Item 5.02 Departure of Directors or Certain Officers; Election of Directors;
Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

On August 8, 2012, the Board of Directors (the "Board") of Dynacq Healthcare, Inc. (the "Company") placed Mr. Philip Chan on paid administrative leave from his position as Chief Financial Officer of the Company pending the results of an investigation, as discussed in our Current Report on Form 8-K filed with the Commission on August 9, 2012. On August 23, 2012, the Board received an interim report from its outside legal counsel regarding the status of the investigation, which is ongoing. The Board has extended Mr. Chan's paid administrative leave, to be reviewed periodically pending the conclusion of the investigation.

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