8-K

                      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)  March 12, 2001

                          DYNACQ INTERNATIONAL, INC.

(State or other jurisdiction      (Commission       (IRS Employer
      of incorporation)           File Number)   Identification Number)

         Nevada                     0-20554           76-0375477


10304 I-10 East, Suite 369, Houston, Texas              77029
 (Address of principal executive office)              (Zip Code)

Registrant's telephone number, including area code (713)673-6432


Item 5. Other Events.

  The Board of Directors of the Company in the best interests of the Company and
its shareholders unanimously authorize and declare as of February 27, 2001 a
stock split effected as a 100% stock dividend on all issued shares of its common
stock, $0.001 par value, whether outstanding or not, including its treasury
shares, effective as of 5:00 p.m. on March 12, 2001 (the "Record Date") as to
all shareholders of record as of such date and hereby authorize the proper
officers of the Company to undertake, complete and execute all filings and
notifications which may be required in connection herewith including NASDAQ, the
SEC, the Secretary of State, and press releases as determined to be necessary in
their sole discretion. Shareholders of record will receive their stock dividend
certificate after March 16, 2001. NASDAQ trading ex-dividend date will be March
19, 2001 and Dynacq's trading symbol remains the same as "DYII".

Item 7. Exhibits

Exhibits.

   99.1 Unanimous Consent of Board of Directors of Dynacq International, Inc.
   99.2 Press release


The Board of Directors of the Company in the best interests of the Company and
its shareholders unanimously approved the issuance of 27,942 restricted common
shares valued at $380,000 pursuant to the Merger Agreement in exchange for all
the issued and outstanding shares including treasury shares of Surgi+Group,
Inc., an outpatient surgical center development company in February, 2001. The
acquisition of all the assets of Surgi+Group, Inc. will provide the Company
access to the expertise and business opportunities of Surgi+Group, Inc., which
will enhance the success of the Company's surgical center expansion statewide
and nationwide. Among the assets are 12 business opportunities which include
both existing and new surgical centers. For each existing surgical center
prospect that the Company decides to acquire, the Company will pay Surgi+Group's
shareholders a success fee of $170,000 or $170,000 worth of the Company's
restricted common shares value at the date of closing with a 20% discount within
the first twelve months period after the merger, and will pay $55,000 cash or
$55,000 worth of the Company's restricted common shares value at the date of
closing with a 20% discount within the next six months period. For each new
surgical center prospect that the Compnay decides to develop, the Company will
pay Surgi+Group's shareholders one half of the success fee at closing of the new
joint venture entity and pay the remaining half of the success fee when the
surgical center is completed and start operation during the eighteen months
period after merger.


                                    SIGNATURES

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

                                        Dynacq International, Inc.
                                        (Registrant)

                                        /s/ Philip Chan
Date :  March 12, 2001                  ----------------------------------
                                        Philip Chan
                                        Chief Financial Officer,
                                        Vice President and Director

EX-99.1

                                                                    EXHIBIT 99.1


                            UNANIMOUS CONSENT OF
            BOARD OF DIRECTORS OF DYNACQ INTERNATIONAL, INC.

      WHEREAS, the Board of Directors of Dynacq International, Inc., a Nevada
corporation (the "Company") believe it is in the best interests of the Company
and its shareholders to declare as of the effective date hereof (the
"Declaration Date") a stock split effected as a 100% stock dividend (the
"Dividend") on all issued shares of its common stock, $0.001 par value (the
"Common Stock").

       NOW THEREFORE IT IS RESOLVED, that the Board of Directors hereby
authorize and declare as of the Declaration Date a stock split effected as a
100% stock dividend on all issued shares of its Common Stock, whether
outstanding or not, including its treasury shares, effective as of 5:00 p.m. on
March 12, 2001 (the "Record Date") as to all shareholders of record as of such
date and hereby authorize the proper officers of the Company to undertake,
complete and execute all filings and notifications which may be required in
connection herewith including with NASDAQ, the SEC, the Secretary of State, and
press releases as determined to be necessary in their sole discretion.

      IN WITNESS, WHEREOF the undersigned have executed this Unanimous Consent
effective as of February 27, 2001.

                                           DIRECTORS:

                                           /s/ Chiu M. Chan
                                           --------------------------
                                           Chiu M. Chan

                                           /s/ Philip S. Chan
                                           --------------------------
                                           Philip S. Chan

                                           /s/ Stephen L. Huber
                                           --------------------------
                                           Stephen L. Huber

                                           /s/ Earl R. Votaw
                                           --------------------------
                                           Earl R. Votaw

EX-99.2

                                                                    EXHIBIT 99.2



        DYNACQ ANNOUNCES STOCK SPLIT EFFECTED AS A 100% STOCK DIVIDEND

HOUSTON, TX-(BW HealthWire)--2/27/2001--Dynacq International, Inc. (NASDAQ:DYII)
board of directors today approved a stock split effected as a 100% stock
dividend on all issued common shares, whether outstanding or not, including its
treasury shares, held of record as of March 12, 2001.  This action follows the
reported record setting earnings for fiscal 1999-2000.

   Mr. Chiu M. Chan, President and CEO of Dynacq, stated, "We are very excited
by the tremendous success of the company.  We have carefully planned our growth,
and acquire only entities, like Piney Point, which are accretive to our bottom
line.  We believe this approach to be in the best interest of our company and
its stockholders. The 100 % stock dividend is a reward to our shareholders in
appreciation of their trust and support.  We are especially grateful to those
dedicated employees shareholders who have brought great success to the company
and made this event possible.  We offer this as a demonstration of our intent to
strengthen our commitment to increase stock value and encourage wider
distribution of Dynacq stock."

   Shareholders of record will receive their stock dividend certificate after
March 16, 2001.  NASDAQ trading ex-dividend date will be March 19, 2001 and
Dynacq's trading symbol remains the same as "DYII".

   Dynacq International, Inc. operates high-quality and efficient, community-
based, one-stop healthcare centers designed to meet the needs of physicians and
their patients.

   Dynacq International, Inc. was recognized last year by the Houston Chronicle
Newspaper as one of the top ten fastest-growing public companies in Houston.
Wallstreet.com has recognized the company as being in the top 15% fastest-
growing public companies in the country.

   Certain statements in this release are forward-looking.  Although the company
believes its expectations to be based on reasonable assumptions within the
bounds of knowledge of its business and operations, there can be no assurance
that actual operating results will not differ materially from these
expectations.  Please refer to the reports filed by the company with the
Securities and Exchange Commission for a review of factors that may cause
operating results to differ.

Contact: Dynacq International, Inc.
         Philip Chan  (713)673-6432