Affinity's Functionality and Technology Platform Satisfies Elaborate Information Management Needs of Chicago Hospital.

Business Editors/Healthcare Writers

SAN RAFAEL, Calif.--(BUSINESS WIRE)--Oct. 30, 2000

-- South Shore Hospital Chooses QuadraMed Healthcare Information

System Solution's Integrated Environment Over Four Competitors --

QuadraMed Corp. (Nasdaq:QMDC), a leading healthcare information systems company dedicated to linking hospitals to their constituents, today announced that South Shore Hospital, in Chicago, will implement QuadraMed's AFFINITY(R) healthcare information system (HIS) solution to manage its financial and patient information resources. South Shore Hospital, which entertained HIS solutions from four other vendors in a rigorous evaluation process, ultimately chose AFFINITY for its functionality, technology platform and ability to provide the suite of products in a fully integrated Windows environment.

QuadraMed's AFFINITY HIS solution seamlessly integrates a hospital's clinical, financial and patient information systems from a single, patient-centered database to provide a content-rich, longitudinal view of the enterprise's data and reports. According to South Shore Hospital CFO, Tim Caveney, AFFINITY's simple architecture requires less hardware, thus is easier and less costly for the Hospital to maintain than the systems of other HIS providers. In addition, the web-enabled AFFINITY lets South Shore Hospital connect with its clinics, promoting efficient and cost-effective information sharing.

"We have an elaborate list of information needs which requires rich product offerings," acknowledged Caveney. "We are impressed that AFFINITY fits the functional needs of the Hospital the closest of those systems we evaluated; when we found QuadraMed is able to provide all our product needs, and in an integrated environment, we were convinced of its superiority."

South Shore Hospital's decision to implement the QuadraMed's solution was clinched by positive recommendations from other hospitals in the greater-Chicago area actively using AFFINITY, as well as KLAS Enterprises' two-time recognition of AFFINITY as a top HIS product.

"AFFINITY's implementation at South Shore Hospital is yet another demonstration that the solution's functionality and technology gives QuadraMed a competitive advantage over other HIS vendors," said QuadraMed's Chief Marketing Officer, Frank Pecaitis. "This, coupled with AFFINITY's ability to easily integrate and preserve the Hospital's existing platform investments, signals to the industry that as hospitals look for one vendor to provide one solution with a multitude of functionalities, AFFINITY is the superior and popular choice."

More than 2,000 hospital chief information officers recently recognized AFFINITY as a top software solution amongst "Major Acute Care" vendors. In its Spring 2000 Healthcare Info Tech Top 20 Report, KLAS Enterprises -- a healthcare industry research firm that monitors IT vendors -- awarded AFFINITY seven points out of nine, based on several categories, which placed it above competitors such as Meditech, Siemens/SMS, Cerner and McKesson HBOC. AFFINITY's Spring 2000 ranking marks the second time in a year that the QuadraMed solution received top billing from KLAS; it is the only instance of a vendor achieving the No. 1 ranking in two consecutive reports.

About South Shore Hospital

South Shore Hospital is known for delivering high-quality care since its founding in 1912. The Hospital is committed to serving the community and to providing quality medical care for the whole family from infants to seniors -- and managing costs.

About QuadraMed Corp.

QuadraMed leverages its industry expertise and product breadth to deliver web-enabled, secure solutions, which link the nation's hospitals to their diverse constituents. The Company is focused on driving customer service excellence and delivering a return on investment for its clients.

QuadraMed has implemented its solutions in more than 4,000 provider sites across North America, representing over 60% of the nation's hospitals. The Company has a significant talent pool, which-through its active participation in professional and trade organizations-has helped to shape the healthcare information technology industry. With broad-based consulting expertise in healthcare business operations and information management, the Company has substantial expertise in the core components stipulated within HIPAA legislation.

For more information about QuadraMed, its products and services, visit http://www.quadramed.com.

Note to Editors: QuadraMed is a trademark and AFFINITY is a registered trademark of QuadraMed Corp. All other trademarks and registered trademarks are the properties of their respective holders.