North Carolina Hospital Selects QuadraMed to Provide Healthcare Information System; Watauga Medical Center to Implement Advanced Care Management Solutions.

RESTON, Va. -- QuadraMed(R) Corporation (Amex:QD) today announced that the Company has been awarded a contract for QuadraMed Affinity(R) HIS (Healthcare Information System) by Watauga Medical Center, Inc., Boone, North Carolina. This system contract will include a comprehensive suite of software applications including advanced care products such as Affinity CPOE (Computerized Physician Order Entry), revenue cycle management functions, and Electronic Document Management which supports the electronic health record. Planning for the system's implementation enterprise-wide, which will replace an existing HIS, is already underway.

According to Susan Briscoe, WMC Senior Vice President of Patient Care, "The strength of Affinity's clinical applications was the single most important factor in selecting QuadraMed. Our staff and administration are firmly committed to implementing advanced technology for enhancing patient safety and improved outcomes. The intuitive Clinical Decision Support offered by Affinity is simply the best we've seen."

Watauga Medical Center (WMC) is a JCAHO accredited, 117-bed non-profit regional institution located in the Blue Ridge Mountain community of Boone, North Carolina. The medical center serves residents of the High Country Region of northwestern North Carolina and northeastern Tennessee as well as visitors to the surrounding resort areas. WMC employs 950 people and has a medical staff of 88 physicians.

"When we compared QuadraMed's technology and functionality to the other vendors we considered, Affinity clearly stood out as our best choice," said Greg Kieliszek, Watauga Medical Center Vice President and Chief Information Officer. "The fact that this company's products have received strong ranking by industry analysts such as The Gartner Group and MD Buyline, as well as Affinity's consistently high marks from KLAS served to reinforce the opinions formed independently by our multidisciplinary selection team."

"Of course, cost is always a consideration. Here too, QuadraMed proved to be very competitive. We easily could have invested a lot more in another HIS and received less functionality in return."

Affinity CPOE provides physicians with a next generation tool to easily review clinical information and enter orders. Its unique Intelligent Care Sets(R) enable the system to actually learn from its users in order to incorporate the clinicians' personal preferences and local policies as it presents information and orders tailored to specific conditions.

The EDM functionality allows healthcare organizations to proactively manage, process and securely store patient and business information in a centralized database enabling the electronic health record. It embeds as a core service complementing all Affinity access, care, financial and HIM (Health Information Management) products.

"The real value Affinity provides to customers like Watauga Medical Center is consistently reflected in head-to-head competition with other vendors," said Frank Pecaitis, QuadraMed Senior Vice President for Client Development. "Affinity's reputation for industry leading financial management systems is now rivaled by the recognition being given to our care products from leading healthcare analysts, as well as our growing HIS customer base. QuadraMed is powering smarter healthcare with cost-effective knowledge management tools that raise the bar for improving patient safety and the quality of care."

Further information about all QuadraMed products and services is available on the Internet at www.quadramed.com or by calling 800-393-0278. More on Watauga Medical Center can be found by visiting www.wataugamc.org.

About QuadraMed Corporation

QuadraMed is dedicated to improving healthcare delivery by providing innovative healthcare information technology and services. From clinical and patient information 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 more than 900 professionals whose experience and dedication to service have earned QuadraMed the trust and loyalty of customers at more than 2,000 healthcare provider facilities. To find out more about QuadraMed, visit www.quadramed.com.

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