SEC FORM 4

SEC Form 4

FORM 4

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

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934
or Section 30(h) of the Investment Company Act of 1940

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Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

1. Name and Address of Reporting Person^*

TANEJA JUGAL K

(Last)

(First)

(Middle)

6950 BRYAN DAIRY ROAD

(Street)

LARGO

33777

(City)

(State)

(Zip)

2. Issuer Name and Ticker or Trading Symbol
VERTICAL HEALTH SOLUTIONS INC [ VHSL ]

5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)

X	Director	X	10% Owner
	Officer (give title below)		Other (specify below)

3. Date of Earliest Transaction (Month/Day/Year)
10/01/2003

4. If Amendment, Date of Original Filed (Month/Day/Year)

6. Individual or Joint/Group Filing (Check Applicable Line)

X	Form filed by One Reporting Person
	Form filed by More than One Reporting Person

Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1. Title of Security (Instr. 3)	2. Transaction Date (Month/Day/Year)	2A. Deemed Execution Date, if any (Month/Day/Year)	3. Transaction Code (Instr. 8)		4. Securities Acquired (A) or Disposed Of (D) (Instr. 3, 4 and 5)			5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4)	6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	7. Nature of Indirect Beneficial Ownership (Instr. 4)
1. Title of Security (Instr. 3)	2. Transaction Date (Month/Day/Year)	2A. Deemed Execution Date, if any (Month/Day/Year)	Code	V	Amount	(A) or (D)	Price		6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	7. Nature of Indirect Beneficial Ownership (Instr. 4)
COMMON STOCK	10/01/2003	10/01/2003	C⁽⁵⁾		123,333	A	$123,333	271,331	D
COMMON STOCK	10/01/2003	10/01/2003	J⁽⁴⁾		28,936	A	$28,936	147,998	D
PREFERRED STOCK	10/01/2003	10/01/2003	C⁽³⁾		123,333	D	$123,333	0	D
PREFERRED STOCK	10/01/2003	10/01/2003	S⁽²⁾		35,000	D	$35,000	123,333	D
PREFERRED STOCK	10/01/2003	10/01/2003	S⁽¹⁾		50,000	D	$50,000	158,333	D
COMMON STOCK								57,144	I	BY: MANJU TANEJA⁽⁶⁾
COMMON STOCK								57,144	I	BY: CARNEGIE CAPITAL LTD.⁽⁷⁾
COMMON STOCK								57,144	I	BY: 21ST CENTURY HEALTHCARE FUND LP.⁽⁸⁾

Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security (Instr. 3)	2. Conversion or Exercise Price of Derivative Security	3. Transaction Date (Month/Day/Year)	3A. Deemed Execution Date, if any (Month/Day/Year)	4. Transaction Code (Instr. 8)		5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5)		6. Date Exercisable and Expiration Date (Month/Day/Year)		7. Title and Amount of Securities Underlying Derivative Security (Instr. 3 and 4)		8. Price of Derivative Security (Instr. 5)	9. Number of derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4)	10. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	11. Nature of Indirect Beneficial Ownership (Instr. 4)
1. Title of Derivative Security (Instr. 3)	2. Conversion or Exercise Price of Derivative Security	3. Transaction Date (Month/Day/Year)	3A. Deemed Execution Date, if any (Month/Day/Year)	Code	V	(A)	(D)	Date Exercisable	Expiration Date	Title	Amount or Number of Shares	8. Price of Derivative Security (Instr. 5)		10. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	11. Nature of Indirect Beneficial Ownership (Instr. 4)
WARRANTS	$3.28							05/28/2001	05/28/2005	COMMON STOCK	85,714		85,714	D

Explanation of Responses:

1. SOLD SERIES A PREFERRED SHARES IN PRIVATE SALE TO DIRECTOR OF VERTICAL HEALTH SOLUTIONS, INC.

2. SOLD SERIES A PREFERRED SHARES IN PRIVATE SALE TO DIRECTOR OF VERTICAL HEALTH SOLUTIONS, INC.

3. SHARES OF SERIES A PREFERRED STOCK CONVERTED INTO SHARES OF COMMON STOCK.

4. SHARES OF COMMON STOCK RECEIVED IN PAYMENT OF ACCRUED PREFERRED STOCK DIVIDENDS.

5. SHARES OF SERIES A PREFERRED STOCK CONVERTED INTO SHARES OF COMMON STOCK.

6. MANJU TANEJA IS THE REPORTING PERSON'S SPOUSE. THE REPORTING PERSON EXERCISES NO INVESTMENT OR VOTING POWER AND DISCLAIMS BENEFICIAL OWNERSHIP OF THESE SHARES.

7. THE REPORTING PERSON IS THE GENERAL PARTNER OF CARNEGIE CAPITAL, LTD. AS SUCH, HE HOLDS SOLE VOTING AND INVESTMENT POWER WITH RESPECT TO THESE SHARES.

8. THE REPORTING PERSON IS A LIMITED PARTNER OF 21ST CENTURY HEALTHCARE FUND LP. WHOSE FAMILY HAS VOTING AND INVESTMENT POWER WITH RESPECT TO THESE SHARES.

	/s/ Stephen M. Watters, as attorney in fact for Jugal K. Taneja	11/13/2003
	** Signature of Reporting Person	Date
Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
* If the form is filed by more than one reporting person, see Instruction 4 (b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
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