<ARTICLE> 5 <LEGEND> This schedule contains summary financial information extracted from the consolidated balance sheet and the consolidated statement of income filed as part of the report on Form 10-KSB and is qualified in its entirety by reference to such report on Form 10-KSB. </LEGEND> <CIK> 0000915127 <NAME> PHC, Inc <MULTIPLIER> 1 <CURRENCY> US <PERIOD-TYPE> 3-MOS <FISCAL-YEAR-END> JUN-30-1998 <PERIOD-START> JUL-1-1997 <PERIOD-END> Sep-30-1997 <EXCHANGE-RATE> 1.000 <CASH> 144,645 <SECURITIES> 0 <RECEIVABLES> 13,486,251 <ALLOWANCES> 3,219,992 <INVENTORY> 0 <CURRENT-ASSETS> 11,401,358 <PP&E> 10,383,292 <DEPRECIATION> 2,067,329 <TOTAL-ASSETS> 26,749,524 <CURRENT-LIABILITIES> 7,508,017 <BONDS> 6,752,748 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 53,736 <OTHER-SE> 8,012,395 <TOTAL-LIABILITY-AND-EQUITY> 26,749,524 <SALES> 0 <TOTAL-REVENUES> 10,137,105 <CGS> 0 <TOTAL-COSTS> 10,559,733 <OTHER-EXPENSES> 488,010 <LOSS-PROVISION> 483,778 <INTEREST-EXPENSE> 488,010 <INCOME-PRETAX> (910,638) <INCOME-TAX> 8,000 <INCOME-CONTINUING> (918,638) <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (918,638) <EPS-PRIMARY> (.21) <EPS-DILUTED> (.21)