WILSON KEREN B
SC 13G/A, 1998-02-17
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<PAGE>
 
                      SECURITIES AND EXCHANGE COMMISSION
                            WASHINGTON, D.C.  20549

                                  SCHEDULE 13G
                               (AMENDMENT NO. 3)

                   Under the Securities Exchange Act of 1934

                         ASSISTED LIVING CONCEPTS, INC.
                                (Name of issuer)

                                  COMMON STOCK
                         (Title of class of securities)

                                   04543L 109
                                 (CUSIP number)


          Check the following box if a fee is being paid with the statement [_].
(A fee is not required only if the reporting person:  (1) has a previous
statement on file reporting beneficial ownership of more than five percent of
the class of securities described in Item 1; and (2) has filed no amendment
subsequent thereto reporting beneficial ownership of five percent or less of
such class.)  (See Rule 13d-7.)

          * 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. 04543L                   13G                  Page 2 of 5 Pages
- --------------------------                                ---------------------

- -------------------------------------------------------------------------------
 1  NAMES OF REPORTING PERSONS:
    Keren B. Wilson

    S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON:

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

- -------------------------------------------------------------------------------
 4  CITIZENSHIP OR PLACE OF ORGANIZATION:
    United States

- -------------------------------------------------------------------------------
                                                                               
NUMBER OF SHARES    5   SOLE VOTING POWER:                                     
BENEFICIALLY            749,512 (excluding 178,333 option shares)              
OWNED BY EACH         
REPORTING PERSON    -----------------------------------------------------------
WITH                6   SHARED VOTING POWER:                                   
                        -0-                                                    
                                                                           
                                                                               
                    -----------------------------------------------------------
                    7   SOLE DISPOSITIVE POWER:                                
                        749,512 (excluding 178,333 option shares)              
                    -----------------------------------------------------------
                    8   SHARED DISPOSITIVE POWER:
                        -0-
- --------------------------------------------------------------------------------
  9  AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH
     REPORTING PERSON
     927,845
- --------------------------------------------------------------------------------
 10  CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9)               [_]
     EXCLUDES CERTAIN SHARES
- --------------------------------------------------------------------------------
 11  PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9):             
     5.8%
- --------------------------------------------------------------------------------
 12  TYPE OF PERSON REPORTING (SEE INSTRUCTIONS):
     IN
- --------------------------------------------------------------------------------
<PAGE>
 
ITEM 1(a).   Name of Issuer:

                Assisted Living Concepts, Inc.

ITEM 1(b).   Address of Issuer's Principal Executive offices:

                9955 S.E. Washington
                Suite 201
                Portland, Oregon  97216

ITEM 2(a).   Name of Person Filing:

                Keren B. Wilson

ITEM 2(b).   Address of Principal Business Office:

                c/o Assisted Living Concepts, Inc.
                9955 S.E. Washington
                Suite 201
                Portland, Oregon  97216

ITEM 2(c).   Citizenship:

                United States

ITEM 2(d).   Title of Class of Securities:

                Common Stock

ITEM 2(e).   CUSIP Number:

                The CUSIP number for the Common Stock is 04543L 109.

ITEM 3.      If this statement is filed pursuant to Rules 13d-1(b), or 13d-2(b),
             check whether the person filing is a:

                Not applicable.

                             Page of 3 of 5 Pages
<PAGE>
 
ITEM 4.      Ownership

                The following information is as of December 31, 1997:

                (a)  Amount Beneficially Owned:  927,845
                     Includes 178,333 shares of Common Stock that are subject to
                     options that are immediately exercisable.


                (b)  Percent of Class:  5.8%
                     (Based on the number of shares outstanding as reported in
                     the Issuer's Form 10-Q for the fiscal quarter ended
                     September 30, 1997.)


                (c)  Number of Shares as to which such person has:


                     (i)   sole power to vote or to direct the vote:  749,512
                           (excludes 178,333 shares subject to options).


                     (ii)  shared power to vote or to direct the vote:  None.


                     (iii) sole power to dispose or to direct the disposition
                           of: 749,512 (excludes 178,333 shares subject to
                           options).


                     (iv)  shared power to dispose or to direct the disposition
                           of:  None.

ITEM 5.      Ownership of Five Percent or less of a Class:

                Not Applicable.

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:

                Not Applicable.

                               Page 4 of 5 Pages
<PAGE>
 
                                   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:  February 17, 1998


                                 /s/ KEREN B. WILSON
                                 -------------------
                                   Keren B. Wilson




                               Page 5 of 5 Pages


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