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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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<SEC-DOCUMENT>0000914760-96-000191.txt : 19960921
<SEC-HEADER>0000914760-96-000191.hdr.sgml : 19960921
ACCESSION NUMBER:		0000914760-96-000191
CONFORMED SUBMISSION TYPE:	3
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		19960919
SROS:			NONE

SUBJECT COMPANY:	

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			ALLEGIANCE CORP
		CENTRAL INDEX KEY:			0001017799
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-SPECIALTY OUTPATIENT FACILITIES, NEC [8093]
		IRS NUMBER:				364095179
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		3
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-11885
		FILM NUMBER:		96632175

	BUSINESS ADDRESS:	
		STREET 1:		ONE BARTER PARKWAY
		CITY:			DEERFIELD
		STATE:			IL
		ZIP:			60015
		BUSINESS PHONE:		8479483781

	MAIL ADDRESS:	
		STREET 1:		ONE BARTER PARKWAY
		CITY:			DEERFIELD
		STATE:			IL
		ZIP:			60015
<REPORTING-OWNER>

COMPANY DATA:	
	COMPANY CONFORMED NAME:			KNIGHT LESTER B
	CENTRAL INDEX KEY:			0001023262
	STANDARD INDUSTRIAL CLASSIFICATION:	 []
<RELATIONSHIP>DIRECTOR

FILING VALUES:
	FORM TYPE:		3

BUSINESS ADDRESS:	
	STREET 1:		1450 WAUKEGAN ROAD
	STREET 2:		MCGAW PARK
	CITY:			CHICAGO
	STATE:			IL
	ZIP:			60085

MAIL ADDRESS:	
	STREET 1:		1450 WAUKEGAN ROAD
	STREET 2:		MCGAW PARK
	CITY:			CHICAGO
	STATE:			IL
	ZIP:			60085
</REPORTING-OWNER>
</SEC-HEADER>
<DOCUMENT>
<TYPE>3
<SEQUENCE>1
<DESCRIPTION>FORM 3 - 09/20/96(1)
<TEXT>

U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 3
INITIAL STATEMENT OF BENEFICIAL OWNERSHIP OF SECURITIES
1. Name and Address of Reporting Person
   Knight, Lester B.
   1450 Waukegan Road
   McGaw Park, IL  60085
   U.S.A.
2. Date of Event Requiring Statement (Month/Day/Year)
   09/20/96(1)
3. IRS or Social Security Number of Reporting Person (Voluntary)
   
4. Issuer Name and Ticker or Trading Symbol
   Allegiance Corporation
   AEH
5. Relationship of Reporting Person to Issuer (Check all applicable)
   (X) Director  ( ) 10% Owner  (X) Officer (give title below) ( ) Other
   (specify below)
   Chairman of the Board and Chief Executive Officer
6. If Amendment, Date of Original (Month/Day/Year)
   
<TABLE>
<CAPTION>
___________________________________________________________________________________________________________________________________
 Table I -- Non-Derivative Securities Beneficially Owned                                                                           |
___________________________________________________________________________________________________________________________________|
1. Title of Security                       |2. Amount of          |3. Ownership    |4. Nature of Indirect                          |
                                           |   Securities         |   Form:        |   Beneficial Ownership                        |
                                           |   Beneficially       |   Direct(D) or |                                               |
                                           |   Owned              |   Indirect(I)  |                                               |
___________________________________________________________________________________________________________________________________|
<S>                                        <C>                    <C>              <C>
Common Stock (and Series A Junior Participa|0                     |                |                                               |
ting Preferred Stock Purchase              |                      |                |                                               |
- -----------------------------------------------------------------------------------------------------------------------------------|
Rights currently attached to and trading wi|                      |                |                                               |
th the Common Stock)(2)                    |                      |                |                                               |
- -----------------------------------------------------------------------------------------------------------------------------------|
___________________________________________________________________________________________________________________________________|
<CAPTION>
___________________________________________________________________________________________________________________________________
 Table II -- Derivative Securitites Beneficially Owned                                                                             |
___________________________________________________________________________________________________________________________________|
1.Title of Derivative   |2.Date Exer-       |3.Title and Amount     |         |4. Conver-|5. Owner-    |6. Nature of Indirect      |
  Security              |  cisable and      |  of Underlying        |         |sion or   |ship:        |   Beneficial Ownership    |
                        |  Expiration       |  Securities           |         |exercise  |Form of      |                           |
                        |  Date(Month/      |-----------------------|---------|price of  |Deriv-       |                           |
                        |  Day/Year)        |                       |Amount   |deri-     |ative        |                           |
                        | Date    | Expira- |                       |or       |vative    |Security:    |                           |
                        | Exer-   | tion    |         Title         |Number of|Security  |Direct(D) or |                           |
                        | cisable | Date    |                       |Shares   |          |Indirect(I)  |                           |
___________________________________________________________________________________________________________________________________|
<S>                     <C>       <C>       <C>                     <C>       <C>        <C>           <C>
None                    |         |         |                       |         |          |             |                           |
- -----------------------------------------------------------------------------------------------------------------------------------|
___________________________________________________________________________________________________________________________________|
</TABLE>
Explanation of Responses:
(1) Anticipated date of effectiveness of Form 10 for 
Issuer.
(2) On October 1, 1996, it is expected that Allegiance Corporation will become 
an independent publicly-traded 
company following a dividend of Allegiance Corporation common shares on each 
outstanding share of Baxter 
International Inc. common stock.  At such time, it is expected that the 
reporting person will receive Allegiance 
Corporation common shares.  However, the amount of common stock to be received 
on such date is uncertain 
because the dividend ratio has not yet been finalized.  All Allegiance 
Corporation shares are owned by Baxter 
International Inc. as of the date 
hereof.
SIGNATURE OF REPORTING PERSON
Lester B. Knight
DATE
9/19/96

</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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