<TABLE> <S> <C>

<ARTICLE>                                          5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL CONDITION AT DECEMBER 31, 1997
(UNAUDITED) AND THE CONDENSED CONSOLIDATED STATEMENT OF INCOME FOR THE
THREE MONTHS ENDED DECEMBER 31, 1997 (UNAUDITED) AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK>                                              0000931782
<NAME>                                             MEDCATH INCORPORATED
<MULTIPLIER>                                                      1000
<CURRENCY>                                         U.S. DOLLARS
       
<S>                                                  <C>
<PERIOD-TYPE>                                      3-MOS
<FISCAL-YEAR-END>                                  SEP-30-1998
<PERIOD-END>                                       DEC-31-1997
<EXCHANGE-RATE>                                                      1
<CASH>                                                          14,000
<SECURITIES>                                                    23,318
<RECEIVABLES>                                                   32,537
<ALLOWANCES>                                                    (2,432)
<INVENTORY>                                                      3,779
<CURRENT-ASSETS>                                                71,847
<PP&E>                                                         193,776
<DEPRECIATION>                                                 (23,110)
<TOTAL-ASSETS>                                                 305,838
<CURRENT-LIABILITIES>                                           32,393
<BONDS>                                                        126,471
<PREFERRED-MANDATORY>                                                0
<PREFERRED>                                                          0
<COMMON>                                                           117
<OTHER-SE>                                                     135,242
<TOTAL-LIABILITY-AND-EQUITY>                                   305,838
<SALES>                                                              0
<TOTAL-REVENUES>                                                41,307
<CGS>                                                                0
<TOTAL-COSTS>                                                   35,346
<OTHER-EXPENSES>                                                   186
<LOSS-PROVISION>                                                 1,433
<INTEREST-EXPENSE>                                               2,357
<INCOME-PRETAX>                                                  1,985
<INCOME-TAX>                                                       774
<INCOME-CONTINUING>                                              1,211
<DISCONTINUED>                                                       0
<EXTRAORDINARY>                                                      0
<CHANGES>                                                            0
<NET-INCOME>                                                     1,211
<EPS-PRIMARY>                                                     0.10
<EPS-DILUTED>                                                     0.10
        

</TABLE>