Crystal Reports Subreport with IF/THEN statement

Message

   I am using a subreport to display codes horizontally. These are my formulas:
FORMULA #1
    WhilePrintingRecords;
    StringVar chain := '';
    NumberVar ChCnt := 1

FORMULA #2
    WhilePrintingRecords;
    StringVar Item:= {DoctorClientIndex.Client}; 
    StringVar Chain;
    NumberVar ChCnt;
    if ChCnt = 1 
    then (ChCnt:= 2; chain := Item)
    else 
    if Length(Chain) + Length(Item) > 254
    then Chain := Chain else
    chain := chain + '^' + Item

FORMULA #3
    WhilePrintingRecords;
    StringVar Chain

This works fine, except I need to add a code under certain conditions. I changed FORMULA #3 to the following:
    If {Doctors.ClientInd} = 0 then StringVar Chain else
    If {Doctors.ClientInd} = 2 then {Doctors.Doctors1}&'^'&StringVar Chain

Again, this works fine. The problem is when the Chain variable is blank I still need it to display the Doctors.Doctors1 by itself. 

This is what the report looks like:

Doctors.Doctors1     Doctors.Client Ind     Subreport
A1                             2                               A1^180061^D1
A104                         0                               C197^M180
A15                           2                               

This is what it shoudl be:

Doctors.Doctors1     Doctors.Client Ind     Subreport
A1                             2                               A1^180061^D1
A104                         0                               C197^M180
A15                           2                               A15