Altru Health System Goes Live with QuadraMed Computerized Physician Order Entry.

RESTON, Va. -- QuadraMed(R) Corporation (Amex:QD) today announced that Altru Health System, Grand Forks, North Dakota has completed a "go live" of the company's Affinity(R) CPOE (Computerized Physician Order Entry). This high level patient safety application is a next generation product with embedded Intelligent Care Sets(R) (ICS) that enable it to incorporate the knowledge and preferences of its physician users, and is an integral component of the Electronic Health Record (EHR).

According to Dave Molmen, Altru Chief Operating Officer, "At every level we are committed to implementing a fully integrated, world class EHR. By using a phased approach to building the clinical side of our healthcare information system we've been able to significantly improve patient safety and outcomes, while not overwhelming our staff with technology.

"For instance, our Clinician Access grew from 18,000 logons in 2000 to over 200,000 last year. And keeping to our plan, we spent a full year preparing for the go live of CPOE to ensure a smooth implementation and buy-in from all of our stakeholders. This step-by-step process has cost-effectively positioned Altru to be recognized as one of the nation's premier health systems."

The Altru Health System includes a 277-bed acute care hospital, a 35-bed rehabilitation center, a medical group and regional clinics serving northeastern North Dakota and northwest Minnesota. J.D. Power and Associates recognized Altru with a 2005 "Distinguished Hospital for Service Excellence" award to add to the organization's growing list of honors.

"Patient safety is our primary concern," said Marv Meier, Altru Chief Information Officer. "Our care providers have embraced technology as a tool to help them care for their patients. More than 90 percent 'help themselves' to information contained in our Affinity HIS, which resulted in over 3.5 million accesses in 2004. In May, almost 100 of them logged on to our new Clinical Workstation in a single day, and about a third accessed information multiple times.

"With the implementation of CPOE, our physicians will have an advanced tool for clinical decision making, be able to easily review clinical information, and enter their orders electronically. At Altru, a paper chart is rapidly becoming no longer necessary."

Altru has 35 wireless laptops on various floors throughout the hospital and desktop computers in alcoves, one for each two to three rooms. During their rounds, physicians use the desktops to obtain the latest patient information. They also access the system remotely from their offices and homes. A few physicians carry a laptop during their hospital rounds.

"QuadraMed has been our partner and prime vendor since 1992," Meier continued. "Together, our team is now within months of having all of the applications installed for an integrated EHR, far ahead of most other healthcare institutions. And we've accomplished all this while still controlling costs. Only 1.9 percent of our operating budget is devoted to information systems. This is well below the national average."

The ICSs embedded in Affinity CPOE provide physicians with relevant diagnostic and therapeutic content for a unique approach to clinical decision support. The system enables end-users to author their own rules for organizing and displaying clinical data in the way that is most relevant to them. For example, a Cardiologist may want data organized differently than a Surgeon. The data are presented with suggested orders tailored to specific conditions. This helps to prevent adverse drug events and redundant tests, while improving efficiency, workflow and organization when orders are entered.

End-user authoring is an important differentiator for QuadraMed. The majority of other systems require the hospital's IT department, or in some instances the vendor, to make rules changes.

"Altru is an early adopter of leading-edge clinical technology," said Joseph I. Bormel, QuadraMed Vice President and Chief Medical Officer. "When I met with the hospital's physicians to prepare for CPOE installation, I was impressed with their enthusiasm for the project and their high usage of the Clinical Workstation.

"Based upon their personal interests and specialties, I witnessed physicians focused upon using QuadraMed's technology to improve outcomes for their patients. As a group they see EHR for what it really is, a valuable tool to help them provide inpatients with high quality care on a consistent basis. The clinicians at Altru have built for their community the EHR environment that most communities strive for."

Further information about all QuadraMed products and services is available by visiting the website at www.quadramed.com or by calling 800-393-0278.

About QuadraMed Corporation

QuadraMed is dedicated to improving healthcare delivery by providing innovative healthcare information technology and services. From clinical and patient access management to revenue cycle and health information management, QuadraMed delivers real-world solutions that help healthcare professionals deliver outstanding patient care with optimum efficiency. Behind our products and services is a staff of almost 700 professionals whose experience and dedication to service have earned QuadraMed the trust and loyalty of customers at approximately 2,000 healthcare provider facilities. To find out more about QuadraMed, visit www.quadramed.com.

Cautionary Statement on Risks Associated with QuadraMed's Forward-Looking Statements

This press release contains forward-looking statements by QuadraMed within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks and uncertainties. The words "believe," "expect," "anticipate," "intend," "plan," "estimate," "may," "should," "could," and similar expressions are intended to identify such statements. Forward-looking statements are not guarantees of future performance and are to be interpreted only as of the date on which they are made. QuadraMed undertakes no obligation to update or revise any forward-looking statement except as required by law. QuadraMed advises investors that it discusses risk factors and uncertainties that could cause QuadraMed's actual results to differ from forward-looking statements in its periodic reports filed with the Securities and Exchange Commission ("SEC"). QuadraMed's SEC filings can be accessed through the Investor Relations section of our website, www.quadramed.com, or through the SEC's EDGAR Database at www.sec.gov (QuadraMed has EDGAR CIK No. 0001018833).

QuadraMed, Affinity and Intelligent Care Sets are registered trademarks of QuadraMed Corporation. All other trademarks are the property of their respective holders.