BIO VASCULAR INC
SC 13G/A, 1998-12-10
ORTHOPEDIC, PROSTHETIC & SURGICAL APPLIANCES & SUPPLIES
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<PAGE>
 
                                 UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                            WASHINGTON, D.C.  20549

                                  SCHEDULE 13G

                   Under the Securities Exchange Act of 1934

                              (Amendment No. 2)*


                               BIO-VASCULAR, INC.
                                (Name of Issuer)


                                  COMMON STOCK
                         (Title of Class of Securities)


                                   090923103
                                 (CUSIP Number)


                               November 30, 1998
            (Date of Event Which Requires Filing of this Statement)

Check the appropriate box to designate the rule pursuant to which this Schedule
is filed:
 
     [___]  Rule 13d-1(b)
     [___]  Rule 13d-(c)
     [___]  Rule 13d-1(d)

*The remainder of this cover page shall be filled out for a reporting person's
initial filing on this form with respect to the subject class of securities, and
for any subsequent amendment containing information which would alter the
disclosures provided in a prior cover page.

The information required in the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the Securities Exchange Act of
1934 ("Act") or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act (however, see the
Notes).



                               Page 1 of 5 pages
<PAGE>
 
CUSIP NO. 090923103                  13G                      Page 2 of 5 Pages

- --------------------------------------------------------------------------------
      NAMES OF REPORTING PERSONS
 1    I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
                                                                                
      HEARTLAND ADVISORS, INC.
 
      #39-1078128

- --------------------------------------------------------------------------------
 2    CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
                                                                (a) [_]
                                                                (b) [_]
                                                 
- --------------------------------------------------------------------------------
 3   SEC USE ONLY

- --------------------------------------------------------------------------------
 4   CITIZENSHIP OR PLACE OF ORGANIZATION
 
     WISCONSIN, U.S.A.

- --------------------------------------------------------------------------------
      NUMBER OF    5  SOLE VOTING POWER
                
       SHARES         0
                      
     BENEFICIALLY  -------------------------------------------------------------
                   6  SHARED VOTING POWER
      OWNED BY            
                      None
        EACH      
                   -------------------------------------------------------------
      REPORTING    7  SOLE DISPOSITIVE POWER
                       
       PERSON         0
     
        WITH       -------------------------------------------------------------
                   8  SHARED DISPOSITIVE POWER
               
                      None
- --------------------------------------------------------------------------------
9   AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
 
    0
- --------------------------------------------------------------------------------
10  CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES

                                                                   [__] 
- --------------------------------------------------------------------------------
11  PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9

    0.0%

- --------------------------------------------------------------------------------
12  TYPE OF REPORTING PERSON

    IA

- --------------------------------------------------------------------------------
<PAGE>
 
CUSIP NUMBER  090923103                     Page 3 Of 5 Pages

Item 1.
    (a) Name of Issuer:  Bio-Vascular, Inc.
        --------------                     


    (b) Address of Issuer's Principal Executive Offices:
        ----------------------------------------------- 
         2575 University Avenue
         St. Paul,  MN   55114

Item 2.
    (a) Name of Person Filing:    Heartland Advisors, Inc.
        ---------------------                             
 

    (b) Address of Principal Business Office:
        ------------------------------------ 
            Heartland Advisors, Inc.
            790 North Milwaukee Street
            Milwaukee, WI  53202

 
    (c) Citizenship:       Heartland Advisors is a Wisconsin corporation.
        -----------                                                      
 
    (d) Title of Class of Securities:  Common Stock
        ----------------------------               

    (e)  CUSIP Number: 090923103
         ------------           

Item 3. If this statement is filed pursuant to (S)(S) 240.13d-1(b) or 240.13d-
        ---------------------------------------------------------------------
        2(b) or (c), check whether the person filing is a:
        --------------------------------------------------

  (a)         Broker or Dealer registered under Section 15 of
    ------    the Act (15 U.S.C. 78o).

  (b)         Bank as defined in Section 3(a)(6) of
    ------    the Act (15 U.S.C. 78c).

  (c)         Insurance company as defined in Section 3(a)(19)
    ------    of the Act (15 U.S.C.78c).

  (d)         Investment company registered under section 8 of
    ------    the Investment Company Act of 1940 (15 U.S.C. 80a-8).

  (e)  X      An investment adviser in accordance with (S) 240.13d-
    ------    1(b)(1)(ii)(E);

  (f)         An employee benefit plan or endowment fund in accordance with
    ------    (S)240.13d-1(b)(1)(ii)(F).
<PAGE>
 
  (g)          A parent holding company or control person in accordance with
    -----      (S)240.13d-1(b)(ii)(G);

  (h)          A savings association as defined in Section 3(b) of the
    -----      Federal Deposit Insurance Act (12 U.S.C. 1813);

  (I)          A church plan that is excluded from the definition of an
    -----      investment company under section 3(c)(14) of the Investment
               Company Act of 1940 (15 U.S.C. 80a-3);

  (j)          Group, in accordance with (S)240.13d-1(b)(1)(ii)(J).
    -----

If this statement is filed pursuant to (S)240.13d-1(c), check this box [__].

Item 4.   Ownership.
          --------- 

    For information on ownership, voting and dispositive power with respect to
the above listed shares, see Items 5-9 of the Cover Page.


Item 5.   Ownership of Five Percent or Less of a Class.
          -------------------------------------------- 

      If this statement is being filed to report the fact that as
of the date hereof the reporting person has ceased to be the
beneficial owner of more than five percent of the class of
securities, check the following:[X]


Item 6.   Ownership of more than Five Percent on Behalf of Another
          --------------------------------------------------------
          Person.
          ------- 

          Not Applicable.

Item 7. Identification and Classification of the Subsidiary Which Acquired the
        ----------------------------------------------------------------------
Security Being Reported on By the Parent Holding Company.
- ---------------------------------------------------------
          Not Applicable.

Item 8.   Identification and Classification of Members of the Group.
          --------------------------------------------------------- 

          Not Applicable.

Item 9.   Notice of Dissolution of Group.
          ------------------------------ 

          Not Applicable.


Item 10.  Certification.
          ------------- 

      By signing below, I certify that, to the best of my knowledge and belief,
the securities referred to above were acquired and are held in the ordinary
course of business and were not acquired and are not held for the purpose of or
with the effect of changing or influencing the control of the issuer of the
securities
<PAGE>
 
and were not acquired and are not held in connection with or as a participant in
any transaction having that purpose or effect.

                                   SIGNATURE

     After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.

DATE: December 7, 1998
                                  
                                       HEARTLAND ADVISORS, INC.

                                       By: PATRICK J. RETZER
                                           Patrick J. Retzer
                                           Senior Vice President



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