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 JUNE 30, 1999

                                       OR

     [ ]       TRANSITIONAL REPORT PURSUANT TO SECTION 13 0R 15 (d) OF
                       THE SECURITIES EXCHANGE ACT OF 1934

             FOR THE TRANSITION PERIOD FROM _________ TO __________

                         COMMISSION FILE NUMBER 0-17292


                                ACCUHEALTH, INC.
             ------------------------------------------------------
             (Exact name of registrant as specified in its charter)

             New York                                   13-3176233
  -------------------------------           ---------------------------------
  (State or other jurisdiction of           (IRS Employer Identification No.)
  incorporation or organization)


          1575 Bronx River Avenue
               Bronx, New York                                     10460
  ---------------------------------------                     --------------
  (Address of principal executive offices)                      (Zip Code)

       Registrant's telephone number, including area code: (718) 518-9511

         Indicate by check mark (X) whether the registrant 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  (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 [ ]

         APPLICABLE  ONLY TO  CORPORATE  ISSUERS:  Indicate the number of shares
outstanding  of each of the issuer's  classes of common stock,  as of the latest
practicable date.


               CLASS                           OUTSTANDING AT AUGUST 13, 1999
Common stock, par value $.01 per share               5,136,754 Shares

<PAGE>
<TABLE>
<CAPTION>

                                ACCUHEALTH, INC. AND SUBSIDIARIES

                                              INDEX


PART I.   FINANCIAL INFORMATION

                                                                                       Page No.
                                                                                       --------

<S>          <C>                                                                           <C>
Item 1.      Condensed Consolidated Financial Statements.

             Condensed Consolidated Balance Sheets at
             June 30, 1999 and March 31, 1999...............................................3

             Condensed Consolidated Statements of Operations and Comprehensive Gain
             for the three months ended June 30, 1999 and 1998..............................4

             Condensed Consolidated Statements of Cash Flows
             for the three months ended June 30, 1999 and 1998..............................5

             Note to Condensed Consolidated Financial
             Statements.....................................................................6

Item 2.      Management's Discussion and Analysis of
             Financial Condition and Results of Operations..................................7-8

Item 3       Quantitative and Qualitative Disclosures About Market Risk.
             Not Applicable.................................................................8

PART II.     OTHER INFORMATION..............................................................9


SIGNATURES..................................................................................9
</TABLE>

                                                2

<PAGE>

                                  ACCUHEALTH, INC. AND SUBSIDIARIES
                                CONDENSED CONSOLIDATED BALANCE SHEETS
                      (AMOUNTS IN THOUSANDS, EXCEPT SHARES AND PER SHARE DATA)
                                             (UNAUDITED)

<TABLE>
<CAPTION>

                                                                      JUNE 30, 1999  MARCH 31, 1999
                                                                      -------------  --------------
<S>                                                                   <C>             <C>
ASSETS
Current Assets:
   Cash ...........................................................   $        509    $         85
   Marketable securities ..........................................            375           2,372

   Accounts receivable, net .......................................         15,062          14,499
   Inventories ....................................................          2,268           1,653
   Prepaid expenses and other current assets ......................            270             267
                                                                      ------------    ------------

   Total Current Assets ...........................................         18,484          18,876
Revenue producing equipment, net ..................................            820             901
Fixed assets, net .................................................          2,257           2,100
Other .............................................................             95              93
                                                                      ------------    ------------

   Total Assets ...................................................   $     21,656    $     21,970
                                                                      ============    ============

LIABILITIES AND STOCKHOLDERS' (DEFICIENCY) EQUITY

Current Liabilities:
   Notes payable - revolving credit facility ......................   $      9,421    $      7,765
   Current portion of notes payable - other .......................            777             857
   Margin payable .................................................             --           1,281
   Accounts payable ...............................................          5,466           5,517
   Accrued expenses and other current liabilities .................          1,923           2,245
   Current portion of capital lease - Facility ....................            233             232
   Current portion of other capital lease obligations .............            448             430

     Total Current Liabilities ....................................         18,268          18,327

12% Subordinated Debentures .......................................          6,250           6,250
Notes payable - term loan .........................................            725             750
Notes payable - other, less current portion .......................             40             109
Other capital lease obligations, less current portion .............            370             388
                                                                      ------------    ------------

     Total Liabilities ............................................         25,653          25,824
                                                                      ------------    ------------

Stockholders' Deficiency:
   Preferred Stock, $.01 par value: authorized 3,650,000 shares; no
     shares issued and outstanding
   Preferred stock, $.01 par value; 6% cumulative convertible,
   $213 and liquidation preference, authorized 1,350,000 shares;
   issued and outstanding 105,000 shares ..........................              1               1
   Common stock $0.1 par value;  authorized  15,000,000 shares;
   5,136,754,  and 5,127,593 shares issued and outstanding,
   respectively ...................................................             51              51
   Additional paid-in capital .....................................          7,612           7,606
   Accumulated other comprehensive income (loss) ..................              4             (42)
   Accumulated deficit ............................................        (11,041)        (10,846)
                                                                      ------------    ------------
                                                                            (3,373)         (3,230)
   Less treasury stock (308,004 shares) at cost ...................           (624)           (624)
                                                                      ------------    ------------
Total Stockholders' Deficiency ....................................         (3,997)         (3,854)
                                                                      ------------    ------------

Total Liabilities and Stockholders' Deficiency ....................   $     21,656    $     21,970
                                                                      ============    ============
</TABLE>

                      See note to condensed consolidated financial statements.

                                                 3
<PAGE>
<TABLE>
<CAPTION>

                                  ACCUHEALTH, INC. AND SUBSIDIARIES
                    CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE GAIN
                      (AMOUNTS IN THOUSANDS, EXCEPT SHARES AND PER SHARE DATA)
                                             (UNAUDITED)

                                                                         THREE MONTHS ENDED JUNE 30,
                                                                         ---------------------------
                                                                            1999           1998
                                                                         -----------    -----------
<S>                                                                      <C>            <C>
Net sales ............................................................   $     8,947    $     8,623
Cost of goods sold ...................................................         5,622          5,139
                                                                         -----------    -----------
Gross profit .........................................................         3,325          3,484
Selling, general and administrative expenses .........................         3,027          2,980
                                                                         -----------    -----------
Operating income .....................................................           298            504
Interest expense .....................................................           487            257
                                                                         -----------    -----------
Net income (loss) ....................................................   $      (189)   $       247
                                                                         ===========    ===========


Net income (loss) per common share applicable to common shareholders:
    Basic ............................................................          $.04           $.07
    Diluted ..........................................................          $.04           $.07

Weighted number of common shares and equivalents outstanding:
    Basic ............................................................     5,130,588      3,193,975
    Diluted ..........................................................     5,130,588      3,332,605

    Net income (loss) ................................................          (189)           247
Other comprehensive income, net of tax:  unrealized gain on marketable
    securities, net ..................................................             4             --
                                                                         -----------    -----------
    Total comprehensive income (loss) ................................   $      (185)   $       247
                                                                         ===========    ===========
</TABLE>

                           See note to consolidated financial statements.

                                                 4
<PAGE>
<TABLE>
<CAPTION>

                                ACCUHEALTH, INC. AND SUBSIDIARIES
                         CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                    (AMOUNTS IN THOUSANDS, EXCEPT SHARES AND PER SHARE DATA)
                                           (UNAUDITED)

                                                                    Three Months Ended June 30
                                                                    ---------------------------
                                                                        1999           1998
                                                                    -----------     -----------
<S>                                                                 <C>             <C>
OPERATING ACTIVITIES
Net income (loss) ...............................................   $      (189)    $       247
Adjustments to reconcile net income (loss) to net cash provided
    by (used in) operating activities:
    Depreciation and amortization ...............................           178             176
    Changes in operating assets and liabilities:
       Accounts receivable ......................................          (563)         (1,231)
       Inventories ..............................................          (615)             21
       Prepaid expenses and other current assets ................            (2)           (190)
       Other assets .............................................            (2)            475
       Accounts payable .........................................            84          (1,199)
       Accrued expenses and other current liabilities ...........          (320)            223
                                                                    -----------     -----------

       Cash used in operating activities ........................        (1,430)         (1,478)
                                                                    -----------     -----------

INVESTING ACTIVITIES
    Purchase of fixed assets ....................................          (285)           (147)
    Net change in goodwill ......................................            --             (68)
    Proceeds from sales of marketable securities ................           720              --
                                                                    -----------     -----------
    Cash provided by (used in) investing activities .............           435            (215)
                                                                    -----------     -----------

FINANCING ACTIVITIES
    Proceeds from note payable - revolving credit facility ......         1,656           7,460
    Proceed from notes payable - other ..........................            --             657
    Proceeds from term loan .....................................            --             250
    Payments on notes payable - revolving credit facility .......           (25)         (5,928)
    Payments on notes payable - other ...........................          (212)           (852)
    Principal payments on capital lease - Facility ..............            --             (18)
    Proceeds from issuance of capital stock .....................            --              75
    Payments on other capital lease obligations .................            --             115
                                                                    -----------     -----------
    Cash provided by financing activities .......................         1,419           1,529
                                                                    -----------     -----------

    Net increase (decrease) in cash .............................           424            (164)
                                                                    -----------     -----------
    Cash at beginning of period .................................            85             249
                                                                    -----------     -----------
    Cash at end of period .......................................   $       509     $        85
                                                                    ===========     ===========

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
    Interest paid ...............................................   $       296     $       234
                                                                    ===========     ===========

NONCASH INVESTING AND FINANCING ACTIVITIES:
    Additions to capital leases .................................   $        --     $        58
    Accrued dividends and accretion on redeemable preferred stock   $         6     $        27
</TABLE>

                         See note to consolidated financial statements.

                                               5
<PAGE>


                        ACCUHEALTH, INC. AND SUBSIDIARIES
                    NOTE TO CONSOLIDATED FINANCIAL STATEMENTS

1.       MARKETABLE SECURITIES/MARGIN PAYABLE

         At June 30, 1999, management has classified all their equity securities
         as  available-for-sale  securities,  which are  reported at fair market
         value, with unrealized gains and losses reported as other comprehensive
         income.  Gains or losses on the sale of securities  are recognized on a
         specific  identification  basis. The Company's investment in marketable
         securities  for the  quarter  ended  June  30,  1999 is  summarized  as
         follows:
<TABLE>
<CAPTION>

                                    Amortized           Unrealized        Fair Market
                                       Cost            Gain (Loss)           Value
                                 ----------------    ----------------   ----------------
<S>                              <C>                 <C>                <C>
Balance - March 31, 1999.......  $          2,372    $             --   $          2,372

Purchases......................               762                  --                762
Sales..........................            (2,673)                 --             (2,673)
Realized loss..................               (90)                 --                (90)
Unrealized gain (loss).........                --                   4                  4
                                 ----------------    ----------------   ----------------

Balance - June 30, 1999........  $            371    $              4   $            375
                                 ================    ================   ================
</TABLE>



                                       6

<PAGE>

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

This Management's Discussion and Analysis should be read in conjunction with the
condensed  consolidated  financial  statements  of the Company and related notes
included elsewhere in this Form 10-Q.

RESULTS OF OPERATIONS

NET  REVENUES.  Net  revenues  increased  approximately  $324,000 or 4% from the
comparable 1998 quarter to approximately $8.9 million for the three months ended
June 30,  1999.  The  increase  was  primarily  the result of  increases  in the
Company's  institutional  pharmacy  business with durable medical  equipment and
respiratory revenues remaining relatively constant with the prior quarter.

GROSS PROFIT. Gross profit for the three months ended June 30, 1999 and 1998 was
approximately $3.3 and $3.5 million,  respectively,  representing  approximately
37% of net sales for the three months ended June 30, 1998 as compared to 40% for
the comparable prior year period.  Gross profit  decreased  primarily due to the
Company  continuing  to  experience  downward  pressure  on its fees  within the
infusion  services  business and growth in sales in the  institutional  pharmacy
business  which  generates  a lower  gross  margin.  Compounding  this  downward
pressure on  reimbursement  rates has been a change in our managed  care patient
mix  to  lower  margin  modalities  as  a  result  of  the  prolonged,   reduced
availability of intravenous  immune gamma globulin - a higher margin  medication
frequently administered to our patients.

SELLING,   GENERAL   AND   ADMINISTRATIVE   EXPENSES.   Selling,   general   and
administrative   expenses   were   approximately   $3.0  and  $3.0   million  or
approximately  34% and 34% of net sales for the three months ended June 30, 1999
and 1998,  respectively.  There were decreases due to the elimination of certain
duplicate overhead costs resulting from the merger with Healix Healthcare,  Inc.
on April 9, 1998.  Offsetting these decreases were increases in bad debt expense
($100,000), due to general industry experience.

INTEREST EXPENSE.  Net interest increased by $230,000 for the three months ended
June 30, 1999, to approximately $487,000. This increase was due to increased net
borrowings  under our  revolving  line of credit and interest on the issuance of
$6,250,000, 12% Subordinated Debentures.

PROVISION FOR INCOME TAXES.  No provision of income taxes has been reflected due
to the Company's federal and state net operating loss credits.

FINANCIAL CONDITION

As of June 30, 1999, the Company had working capital of approximately $216,000.

The  Company's  cash  provided by financing  activities  of  approximately  $1.4
million was primarily  attributable  to the net proceeds of  approximately  $1.6
million under the Company's  revolving  credit  facility and term loan offset by
principal payments on capital leases.

                                       7
<PAGE>

Accounts  receivable  include  amounts  due from third party  payors,  primarily
governmental agencies (Medicare and Medicaid).  At June 30, 1999, gross Medicare
and Medicaid receivables aggregated approximately $5.4 million.

The Company  operates  under cash flow  pressure due to difficulty in collecting
its  accounts  receivable.  As of June 30,  1999,  the Company had  borrowed the
maximum  allowable  under its revolving loan agreement  ($9,000,000),  overdraft
line  ($1,000,000)  and  term  loan  ($725,000).  Discussions  to  increase  the
Company's borrowing capacity are in process.

DISCLOSURE REGARDING FORWARD LOOKING STATEMENTS

The Private  Securities  Litigation  Reform Act of 1995 provides a "safe harbor"
for forward looking  statements.  Certain information in Items 1 and 2 of Part I
of this Form 10-Q  include  information  that is  forward  looking,  such as the
Company's  plans to obtain  additional  financing.  The  matters  referred to in
forward  looking  statements  could be affected  by the risks and  uncertainties
involved in the Company's business.  These risks and uncertainties  include, but
are not limited to, the effect of economic and market conditions,  the impact of
the cost containment  efforts of third-party payors and the Company's ability to
obtain and  maintain  required  licenses.  Subsequent  written and oral  forward
looking  statements  attributable to the Company or persons acting on its behalf
are expressly  qualified in their entirety by the cautionary  statements in this
paragraph and elsewhere in this Form 10-Q.

ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

Not applicable.


                                       8
<PAGE>

PART II. OTHER INFORMATION

Item 1.  Legal Proceedings

                  None

Item 2.  Changes in Securities

                  None

Item 3.  Default Upon Senior Securities

                  None

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

                  None

Item 5.  Other Information

                  None

Item 6.  Exhibits and Reports on Form 8-K

                  (a) Exhibits

                      None

                  (b) Reports

                      None

                                   SIGNATURES

         In accordance with the requirements of the Exchange Act, the registrant
has duly  caused  this  report to be signed  on its  behalf by the  undersigned,
thereunto duly authorized.

                              ACCUHEALTH, INC.


Date: August 13, 1999         By: /s/  GLENN C. DAVIS
                                  --------------------------------------------
                                       Glenn C. Davis, as
                                       President and Chief Executive Officer




                                       9