or procedure, which
disagreements would have caused Anderson to make a reference to the
subject matter of the disagreement in connection with its reports.

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 10:   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     56          President (resigned)       December 1, 1993
                                 Chairman of the Board       (July 10, 1996)
                                                              July 10, 1996
                                 Director                   January 24, 1994

Frank Overfelt        56         Director                   September 29, 1995
                              Chief Operations Officer
                                     (acting)                   July 10, 1996
                              President & Chief Operating
                                     Officer                   August 31, 1998

Eric J. Nickerson     46      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.

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.

                                       13

(PAGE)


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.  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.  As of July 10, 1996, Mr. Overfelt was appointed
interim Chief Operating Officer.  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."  He also serves as a director of CSM
Environmental Systems, Inc.

Other Key Personnel

     The Company's other key personnel include the following:

     Donald W. Ballash.  Mr. Ballash has over 19 years of experience
in the health care field in which he has 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 11:   EXECUTIVE COMPENSATION

The following table sets forth all cash compensation for services
rendered in all capacities to the Company during the fiscal year
ended June 30, 1999 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.

                                14

(PAGE)
<TABLE>
<CAPTION>
                                    Annual Compensation            /Long Term Compensation  /
                          -------------------------------------------------------------------
                                                                   / Awards         /Payouts/
                                                                    ----------------------------------
                                                          Other
  Name                                                   Annual     Restricted   Securities    LTIP   All Other
   and                                                   Compen-      Stock      Underlying    Pay-   Compensa-
Principal                            Salary      Bonus    sation      Awards       Options/    outs     sation
Position                  Year        ($)         ($)      ($)          ($)        SARs (#)     ($)      ($)
---------------------------------------------------------------------------------------------------------------
<S>
                         <C>        <C>         <C>     <C>        <C>          <C>           <C>      <C>
Frank C. Overfelt         1997       76,797          0         0             0            0        0          0
Chief Operating Officer   1998       76,797          0         0             0            0        0          0
                          1999       76,828          0         0             0            0        0          0

Jerald L. Nelson          1997            0          0         0             0            0        0          0
Chairman of the Boaard    1998            0          0         0             0            0        0          0
                          1999            0          0         0             0            0        0          0

All Executive Officers

(3 persons)               1997      145,690          0         0             0            0        0          0
(1 person)                1998       76,797          0         0             0            0        0          0
(2 persons)               1999       76,828          0       600             0            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"), 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.  There are
still outstanding 50,000 options to an employee exercisable at $.05
per share.

                                15

(PAGE)


ITEM 12:   SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS
      AND MANAGEMENT

The following table sets forth the holdings of common stock as of
August 1, 1999 (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 August 1, 1999
---------------------------------------------------------

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

Michael R. Carlston 2        5,510,290                   26.70%
Dennis C. Peterson 3         4,220,442                   20.45%
Mark Oldroyd 4               3,975,559                   19.27%
Scott Staker 5               3,975,559                   19.27%
T-Acquisition 6              3,775,559                   18.30%
Eric J. Nickerson 7          2,602,044                   12.61%
Third Century II 7           2,602,044                   12.61%
Robert Smith 8               1,166,246                    5.65%
Richard Gwinn 9              1,054,920                    5.11%
Frank Overfelt 10            1,102,143                    5.34%
Donald W. Ballash 11         1,226,429                    5.94%
Jerald L. Nelson 12            435,700                    2.11%

All Officers and
   Directors                 5,366,316                   26.01%

-----
1.  Based on 19,065,892 common shares outstanding,   688,075
    warrants to purchase common shares at $0.07 - $0.42 and options to
    acquire 880,000 shares of Common Stock at $0.05 -$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 T-Acquisition is 855 Harwood Dr., Murray, UT
    84107.
7.  Includes 2,602,044 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 803,497 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 and
    warrants to acquire 50,000 shares of Common Stock at a price of $.14
    per share exercisable through September 29, 1998.  Dr. Gwinns
    address is 304 W. Thorn, San Diego, CA 92103
10. Includes 50,000 shares of Common Stock held by IHCG and
    1,052,142 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 735,706 shares of Common Stock .. Mr. Nelsons address
    is 207 W. Clarendon #3B, Phoenix, AZ 85013
----

                                16

(PAGE)


ITEM 13:         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 except the transaction identified
below.

In accordance with the Board resolution of February 20, 1998 Franc
C. Overfelt, a director and officer of the Company exercised his
options (428,572 shares) and warrants (398,571 shares) and received
an additional 225,000 shares from a debt conversion and consequently
became a beneficial owner of more than 5% of the common stock of the
company.

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.

                                17

(PAGE)

PART IV

ITEM 14:         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, 1999 and 1998

                     Statements of Operations for the Years Ended
                      June 30, 1999, 1998, and 1997

                     Statements of Shareholders' Equity
                      for the Years Ended June 30, 1999, 1998
                      and 1997

                     Statements of Cash Flows for the Years
                      ended June 30, 1999, 1998 and 1997

                      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



The following documents are incorporated by reference to the
Company's Registration Statement on Form S-18, filed with the
Commission on January 17, 1989, and as amended on February 10, 1989
and March 7, 1989, as declared effective on March 9, 1989:

3.1              Articles of Incorporation and all amendments thereto
3.2              Bylaws
10.1             Nonqualified Stock Option Plan
10.2             Incentive Stock Option Plan
10.3             Form of common stock Purchase Warrant issued to Rogers &
                 Anderson
10.4             Form of Rental Agreement
10.5             Form of 60 Month Lease Agreement
10.6             Form of Purchase Agreement
10.7             Form of Proprietary Information and Inventions
                 Agreement between all employees and consultants and the Company
10.8             Facilities Lease between the Company and J & V Management
                 Company

The following documents are incorporated by reference to the
Company's Annual report on Form 10-K dated September 25, 1989:

10.9             Underwriting Agreement, dated March 10 1989,
                 between the Company and Schnieder Securities, Inc.
10.10            Hemotech Purchase Agreement

The following documents are incorporated by reference to the
Company"s report on Form 10-K dated October 12, 1993

                                       18

(PAGE)

10.11            Settlement Agreement between Tenet Information
                 Services, Inc., and Hewlett Packard
10.12            Release and Consent Agreement between Tenet
                 Information Services Inc., and First Security Bank.
10.13            Assignment of Note and Related Documents by First
                 Security Bank in favor of T Acquisition L.C.
10.14            Facility Lease
10.15            Debt Conversion
10.16            Series A Preferred Stock
10.17            Series B Preferred Stock

The following documents are incorporated by reference to the
Company's report on Form 10-K dated October 14, 1995 for the year
ended June 30, 1995.

2.1              Form of International Health Care Consulting Group Acquisition
2.2              Agreement and Plan of Reorganization
4.1              Conversion of Series A Preferred Stock
4.2              Conversion of Series B Preferred Stock
4.3              Conversion of T-Acquisition Debt
4.4              Conversion of Anderson Debt
4.5              Conversion of Carlston Debt
4.6              Form of Private Placement
4.7              Form of Class A Warrant
4.8              Form of Class B Warrant
4.9              Form of Class C Warrant
10.18            Form of F. Overfelt Employment Agreement
10.19            Form of D. Ballash Employment Agreement

                                19

(PAGE)

                              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 28, 1999                     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 Executive Officer, Chief Financial Officer, and a
majority of the Board of Directors, on behalf of the Company and in
the capacities and on the dates indicated:

                          POWER OF ATTORNEY

Know All Men By These Presents, that each person whose signature
appears below constitutes and appoints each of Jerald L. Nelson and
Fred J. Anderson, jointly and severally, his true and lawful
attorney in fact and agent, with full powers of substitution for him
and in his name, place and stead, in any and all capacities, to sign
any or all amendments to this Report on Form 10-K and to file the
same, with all exhibits thereto, and all other documents in
connection therewith, with the Securities and Exchange Commission,
hereby ratifying and confirming all that each of said attorney in
fact, or his substitute or substitutes, may do or cause to be done
by virtue hereof.

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

/s/ Jerald L. Nelson      Director and Chairman of       September 28, 1999
--------------------      the Board of Directors
Jerald L. Nelson
--------------------


/s/Frank C. Overfelt      Director, President            September 28, 1999
--------------------
Frank C. Overfelt


/s/ Eric J. Nickerson     Director                        September 28, 1999
---------------------
Eric J. Nickerson



                              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 Executive Officer, Chief Financial Officer, and a
majority of the Board of Directors, on behalf of the Company and in
the capacities and on the dates indicated:

                          POWER OF ATTORNEY

Know All Men By These Presents, that each person whose signature
appears below constitutes and appoints each of Jerald L. Nelson and
Fred J. Anderson, jointly and severally, his true and lawful
attorney in fact and agent, with full powers of substitution for him
and in his name, place and stead, in any and all capacities, to sign
any or all amendments to this Report on Form 10-K and to file the
same, with all exhibits thereto, and all other documents in
connection therewith, with the Securities and Exchange Commission,
hereby ratifying and confirming all that each of said attorney in
fact, or his substitute or substitutes, may do or cause to be done
by virtue hereof.

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

--------------------        Chairman of the Board      Spetember 28, 1999
Jerald L. Nelson            Director


--------------------        Director, President        September 28, 1999
Frank C. Overfelt           Chief Operating Officer


--------------------        Director                   September 28, 1999
Eric J. Nickerson


Supplemental Information to be Furnished With Reports Filed Pursuant
to Section 15(d) of the Act by Companies Which Have Not Registered
Securities Pursuant to Section 12 of the Act.


The Company has not prepared or distributed any annual report to
security holders covering the last fiscal year nor any proxy
statement, form for proxy or other proxy soliciting material to more
than ten of the Company's security holders with respect to any
annual or other meeting of security holders.  In the event the
Company's management elects to distribute such an annual report or
proxy  material subsequent to the filing of this annual report on
Form 10-K, the Company will furnish four copies of such materials to
the Commission when it is sent to security holders.