SECURITIES AND EXCHANGE COMMISSION
                  WASHINGTON, D.C. 20549
____________________________________________________________

                      FORM 12b-25


NOTIFICATION OF LATE FILNG

(Check One):

[x] Form 10-K    [ ] Form 20F  [ ] Form 11-K   [ ] Form 10-Q
[ ]  Form N-SAR for Period Ended:
December 31, 1997

[ ]  Transition Report on Form 10-K
[ ]  Transition Report on Form 20-F
[ ]  Transition Report on Form 11-K
[ ]  Transition Report on Form 10-Q
[ ]  Transition report on Form N-SAR
For the Transition Period Ended:__________________________


           Nothing in this form shall be construed to imply 
the Commission has verified any information contained herein. 

            If the notification relates to a portion of the 
filing checked above,identify the Item (s) to which 
the notification relates:

              The Notification relates to the entire Form 10-K
____________________________________________________________

Part I--Registrant Information
____________________________________________________________

Full Name of Registrant:

          Iatros Health Network,Inc.

Former Name if Applicable:

           GraceCare Health Systems, Inc.

Address of Principal Executive Office:

            10 Piedmont Center , Suite 400
             Atlanta, Georgia  30305  
____________________________________________________________

Part II--Rule 12b-25 (b)  and  (c) 
____________________________________________________________
 
If the subject report could not be filed without 
unreasonable effort or expense and the registrant seeks 
relief pursuant to Rule 12b-25 (b), the following should be 
completed.

X         (a)         The reasons described in reasonable 
detail in Part III of this form could not be eliminated 
without unreasonable effort or expense;

X        (b)          The subject annual report, will be 
filed on or before the fifteenth calendar day following the 
prescribed due date; and

X        ( c)        The accountant's statement or other 
exhibit required by Rule 12b-25 ( c) has been attached if 
applicable.

____________________________________________________________

Part III--Narrative

____________________________________________________________
         
         State below in reasonable detail the reasons why 
Form 10-K, 20-F, 11-K, 10-Q,  N-SAR, or the transition 
report or portion thereof could not be filed within the 
prescribed period. 

          The Report on Form 10-K will be delayed a few days 
because the audit for the year ended December 31, 1997 was 
delayed. The delay in  the audit process results principally 
from the need to assemble audit documentation from multiple 
disparate sources.
____________________________________________________________

Part IV--Other Information
____________________________________________________________

(1) Name and telephone number of person to contact 
in regard to this notification
  
      Joseph Rzepka           (404)           266-3643
____________________________________________________________       
       (Name)              (Area Code)   (Telephone Number)

(2) Have all other periodic reports required under 
section 13 or 15 (d) of the Securities Act of 1934 or 
section 30 of the Investment Company Act of 1940 
during the preceding 12 months or for such shorter 
period that the registrant was required to file such 
report(s) been filed?  If the answer is no, identify 
reports(s). 
                                    [x] Yes     [ ] No
 
(3) Is it anticipated that any significant change in 
results of operations from the corresponding period 
for the last fiscal year will be reflected by the 
earnings statements to be included in the subject 
report or portion thereof?
                                   [x] Yes     [ ] No 

            If so attach an explanation of the anticipated 
change, both narratively and quantitatively, and , if 
appropriate, state the reasons why a reasonable estimate of 
the results cannot be made.

        The Company expects to report a net loss for the 
1997 fiscal year approximating $13,500,000 upon completion 
of the ongoing audit examination. This compares to a 
reported net loss of $10,313,561 in 1996 and reported net 
income of $3,655,188 in 1995.

          The anticipated loss in 1997 results principally 
from  adjustments throughout the 1997 fiscal year to various 
recorded assets to realizable values as of December 31,1997.

                Iatros Health Network, Inc.
              _______________________________
        (Name of Registrant as specified in charter)
     
has caused this notification to be signed on its behalf by 
the undersigned thereto duly  authorized.

Date_______________      By:   /s/  Joseph L. Rzepka 
                                    Joseph L. Rzepka
                         Executive Vice President and Chief Financial Officer  

Attachment of accountants statement:

                              Asher & Company Ltd.
                                                               March 31, 1998

Mr. Joseph Rzepka
Chief Financial Officer
Iatros Health Network, Inc.
10 Piedmont Center
Suite 400 Atlanta, GA 30305

Dear Mr. Rzepka:

    We are unable at this time to provide you with our 
independent auditors report on the consolidated financial 
statements of Iatros Health Network, Inc. for the year ended 
December 31, 1997 because our audit procedures have not been 
completed.

                 \s\ Asher & Company, Ltd.
                 \s\ Asher & Company, Ltd.