NINE MONTHS ENDED MARCH 31,
                                                                             -----------------------------
                                                                                 2003              2002
                                                                             -----------       -----------
CASH FLOWS FROM OPERATING ACTIVITIES

   Net loss ...........................................................      $  (765,750)      $(4,578,716)
   (Income) loss from discontinued operations .........................          (44,982)          351,241
                                                                             -----------       -----------
   Loss from continuing operations ....................................         (810,732)       (4,224,475)
   Adjustments to reconcile net loss to cash provided by operating
   activities:

     Depreciation and amortization, including amortization
     of deferred loan costs ...........................................          921,183         1,824,089
     Provision for bad debts ..........................................           12,357            60,472
     Loss (gain) on disposal of assets and release from capital lease .              500           (28,642)
     Director compensation paid through the issuance of restricted
     common stock .....................................................          123,000                --

   Changes in operating assets and liabilities:

     Increase in accounts receivable ..................................         (169,508)         (128,530)
     Increase in prepaid expenses and other current assets ............          (25,936)         (169,606)
     Decrease in other receivables ....................................          415,484           205,117
     Increase in other assets .........................................          (20,156)           (4,466)
     Decrease in due from HMO's, net ..................................          471,629           321,459
     Increase in due to/from Medicare, net ............................          153,968         2,515,684
     Increase in accounts payable and accrued expenses ................          350,719            (9,180)
     Increase (decrease) in accrued interest payable ..................           11,477            (2,679)
                                                                             -----------       -----------
   Net cash provided by continuing operations .........................        1,433,985           356,243
   Net cash used in discontinued operations ...........................          (80,333)         (206,872)
                                                                             -----------       -----------
Net cash provided by operating activities .............................        1,353,652           149,371


CASH FLOWS FROM INVESTING ACTIVITY
   Proceeds from equipment disposals ..................................              500                --
   Proceeds from maturities of restricted cash ........................          100,056            27,738
   Property and equipment additions ...................................          (99,798)         (156,331)
                                                                             -----------       -----------
Net cash provided by (used in) investing activity .....................              758          (128,593)
                                                                             -----------       -----------


CASH FLOWS FROM FINANCING ACTIVITIES
   Payments on convertible subordinated notes .........................         (205,423)         (205,422)
   Payments on related party notes ....................................          (31,927)          (31,927)
   Principal repayments under capital lease obligation ................          (94,601)          (83,516)
   Third-party assumption of capital lease obligation .................           (1,789)               --
   Net (decrease) increase in Credit Facility .........................         (515,000)        1,300,000
   Advances from HMOs .................................................           75,000                --
   Payment on advances from HMOs ......................................          (75,000)         (450,000)
   Repayments to Medicare per agreement ...............................         (488,380)         (479,962)
                                                                             -----------       -----------

  Net cash (used in) provided by continuing operations ................       (1,337,120)           49,173
  Net cash used in discontinued operations ............................          (81,506)               --
                                                                             -----------       -----------
Net cash (used in) provided by financing activities ...................       (1,418,626)           49,173
                                                                             -----------       -----------

Net (decrease) increase in cash and cash equivalents ..................          (64,216)           69,951
                                                                             -----------       -----------
Cash and cash equivalents at beginning of period ......................          180,410           371,470
                                                                             -----------       -----------
Cash and cash equivalents at end of period ............................      $   116,194       $   441,421
                                                                             ===========       ===========


SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES:

Stock issued for deferred financing costs .............................      $   645,540         $      --
                                                                             ===========       ===========
Note payable issued for refunds due to Medicare for overpayments ......      $   694,800       $ 2,915,259
                                                                             ===========       ===========
Purchase of furniture and fixtures with proceeds of capital lease
obligations ...........................................................      $    56,463       $    36,252
                                                                             ===========       ===========