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 27, 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
 
<PAGE>

     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  
June 27, 1997.  

<PAGE>

<TABLE>  

PART I - FINANCIAL INFORMATION 


                                ACADIA NATIONAL HEALTH SYSTEMS, INC. 

                                         STATEMENT OF INCOME  
  
                                        FOR THE THREE MONTHS  
  
                               ENDED JUNE 27, 1997 AND JUNE 30, 1996  
                                             (Unaudited)  

<CAPTION> 
                             Three months ended             Three months ended
                             June 27                        June 30 
                             __________________             _________________
                             1997                           1996   
                             ________                       ________ 
     
<S>                          <C>                            <C>      
Sales                        $156,355                       $152,457

Operating Expenses           $159,312                       $113,411
                             --------                       --------

Net Operating Income          (2,957)                         39,045

Other Income/(Expense), Net   (7,767)                        (20,304)
                             --------                      ---------

Net Income Before Taxes      (10,724)                         18,742

Provision for Income Taxes     2,405                               0 
                             --------                       --------

Net Income                   ($8,318)                        $18,742
                            =========                       ========

Net Income Per
Common Share                 ($0.002)                         $0.005

Weighted Average Number
of Common Shares
Outstanding                3,733,987                       3,733,987      
    
<FN> See Accompanying 
Notes to Financial 
Statements  
</TABLE>

<TABLE>

                             ACADIA NATIONAL HEALTH SYSTEMS, INC. 
                                       BALANCE SHEETS  
                                         (Unaudited)

<CAPTION>

                                 June 27, 1997                   June 30, 1996
                                 ______________                  ______________
 

<S>                              <C>                             <C>
Current Assets:
  Cash-Operating                 $ 101,585                       $ 173,030
  Accounts Receivable              416,380                         208,559
  Unbilled Work at Estimated
    Realizable Value                74,836                          57,816
  Inventories                        4,091                           5,834
  Other Current Assets               4,371                           2,328
                                 --------------                  --------------
  Total Current Assets            $683,550                        $447,567

Prop., Plant & Equip.:
  Cost                             169,596                         101,557
  Less Accum. Depr.                (73,837)                        (58,626)
                                 --------------                  --------------
                                   $95,758                         $42,932

Other Assets:
  Deferred Income Taxes              7,500                               0
  Organization Cost                 34,110                          17,850
  Less Accum. Amort.                (4,912)                              0
                                 --------------                  --------------
Total Assets                      $816,006                        $508,349
                                 ==============                  ==============

Current Liabilities:
  Accounts Payable                $  1,568                          $  351
  Line of Credit                   259,446                         193,917
  Accrued Expense                  196,220                         105,022
  Current Portion of
     Long Term Notes                18,000                         128,046
                                 --------------                  --------------
Total Current Liabilities         $475,233                        $427,336

Long Term Liabilities:
  Long Term Debt                    93,349                          14,000
  Other Non-Current Liab.                0                               0
                                 --------------                  --------------
Total Liabilities                 $568,582                        $441,336

<PAGE>

                                 June 27, 1997                   June 30, 1996
                                 ______________                  ______________

Stockholders' Equity:
  Common Stock                     251,640                          1,000
  Paid In Capital & Treas.           1,715                          1,426
  Retained Earnings                 (5,391)                        64,586
                                 --------------                  --------------
Total Equity                      $274,424                        $67,012
                                 --------------                  --------------
Total Liabilities &
Equity                            $816,006                       $508,348
                                 ==============                  ============

<FN>
See Accompanying  
 Notes to Financial
 Statements  
</TABLE>
  
<PAGE>

<TABLE>

                                    ACADIA NATIONAL HEALTH SYSTEMS, INC.
                                         STATEMENTS OF CASH FLOWS  
                                 FOR THE THREE MONTHS ENDED JUNE 27, 1997 
                                            AND JUNE 30, 1996  
                                               (Unaudited)  
<CAPTION>  
                                                     
                                   Quarter                     Quarter
                                   Ending                      Ending
                                   June 27,                    June 30,
                                   1997                        1996
                                   -------------               -------------  

<S>                                <C>                         <C> 
Net Income (Loss)                    ($8,318)                    $18,742

Depreciation & Amortization           $8,417                      $3,701


Changes in Assets & Liabilities:
   Accounts Receivable                $3,914                   ($247,183)
    Other Current  Assets              2,688                        (178)
  Other Non-current Assets               244                           0
  Accounts Payable                    (1,293)                        137
  Other Current Liabilities         (126,248)                   (139,320)
                                   -------------               -------------
 
Net Cash (Used for) Provided
  By Operating Activities           $120,598                    $130,263

Investment Activities                   (908)                          0
 
Financing Activities                  69,866                      10,001
                                   ------------                -------------
   
Net Increase (Decrease) in          ($51,639)                   $140,264
  Cash or Cash Equivalents
 
Cash & Cash Equivalents:
  Beginning of Period                153,222                      32,766
  
  End of Period                     $101,583                    $173,030
                                  =============                =============
<FN>  
See Accompanying
 Notes to Financial
 Statements  
</TABLE>

<PAGE>

                  ACADIA NATIONAL HEALTH SYSTEMS, INC.
                     NOTES TO FINANCIAL STATEMENTS  
  
                             June 27, 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 1996 Registration Statement 
filed on Form 10-SB.  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 June 27, 1997 and 3,733,987
shares for the three months ending June 30, 1996 as adjusted for the
reorganization.

Note 3. Long Term Debt - Short Term Financing  
  
     The total of lines of credit drawn upon (outstanding) from Peoples
Heritage Bank ("Bank") as of June 27, 1997 was $259,446 on a
$500,000 demand line limit, compared to $193,917 at June 30, 1996.  
  
       On October 01, 1996, Bank provided the Company an 
additional $100,000 term loan, of which $90,499 is outstanding.  All loans 
made by Bank under such facilities are renewable annually.  

     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 Stockholder  
  
     On June 27, 1997, Mr. Thomas N. Hackett and Peacock Hill Farm 
Limited Liability Company, of which Mr. Hackett had total voting authority,
owned approximately 77% of the Common Stock of the Company.  
  
Note 5. Additional Bank Financing Events  
  
     A. On October 01, 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.

<PAGE>

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

                          June 27, 1997  
  
RESULTS OF OPERATIONS:
======================
THREE MONTHS ENDING JUNE 27, 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 of Physician Resources for the same quarter a year earlier.
Comparative results have not been adjusted for the difference between
Physician Resources' calendar quarters ending in a calendar month end
and Acadia's fiscal quarters ending on the last Friday of a calendar month.

SALES
Sales for the period of $156,355 were up $3,898 or 2.6% from the 
corresponding period in 1996.  This was principally due to continued
growth in the Waivered Foster Care program.  There were no
software or franchise sales during the period.
                         
OPERATING EXPENSES
Operating expenses increased $45,901 during the period, principally 
due to ongoing consulting services incurred in taking the Company
public, in addition to increases in depreciation, office supplies
and salaries and wages for additional members of Senior Manage-
ment, also in preparation of becoming a reporting Company.

OPERATING INCOME
An operating loss for the quarter was $8,318, compared to a gain of 
$18,742 for the comparable quarter in 1996.  This loss was principally
due to unusual consulting expenses and employment of executive
staff prior to public trading and expansion.

Operating expenses increased 40% to $159,312.  The Company incurred 
non-recurring expenses of $14,648 in consulting and legal expenses.  
Interest expense increased 98% to $22,558 as a result of higher credit 
line balances primarily used in its waivered foster care services.

<PAGE>

INCOME TAXES
Physician Resources was an S Corporation and incurred no tax liability.  
Acadia is a C Corporation that accrued $2,405 combined State and Federal 
tax credits for current quarter earnings.

NET INCOME
Acadia's loss of $8,318 were ($0.002) per share on 3,733,987 outstanding 
common shares.  

LIQUIDITY AND CAPITAL RESOURCES
Accounts Receivable increased $224,841 from June 30, 1996, to June 
27, 1997, principally due to the rapid growth of the Waivered Foster 
Home program.  These are solid receivables due from the
State of Maine.  During this same period, the Company added 
$60,039 in property, plant and equipment, principally computer systems 
and related equipment.  Acadia spent $101,519 during the first
three quarters of its fiscal year, September 28, 1996 through June
27, 1997 in Corporate organization costs associated with
preparation of a Uniform Franchise Offering Circular (UFOC)
and startup of Acadia as a reporting company.  Anticipated Acadia
market activities and planned acquisitions will place additional
demands on liquidity during the remainder of the year.

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

SOFTWARE CONVERSION AND PREPARATION FOR EXPANDED SALES ACTIVITY
During the second quarter, Acadia finished its conversion of its billing
software from an obsolete Unix-based system to state-of-the-art data
base technology and the Microsoft NT server.  This system now enables
Acadia to offer clients a variety of its own products and also Microsoft
products running on the network.  The conversion was a necessary first
step, learning internally in anticipation of offering these technologies
to outside clients. During the third quarter, the Company continued
offering the software for sale.

<PAGE>

UNIFORM FRANCHISE OFFERING CIRCULAR (UFOC)
The Company is preparing a UFOC for filing with the FTC in the fourth
quarter and anticipates selling Acadia franchises as soon as approval
is obtained.  Franchisees will be offered the opportunity to market Acadia's 
billing systems technology, other brand name products and related support 
services to tertiary markets throughout the country.  This timeline is a
delay from our original business plans and will adversely effect future
sales and earnings from this product line.

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 1997 and FY 1998.  Software sales, franchising,
related support services and major acquisitions are expected
to result in significant revenue and earnings increases in FY 1998
and beyond.

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.

On May 25, 1997, Thomas N. Hackett passed away unexpectedly.
Two members of Senior Management are purchasing the majority
of his shares held by estate and intend to add other key leadership
personnel immediately.  A full Board of Directors and officers
will be fully functional by the end of the FY 1997.

<PAGE>

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 creates 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.  
The company just completed expanding its state-of-the-art full-featured 
software system that will become a key component for a national billing 
service.

OBJECTIVES, NEAR-TERM

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 has allowed the Company to approach capital markets and
initiate the raising of equity needed to fuel growth and consummate a
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 significantly expanded software 
technology in the second quarter of FY 1997.  This system includes the 
capability of: automated patient appointment scheduling, electronic charting 
features, electronic billing, direct funds transfer and distributed data 
processing with multiple location data entry and discrete paper copy 
printing, unlimited client accounts and patient census, all running on the 
NT platform.  Later, full service computerized patient charting systems, 
document management systems and state of the art dictation technology will 
be added.  These attributes will provide the technological base that will 
reinforce the company as a major player in tertiary markets and a 
clearinghouse for franchised medical billing activities.

<PAGE>

OBJECTIVES, LONG-TERM

Acadia will create a franchised network of local entrepreneurs and other 
companies to market full service Physician Practice Management (PPM) 
services regionally and then nationally.  Franchisees (Associates) will 
sell practice management, billing, operations financing, accounting 
and office systems services to doctors, foster homes and other small and 
medium sized health care providers.  They will also seek joint venture and 
strategic partner alliances.  Acadia's home office will provide centralized 
and decentralized professional and data support, training, counseling, cash 
control and other management services for Franchisees (Associates).

The Company will grow through strategic acquisitions, joint 
ventures and internal expansion.  Many smaller billing services, and some 
practice management consultancies, are ill equipped to deal with the changes 
occurring in the health care market and the regulatory environment. These
are candidates for affiliation.  Acadia intends to grow its business
through mergers and acquisitions of companies whose business
philosophy is based on producing a high quality product, whose
management is dedicated to long term ethical growth and whose
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  
  
            Reports have been filed on Form 8-K during this    
            quarter as follows:   

            8-K, June 05, 1997, Item 5, Other Events

<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  
  
  
August 15, 1997              Mark T. Thatcher                
Date

                             MARK T. THATCHER,            
                             Filing Agent  
  
  
August 15, 1997 

                             Paul W. Chute              

Date                         PAUL W. CHUTE,
                             Principal Executive Officer