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

                                   FORM 10-KSB

(Mark One)
   (X)  ANNUAL  REPORT  PURSUANT TO SECTION 13 OR 15 (D) OF THE  SECURITIES
         EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2000

                                       OR

   ( )  TRANSITION  REPORT PURSUANT TO SECTION 13 OR 15 (D) OF THE SECURITIES
        EXCHANGE ACT OF 1934 For the Transition period from _____ to ____


                         Commission File Number: 0-17600

            Common Goal Health Care Participating Mortgage Fund L.P.
        Exact name of small business issuer as specified in its charter)

            Delaware                                           52-1475268
  (State or other Jurisdiction                              (I.R.S. Employer
of incorporation or organization)                        Identification Number)

                                   215 Main Street
                               Penn Yan, New York 14527
                  Address of principal executive offices) (Zip Code)

                                    (315) 536-5985
                            (Issuer's telephone number)

Securities registered under Section 12(b) of the Exchange Act:  None

Securities  registered  under  Section  12(g)  of  the  Exchange  Act:   Limited
Partnership Interests

Check  whether the issuer (1) 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 that the registrant was required to file such reports),  and (2) has been
subject to such filing requirements for the past 90 days. YES [X] NO [ ]

<PAGE>
Check if there is no disclosure of delinquent  filers in response to Item 405 of
Regulation S-B contained in this Form, and no disclosure  will be contained,  to
the  best  of  registrant's   knowledge,  in  definitive  proxy  or  information
statements,  incorporated  by  reference  in Part III of this Form 10-KSB or any
amendment to this Form 10-KSB. [X]

Issuer's revenues for the fiscal year ended December 31, 2000 were $164,649.

The aggregate original sales price of the units of Limited Partnership  Interest
held by  non-affiliates  of the Registrant as of March 31, 2001 was  $19,114,110
(1,580 investors). As of March 31, 2001, there was no market for these Units and
no market is expected to develop.  The aggregate  sales price is accordingly not
necessarily indicative of the price at which these Units would trade.

                       DOCUMENTS INCORPORATED BY REFERENCE

Portions of the Prospectus of the Registrant  dated February 20, 1987, and filed
pursuant to Rule 424(b) and Rule 424(c)  under the  Securities  Act of 1933,  as
amended,  are  incorporated  by reference into Part III of this Annual Report on
Form 10-KSB.

<PAGE>
                                     PART I
                                     ------

Item 1.  Description of Business.

General.
-------

         Common  Goal  Health  Care   Participating   Mortgage  Fund  L.P.  (the
"Partnership")  was organized on August 20, 1986 as a limited  partnership under
the Delaware Revised Uniform Limited Partnership Act. The Partnership's  general
partners are Common Goal Capital  Group,  Inc.  ("Common  Goal" or the "Managing
General  Partner") and Common Goal Limited  Partnership I (the "Minority General
Partner")  (collectively,  the "General  Partners").  With  limited  exceptions,
Common  Goal  has  exclusive  control  over  the  business  of the  Partnership,
including  the  right  to  manage  the  Partnership's  assets.  The  Partnership
commenced  operations on July 21, 1987 after having accepted  subscriptions  for
more  than the  requisite  minimum  of  116,000  depositary  units  representing
beneficial assignments of limited partnership interests (the "Depositary Units")
in a public offering registered with the U.S. Securities and Exchange Commission
on Form  S-11  (the  "Public  Offering").  The  Partnership  raised  a total  of
$19,129,110  in the Public  Offering  which  terminated on February 20, 1989. On
June 25, 1990,  the Managing  General  Partner  caused all holders of Depositary
Units to be admitted to the  Partnership  as Limited  Partners  holding units of
limited partnership interest (the "Units").

     The  Partnership's  primary business has been to invest in or make mortgage
loans (the "Mortgage  Loans"),  comprised of a mix of first and junior  Mortgage
Loans,  secured by health  care-related  real  properties  owned by unaffiliated
entities.  The Partnership did not own or acquire real property. The Partnership
had one mortgage  loan in its  portfolio  at December  31, 2000.  On January 19,
2001, the Partnership received payment of $1,153,254, representing the remaining
principal  amount  outstanding  on that  mortgage  loan.  In order to induce the
borrower  to pay the  principal  amount  promptly,  the  Partnership  waived the
$10,091 of accrued interest. See "Last Outstanding Mortgage Loan," below. As the
Partnership has no remaining mortgage loans  outstanding,  it intends to wind up
its operations and to liquidate as soon as  practicable.  On March 30, 2001, the
Partnership  distributed  $1,304,439 to the Limited  Partners.  The  Partnership
intends to pay $400,952 to the General Partners in satisfaction of mortgage loan
acquisition  fees and accrued  management and loan servicing fees. The remaining
assets of the Partnership consist exclusively of cash and short-term investments
held in reserve for the payment of general and administrative  expenses relating
to its final  financial and tax reporting  requirements  and  extinguishing  the
remaining  liabilities of the  Partnership.  After  arranging for the payment of
such expenses and  liabilities,  all such assets will be distributed in the form
of cash to the Limited Partners and the Partnership will be dissolved.

     The  Partnership's  objectives in making  investments of the type described
above were:  (i) to preserve  and protect  the  Partnership's  capital;  (ii) to
provide quarterly distributions from investment income; and (iii) to provide for
potential long-term  appreciation of its Mortgage Loan investments,  principally
through  participation payable at maturity of the Mortgage Loan or upon the sale
or  refinancing  of the  underlying  property (the  "Participation").  See "Last
Outstanding  Mortgage Loan" below regarding  payment of the Participation on the
Partnership's last outstanding Mortgage Loan.

         Partnership  funds held pending  distribution  may be invested,  at the
direction  of  the  Managing  General  Partner,   in  United  States  government
securities,  certificates  of deposit of United States banks with a net worth of
at least  $20,000,000,  repurchase  agreements  covering the  securities  of the
United  States  government  or  governmental  agencies,   bankers'  acceptances,
commercial paper rated A-1 or better by Moody's Investors  Service,  Inc., money
market  funds having  assets in excess of  $100,000,000,  interest-bearing  time
deposits  in  banks  and  thrift   institutions  or  any  combination  of  these
investments.

         The  Partnership  conducts its  operations so that it is not subject to
regulation  under  the  Investment  Company  Act of  1940.  Generally,  the term
"investment  company" would not include the Partnership unless, after a one-year
period, the Partnership,  among other things,  were to be engaged primarily,  or
were to hold itself out as being engaged primarily, or were to propose to engage

<PAGE>
primarily,  in the business of investing,  reinvesting or trading in securities,
or if it were to have  more  than 40% of its total  assets,  excluding  cash and
government  securities,  invested  in  "investment  securities"  as that term is
defined  in the  Investment  Company  Act of  1940.  Based  on  this  test,  the
Partnership is not an investment Company.

     The Partnership is not subject to federal income taxes as the liability for
such taxes is that of the Partners rather than the Partnership.

         Last Outstanding Mortgage Loan.
         -------------------------------

     The Partnership's last outstanding mortgage loan (the "Joint Venture Loan")
was made in August  1990  through a joint  venture  (the "Joint  Venture")  with
Common Goal  Pension and Income Fund L.P. II (Common Goal II"),  an  affiliated,
publicly-offered   limited  partnership  with  investment  objectives  that  are
substantially identical to those of the Partnership.

     The Joint Venture,  CGI-CGII  Honeybrook  General  Partnership,  a Maryland
general  partnership  (the "Lender"),  entered into an Amended and Restated Loan
Agreement  (the "Loan  Agreement")  with Honey  Brook  Medical  Investors,  Ltd.
("Medical"),  Honey Brook Retirement Investors,  Ltd. ("Retirement"),  Forest L.
Preston   ("Preston"),   Fred  L.  Lester  ("Lester")  and  Charles  E.  Jabaley
("Jabaley")  (collectively,  the  "Borrowers").  Medical holds title to property
referred to as Hickory House  Nursing Home located in Honey Brook,  Pennsylvania
("Hickory  House").  Retirement  holds  title  to the  property  referred  to as
Heatherwood  Retirement  Center  also  located  in  Honey  Brook,   Pennsylvania
("Heatherwood").  Life  Care  Centers  of  America,  Inc.  ("Life  Care") or its
affiliates operate Hickory House and Heatherwood.

         The Loan  Agreement  provided  for a Loan in the  principal  amount  of
$3,430,113.95,  which  initially was funded by the  Partnership.  Common Goal II
subsequently  funded $95,600 of the loan principal in 1991,  which decreased the
Partnership's  portion of the Joint  Venture  Loan to  $3,334,514.  The loan was
originally  collateralized  by an absolute  assignment of all of the general and
limited  partnership  interests in Medical and Retirement,  a Junior Mortgage on
Hickory  House;  and guaranties of Preston,  Lester,  Jabaley and Life Care. The
Loan Agreement provided for Basic Interest of 13.7% per annum payable monthly in
advance at 12% per annum with 1.7%  deferred and paid  annually  and  Additional
Interest  consisting  of two  components  (participation  in gross  revenues and
participation in appreciation).

         On December 3, 1993, Lender and Borrowers executed a First Amendment to
the Amended and Restated  Loan  Agreement  (the "First  Amendment")  pursuant to
which the  description  of the  Collateral was amended to eliminate the Mortgage
and the calculation of Additional  Interest was amended to provide that the fair
market value of the Hickory  House  portion of the  Collateral  was deemed to be
$6,400,000.  Thus,  while the Mortgage on Hickory  House was released and a fair
market  value  was  attributed  to that  property  (for  purpose  of  subsequent
calculation Additional Interest), Lender continued to be entitled to participate
in gross revenues and appreciation in Heatherwood and Hickory House. At December
31,  1999 and  1998,  the  Joint  Venture  Loan had an  outstanding  balance  of
$1,618,254,  with the Partnership's  portion being approximately  $1,567,664 and
Common Goal II's portion being approximately $50,590.

         In January, 2000, Borrowers requested an extension of the maturity date
to March 31, 2000. Lender agreed provided that Borrowers paid down the principal
balance of the loan by  $500,000,  which amount was paid in February  2000.  The
amount was applied first to pay of the $50,590  principal due Common Goal II and
the balance of $449,410 was applied to pay down the  Partnership's  principal to
$1,168,844. On April 11, 2000, the Lender and the Borrowers agreed that $235,000
of Additional  Interest was due, of which $200,000 would be paid by May 5, 2000,
and the $35,000  balance would be paid when the loan matured on January 1, 2001.
On  January  19,  2001,  the  Partnership  received  a  payment  of  $1,153,254,
representing the remaining  principal amount  outstanding on that mortgage loan.
In order to induce  the  borrower  to pay the  principal  amount  promptly,  the
Partnership waived $10,091 of accrued interest.

<PAGE>
Partnership Allocation of Income and Loss and Distribution.
----------------------------------------------------------

         Net  Income  and  Net  Loss.  Net  income  (except  with  respect  to a
Disposition,  which  includes any  Partnership  transaction  not in the ordinary
course of its business, including, without limitation,  collections of principal
payments,  equity participation  payments,  prepayments,  prepayment  penalties,
sales,  exchanges,  foreclosures or other dispositions of Mortgage Loans held by
the Partnership,  recoveries of damage awards and insurance proceeds (other than
the receipt of subscriptions  for Units, all forms of interest payments when due
on Mortgage Loans or business or rental  interruption  insurance  proceeds)) and
net loss of the Partnership are allocated 98% to Limited  Partners and 2% to the
General  Partners.  Net income  arising from a  Disposition  is allocated 98% to
Limited  Partners  and 2% to the General  Partners to the extent of any negative
balances in the  capital  accounts  of the  Limited  Partners,  and then 100% to
Limited Partners in an amount necessary to bring the Limited  Partners'  capital
accounts up to an amount equal to their Original Contributions,  which means the
amount of $10.00 for each Unit less the return of any amount of uninvested funds
returned,  as  defined  in the  prospectus,  plus  the 11% per  annum  preferred
cumulative  return thereon (less previous  distributions to the Limited Partners
in  repayment  of such  amounts).  The  remainder  of such net  income  shall be
allocated 85% to the Limited Partners and 15% to the General Partners.

         Distributions of Cash From  Operations.  Distributions of Adjusted Cash
From Operations,  defined as all receipts of interest payments on Mortgage Loans
less cash receipts used to pay  operating  expenses and to repurchase  any Units
(Cash Flow) less any amount set aside for the restoration or creation of working
capital  reserves,  are  distributed  98% to the Limited  Partners and 2% to the
General Partners, and are apportioned quarterly among Limited Partners of record
as of the record date declared  within 30 days after the end of each quarter and
are paid  quarterly.  No  distributions  of Adjusted Cash From  Operations  with
respect  to any  calendar  year  are  made to the  General  Partners  until  the
following occurs:

          First,  distributions  to the Limited  Partners equal to the 8% annual
          cumulative return on their Adjusted Contributions, defined as Original
          Contributions  attributable  to a Unit,  reduced  by the total of cash
          distributed  from  Disposition   Proceeds  and  from  working  capital
          reserves,  for such year (plus any amounts  accrued  from prior years)
          have been made to the Limited Partners; and

          Second,  payment of all previously  subordinated  management  fees, if
          any, have been made.

         Thereafter,  all previously subordinated amounts payable to the General
Partners  with respect to their 2% interest are paid in full to the extent funds
are available,  and if not  available,  are deferred and paid out of Disposition
Proceeds, defined as receipts from Dispositions net of related expenses, amounts
necessary for the payment of debts and  obligations of the  Partnership  and any
amount set aside for working capital  reserves.  The Partnership has been making
distributions  to the  Limited  Partners  in excess of the 8% annual  cumulative
return on Adjusted Contributions.

         Distributions of Disposition Proceeds. The Managing General Partner has
the right to reinvest or distribute all Disposition Proceeds, through the end of
the   eleventh   year  after  the  date  of  the   Prospectus.   Non-liquidating
distributions of Disposition  Proceeds are distributed in the following order of
priority, except as otherwise required by law:

          First,  100% to the Limited  Partners until the Limited  Partners have
          received  an  amount  which,  when  added  to prior  distributions  of
          Disposition  Proceeds  and cash from  reserves  attributable  thereto,
          equals the Original Contributions of the Limited Partners;

          Second,  100% to the Limited  Partners until each Limited  Partner has
          received an amount  which,  when added to all prior  distributions  to
          Limited Partners from all sources  (including  prior  distributions in
          satisfaction  of  the  8%  annual   cumulative  return  but  excluding
          distributions  pursuant to above),  equals the 11% per annum preferred
          cumulative  return on their Adjusted  Contributions,  (calculated from
          the first day of the calendar quarter  succeeding the quarter in which
          Capital Contributions are received);

<PAGE>
          Third,  100% to the General Partners until they have been paid 100% of
          the subordinated  portion,  if any, of (a) the Partnership  Management
          Fee, if any,  and then (b) their 2%  interest  in  Adjusted  Cash From
          Operations; and

          Fourth,  the  remainder,  85% to the Limited  Partners  and 15% to the
          General Partners.

         Dissolution and Returns of Principal. Since it was the intention of the
Managing General Partner to liquidate the Partnership's  assets between 1999 and
2004,  the Managing  General  Partner has not  reinvested  loan  proceeds in new
Mortgage Loans. The Partnership had one remaining mortgage loan in its portfolio
at December 31, 2000. On January 19, 2001, the Partnership received a payment of
$1,153,254,  representing  the remaining  principal  amount  outstanding on that
mortgage  loan.  In order to induce the  borrower  to pay the  principal  amount
promptly, the Partnership waived $10,091 of accrued interest. As the Partnership
has  no  remaining  mortgage  loans  outstanding,  it  intends  to  wind  up its
operations  and to liquidate  as soon as  practicable.  On March 30,  2001,  the
Partnership  distributed  $1,304,439 to the Limited  Partners.  The  Partnership
intends to pay $400,952 to the General Partners in satisfaction of mortgage loan
acquisition  fees and mortgage loan servicing and management fees. The remaining
assets of the Partnership consist exclusively of cash and short-term investments
held in reserve for the payment of general and administrative  expenses relating
to its final  financial and tax reporting  requirements  and  extinguishing  the
remaining  liabilities of the  Partnership.  After  arranging for the payment of
such expenses and  liabilities,  all such assets will be distributed in the form
of cash to the Limited Partners and the Partnership will be dissolved.

          Proceeds from the liquidation  shall be applied and distributed in the
          following order:

          First,  to the payment of creditors of the  Partnership  but excluding
          secured  creditors  whose  obligations  will be assumed  or  otherwise
          transferred on the liquidation of Partnership assets; and

          Second,  after  allowance  for the  expenses  of  liquidation  and the
          setting  up of any  reserves  for  contingencies  which  the  Managing
          General  Partner  considers  necessary,  to the General  Partners  and
          Limited  Partners in  proportion  to and to the extent of the positive
          balances in their capital  accounts,  after net income or loss arising
          from  a  Disposition  has  been  allocated,   with  any  excess  being
          distributed   in   accordance   with  the   order  of   priority   for
          non-liquidating distributions.

Item 2.       Description of Property.

         The Partnership owned no real property as of December 31, 2000.

Item 3.       Legal Proceedings.

         The Partnership is not a party to any litigation.

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

         No matters were submitted to a vote of security holders during the last
         quarter of 2000.

                                     PART II

Item 5.  Market for Units of Limited Partnership Interest  and  Related Security
         Holder Matters.

         The Units are not readily  transferable.  There is no public market for
the Units and it is not  currently  expected  that any will  develop.  There are
restrictions upon the  transferability of Units,  including the requirement that
the General  Partners consent to any transferee  becoming a substituted  Limited
Partner (which consent may be granted or withheld at the sole  discretion of the
General  Partners).  In addition,  restrictions on transfer may be imposed under
state securities laws.

<PAGE>
     The  Revenue  Act of 1987  contains  provisions  which may have an  adverse
impact  on  investors  in  certain   "publicly  traded   partnerships."  If  the
Partnership  were to be classified as a "publicly  traded  partnership,"  income
attributable  to the Units would be  characterized  as portfolio  income and the
gross  income  attributable  to Units  acquired  by  tax-exempt  entities  after
December 17, 1987, would be unrelated business income,  with the result that the
Units could be less marketable.  The General  Partners will, if necessary,  take
appropriate  steps to ensure that the Partnership will not be deemed a "publicly
traded partnership."

     At March  31,  2001,  1,911,411  Units  were  outstanding  and were held by
approximately 1,580 holders of record.

     The Partnership made  distributions to Limited Partners of $500,000 or $.26
per Unit during 2000. The Partnership  made no distributions to Limited Partners
during 1999.

Item 6.       Management's Discussion and Analysis or Plan of Operation.

     Liquidity  and Capital  Resources.  Common  Goal Health Care  Participating
Mortgage Fund L.P., a Delaware  limited  partnership  (the  "Partnership"),  was
formed to make mortgage  loans  secured by real  property  comprised of a mix of
first and junior Mortgage Loans, secured by health care related properties.

     Partnership  assets  decreased  to  $1,881,071  at  December  31, 2000 from
$2,262,219  at December 31, 1999.  The decrease  from 1999 to 2000  ($381,148 or
approximately 17%) resulted primarily from an decrease of mortgage receivable by
$642,055,  an increase of cash and cash  equivalents by $346,140,  a decrease of
accrued  interest   receivable  by  $85,233.   As  of  December  31,  2000,  the
Partnership's  loan  portfolio  consisted of one mortgage  loan,  the  aggregate
outstanding principal balance of which was $1,153,254.

         The Partnership structured its Mortgage Loans to provide for payment of
quarterly   distributions  from  investment  income.  The  Partnership  had  one
remaining  mortgage  loan in its  portfolio at December 31, 2000. On January 19,
2001,  the  Partnership  received  a payment  of  $1,153,254,  representing  the
remaining principal amount outstanding on that mortgage loan. In order to induce
the borrower to pay the principal  promptly,  the Partnership  waived $10,091 of
accrued   interest.   As  the  Partnership  has  no  remaining   mortgage  loans
outstanding,  it intends to wind up its  operations  and to  liquidate as soon a
practicable.  Cumulative  distributions  made to the Limited  Partners since the
inception of the Partnership total approximately $27,055,000, which represents a
return of the Limited  Partners  Original  Contributions  of $19,129,110 plus an
amount in excess of the 8% Annual Cumulative Preferred Return (as such terms are
defined in the  Partnership's  Second Amended and Restated  Agreement of Limited
Partnership).  Reference is made to "Item 1.  Description  of Business"  and the
"Notes  to the  Financial  Statements"  in "Item 7.  Financial  Statements"  for
further information regarding such Mortgage Loan investments.

         The Partnership's  balance of cash and cash equivalents at December 31,
2000 and  1999 was  $727,817  and  $381,677  respectively,  which  consisted  of
operating  cash and  working  capital  reserves.  The  increase in cash and cash
equivalents  from  December  31, 1999  resulted  from net income of  $43,371,  a
decrease in mortgage interest  receivable and mortgage  receivable and offset by
distributions to Limited Partners.  Dividend  distributions noted as a return of
capital  represent  those  distributions  which are in excess  of  current  year
earnings.  The Partnership is required to maintain  reserves not less than 1% of
gross  offering  proceeds (not less than  $191,291),  but currently  maintains a
reserve in excess of that amount,  $727,817 at December 31, 2000.  The amount of
cash and cash equivalents  currently  maintained by the Partnership is primarily
the result of proceeds from the repayment of mortgage loans.

         Results of Operations.  The  Partnership  was organized in August 1986.
The Partnership  funded seven Mortgage Loans between 1987 and 1990,  including a
loan made by a venture  between  the  Partnership  and Common  Goal II in August
1990. At December 31, 2000,  the  Partnership  had one remaining  Mortgage Loan.
Since  commencement  of operations  in July of 1987,  the  Partnership  invested
available   funds  (funds  not  invested  in  Mortgage   Loans)  in   short-term
investments.  The interest  earned on these  investments  has been less than the
interest rates achievable on Mortgage Loans made by the Partnership.

<PAGE>
         During the years ended December 31, 2000 and 1999 the  Partnership  had
net income of $43,371 and  $166,922,  based on total  revenues  of $164,649  and
$260,216,  and  total  expenses  of  $121,278  and  $93,294  respectively.   The
Partnership's  net income per Limited Partner Unit was $.02 per Unit in 2000 and
$.09 per Unit in 1999. The Partnership made distributions to Limited Partners of
$.26 per Unit in 2000, and no distributions to Limited Partners in 1999.

         Expenses  increased in 2000 by $27,984 primarily because of an increase
of $30,843 in professional fees and a decrease of $2,813 in management fees.

         Additionally,  under  the  terms  of  the  Partnership  agreement,  the
Partnership  is required to reimburse the Managing  General  Partner for certain
operating  expenses  paid on behalf of the  Partnership.  In 2000 and 1999,  the
Managing  General  Partner was  reimbursed  by the  Partnership  for $99,304 and
$66,567, of these expenses,  respectively. The Managing General Partner believes
that such charges have not  adversely  affected the current yield to the Limited
Partners.

         Subsequent  Event.  The Partnership had one remaining  mortgage loan in
its portfolio at December 31 2000. On January 19, 2001, the Partnership received
a payment of $1,153,254, representing the remaining principal amount outstanding
on that  mortgage  loan.  In order to induce the  borrower to pay the  principal
amount  promptly,  the Partnership  waived $10,091 of accrued  interest.  As the
Partnership has no remaining mortgage loans outstanding,,  it intends to wind up
its operations and to liquidate as soon as  practicable.  On March 30, 2001, the
Partnership  distributed  $1,304,439 to the Limited  Partners.  The  Partnership
intends to pay $400,952 to the General Partners in satisfaction of mortgage loan
acquisition  fees and mortgage loan servicing and management fees. The remaining
assets of the Partnership consist exclusively of cash and short-term investments
held in reserve for the payment of general and administrative  expenses relating
to its final  financial and tax reporting  requirements  and  extinguishing  the
remaining  liabilities of the  Partnership.  After  arranging for the payment of
such expenses and  liabilities,  all such assets will be distributed in the form
of cash to the Limited Partners and the Partnership will be dissolved.

         Some  statements  in this Form  10-KSB are  forward  looking and actual
results may differ materially from those stated. As discussed herein,  among the
factors  that may affect  actual  results  are  changes in  expenses  or capital
expenditures.

Item 7.       Financial Statements.

<PAGE>
                             COMMON GOAL HEALTH CARE
                        PARTICIPATING MORTGAGE FUND L.P.

                              Financial Statements
                        and Independent Auditors' Report
                                December 31, 2000
<PAGE>
            COMMON GOAL HEALTH CARE PARTICIPATING MORTGAGE FUND L.P.

                                Table of Contents
                                -----------------

                                                                          Page
                                                                          ----

Independent Auditors' Report..............................................F - 1

Financial Statements

        Balance Sheet.....................................................F - 2

        Statements of Income..............................................F - 3

        Statements of Partners' Capital...................................F - 4

        Statements of Cash Flows..........................................F - 5

Notes to Financial Statements.............................................F - 6


<PAGE>
                          INDEPENDENT AUDITORS' REPORT

To the Partners
Common Goal Health Care

 Participating Mortgage Fund L.P.
Penn Yan, New York


We have  audited  the  accompanying  balance  sheet of Common  Goal  Health Care
Participating  Mortgage Fund L.P. (a Delware limited partnership) as of December
31, 2000 and the related statements of income,  partners' capital and cash flows
for  each of the  years in the  two-year  period  then  ended.  These  financial
statements are the  responsibility  of the management of Common Goal Health Care
Participating  Mortgage Fund L.P. 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 audit 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 financial  statements  referred to above present fairly, in
all  material  respects,  the  financial  position  of Common  Goal  Health Care
Participating  Mortgage Fund L.P. as of December 31, 2000 and the results of its
operations  and cash  flows  for each of the years in the two year  period  then
ended in conformity with generally accepted accounting principles.

          As described in Note 4, Common Goal Health Care Participating Mortgage
          Fund, L.P.  intends to commence an orderly  dissolution and winding-up
          of the partnership.



                                         Ehrhardt Keefe Steiner & Hottman PC

February 22, 2001
Denver, Colorado

                                      F-1
<PAGE>
            COMMON GOAL HEALTH CARE PARTICIPATING MORTGAGE FUND L.P.

                                  Balance Sheet
                                December 31, 2000

                                     Assets

Cash and cash equivalents                              $       727,817
Mortgage loan receivable                                     1,153,254
                                                       ---------------

                                                       $     1,881,071

                        Liabilities and Partners' Capital

Due to affiliates                                              185,990
Deferred revenue                                               227,645
                                                        --------------
     Total liabilities                                         413,635

Partners' capital
     General partners                                           71,409
     Limited partners                                        1,396,027
                                                        --------------
         Total partners' capital                             1,467,436
                                                        --------------

                                                             1,881,071

                       See notes to financial statements.

                                      F-2
<PAGE>
           COMMON GOAL HEALTH CARE PARTICIPATING MORTGAGE FUND L.P.

                              Statements of Income
<TABLE>
<CAPTION>
                                                               For the Years Ended
                                                                    December 31,
                                                      -------------------------------------
                                                            2000                 1999
                                                      -------------          -----------
<S>                                                     <C>                  <C>
Revenue
    Interest income                                     $   164,649          $   260,216
                                                        -----------          -----------
       Total revenues                                       164,649              260,216
                                                        -----------          -----------

Expenses
    Professional fees                                        95,358               64,515
    Fees to affiliates
       Management                                            18,790               21,603
       Mortgage servicing                                     3,184                3,919
    Other                                                     3,946                3,257
                                                        -----------          -----------
                                                            121,278               93,294
                                                        -----------          -----------

Net income                                              $    43,371          $   166,922
                                                        ===========          ===========

Net income allocated to general partners                $       867          $     3,338
Net income allocated to limited partners                     42,504              163,584
                                                        -----------          -----------

                                                        $    43,371          $   166,922
                                                        ===========          ===========

Basic earnings per limited partner unit                 $      .02           $      .09
                                                        ==========           ==========

Weighted average limited partner units outstanding        1,911,411            1,911,411
                                                        ===========          ===========
</TABLE>

                       See notes to financial statements.
                                      F-3
<PAGE>
            COMMON GOAL HEALTH CARE PARTICIPATING MORTGAGE FUND L.P.

                         Statements of Partners' Capital
                 For the Years Ended December 31, 2000 and 1999
<TABLE>
<CAPTION>
                                                                                        Total
                                                        General        Limited         Partners'
                                                       Partners       Partners         Capital
                                                       --------       --------         -------

<S>                                                   <C>            <C>             <C>
Balance at December 31, 1998                          $   67,204     $ 1,689,939     $ 1,757,143

Net income                                                 3,338         163,584         166,922
                                                      ----------     -----------     -----------

Balance at December 31, 1999                              70,542       1,853,523       1,924,065

Distributions to limited partners ($.26 per unit)                       (500,000)       (500,000)

Net income                                                   867          42,504          43,371
                                                      ----------   -------------   -------------

Balance at December 31, 2000                          $   71,409     $ 1,396,027     $ 1,467,436
                                                      ==========     ===========     ===========
</TABLE>

                       See notes to financial statements.

                                      F-4
<PAGE>
            COMMON GOAL HEALTH CARE PARTICIPATING MORTGAGE FUND L.P.

                            Statements of Cash Flows
<TABLE>
<CAPTION>

                                                                                         For the Years Ended
                                                                                             December 31,
                                                                                  -------------------------------
                                                                                      2000                 1999
                                                                                  -----------         -----------
<S>                                                                                <C>                 <C>
Cash flows from operating activities
     Net income                                                                    $   43,371          $  166,922
                                                                                   ----------          ----------
     Adjustments to reconcile net income to net cash provided by
       operating  activities -
         Decrease (increase) in mortgage receivable                                   642,055            (227,645)
         Decrease (increase) in interest and other receivables                         85,233             (58,584)
         Decrease in accounts payable and accrued expenses                                  -              (4,000)
         Increase in due to affiliates                                                 75,481              35,852
         Increase in deferred revenue                                                       -             227,645
                                                                                   ----------          ----------
                                                                                      802,769             (26,732)
                                                                                   ----------          ----------
                  Net cash provided by operating activities                           846,140             140,190
                                                                                   ----------          ----------

Cash flows from financing activities
     Distributions and returns of principal to partners                              (500,000)                 -
                                                                                   ----------          ---------
                  Net cash used in financing activities                              (500,000)                 -
                                                                                   ----------          ---------
Net increase (decrease) in cash and cash equivalents                                  346,140             140,190

Cash and cash equivalents, beginning of year                                          381,677             241,487
                                                                                   ----------          ----------

Cash and cash equivalents, end of year                                             $  727,817          $  381,677
                                                                                   ==========          ==========

Supplemental disclosure of cash flow information:
    Interest paid was $0 for 2000 and 1999.

        Income taxes paid were $0 for 2000 and 1999.
</TABLE>
                       See notes to financial statements.

                                      F-5
<PAGE>
Note 1 - Organization and Summary of Significant Accounting Policies
--------------------------------------------------------------------

Common Goal Health Care Participating  Mortgage Fund L.P. (the  Partnership),  a
Delaware  Limited  Partnership,  was formed on August 20,  1986 to invest in and
make  mortgage  loans to third parties and  affiliates  involved in health care.
Having sold more than the specified minimum of 116,000 units  ($1,160,000),  the
Partnership  commenced  operations on July 21, 1987. The Partnership's  offering
terminated on February 20, 1989, with the Partnership  having sold the specified
maximum of 1,911,411  units  ($19,114,110).  There is no active  public  trading
market for the units. At December 31, 2000, there were 1,580 unit holders.

The General  Partners  include  Common Goal Capital  Group,  Inc.,  the Managing
General  Partner,  and Common Goal Limited  Partnership I, the Minority  General
Partner. Under the terms of the Partnership agreement,  the General Partners are
not required to make any additional capital  contributions  except under certain
limited circumstances upon termination of the Partnership.

Under the term of the  Partnership  agreement,  the  Partnership  reimbursed the
General Partners for certain offering and  organizational  expenses  incurred in
connection with the issuance and distribution of the units in an amount fixed at
3.5% of gross  offering  proceeds.  These offering and  organizational  expenses
excluded   broker/dealer   selling  commissions  and  included  accountable  due
diligence expense  reimbursements.  Broker/dealer selling commissions of 9.5% of
gross proceeds were also paid by the Partnership.  Common Goal Securities,  Inc.
(CGSI), an affiliate acting as managing dealer,  received selling commissions of
2% of the gross offering  proceeds and an additional  7.5% of the purchase price
of all units sold directly by CGSI.  Additionally,  CGSI was  reimbursed for all
expenses  incurred in  connection  with the offering and also received an amount
equal to .5% of the gross offering proceeds for accountable  expenses.  Offering
and organizational expenses were recorded as a reduction of partners' capital.

Use of Estimates
----------------

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.

For entities  investing in and making mortgage loans to businesses in the health
care industry,  certain  inherent  risks may increase the  possibility of actual
results  differing from  management's  estimates.  These inherent risks include,
among other things, the following:

o        Substantial  dependence on revenues derived from  reimbursement by the
         Federal Medicare and state Medicaid programs;

                                       F-6
<PAGE>
Note 1 - Organization and Summary of Significant Accounting Policies (continued)

o        Government  regulation,  government budgetary constraints and proposed
         legislative and regulatory changes; and

o        Lawsuits alleging malpractice and related claims.

Partnership Management Fees and Operating Expenses
--------------------------------------------------

Under the terms of the Partnership agreement, the Partnership is required to pay
a quarterly  management  fee to the Managing  General  Partner equal to .75% per
annum of adjusted contributions,  as defined. Additionally, a mortgage servicing
fee  equal to .25% per  annum of the  Partnership's  outstanding  mortgage  loan
principal amount is to be paid to Common Goal Mortgage Company,  an affiliate of
the General Partners.

Additionally,  under the terms of the Partnership agreement,  the Partnership is
required to  reimburse  the  Managing  General  Partner  for  certain  operating
expenses  paid on behalf of the  Partnership.  In 2000 and  1999,  the  Managing
General  Partner was  reimbursed  by the  Partnership  for $99,304 and  $66,567,
respectively,  of these expenses.  The remaining  expenses were paid directly by
the Partnership.

Partnership Allocation of Income and Loss and Distributions
-----------------------------------------------------------

Net Income and Net Losses

Net income (except with respect to a Disposition, as defined, which includes any
Partnership  transaction not in the ordinary  course of its business,  including
without  limitation,  collections of principal  payments,  equity  participation
payments,  prepayments,  prepayment penalties,  sales,  exchanges,  foreclosures
other  dispositions  of Mortgage  Loans held by the  Partnership,  recoveries of
damage awards and insurance  proceeds  (other than the receipt of  subscriptions
for Units, all forms of interest payments when due on Mortgage Loans or business
or rental interruption  insurance proceeds),  and net loss of the Partnership is
allocated 98% to Limited Partners and 2% to the General Partners.

Net income arising from a Disposition  is allocated 98% to Limited  Partners and
2% to the General Partners to the extent of any negative balances in the capital
accounts of the Limited Partners, and then 100% to Limited Partners in an amount
necessary to bring the Limited  Partners' capital accounts up to an amount equal
to their original  contributions,  as defined,  which means the amount of $10.00
for each unit less the return of any amount of  uninvested  funds  returned,  as
defined,  plus the 11% per  annum  preferred  cumulative  return  thereon  (less
previous  distributions  to the Limited  Partners in repayment of such amounts).
Remaining  net income is  allocated  85% to the Limited  Partners  and 5% to the
General Partners.

                                       F-7
<PAGE>
Note 1 - Organization and Summary of Significant Accounting Policies (continued)
--------------------------------------------------------------------------------

Partnership Allocation of Income and Loss and Distributions (continued)
-----------------------------------------------------------------------

Net Income and Net Loss (continued)

Distributions  of  adjusted  cash from  operations,  defined as all  receipts of
interest  payments on mortgage  loans less cash  receipts  used to pay operating
expenses and to  repurchase  any units (cash flow) less any amount set aside for
the restoration or creation of working capital reserves,  are distributed 98% to
the  limited  partners  and 2% to the  general  partners,  and  are  apportioned
quarterly among limited partners of record as of the record date declared within
30 days after the end of each quarter and are paid quarterly.  No  distributions
of adjusted cash from  operations  with respect to any calendar year are made to
the general partners until the following occurs:

     First,  distributions  to the  limited  partners  equal  to  the 8%  annual
     cumulative  return on their  adjusted  contributions  , defined as original
     contributions  attributable  to a  unit,  reduced  by  the  total  of  cash
     distributed  from disposition  proceeds and from working capital  reserves,
     for such year (plus any amounts accrued from prior years) have been made to
     the limited partners; and

     Second,  payments of all previously  subordinated  management fees, if any,
     have been made.

Thereafter,  all previously subordinated amounts payable to the general partners
with  respect  to their 2%  interest  are paid in full to the  extent  funds are
available,  and if not  available,  are  deferred  and paid  out of  disposition
proceeds, defined as receipts from dispositions net of related expenses, amounts
necessary for the payment of debts and  obligations of the  partnership  and any
amount set aside for working capital  reserves.  The partnership has been making
distributions  to the  limited  partners  in excess of the 8% annual  cumulative
return on adjusted contributions.

Distributions of Disposition Proceeds
-------------------------------------

The  managing  general  partner  has the right to  reinvest  or  distribute  all
disposition proceeds, through the end of the eleventh year after the date of the
prospectus, which is 1987. Non-liquidating distributions of disposition proceeds
are distributed in the following order of priority, except as otherwise required
by law:

     First,  100% to the  limited  partners  until  the  limited  partners  have
     received an amount which, when added to prior  distributions of disposition
     proceeds and cash from reserves attributable  thereto,  equals the original
     contributions of the limited partners;

                                       F-8
<PAGE>
Note 1 - Organization and Summary of Significant Accounting Policies (continued)
--------------------------------------------------------------------------------

Distributions of Disposition Proceeds (continued)
-------------------------------------------------

     Second,  100% to the  limited  partners  until  each  limited  partner  has
     received an amount which, when added to all prior  distributions to limited
     partners from all sources (including prior distributions in satisfaction of
     the 8% annual  cumulative  return but excluding  distributions  pursuant to
     above),  equals  the 11% per  annum  preferred  cumulative  return on their
     adjusted  contributions,  (calculated  from the first  day of the  calendar
     quarter  succeeding  the  quarter  in  which  capital   contributions  were
     received);

     Third,  100% to the general  partners until they have been paid 100% of the
     subordinated  portion,  if any, of (a) the  partnership  management fee, if
     any, and then (b) their 2% interest in adjusted cash from operations; and

     Fourth,  the remainder,  85% to the limited partners and 15% to the general
     partners.

Dissolution and Returns of Principal
------------------------------------

Since it was the  intention of the  managing  general  partner to liquidate  the
Partnership's  assets between 1999 and 2004, the managing  general  partner will
not  reinvest  loan  proceeds in new  mortgage  loans.  The  partnership's  last
remaining mortgage loan, the joint venture loan, will mature on January 1, 2001.
The partnership expects to commence an orderly liquidation in thereafter.

Proceeds from the  liquidation  will be applied and distributed in the following
order:

     First, to the payment of creditors of the partnership but excluding secured
     creditors whose obligations will be assumed or otherwise transferred on the
     liquidation of partnership assets; and

     Second,  after allowance for the expenses of liquidation and the setting up
     of any  reserves  for  contingencies  which the  managing  general  partner
     considers  necessary,  to the  general  partners  and  limited  partners in
     proportion  to and to the extent of the positive  balances in their capital
     accounts,  after net income or loss  arising  from a  disposition  has been
     allocated,  with any excess being  distributed in accordance with the order
     of priority for non-liquidating distributions.

Notwithstanding  anything to the contrary,  the managing general partner has the
right to defer  liquidation if, in the opinion of the managing  general partner,
the sale of  partnership  assets  in  liquidation  would  result  in a  material
underrealization on the Partnership's  assets. The managing general partner also
has the right to determine  the rate at which  returns of principal  (returns of
original contributions) are distributed to the limited partners.

                                       F-9
<PAGE>
Note 1 - Organization and Summary of Significant Accounting Policies (continued)
--------------------------------------------------------------------------------

Allowance for Losses
--------------------

An allowance for loan losses is provided,  if necessary,  at a level,  which the
partnership's  management  considers  adequate based upon an evaluation of known
and inherent risks in the loan  portfolio.  There was no allowance for losses at
December 31, 2000 and 1999.

Federal Income Taxes
--------------------

No income tax  provision has been  included in the  financial  statements  since
income or loss of the  Partnership is required to be reported by the partners on
their respective income tax returns. Net income for financial reporting purposes
did not differ  from net income for  federal  income tax  purposes  for the year
ended December 31, 2000 and 1999.

Basic Earnings Per Limited Partner Unit
---------------------------------------

Basic  earnings  per  limited  partner  unit is computed  based on the  weighted
average  limited  partner units  outstanding  for the year dividend into the net
income applicable to the Limited Partners.

There were no dilutive limited partnership units during 2000 or 1999.

Cash and Cash Equivalents
-------------------------

The partnership  classifies all short-term  investments with maturities of three
months or less at the date of purchase as cash equivalents.

Concentration of Credit Risk
----------------------------

The  Partnership's  financial  instruments that are exposed to concentrations of
credit risk consist  primarily of cash and cash  equivalents,  accrued  interest
receivable  and a mortgage  loan  receivable.  The  Partnership  maintains  cash
balances in bank deposit accounts, which, at times, may exceed federally insured
limits.  At  December  31,  2000,  the  Partnership's  cash and cash  equivalent
balances were in excess of such limits by approximately $628,000.

The entire accrued interest  receivable and mortgage loan receivable  balance at
December 31, 2000 and 1999 are from a ten year,  13.7% mortgage loan provided by
the Partnership to Honey Brook Medical Investors, Ltd.

                                      F-10
<PAGE>
Note 2 - Mortgage Loan Receivable
---------------------------------

Mortgage loan receivable is as follows:
<TABLE>
<CAPTION>
                                  Basic                                                         Face and
                                 Interest               Maturity               Prior             Carrying
    Description                    Rate                   Date                 Liens              Amount
------------------------     ----------------   ----------------------     --------------       ----------

<S>                                <C>                      <C>            <C>                <C>
Honey Brook loan                   13.7%            January 1, 2001        $    8,810,000     $    1,153,254
                                                                           ==============     ==============
                                                (repaid February 1, 2001)
</TABLE>

The Honey Brook loan is a second  mortgage loan secured by a health care related
real property.  Interest is payable monthly and the principal  balance is due at
maturity.  The loan provides for the payment of additional  interest  based upon
gross revenues of the property and the payment of a participation interest equal
to a percentage of the increase in the fair value of the underlying  facility at
maturity or  redemption,  or pursuant to any sale of the  facility,  as defined.
Participation  interests  are  recorded as revenue  when they are  determinable,
generally at maturity or  redemption  of the loan or pursuant to any sale of the
facility. The property is subject to a first mortgage lien.

On January 1, 2000,  the Honey  Brook loan  matured  and was  renegotiated.  The
Partnership and Common Goal Health Care Pension and Income Fund L.P. II received
$500,000 in February 2000 and  renegotiated  the loan terms,  which  included an
increase  in  the  loan  balance  of  approximately   $235,000   representing  a
participation  in the  increase  in  value  of  the  underlying  properties.  In
accordance  with FASB  Statement of Standards No. 66,  "Accounting  for Sales of
Real Estate",  $227,645 of the participation was not recognized as income during
1999 and 2000. The Partnership has recorded $227,645 of the participation amount
representing its share of the joint venture loan, as deferred  revenue,  and the
interest  thereon  will  be  recognized  as  it  is  earned.   The  renegotiated
outstanding  mortgage  balance will earn  interest at a 10.5%  interest rate and
will be paid monthly. Based on the new loan agreement, the Partnerships received
$200,000 on May 5, 2000,  with the  remaining  balance  payable upon maturity at
January 1, 2001. On February 1, 2001, the  Partnership  received the outstanding
principal  balance  of  $1,153,254.  The  Partnership  has also  agreed to waive
$10,091 of accrued  interest  in  negotiating  final  payment of the loan.  This
forgiveness was reflected as a reduction of interest income in the  accompanying
financial  statements.  Pursuant to the receipt of this amount,  the Partnership
commenced its plan to dissolve the Partnership.

                                      F-11
<PAGE>
Note 2 - Mortgage Loan Receivable (continued)
---------------------------------------------

All property securing the  Partnership's  mortgage loan at December 31, 2000 and
1999 is located in Pennsylvania.

Note 3 - Fair Value of Financial Instruments
--------------------------------------------

The  fair  value  of  the  Partnership's  participation  in  the  mortgage  loan
receivable did not differ from its carrying value as the rate of interest on the
refinanced loan balance  approximated the market rate for commensurate  loans as
follows:

                                   Carrying             Fair
                                    Value               Value
                                    -----               -----

December 31, 2000               $ 1,153,254          $ 1,153,254

The Partnership  estimates the fair value of its  participation in mortgage loan
receivable by discounting future cash flows using an appropriate interest rate.

The  carrying  amounts  at  December  31,  2000  and  1999  for  cash  and  cash
equivalents,  accrued interest  receivable,  other receivables,  due from and to
affiliates,  and accounts payable and accrued expenses  approximated  their fair
values due to the short maturity of these instruments.

Note 4 - Subsequent Events - Dissolution and Winding Up
-------------------------------------------------------

As  described  in  Note  2,  the  Partnership  received  the  remaining  amounts
outstanding  under  its only  remaining  mortgage  loan in  February  2001.  The
Partnership has distributed $1,304,439 to the limited partners in March 2001 and
intends to pay remaining liabilities of the Partnership and dissolve and wind-up
its affairs.

                                       F-12
<PAGE>
Item 8.  Changes  in  and  Disagreements  with  Accountants  on  Accounting  and
         Financial Disclosure.

         On March 20, 1999,  the  Partnership  engaged  Ehrhardt Keefe Steiner &
Hottman PC as its independent auditors for the 1998 fiscal year. Reports on From
8-K,  8-K/A and Form 8-K/A-2  reporting  the event were filed on March 24, 1999,
April  2,  1999  and  April  9,  1999  respectively.  There  were  no  reporting
disagreements on financial statement  disclosures or accounting matters covering
the prior two fiscal years up through March 20, 1999 audited by the  predecessor
auditors.

                                    PART III
                                    --------

Item 9. Directors Executive Officers,  Promoters and Control Persons, Compliance
        With Section 16(a) of the Exchange Act.

     The  Partnership  does not have  directors or officers.  The following is a
list of the officers and directors of the Managing  General  Partner as of April
2, 2001:

--------------------------------------------------------------------------------
Name                           Age        Position

Albert E. Jenkins III          54         Chairman of the Board, Chief Executive
                                          Officer,  President,  Treasurer  and
                                          Director

Richard R.  Wood               78         Director

William Jasper                 85         Director

     Albert E. Jenkins III is the President and Chief  Executive  Officer of the
Managing   General   Partner  as  well  as  the  Executive  Vice  President  and
Secretary/Treasurer  of Common Goal Mortgage  Company.  He is also President and
Chief Executive Officer of Common Goal Capital Group, Inc. II ("CG Capital Group
II"), the managing general partner of Common Goal Health Care Pension and Income
Fund L.P. II, a Delaware limited  partnership  which commenced a public offering
of its  securities  in January  1990.  Mr.  Jenkins also serves on the boards of
directors  of the  above-referenced  corporations.  Mr.  Jenkins is a co-general
partner of Common Goal Limited  Partnership  I. Mr.  Jenkins is also  President,
Chief  Executive  Officer and a director of the St.  Catherine's  Care  Centers,
which are  comprised of five long term care  facilities  located in the State of
Ohio.

     Richard  R. Wood is a  director  of the  Managing  General  Partner  and is
president,  a  director  and owner of 95% of the  outstanding  stock of  Renwood
Properties,  Inc. Mr. Wood is also a  co-general  partner of Common Goal Limited
Partnership  I and a director of Common Goal Capital Group Inc. II, the managing
general  partner of Common  Goal II. In  addition,  Mr.  Wood is a member of the
board of directors of the St. Catherine's  affiliated  companies which currently
own five health care  facilities in Ohio. Mr. Wood has,  either  individually or
together  with  or  through   Renwood,   sponsored  58  prior  private   limited
partnerships  which have acquired real estate.  These  partnerships  have raised
approximately  $35,000,000,  with  approximately 81% of the properties  acquired
being  government-subsidized  low income  housing  projects for families and the
elderly and handicapped.  In addition, Mr. Wood is a controlling  shareholder of
several of the Renwood companies,  which act as co-general partners and property
managers  of certain of the  above-referenced  syndications.  He is  currently a
member of the National Leased Housing Association, Council for Rural Housing and
the Real Estate  Investment  Association.  Mr. Wood received a B.A. from Harvard
University  in 1943 and  attended  Massachusetts  Institute of  Technology  from
1947-1948.

     William E. Jasper,  Jr. is a director of Common Goal Capital Group, Inc. II
and has been a member  of the  Board of  Directors  of  Madison  Square  Federal
Savings Bank since 1964.  Prior to 1980, when Mr. Jasper retired,  he had served
as president of a multi-line  insurance  agency and  brokerage.  Mr. Jasper is a
Deputy Regional  Director for a fraternal  organization that is dedicated to the

                                       8
<PAGE>
Maryland  Special Olympics which provides  health-care  training and specialized
sports for the mentally handicapped.  Mr. Jasper attended Baltimore City College
and has taken  numerous  extended  courses at Loyola  College and Johns  Hopkins
University  in  real  estate,  appraisals,   inspections,   financial  planning,
mortgages and management.

Item 10.      Executive Compensation.

     The Partnership has no executive officers or directors.  The Partnership is
not  required to pay the  officers  and  directors  of the General  Partners any
current  nor  any  proposed  compensation  in  such  capacities.   However,  the
Partnership is required to pay certain fees, make  distributions  and allocate a
share of the profits or losses of the  Partnership  to the  General  Partners as
described under the caption  "Management  Compensation" on pages 9 through 13 of
the  Partnership's  Prospectus,  which  description  is  incorporated  herein by
reference.  Set forth below are the fees,  compensation and other reimbursements
paid or accrued to Common Goal and its  Affiliates  for the year ended  December
31, 2000.

                              Capacities in
                              which Compensation
Name of Affiliate             was Received                       Remuneration

Common Goal                   Management fee                     $18,790

Common Goal Mortgage          Mortgage loan servicing fees       $ 3,184
Company

No form of non-cash remuneration was paid by the Partnership.

For further  information on compensation paid to Common Goal and its Affiliates,
see "Management Compensation" on pages 9-13 of the Prospectus.

Item 11.      Security Ownership of Certain Beneficial Owners and Management.

         The Partnership, as an entity, does not have any directors or officers.
The following is information concerning Unit ownership as of December 31, 2000.

         To the best knowledge of the  Partnership,  no person owns more than 5%
of the outstanding Units. Messrs.  Jenkins and Wood each own less than 1% of the
total  outstanding  Units and all officers and directors of the Managing General
Partner,  as a group, own less than 1% of the total outstanding  Units. No other
officer or director of the Managing General Partner owns any Units.

Item 12.      Certain Relationships and Related Transactions.

         The  Partnership  entered into the Joint  Venture Loan with Common Goal
II, an affiliated,  publicly-offered limited partnership. On August 1, 1990, the
joint venture made a $3,430,114 loan to an unaffiliated  third party, which loan
had a remaining  principal  balance of  $1,153,254  at December  31,  2000.  For
further  information  concerning this Mortgage Loan, see "Item 1. Description of
Business" - "Last Outstanding Mortgage Loan" - "The Joint Venture Loan.

         "The Partnership  engages the services of Common Goal Mortgage Company,
an affiliate of the General  Partners,  in connection  with  servicing  Mortgage
Loans  for  which  Common  Goal  Mortgage  Company  is paid a fee.  See Item 10,
Executive Compensation, for the information concerning such fees.

Item 13.      Exhibits and Reports on Form 8-K.

                                       9
<PAGE>
(a)               Exhibits

     The following exhibits are included herein or incorporated by reference:

                  Number

     3.1  Second  Amended  and  Restated  Agreement  of Limited  Partnership  of
          Registrant  dated as of February 1, 1987  (incorporated  by  reference
          from the  Registrants  Registration  Statement  (File No. 33- 8531) on
          Form S-11 filed under the Securities Act of 1933, as amended)

     3.2  Pages 9-13 of the  Registrant's  final  prospectus  dated February 20,
          1987, as filed with the Securities and Exchange Commission pursuant to
          Rule 424(b) under the Securities Act of 1933, as amended.

(b)  Reports on Form 8-K

     The  Partnership  did not file any  reports on Form 8-K during the  quarter
     ended December 31, 2000.

                                       10
<PAGE>
                                   SIGNATURES
                                   ----------

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

                        COMMON GOAL HEALTH CARE PARTICIPATING MORTGAGE FUND L.P.

                        By:  Common Goal Capital Group, Inc., General Partner

                        By:/s/ Albert E.  Jenkins
                        Albert E.  Jenkins III
                        Chairman and Chief Executive Officer

Date: April 2, 2001

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

       Name                            Position                         Date

/s/ Albert E.  Jenkins          Chairman (Principal                April 2, 2001
----------------------          Executive Officer), President,
Albert E.  Jenkins III          Principal Financial and
                                Accounting Officer and Director
                                of Managing General Partner

/s/ Richard R.  Wood            Director of Managing               April 2, 2001
--------------------            General Partner
Richard R.  Wood

/s/ William E.  Jasper, Jr.     Director of Managing               April 2, 2001
---------------------------     General Partner
William E.  Jasper, Jr.

(A Majority of the Board of Directors of the Managing General Partner)

                                       11