SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


                                    FORM 8-K


                                 CURRENT REPORT


          Pursuant to Section 13 or 15(d) of the Securities Act of 1934

         Date of Report (Date of earliest event reported): April 8, 2003


                                FONAR CORPORATION
-------------------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)


    Delaware                        0-10248                      11-2464137
---------------                 ----------------            --------------------
(State or other                 (Commission File               I.R.S. Employer
jurisdiction of                      Number)                 Identification No.)
 incorporation)

                                110 Marcus Drive
                            Melville, New York 11747
                                 (631) 694-2929
               --------------------------------------------------
               (Address, including zip code, and telephone number
                   of registrant's principal executive office)


Item 2. Acquisition or Disposition of Assets

Disposition of Business

     On  April  8,  2003,  Fonar   Corporation's   (the  "Company"  or  "Fonar")
wholly-owned subsidiary,  Health Management Corporation of America ("HMCA") sold
all of the issued and outstanding stock of A&A Services,  Inc. ("A&A Services"),
a physician practice management services organization engaged in the business of
managing four primary care  practices  located in Queens  County,  New York (the
"Practices").  The sale was made to Drs. Glenn Muraca and Giovanni Marciano, the
former owners, for a purchase price of $3,000,000,  payable as follows: $500,000
at  closing,  $2,350,000  due 75 days  after  closing  and  $150,000  six months
following  closing,  together with a release of  indebtedness in the approximate
amount  of $1.1  million.  The  purchase  price was the  result of  negotiations
settling  outstanding  litigation  and was not based on earnings,  book value or
other similar criteria.

     The  repurchase  by the  Buyers of the stock  was the  principal  part of a
settlement of three lawsuits which had been instituted by the parties. The first
was  instituted  by HMCA and Fonar  against  the Buyers  for  fraud,  failure of
consideration   and  breach  of  the  contract  with  respect  to  the  original
acquisition  by  HMCA  of  A&A  Services,  and  the  second  was  instituted  by
professional corporations managed by HMCA against the Buyers for breach of their
employment  agreements.  The third case was commenced by M&M Properties,  LLC, a
limited  liability  company in which the Buyers  have an  interest,  against A&A
Services  for  nonpayment  of rent.  The case was settled  before the  defending
parties answered the complaints. As part of the settlement, the parties released
each other of all claims,  including  approximately  $1,090,562 remaining due to
the Buyers  with  respect to the  purchase  of A&A  Services  and  approximately
$21,167 owed to M&M  Properties,  LLC by A&A  Services for past due rents.  HMCA
took  over  cash of  approximately  $20,000  and  receivables  (net of  doubtful
accounts) of  approximately  $280,000 as of the closing and accounts  payable of
approximately $134,000.

     There is no family,  business or other material relationship between either
of the Buyers and any of Fonar,  HMCA,  or any of their  respective  affiliates,
directors, officers or any associate of any such director or officer.

     A&A Services provided the Practices with management services, office space,
equipment,  repair and  maintenance  service for the  equipment and clerical and
other   non-medical   personnel.   The  Practices  are  primary  care  practices
specializing in family medicine located in Woodhaven,  Richmond Hill, Corona and
Ridgewood in Queens County, New York.

     During the first six months of fiscal  2003,  A&A  Services  suffered a net
loss of $224,703 and an operating loss of $77,978, and for fiscal 2002, suffered
a net loss of $5,363,044 and an operating  loss of $120,889.  For the year ended
June 30, 2002, A&A Services' net loss included a $4.7 million loss in impairment
of A&A Services'  management  contracts  with the Practices  which resulted from
declining  revenues from the  Practices.  As at April 7, 2003,  the net carrying
value of A&A Services' management contracts was approximately $3.3 million.

     Effective  March 20, 1998,  HMCA had purchased A&A Services from the Buyers
for  ten  million  dollars  ($10,000,000)  payable  in a  combination  of  cash,
promissory notes and HMCA stock. In reselling the Practices to the Buyers,  HMCA
has  sold  a  nonprofitable  business  and  elected  not to be  involved  in the
management  of primary care  practices,  but to focus on the  management  of MRI
scanning centers and physical therapy and rehabilitation facilities.



Item 7. Financial Statements and Exhibits

Financial Statements

     The financial  statement  required by this item will be filed no later than
June 23, 2003.

Exhibits

     2.   Stock Repurchase and Settlement Agreement dated April 8, 2003


                                   SIGNATURES

     Pursuant to the  requirements  of the  Securities and Exchange Act of 1934,
the  registrant  has duly  caused  this report to be signed on its behalf by the
undersigned hereunto duly authorized.


                                                    FONAR CORPORATION
                                                    (Registrant)

                                                    By: /s/ Raymond V. Damadian
                                                        Raymond V. Damadian
                                                        President and Chairman

Dated: April 23, 2003