Abstract: The present invention is a method and apparatus for a PBX-based observation and supervisory system to be used by a facility for monitoring, reporting, and notification of certain telephone calls. The system comprises a PBX system having a plurality of telephone sets operatively connected thereto, and a computer platform interconnected with, and operating as an interface to, the PBX system, wherein the computer platform includes preprogrammed software to record, trace, monitor, supplement or acknowledge call placed thereon. The system further includes software and processes for monitoring status and diagnosing problems therein.