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           December 31, 1997
  
        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.)  

 460 Main Street, Lewiston, Maine U.S.A.           04240       
(Address of principal executive offices)         (Zip Code)  
  
          Registrant's telephone number, including area code:  
                           (207) 777-3423
                           (800) 274-9185
 
     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 - 3,733,987 shares as of  
December 31, 1997.

PART I - FINANCIAL INFORMATION 

                   ACADIA NATIONAL HEALTH SYSTEMS, INC. 

                           STATEMENT OF INCOME  
  
                          FOR THE THREE MONTHS  
  
              ENDED DECEMBER 31, 1997 AND DECEMBER 27, 1996  
                               (Unaudited)  

                                  Three months ended      Three months ended
                                     December 31              December 27 
                                  __________________       _________________
                                                   
                                        1997                      1996   
                                      ________                  ________        
 
Sales                                 $186,883                  $195,339

Operating Expenses                    $171,683                  $123,359
                                      --------                  --------

Net Operating Income                    15,200                    71,980

Other Income/(Expense), Net            (13,808)                   83,970
                                     ---------                 ---------

Net Income Before Taxes                  1,392                   (11,990)

(Provision for)
Benefit From  Income Taxes                   0                     4,400 
                                     ---------                  --------

 Net Income                             $1,392                  ($ 7,590)
                                     =========                  ========

Net Income Per
Common Share                            $0.004                   ($0.002)

Weighted Average Number
of Common Shares
Outstanding                          3,733,987                 3,733,987      
    
See Accompanying 
Notes to Financial Statements  

                   ACADIA NATIONAL HEALTH SYSTEMS, INC. 
                              BALANCE SHEETS  
                                (Unaudited)
 
                                  December 31, 1997        December 27, 1996
                                    ______________           ______________
 
Current Assets:
  Cash-Operating                     $     9,955               $   19,525
  Accounts Receivable                    651,166                  409,355
  Unbilled Work at Estimated
    Realizable Value                      65,415                   84,889
  Inventories                              4,470                    3,234
  Other Current Assets                    45,017                    3,874
                                    --------------          --------------
  Total Current Assets                  $776,024                 $520,877

Prop., Plant & Equip.:
  Cost                                   178,474                  159,285
  Less Accum. Depr.                      (86,104)                 (59,993)
                                    --------------          --------------
                                         $92,370                  $99,292

Other Assets:
  Other                                    7,952                   11,900
  Organization Cost                       33,150                   32,819
  Less Accum. Amort.                      (5,037)                       0
  Notes Receivable                        91,689                        0
                                    --------------          --------------
Total Assets                            $996,147                 $664,888
                                    ==============          ==============
Current Liabilities:
  Accounts Payable                      $  6,330               $    2,568 
  Line of Credit                         490,014                  249,717
  Accrued Expense                         65,109                   45,108
  Current Portion of
     Long Term Notes                      20,000                   18,000      
                                    --------------          -------------      
Total Current Liabilities               $581,452                 $315,393

Long Term Liabilities:
  Long Term Debt                          92,517                  105,445
                                    --------------         --------------
Total Liabilities                       $673,969                 $420,838


                                   December 31, 1997       December 27, 1996   
                                    ______________          ______________

Stockholders' Equity:
  Common Stock                           276,640                  251,640
  Paid In Capital & Treas.                42,281                        0
  Retained Earnings                        3,258                   (7,590)
                                     --------------           -------------
Total Equity                            $322,178                 $244,050
                                     --------------           -------------
Total Liabilities &
Equity                                  $996,147                 $664,888
                                     ==============           =============
See Accompanying  
 Notes to Financial
 Statements  
  
                   ACADIA NATIONAL HEALTH SYSTEMS, INC.
                         STATEMENTS OF CASH FLOWS  
               FOR THE THREE MONTHS ENDED DECEMBER 31, 1997 
                           AND DECEMBER 27, 1996  
                                (Unaudited)  
   
                                        Quarter                Quarter
                                        Ending                 Ending
                                        December 31            December 27   
                                        1997                   1996
                                        -------------          ------------  
Net Income (Loss)                       $ 1,392                ($ 7,590)

Depreciation & Amortization             $ 7,180                 $10,920

Changes in Assets & Liabilities:
   Accounts Receivable                  $50,808               ($273,961)
   Other Current  Assets                    535                    (302)
   Other Non-current Assets               1,168                  (2,158) 
   Accounts Payable                     (12,335)                (30,934)
   Other Current Liabilities            (21,390)                 31,536
                                        -------------         -------------
Net Cash (Used for) Provided
  By Operating Activities              $ 27,357               ($272,489)

Investment Activities                   (18,401)                      0
 
Financing Activities                     (4,712)                171,026
                                       --------------         -------------
   
Net Increase (Decrease) in             $  4,244               ($101,463)
  Cash or Cash Equivalents
 
Cash & Cash Equivalents:
  Beginning of Period                     5,711                 120,988
  
  End of Period                        $  9,955              $   19,525
                                       ==============        ==============
  
See Accompanying
 Notes to Financial
 Statements  

<PAGE>
                     ACADIA NATIONAL HEALTH SYSTEMS, INC.
                        NOTES TO FINANCIAL STATEMENTS  
  
                              December 31, 1997
  
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.

     The accompanying unaudited financial statements should be read in 
conjunction with the audited balance sheet of Acadia National Health Systems, 
Inc. ("the Company") included in the 1997 Annual Report filed on Form 10-KSB.  
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 
3,733,987 shares for the three months ending December 31, 1997 and 3,733,987 
shares for the three months ending December 27, 1996.

Note 3. Long Term Debt - Short Term Financing  
  
     The total of lines of credit drawn upon (outstanding) from Northeast 
Bank, FSB ("Bank") as of December 31, 1997 was $490,014 on a $650,000 demand 
line limit, compared to $249,717 at December 27, 1996 on a line of credit from 
Peoples Heritage Bank.  
  
       On July 24, 1997, Bank provided the Company an additional $100,000 term 
loan, of which $92,517 is outstanding.  All loans made by Bank under such 
facilities are renewable at three/six month terms.   

     All loans and repayment of lines of credit payable to Bank and future 
borrowings under any such credit facilities have been collateralized by the 
accounts receivable and equipment of the Company.

<PAGE>

Note 4. Majority Stockholders  
 
     Mr. Paul W. Chute, Mrs. Jacquelyn J. Magno and Mr. Mark T. Thatcher, all 
Members of the Board of Directors, had total voting authority, on December 31, 
1997 and owned approximately 67% of the Common Stock of the Company.  
  
     Mr. Hackett, prior majority stockholder passed away unexpectedly on May 
25, 1997.  On July 29, 1997, Mr. Hackett's estate sold 2,701,000 of its shares 
or 72% of the common stock of the Company to Paul W. Chute and Jacquelyn J. 
Magno and members of senior management and current board members. 

Note 5. Additional Bank Financing Events  
  
     A. On October 1, 1996 Peoples Heritage Bank provided the Company an 
additional $100,000 term loan.
  
     B. On March 18, 1997 People's Heritage Bank provided the Company an 
additional $250,000 line of credit bringing the total line of credit to 
$500,000.  This total line of credit is secured by the accounts receivable 
and equipment of the Company.

     C. On July 24, 1997, Northeast Bank FSB of Auburn, Maine provided the 
following loans, which were used to retire all outstanding debt obligations 
(note 5. A., B.) to Peoples Heritage Bank with the following balance for 
operations:

 1.)     $400,000 line of credit for operations and funding 
         of its waivered billing/foster care product.  
         Variable at 1% over national prime July 24, 1997 APR 9.5%.

 2.)     $100,000 term loan, 5 year variable, at 1.25%
         over national prime APR as of July 24, 1997,
         9.75%.

 3.)     $250,000 line of credit to fund a new billing
         service product.  Variable at 1% over national
         prime July 24, 1997 APR 9.5%.

This new term loan and lines of credit are secured by the accounts receivable, 
inventory and equipment of the Company.

Note 6.  Account Receivable Financing

The Company has arrangements with certain customers whereby the Company 
advances the 

<PAGE>

customers amounts based on their security and collateralized by their accounts 
receivable.  The Company then assumes the responsibility for billing and 
collecting such receivables.  

                                       12/31/97     12/27/96

Accounts Receivable (Trade)            $ 38,922     $ 29,491
    Advances                            612,244      379,864

Total Accounts Receivable              $651,166     $409,355 
                                       =========    ========

Note 7.  Note Receivable

   The Company holds  $91,689 in conditional notes receivable from a vendor of 
which $75,000 earns 10% interest, due in monthly installments of $2,420, 
including interest beginning November 1, l998.  The $75,000 note is secured by 
accounts receivable, equipment and inventory of the vendor.  Both notes will 
be applied as part of the purchase price upon the successful completion of the 
purchase of the vendor by the Company (see Management's Discussion and 
Analysis).

<PAGE>

                  ACADIA NATIONAL HEALTH SYSTEMS, INC.
                      MANAGEMENT'S DISCUSSION AND  
                  ANALYSIS OF FINANCIAL CONDITION AND  
                         RESULTS OF OPERATIONS  

                            December 31, 1997  
  
RESULTS OF OPERATIONS:
======================
THREE MONTHS ENDING DECEMBER 31, 1997
=====================================

Note:

Acadia National Health Systems purchased the assets of Physician Resources, 
Inc. on September 27, 1996, and took over the operations of that company as of 
September 28, the first day of the fiscal quarter and year.  It did not 
conduct operations prior to this date. All activities for the current quarter 
are compared with the operations for the same quarter a year earlier. 
Comparative results have not been adjusted for the difference between 
Acadia's  calendar quarters ending December 31, l997 in a calendar month end 
and Acadia's fiscal quarters ending  December 27, 1996 on the last Friday of a 
calendar month. 

SALES

Sales for the period were $186,883 compared to $195,339 for the corresponding 
period in 1996.  This minor sales decline was due to the retirement of a major 
client and new clients not coming on board until March 1998.  

OPERATING EXPENSES

Increases in operating expenses during the period were principally due to: 
(i) ongoing consulting services incurred in taking the Company public; 
(ii) further developing the Letters of Intent with three corporations; and
(iii) working with an investment banker towards capital financing.  These 
operating expenses were in addition to increases in depreciation, office 
supplies and salaries and wages for additional members of 
senior management, also incurred in preparation of becoming a reporting 
Company.

OPERATING INCOME

An operating gain for the quarter was $1,392, compared to a loss of $7,590 
for the three month period in 1996. 

INCOME TAXES

Acadia is a C Corporation with no current accruals for State or Federal 
taxes. 

NET INCOME

Acadia's gain of $1,392 was ($0.0004) per share on 3,733,987 outstanding 
common shares.  

LIQUIDITY AND CAPITAL RESOURCES

The Company's non-trade accounts receivable increased to $612,244 due to the 
rapid growth of the waivered foster home and non-medical billing programs.  
These are clean secured receivables with the majority due from the State of 
Maine.  During this same period, the Company added $19,189 in property, plant 
and equipment, principally computer systems and related equipment.  Acadia 
spent over $10,000 during this quarter in Corporate organization costs 
associated with Acadia's capital financing and merger activities.  Anticipated 
public reporting expenses and planned acquisitions will place additional 
demands on liquidity during the remainder of the next year.  Management, with 
its new principal lender, Northeast Bank FSB, maintain routine analysis of the  
lines of credit and the Company's capital needs.  

OTHER INFORMATION
===================

Acadia has spent the last few months of operation preparing its organization 
for rapid sales growth and expansion.  The Company has completely revised 
its operating policies, installed a new financial management system and 
recruited experienced, operational and management personnel.  Additionally, 
Acadia maintains its public reporting and trading on the OTC Bulletin Board 
under the symbol OTCBB: "ACAD".  During the last quarter of our 1996-97 fiscal 
year, the Company negotiated three signed Letters of Intent with other medical 
management service organizations and technology companies intending to merge 
the alliances.  Discussions continue with these and other similar businesses 
for future acquisitions and mergers.  Also, the Company is actively working 
with an underwriter specializing in health care companies who will arrange our 
first public capitalization. 

MAJOR ACQUISITION

The Company has initiated discussions with various companies towards major 
acquisitions that will greatly strengthen Acadia and its product lines.  

SALES TRENDS

Trends in Acadia's existing business lines, medical billing services and 
billing for waivered foster home care, are positive, with expected
growth throughout FY 1998.  

<PAGE>

BUSINESS AND PROPERTIES OF ACADIA NATIONAL HEALTH SYSTEMS, INC.
=====================================================

HISTORY             

Thomas N. Hackett founded what later became Physician Resources (PRI) in 1971 
as the financial services arm of Advantage Business Services.  In 1990 
bookkeeping and doctor billing were separated as Bookkeeping Resources, Inc.  
In 1992 doctor billing was moved to a new company, Physician Resources, Inc., 
and commercial bookkeeping operations ceased.  Physician Resources provided 
practice management, invoicing and accounts receivable collection services for 
doctors offices, foster homes and hospital-based practices.

The doctor billing service has undergone several technical transitions since 
its inception.  In the early days the service supported physicians who wished 
to avoid an elaborate business function or complex computer systems.  As 
computer systems became simpler and easier to use, the company found other 
value added services to retain clients.  This led to practice management 
consulting and, in the last few years, electronic billing and medical service 
financing.  Many health service payers, led by Medicare and Medicaid, have 
begun to require electronic billing to reduce processing costs.  Electronic 
billing brought the added benefit of improved reliability and timeliness of 
third party payments.  This improved medical practice asset utilization and 
profitability.  Since electronic billing requires complex data modalities and 
sophisticated software procedures, it is more adaptable to a high volume 
billing service than to a single medical practitioner.  This was a very 
successful service for Physician Resources and continues to grow briskly 
within Acadia. 

On January 13, 1997, Acadia's Registration Statement on Form 10SB was 
effectuated.  On May 20, 1997, the Company received NASD trading "clearance"
pursuant to filing Form 211 and its accompanying Information and Disclosure 
Statement that commenced the trading of its stock on the OTC market during 
the third quarter of FY 1997.  This has allowed the Company to approach 
capital formation specialists and initiate the raising of equity needed to 
fuel growth and finalize its first series of acquisitions.  Access to public 
markets is critical, since the growth rates will be too rapid to 
fund through earnings or debt.

Acadia completed implementation of the significantly expanded HEALTHPAC 
software technology in the second quarter of FY 1997.  This system includes 
the capability of:  automated patient appointment scheduling, electronic 
charting features, client/server based medical practice management, electronic 
billing and  direct funds transfer.  The technology is capable of distributed 
data processing with multiple location data entry and discrete paper copy 
printing, unlimited client accounts and patient census, all running on the 
NT, PICK, D#, rational data base on Microsoft Windows  platform.  These 
attributes will provide the technological base that will reinforce the 
company's long-term objective as a major player in tertiary markets and a 
clearing house for franchised medical billing activities.  

The Company will grow through strategic acquisitions, joint ventures and 
internal expansion.  Our market capitalization will foster our national 
marketing and sales programs.  Promotion of our medical billing software 
technology and medical practice management consulting services will add 
additional growth to our front line business of medical billing.  Many 
smaller billing services and some practice management consultants are ill 
equipped to deal with the changes occurring in the health care market and 
the regulatory environment establishing them as candidates for affiliation.  
Acadia intends to grow its business through mergers and acquisitions of 
companies who's business philosophy is based on producing a high quality 
product, who's management is dedicated to long term ethical growth and who's 
organization and structure are complimentary to Acadia's vision of a superior 
company with a superior product.

<PAGE>

                        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.   
_______________________________________________________________________________

                    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  
  
  
February 12, l998                  /s/ Mark T. Thatcher                
Date

                                   MARK T. THATCHER,            
                                   Filing Agent  
  
  
February 12, l998                  /s/ Paul W. Chute              
Date                               

                                   PAUL W. CHUTE
                                   Chief Executive Officer