QuadraMed Announces $10 Million Contract With One of Nation's Largest Catholic Healthcare Organizations.

Business Editors and Health/Medical Writers

SAN RAFAEL, Calif.--(BW HealthWire)--Feb. 1, 2000

2,400-Bed Multi-Hospital Corporation to Implement Total QuadraMed

Solution

Affinity, Decision Support and EDI Products Bundled Together

QuadraMed Corporation (NASDAQ: QMDC), a leading healthcare information technology company, today announced one of the industry's largest enterprise-wide healthcare information system (HIS) contracts in recent months. After an extensive vendor evaluation led by an independent consulting firm, QuadraMed was selected over two of the largest vendors in the healthcare information systems sector.

Catholic Health Midwest, Inc. (CHM) d.b.a. Alverno Information Services (AIS), of Beech Grove, Indiana -- the information systems division of the Sisters of St. Francis Health Services, Inc. (SSFHS), Mishawaka, Indiana -- will use QuadraMed's software and services solutions to support patient care and financial management operations throughout their entire organization.

&uot;QuadraMed was the best fit for our business requirements. We considered all of the leading vendors in the industry. QuadraMed's strengths aligned best with our needs to replace our older self-maintained systems, yet provide standardization across our network of facilities,&uot; stated AIS chief information officer and vice president, William Laker. &uot;Also, in anticipation of HIPAA and regulatory changes across multiple states, we felt it was necessary to rely on vendor-supplied products for our mission critical applications. We expect to minimize our exposure in supporting regulations and see significant operational improvements and cost reductions through standardization with QuadraMed's offering.&uot;

The implementation will occur in multiple phases over the next couple of years and will include the Company's AFFINITY(R) solution incorporating patient registration, medical records, patient accounting, order management and clinician access applications. In addition, QuadraMed will implement its integrated Insight Executive Information System, Decision Support, Cost Accounting and EDI Eligibility Systems solutions.

&uot;This is an exciting opportunity for QuadraMed and proves our new organization is working to deliver integrated enterprise-wide sales consisting of bundled software and service solutions which generate real value to our customers,&uot; said QuadraMed's president John Cracchiolo. &uot;Clearly this is one of the largest multi-hospital implementations in the country and we are pleased to have been selected to partner with Catholic Health Midwest and the Sisters of St. Francis Health Services. Their endorsement is a good indication of the market's confidence in QuadraMed.&uot;

Alverno Information Services is comprised of over 250 employees and provides management information systems services to the following hospitals owned by the Sisters of St. Francis Health Services, Inc. Hospitals in Indiana include: St. Francis Hospital and Health Centers in Beech Grove, Indianapolis and Mooresville; St. Clare Medical Center, Crawfordsville; St. Anthony Medical Center, Crown Point; St. Margaret Mercy Healthcare Centers, Hammond and Dyer; and St. Anthony Memorial Health Centers in Michigan City. Hospitals in Illinois include St. James Hospital and Health Centers in Chicago Heights and Olympia Fields. In addition to these facilities, SSFHS owns fifty percent of Greater Lafayette Health Services, Inc. which is comprised of St. Elizabeth Medical Center and Home Hospital in Lafayette, Indiana. Alverno Information Services provides systems services and support to Greater Lafayette Health Services, Inc.

QuadraMed's Affinity product received top honors in a survey of over 1,500 end users, according to KLAS Enterprises, a healthcare industry research firm which monitors IT vendors. The results were published by KLAS in its Top 20 Vendor Performance Report --- a summary of healthcare software performance collected from Chief Information Officers and other information technology executives. The report ranks vendors in four categories --- Major Ambulatory, Specialty Clinic, Specialty Administrative/Financial, and Major Acute Care -- where QuadraMed's Affinity solution is classified.

About Alverno Information Systems

Alverno Information Systems (AIS) is the information systems division of Catholic Health Midwest, Inc. (CHM), a subsidiary of the Sisters of St. Francis Health Services, Inc. AIS employs over 250 professionals and provides information services to six hospitals and their adjuncts, the Corporate Office and receivables services in a two-state area owned by the Sisters of St. Francis Health Services, Inc. The AIS network represents over 9,000 employees; 2,440 licensed acute-care beds; and 72,158 annual inpatient admissions. AIS also provides implementation and support services to other Midwest healthcare providers on a consulting basis. For more information on Alverno Information Services, visit http://www.alverno.org.

About QuadraMed Corporation

QuadraMed Corporation uses technology to transform disparate healthcare data into valuable, enterprise-wide information. The Company's web-enabled software and service solutions allow healthcare institutions to generate operational efficiencies, improve cash flow and measure the cost and quality of care. QuadraMed has implemented its solutions in more than 4,000 provider sites across North America, representing over 65% of the nation's hospitals. For more information about QuadraMed, its products and services, visit http://www.quadramed.com.

QuadraMed 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. In addition to its web-enabled software solutions, QuadraMed has developed The American Hospital Directory (ahd.com) -- the most comprehensive resource for hospital and healthcare benchmarking information on the Web.

QuadraMed is a trademark and AFFINITY is a registered trademark of the QuadraMed Corporation. All other trademarks and registered trademarks are the properties of their respective holders.