<ARTICLE> 5 <LEGEND> This schedule contains financial information extracted from the consolidated balance sheet and the consolidated statement of income filed as part of the report on Form 10-QSB and is qualified in its entirety by reference to such report on Form 10-QSB. </LEGEND> <CIK> 0000915127 <NAME> PHC, Inc. <MULTIPLIER> 1 <CURRENCY> US <PERIOD-TYPE> 3-MOS <FISCAL-YEAR-END> JUN-30-1999 <PERIOD-START> JUL-1-1998 <PERIOD-END> SEP-30-1998 <EXCHANGE-RATE> 1.000 <CASH> 81,275 <SECURITIES> 0 <RECEIVABLES> 11,370,337 <ALLOWANCES> 3,539,637 <INVENTORY> 0 <CURRENT-ASSETS> 8,735,304 <PP&E> 3,071,281 <DEPRECIATION> 946,796 <TOTAL-ASSETS> 16,970,435 <CURRENT-LIABILITIES> 8,282,748 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 10 <COMMON> 56,626 <OTHER-SE> 4,402,018 <TOTAL-LIABILITY-AND-EQUITY> 16,970,435 <SALES> 0 <TOTAL-REVENUES> 4,911,295 <CGS> 0 <TOTAL-COSTS> 4,698,323 <OTHER-EXPENSES> 172,964 <LOSS-PROVISION> 356,190 <INTEREST-EXPENSE> 286,688 <INCOME-PRETAX> 40,008 <INCOME-TAX> 911 <INCOME-CONTINUING> 39,097 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 39,097 <EPS-PRIMARY> .01 <EPS-DILUTED> .01