SECURITIES AND EXCHANGE COMMISSION
                         WASHINGTON  D.C.  20549
                                    

                               FORM S-8
                         REGISTRATION STATEMENT
                                UNDER
                       THE SECURITIES ACT OF 1933


                        SMT HEALTH SERVICES INC.
       Delaware                                    25-1672183
       (State or jurisdiction of                (I.R.S. Employer
       Incorporation or organization)          Identification No.)
                          

                          10521 Perry Highway
                        Wexford, Pennsylvania  15090
                  (Address of principal executive offices)
 
                 

                        SMT HEALTH SERVICES INC.
                     1996 EMPLOYEE STOCK OPTION PLAN
                        (Full title of the plan)


                 David A. Zynn, Chief Financial Officer
                        SMT Health Services Inc.
                          10521 Perry Highway
                       Wexford, Pennsylvania  15090
                   (Name and address of agent for service)
                             412-933-3300
                 (Telephone number of agent for service)



                       Copies of communications to:
                          Ronald Basso, Esquire
               Buchanan Ingersoll Professional Corporation
                            One Oxford Centre
                       301 Grant Street, 20th Floor
                        Pittsburgh, PA  15219-1410
                             412-562-3943




                     CALCULATION OF REGISTRATION FEE


Title of Securities   Amount To Be   Proposed     Proposed       Amount of
To Be Registered(1)   Registered     Maximum      Maximum        Registration
                                     Offering     Aggregate      Fee
                                     Price Per    Offering
                                     Share        Price 


Common Stock (par
value $.01 
per share)            267,500        $6.425 (1)   $1,718,750 (1)  $521 (1)


(1)  Estimated solely for purposes of calculating the registration fee 
     pursuant to Rule 457(h).  In accordance with Rule 457(h) such price is 
     the price at which the options with respect to such shares may be 
     exercised.



PART II

        INFORMATION REQUIRED IN THE REGISTRATION STATEMENT
 
     This Registration Statement relates to the SMT Health Services Inc. 1996
Employee Stock Option Plan (the "Plan").  SMT Health Services Inc. (the 
"Corporation" or the "Registrant") is incorporated in the State of Delaware.

Item 3. Incorporation of Documents by Reference

     The Corporation hereby incorporates by reference into this Registration 
Statement the documents listed in (a) through (c) below.  The Corporation also
incorporates by reference, from the date of filing of such documents, all 
documents subsequently filed by it pursuant to Sections 13(a), 13(c), 14 and
15(d) of the Securities Exchange Act of 1934 (the "Securities Exchange Act"),
prior to the filing of a post-effective amendment which indicates that all 
securities offered have been sold or which re-registers all securities then 
remaining unsold from the date of filing of such documents:

     (a) The latest annual report of the Corporation filed pursuant to Section
13(a) or 15(d) under the Securities Exchange Act;

     (b) All other reports filed pursuant to Section 13(a) or 15(d) of the 
Securities Exchange Act since the end of the fiscal year covered by the annual
report referred to in (a) above; and

     (c) The description of the Common Stock of the Corporation contained in 
the Corporation's registration statement filed under Section 12 of the 
Securities Exchange Act, including any amendment or report filed for the 
purpose of updating such description.

Item 4.   Description of Securities

          Not applicable.

Item 5.   Interests of Named Experts and Counsel

          Not applicable.

Item 6.   Indemnification of Directors and Officers

     The Corporation's Certificate of Incorporation provides, in part, that 
the Corporation shall indemnify its directors, officers, employees and agents
to the fullest extent permitted by the Delaware General Corporation Law 
("DGCL").

     The DGCL permits Delaware corporations to indemnify their directors and 
officers against all reasonable expenses incurred in the defense of any 
lawsuit to which they are made parties by reason of being directors or 
officers, in cases of successful defense, and against such expenses in other 
cases, subject to specified conditions and exclusions.  Such indemnification 
is not exclusive of any other rights to which those indemnified may be 
entitled under any by-law, agreement, vote of stockholders or otherwise.
   
     Pursuant to the DGCL, the Corporation's Certificate of Incorporation 
contains a provision eliminating the personal liability of a director to a 
corporation or its stockholders for monetary damages for breach of, or failure
to perform, any duty resulting solely from his status as a director, except 
with respect to (a) willful failure to deal fairly with the corporation or its
stockholders where a director has a material conflict of interest, (b) a 
violation of criminal law unless the director had reasonable cause to believe
his conduct was lawful, (c) a transaction yielding an improper personal 
profit, and (d) willful misconduct.  The foregoing limitation of a director's
personal liability also is inapplicable to situations wherein a director has 
voted for or assented to the declaration of, a dividend, repurchase of shares,
distribution, or the making of a loan to an officer or director, in each case
where the same occurs in violation of applicable law.

     The Corporation has purchased and maintains directors and officers' 
liability insurance for directors and officers of the Corporation.

Item 7.   Exemption from Registration Claimed

          Not Applicable.

Item 8.   Exhibits

     The following is a list of exhibits filed as part of this Registration 
Statement, which are incorporated herein:

          Exhibit No.                               Reference

4.01      Certificate of Incorporation of the. . . .Exhibit 3.1 of the 
          Corporation, as amended                   Corporation's Registration
                                                    Statement on Form S-1 
                                                    (Registration No. 33-
                                                    44329) is incorporated 
                                                    herein by reference.

4.02      By-laws of the Corporation . . . . . . . .Exhibit 3.2 of the 
                                                    Corporation's Registration
                                                    Statement on Form S-1 
                                                    (Registration No. 33-
                                                    44329) is incorporated 
                                                    herein by reference.

5.01      Opinion of Buchanan Ingersoll. . . . . . .Filed herewith.
          Professional Corporation as to
          the legality of the securities being
          registered

23.01     Independent Auditors Consent. . . . . . . Filed herewith.

23.02     Consent of Buchanan Ingersoll. . . . . . .Contained in opinion filed
          Professional Corporation                  as Exhibit 5.01.
      
24.01     Power of Attorney (included on . . . . . .Filed herewith.
          page 6)




Item 9.   Undertakings

     (a)  The undersigned registrant hereby undertakes:

        (1) To file during any period in which offers or sales are being made,
            a post-effective amendment to this Registration Statement to 
            include any material information with respect to the plan of 
            distribution not previously disclosed in this Registration
            Statement or any material change to such information in the 
            Registration Statement.

        (2) That, for the purpose of determining any liability under the 
            Securities Act, each such post-effective amendment shall be deemed
            to be a new registration statement relating to the securities 
            offered therein, and the offering of such securities at that time
            shall be deemed to be the initial bona fide offering thereof.

        (3) To remove from registration by means of a post-effective amendment
            any of the securities being registered which remain unsold at the
            termination of the offering.

     (b)  The undersigned registrant hereby undertakes that, for purposes of 
determining any liability under the Securities Act, each filing of the 
registrant's annual report pursuant to section 13(a) or Section 15(d) of the 
Securities Exchange Act (and, where applicable, each filing of an employee
benefit plan's annual report pursuant to Section 15(d) of the Securities 
Exchange Act) that is incorporated by reference in this Registration Statement
shall be deemed to be a new registration statement relating to the securities
offered therein, and the offering of such securities at that time shall be 
deemed to be the initial bona fide offering thereof.

     (c)  Insofar as indemnification for liabilities arising under the 
Securities Act may be permitted to directors, officers and controlling persons
of the registrant pursuant to the provisions described in Item 6 of this 
Registration Statement, or otherwise, the registrant has been advised that in
the opinion of the Securities and Exchange Commission such indemnification is
against public policy as expressed in the Securities Act and is, therefore, 
unenforceable. In the event that a claim for indemnification against such 
liabilities (other than the payment by the registrant of expenses incurred
or paid by a director, officer or controlling person of the registrant in the
successful defense of any action, suit or proceeding) is asserted by such 
director, officer or controlling person in connection with the securities 
being registered, the registrant will, unless in the opinion of its counsel 
the matter has been settled by controlling precedent, submit to a court of 
appropriate jurisdiction the question whether such indemnification by it is 
against public policy as expressed in the Securities Act and will be governed
by the final adjudication of such issue.




                                   SIGNATURES

     The Registrant.  Pursuant to the requirements of the Securities Act of 
1933, the registrant certifies that it has reasonable grounds to believe that
it meets all of the requirements for filing on Form S-8 and has duly caused 
this Registration Statement to be signed on its behalf by the undersigned, 
thereunto duly authorized, in Borough of Wexford, Commonwealth of 
Pennsylvania, on the 23rd day of April, 1997.


                                   SMT HEALTH SERVICES INC.
                                   (Registrant)


                                   By: ____/s/ Jeff D. Bergman___________
                                         Jeff D. Bergman, Chairman, Chief
                                         Executive Officer and President



                                   POWER OF ATTORNEY
          
     KNOW ALL MEN BY THESE PRESENTS, that each person whose signature appears
below under the heading "Signatures" constitutes and appoints Jeff D. Bergman,
Daniel Dickman and David A. Zynn, or any of them, his true and lawful 
attorney-in-fact and agent with full power of substitution and re-substitution
for him and in his name, please and stead, in any and all capacities, to sign
any and all amendments to this Registration Statement, and to file the same 
with all exhibits thereto, and other documents in connection therewith, with 
the Securities and Exchange Commission, granting unto said attorney-in-fact 
and agent full power and authority to do and perform each and every act and 
thing requisite and necessary to be done in and about the premises, as fully 
for all intents and purposes as he might or could do in person, hereby 
ratifying and confirming all that said attorney-in-fact and agent or his 
substitute or substitutes, may lawfully do or cause to be done by virtue 
hereof.

     Pursuant to the requirements of the Securities Act, this Registration 
Statement has been signed by the following persons in the capacities and on 
the dates indicated.

     Signatures                   Title                      Date

__/s/ Jeff D. Bergman____   Chairman, Chief Executive     April 23, 1997
   Jeff D. Bergman           Officer and President


__/s/ David A. Zynn______   Chief Financial Officer       April 23, 1997
   David A. Zynn           and Chief Accounting Officer

__/s/ Daniel Dickman_____   Executive Vice President      April 23, 1997
   Daniel Dickman            and Director

__/s/ Alan Novich________   Director                      April 23, 1997
   Alan Novich              

__/s/ Gerlad Cohn________   Director                      April 23, 1997
   Gerald Cohn

__/s/ David J. Malone____   Director                      April 23, 1997
   David J. Malone




                              EXHIBIT INDEX


 Exhibit No.                              Sequential Page Number or Reference

 4.01   Certificate of Incorporated . . . Exhibit 3.1 of the Corporation's 
        of the Corporation as             Registration Statement on Form S-1 
        amended                           (Registration No. 33-44329) is 
                                          incorporated herein by reference.

 4.02   By-laws of the Corporation. . . . Exhibit 3.2 of the Corporation's 
                                          Registration Statement on Form S-1 
                                          (Registration No. 33-44329) is 
                                          incorporated herein by reference.

 5.01   Opinion of Buchanan Ingersoll . . Filed herewith.
        Professional Corporation as 
        to the legality of the 
        securities being registered

 23.01  Independent Auditors Consent. . . Filed herewith.

 23.02  Consent of Buchanan Ingerosoll. . Contained in opinion filed as 
        Professional Corporation          Exhibit 5.01.
       

 24.01  Power of Attorney. . . . . . . .  Filed herewith.



                                                             

                                                             EXHIBIT 5.01
                                                             
                             April 23, 1997
                

Board of Directors
SMT Health Services Inc.
10521 Perry Highway
Wexford, PA  15090


Gentlemen:

     We have acted as counsel to SMT Health Services Inc., a Delaware 
corporation (the "Corporation"), in connection with the proposed issuance by 
the Corporation of up to 250,000 shares of the Corporation's common stock, 
par value $.01 per share (the "Common Stock"), pursuant to the terms of the 
SMT Health Services Inc. 1996 Employee Stock Option Plan (the "Plan").

     In connection with such proposed issuance, we have examined the Plan, the
Certificate of Incorporation of the Corporation, as amended and restated, by 
the By-laws of the Corporation, as amended and restated, the relevant 
corporate proceedings of the Corporation, the Registration Statement on Form 
S-8 covering the issuance of the shares, and such other documents, records,
certificates of public officials, statues and decisions as we consider 
necessary to express the opinions contained herein.  In the examination of 
such documents, we have assumed the genuineness of all signatures and the 
authenticity of all documents submitted to us as originals and the conformity
to those original documents of all documents submitted to us as certified or 
photostatic copies.

     Based on the foregoing, we are of the opinion that when the Registration
Statement shall have been declared effective by order of the Securities and 
Exchange Commission and when the Common Stock has been duly issued and 
delivered pursuant to the terms of the Plan, such shares of Common Stock will
be validly issued, fully paid and non-assessable.

     We hereby consent to the filing of this opinion as an exhibit to the 
Registration Statement.

                        Very truly yours,


                        BUCHANAN INGERSOLL
                        PROFESSIONAL CORPORATION

                        By: /s/  Ronald Basso           





                                                           EXHIBIT NO. 23.01



                                
                     Consent of Independent Auditors


We consent to incorporation by reference in the registration statement on Form
S-8 of SMT Health Services Inc. of our report dated January 31, 1997, except
as to Note 18 which is as of March 4, 1997, relating to the consolidated 
balance sheets of SMT Health Services Inc. and subsidiaries as of December 31,
1996 and 1995 and the related consolidated statements of earnings, changes in
stockholders' equity, and cash flows for each of the years in the three year 
period ended December 31, 1996, and the related schedule, which report appears
in the December 31, 1996 annual report on Form 10-K of SMT Health 
Services Inc.




KPMG Peat Marwick LLP
Pittsburgh, Pennsylvania
April 23, 1997
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SECURITIES AND EXCHANGE COMMISSION
                         WASHINGTON  D.C.  20549
                                    

                               FORM S-8
                         REGISTRATION STATEMENT
                                UNDER
                       THE SECURITIES ACT OF 1933

                        SMT HEALTH SERVICES INC.
       Delaware                                    25-1672183
       (State or jurisdiction of                (I.R.S. Employer
       Incorporation or organization)          Identification No.)
                          

                          10521 Perry Highway
                        Wexford, Pennsylvania  15090
                  (Address of principal executive offices)
 
                 

                        SMT HEALTH SERVICES INC.
                     1996 EMPLOYEE STOCK OPTION PLAN
                        (Full title of the plan)

                 David A. Zynn, Chief Financial Officer
                        SMT Health Services Inc.
                          10521 Perry Highway
                       Wexford, Pennsylvania  15090
                   (Name and address of agent for service)
                             412-933-3300
                 (Telephone number of agent for service)

                       Copies of communications to:
                          Ronald Basso, Esquire
               Buchanan Ingersoll Professional Corporation
                            One Oxford Centre
                       301 Grant Street, 20th Floor
                        Pittsburgh, PA  15219-1410
                             412-562-3943

                     CALCULATION OF REGISTRATION FEE

Title of Securities   Amount To Be   Proposed     Proposed       Amount of
To Be Registered(1)   Registered     Maximum      Maximum        Registration
                                     Offering     Aggregate      Fee
                                     Price Per    Offering
                                     Share        Price 

Common Stock (par
value $.01 
per share)            267,500        $6.425 (1)   $1,718,750 (1)  $521 (1)

(1)  Estimated solely for purposes of calculating the registration fee 
     pursuant to Rule 457(h).  In accordance with Rule 457(h) such price is 
     the price at which the options with respect to such shares may be 
     exercised.

PART II

        INFORMATION REQUIRED IN THE REGISTRATION STATEMENT
 
     This Registration Statement relates to the SMT Health Services Inc. 1996
Employee Stock Option Plan (the "Plan").  SMT Health Services Inc. (the 
"Corporation" or the "Registrant") is incorporated in the State of Delaware.

Item 3. Incorporation of Documents by Reference

     The Corporation hereby incorporates by reference into this Registration 
Statement the documents listed in (a) through (c) below.  The Corporation also
incorporates by reference, from the date of filing of such documents, all 
documents subsequently filed by it pursuant to Sections 13(a), 13(c), 14 and
15(d) of the Securities Exchange Act of 1934 (the "Securities Exchange Act"),
prior to the filing of a post-effective amendment which indicates that all 
securities offered have been sold or which re-registers all securities then 
remaining unsold from the date of filing of such documents:

     (a) The latest annual report of the Corporation filed pursuant to Section
13(a) or 15(d) under the Securities Exchange Act;

     (b) All other reports filed pursuant to Section 13(a) or 15(d) of the 
Securities Exchange Act since the end of the fiscal year covered by the annual
report referred to in (a) above; and

     (c) The description of the Common Stock of the Corporation contained in 
the Corporation's registration statement filed under Section 12 of the 
Securities Exchange Act, including any amendment or report filed for the 
purpose of updating such description.

Item 4.   Description of Securities

          Not applicable.

Item 5.   Interests of Named Experts and Counsel

          Not applicable.

Item 6.   Indemnification of Directors and Officers

     The Corporation's Certificate of Incorporation provides, in part, that 
the Corporation shall indemnify its directors, officers, employees and agents
to the fullest extent permitted by the Delaware General Corporation Law 
("DGCL").

     The DGCL permits Delaware corporations to indemnify their directors and 
officers against all reasonable expenses incurred in the defense of any 
lawsuit to which they are made parties by reason of being directors or 
officers, in cases of successful defense, and against such expenses in other 
cases, subject to specified conditions and exclusions.  Such indemnification 
is not exclusive of any other rights to which those indemnified may be 
entitled under any by-law, agreement, vote of stockholders or otherwise.
   
     Pursuant to the DGCL, the Corporation's Certificate of Incorporation 
contains a provision eliminating the personal liability of a director to a 
corporation or its stockholders for monetary damages for breach of, or failure
to perform, any duty resulting solely from his status as a director, except 
with respect to (a) willful failure to deal fairly with the corporation or its
stockholders where a director has a material conflict of interest, (b) a 
violation of criminal law unless the director had reasonable cause to believe
his conduct was lawful, (c) a transaction yielding an improper personal 
profit, and (d) willful misconduct.  The foregoing limitation of a director's
personal liability also is inapplicable to situations wherein a director has 
voted for or assented to the declaration of, a dividend, repurchase of shares,
distribution, or the making of a loan to an officer or director, in each case
where the same occurs in violation of applicable law.

     The Corporation has purchased and maintains directors and officers' 
liability insurance for directors and officers of the Corporation.

Item 7.   Exemption from Registration Claimed

          Not Applicable.

Item 8.   Exhibits

     The following is a list of exhibits filed as part of this Registration 
Statement, which are incorporated herein:

          Exhibit No.                               Reference

4.01      Certificate of Incorporation of the. . . .Exhibit 3.1 of the 
          Corporation, as amended                   Corporation's Registration
                                                    Statement on Form S-1 
                                                    (Registration No. 33-
                                                    44329) is incorporated 
                                                    herein by reference.

4.02      By-laws of the Corporation . . . . . . . .Exhibit 3.2 of the 
                                                    Corporation's Registration
                                                    Statement on Form S-1 
                                                    (Registration No. 33-
                                                    44329) is incorporated 
                                                    herein by reference.

5.01      Opinion of Buchanan Ingersoll. . . . . . .Filed herewith.
          Professional Corporation as to
          the legality of the securities being
          registered

23.01     Independent Auditors Consent. . . . . . . Filed herewith.

23.02     Consent of Buchanan Ingersoll. . . . . . .Contained in opinion filed
          Professional Corporation                  as Exhibit 5.01.
      
24.01     Power of Attorney (included on . . . . . .Filed herewith.
          page 6)

Item 9.   Undertakings

     (a)  The undersigned registrant hereby undertakes:

        (1) To file during any period in which offers or sales are being made,
            a post-effective amendment to this Registration Statement to 
            include any material information with respect to the plan of 
            distribution not previously disclosed in this Registration
            Statement or any material change to such information in the 
            Registration Statement.

        (2) That, for the purpose of determining any liability under the 
            Securities Act, each such post-effective amendment shall be deemed
            to be a new registration statement relating to the securities 
            offered therein, and the offering of such securities at that time
            shall be deemed to be the initial bona fide offering thereof.

        (3) To remove from registration by means of a post-effective amendment
            any of the securities being registered which remain unsold at the
            termination of the offering.

     (b)  The undersigned registrant hereby undertakes that, for purposes of 
determining any liability under the Securities Act, each filing of the 
registrant's annual report pursuant to section 13(a) or Section 15(d) of the 
Securities Exchange Act (and, where applicable, each filing of an employee
benefit plan's annual report pursuant to Section 15(d) of the Securities 
Exchange Act) that is incorporated by reference in this Registration Statement
shall be deemed to be a new registration statement relating to the securities
offered therein, and the offering of such securities at that time shall be 
deemed to be the initial bona fide offering thereof.

     (c)  Insofar as indemnification for liabilities arising under the 
Securities Act may be permitted to directors, officers and controlling persons
of the registrant pursuant to the provisions described in Item 6 of this 
Registration Statement, or otherwise, the registrant has been advised that in
the opinion of the Securities and Exchange Commission such indemnification is
against public policy as expressed in the Securities Act and is, therefore, 
unenforceable. In the event that a claim for indemnification against such 
liabilities (other than the payment by the registrant of expenses incurred
or paid by a director, officer or controlling person of the registrant in the
successful defense of any action, suit or proceeding) is asserted by such 
director, officer or controlling person in connection with the securities 
being registered, the registrant will, unless in the opinion of its counsel 
the matter has been settled by controlling precedent, submit to a court of 
appropriate jurisdiction the question whether such indemnification by it is 
against public policy as expressed in the Securities Act and will be governed
by the final adjudication of such issue.

                                   SIGNATURES

     The Registrant.  Pursuant to the requirements of the Securities Act of 
1933, the registrant certifies that it has reasonable grounds to believe that
it meets all of the requirements for filing on Form S-8 and has duly caused 
this Registration Statement to be signed on its behalf by the undersigned, 
thereunto duly authorized, in Borough of Wexford, Commonwealth of 
Pennsylvania, on the 23rd day of April, 1997.

                                   SMT HEALTH SERVICES INC.
                                   (Registrant)

                                   By: ____/s/ Jeff D. Bergman___________
                                         Jeff D. Bergman, Chairman, Chief
                                         Executive Officer and President

                                   POWER OF ATTORNEY
          
     KNOW ALL MEN BY THESE PRESENTS, that each person whose signature appears
below under the heading "Signatures" constitutes and appoints Jeff D. Bergman,
Daniel Dickman and David A. Zynn, or any of them, his true and lawful 
attorney-in-fact and agent with full power of substitution and re-substitution
for him and in his name, please and stead, in any and all capacities, to sign
any and all amendments to this Registration Statement, and to file the same 
with all exhibits thereto, and other documents in connection therewith, with 
the Securities and Exchange Commission, granting unto said attorney-in-fact 
and agent full power and authority to do and perform each and every act and 
thing requisite and necessary to be done in and about the premises, as fully 
for all intents and purposes as he might or could do in person, hereby 
ratifying and confirming all that said attorney-in-fact and agent or his 
substitute or substitutes, may lawfully do or cause to be done by virtue 
hereof.

     Pursuant to the requirements of the Securities Act, this Registration 
Statement has been signed by the following persons in the capacities and on 
the dates indicated.

     Signatures                   Title                      Date

__/s/ Jeff D. Bergman____   Chairman, Chief Executive     April 23, 1997
   Jeff D. Bergman           Officer and President

__/s/ David A. Zynn______   Chief Financial Officer       April 23, 1997
   David A. Zynn           and Chief Accounting Officer

__/s/ Daniel Dickman_____   Executive Vice President      April 23, 1997
   Daniel Dickman            and Director

__/s/ Alan Novich________   Director                      April 23, 1997
   Alan Novich              

__/s/ Gerlad Cohn________   Director                      April 23, 1997
   Gerald Cohn

__/s/ David J. Malone____   Director                      April 23, 1997
   David J. Malone

                              EXHIBIT INDEX

 Exhibit No.                              Sequential Page Number or Reference

 4.01   Certificate of Incorporated . . . Exhibit 3.1 of the Corporation's 
        of the Corporation as             Registration Statement on Form S-1 
        amended                           (Registration No. 33-44329) is 
                                          incorporated herein by reference.

 4.02   By-laws of the Corporation. . . . Exhibit 3.2 of the Corporation's 
                                          Registration Statement on Form S-1 
                                          (Registration No. 33-44329) is 
                                          incorporated herein by reference.

 5.01   Opinion of Buchanan Ingersoll . . Filed herewith.
        Professional Corporation as 
        to the legality of the 
        securities being registered

 23.01  Independent Auditors Consent. . . Filed herewith.

 23.02  Consent of Buchanan Ingerosoll. . Contained in opinion filed as 
        Professional Corporation          Exhibit 5.01.
       

 24.01  Power of Attorney. . . . . . . .  Filed herewith.

                                                             

                                                             EXHIBIT 5.01
                                                             
                             April 23, 1997
                

Board of Directors
SMT Health Services Inc.
10521 Perry Highway
Wexford, PA  15090

Gentlemen:

     We have acted as counsel to SMT Health Services Inc., a Delaware 
corporation (the "Corporation"), in connection with the proposed issuance by 
the Corporation of up to 250,000 shares of the Corporation's common stock, 
par value $.01 per share (the "Common Stock"), pursuant to the terms of the 
SMT Health Services Inc. 1996 Employee Stock Option Plan (the "Plan").

     In connection with such proposed issuance, we have examined the Plan, the
Certificate of Incorporation of the Corporation, as amended and restated, by 
the By-laws of the Corporation, as amended and restated, the relevant 
corporate proceedings of the Corporation, the Registration Statement on Form 
S-8 covering the issuance of the shares, and such other documents, records,
certificates of public officials, statues and decisions as we consider 
necessary to express the opinions contained herein.  In the examination of 
such documents, we have assumed the genuineness of all signatures and the 
authenticity of all documents submitted to us as originals and the conformity
to those original documents of all documents submitted to us as certified or 
photostatic copies.

     Based on the foregoing, we are of the opinion that when the Registration
Statement shall have been declared effective by order of the Securities and 
Exchange Commission and when the Common Stock has been duly issued and 
delivered pursuant to the terms of the Plan, such shares of Common Stock will
be validly issued, fully paid and non-assessable.

     We hereby consent to the filing of this opinion as an exhibit to the 
Registration Statement.

                        Very truly yours,

                        BUCHANAN INGERSOLL
                        PROFESSIONAL CORPORATION

                        By: /s/  Ronald Basso           

                                                           EXHIBIT NO. 23.01

                                
                     Consent of Independent Auditors

We consent to incorporation by reference in the registration statement on Form
S-8 of SMT Health Services Inc. of our report dated January 31, 1997, except
as to Note 18 which is as of March 4, 1997, relating to the consolidated 
balance sheets of SMT Health Services Inc. and subsidiaries as of December 31,
1996 and 1995 and the related consolidated statements of earnings, changes in
stockholders' equity, and cash flows for each of the years in the three year 
period ended December 31, 1996, and the related schedule, which report appears
in the December 31, 1996 annual report on Form 10-K of SMT Health 
Services Inc.

KPMG Peat Marwick LLP
Pittsburgh, Pennsylvania
April 23, 1997