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

                                  FORM 10-QSB

              Quarterly Report Pursuant to Section 13 or 15(d) of the
                        Securities Exchange Act of 1934


             For the quarterly period ended           June 30, 1999


                Commission file Number                   000-28976


                      Acadia National Health Systems, Inc.

            (Exact name of registrant as specified in its charter.)



                 Colorado                              10509781
     (State or other jurisdiction of               (I.R.S. Employer
      incorporation or organization)             Identification No.)

415 Rodman Rd., Auburn , Maine U.S.A.                    04240
(Address of principal executive offices)               (Zip Code)


              Registrant's telephone number, including area code:
                                 (207) 777-3423
                                 (800) 479-3066

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
(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 [  ]

Indicate the number of shares outstanding of each of the
issuer's classes of common stock, as of the latest practical
date:

Common Stock, $0 Par Value - 5,011,987 shares as of
June 30, 1999.

<PAGE>  1

PART I - FINANCIAL INFORMATION

ITEM 1.  Financial Statements

                      ACADIA NATIONAL HEALTH SYSTEMS, INC.

                   CONDENSED CONSOLIDATED STATEMENT OF INCOME
                                   (Unaudited)

                              Three Months Ended         Nine Months Ended
                            June 30       June 30      June 30      June 30
                            ________      ________     ________     ________
                            1999          1998         1999         1998
                            ________      ________     ________     ________

Sales                           480,318   $   309,228  $ 1,609,962  $   733,635

Operating Expenses              693,459   $   278,754  $ 1,805,040  $   682,848
                            -----------   -----------  -----------  -----------

Net Operating Income           (213,141)  $    30,474  $  (195,078) $    50,787

Other Income/(Expense), Net           0   $     5,161  $    (7,656) $         -
                            -----------   -----------  -----------  -----------

Net Income (Loss) Bef. Tax     (213,141)  $    35,635  $  (202,734) $    50,787

(Provision for)
Income Taxes                     36,498   $    (7,213) $    36,498  $   (10,100)

                            -----------   -----------  -----------  -----------

Net Income                     (176,643)  $    28,422  $  (166,236) $    40,687
                            ===========   ===========  ===========  ===========

Net Income Per
Common Share                $  (0.03642)  $   0.00760  $  (0.03732) $   0.01089

Weighted Average Number
of Common Shares
Outstanding                   4,849,554     3,737,987    4,453,876    3,735,320

See Accompanying
Notes to Financial Statements

<PAGE>  2

                      ACADIA NATIONAL HEALTH SYSTEMS, INC.
                                 BALANCE SHEETS

                              June 30, 1999         September 30, 1998
                               (Unaudited)              (Audited)
Current Assets:
  Cash-Operating              $    31,150           $      2,529
  Accounts Receivable             833,466                768,751
  Unbilled Work at Estimated
    Realizable Value              442,389                232,356
  Prepaid & Other Assets          176,101                 89,519
                              -----------            -----------
  Total Current Assets        $ 1,483,107            $ 1,093,155

Prop., Plant & Equip.:
  Cost                        $   769,439                464,154
  Less Accum. Depr.              (161,762)               (94,863)
                              -----------            -----------
                              $   607,677            $   369,291
Other Assets:
Deferred Taxes                     45,000                  5,960
Intangible Assets, Net            131,509                115,077
 Notes Receivable & Advances      125,900                 63,487
                              -----------            -----------
                                  302,409                184,524

Total Assets                  $ 2,393,193            $ 1,646,970
                              ===========            ===========
Current Liabilities:
  Accounts Payable            $   121,308            $    72,633
  Line of Credit                  925,502                542,738
  Accrued Expense                  55,532                 52,109
  Current Portion of
     Long Term Notes              124,200                113,400
                              -----------            -----------
Total Current Liabilities     $ 1,226,542            $   780,880

Long Term Liabilities:
  Long Term Debt
   & Capital Leases               330,738                361,442
Deferred Taxes                $    27,000            $    12,500
                              -----------            -----------
Total Liabilities             $ 1,584,281            $ 1,154,822
                              ___________            ___________


Stockholders' Equity:
  Common Stock                $   877,640            $   394,640
  Paid In Capital                  41,993                 41,992
  Retained Earnings              (110,721)                55,516
                              -----------            -----------
Total Equity                  $   808,912            $   492,148
                              -----------            -----------
Total Liabilities &
Equity                        $ 2,393,193            $ 1,646,970
                              ===========            ===========

See Accompanying
Notes to Financial Statements.

<PAGE>  4

                      ACADIA NATIONAL HEALTH SYSTEMS, INC.
                            STATEMENTS OF CASH FLOWS
                            FOR THE SIX MONTHS ENDED

                                    June 30,              June 30,
                                    1999                  1998
                                    -----------------     -----------------

Net Income (Loss)                   $   (166,236)         $    40,687

Depreciation & Amortization               85,999               27,210

Changes in Assets & Liabilities:
   Accounts Receivable              $   (274,748)         $   233,038
    Other Current  Assets                (86,582)             (24,669)
  Other Non-current Assets              (117,885)              22,150
  Accounts Payable                        48,675               (6,308)
  Other Current Liabilities              392,387             (271,227)
                                    -----------------     -----------------

Net Cash (Used for) Provided
  By Operating Activities           $   (118,390)         $    20,881

Investment Activities                   (305,285)             (41,388)

Financing Activities                     452,296               17,758
                                    -----------------     -----------------

Net Increase (Decrease) in          $     28,621          $    (2,749)
  Cash or Cash Equivalents

Cash & Cash Equivalents:
  Beginning of Period                      2,529                5,712

  End of Period                     $     31,150          $     2,963
                                    =================     =================

See Accompanying
Notes to Financial Statements

<PAGE>  5

                      ACADIA NATIONAL HEALTH SYSTEMS, INC.
                         NOTES TO FINANCIAL STATEMENTS


June 30, 1999

Note 1. Summary of Significant Accounting Policies

     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 10QSB and Rule 310
of Regulation S B.  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 fair
presentation have been included.

Revenue Recognition

     The Company offers practice management, consulting, and billing services
to the medical community including physicians, other medical providers and
foster homes.  Billing services for these varied medical providers constitutes
a significant portion of the company's business, and clients are charged for
their services based on (a) a percentage of collections, (b) hourly rates, or
(c) fixed monthly fee arrangements.  Revenue recognition occurs when, and to
the extent, the services have been provided.

     The accompanying unaudited financial statements should be read in
conjunction with the audited balance sheet of Acadia National Health Systems,
Inc. ("the Company").  The unaudited financial statements have been prepared
in the ordinary course of business for the purpose of providing information
with respect to the interim period.

Note 2. Net Income Per Common Share

     Computation of net income per common share was based on the weighted
average number of shares outstanding during such periods.  These amounted to
4,453,876 shares for the nine months ended June 30, 1999 and 3,735,320 shares
for the nine months ending June 30, 1998.

Note 3. Long Term Debt   Short Term Financing

     One June 15, 1999, the Company signed on a $1,250,000 Revolving Line of
Credit with Citizens Bank of New Hampshire ("Bank") for its operating line
and term loan needs.  A portion of the proceeds were used to pay off existing
obligations, including long term debt, with Northeast Bank, FSB of Maine.
The total line of credit drawn upon from Bank as of June 30, 1999 was $748,154.
On that same date, Bank provided company with a $250,000 term loan with
interest at 9.02%, due in monthly installments of $5207, including interest,
through June, 2004. The note balance at June 30, 1999 is $250,000.  The line
of credit is collateralized by a first lien security interest in all corporate
assets of the company.

     The company also has a note payable collateralized by a vehicle which
totals $13,276 at June 30, 1999.

     A total of $243,085 of equipment was acquired at various times under
capital leases.  Capital lease obligations at June 30, 1999 total $191,662.

Note 4.  Account Receivable Financing

     The Company has arrangements with certain customers whereby the Company
advances the customers amounts based on their security and collateralized by
their accounts receivable.  The Company then assumes the responsibility for
billing and collecting such receivables.

                                        06/30/99     06/30/98

  Accounts Receivable (Trade)           $  602,142   $   201,114
    Advances                               673,712       333,237

  Total Accounts Receivable             $1,275,854   $   534,351
                                        ==========   ===========

The significant increase in Accounts Receivable and corresponding increase in
Accounts Payable is due to a timing difference in advances to these certain
clients.

Note 5.  Note Receivable

     The Company holds $81,671 in promissory notes receivable from a vendor
of which $75,000 earns 10% interest, due in monthly installments of $2,420,
including interest beginning November 1, 1998.  The $75,000 note is secured
by accounts receivable, equipment and inventory of the vendor.

BUSINESS

Corporate Summary

Acadia National Health Systems, Inc., a corporation originally organized in
1971 and re-organized in 1996, provides business management services to
physicians and hospitals, including data collection, data input, medical
coding, cash collections and accounts receivable management.   These services
are designed to assist customers with the business management functions
associated with the delivery of healthcare services.  We simplify the process
so that physicians and hospital staff can focus on providing quality patient
care.  In addition, our services improve cash flows and reduce administrative
costs and burdens.  We also provide information technology and consulting
services to healthcare markets.

We market our products and services primarily to integrated healthcare delivery
networks, hospitals, and physician practices.  We will also continue to focus
on smaller practices in tertiary markets ignored by the major MSO players.
Our business and marketing plan combines the experiences of its leadership
team with expanded executive talent.

Our business objective is to become a major national Accounts Receivable
Management Services organization (ARMS) over the next five years.  ARMS offer
accounts receivable management, consulting, software, business systems, and
related services to physicians and other health care providers.  In a growing
managed care environment, these firms offer business resources to an
industry that is traditionally clinically oriented.

Accounts receivable management is the cornerstone of Acadia's business, with
more than 85% of the revenue coming from this source. Accounts receivable
management is often the first service a provider seeks and becomes the entry
point for offering other services.

Our plan is to become a leading provider of business management solutions and
claims processing to physicians in the United States.  Presently we serve
individual physician clients and physician groups throughout four states.
We offer clients both revenue and cost management services.  Revenue
management services include medical coding, electronic and manual claims
submission, past due and delinquent accounts receivable collection, capitation
analysis and contract negotiation with payors, including managed care
organizations.  Cost management provides comprehensive practice management
services including front office, administration, cash flow forecasting and
budgeting and general business services.

Acadia has implemented various forms of operating platforms to offer diversity
to our clients and our core business.  The company is executing the strategic
initiatives to employ the "best demonstrated practice" through its application
of technology.  The Auburn, Maine location will become the major hub of our
Wide Area Network (WAN). We maintain T1 and 56K data frame for our current
and future remote locations.

With remote office locations and a variety of users accessing the systems,
Acadia has implemented several forms of security to protect the network from
unauthorized use.  Encryption is provided to the user and on the server level
including passwords.

PROPERTIES

Corporate headquarters and operations were relocated to a newly renovated
12,000 sq. ft. modern office building at 415 Rodman Road, Auburn, Maine.  A
fixed, five year term lease at $5.50 sq. ft., triple net, five year renewal
term and amortization of $83,000 worth of leasehold improvements over the
same period at a fixed rate of 8%.   Under the provision of the lease
agreement, Acadia has an option to acquire additional space under the same
terms and provisions.

The Company also occupies an 800 sq. ft. office suite located at 372 West
Street, Keene, New Hampshire.  The facility is used to conduct accounts
receivable management  activities with a one year lease to expire June 14,
2000.

Currently unoccupied is the former corporate and operations facility located
at 95 Park Street, Lewiston, Maine.   Acadia, with its rapid growth had
outgrown the facility by March of 1999.  The lease has an assignment and
sublet provision for the 5,600 sq. ft. area which is currently under contact
with a local real estate agent.   The lease which commenced August 1, 1998
will expire July 31, 2003.


                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                               AS OF JUNE 30, 1999

General

Acadia completed the formation of its senior management team with widely
respected and experienced individuals from healthcare administration and
operations, sales and marketing, and large industry.   We chose to recruit
recognized experts from diverse service and industrial backgrounds to
compliment our specialized operational staff.  We acknowledge the short term
economic burden this senior management team places on our cash flow and
operating expense.

We feel their reputations and expertise qualifies our long term business plan
of building the infrastructure of our organization first, then using that
structure for marketing, sales, mergers and acquisitions as well as commercial
banking, investment banking and investor relations.

Our infrastructure and systems are almost complete. During our first two-year
phase of building, significant effort has gone into the design and
implementation of a growth and quality orientated structure.  During this
period, we have been hampered by major external and resultant internal effects
of communication and hardware technology failures.

We clearly acknowledge that each and every one of these issues are part of
developing a successful business.  Each of these issues has been addressed,
valued lessons learned, systems, people and structure implemented to minimize
future recurrences and most important, aggressive and successful
implementation of our long term business plan.  We feel confident we now have
in place, our infrastructure capabilities of handing growth and producing a
superior quality product.

Consistent with our plan, marketing and sales efforts are starting to open a
number of contract and business relationship opportunities.  We have numerous
introductory meetings and proposals pending.

We have been offered an investment banking relationship with a recognized and
respected firm who specializes in businesses of our size, service and
structure.  Negotiations over terms are being reviewed.

Quarter Ended June 30, 1999 Compared to Quarter Ended June 30, 1998

Revenue:  Revenues for the three-month period ending June 30, 1999 of $480,318
compared to June 30, 1998 of $309,228 produced a 55% increase in sales.  These
revenues were adversely affected for the short term by a consolidation of
technology problems.  All issues have been identified and are being resolved.
The nine month year-to-date sales of $1,609,962 versus the same period last
year of $733,635 provided a 119% increase in sales.   These increases are from
new contracts and sales from acquisitions.

Sales:  Acadia has initiated an aggressive marketing sales effort with a number
of contract proposals currently pending.  The ramp up to revenue disclosure is
three to six months from contractual execution.

Expenses:  Operating expenses for the three month period ending June 30, 1999
were $693,459 compared to June 30, 1998 for $278,754, a 148% increase.  The
nine month year-to-date expenses of $1,805,040 versus $682,848 for a 164%
increase.  Of the total expenditures for the three months ending June 30, 1999,
$63,000 for non-reoccurring, one-time expenses.  During quarter ending
June 30, 1999, $58,000 was spent on the development and implementation of a
sales and marketing program.

Other Expenses: During the nine month year-to-date period ending June 30, 1999,
over $102,000 in consolidation expenses have been identified and eliminated.
In addition, another $125,000 in annualized corporate and operational expenses
have been identified and will be removed within the next three months without
inhibiting our sales and growth potential.

Contracts:  Acadia has signed an agreement with Wallingford Capital of
Annapolis, Maryland and Atlanta, Georgia, a nationally respected merger and
acquisition consulting firm specializing in healthcare services, to actively
explore potential partners for our consideration.  We continue to discuss a
corporate relationship with a number of companies without any guarantees for
successful mergers.  Our work and focus on mergers and acquisitions continues
to be a major part of our growth strategy.

Balance Sheet Synopsis for the Quarter Ending June 30, 1999.

Current Assets: Routine increase in trade receivable and standard
prepaid assets.

Property Plant and Equipment: Leasehold improvements to a new operations
and corporate location of $141,000 and $164,000 in operations equipment and
technology.

Other Assets: Goodwill of $25,000 on the acquisition of Robert H.
O'Donnell's business interest giving Acadia a sales office presence in
Northampton, Massachusetts.  Short term note receivables from a principal
client to be repaid over the next 12 months at market terms.

Current Liabilities: There have been routine increases in trade payables.
Acadia completed a major refinancing commercial banking relationship with
Citizens Bank of New Hampshire for its operating lines of credit and term loan
replacing similar credit with Northeast Bank, FSB of Maine. This refinancing
will allow long term access to debt and working capital.

Line of Credit:  $1,250,000 variable rate of .75% over prime; currently at
8.5% as of June 30, 1999 of which $748,154 has been drawn down.

Long Term Debt: No additional net long-term debt was added.

Term Loan:  $250,000  five year fixed rate note at 9.02 %.


Quarterly Results

     The following table sets forth selected actual historical financial data
for the fiscal quarters of 1998 and 1999.  This quarterly information is
unaudited but has been prepared on a basis consistent with the Company's
audited financial statements presented elsewhere herein and, in the Company's
opinion, includes all adjustments (consisting only of normal recurring
adjustments) necessary for a fair presentation of the information for the
quarters presented.   The operating results for any quarter are not necessarily
indicative of results for any future period.

<TABLE>
<CAPTION>


                              Quarters Ended

<S>                   <C>            <C>          <C>          <C>            <C>         <C>        <C>
                      1997           1998                                                 1999
--------------------------------------------------------------------------------------------------------------------
                      Dec 31         Mar 31       Jun 30       Sept 30        Dec 31      Mar 31     Jun 30

Revenue               $186,883       $232,188     $309,228     $406,673       $523,107    $606,537   $ 480,318*
Income from             15,200         13,562       35,635       15,974         11,177        (770)   (205,485)
    Operations
Net income               1,392         10,874       28,422      112,962         11,177        (770)   (176,643)

* Reflects short term revenue decline due to technology interruption.
</TABLE>

Liquidity and Capital Resources

A Private Offering of 1,000,000 shares of restricted common stock under Rule
505, Regulation D was authorized by the Board of Directors to be issued.
The offering was fully subscribed with 966,000 common shares at $.50 per share
for $483,000.  Senior management and board members were the largest
participants with Paul W. Chute, Chairman and Chief Executive Officer
purchasing 300,000 shares of restricted common stock.

Acquisitions for the nine month period ending June 30, 1999.

April 1, 1999 acquired limited assets of Robert H. O'Donnell's business
interest.  Acadia acquired all current and developing consulting and sales
revenues.

On September 1, 1998, Acadia National Health Systems purchased selected assets
of Northeast Medical Business Group, Inc., a medical accounts receivable
management services corporation located in Keene, New Hampshire.  The
management discussion and analysis of financial conditions and results of
operations includes the operations of Northeast from October 1, 1998 to March
31, 1999.

Y2K Compliance

The company is seeking to establish that all computer driven systems and
software in use by us will be able to recognize, calculate, and display data-
related dates correctly after the year 1999. We have established and
implemented a Y2K task force, business plan and Gantt chart.  Preliminary
assessments which are expected to be completed by September 1, 1999, have
indicated that our major hardware and software programs are or will be Y2K
compliant.  We will be converting accounts serviced by a non-compliant
software program by year end.  Our internal information systems will
conduct our own testing as necessary to control costs.

Industry Compliance

On November 30, 1998, the Office of the Inspector General (OIG) Department of
Health and Human Services released its "Compliance Program Guidance for Third-
Party Medical Billing Companies".  This comprehensive piece sets the standards
for accounts receivable management companies and healthcare professionals to
comply with Federal health program requirements. The impact of this program is
"while compliance with the guidelines is strictly voluntary, the existence of
an effective compliance program could mitigate any action".

Risk Minimization:

Aggressively enhance the companies internal  program with the proper backbone
Establish a formal audit program to measure and maintain the gains of the
program Analyze the learnings and develop into a marketable program to the
industry

Forward-Looking Statement

     This Management's Discussion and Analysis of Financial Condition and
Results of Operations includes a number of forward-looking statements which
reflects the Company's current views with respect to future events and
financial performance.  Those statements include statements regarding the
intent, belief or current expectations of Acadia National Health Systems, Inc.
and members of its management team as well as the assumptions on which such
statements are based.  Prospective investors are cautioned that any such
forward-looking statements are not guarantees of future performance and
involve risk and uncertainties, and that actual results may differ materially
from those contemplated by such forward-looking statements. Readers are urged
to carefully review and consider the various disclosures made by the Company
in this report and in the Company's other reports filed with the Securities
and Exchange Commission.  Attempt to advise interested parties of the risks
and factors that may affect the Company business is disclosed under the
section entitled Risk Factors.  Important factors currently known to
management could cause actual results to differ materially from those in
forward-looking statements.  The company undertakes no obligation to update
or revise forward-looking statements to reflect changed assumptions, the
occurrence of unanticipated events or changes in the future operating results
over time.

Risk Factors

In addition to the other information contained in this report, individuals
should carefully consider the following risk factors:

The Company believes that its assumptions are based upon reasonable data
derived from and known about its business and operations.  No assurances are
made that actual results of operations or the results of the Company's future
activities will not differ materially from its assumptions;

Additional risks factors such as the uncertainty of the Company's marketing
activities, and the results of bringing additional acquisitions and
affiliations into a smooth operation with Company are unknown;

Additional concerns regarding the year 2000 compliance standards as they effect
the Company's operating technology as well as the technologies of the industry
which effect payment and processing of Company's billings;

Additional uncertainties regarding the ability for operating cash to meet the
current and projected cash flow needs of the organization.

PART II - OTHER INFORMATION

ITEM 1. Legal Proceedings

     Neither the Registrant nor any of its affiliates are a
     party, nor is any of their property subject, to material
     pending legal proceedings or material proceedings known
     to be contemplated by governmental authorities.


ITEM 2. Changes in Securities

     None


ITEM 3. Defaults 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

        Exhibit 27. Financial Data Schedule

     b. Reports on Form 8-K

        No reports have been filed on Form 8-K during this
        quarter.

<PAGE>  15

                      ACADIA NATIONAL HEALTH SYSTEMS, INC.

                                   SIGNATURES


Pursuant to the requirement of the Securities Exchange Act of 1934,
the registrant has duly cause this report to be signed on its behalf
by the undersigned thereunto duly authorized.



                    ACADIA NATIONAL HEALTH SYSTEMS, INC.
                    Registrant


August 16, 1999     /s/ Mark T. Thatcher
Date

                    MARK T. THATCHER,
                    Filing Agent


August 16, 1999     /s/ Paul W. Chute
Date
                    PAUL W. CHUTE
                    Chief Executive Officer