UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 10-Q



(Mark one)

(X)      QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

                  For the quarterly period ended March 31, 1997
                                       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 0-14435



                CONSOLIDATED RESOURCES HEALTH CARE FUND IV
             (Exact name of registrant as specified in its charter)



                       Georgia                          58-1582370
                  (State or other jurisdiction       (I.R.S. Employer
                  of incorporation or organization)  (identification No.)



   400 Perimeter Center Terrace, Suite 650, Atlanta, Georgia 30346
   (Address of principal executive offices)                  (Zip Code)



Registrant's telephone number, including area code   770-698-9040



Indicate  by check  mark  whether  the  registrant,  (1) has filed  all  reports
 required to be filed by Section 13 or 15(d) of the  Securities  Exchange Act of
 1934 during the preceding 12 months, and (2) has been subject to such
filing requirements for the past 90 days.  Yes    x      No



                             THERE ARE NO EXHIBITS.
                              PAGE ONE OF 4 PAGES.

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


                                                 March 31,   December 31,
                                                   1997          1996

ASSETS
Current assets:
  Cash and cash equivalents                  $    653,278  $    723,569
  Accounts receivable and third party settlements
   net of allowance of $131,762                    35,651       165,545
  Prepaid expenses                                 49,575           901
  Property held for sale                          610,269       613,198
    Total current assets                        1,348,773     1,503,213

  Restricted escrows and other deposits            50,658        46,979
  Deferred loan costs, net of accumulated
    amortization of $106,242                       66,324             -
    Total other assets                            116,982        46,979
                                             $  1,465,755  $  1,550,192
LIABILITIES AND PARTNERS' DEFICIT
Current liabilities:
  Current maturities of long-term
   obligations including debt in default     $  1,627,182  $  1,656,836
  Trade accounts payable                          176,616       156,163
  Accrued compensation                             70,314       103,960
  Insurance payable                                57,027        58,062
  Accrued interest                                 19,069        17,916
  Accrued real estate taxes                        37,472        29,455
    Total current liabilities                   1,987,680     2,022,392


Partners' equity (deficit):
  Limited partners                                163,302       211,038
  General partners                               (685,227)     (683,238)
    Total partners' deficit                      (521,925)     (472,200)
                                             $  1,465,755  $  1,550,192




          See accompanying notes to consolidated financial statements.





                   CONSOLIDATED RESOURCES HEALTH CARE FUND IV
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (Unaudited)



                                                  Three months ended
                                                       March 31,
                                                   1997         1996
Revenues:
  Operating revenues                           $  798,943  $   891,546
  Interest income                                   6,928        5,422
    Total revenues                                805,871      896,968

Expenses:
  Operating expenses                              751,075      821,214
  Interest                                         39,258       43,531
  Depreciation and amortization                    39,081       74,013
  Partnership administration
     costs                                         26,182       20,846
    Total expenses                                855,596      959,604

Operating loss                                    (49,725)     (62,636)


Net loss                                        $ (49,725) $   (62,636)

Operating loss per L.P. unit                    $   (1.82) $     (2.29)

Net loss per L.P unit                           $   (1.82) $     (2.29)

L.P. units outstanding                             26,283       26,283










          See accompanying notes to consolidated financial statements.






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


                                                Three months ended March 31,
                                                    1997          1996

Operating Activities:
  Cash received from residents
     and government agencies                   $   928,837  $    902,892
  Cash paid to suppliers and employees            (832,142)     (844,051)
  Cash paid to restricted escrows, net of escrow    (3,679)       (6,375)
  Interest received                                  6,928         5,422
  Interest paid                                    (38,105)      (44,571)
Cash provided by operating activities               61,839        13,317

Investing Activities:
  Additions to property and equipment
     held for sale                                (102,476)       (4,981)
Cash used in investing activites                  (102,476)       (4,981)

Financing Activities:
  Principal payments on long-term obligations      (29,654)      (25,698)
Cash (used in) financing activities                (29,654)      (25,698)

Net (decrease) increase in cash
     and cash equivalents                          (70,291)      (17,362)

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

Cash and cash equivalents, end of period       $   653,278  $    611,181






          See accompanying notes to consolidated financial statements.



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


                                                Three months ended March 31,
                                                     1997         1996

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

Net loss                                       $   (49,725) $    (62,636)
Adjustments to reconcile net income (loss)
   to cash (used in) provided by operating
   activities:
      Depreciation and amortization                 39,081        74,013

Changes in assets and liabilities:
      Accounts receivable                          129,894        11,346
      Other assets                                 (48,674)      (60,000)
      Restricted escrow and other deposits          (3,679)       (6,375)
      Trade accounts payable and
        accrued liabilities                         (5,058)       56,969

Cash provided by operating activities          $    61,839  $     13,317






          See accompanying notes to consolidated financial statements.





                   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                              (2,505)       (60,131)      (62,636)

Balance, at March 31, 1996      $   (676,501) $     372,725  $   (303,776)


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

Net loss                              (1,989)       (47,736)      (49,725)

Balance, at March 31, 1997      $   (685,227) $     163,302  $   (521,925)





          See accompanying notes to consolidated financial statements.




<PAGE>










                   CONSOLIDATED RESOURCES HEALTH CARE FUND IV
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                                 March 31, 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
three months ended March 31, 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 on the behalf of the Partnership are as follows:

                                                           Three Months Ended
                                                                 March 31,
                                                             1997        1996

Charged to costs and expenses:
Property management and oversight
management fees                                            $ 47,938   $ 53,316
Financial accounting, data processing,
tax reporting, legal and compliance,
investor relations and supervision
of outside services                                        $ 18,164   $ 20,846


NOTE 4.

The Partnership's  consolidated  financial statements have been presented on the
basis that it is a going concern,  which  contemplates the realization of assets
and the  satisfaction of liabilities in the normal course of business.  At March
31, 1997, the  Partnership has experienced  working  capital  deficiencies,  had
defaulted on certain  debt  obligations  and had no  assurance of any  financial
support from the General Partners.

The Partnership's  continued existence is dependent upon its ability to generate
sufficient  cash flow to meet its  obligations on a timely basis, to comply with
the terms of its financing  agreements and to obtain additional financing as may
be required.

NOTE 5:

The  Partnership's  two mortgage debt  obligations  secured by Heritage Manor of
Emporia ("Emporia") and Hoisington  Rehabilitation Center ("Hoisington") were in
default as of December 31, 1996. These obligations matured on April 1, 1996. The
Partnership  has  obtained an  extension  from the lender  until May 31, 1997 to
allow for the sale of the  facilities.  Under the extension,  the Partnership is
obligated to make monthly principal and interest payments.  In consideration for
the extension,  the Partnership paid the lender $50,000 on January 31, 1997. The
Partnership  has also paid the lender a refundable  extension fee equal to 1% of
the  balance of the  mortgage  debt  obligations  as of January  31,  1997.  The
extension  fee  will  be  forfeited  by the  Partnership  if the  mortgage  debt
obligations are not satisfied by May 31, 1997. The Partnership  will continue to
operate the facilities and is actively  seeking a buyer for these properties and
plans to either sell the  properties to prospective  purchasers,  or negotiate a
settlement with its lenders.


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 March 31, 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  prior to
October  18,  1997.  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 5, the  Partnership's two mortgage debt obligations
were in default as of March 31, 1997. The  Partnership  will continue to operate
the  facilities  and plans to negotiate an extension  with its lenders  while it
proceeds with the sale of the properties.

At March 31, 1997 the Partnership has 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 sheet.


Results of Operations

Three Months ended March 31, 1997 and 1996

Revenues:

Operating  revenue  decreased  by $92,602 for the quarter  ended March 31, 1997,
compared to the first quarter of the prior year.  Approximately  $52,000 of this
decrease  was  caused by lower  census  at the  Partnership's  Emporia  facility
resulting  from new  entrants in the local  health care  market.  The  remaining
decrease  was  attributable  to  the  Partnership's  Hoisington  facility  which
experienced a slight  decrease in patient  census and its Medicare rate on a per
patient day basis.

Expenses:

Operating expenses decreased by $20,489 for the quarter ended March 31, 1997, as
compared  to  the  same  period  in  the  prior  year.  Of  this  net  decrease,
approximately $30,000 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 by general
increases in costs at Hoisington.


Liquidity and Capital Resources

At March 31, 1997, the Partnership  held cash and cash  equivalents of $ 653,278
an decrease  of $70,291  from the amount held at  December  31,  1996.  The cash
balance is being held in reserve for working capital,  capital  improvements and
operating contingencies.

During the first  quarter  of 1997,  the  Partnership  maintained  current  debt
service payments on all of its debt secured by facilities currently owned by the
Partnership.  The Partnership's  Hoisington  facility should produce  sufficient
cash flow from operations during 1997 to continue to satisfy its current monthly
debt service  obligations.  During the first quarter of 1997, the  Partnership's
Emporia  facility  experienced  a  decrease  in  occupancy  and did not  provide
sufficient  cash flow from its  operations  to satisfy its monthly  debt service
obligations.  The Partnership anticipates that Emporia's census will not improve
significantly during the remainder of 1997 due to new entrants in the facility's
local  health  care  market.   Accordingly,   Emporia's   monthly  debt  service
obligations will be funded with existing cash reserves of the Partnership to the
extent its cash flows from operations are inadequate.

As of March 31, 1997,  the  Partnership  was not  obligated to perform any major
capital  additions or renovations.  No such capital  expenditures or renovations
are planned for the next twelve  months,  other than  necessary  minor  repairs,
maintenance  and  capital  expenditures  which  are  expected  to be  funded  by
operations.

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.

The  Partnership  is in default on the  long-term  debt  obligations  secured by
Heritage  Manor of Hoisington  and Heritage Manor of Emporia as these loans were
due April 1, 1996.  The  Partnership  has obtained an extension  from the lender
until May 31, 1997 to satisfy  these debts and is in the process of obtaining an
additional extension.  The Partnership is currently seeking purchasers for these
facilities at a sale price that would satisfy the operating and debt obligations
extensions  sufficient  to  allow  for the  orderly  sale of  these  facilities,
however,  there can by no  assurance  that the  facilities  can by sold prior to
foreclosure.  As long as these default  situations exist, the Partnership has no
existing lines of credit to draw upon should present resources or cash flow from
operations by inadequate.


<PAGE>




PART II - OTHER INFORMATION

Item 6.         Exhibits and Reports on Form 8-K

(a)        Exhibits

                      None

(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: May 20, 1997            By:  /s/ J. Stephen Eaton
------------------                 -------------------------
                                       J. Stephen Eaton
                                       President



Date: May 20, 1997            By:  /s/ Alan C. Dahl
------------------                 -------------------------
                                       Alan C. Dahl
                                       Chief Financial Officer
                                       of the Corporate General Partner