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                         APACHE MEDICAL SYSTEMS, INC.
                EXHIBIT 11 - COMPUTATION OF EARNINGS PER SHARE
                     (in thousands, except per share data)

<TABLE>
<CAPTION>

                                                                                           Three Months Ended March 31,
                                                                                             1997               1996     
                                                                                         ------------      ------------  
Income applicable to common shares:

<S>                                                                                       <C>                 <C>       
Net loss                                                                                   $(3,282)              $(951) 
                                                                                                                        
Increase in earnings resulting from conversion of convertible debt (1)                         -                    78  
                                                                                           -------             -------  
                                                                                                                        
              Loss applicable to common shares                                             $(3,282)              $(873) 
                                                                                           =======             =======  
                                                                                                                        
                                                                                                                        
     Weighted average number of common shares outstanding                                    6,871               1,076  
                                                                                                                        
     Conversion of preferred shares and convertible debt (2)                                   -                 3,478  
                                                                                                                        
     Cheap stock options and warrants (2)                                                      -                    74  
                                                                                           -------             -------  
                                                                                                                        
                                                                                                                        
              Weighted average common shares                                                 6,871               4,628  
                                                                                           =======             =======  
                                                                                                                        
                                                                                                                        
     Loss per common share                                                                  $(0.48)             $(0.19) 
                                                                                           =======             =======  

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(1)  Assumes the conversion took place January 1, 1996.

(2)  Pursuant with the Securities and Exchange Commission Staff Accounting 
     Bulletin No. 83, all common and common equivalent shares issued during the
     twelve-month period prior to the filing of the initial public offering, 
     even when antidilutive, have been included in the calculation as if they 
     were outstanding for all periods, using the treasury stock method and the
     expected initital public offering price of $12.00 per share.