U.S. Securities and Exchange Commission
                             Washington, D.C. 20549

                                   Form 10-QSB

[X]   QUARTERLY   REPORT   PURSUANT   TO   SECTION   13  OR   15(d)   OF   THE
      SECURITIES   EXCHANGE   ACT  OF 1934
        For the quarterly period ended June 30, 2001

[ ]  TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT
     For the transition period from _________ to __________

Commission file number 33-17387

                          ALLIANCE HEALTH, INC.
   (Exact name of small business issuer as specified in its charter)

        Delaware                                  75-2192377
(State or other jurisdiction of         (IRS Employer Identification
 incorporation or organization)                      No.)


              421 E. Airport Freeway, Irving, Texas 75062
                (Address of principal executive office)

                            (972)-255-5533
                      (Issuer's telephone number)
       ------------------------------------------------------------
          (Former name, former address and former fiscal year,
                      if changed since last year)

Check whether issuer (1) filed all reports required to be filed by Section 13 or
15(d) of the Exchange Act during the past 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

State the number of shares  outstanding of each of the issuer's  classes of
common equity, as of the latest practicable date: At March 31, 2000,  14,360,000
shares of common stock, $0.01 par value, were outstanding.

Transitional Small Business Disclosure Format (Check one):
     Yes      No    X

















<PAGE>


                              ALLIANCE HEALTH, INC.

                                      INDEX
                                   PAGE NUMBER

PART I    FINANCIAL INFORMATION

          Report of Independent Public Accountants           1

          Balance Sheets - June 30, 2001 and
            September 30, 2000                               2

          Statements of Income - Three Months
            and Nine Months Ended June 30, 2001 and 2000     3


          Statements of Cash Flows - Nine Months Ended
            June 30, 2001 and 2000                           4

          Notes to Financial Statements                      5

          Management's Discussion and Analysis of
            Financial Condition and Results of
            Operations                                       6



PART II   OTHER INFORMATION

          Item 6.  Exhibits and Reports on Form 8-K          7


SIGNATURES                                                   8

<PAGE>


                    REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS





Board of Directors
Alliance Health, Inc.




     We have reviewed the accompanying  balance sheets of Alliance Health,  Inc.
as of June 30, 2001,  and the related  statements  of income for the three month
and nine month periods then ended and statement of cash flows for the nine month
periods then ended.  These financial  statements are the  responsibility  of the
Company's management.

     We conducted our review in accordance  with  standards  established  by the
American  Institute  of  Certified  Public  Accountants.  A  review  of  interim
financial  information consists principally of analytical  procedures applied to
financial  data and making  inquiries of persons  responsible  for financial and
accounting  matters.  It is  substantially  less  in  scope  than  an  audit  in
accordance with generally accepted auditing standards, the objective of which is
the  expression  of an opinion  regarding the  financial  statements  taken as a
whole. Accordingly, we do not express such an opinion.

     Based on our review,  we are not aware of any material  modifications  that
should be made to the accompanying  financial statements in order for them to be
in conformity with generally accepted accounting principles.

     We have previously  audited, in accordance with generally accepted auditing
standards,  the balance sheet of Alliance Health, Inc. as of September 30, 2000,
and the related statements of income and cash flows for the year then ended (not
presented  separately  herein),  and in our report  dated  November  21, 2000 we
expressed an unqualified opinion on those financial statements.  In our opinion,
the information set forth in the accompanying  balance sheet as of June 30, 2001
is fairly  stated,  in all material  respects,  in relation to the balance sheet
from which it has been derived.



                                               Jackson & Rhodes P.C.


Dallas, Texas
July 31, 2001






<PAGE>




                              ALLIANCE HEALTH, INC.

                         PART I - FINANCIAL INFORMATION
                                 BALANCE SHEETS

                                 ASSETS

<TABLE>
<CAPTION>

                                          Jun 30, 2001   Sep 30, 2000
                                            Unaudited       Audited
                                          ------------   ------------
<S>                                       <C>            <C>
Current assets:
Cash                                      $ 2,139,188    $ 1,693,643
Accounts receivable                                 0          6,000
Note receivable                                27,593              0
Other assets                                   48,566         49,650
Income taxes receivable                        52,838              -
Deferred tax assets                            24,457         24,457
                                          -----------    -----------

Total current assets                        2,292,642      1,773,750

Property & equipment                        4,662,263      4,604,954
Less accumulated depreciation              (1,951,915)    (1,540,965)
                                          -----------    -----------
                                            2,710,348      3,063,989
                                          -----------    -----------
Total Assets                              $ 5,002,990    $ 4,837,739
                                          ===========    ===========

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
Accounts payable-affiliate                $     1,422    $   225,276
Accrued liabilities                            24,082         19,405
Current portion of long-term debt               4,987          4,706
Income taxes payable                                -        130,856
Deferred gain on sale of operation             27,593         54,496
                                          -----------    -----------
Total current liabilities                      58,084        434,739
                                          -----------    -----------

Long term debt,less current maturities        187,161        190,937

Total Liabilities                             245,245        625,676
                                          -----------    -----------

Stockholders' equity:
Preferred stock, $.01 par, 100,000
shares authorized, none issued
Common stock, $0.01 par, 20,000,000
shares authorized, 14,360,000 shares
issued and outstanding                        143,600        143,600
Additional paid-in capital                    723,466        723,466
Retained earnings                           3,890,679      3,344,997
                                          -----------    -----------
Total stockholders' equity                  4,757,745      4,212,063
                                          -----------    -----------

Total Liabilities and Equity              $ 5,002,990    $ 4,837,739
                                          ===========    ===========
</TABLE>

See accompanying notes.


                                      -2-

<PAGE>

                              ALLIANCE HEALTH, INC.

                              STATEMENTS OF INCOME

                                   (UNAUDITED)

<TABLE>
<CAPTION>

                             Three Months Ended          Nine Months Ended
                          Jun 30, 2001 Jun 30, 2000   Jun 30,2001  Jun 30, 2000
                          -------------------------   -------------------------

REVENUES:
<S>                       <C>           <C>           <C>           <C>
 Advertising income
  from affiliate          $   455,000   $   570,000   $ 1,597,000   $ 1,667,500
 MRI income from
  affiliate                   333,300       467,400       938,100     1,261,800
 Interest                      16,689        25,056        58,269        58,372
                          -----------   -----------   -----------   -----------
                          $   804,989     1,062,456     2,593,369     2,987,672


EXPENSES:
 Advertising                  190,522       250,397       638,784       689,993
 Salaries & Employee
  Benefits                     68,043       147,585       326,618       393,450
 Depreciation                 140,559       128,051       410,950       383,099
 General & Administration     156,805       283,816       571,530       665,429
                          -----------   -----------   -----------   -----------
                              555,929       809,849     1,947,882     2,131,971

 Operating income             249,060       252,607       645,487       855,701

 Other Income                  51,416       146,697       252,571       333,654
                          -----------   -----------   -----------   -----------

Income before discontinued
 operations                   300,476       399,304       898,058     1,189,355

Gain on discontinued
 operation, net of tax              0             0        33,788             0
                          -----------   -----------   -----------   -----------

Income before taxes           300,476       399,304       931,846     1,189,355

Taxes                         159,086       151,736       386,167       451,955
                          -----------   -----------   -----------   -----------

        Net income        $   141,390   $   247,568   $   545,679   $   737,400
                          ===========   ===========   ===========   ===========

 Net income per
   common share           $      0.01   $      0.02   $      0.04   $      0.05
                          ===========   ===========   ===========   ===========

Weighted average number
  of shares outstanding    14,360,000    14,360,000    14,360,000    14,360,000
                          ===========   ===========   ===========   ===========

</TABLE>

See accompanying notes.




                                      -3-




                              ALLIANCE HEALTH, INC.

                             STATEMENTS OF CASH FLOWS

                                   UNAUDITED

<TABLE>
<CAPTION>

                                             Nine Months Ended
                                        Jun 30, 2001   Jun 30, 2000
                                        ------------   ------------
<S>                                     <C>            <C>
Cash flows from operating
 activities:
  Net income                            $   545,679    $   737,400

  Adjustments to reconcile net
   income to net cash provided by
   operating activities:
      Depreciation                          410,950        383,099
      Gain on discontinued operations       (54,496)             0
      Change in assets and liabilities:
       Accounts receivable                    6,000        156,152
       Other assets                         (36,865)         9,023
       Federal income taxes payable        (183,694)       226,308
       Accounts payable                    (219,175)       (33,732)
       Accrued liabilities                        0            (24)
                                        -----------    -----------
                                            (77,280)     1,478,226
                                        -----------    -----------

      Net cash provided by
       operating activities                 468,399      1,478,226
                                        -----------    -----------

Cash flows from investing activities:
 Purchase of equipment                      (19,359)       (22,135)
                                        -----------    -----------


Cash flows from financing activities:
 Accounts receivable                              0           (399)
 Payments on long-term debt                  (3,495)        (3,236)
                                        -----------    -----------
    Net cash used by financing
      activities                             (3,495)        (3,635)

Net increase in cash                        445,545      1,452,456

Cash at beginning of period               1,693,643        592,547
                                        -----------    -----------

Cash at end of period                   $ 2,139,188    $ 2,045,003
                                        ===========    ===========

</TABLE>

See accompanying notes.

                                      -4-

<PAGE>



                              ALLIANCE HEALTH, INC.

                          NOTES TO FINANCIAL STATEMENTS
                                   (Unaudited)


Note 1.    Basis of Presentation

     The  accompanying  unaudited  financial  statements  have been  prepared in
accordance with generally accepted  accounting  principles for interim financial
information and with the  instructions to Form 10-QSB of Regulation S-B. They do
not  include all  information  and  footnotes  required  by  generally  accepted
accounting  principles for complete  financial  statements.  However,  except as
disclosed herein, there has been no material change in the information disclosed
in the notes to the financial  statements for the year ended  September 30, 2000
included in the Company's Annual Report on Form 10-KSB filed with the Securities
and Exchange  Commission.  The interim unaudited financial  statements should be
read in conjunction with those financial statements included in the Form 10-KSB.
In the opinion of management,  all adjustments  considered  necessary for a fair
presentation, consisting solely of normal recurring adjustments, have been made.
Operating  results  for the  nine  month  period  ended  June  30,  2001 are not
necessarily  indicative  of the results that may be expected for the year ending
September 30, 2001.

     All of the  Company's  income was for leases or services  rendered to S. J.
Kechejian,  M.D., P.A., Metroplex  Specialties,  P.A., Metro Pharmacy,  Inc. and
Aldine  Medical  Associates,  companies  owned by the major  stockholder.  S. J.
Kechejian, M.D., P.A. and Aldine Medical Associates merged on December 31, 2000.


Note 2.  Organization

     Alliance  Health,  Inc. (the  "Company")  was  incorporated  in Delaware on
September 4, 1987.  Effective May 12, 1995, the Company acquired the advertising
division (the "Division") of K Clinics, P.A. ("K Clinics") from S. J. Kechejian,
M.D. for  1,200,000  shares of the Company's  stock.  The  acquisition  has been
accounted for in a manner similar to the pooling-of-interests  method due to Dr.
Kechejian's control of the respective companies.

Note 3.  Stock Split

     The Company announced a 4-1 split of its common shares,  effective December
24, 1999. All share and per share amounts were retroactively adjusted to reflect
the effects of the split.

Note 4.  Discontinued Operation

     During the year ended  September 30, 2000,  the Company  agreed to sell its
newly formed  chiropractic  subsidiary.  During the quarter  ended  December 31,
2000, the Company sold the subsidiary for a note receivable of $27,593.  Gain on
the note has been deferred until collection is assured. The transaction resulted
in a pre-tax gain of $54,496.


                                      -5-


<PAGE>


                              ALLIANCE HEALTH, INC.

                      MANAGEMENT'S DISCUSSION AND ANALYSIS

                        OF INTERIM FINANCIAL INFORMATION

     The  following  is   management's   discussion   and  analysis  of  certain
significant  factors which have affected the Company's  financial  condition and
operating  results  for  the  period  included  in  the  accompanying  financial
statements.

Results of Operation and Financial Condition

     For the nine  months  ended June 30,  2001 and 2000,  the Company had total
revenue of $2,593,369  and  $2,987,672,  respectively,  which  constitutes a 13%
decrease for the nine month period.  Advertising  income  decreased for the nine
month  period.  S. J.  Kechejian,  M.D.,  P.A.  notified the Company that it has
consolidated and/or closed several locations. Advertising, marketing and leasing
are the Company's sources of income. The Company has an ongoing  arrangement for
these services with S. J. Kechejian, M.D., P.A., Metroplex Specialties, P.A. and
Metro Pharmacy, Inc.

     The three MRI's (one unit is mobile) and the CT Scanner are being leased to
Metroplex Specialties, P.A. The revenue generated is on a per scan basis. During
the quarter  ended June 30,  2001,  there has been a 29% decrease in income from
these leases due to a decrease in the number of scans performed.

     The Company is leasing  three of the  facilities  it owns to an  affiliated
company, S. J. Kechejian,  M.D., P.A. The facility in Dallas, Texas owned by the
Company is leased to a third party and the  facility  in  Sherman,  Texas is not
leased at this time.

     The  expenses  during  the  nine  months  ended  June  30,  2001,  included
advertising,  salaries and employee benefits, depreciation and other general and
administrative  costs in the amount of  $1,947,882.  This is an 8.6% decrease in
expenses over the same period last year, due primarily to decreases in marketing
and salaries.

     A Management  Service Agreement with Aldine Medical  Associates  ("Aldine")
had been in effect  since July,  1998.  The  Agreement  was  cancelled by Aldine
effective  December 31, 2000.  Aldine had paid management  service fees on a per
patient visit and fees varied depending on the services given.

Liquidity and Capital Resources

     The  Company  had cash of  $2,139,188  at June 30,  2001,  an  increase  of
$445,545 from cash on hand at September 30, 2000. This increase was attributable
to the Company's  decision not to make any major capital  purchases.  Management
believes that the Company has sufficient  capital  resources for the foreseeable
future.

                                      -6-





<PAGE>




                              ALLIANCE HEALTH, INC.

                           PART II - OTHER INFORMATION


         None.






















                                      -7-



<PAGE>




                                   SIGNATURES


     Pursuant  to the  requirements  in Section  13 or 15 (d) 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.




DATED: August 14, 2001               By:  Sarkis J. Kechejian, M.D.
                                          Sarkis J. Kechejian, M.D.
                                          President, Director and
                                          Treasurer


















                                      -8-