U.S. SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


                                   FORM 10-QSB

(Mark One)
[X]    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
                  EXCHANGE ACT OF 1934
                  For the quarterly period ended September 30, 1996

[ ]  TRANSITION  REPORT  PURSUANT TO SECTION 13 OR 15 (d) OF THE
                  SECURITIES EXCHANGE ACT OF 1934 For the transition period from
                  to

                        Commission file number: 33-28562

                      PHYSICIANS INFORMATION EXCHANGE, INC.
             (Exact name of registrant as specified in its charter)

                    TEXAS                           72-1315594
     (State or other jurisdiction of              (I.R.S. Employer
         incorporation or organization)         Identification No.)


                                1401 HUDSON LANE
                                    SUITE 202
                             MONROE, LOUISIANA 71201
                    (Address of principal executive offices)

                                 (318) 323-5000
              (Registrants's telephone number, including area code)

     Indicate  by check mark  whether the  registrant  (1) has filed all reports
required to be filed by Section 13 or 15 (d) of the Exchange Act during the past
12 months (or for such shorter  period the  registrant was required to file such
reports),  and (2) has been subject to such filing  requirements for the past 90
days.   Yes X    No

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

Common Stock:  Class A, $0.001 par value:  130,000 Shares Outstanding at 
                    November 7, 1996
               Class B, $0.001 par value: 75,665,350 Shares Outstanding at 
                    November 7, 1996

Transitional Small Business Disclosure Format.  Yes               No       X

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                      PHYSICIANS INFORMATION EXCHANGE, INC.

                              INDEX TO FORM 10-QSB


Part I.

         FINANCIAL INFORMATION

         Item 1.  Financial Statements                                      Page

                  Balance Sheets as of  December 31,
                  1995 and September 30, 1996...............................   3

                  Statements of Operations  for the Three Months and Nine Months
                  Ended September 30, 1996 and the Period from November 10,
                  1995 (Date of Inception) to September 30, 1996............   4

                  Statements of Cash Flows for the Nine Months
                  Ended September 30, 1996 and the Period from
                  November 10, 1995 (Date of Inception) to
                  September 30, 1996.........................................  5

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

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

Part II. OTHER INFORMATION

         Item 6.  Exhibits and Reports on Form 8-K...........................  7

SIGNATURE                  ..................................................  8



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                      PHYSICIANS INFORMATION EXCHANGE, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                                 BALANCE SHEETS


                                     ASSETS

<TABLE>
<CAPTION>

                                                                                  SEPTEMBER 30,           DECEMBER 31,
                                                                                      1996                    1995
                                                                                ---------------       ----------------
                                                                                     UNAUDITED)              (AUDITED)
<S>                                                                                 <C>                    <C>        
Current assets:...........................................................          $   193,939            $   100,000
         Cash.............................................................               16,233                     --
                                                                                  -------------       ----------------
         Prepaid insurance................................................              210,172                100,000
                  Total current assets....................................                   --                 18,933
Deferred offering costs...................................................                  850                  1,000
                                                                                ---------------         --------------
Organization costs........................................................          $   211,022             $  119,933
                                                                                    ===========             ==========
</TABLE>


                 LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)


<TABLE>
<CAPTION>

                                                                                      JUNE 30,            DECEMBER 31,
                                                                                        1996                  1995
                                                                                 --------------------     ------------
Current liabilities:
<S>                                                                                 <C>                    <C>        
         Accounts payable - stockholder...................................          $   620,013            $   189,358
                                                                                    -----------            -----------
Commitments and contingencies.............................................                   --                     --
Stockholders' equity (deficit):
         Preferred stock, $.001 par; 5,000,000 shares authorized;
           none issued....................................................                   --                     --
         Common stock:
                  Class A $.001 par; 250,000,000 shares authorized;
                  130,000 and 10,000 shares issued and outstanding........                  130                     10
                  Class B, $.001 par; 250,000,000 shares authorized;
                  75,665,350 and 75,240,000 shares issued and
                  outstanding.............................................               75,665                 75,240
         Additional paid-in capital.......................................              622,813                249,750
         Stock subscriptions receivable...................................                   --               (25,000)
         Deficit accumulated during the development stage.................          (1,107,599)              (369,425)
                                                                                  -------------            -----------
                           Total stockholders' equity (deficit)...........            (408,991)               (69,425)
                                                                                    -----------           ------------
                                                                                    $   211,022            $   119,933
                                                                                    ===========            ===========
</TABLE>










                 SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.

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<PAGE>



                      PHYSICIANS INFORMATION EXCHANGE, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                            STATEMENTS OF OPERATIONS


<TABLE>
<CAPTION>

                                                                                                     PERIOD FROM
                                                                                                  NOVEMBER 10, 1995
                                         NINE MONTHS ENDED            THREE MONTHS ENDED       (DATE OF INCEPTION) TO
                                            SEPTEMBER 30, 1996        SEPTEMBER 30, 1996         SEPTEMBER 30, 1996
                                         ------------------------- -------------------------  ---------------------
                                                (UNAUDITED)               (UNAUDITED)                (UNAUDITED)

<S>                                                  <C>                      <C>                      <C>             
General and administrative                           $     738,174            $      341,206           $      1,107,599
                                                     =============            ==============           ================
expenses................................

Net loss................................              $  (738,174)             $   (341,206)             $  (1,107,599)
                                                      ============             =============             ==============

Net loss per common share...............             $      (0.01)            $       (0.00)
                                                     =============            ==============

Weighted average shares                                 75,328,372                75,445,117
                                                      ============              ============
outstanding.............................

</TABLE>































                 SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.


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<PAGE>



                      PHYSICIANS INFORMATION EXCHANGE, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                            STATEMENTS OF CASH FLOWS



<TABLE>
<CAPTION>

                                                                                                         PERIOD FROM
                                                                                                      NOVEMBER 10, 1995  
                                                                      NINE MONTHS ENDED            (DATE OF INCEPTION) TO
                                                                        SEPTEMBER 30, 1996           SEPTEMBER 30, 1996 
                                                                  -------------------------        --------------------
                                                                                (UNAUDITED)                (UNAUDITED)
Cash flows from developmental activities:
<S>                                                                             <C>                       <C>         
         Net loss...............................................                $ (738,174)               $(1,107,599)
         Adjustments to reconcile net loss to net cash
         used in
            developmental activities:
         Amortization...........................................                        150                        150
         Common stock issued for services.......................                         --                    125,000
         Common stock issued for payment of costs...............                         --                     75,000
         Changes in assets and liabilities:
                  Prepaid insurance.............................                   (16,233)                   (16,233)
                  Organization costs............................                         --                    (1,000)
                                                                             --------------               ------------
                       Net cash used in developmental
                  activities....................................                  (754,257)                  (924,682)
                                                                                 ----------                 ----------

Cash flows from financing activities:
         Sale of common stock...................................                    560,350                    660,350
         Deferred offering costs................................                  (142,809)                  (161,742)
         Accounts payable - stockholder.........................                    430,655                    620,013
                                                                                 ----------               ------------
                       Net cash provided by financing
                  activities....................................                    848,196                  1,118,621
                                                                                 ----------                -----------
Net change in cash and cash equivalents.........................                     93,939                    193,939
Cash and cash equivalents:
         Beginning of period....................................                    100,000                         --
                                                                                 ----------              -------------
         End of period..........................................                $   193,939                $   193,939
                                                                                ===========                ===========
</TABLE>





















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                                       -5-

<PAGE>




                 SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.

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<PAGE>


                      PHYSICIANS INFORMATION EXCHANGE, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                          NOTES TO FINANCIAL STATEMENTS
                               SEPTEMBER 30, 1996


1.       DESCRIPTION OF BUSINESS

         Physicians  Information  Exchange,  Inc.  ("the  Company" or "PIE") was
         formed  November  10,  1995.  The Company was formed to introduce a new
         technology  service  that saves the  physician  time  while  collecting
         clinical  information at the "point of care". This clinical information
         will provide structured outcomes and clinical data necessary to improve
         quality  care  and  lower  treatment  cost.  This  technology   service
         integrates the latest pen-based, handheld, data collection and wireless
         data transfer technologies with a robust knowledge database.

         The  preparation of financial  statements in conformity  with generally
         accepted  accounting  principles requires the use of estimates based on
         management's knowledge and experience. Due to their prospective nature,
         actual results could differ from those estimates.

         The  Company  filed  a  Form  SB-2  registration   statement  with  the
         Securities  and Exchange  Commission  which became  effective  July 17,
         1996.

2.       BASIS OF PRESENTATION

         The accompanying  unaudited financial  statements have been prepared in
         accordance with generally  accepted  accounting  principles for interim
         financial  information  and with the  instructions  to Form  10-QSB  of
         Regulation  S-B.  They do not include  all  information  and  footnotes
         required by  generally  accepted  accounting  principles  for  complete
         financial  statements.  However,  except as disclosed herein, there has
         been no material  change in the  information  disclosed in the notes to
         the  financial  statements  for the  period  ended  December  31,  1995
         included  in the  Company's  Form SB-2  filed with the  Securities  and
         Exchange Commission.  The interim unaudited financial statements should
         be read in conjunction with those financial  statements included in the
         Form SB-2. In the opinion of  Management,  all  adjustments  considered
         necessary  for  a  fair  presentation,   consisting  solely  of  normal
         recurring  adjustments,  have been made. Operating results for the nine
         month period ended September 30, 1996 are not necessarily indicative of
         the results that may be expected for the year ending December 31, 1996.





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<PAGE>



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


The following is  management's  discussion  and analysis of certain  significant
factors  which have  affected the  Company's  financial  condition and operating
results for the period included in the accompanying financial statements.

RESULTS OF OPERATIONS

Three Months Ended September 30, 1996

     The Company's general and administrative  expenses amounted to $341,206 for
     the three months ended  September 30, 1996 compared to $188,153  during the
     three  months ended June 30, 1996.  The  expenses  incurred  (approximately
     $275,000)  were   principally   related  to  payments  to  consultants  for
     development of the Company's business plan and software products.

Nine Months Ended September 30, 1996

     The Company's general and administrative  expenses amounted to $738,174 for
     the nine months ended  September  30, 1996.  Of this amount,  approximately
     $643,000  related  to  payments  to  consultants  for  development  of  the
     Company's business plan and software products.

LIQUIDITY AND CAPITAL RESOURCES

     The Company has funded its  development  activities  through  September 30,
     1996  principally  through sales of stock and borrowings from its principal
     shareholder.  The Company has raised  $595,000 from these  sources  through
     September  30, 1996,  and  management  believes  that such funds and future
     funds that the  Company  anticipates  raising  will be adequate to fund the
     Company's operations in the near to mid-term future.  However, there can be
     no assurance that the Company will be able to raise additional funds in the
     future,  which could have a material  adverse  effect on the operations and
     financial condition of the Company.



PART II.      OTHER INFORMATION

Item 6.       EXHIBITS AND REPORTS ON FORM 8-K

              (A)     Exhibits:

                         27           Financial Data Schedule.

              (B)     Reports on Form 8-K

                      No Current  Reports on Form 8-K were filed by the  Company
during this reporting period.

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<PAGE>



                                    SIGNATURE


         In accordance with the requirements of the Exchange Act, the registrant
caused  this  amended  report  to be signed  on its  behalf by the  undersigned,
thereunto duly authorized.


                                        PHYSICIANS INFORMATION EXCHANGE, INC.
                                        (REGISTRANT)



Date:   November 14, 1996               By:  /s/ W. Ernest Rutherford
                                             ------------------------
                                             W. Ernest Rutherford
                                            (Principal Financial Officer and 
                                             Duly Authorized Officer)



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                                       -9-

<PAGE>



                                INDEX TO EXHIBITS





                Exhibits                                 Exhibit Item
                   27                            Financial Data Schedule


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                                      -10-

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