SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549


                                    FORM 8-K

                                 CURRENT REPORT

     PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934


         Date of Report (Date of earliest event reported): July 11, 2001


                                OrthoLogic Corp.
             (Exact name of registrant as specified in its charter)


                                    Delaware
                 (State or other jurisdiction of incorporation)


        0-21214                                            86-0585310
(Commission File Number)                    (IRS Employer Identification Number)


1275 West Washington, Phoenix, Arizona                       85281
(Address of principal executive offices)                   (Zip Code)


       Registrant's telephone number, including area code: (602) 286-5520


                                 Not Applicable
          (Former name or former address, if changed since last report)

ITEM 2. ACQUISITION OR DISPOSITION OF ASSETS

     On July 11, 2001,  OrthoLogic  Corp.  completed its sale of its  continuous
passive motion business  division to OrthoRehab,  Inc.  OrthoRehab,  Inc. is not
affilated  with  OrthoLogic  Corp. A copy of the press  release  announcing  the
transaction is attached as exhibit 99.1 to this Form 8-K.

     Pro-forma  financial  statements  will be  filed by an  amendment  or other
filing no later than 60 days from the date of this filing.

ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS

Exhibit No.              Exhibit Description                      Filed Herewith
-----------              -------------------                      --------------
  10.1          Asset Purchase Agreement dated May 8, 2001              X
                between OrthoLogic Corp. and OrthoRehab, Inc.

  10.2          First Amendment to Asset Purchase Agreement             X
                dated July 6, 2001 between OrthoLogic Corp.
                and OrthoRehab, Inc.

  99.1          Press Release dated July 13, 2001                       X


                                   SIGNATURES


     Pursuant to 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 hereunto duly authorized.

Dated: July 26, 2001                         ORTHOLOGIC CORP.


                                             /s/ Thomas Trotter
                                             -----------------------------
                                             Thomas Trotter
                                             Chief Executive Officer

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