Children's Hospital and Health Center Selects QuadraMed's EZ-CAP Managed Care Solution; Provides Prompt, Accurate Claims Adjudication and Reimbursement.

Business Editors & Health/Medical Writers

SAN RAFAEL, Calif.--(BW HealthWire)--July 26, 2001

QuadraMed Corporation (Nasdaq SmallCap: QMDC) announced today that Children's Hospital and Health Center of San Diego -- recently named by Child magazine as one of the ten best children's hospitals in the country -- has purchased its EZ-CAP(R) managed care information system. Installed in over 250 sites, EZ-CAP manages patient, coverage, and financial information for physician hospital organizations, managed care organizations, and independent physician associations. Its comprehensive functionality facilitates eligibility verification, referral authorization, and prompt, accurate claims adjudication and reimbursement under varying benefit plans.

Children's Hospital and Health Center is using EZ-CAP to replace its existing managed care product. In addition, Children's will be deploying QuadraMed's EZ-NET product to provide web access to its provider network.

"QuadraMed's EZ-CAP is the most cost-effective of any managed care solution that we evaluated," commented Gayle Yeakle, vice president of Information Management at Children's Hospital and Health Center. "The integration of QuadraMed's solution reduces the time and expense incurred on claims processing, and provides the hospital with comprehensive information to better manage our business. EZ-CAP's managed care solution provides a win-win scenario for the hospital and our physicians."

"We are pleased that our EZ-CAP solution will assist Children's Hospital's ability to work effectively and efficiently with managed care companies. Our customer service, support, and installation are all focused on improving the speed and accuracy of managed care claim adjudication and reimbursement," said Mike Wilstead, president of QuadraMed's EZ-CAP division.

About Children's Hospital and Health Network

Children's Hospital and Health Network, located in San Diego, Calif., was recently rated the one of the 10 best children's hospitals in the United States by Child magazine. Children's is a full-service 271-bed facility dedicated to specialized patient care. As the San Diego metropolitan region's only pediatric trauma center, Children's cares for children with the most severe medical emergencies to those with mild illnesses.

About QuadraMed Corporation

QuadraMed is a healthcare information technology leader with software, web-enabled solutions, and professional consulting services that enable hospitals and providers to efficiently and effectively manage their delivery of healthcare. QuadraMed has over one hundred products and services facilitating all facets of healthcare information management, including clinical, patient, financial, compliance, and managed care. QuadraMed serves more than half of the U.S. hospitals and supports global healthcare initiatives with a dedicated staff of over 1,000 professionals. For more information about QuadraMed, its products, and services, visit www.quadramed.com.

Note to Editors: QuadraMed and EZ-CAP are registered trademarks of QuadraMed Corporation. All other trademarks and registered trademarks are the properties of their respective holders.