form_10q-093002
                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q

(Mark One)

[X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
     ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED September 30, 2002


[    ]  TRANSITION  REPORT  PURSUANT  TO SECTION  13 OR 15(d) OF THE  SECURITIES
     EXCHANGE ACT OF 1934



Commission File Number:                         0-24768
                        --------------------------------------------------------

                              MEDIX RESOURCES, INC.
               (Exact name of issuer as specified in its charter)


            Colorado                                        84-1123311
--------------------------------------------------------------------------------
(State or other jurisdiction of incorporation           (I.R.S. Employer
or organization)                                        Identification No.)

420 Lexington Avenue, Suite 1830  New York, New York               10170
--------------------------------------------------------------------------------
(Address of principal executive offices)                           (Zip Code)


                                 (212) 697-2509
--------------------------------------------------------------------------------
                (Issuer's telephone number, including area code)


     Indicate  by check  mark  whether  the  issuer  (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. [X] Yes [ ] No

     Indicate the number of shares  outstanding of each of the issuer's  classes
of common stock, as of November 11, 2002.


        Common Stock, $0.001 par value                       71,302,815
        ------------------------------                       ----------
                     Class                                Number of Shares







                              MEDIX RESOURCES, INC.



                                      INDEX


PART I. Financial Information

          Item 1. Financial Statements

               Consolidated  Balance Sheets - September 30, 2002 (Unaudited) and
               December 31, 2001

               Unaudited  Consolidated  Statements of Operations -- For the Nine
               Months Ended September 30, 2002 and September 30, 2001

               Unaudited  Consolidated  Statements of Cash Flows -- For the Nine
               Months   Ended    September    30,   2002   and   September   30,
               2001

               Notes to Unaudited Consolidated Financial Statements

          Item 2.  Management's  Discussion and Analysis of Financial  Condition
               and Results of Operations

          Item 3. Quantitative and Qualitative Disclosures About Market Risk

          Item 4. Controls and Procedures


PART II. Other Information

          SIGNATURES

          Index to Exhibits








                              MEDIX RESOURCES, INC.

                           Consolidated Balance Sheets

                                                  September 30,     December 31,
                                                       2002             2001
                                                           (Unaudited)
                                     Assets
Current assets
  Cash and cash equivalents .....................  $   267,000      $     8,000
  Accounts receivable, trade ....................        1,000             --
  Prepaid expenses and other ....................      240,000          344,000
                                                   -----------      -----------
      Total current assets ......................      508,000          352,000

Software development costs, net .................    1,024,000          649,000
Property and equipment, net .....................      335,000          365,000
Goodwill, net ...................................    1,735,000        1,735,000
                                                   -----------      -----------

Total assets ....................................  $ 3,602,000      $ 3,101,000
                                                   ===========      ===========

                      Liabilities and Stockholders' Equity

Current liabilities
  Notes payable .................................  $    17,000      $   158,000
  Convertible notes payable .....................    1,000,000             --
   Advance from related party ...................       50,000
  Accounts payable ..............................      567,000          851,000
  Accounts payable-related parties ..............      130,000          166,000
  Accrued expenses ..............................      407,000          450,000
  Deferred revenue ..............................      155,000             --
  Accrued payroll taxes interest and penalties ..      131,000          131,000
                                                   -----------      -----------
      Total current liabilities .................    2,457,000        1,756,000
                                                   -----------      -----------

Stockholders' equity
  1996 Preferred stock, 10% cumulative
   convertible, $1 par value; 488 shares
   authorized; 155 shares issued; 1 share
   outstanding ..................................         --               --
  1999 Series B convertible preferred stock,
   $1 par value; 2,000 shares authorized; 1,832
   shares issued; 50 shares outstanding .........         --               --
  1999 Series C convertible preferred stock,
   $1 par value; 2,000 shares authorized; 1,995
   shares issued; 100 and 375 shares
   outstanding ..................................         --               --
  Common stock, $.001 par value; 100,000,000
   authorized; 65,842,599 and 56,651,409 issued
   and outstanding ..............................       66,000           56,000
  Dividends payable with common stock ...........        8,000            7,000
  Additional paid-in capital ....................   39,848,000       35,341,000
  Accumulated deficit ...........................  (38,777,000)     (34,059,000)
                                                  ------------     ------------
      Total stockholders' equity ................    1,145,000        1,345,000
                                                  ------------     ------------

Total liabilities and stockholders' equity ...... $  3,602,000     $  3,101,000
                                                  ============     ============






                             MEDIX RESOURCES, INC.

                 Unaudited Consolidated Statements of Operations


                                   For the Three  For the Three  For the Nine    For the Nine
                                   Months Ended   Months Ended   Months Ended    Months Ended
                                   September 30,  September 30,  September 30,   September 30,
                                       2002           2001           2002            2001
                                   .............  .............  .............   .............

Revenues ......................   $       --      $       --      $     10,000    $     30,000

Direct costs of services ......        103,000           5,000         495,000          38,000
                                  ------------    ------------    ------------    ------------

Gross margin ..................       (103,000)         (5,000)       (485,000)         (8,000)
                                  ------------    ------------    ------------    ------------

Software research and
 development costs ............        153,000         348,000         533,000         947,000

Selling, general and
 administrative expenses ......      1,422,000       1,594,000       3,390,000       4,611,000


Impairment of intangible Assets           --         1,111,000            --         1,111,000
                                  ------------    ------------    ------------    ------------

Net loss from operations ......     (1,678,000)     (3,058,000)     (4,408,000)     (6,677,000)


Other income ..................          2,000          11,000           7,000          11,000


Financing Costs ...............        (43,000)       (121,000)       (246,000)       (346,000)


Interest expense ..............        (13,000)        (15,000)        (71,000)        (64,000)
                                  ------------    ------------    ------------    ------------

Net loss ......................   $ (1,732,000)   $ (3,183,000)   $ (4,718,000)   $ (7,076,000)
                                  ============    ============    ============    ============

Net loss per common share .....   $      (0.03)   $      (0.06)   $      (0.08)   $      (0.14)
                                  ============    ============    ============    ============

Weighted average shares
outstanding ...................     63,767,646      51,267,407      60,698,928      49,308,780
                                  ============    ============    ============    ============

Had the Company adopted FAS 142 as of January 1, 2001, the historical amounts previously
reported would have been adjusted to the following:

Net (loss) as reported                             $(3,183,000)                $(7,076,000)
Add back:  Goodwill amortization                      39,000                     121,000
                                                   -----------                 -----------

Adjusted net loss                                  $(3,144,000)                $(6,955,000)
                                                   ===========                 ===========

Basic and diluted  loss per share
as reported                                        $    (0.06)                 $    (0.14)
                                                   ==========                  ==========

Goodwill amortization                              $      --                   $      --
                                                   ===========                 ==========

Adjusted loss per share                            $    (0.06)                 $    (0.14)
                                                   ==========                  ==========




                            MEDIX RESOURCES, INC.

                 Unaudited Consolidated Statements of Cash Flows


                                                               For the Nine Months
                                                               Ended September 30,
                                                          ---------------------------
                                                               2002           2001
                                                          ------------    -----------
Cash flows from operating activities
  Net loss .............................................   $(4,718,000)   $(7,076,000)
  Adjustments  to  reconcile  net  income  (loss) to net
   cash flows (used in) provided by operating activities
    Depreciation and amortization ......................       238,000        375,000
    Amortization  of  discount  and  warrants-
     convertible debt ..................................        70,000        374,000
   Options  and  warrants  issued  in  conjunction  with
    stock issuance, services and for litigation
    settlements, respectively ..........................       177,000        503,000
   Options  and  warrants  issued  in for  consulting
    services ...........................................        92,000           --
   Write off of unrecoverable intangible assets, net              --        1,111,000
   Write off of leasehold improvements .................         7,000           --
   Net changes in current assets and current liabilities       589,000      1,130,000
                                                           -----------    -----------
      Net cash flows  (used in)  provided  by  operating
       activities ......................................    (3,545,000)    (3,583,000)
                                                           -----------    -----------
Cash flows from investing activities
  Software development costs incurred ..................      (522,000)      (366,000)
  Purchase of property and equipment ...................       (69,000)       (66,000)
                                                           -----------    -----------
      Net cash flows (used in) investing activities ....      (591,000)      (432,000)
                                                           -----------    -----------
Cash flows from financing activities
  Advances received on convertible note ................     1,000,000      1,500,000
  Advances from related party ..........................        50,000           --
  Proceeds from short term borrowings-related parties ..       155,000           --
  Repayment of short term borrowings-related parties ...      (191,000)          --
  Payments on capital leases and debt ..................      (208,000)      (130,000)
  Proceeds from the issuance of common stock, net of
   offering costs ......................................     3,474,000      1,481,000
  Net proceeds from exercise of options and warrants ...       115,000        230,000
                                                           -----------    -----------
      Net cash  flows  provided  by (used in)  financing
       activities ......................................     4,395,000      3,081,000
                                                           -----------    -----------

Net increase (decrease) in cash and cash equivalents ...       259,000       (934,000)
Cash and cash equivalents at beginning of period .......         8,000      1,007,000
                                                           -----------    -----------

Cash and cash equivalents at end of period .............   $   267,000    $    73,000
                                                           ===========    ===========


Non-cash and investing and financing activities for the nine months ended September 30,
 2002:

      Options and warrants valued at $92,000 for services provided.
      Options valued at $132,000 as financing costs issued to an officer for past
       financial support.
      An accrued liability of $590,000 for warrants earned in 2001 was satisfied by
       issuing the warrants.
      Warrants issued to related party in connection with advances provided valued at
       $45,000.
      In-the-money conversion feature on convertible debt valued at $70,000.
      Financed insurance policies of $65,000 by issuing a note payable.

Non-cash and investing and financing activities for the nine months ended September 30,
 2001:

      Conversion of preferred stock into common stock.
      Conversion of $1,000,000 note payable into 1,618,477 shares of common stock.
      Financed insurance policies of $3,000 by issuing a note payable.





                              MEDIX RESOURCES, INC.

              Notes to Unaudited Consolidated Financial Statements


Note 1 - Summary of Significant Accounting Policies

The consolidated  financial statements are unaudited and reflect all adjustments
(consisting only of normal recurring adjustments),  which are, in the opinion of
management,  necessary for a fair  presentation  of the  financial  position and
operating results for the interim periods. The unaudited  consolidated financial
statements  as of September  30, 2002 have been  derived from audited  financial
statements.  The unaudited  consolidated  financial  statements contained herein
should be read in  conjunction  with the financial  statements and notes thereto
contained  in the  Company's  Form 10-K for the fiscal year ended  December  31,
2001. The results of operations for the nine months ended September 30, 2002 are
not  necessarily  indicative  of the results  for the entire  fiscal year ending
December 31, 2002.

Cost of Services Provided

Cost of services provided includes amortization of software development costs on
projects ready for their intended use, license and data service fees.


Note 2 - Goodwill

                                                          September 30,
                                                               2002
                                                          -------------
  Goodwill acquired through the Cymedix acquisition        $ 2,369,000
  Less accumulated amortization                               (634,000)
                                                           -----------
                                                           $ 1,735,000
                                                           ===========

The Company has  completed  step one,  impairment  review of FAS 142,  effective
January  1,  2002,  and has  determined  that  the fair  value of that  goodwill
associated  with its Cymedix  reporting unit using a discounted cash flow method
had no impairment.


Note 3 - Equity Transactions

The Company  received  proceeds of $114,750  from the exercise of stock  options
resulting  in the  issuance of 315,000  shares of common  stock during the first
three quarters of 2002.

Equity Line

The Company had entered into an Equity Line of Credit Agreement dated as of June
12, 2001,  which was terminated by the mutual agreement of the parties on August
6, 2002. During the period January to April 2002, the Company received $972,000,
net of commissions and escrow fees from eight equity line advances, resulting in
the issuance of 1,954,715 shares of common stock.

Warrants

As of February 18,  2002,  the Company  executed a Amended and  Restated  Common
Stock Purchase Warrant  obligating the Company to issue up to 7,000,000 warrants
under  an  agreement  with a  pharmacy  management  company  for  the  Company's
proprietary  software to be interfaced with core medical service  providers,  in
which one of the  Company's  audit  committee  members is a related party to the
pharmacy management company.  The agreement provides for 3,000,000 warrants with
an exercise  price of $.30,  3,000,000  warrants with an exercise price of $.50,
and 1,000,000 warrants with an exercise price of $1.75 all expiring September 8,
2004.  The right to exercise  the  warrants  are earned in  increments  based on
certain performance  criteria.  At September 30, 2002, 1,850,000 of the warrants
had been earned.

The Company has the obligation to provide  5,150,000  warrants under the Amended
and Restated  Common  Stock  Purchase  Warrant in the future if the  performance
criteria specified are met.

The agreement  provides for a total of 5,150,000  remaining  warrants under five
performance   criteria   categories   which  can  be  earned  in  any  order  or
concurrently.  Had  all  of  the  remaining  performance  criteria  been  met at
September 30, 2002, the fair value of the related warrants and resulting expense
would have been  approximately  $  $1,691,000,  using the  Black-Scholes  option
pricing  model,  with  assumptions of 121%  volatility,  no dividend yield and a
risk-free rate of 5.5%.

Convertible Loan

The Company entered into a secured convertible loan agreement dated February 19,
2002 with  WellPoint  Health  Networks  Inc. in which a member of the  Company's
audit  committee is a related party,  pursuant to which we borrowed  $1,000,000.
The loan would have become  payable on February 19, 2003, if not converted  into
our common  stock.  The loan earned  annual  interest at a floating  rate of 300
basis  points over prime,  as it is adjusted  from time to time,  which was also
payable at maturity  and may be converted  into common  stock.  Conversion  into
common  stock was at the  option of either  WellPoint  or Medix at a  contingent
conversion price. The Company recorded  financing costs during the first quarter
of 2002  associated  with this loan  agreement  as a result of the  in-the-money
conversion  feature  totaling  $70,000.  The loan was  secured by the grant of a
security interest in all Medix's  intellectual  property,  including its patent,
copyrights and trademarks. Medix converted the principal of and interest accrued
on the note into  2,405,216  common  shares on  October 9,  2002.  The  security
interest in Medix's intellectual property was also released.

The Company  received a $50,000  advance from a director of the Company,  during
July  2002.  The  advance  allows  for  conversion  into  125,000  shares of the
Company's common stock. The Company also issued 125,000 warrants, exercisable at
$.50 per share in connection  with the advance.  This advance was converted into
125,000  shares of common stock  subsequent to September 30, 2002.  The warrants
and number of conversion shares are identical to those offered under the private
placements.

Private Placements

During April 2002,  the Company  initiated a private  placement of its $.001 par
value common stock. A total of 3,452,500  units were placed,  each consisting of
one share of common stock and one warrant.  Subscribers  purchased each unit for
$0.40 and are entitled to exercise  warrant  rights to purchase one share of the
common  stock of the company at a purchase  price of $.0.50 per share for a five
year period on or after  September 1, 2002 and prior to  September 1, 2007.  The
Company received a total of $1,381,000 from this private placement.  The Company
has  committed  to  register  the  above  underlying  shares  in a  registration
statement  with  the  Securities  and  Exchange  Commission  within  90  days of
completion  of the offering.  Subsequently,  some of these  subscribers  holding
warrants to purchase  1,770,000 shares of common stock, have agreed to amend the
exercise period of their warrants from July 1, 2003 to December 31, 2008

During July 2002, the Company  initiated a second private placement of its $.001
par value common stock. A total of 3,600,000 units were placed during the period
July to  October  2002,  each  consisting  of one share of common  stock and one
warrant.  Subscribers purchased each unit for $0.40 and are entitled to exercise
warrant  rights to  purchase  one share of the common  stock of the company at a
purchase price of $.0.50 per share for a five year period on or after January 1,
2003 and prior to January 1, 2008.  The Company  received a total of  $1,440,000
from this  private  placement.  The Company has  committed to register the above
underlying  shares in a registration  statement with the Securities and Exchange
Commission within 90 days of completion of the offering.


Note 4 - Stock Options

During the first nine months of 2002,  the Company  granted  options to purchase
1,918,500  shares  at  exercise-  prices  of $.38 to $.94 per  share to  current
employees and directors and consultants of the Company, under the Company's 1999
Stock Option Plan.  During the first nine months of 2002,  315,000 stock options
were exercised.


Note 5 - Related Party Transactions

The Company received advances from a related party in 2001 that totaled $166,000
at December 31, 2001. The entire amount was repaid during February 2002.  During
July and August 2002, the Company received advances that totaled $130,000 from a
related party.

The Company  also  received an advance of $50,000  from a member of the board of
directors during July 2002, which was converted subsequent to September 30, 2002
into 125,000 shares of common stock.  The Company also issued 125,000  warrants,
exercisable at $.50 per share in connection  with the advance.  The warrants and
number of  conversion  shares are  identical to those  offered under the private
placements.

The Company has also entered into  transactions  and  agreements  with Wellpoint
Health  Networks,  Inc., in which a member of the Company's audit committee is a
related party. (See Note 3, Warrants and Convertible Loan.)


Note 6 - Litigation

August 7, 2001, a former officer of the Company filed an action,  entitled Barry
J. McDonald v. Medix Resources,  Inc.,  f/k/a  International  Nursing  Services,
Inc., and John Yeros,  CN 01CV2119,  in the District  Court of Arapahoe  County,
Colorado,  against the Company and its former  President  and CEO. The plaintiff
alleged (1) breach of an employment agreement,  a stock option agreement and the
related stock option plan,  (2) a duty of good faith and fair  dealing,  and (3)
violation  of the  Colorado  Wage Claim Act. On August 13,  2002,  we reached an
agreement in principal  with the  plaintiff to settle the  litigation  by paying
plaintiff  $25,000 on or before October 1, 2002,  with no admission of liability
on our part. This settlement  agreement has been signed and the $25,000 was paid
during September 2002.

On December 17, 2001, Vision Management  Consulting,  L.L.C., filed suit against
us in the  Superior  Court of New Jersey,  Law  Division - Essex  County,  in an
action entitled Vision Management Consulting,  L.L.C. v. Medix Resources,  Inc.,
Docket No.  ESX-L-11438-01.  The  complaint  filed by Vision  alleged  breach of
contract,  unjust enrichment,  breach of the duty of good faith and fair dealing
and  misrepresentation  on the part of Medix in connection  with our performance
under a  negotiated  settlement  agreement  which we had entered into to resolve
certain  claims  that  existed  between  the  parties  and that arose out of the
termination of operations of our Automated  Design Concepts  division earlier in
2001.  On August 12, 2002,  we reached an agreement in principal  with Vision to
settle this litigation by payment from us to Vision of $55,000,  to be paid over
the  next  three  months,  with no  admission  of  liability  on our  part.  The
settlement  agreement has been signed and $32,000 of the  settlement  amount was
paid during September 2002.


Subsequent Events - Acquisition Letter of Intent

On  October  30,  2002,  the  Company  announced  that  it  has  entered  into a
non-binding Letter of Intent with PocketScript, LLC. Under the Letter of Intent,
Medix would purchase all of the assets of  PocketScript  and related  companies,
subject to the  completion  of  satisfactory  due  diligence on the part of both
companies and negotiation and execution of definitive  documents by December 20,
2002.  If  consummated,  Medix would issue its  convertible  preferred  stock to
PocketScript,  convertible into 12 million shares of common stock,  subject to a
downward  adjustment if a certain  closing  value is not realized.  In addition,
Medix would issue up to $4 million in additional  convertible preferred stock if
certain  business  enhancement  events occur within six months of the closing of
the  acquisition.  The sale of any stock issued by Medix would be restricted for
periods from 3 to 24 months after closing.  Medix must also pay to  PocketScript
$100,000 on or before October 31, 2002. Medix will also enter into employment or
consulting agreements with key PocketScript  employees,  and will be required to
raise $1  million  prior to  closing.  Finally,  PocketScript  will  obtain  the
termination of a right of first refusal held by a third party.


Item 2: Management's  Discussion and Analysis of Financial Condition and Results
of Operations

Overview

We are an information  technology  company  headquartered in New York City, with
offices in Agoura Hills, California,  Greenwood Village,  Colorado and Marietta,
Georgia.  We  specialize  in  the  development,   marketing  and  management  of
connectivity  solutions  for  clinical  and  business  transactions  within  the
healthcare  industry.   Through  our  wholly  owned  subsidiary,   Cymedix  Lynx
Corporation,  a Colorado  corporation,  we have developed  Cymedix(R),  a unique
healthcare   communication  technology  product.   Cymedix(R)software   provides
healthcare  institutions,  such as health plans, insurers and hospitals, as well
as practicing physicians,  with a set of non-invasive technology tools to enable
Internet-based health care transactions among all parties.

Implementation of the Cymedix(R)products suite promises to speed and improve the
efficacy of daily interactions between health caregivers and their staffs, other
ancillary  providers  (such as labs or  pharmacy  benefit  managers),  insurance
companies,  hospitals, Integrated Delivery Networks (IDNs) and Health Management
Organizations  (HMOs).  We believe  that the  market  for  robust and  practical
healthcare solutions will grow rapidly, and that segment growth will continue to
accelerate as the joined emphases of consumer  choice,  quality,  administrative
service  and cost  containment  ratchets up demand for ever more  efficient  and
user-friendly   methods   of   delivering   quality   healthcare.    Using   the
Cymedix(R)tools,  medical professionals can order,  prescribe and access medical
information   from   participating   insurance   companies   and  managed   care
organizations,  as well as from any participating  outpatient  service provider,
such as a laboratory or pharmacy. Currently we provide our products to physician
users at no charge, and collect transaction fees from sponsoring payors whenever
our  products  are used to  provide  services.  From  time to time,  we will pay
honorariums or provide other  incentives to selected  physicians to engage their
expertise  as members of  Company-sponsored  advisory  panels  provide  in-depth
product feedback and establish "model office" operations in selected areas.

The  detection  of market  restrictions  that are local to Georgia  has led to a
rethinking   and   recalibration   of  physician   marketing  and   distribution
initiatives.  Specifically,  the Company will aggressively  implement and test a
variety of complementary pathways to expedite distribution and deployment of our
technologies  to  physician  communities  in multiple  markets,  including:  (i)
nationally-oriented  brand  building;  (ii) potential  franchising and outsource
arrangements; and (iii) licensing and co-branding opportunities.


Forward-Looking Statements and Associated Risks

This Report contains forward-looking statements, which mean that such statements
relate to events or transactions that have not yet occurred, our expectations or
estimates  for our  future  operations  and  economic  performance,  our  growth
strategies or business  plans or other events that have not yet  occurred.  Such
statements can be identified by the use of  forward-looking  terminology such as
"might," "may," "will," "could," "expect,"  "anticipate,"  "estimate," "likely,"
"believe," or "continue" or the negative thereof or other variations  thereon or
comparable   terminology.   The  following  paragraphs  contain  discussions  of
important  factors that should be considered by prospective  investors for their
potential impact on forward-looking  statements  included in this Report.  These
important  factors,  among others, may cause actual results to differ materially
and  adversely  from the  results  expressed  or implied by the  forward-looking
statements.

We have reported net losses of ($10,636,000),  ($5,415,000) and ($4,847,000) for
the years ended December 31, 2001, 2000 and 1999, respectively. At September 30,
2002 we had an accumulated  deficit of ($38,777,000)  and a negative net working
capital deficit of $(1,949,000).  These losses and negative  operating cash flow
have caused our accountants to include a "going concern"  qualification in their
report in connection  with their audit of our financial  statements for the year
ended December 31, 2001.

We  expect  to  continue  to  experience  losses,  in  the  near  term,  as  our
connectivity products are not yet deployed in full-scale  transaction production
and  therefore  are not  generating  significant  revenue.  Working  capital  is
required   to  support   the   ongoing   development   and   marketing   of  the
Cymedix(R)service products until such time as revenue generation can support the
Company financially. To address this need, we are presently in negotiations with
institutional sources regarding debt and equity instruments to fund the Company.
While there can be no assurance that  additional  investments or financings will
be available to us as needed, management fully expects to conclude the necessary
financing  in the near term.  Failure to obtain such  capital on a timely  basis
could result in lost business opportunities,  the sale of the Cymedix(R)business
at a distressed price or the financial failure of our Company.

We develop products for Internet-based communications and information management
for medical service providers, through our wholly owned subsidiary, Cymedix Lynx
Corporation.  Our  Cymedix(R)products  are  still in the  development  and early
deployment stage and have not generated any significant  revenue to date. We are
funding  our  operations  through  the sale of our  securities.  Our  ability to
continue to sell our securities can not be assured.

We are  still in the  process  of  gaining  experience  in  marketing  physician
connectivity  products,  providing  support  services,   evaluating  demand  for
products, financing a technology business and dealing with government regulation
of health information technology products.  While we are putting together a team
of experienced  executives,  they have come from different  backgrounds  and may
require  some time to develop an efficient  operating  structure  and  corporate
culture for our company. See "The Company-Recent Developments."

As a  developer  of  connectivity  technology  products,  we will be required to
anticipate  and  adapt to  evolving  industry  standards  and new  technological
developments.  The market for our products is  characterized  by  continued  and
rapid  technological   advances  in  both  hardware  and  software  development,
requiring  ongoing  expenditures  for  research  and  development,   and  timely
introduction  of  new  products  and  enhancements  to  existing  products.  The
establishment of standards is largely a function of user acceptance.  Therefore,
such standards are subject to change. Our future success, if any, will depend in
part upon our ability to enhance existing  products,  to respond  effectively to
technology  changes,  and to introduce  new products and  technologies  that are
functional  and  meet  the  evolving  needs  of our  clients  and  users  in the
healthcare   information   systems   market.   The   introduction  of  physician
connectivity  products  in our market has been slow due,  in part,  to the large
number of small practitioners who are resistant to change and the implicit costs
associated  with change,  particularly  in a period of rising pressure to reduce
costs in the market.  In addition,  the  integration of processes and procedures
with several  payors and  management  intermediaries  in a market area has taken
more time than anticipated. The resulting delays continue to prevent the receipt
of significant  transaction  fees and cause us to continue to raise money by the
sale of our securities to finance our operations.

Our early-stage market approach  concentrated  product distribution efforts in a
single market (Atlanta,  GA), thereby  amplifying the effect of localized market
restrictions on Company prospects,  and delaying large-scale distribution of our
products.  While the Company  intends to mitigate  these local  factors  with an
aggressive  strategy  to develop  alternate  distribution  channels  in multiple
markets, there can be no assurance of near term success.

We  are  currently  devoting  significant   resources  toward  the  development,
distribution and deployment of our Cymedix(R)products. There can be no assurance
that we will successfully complete the development of these products in a timely
fashion or that our  current or future  products  will  satisfy the needs of the
healthcare  information systems market.  Further, there can be no assurance that
products  or  technologies  developed  by others will not  adversely  affect our
competitive  position or render our products or technologies  noncompetitive  or
obsolete.

The success of our products and services in generating revenue may be subject to
the quality and  completeness  of the data that is  generated  and stored by the
physician   or   other   healthcare    professional   and   entered   into   our
interconnectivity  systems,  including  the  failure  to  input  appropriate  or
accurate information. Failure or unwillingness by the healthcare professional to
accommodate the required information quality may result in the payor refusing to
pay Medix for its services.

Certain of our products provide  applications that relate to patient  medication
histories and treatment plans. Any failure by our products to provide  accurate,
secure and timely  information  could result in product liability claims against
us by our clients or their affiliates or patients We do not yet have significant
transactions  over our network,  so that the risks of a product  liability claim
are low.  However,  we are  seeking  product  liability  coverage,  which may be
prohibitive  in cost.  There can be no assurance  that we will be able to obtain
such  coverage  at an  acceptable  cost or that  our  insurance  coverage  would
adequately  cover any claim asserted against us. Such a claim could be in excess
of the limits  imposed by any  policy we might be able to obtain.  A  successful
claim brought against us in excess of any insurance coverage we might have could
have a material adverse effect on our results of operations, financial condition
or business.  Even unsuccessful  claims could result in the expenditure of funds
in litigation, as well as diversion of management time and resources.

We have been granted certain patent rights,  trademarks and copyrights  relating
to its software business. However, patent and intellectual property legal issues
for software programs,  such as the Cymedix products,  are complex and currently
evolving.  Since patent applications are secret until patents are issued, in the
United States, or published,  in other countries,  we cannot be sure that we are
first to file any patent  application.  In  addition,  there can be no assurance
that competitors,  many of which have far greater resources than we do, will not
apply for and obtain  patents that will interfere with our ability to develop or
market  product  ideas  that we have  originated.  Further,  the laws of certain
foreign countries do not provide the protection to intellectual property that is
provided in the United States,  and may limit our ability to market our products
overseas.  We cannot give any assurance that the scope of the rights we have are
broad enough to fully protect our Cymedix software from infringement.

Litigation   or  regulatory   proceedings   may  be  necessary  to  protect  our
intellectual  property  rights,  such as the scope of our patent.  In fact,  the
computer   software   industry  in  general  is   characterized  by  substantial
litigation.  Such  litigation and regulatory  proceedings are very expensive and
could be a significant  drain on our resources and divert resources from product
development.  There is no assurance that we will have the financial resources to
defend our patent rights or other  intellectual  property from  infringement  or
claims of  invalidity.  We have been  notified by a party that it  believes  our
pharmacy  product may infringe on patents that it holds. We have retained patent
counsel who made an  investigation  and  determined,  in its  opinion,  that our
pharmacy product does not infringe on the identified  patent.  We have responded
to the initial  notice based on our  counsel's  opinion.  At this time, no legal
action has been instituted.

We also rely upon  unpatented  proprietary  technology  and no assurance  can be
given  that  others  will not  independently  develop  substantially  equivalent
proprietary  information  and techniques or otherwise gain access to or disclose
our  proprietary  technology or that we can  meaningfully  protect our rights in
such unpatented proprietary technology.  We will use our best efforts to protect
such  information and techniques,  however,  no assurance can be given that such
efforts will be  successful.  The failure to protect our  intellectual  property
could cause us to lose  substantial  revenues and to fail to reach our financial
potential over the long term.

The healthcare and medical services industry in the United States is in a period
of rapid change and uncertainty.  Governmental programs have been proposed,  and
some  adopted,  from  time to  time,  to  reform  various  aspects  of the  U.S.
healthcare delivery system. Some of these programs contain proposals to increase
government  involvement in healthcare,  lower  reimbursement rates and otherwise
change the operating environment for our customers.  Particularly, HIPAA and the
regulations  that are being  promulgated  thereunder  are causing the healthcare
industry  to  change  its  procedures  and incur  substantial  cost in doing so.
Although we expect these  regulations to have the beneficial  effect of spurring
adoption of our software  products,  we cannot  predict with any certainty  what
impact, if any, these and future  healthcare  reforms might have on our software
business.

Competition can be expected to emerge from  established  healthcare  information
vendors  and  established  or new  Internet  related  vendors.  The most  likely
competitors  are  companies  with a focus on  clinical  information  systems and
enterprises with an Internet commerce or electronic network focus. Many of these
competitors  will have  access  to  substantially  greater  amounts  of  capital
resources than we have access to, for the financing of technical,  manufacturing
and marketing efforts. Frequently, these competitors will have affiliations with
major medical product or software development  companies,  who may assist in the
financing  of such  competitor's  product  development.  We will  seek to  raise
capital to develop Cymedix products in a timely manner,  however, so long as our
operations  remain  under-funded,  as they now are, we will be at a  competitive
disadvantage.

The  success  of  the   development,   distribution   and   deployment   of  our
Cymedix(R)products  is dependent to a significant  degree on our key  management
and technical  personnel.  We believe that our success will also depend upon our
ability to attract,  motivate and retain highly skilled,  managerial,  sales and
marketing,  and technical personnel,  including software programmers and systems
architects  skilled in the computer  languages  in which our  Cymedix(R)products
operate. Competition for such personnel in the software and information services
industries is intense.  The loss of key  personnel,  or the inability to hire or
retain qualified personnel,  could have a material adverse effect on our results
of operations, financial condition or business.

We have raised substantial amounts of capital in private placements from time to
time. The securities offered in such private placements were not registered with
the SEC or any state agency in reliance upon exemptions  from such  registration
requirements.  Such  exemptions  are  highly  technical  in  nature  and  if  we
inadvertently  failed to comply with the  requirements  of any of such exemptive
provisions,  investors  would have the right to rescind  their  purchase  of our
securities or sue for damages.  If one or more  investors  were to  successfully
seek such rescission or institute such suit,  Medix could face severe  financial
demands that could material and adversely affect our financial position.

As of October 10, 2002, we had 68,935,315 shares of common stock outstanding. As
of that date, approximately 29,777,312 shares were issuable upon the exercise of
outstanding  options,  warrants or other rights, and the conversion of preferred
stock.  Most of these  shares  will be  immediately  saleable  upon  exercise or
conversion  under  registration  statements  we have  filed  with the  SEC.  The
exercise  prices of options,  warrants or other  rights to acquire  common stock
presently  outstanding range from $0.19 per share to $4.97 per share. During the
respective terms of the outstanding options, warrants, preferred stock and other
outstanding  derivative  securities,  the holders are given the  opportunity  to
profit from a rise in the market price of the common stock,  and the exercise of
any options, warrants or other rights may dilute the book value per share of the
common stock and put  downward  pressure on the price of the common  stock.  The
existence of the options,  conversion  rights,  or any outstanding  warrants may
adversely affect the terms on which we may obtain  additional  equity financing.
Moreover,  the holders of such securities are likely to exercise their rights to
acquire common stock at a time when we would otherwise be able to obtain capital
on terms  more  favorable  than  could  be  obtained  through  the  exercise  or
conversion of such securities.

Financings  that  may  be  available  to us  under  current  market  conditions,
frequently   involve  below  market  current  sales,  as  well  as  warrants  or
convertible debt that require exercise or conversion  prices that are calculated
in the future at a discount to the then market  price of our common  stock.  Any
agreement to sell, or convert debt or equity  securities into, common stock at a
future date and at a price based on the then  current  market price will provide
an incentive to the investor or third  parties to sell the common stock short to
decrease  the price and  increase  the  number of shares  they may  receive in a
future purchase,  whether directly from us or in the market. The issuance of the
common  stock in  connection  with such  exercise  or  conversion  may result in
substantial dilution to the common stock holdings of other holders of our common
stock.

As with any  business,  growth in  absolute  amounts  of  selling,  general  and
administrative  expenses or the occurrence of  extraordinary  events could cause
actual results to vary materially and adversely from the results contemplated by
the  forward-looking  statements.  Budgeting and other management  decisions are
subjective  in many  respects and thus  susceptible  to incorrect  decisions and
periodic  revisions based on actual  experience and business  developments,  the
impact of which may cause us to alter our  marketing,  capital  expenditures  or
other budgets, which may, in turn, affect our results of operation.  Assumptions
relating to the foregoing involve judgments with respect to, among other things,
future  economic,   competitive  and  market  conditions,  and  future  business
decisions,  all of which are difficult or impossible to predict  accurately  and
many of which are beyond  our  control.  Although  we  believe  the  assumptions
underlying the forward-looking statements are reasonable, any of the assumptions
could  prove  inaccurate,  and  therefore,  there can be no  assurance  that the
results contemplated in the forward-looking statements will be realized.

In  light  of the  significant  uncertainties  inherent  in the  forward-looking
information  included herein,  the inclusion of such  information  should not be
regarded as a  representation  by us or any other person that our  objectives or
plans for the Company will be achieved.

Results of Operation

Comparison of These Three Months Ended September 30, 2002 and September 30, 2001

Direct costs increased  $98,000 from $5,000 at September 30, 2001 to $103,000 at
September 30, 2002. The increase  reflects  expenses incurred by the company for
licenses  and  service  fees  incurred  in  2002  related  to  establishment  of
infrastructure necessary to provide connectivity services to our customers.

Research and development costs decreased  approximately  $195,000 or 56% for the
three months ended  September 30, 2001, to the three months ended  September 30,
2002.  This  decrease  represents  the  Company's   capitalization  of  software
development  costs for products  where the  preliminary  project  stage has been
completed,  management  has committed to funding the project and  completion and
use of the software  for its intended use is probable.  The Company is currently
capitalizing  costs related to various  projects under its Cymedix Lab,  Cymedix
Pharmacy,  Cymedix  Universal  Interface and Cymedix  Internal  Support  Systems
areas.

Selling,  general, and administrative expenses decreased approximately $172,000,
or 11% from  $1,594,000  for the three  months  ended  September  30,  2001,  to
$1,422,000 for the three months ended September 30, 2002.

Decreases consisted of the following:

                                        3 Months    3 Months
                                          ended       ended     Expense
                                        September   September   Increase/
                                          2001        2002     (Decrease)
                                        .........   .........  ..........
Black Scholes expense related to
 options and warrants granted to
 non-employees for services, and
 WellPoint warrant expense ..........    590,000     66,000    (524,000)

 Goodwill Amortization ..............     43,000       --       (43,000)
                                         -------    -------    ---------
                                                               (567,000)

This was partially offset by the following increases in expenses:

  Salaries, Wages and related taxes
   and benefits ......................   372,000    574,000    202,000

  Rent expense .......................    97,000    137,000     40,000

  Legal fees and settlement costs ....    67,000    177,000    110,000

  Consulting fees ....................    66,000    104,000     38,000

  Insurance expense ..................    63,000     90,000     27,000
                                         -------    -------   --------                                                                             --------
                                                               417,000

Loss from  impairment  decreased 100% from $1,111,000 for the three months ended
September 30, 2001 to $0 for the three months ended  September 30, 2002,  due to
the write off of impaired goodwill relating to Automated Design Concepts,  Inc.,
and ZirMed.com during the third quarter of 2001.

Net loss from operations decreased approximately  $1,380,000 from $3,058,000 for
the three months ended  September 30, 2001,  to $1,678,000  for the three months
ended September 30, 2002, due to all of the reasons discussed above.

Financing  costs  decreased in 2002 due to financing  costs  incurred in 2001 of
$121,000 related to a $2.5 million  convertible  debt credit facility  available
that did not exist in 2002  offset by $43,000 in  financing  costs  related to a
convertible note issued during July 2002..

Total net loss decreased approximately  $1,451,000 from $3,183,000 for the three
months  ended  September  30,  2001,  to  $1,732,000  for the three months ended
September 30, 2002, also due to the reasons discussed above.

Comparison of The Nine Months Ended September 30, 2002 and September 30, 2001

Total  revenues  for the nine months  ended  September  30,  2002,  were $10,000
compared with $30,000 for the nine months ended September 30, 2001.

Direct costs  increased  $457,000 from $38,000 at September 30, 2001 to $495,000
at September 30, 2002. The increase  reflects  expenses  incurred by the company
for  licenses  and service fees  incurred in 2002  related to  establishment  of
infrastructure  necessary  to provide  connectivity  services to our  customers.
Selling, general, and administrative expenses decreased approximately $1,221,000
or 26%  from  $4,611,000  for the nine  months  ended  September  30,  2001,  to
$3,390,000 for the nine months ended September 30, 2002.

The decrease is due to cost cutting  measures  implemented by the company during
2001,  which resulted in the following  decreases at September 30, 2002 compared
to September 30, 2001:

                                         9 Months     9 Months
                                           ended        ended       Expense
                                         September    September     Increase/
                                           2001         2002       (Decrease)
                                         ---------    ---------    ----------

    Black Scholes expense related
    to options and warrants               892,000        93,000      (799,000)
    granted to non-employees for
    services, and WellPoint
    warrant expense

    Salaries and wages,                 1,485,000     1,257,000      (228,000)

    Consulting fees,                      419,000       291,000      (128,000)

 Goodwill Amortization                    122,000             -      (122,000)

    Settlements (of lawsuits),            179,000        80,000       (99,000)

    Shareholder relations,                189,000       141,000       (48,000)

    Travel and entertainment,             126,000        97,000       (29,000)
                                        ---------     ---------    ----------
                                                                   (1,453,000)

This was partially offset by the following increases in expenses:

 Rent expense                             308,000       490,000       182,000

 Insurance expense                        153,000       255,000       102,000
                                        ---------     ---------    ----------
                                                                      284,000

Loss from  impairment  decreased 100% from  $1,111,000 for the nine months ended
September 30, 2001 to $0 for the nine months ended  September  30, 2002,  due to
the write off of impaired goodwill relating to Automated Design Concepts,  Inc.,
and ZirMed.com during the third quarter of 2001.

Net loss from operations decreased approximately  $2,269,000 from $6,677,000 for
the nine months ended  September  30, 2001,  to  $4,408,000  for the nine months
ended September 30, 2002, due to all of the reasons discussed above.

Financing  costs  decreased in 2002 due to financing  costs  incurred in 2001 of
$346,000 related to a $2.5 million  convertible  debt credit facility  available
that did not exist in 2002,  offset by  financing  costs of $70,000  incurred in
February 2002 related to a $1,000,000  convertible  debt  facility,  $133,000 in
financing  costs  related to  warrants  issued to an officer of the  company for
loans he had made to the company  during 2001,  and $43,000 in  financing  costs
related to a convertible note issued during July 2002.

Net loss decreased approximately  $2,358,000 from $7,076,000 for the nine months
ended  September 30, 2001, to $4,718,000 for the nine months ended September 30,
2002, due to the reasons discussed above.

Liquidity and Capital Resources

We have  $267,000 in cash as of  September  30,  2002 with net  working  capital
deficit of  $(1,949,000)  at September  30,  2002.  During the nine months ended
September 30, 2002, net cash used in operating activities was $3,545,000. During
the nine months ended September 30, 2002, we raised $4,639,000 from the exercise
of options  and  warrants,  and the  issuance  of common  stock and  issuance of
convertible  debt.  The  additional  cash  generated  allowed  us  to  pay  down
outstanding  accounts  payable  outstanding  at December 31, 2001.  We have been
delinquent,  from  time to time,  in the  payment  of our  current  obligations,
including payments of withholding and other tax obligations.  From time to time,
members of senior  management have made  short-term  loans to us to meet payroll
obligations. However, there is no commitment to continue that practice. As noted
above, we are presently in negotiations  with  institutional  sources  regarding
debt and equity instruments to fund the Company. While there can be no assurance
that  additional  investments  or financings  will be available to us as needed,
management  expects to obtain the  necessary  financing.  Failure to obtain such
capital on a timely basis could result in lost business opportunities,  the sale
of the  Cymedix(R)business  at a distressed  price or the  financial  failure of
Medix.

The Company entered into a secured  convertible  loan agreement,  dated February
19,  2002,  pursuant  to which we  borrowed  $1,000,000  from  WellPoint  Health
Networks Inc. See footnote 3 to the Financial  Statements.  Medix  converted the
note into 2,405,216 common shares on October 9, 2002.

During April 2002,  the Company  initiated a private  placement of its $.001 par
value common stock. A total of 3,452,500 units were placed through May 14, 2002,
each  consisting  of one share of  common  stock  and one  warrant.  Subscribers
purchased  each unit for $0.40 and are  entitled to exercise  warrant  rights to
purchase  one share of the common  stock of the  company at a purchase  price of
$.0.50 per share for a five year period on or after  September 1, 2002 and prior
to  September  1, 2007.  The Company  received a total of  $1,381,000  from this
private  placement.  The Company has committed to register the above  underlying
shares in a registration  statement with the Securities and Exchange  Commission
and has filed the registration  statement with the Commission,  [although it has
not yet been declared effective].

During July 2002, the Company  initiated a second private placement of its $.001
par value common stock. A total of 3,600,000 units were placed,  each consisting
of one share of common stock and one warrant.  Subscribers  purchased  each unit
for $0.40 and are entitled to exercise  warrant  rights to purchase one share of
the common  stock of the  company at a purchase  price of $.0.50 per share for a
five year period on or after  January 1, 2003 and prior to January 1, 2008.  The
Company received a total of $1,440,000 from this private placement.  The Company
has  committed  to  register  the  above  underlying  shares  in a  registration
statement  with  the  Securities  and  Exchange  Commission  and has  filed  the
registration  statement  with  the  Commission,  [although  it has not yet  been
declared effective].


Item 4: Controls and Procedures

The Chief Executive  Officer and the Chief Financial Officer of Medix Resources,
Inc.  have  conducted an evaluation  of the  Company's  disclosure  controls and
procedures  (as defined in Rule  13a-14(c) as  promulgated by the Securities and
Exchange  Commission under the Securities  Exchange Act of 1934, as amended (the
"Exchange  Act"))  within 90 days of the filing date of this  quarterly  report.
Based upon the results of this evaluation,  the Chief Executive  Officer and the
Chief  Financial  Officer  believe  that  the  Company  maintains  controls  and
procedures  that are  effective  in  gathering,  analyzing  and  disclosing  all
information in a timely fashion that is required to be disclosed in its Exchange
Act reports.  There have been no significant  changes in the Company's  controls
subsequent to the evaluation date.



                             MEDIX RESOURCES, INC.

                           PART II - OTHER INFORMATION


Item 1.  Legal Proceedings

August 7, 2001, a former officer of the Company filed an action,  entitled Barry
J. McDonald v. Medix Resources,  Inc.,  f/k/a  International  Nursing  Services,
Inc., and John Yeros,  CN 01CV2119,  in the District  Court of Arapahoe  County,
Colorado,  against the Company and its former  President  and CEO. The plaintiff
alleged (1) breach of an employment agreement,  a stock option agreement and the
related stock option plan,  (2) a duty of good faith and fair  dealing,  and (3)
violation  of the  Colorado  Wage Claim Act. On August 13,  2002,  we reached an
agreement in principal  with the  plaintiff to settle the  litigation  by paying
plaintiff  $25,000 on or before October 1, 2002,  with no admission of liability
on our part. This settlement  agreement has been signed and the $25,000 was paid
during September 2002.

On December 17, 2001, Vision Management  Consulting,  L.L.C., filed suit against
us in the  Superior  Court of New Jersey,  Law  Division - Essex  County,  in an
action entitled Vision Management Consulting,  L.L.C. v. Medix Resources,  Inc.,
Docket No.  ESX-L-11438-01.  The  complaint  filed by Vision  alleged  breach of
contract,  unjust enrichment,  breach of the duty of good faith and fair dealing
and  misrepresentation  on the part of Medix in connection  with our performance
under a  negotiated  settlement  agreement  which we had entered into to resolve
certain  claims  that  existed  between  the  parties  and that arose out of the
termination of operations of our Automated  Design Concepts  division earlier in
2001.  On August 12, 2002,  we reached an agreement in principal  with Vision to
settle this litigation by payment from us to Vision of $55,000,  to be paid over
the  next  three  months,  with no  admission  of  liability  on our  part.  The
settlement  agreement has been signed and $32,000 of the  settlement  amount was
paid during September 2002.

From time to time, the Company is involved in claims and  litigation  that arise
out of the normal course of business.  Currently, other than as discussed above,
there are no pending matters that in  Management's  judgment might be considered
potentially  material  to  us.  Management  does  not  believe  that  any of the
litigation described above will have a material adverse effect on the Company.


Item 2.  Changes in Securities and Use of Proceeds

Set forth below are the unregistered  sales of securities by the Company for the
quarter  reported  on.  See  Note  3 to  the  unaudited  consolidated  financial
statements  elsewhere  herein  for a  description  of the  terms of the Units of
Common Stock and warrants.

 Security               Number of                                   Exemption
  Issued       Date      Shares    Consideration   Purchasers        Claimed
---------    ---------  ---------  -------------   ------------   -------------

Common       July 2002   387,500     $155,000     A total of 2    Section 4(2);
Stock and                                         private         Rule 506 of
Warrants                                          investors       Regulation D

Common       August      750,000     $310,000     A total of 10   Section 4(2);
Stock and     2002                                private         Rule 506 of
Warrants                                          investors       Regulation D

Common       September  1,781,475     $710,000    A total of 17   Section 4(2);
Stock and     2002                                private         Rule 506 of
Warrants                                          investors       Regulation D


Item 3.  Defaults Upon Senior Securities

None.


Item 4.  Submission of Matters to a Vote of Security Holders

None.


Item 5.  Other Information

Ms. Patricia A Miniccuci,  formerly  Executive Vice President of Operations,  is
leaving her employment  with Medix and is currently  negotiating  the terms of a
separation agreement.


Item 6.  Exhibits and Reports on Form 8-K

     a.   Exhibits

          Included as exhibits  are the items listed on the Exhibit  Index.  The
          Registrant  will  furnish a copy of any of the  exhibits  listed below
          upon payment of $5.00 per exhibit to cover the costs to the Registrant
          of furnishing such exhibit.

          99.1 Certification by Darryl R. Cohen, President and CEO under Section
          302 of the Sarbanes-Oxley Act of 2002

          99.2 Certification by Mark W. Lerner, Executive Vice President and CFO
          under Section 302 of the Sarbanes-Oxley Act of 2002

          99.3 Copy of Letter of Intent  between the  Company and Pocket  Script
          LLC dated 10/25/025

     b.   Reports on Form 8-K during the quarter reported on:

     1) Form 8-K, filed with the Commission on August 5, 2002, reporting in Item
     5 a  press  release  announcing  the  initial  field  test  findings  for a
     laboratory connectivity project with Loyola University Medical Center.

     2) Form 8-K,  filed with the  Commission  on August 13, 2002,  reporting in
     Item 5 a press release  announcing the termination of the company's  equity
     line of credit agreement.

     3) Form 8-K, filed with the Commission on September 16, 2002,  reporting in
     Item 5 a press release  giving a progress  report on the  deployment of the
     company's product in the State of Georgia.

     4) Form 8-K, filed with the Commission on September 27, 2002,  reporting in
     Item 5 a press release announcing that the Board of Directors had appointed
     and new President and Chief Executive Officer of the company.

     5) Form 8-K, filed with the Commission on September 30, 2002,  reporting in
     Item 5 a press release  announcing that the Board of Directors had selected
     a new Chairman of the Board.


                             MEDIX RESOURCES, INC.

                                   SIGNATURES

In accordance with the requirements of the Securities  Exchange Act of 1934, the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.



Dated:  November 13, 2002


                            MEDIX RESOURCES, INC.
                            (Registrant)




                            By:/s/ Mark W. Lerner
                               ------------------
                            Mark W. Lerner

                            Executive Vice President and Chief Financial Officer
                            (Principal Financial and Accounting Officer)





Certifications

President and CEO

I,  Darryl  R.  Cohen,  the  President  and  Chief  Executive  Officer  of Medix
Resources, Inc. (the "Registrant"), certify that:

1. I have reviewed this quarterly report on Form 10-Q of the Registrant;

2. Based on my  knowledge,  this  quarterly  report  does not contain any untrue
statement of a material fact or omit to state a material fact  necessary to make
the statements made, in light of the  circumstances  under which such statements
were made, not  misleading  with respect to the period covered by this quarterly
report;

3.  Based  on my  knowledge,  the  financial  statements,  and  other  financial
information  included in this quarterly  report,  fairly present in all material
respects the financial  condition,  results of operations  and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;

4.  The  Registrant's  other  certifying  officers  and  I are  responsible  for
establishing and maintaining  disclosure  controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the Registrant and we have:

     a) designed such disclosure controls and procedures to ensure that material
     information   relating  to  the  Registrant,   including  its  consolidated
     subsidiaries,  is  made  known  to  us by  others  within  those  entities,
     particularly  during  the period in which  this  quarterly  report is being
     prepared;

     b) evaluated the effectiveness of the Registrant's  disclosure controls and
     procedures  as of a date  within 90 days prior to the  filing  date of this
     quarterly report (the "Evaluation Date"); and

     c)  presented  in  this  quarterly   report  our   conclusions   about  the
     effectiveness  of the  disclosure  controls  and  procedures  based  on our
     evaluation as of the Evaluation Date;

5. The Registrant's other certifying officers and I have disclosed, based on our
most recent evaluation,  to the Registrant's auditors and the audit committee of
Registrant's board of directors (or persons performing the equivalent function):

     a) all  significant  deficiencies  in the design or  operation  of internal
     controls which could adversely affect the  registrant's  ability to record,
     process,  summarize and report  financial data and have  identified for the
     Registrant's auditors any material weaknesses in internal controls; and

     b) any fraud,  whether or not material,  that involves  management or other
     employees  who  have  a  significant  role  in  the  Registrant's  internal
     controls; and

6. The  Registrant's  other  certifying  officers  and I have  indicated in this
quarterly  report  whether or not there  were  significant  changes in  internal
controls or in other factors that could  significantly  affect internal controls
subsequent to the date of our most recent  evaluation,  including any corrective
actions with regard to significant deficiencies and material weaknesses.

Dated: November 7, 2002


                                    /s/ Darryl R. Cohen
                                    -------------------
                                    Name: Darryl R. Cohen
                                    Title: President and Chief Executive Officer

Executive Vice President and CFO

I, Mark W. Lerner,  the Executive Vice President and Chief Financial  Officer of
Medix Resources, Inc (the "Registrant"), certify that:

1. I have reviewed this quarterly report on Form 10-Q of the Registrant;

2. Based on my  knowledge,  this  quarterly  report  does not contain any untrue
statement of a material fact or omit to state a material fact  necessary to make
the statements made, in light of the  circumstances  under which such statements
were made, not  misleading  with respect to the period covered by this quarterly
report;

3.  Based  on my  knowledge,  the  financial  statements,  and  other  financial
information  included in this quarterly  report,  fairly present in all material
respects the financial  condition,  results of operations  and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;

4.  The  Registrant's  other  certifying  officers  and  I are  responsible  for
establishing and maintaining  disclosure  controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the Registrant and we have:

     a) designed such disclosure controls and procedures to ensure that material
     information   relating  to  the  Registrant,   including  its  consolidated
     subsidiaries,  is  made  known  to  us by  others  within  those  entities,
     particularly  during  the period in which  this  quarterly  report is being
     prepared;

     b) evaluated the effectiveness of the Registrant's  disclosure controls and
     procedures  as of a date  within 90 days prior to the  filing  date of this
     quarterly report (the "Evaluation Date"); and

     c)  presented  in  this  quarterly   report  our   conclusions   about  the
     effectiveness  of the  disclosure  controls  and  procedures  based  on our
     evaluation as of the Evaluation Date;

5. The Registrant's other certifying officers and I have disclosed, based on our
most recent evaluation,  to the Registrant's auditors and the audit committee of
Registrant's board of directors (or persons performing the equivalent function):

     a) all  significant  deficiencies  in the design or  operation  of internal
     controls which could adversely affect the  registrant's  ability to record,
     process,  summarize and report  financial data and have  identified for the
     Registrant's auditors any material weaknesses in internal controls; and

     b) any fraud,  whether or not material,  that involves  management or other
     employees  who  have  a  significant  role  in  the  Registrant's  internal
     controls; and

6. The  Registrant's  other  certifying  officers  and I have  indicated in this
quarterly  report  whether or not there  were  significant  changes in  internal
controls or in other factors that could  significantly  affect internal controls
subsequent to the date of our most recent  evaluation,  including any corrective
actions with regard to significant deficiencies and material weaknesses.

Dated: November 7, 2002


                                       /s/ Mark W. Lerner
                                       ------------------
                                       Name: Mark W. Lerner
                                       Title: Executive Vice President and Chief
                                       Financial Officer