<PAGE>

                 PART I. - FINANCIAL INFORMATION
              CONSOLIDATED RESOURCES HEALTH CARE FUND IV
                     CONSOLIDATED BALANCE SHEETS
                             (Unaudited)


                                          June 30,       December 31,
                                            1997            1996
                                        -------------- ----------------

ASSETS
Current assets:
  Cash and cash equivalents              $    461,450  $       723,569
  Accounts receivable and
   third party settlement                     235,121          165,545
  Prepaid expenses                             27,917              901
  Property held for sale                      581,566          613,198
                                       --------------- ----------------
    Total current assets                    1,306,054        1,503,213
                                       --------------- ----------------

  Restricted escrows and other deposits        21,029           46,979
  Deferred loan costs, net of accumulated
    amortization of $106,242                   50,000                -
                                       --------------- ----------------
    Total other assets                         71,029           46,979
                                       --------------- ----------------
                                         $  1,377,083  $     1,550,192
                                       =============== ================
LIABILITIES AND PARTNERS' DEFICIT
Current liabilities:
  Current maturities of long-term
   obligations including debt in default $  1,598,652  $     1,656,836
  Trade accounts payable                      150,803          156,163
  Accrued compensation                         95,567          103,960
  Insurance payable                            58,386           58,062
  Accrued interest                             19,038           17,916
  Accrued real estate taxes                    17,353           29,455
                                        --------------   --------------
    Total current liabilities               1,939,799        2,022,392


Partners' equity (deficit):
  Limited partners                            124,143          211,038
  General partners                           (686,859)        (683,238)
                                       --------------- ----------------
    Total partners' deficit                  (562,716)        (472,200)
                                       --------------- ----------------
                                         $  1,377,083  $     1,550,192
                                       =============== ================


<PAGE>

                   CONSOLIDATED RESOURCES HEALTH CARE FUND IV
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (Unaudited)
<TABLE>
<CAPTION>


                                   Three Months Ended           Six Months Ended
                                       June 30,                     June 30,
                                  1997          1996           1997          1996
                              ------------- -------------  -------------  ------------
<S>                           <C>            <C>           <C>           <C>
Revenues:
  Operating revenues          $    877,242   $    834,202  $  1,676,185  $   1,725,748
  Interest income                    5,619          4,204        12,547          9,625
                              -------------  ------------- ------------- --------------
    Total revenues                 882,861        838,406     1,688,732      1,735,373
                              -------------  ------------- ------------- --------------

Expenses:
  Operating expenses               729,255        793,144     1,504,085      1,614,358
  Interest                          68,166         40,705       107,424         84,236
  Depreciation and amortization     39,082         39,081        78,163        113,094
  Partnership administration
     costs                          63,394          9,708        89,576         30,554
                              -------------  ------------- ------------- --------------
    Total expenses                 899,897        882,638     1,779,248      1,842,242
                              -------------  ------------- ------------- --------------


                              -------------  ------------- ------------- --------------
Net income (loss)             $    (17,036)  $    (44,232) $    (90,516) $    (106,869)
                              =============  ============= ============= ==============

Net income(loss) per L.P. unit $     (0.62)         (1.62)        (3.31)         (3.90)

                              =============  ============= ============= ==============

L.P. units outstanding              26,283         26,283        26,283         26,283
                              =============  ============= ============= ==============
</TABLE>





          See accompanying notes to consolidated financial statements.

<PAGE>

          CONSOLIDATED RESOURCES HEALTH CARE FUND IV
              CONSOLIDATED STATEMENTS OF CASH FLOWS
                           (Unaudited)


                                                  Six months ended June 30,
                                                     1997            1996
                                                  ------------- ---------------

Operating Activities:
  Cash received from residents
     and government agencies                    $    1,606,609  $    1,688,027
  Cash paid to suppliers and employees              (1,646,208)     (1,651,966)
  Cash paid to restricted escrows                       25,950         (12,750)
  Interest received                                     12,547           9,625
  Interest paid                                       (106,302)        (87,265)
                                                  ------------- ---------------
Cash (used in) operating activities                   (107,404)        (54,329)
                                                  ------------- ---------------

Investing Activities:
  Additions to property and equipment
     held for sale                                     (96,531)        (26,080)
                                                  --------------- -------------
Cash (used in) investing activites                     (96,531)        (26,080)
                                                  ------------- ---------------

Financing Activities:
  Principal payments on long-term obligations          (58,184)        (52,090)
                                                  ------------- ---------------
Cash (used in) financing activities                    (58,184)        (52,090)
                                                  ------------- ---------------

Net (decrease) cash
     and cash equivalents                             (262,119)       (132,500)

Cash and cash equivalents, beginning of period         723,569         628,543
                                                  ------------- ---------------

Cash and cash equivalents, end of period         $     461,450  $      496,043
                                                  ============= ===============







          See accompanying notes to consolidated financial statements.
<PAGE>

            CONSOLIDATED RESOURCES HEALTH CARE FUND IV
              CONSOLIDATED STATEMENTS OF CASH FLOWS
                           (Unaudited)


                                      Six months ended June 30,
                                         1997            1996
                                    --------------- ---------------

Reconciliation of Net Loss
  to Cash (Used in) Operating
  Activities:

Net loss                            $      (90,516) $     (106,870)
Adjustments to reconcile net (loss)
   to cash (used in) operating
   activities:
      Depreciation and amortization         78,163         113,094
Changes in assets and liabilities:
      Accounts receivable                  (69,576)        (37,721)
      Other assets                         (27,016)        (60,000)
      Restricted escrow and other deposits  25,950         (12,750)
      Trade accounts payable and
        accrued liabilities                (24,409)         49,918
                                    --------------- ---------------

Cash (used in) operating activities $     (107,404) $      (54,329)
                                    =============== ===============





          See accompanying notes to consolidated financial statements.
<PAGE>


               CONSOLIDATED RESOURCES HEALTH CARE FUND IV
            CONSOLIDATED STATEMENTS OF PARTNERS' EQUITY (DEFICIT)
                                 (Unaudited)

                                                                           Total
                                                                       Partners'
                                  General         Limited          Deficit
                              --------------- ----------------- ---------------

Balance, at December 31, 1995$      (673,996) $        432,856  $     (241,140)

Net loss                              (4,275)         (102,594)       (106,869)
                             ---------------- ----------------- ---------------

Balance, at June 30, 1996    $      (678,271) $        330,262  $     (348,009)
                             ================ ================= ===============


Balance, at December 31, 1996$      (683,238) $        211,038  $     (472,200)

Net loss                              (3,621)          (86,895)        (90,516)
                             ---------------- ----------------- ---------------

Balance, at June 30, 1997    $      (686,859) $        124,143  $     (562,716)
                             ================ ================= ===============






          See accompanying notes to consolidated financial statements.
<PAGE>






                   CONSOLIDATED RESOURCES HEALTH CARE FUND IV
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                                  June 30, 1997

NOTE 1.

The consolidated  financial statements are unaudited and reflect all adjustments
(consisting only of normal recurring  adjustments)  which are, in the opinion of
management,  necessary for a fair  presentation  of the  financial  position and
operating results for the interim periods. The results of operations for the six
months ended June 30, 1997, are not necessarily  indicative of the results to be
expected for the year ending December 31, 1997.

NOTE 2.

The  consolidated  financial  statements  should be read in conjunction with the
consolidated  financial  statements  and  the  notes  thereto  contained  in the
Partnership's  Annual Report on Form 10-K for the year ended  December 31, 1996,
as  filed  with  the  Securities  and  Exchange  Commission,  a copy of which is
available  upon  request  by  writing to  WelCare  Service  Corporation-IV  (the
"Managing  General  Partner"),  at 400  Perimeter  Center  Terrace,  Suite  650,
Atlanta, Georgia, 30346.

NOTE 3.
A  summary  of  compensation   paid  to  or  accrued  for  the  benefit  of  the
Partnership's  general partners and their affiliates and amounts  reimbursed for
costs incurred by these parties the on behalf of the Partnership are as follows:
                                Six Months Ended
                                    June 30,
                                    1997 1996

Charged to costs and expenses:
Property management and oversight
management fees                          $ 95,421   $ 103,370
Financial accounting, data processing,
tax reporting, legal and compliance,
investor relations and supervision
of outside services                      $ 29,125   $  30,554


NOTE 4:

Effective July 31,1997, the Partnership  completed the sale of its two remaining
skilled nursing facilities  Heritage Manor of Emporia ("Emporia") and Hoisington
Rehabilitation Center ("Hoisington").  The total sales price for both facilities
net of required  repairs  was  $2,050,000.  Proceeds  from the sale were used to
satisfy  approximately  $1,640,000 in mortgage debt  obligations  secured by the
facilities.  The  Partnership  received net proceeds of  approximately  $380,000
following  the  satisfaction  of the debt and  payment  of  sales  expenses  and
property taxes.  The Partnership  will recognize a gain on sale of approximately
$1,400,000 during the third quarter of 1997.

Prior to their  repayment,  the  Partnership's  two  mortgage  debt  obligations
secured by  Emporia  and  Hoisington  were in default  since  these  obligations
matured on April 1, 1996. The Partnership  obtained an extension from the lender
to allow for the sale of the facilities.


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

Certain statements contained in this Management  Discussion and Analysis are not
based on historical  facts,  but are  forward-looking  statements that are based
upon numerous  assumptions  about future conditions that may ultimately prove to
be inaccurate.  Actual events and results may materially differ from anticipated
results described in such statements.  The Partnership's ability to achieve such
results  is  subject  to  certain  risks  and  uncertainties.   Such  risks  and
uncertainties   include,   but  are  not  limited  to,   changes  in  healthcare
reimbursement systems and rates, the availability of prospective  purchasers for
its facilities,  and other factors affecting the Partnership's business that may
be beyond its control.

At June 30, 1997,  the  Partnership  had three  general  partners  (the "General
Partners"),  WelCare  Consolidated  Resources  Corporation of America,  a Nevada
corporation, serving as the corporate general partner ("WCRCA" or the "Corporate
General   Partner"),   Consolidated   Associates   IV,   and   WelCare   Service
Corporation-IV   ("WSC-IV"  or  the  "Managing  General  Partner"),   a  Georgia
Corporation, serving as managing general partner.

Plan of Operations

A  majority  in  interest  of the  Partnership's  Limited  Partners  approved  a
proposal,  on  October  18,  1994,  which  provides  for the  sale of all of the
Partnership's  remaining assets and the eventual dissolution of the Partnership,
as outlined in a proxy statement  dated  September 28, 1994.  Under the approved
proposal,  the Limited  Partners  consented for the Managing  General Partner to
attempt to sell or  otherwise  dispose  of its  remaining  properties.  Upon the
disposition  of all of its  assets,  the  approved  proposal  requires  that the
Managing General Partner dissolve the Partnership.

As  discussed  in Item  1,  Note  4,  the  Partnership  sold  its two  remaining
facilities  and satisfied the underlying  mortgage debt  obligations on July 31,
1997. The Managing General Partner currently anticipates the Partnership will be
liquidated prior to the end of 1997. At June 30, 1997 and December 31, 1996, the
Partnership  held  available  for  sale  all of  its  nursing  home  facilities.
Accordingly,  the Partnership has classified the facilities as Property held for
sale in the accompanying balance sheets.


Results of Operations

Six Months ended June 30, 1997 and 1996

Revenues:

Operating  revenue  decreased by $49,563 for the six months ended June 30, 1997,
compared  to the same  period  in the  prior  year.  This  decrease  was  caused
primarily by lower census at both of the Partnership's remaining facilities. The
Emporia facility has experienced a decrease patient census due to a newly opened
home health agency in the community while the Hoisington facility  traditionally
experiences a decrease in census in the spring and summer months.

Expenses:

Operating expenses decreased by $110,273 for the six months ended June 30, 1997,
as  compared  to the same  period  in the  prior  year.  Most of this  decrease
resulted  from a reduction in operating  expenses at Emporia due  primarily to a
decline  in  staffing  levels  corresponding  with the  decrease  in  census  as
previously  discussed.  The  decrease  at Emporia  was offset in part by general
increases in costs at Hoisington.


Liquidity and Capital Resources

At June 30, 1997, the Partnership held cash and cash equivalents of $461,450,  a
decrease of $262,119 from the amount held at December 31, 1996. The cash balance
is being held in reserve for working capital, capital improvements and operating
contingencies.

As discussed in Item 1, Note 4, the Partnership sold its last two properties and
in conjunction with the sale,  satisfied its remaining  secured debt obligations
and received  cash of  approximately  $380,000  from the  closing.  Current cash
reserves should be sufficient to meet the Partnership's obligations prior to its
liquidation,  which is currently  scheduled to occur sometime  before the end of
1997.  As of June 30, 1997,  the  Partnership  was not  obligated to perform any
major capital additions or renovations and has no remaining capital  obligations
with respect to its recently sold facilities.

Significant   changes  have  and  will   continue  to  be  made  in   government
reimbursement  programs, and such changes could have a material impact on future
reimbursement  formulas.  Based on information  currently available,  Management
does not believe that proposed  legislation  will have an adverse  effect on the
Partnership's  operations.  However,  as  health  care  reform is  ongoing,  the
long-term effects of such changes cannot be accurately  predicted at the present
time.




<PAGE>





PART II - OTHER INFORMATION

Item 5.

Effective July 31,1997,  the  Consolidated  Resources  Health Care Fund IV, (the
"Registrant")  closed the sale of its two remaining  skilled nursing  facilities
Heritage  Manor of Emporia  ("Emporia")  and  Hoisington  Rehabilitation  Center
("Hoisington"),  to Midwest  Nursing  Home  Investors,
L.L.C., an Georgia limited  liability  company unrelated to the Registrant.  The
total sales price for both  facilities net of required  repairs was  $2,050,000.
Proceeds from the sale were used to satisfy approximately $1,640,000 in mortgage
debt  obligations  secured  by the  facilities.  The  Partnership  received  net
proceeds of  approximately  $380,000  following the satisfaction of the debt and
payment of sales expenses and property taxes.  The Partnership  will recognize a
gain on sale of  approximately  $1,400,000  during  the third  quarter  of 1997.
Results from the  operation  of these  facilities  included in the  Registrant's
financial  statements  for the year ended  December  31, 1996 and the six months
ended June 30, 1997 were as follows:

                                         (Unaudited)

                                    Emporia      Hoisington

Year Ended December 31, 1996
Revenues                       $   1,648,079 $    1,707,277
Expenses                           1,827,604      1,534,918
                                ----------------------------
Net income (loss)                  (179,525)        172,359

Six Months Ended June 30, 1997
Revenues                             908,532        759,292
Expenses                             872,246        789,155
                                ----------------------------
Net income (loss)              $      36,286 $     (29,863)



Item 6.         Exhibits and Reports on Form 8-K

(a)        Exhibits

10.1 Purchaser and Sale Agreement by and between Midwest Nursing Home Investors,
     L.L.C.  and  Consolidated  Resources  Health  Care Fund IV on June 1, 1997.
     (Included  as a separate  document in the June 30, 1997 Form 10-Q filed via
     EDGAR)

(b)        Reports on Form 8-K

                      None


<PAGE>



                                   SIGNATURES

Pursuant  to the  requirements  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.

                   CONSOLIDATED RESOURCES HEALTH CARE FUND IV

                         By:    WELCARE SERVICE CORPORATION - IV
                            Managing General Partner



Date: August 14, 1997            By:  /s/ J. Stephen Eaton
---------------------                 -------------------------
                                    J.Stephen Eaton,
                                    President



Date: August 14, 1997            By:  /s/ Alan C. Dahl
---------------------                 -------------------------
                                       Alan C.Dahl,
                                       Chief Financial Officer
                                       of the Corporate
                                       General Partner