<PAGE>  

                             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          March 31, 1998
  
        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  
March 31, 1998.

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PART I - FINANCIAL INFORMATION 

                   ACADIA NATIONAL HEALTH SYSTEMS, INC. 

                           STATEMENT OF INCOME  
  
                          FOR THE THREE MONTHS  
  
                 ENDED MARCH 31, 1998 AND MARCH 28, 1997  
                               (Unaudited)  

                                  Three months ended      Three months ended
                                      March 31                  March 28 
                                  __________________       _________________
                                                   
                                        1998                      1997   
                                      ________                  ________        
 
Sales                                 $232,188                  $176,839

Operating Expenses                    $218,626                  $144,446
                                      --------                  --------

Net Operating Income                    13,562                    32,393

Other Income/(Expense), Net                  0                   (16,252) 
                                     ---------                 ---------

Net Income Before Taxes                 13,562                    16,141

(Provision for)
Benefit From Income Taxes               (2,688)                   (5,624) 
                                     ---------                  --------

 Net Income                           $ 10,874                  $ 10,517
                                     =========                  ========

Net Income Per
Common Share                          $  0.003                  $  0.003

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

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                   ACADIA NATIONAL HEALTH SYSTEMS, INC. 
                             BALANCE SHEETS  
                               (Unaudited)
 
                                    March 31, 1998           March 28, 1997
                                    ______________           ______________
 
Current Assets:
  Cash-Operating                     $    19,570             $    153,222
  Accounts Receivable                    680,811                  491,216
  Unbilled Work at Estimated
    Realizable Value                     123,208                   86,200
  Inventories                              3,700                    3,754
  Other Current Assets                    83,276                    7,397
                                    --------------          --------------
  Total Current Assets               $   910,565             $    741,789

Prop., Plant & Equip.:
  Cost                                   179,774                  168,688
  Less Accum. Depr.                      (93,298)                 (67,135)
                                    --------------          --------------
                                     $    86,476             $    101,553

Other Assets:
  Other                                    7,000                    7,500
  Organization Cost                       35,502                   34,354
  Less Accum. Amort.                      (6,655)                  (3,198)    
  Notes Receivable                        52,400                        0
                                    --------------          --------------
                                     $    88,247             $     38,656   
Total Assets                         $ 1,085,288             $    881,998
                                    ==============          ==============

Current Liabilities:
  Accounts Payable                   $    46,982             $      2,861 
  Line of Credit                         426,895                  180,051
  Accrued Expense                        170,554                  322,468
  Current Portion of
     Long Term Notes                      20,000                   18,000      
                                    --------------          -------------      
Total Current Liabilities            $   664,431             $    523,380

Long Term Liabilities:
  Long Term Debt                          87,517                  103,652
  Other Non-Current Liab.                      0                        0
                                    --------------          -------------
Total Liabilities                    $   751,948             $    627,032


Stockholders' Equity:
  Common Stock                           276,640                  251,640
  Treasury Stock                          (1,272)                       0      
  Paid In Capital                         43,840                      400
  Retained Earnings                       14,131                    2,926
                                    --------------          -------------
Total Equity                         $   333,340             $    254,966
                                    --------------          -------------
Total Liabilities &
Equity                               $ 1,085,288             $    881,998
                                    ==============          =============
See Accompanying  
 Notes to Financial
 Statements  
  
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                   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
                                        March 31               March 28   
                                        1998                   1997
                                        -------------          ------------  
Net Income (Loss)                       $ 10,874               $ 10,517

Depreciation & Amortization             $  8,811               $ 10,339

Changes in Assets & Liabilities:
   Accounts Receivable                  $(87,438)              $(83,172)
   Other Current  Assets                 (37,488)                (4,043)
   Other Non-current Assets               37,889                  4,400 
   Accounts Payable                       40,653                    293
   Other Current Liabilities              42,326                277,360
                                        -------------         -------------
Net Cash (Used for) Provided
  By Operating Activities               $ 15,627               $215,694

Investment Activities                     (1,012)               (10,938)
 
Financing Activities                      (5,000)               (71,059)
                                       --------------         -------------
   
Net Increase (Decrease) in              $  9,615               $133,697
  Cash or Cash Equivalents
 
Cash & Cash Equivalents:
  Beginning of Period                      9,955                 19,525
  
  End of Period                         $ 19,570               $153,222
                                       ==============        ==============

See Accompanying
 Notes to Financial
 Statements  

<PAGE>

                     ACADIA NATIONAL HEALTH SYSTEMS, INC.
                        NOTES TO FINANCIAL STATEMENTS  
  
                                March 31, 1998
  
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 March 31, 1998 and 3,733,987 
shares for the three months ending March 28, 1997.

Note 3. Long Term Debt - Short Term Financing  
  
     The total of lines of credit drawn upon (outstanding) from Northeast 
Bank, FSB ("Bank") as of March 31, 1998 was $426,895 on a $650,000 demand 
line limit, compared to $180,051 at March 28, 1997 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 $86,666 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.

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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 March 31, 
1998 and owned approximately 67% of the Common Stock of the Company.  
  

Note 5. Additional Bank Financing Events  
 
     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 APR.

 2.)     $100,000 term loan, 5 year variable, at 1.25%
         over national prime APR.

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

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

                                       03/31/98     03/28/97

Accounts Receivable (Trade)            $172,858     $141,033
    Advances                            631,161      436,383

Total Accounts Receivable              $804,019     $577,416 
                                       =========    ========

The advances are secured by third party collateral and pre-approval from
the State of Maine Department of Human Services.

<PAGE>

Note 7.  Note Receivable

   The Company holds $90,130 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.   

<PAGE>

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

                             March 31, 1998  
  
RESULTS OF OPERATIONS:
======================
THREE MONTHS ENDING MARCH 31, 1998
=====================================

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 March 31, l998 in a calendar month end 
and Acadia's fiscal quarters ending March 28, 1997 on the last Friday of a 
calendar month. 


SALES

Sales for the period were $232,188 compared to $176,839 for the corresponding 
period in 1997. This sales increase was due to new client business starting 
mid March 1998. Acadia was successful in adding six (6) new clients during 
mid March with annualized revenues of $325,000.  Three additional contracts 
have been secured for mid April 1998 with $100,000 revenue anticipated.  

These new clients are medical specialists in radiology, anesthesiology and 
family medicine which further compliments our solid base in these 
disciplines.  

OPERATING EXPENSES

Increases in operating expenses during the period were principally due to 
routine operating expenses, addition to increases in depreciation, office 
expenses, legal and accounting and additional members of senior management, 
and other costs incurred in preparation of becoming a reporting company

OPERATING INCOME

An operating gain for the quarter was $10,874, compared to a gain of $10,517  
for the three month period in 1997. 

<PAGE>

INCOME TAXES

Acadia is a C Corporation with current accruals for state taxes of $723 and 
Federal taxes of $2,164.   

NET INCOME

Acadia's gain of $10,874 was ($0.003) per share on 3,733,987 outstanding 
common shares.  

LIQUIDITY AND CAPITAL RESOURCES

The Company's non-trade accounts receivable increased to $631,161 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. Acadia completed most of its Corporate organization costs prior to 
this quarter.  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 our organization 
for rapid sales growth and expansion.  We have completely revised our 
operating policies, installed a new financial management system and recruited 
experienced, operational and management personnel.  Additionally, we 
maintained our public reporting and trading on the OTC Bulletin Board under 
our symbol OTCBB: ACAD.  During the third quarter 1997 year the company  
negotiated three signed Letters of Intent with other medical management 
service organizations and technology companies with which we intended to merge 
alliances.  Discussions with these businesses have been put on hold.  Acadia 
has initiated discussions with other medical service businesses about some 
form of relationship and these are ongoing. The Company is working with 
investment firms, specializing in health care companies, who arrange future 
capitalization.  Acadia is also developing a relationship with retail brokers 
to help market and support our public float.   

MAJOR ACQUISITION

The Company has ongoing discussions with various companies towards mergers and 
acquisitions that would continue to strengthen Acadia and its product lines.  

SALES TRENDS

Growth in Acadia's existing business lines, medical billing services and 
billing for waivered foster home care are positive.  Current sales run rates 
show a 60% increase in revenue since this same period last year.  
  

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

HISTORY             

Physician Resources, Inc., the predecessor of Acadia, was formed in 1972 as a 
doctor billing and bookkeeping services company.  In 1990 bookkeeping and 
doctor billing functions were segregated into separate companies.  The 
successor company, Acadia, continued the operations of Physician Resources and 
currently provides practice management, invoicing and accounts receivable 
collection services for doctors offices, foster homes and hospital-based 
practices.

On January 13, 1997, Acadia's SEC application Form 10SB was effectuated.  On 
May 20, 1997, the Company received NASD acceptance pursuant to the filing of a 
Form 211 and accompanying Information and Disclosure Statement, and began to 
trade on the OTC market during the third quarter of FY 1997.  This will allow 
the Company to approach capital markets and initiate the raising of equity 
when needed to fuel growth through mergers and acquisitions.  Access to public 
markets is critical, since the growth rates will be too rapid to fund through 
earnings or debt.

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, require 
electronic billing to reduce processing costs.  Electronic billing brought the 
added benefit of improved reliability and timeliness of third party payments, 
therefore, 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 and 
is a very successful service for Physician Resources.   

Acadia uses principally HEALTHPAC software technology.  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, D3, relational data base on Microsoft Windows 95' platform.  
These attributes will provide the technological base that will reinforce the 
company's long-term objective as a major player in tertiary markets.    

The Company will grow through strategic acquisitions, joint ventures and 
internal expansion.  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 and these 
are 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.   

<PAGE>

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  
  
  
May 13, l998                     /s/Mark T. Thatcher                
Date

                                 MARK T. THATCHER,            
                                 Filing Agent  
  
  
May 13, l998                     /s/Paul W. Chute              
Date

                                 PAUL W. CHUTE
                                 Chief Executive Officer