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  quarter  ended
                  September 30, 1998
                                       or
             [ ]  TRANSITION  REPORT  PURSUANT  TO  SECTION  13 OR 15 (d) OF THE
                  SECURITIES EXCHANGE ACT OF 1934


                         Commission File Number 1-12992


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


      STATE OF NEVADA                              34-1711764
      (State or other jurisdiction of            (I.R.S. Employer
       incorporation or  organization)           identification No.)
                            

            5770 Roosevelt Boulevard, Suite 700, Clearwater, FL  33760
               (Address of principal executive offices)         (Zip Code)


         Issuer's telephone number, including area code: (727) 524-3227


Indicate by check mark whether the issuer (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 (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. [ X ] Yes [ ] No


The number of shares outstanding of the Issuer's common stock at $.001 par value
as of November 20, 1998 was 4,966,620 (exclusive of Treasury Shares).

                                   Form 10-QSB
                                       1

<PAGE>


              NuMED Home Health Care, Inc. and Subsidiaries
                       Consolidated Balance Sheets


                                                     Sept 30     March 31
                                                      1998         1998
                                                   -----------  -----------
                      ASSETS
Current assets:
  Cash and cash equivalents                          $118,836      $59,725
  Cash deposits securing contractual arrangements   1,176,000    1,275,980
                                                   -----------  -----------
                                                    1,294,836    1,335,705
  Accounts receivable, net of allowance for
     doubtful accounts of $304,796                  4,330,848    4,343,476
  Prepaids, inventories, and other current assets     198,102      335,825
                                                   -----------  -----------
Total current assets                                5,823,786    6,015,006

Property and equipment, net                           311,696      382,928
Goodwill, net of amortization of $1,185,248
  and $1,271,584 respectively                       3,908,551    4,081,222
 Other intangibles assets, net of accumulated 
  amortization of $1,938,301 and $1,912,826 
  respectively                                        213,350      242,563
Deferred tax and other                                 34,185       34,185
                                                   -----------  -----------
Total assets                                     $ 10,291,568 $ 10,755,904
                                                   ===========  ===========


       LIABILITES AND STOCKHOLDERS' EQUITY
Current liabilities:
  Trade accounts payable                            $ 281,506    $ 289,850
  Accrued salaries and payroll related                903,981    1,291,419
  Accrued expenses                                    105,899      278,055
  Estimated amounts due to third party payors               0       21,345
  Short-term borrowings                             2,081,371    1,596,424
  Current portion of long-term obligations             13,396       97,053
                                                   -----------  -----------
Total current liabilities                           3,386,153    3,574,146

Long-term obligations, less current portion           910,466      917,427
                                                   -----------  -----------
Total liabilities                                   4,296,619    4,491,573

Stockholders' equity:
  Preferred stock, authorized 2,000,000, no
    shares issued or outstanding                            0            0
  Common stock, $.001 par value, authorized
     48,000,000 shares, 5,010,219 shares issued         5,010        5,010
  Additional paid-in capital                       10,653,754   10,653,754
  Treasury stock, 43,599 and 67,075 shares of 
    common stock at  cost, respectively               (87,634)     (87,634)
  Accumulated deficit                              (4,576,181)  (4,306,799)
                                                   -----------  -----------
Total stockholders' equity                          5,994,949    6,264,331
                                                   ===========  ===========
Total liabilities and stockholders' equity       $ 10,291,568 $ 10,755,904
                                                   ===========  ===========

                See notes to consolidated financial statements.
                                  Form 10-QSB
                                       2


<PAGE>
<TABLE>


                  NuMED Home Health Care, Inc. and Subsidiaries
                      Consolidated Statements of Operations
<CAPTION>

                                                       Six Months Ended   September 30,
                                                           1998              1997
                                                      -----------------  ---------------

<S>                                                        <C>             <C>         
Revenues                                                   $9,379,647      $ 11,346,079
Direct expenses                                             6,917,841         8,421,177
Gross profit                                                2,461,806         2,924,902

General and administrative expenses:
Salaries and benefits                                       1,613,572         1,785,057
Operating expenses                                            466,268           361,848
Professional fees                                             107,599            73,074
Legal fees                                                     74,054            20,745
Occupancy expenses                                            450,592           332,291
Insurance                                                     121,627           129,292
Amortization and depreciation                                 276,172           307,441
Bad debt expense                                                  125               382
                                                      -----------------  ---------------
                                                            3,110,009         3,010,130
                                                      -----------------  ---------------
Operating income (loss)                                      (648,203)          (85,228)

Other revenues (expenses):
Interest income                                                26,009            31,659
Interest expense                                             (142,644)          (30,624)
Other Income (Expense)                                        500,337                 0
                                                      -----------------  ---------------
Total other revenues (expenses)                               383,702             1,035
                                                      -----------------  ---------------


Profit (Loss) before income tax expense (benefit)            (264,501)          (84,193)
Income tax expense (benefit)                                    4,881             6,730
                                                      =================  ===============
Net profit (loss)                                          $ (269,382)        $ (90,923)
                                                      =================  ===============

Net income (loss) per share-basic and diluted                 $ (0.05)          $ (0.02)
                                                      =================  ===============

Weighted average shares outstanding-basic and diluted       4,950,845         4,943,144
</TABLE>


                 See notes to consolidated financial statements
                                  Form 10-QSB
                                       3

<PAGE>
<TABLE>

                  NuMED Home Health Care, Inc. and Subsidiaries
                      Consolidated Statements of Operations
<CAPTION>

                                                      Three Months Ended September 30,
                                                           1998              1997
                                                      -----------------  --------------

<S>                                                        <C>              <C>        
Revenues                                                   $4,633,483       $ 5,712,386
Direct expenses                                            $3,374,138         4,177,546
                                                      -----------------  --------------
Gross profit                                                1,259,345         1,534,840


General and administrative expenses:
Salaries and benefits                                        $800,020           939,228
Operating expenses                                           $242,090           223,385
Professional fees                                             $52,139            39,149
Legal fees                                                    $63,961            15,335
Occupancy expenses                                           $265,874           188,063
Insurance                                                     $65,053            65,509
Amortization and depreciation                                $141,117           163,275
Bad debt expense                                                 $125               381
                                                      -----------------  --------------
Total general and administrative                            1,630,379         1,634,325
                                                      -----------------  --------------
Operating income (loss)                                      (371,034)          (99,485)


Other revenues (expenses):
Interest income                                              ($16,148)           14,654
Interest expense                                             ($72,621)          (54,329)
Other Income                                                 $500,337                 0
                                                      ------------------  --------------
Total other revenues (expenses)                               411,568           (39,675)
                                                      ------------------  --------------

Profit (Loss) before income tax expense (benefit)              40,534          (139,160)
Income tax expense (benefit)
                                                      ------------------  --------------
Net profit (loss)                                            $ 40,534        $ (139,160)
                                                      ==================  ==============

Net income (loss) per share-basic and diluted                  $ 0.01           $ (0.03)
                                                      ==================  ==============

Weighted average shares outstanding-basic and diluted       4,950,845         4,943,144
</TABLE>

                 See note to consolidated financial statements
                                  Form 10-QSB
                                       4

<PAGE>

<TABLE>

                  NuMED Home Health Care, Inc. and Subsidiaries
                 Consolidated Statements of Stockholders' Equity
        Six Months Ended September 30, 1998 and Year Ended March 31, 1998
<CAPTION>

                                   Additional
                                Common Stock       Paid-in   Accumulated    Treasury Stock
                              Shares    Dollars    Capital    (Deficit)    Shares   Dollars       Total
                            ---------------------------------------------------------------------------------

<S>                          <C>        <C>      <C>          <C>            <C>      <C>         <C>        
Balance at April 1, 1997     5,010,219  $ 5,010  $10,679,113  $ (2,342,321)  (67,075) $ (134,821) $ 8,206,981

Net loss                                                        (1,964,478)                        (1,964,478)
Shares issued under
 employee stock purchase plan                        (25,359)                 23,476      47,187      21,828
                            ---------------------------------------------------------------------------------
Balance at March 31, 1998    5,010,219    5,010   10,653,754    (4,306,799)  (43,599)    (87,634)  6 ,264,331

Net loss                                                          (269,382)                          (269,382)
                           ----------------------------------------------------------------------------------
Balance at September
 30, 1998                    5,010,219  $ 5,010  $10,653,754 $  (4,576,181)  (43,599)  $ (87,634) $ 5,994,949
                            =================================================================================
</TABLE>


                 See notes to consolidated financial statements
                                  Form 10-QSB
                                       5
<PAGE>


<TABLE>

                  NuMED Home Health Care, Inc. and Subsidiaries
                      Consolidated Statements of Cash Flow
<CAPTION>

                                                                   September 30       March 31
                                                                      1998              1998
                                                                 ----------------  ---------------
Cash flows from operating activities
<S>                                                                   <C>            <C>          
Net Income loss                                                       $ (269,382)    $ (1,964,478)

Adjustments  to  reconcile  net income  loss to net cash
  provided  by (used in) operating activities:
     Depreciation and amortization                                       276,172          604,479
     Cash securing contractual arrangements                                               103,733
     Loss on sale or disposal of property, plant and equipment
     Increase (decrease)in cash due to net changes in operating
     assets and liabilities:
          Accounts receivable                                             12,628         (901,427)
          Prepaids  and other current assets                             137,723          (53,732)
          Accounts payable and accrued expenses                         (589,283)        (401,512)
          Deferred charges and other                                           0          499,897
                                                                 ----------------  ---------------
Net cash provided by (used in ) operating activities                    (432,142)      (2,113,040)

Cash flows from investing activities
Purchase of property and equipment                                        (3,056)        (129,289)
Purchase of accounts receivable lists
                                                                 ----------------  ---------------
Net cash provided by (used in) investing activities                       (3,056)        (129,289)

Cash flows from financing activities
Proceeds from borrowings                                               6,178,744        9,979,258
Payments from borrowings                                              (5,784,415)      (9,095,492)
Proceeds from issuance of stock through employee purchase plan                             21,828
Proceeds from the issuance of stock through exercise of stock options                           0
Cash securing letters of credit                                           99,980          599,020
Purchase of treasury stock                                                                      0
Collection  of note receivable                                                                  0
Net cash provided by (used in) financing activities                      494,309        1,504,614
                                                                 ----------------  ---------------
 Increase (decrease) in cash and cash equivalents                         59,111         (737,715)
Cash and cash equivalents at beginning of year                            59,725          797,440
                                                                 ----------------  ---------------
Cash and cash equivalents at end of year                          $      118,836   $       59,725
                                                                 ================  ===============

Supplemental Disclosure:
Interest paid during the year                                     $      142,644   $      197,105
                                                                 ================  ===============
Income taxes paid during the year                                 $        -       $        -
                                                                 ================  ===============
</TABLE>


                 See notes to consolidated financial statements
                                  Form 10-QSB
                                       6


<PAGE>


NuMED Home Health Care Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements
(Unaudited)

September 30, 1998

NOTE A-BASIS OF PRESENTATION

     The accompanying unaudited condensed consolidated financial statements have
been prepared in accordance with generally  accepted  accounting  principles for
interim  financial  information  and with the  instructions  to Form  10-QSB and
Article  10 of  Regulation  S-X.  Accordingly,  they do not  include  all of the
information and footnotes required by generally accepted  accounting  principles
for complete financial statements. In the opinion of management, all adjustments
(consisting  of  normal  recurring  accruals)  considered  necessary  for a fair
presentation  have been  included.  Operating  results for the six month  period
ended September 30, 1998 are not necessarily  indicative of the results that may
be expected for the year ending March 31, 1999 for further information, refer to
the consolidated  financial  statements and footnotes  included in the Company's
and Subsidiaries' Form 10-KSB for the year ended March 31, 1998.

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

Results of Operations

     Net Revenues for the six months ended September 30, 1998,  decreased by 17%
or  $1,966,000  over  the  same  period  one  year  ago.  The  revenues  in  the
rehabilitation division, NuMED Rehabilitation,  Inc. ("NuMED Rehab"),  decreased
$465,000  or 13%  compared  to the same  period  last  year.  The  cause was the
completion of the transition of a major rehab client's in-house therapy program.
The major firm  contributed  $884,000 to the  company's  six month revenue ended
September  30,  1997.  The company has  replaced  47% of this revenue in the six
months ending  September 30, 1998. The Home Health  division's  revenue decrease
$1,570,000  or  20%  compared  to  the  same  period  last  year.   The  Company
strategically  took a  conservative  stand  with  the new IPS  (Interim  Payment
System) regulations  enacted by the federal government by successfully  reducing
the number of visits per  patient.  The company  developed  a  disease/treatment
program called Clinical Pathways to help achieve the goal. Additionally the firm
has now completed a complete  review of the potential  impact of Interim Payment
System  (IPS) after  calculating  the per  beneficiary  cap (per client) and has
developed a  statistical  ratio of shorter term client  diagnosis vs longer term
client diagnosis.  Because of the compilation, the firm believes it can accept a
greater number of longer-term clients,  which is expected in the later quarters.
The Home Health Division now comprises 67% of the total revenues compared to 68%
for the six month period last year.


                                  Form 10-QSB
                                       7

<PAGE>

     For the three month  period  ending  September  30,  1998  direct  expenses
declined  $803,000 or 19%. For the six month period  ending  September  30, 1998
direct  expenses  decreased  $1,503,000  or 18% compared to the same period last
year. As a percentage of net revenues,  direct expenses remained constant at 74%
compared to the same six month  period one year ago. The cost of sales for NuMED
Rehab is 82% and the cost of sales for the NuMED Home Health division is 69%.

     Gross Profit has  remained a constant  27% as a percentage  of net revenues
for the three month period ending  September 30, 1998 and September 30, 1997 and
26% as a percentage  of net revenues for the six month period  ending  September
30, 1998 and September 30, 1997.

     General  and  Administrative  expenses  for the three month  period  ending
September  30, 1998,  decreased  $4,000 while  increasing as a percentage of net
revenue by 6% to $1,631,000 or 35% of net revenue from  $1,634,000 or 29% of net
revenue  for the same period one year ago.  The  decrease of $4,000 was over the
same period one year ago.

     As a result of the  foregoing,  the  Company  experienced  a net  profit of
$41,000 for the three months ended September 30, 1998, as compared to a net loss
of $139,000 for the same period one year ago.  For the six month  period  ending
September 30, 1998 the Company experienced a net loss of $269,000 as compared to
a net loss of $91,000 for the same period one year ago.

     Management  has and is  taking  specific  steps to  control  costs  such as
consolidation of offices and monitoring  productivity.  NuMED Rehabilitation has
been  consolidated  with the Parke  Home  Health  Care site in  Cincinnati  Ohio
resulting  in annual  savings  of over  $30,000.  July 1, 1998  Florida  Nursing
Services  and Total  Professional  Health  Care  offices  were  combined  in St.
Petersburg  Florida and the Total  Professional  Health Care Clearwater  Florida
office  was  combined  with  Countryside  Health  Services.  Each  consolidation
resulted in the savings of an Assistant  Administrator  in addition to occupancy
expenses.  Consolidation  of the back office  processes and  monitoring of field
personnel  efficiencies  is expected to assist in managing  future  cost. A full
review of present  contracts is underway to evaluate  profitability  in light of
the IPS and PPS industry changes.

      During the third quarter of fiscal 1997, NuMED paid a total of $568,000 to
a key rehab customer, representing disallowed costs for the client's fiscal year
ending June 30, 1996, The Company was successful in its pursuit and $525,000 was
accepted as recovery of the disallowed  costs in the appeal process.  The entire
disallowed cost was expensed and the $525,000 was included in other income.


                                  Form 10-QSB
                                       8

<PAGE>

Liquidity and Capital Resources

     The  Company's  working  capital  and  current  ratio  remained  steady  at
$2,437,000  and 1.7,  respectively,  as of September  30,  1998,  as compared to
$2,441,000 and 1.7,  respectively,  as of March 31, 1998. Cash decreased $41,000
for the six months ended  September 30, 1998, as compared to March 31, 1998. The
decrease in cash was primarily attributable to normal operations.



     The Company has established a $3,000,000  credit facility  secured by NuMED
Home  Health  Care,  Inc.,  NuMED  Rehabilitation,  Inc.,  Silver  Moves,  Inc.,
Countryside Health Services, Inc., Pennsylvania Medical Concepts, Inc. and Parke
Home Health Care, Inc. The credit advances are limited to the aggregate accounts
receivable  balances  of  qualified  accounts  under 120 days.  The  outstanding
balance as of September 30, 1998 was $1,806,370.

     The Company has two additional  lines of credit in the amount of $1,500,000
and $275,000.  The credit lines are fully secured by  certificates  of deposits.
There was $901,000 and $275,000 outstanding as of September 30, 1998.

     The  Company's  net  income  has  been  and will  continue  to be  impacted
significantly  by the non-cash  charge of  amortization  expense of goodwill and
intangible  assets of the  Company.  At  September  30,  1998,  net goodwill and
intangible assets of the Company were $4.0 million. The amortization of goodwill
and intangible assets in the future will decrease net income or increase any net
loss.

      The Company  funded its cash flow  requirements  through  borrowings.  The
Company believes that its current cash reserves, current cash flow and the funds
available under its credit facilities will allow the Company to continue to meet
its expected  operating expenses and working capital needs for at least the next
12 months.

                                  Form 10-QSB
                                       9

<PAGE>


                           Part II - OTHER INFORMATION

Item 1. LEGAL PROCEEDINGS


     The Company maintains  professional liability insurance in amounts believed
to be adequate by the Company based on its  experience.  Currently,  the Company
maintains  coverage  on  its  home  health  care  operations  in the  amount  of
$1,000,000 per occurrence with a $3,000,000  annual limit. The Company maintains
coverage on its  rehabilitation  therapy  operations in the amount of $4,000,000
annual  limit.  The Company may be subject to  liability  for the actions of its
employees  who provide  medical  services.  There can be no  assurance  that the
Company's  professional liability insurance will cover all types of claims, that
such  insurance  will  continue to be available to the Company on terms that are
acceptable  to it, or that the  amount  of such  insurance  will be  sufficient.
allegations.


Items 2 through 4. - Not applicable


Item 5. OTHER INFORMATION

     On August 20, 1998, the Company signed an Agreement and Plan of Merger with
Mednu  Acquisition  Corp.  ("Mednu")  Mednu was  organized by certain  investors
residing  in New Jersey to effect the  acquisition  of  synergistic  health care
companies to provide  comprehensive  home health care services,  back-office and
management services.

     The merger was subject to satisfactory completion of due diligence, Mednu's
receipt of an acceptable  financing  commitment  and  shareholder  approval.  On
October 14,  1998 after the  satisfactory  completion  of due  diligence,  Mednu
terminated  the  agreement  because of Mednu's  failure to secure  financing  or
commitments  on terms  satisfactory  to Mednu.  Mednu cited current  unfavorable
financial market  conditions.  However the Company and Mednu continue to discuss
alternative structures which could be mutually beneficial to the shareholders of
each respective company.

     On November 12, 1998 a Preliminary  Proxy  Statement was filed  pursuant to
section 14(a) of the  Securities  Exchange Act of 1934 to change  control of the
company's  management.  On November 24, 1998 the Company  filed a lawsuit due to
the violation of the Section 13(D) filing.



Item 6.  EXHIBITS AND REPORTS ON FORM 8-K

(a)  Exhibits. There are no exhibits filed with this report

                                  Form 10-QSB
                                       10

<PAGE>

(b) Reports on Form 8-K. The Company did not file any reports on Form 8-K during
the quarter ended June 30, 1998.

                                  Form 10-QSB
                                       11

<PAGE>


                                   SIGNATURES

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



                                         NuMED Home Health Care, Inc.


 Date: November 20, 1998                 By:  /s/Jugal K. Taneja
                                             -------------------
                                         Jugal K. Taneja
                                         Chairman of the Board,
                                         Chief Executive Officer


 Date: November 20, 1998                 By:  /s/ Marilyn K. Maginnes
                                              -----------------------
                                         Marilyn K. Maginnes
                                         Corporate Controller
                                         Principal Accounting Officer

                                  Form 10-QSB
                                       12