QuadraMed Announces the 2006 Excellence in Healthcare Information Technology Award Recipients.

RESTON, Va. -- QuadraMed(R) Corporation (Amex:QD) today announced the winners in the company's second annual "QUEST Award" program. The program recognizes innovative uses of QuadraMed healthcare information technology in three categories - Patient Safety Improvement, Revenue Cycle Improvement, and Efficiency Improvement. This year's winners include Sibley Memorial Hospital, Washington, DC; Hannibal Regional Hospital, Hannibal, Missouri; and Good Samaritan Hospital, Vincennes, Indiana.

The three hospitals and their representatives were honored today during an Awards Luncheon at the 2006 QuadraMed User Group Conference in Denver, Colorado. In honor of their achievements, each institution will receive a $5,000 grant for its general fund.

Sibley Memorial Hospital was recognized for Patient Safety Improvement. In its award submission, authored by Dianne McCarthy, Director of Rehabilitation Medicine, and Michael Herman, Senior Applications Analyst, the hospital reported it is using QuadraMed Affinity(R) Patient Charting and Order Management to improve patient safety and clinical staff efficiency. Sibley has eliminated paper documents for evaluations, progress notes and treatment flowsheets. In doing so, patient charting is completed on mobile devices. Pain assessment and response to treatment are now uniformly documented, and physicians can easily access current assessment and treatment data anytime, anywhere via the Internet.

Hannibal Regional Hospital received its grant for Revenue Cycle Improvement. The hospital's submission, written by Ruth Koch, RHIT, Director of Health Information Services, noted that among its accomplishments, Hannibal has increased its cash flow in two areas totaling $3.75 million, while reducing its A/R days from 70 to 42. These results were achieved using Affinity Patient Charting, EDM and Health Notes and QuadraMed TempusOne for patient scheduling. Hannibal Regional was also a Quest Award recipient in 2005.

In the Efficiency Improvement Category, Good Samaritan Hospital took honors for its use of Affinity Patient Scheduling to centralize its scheduling process while de-centralizing patient registration. Kathy Hartsell, Patient Accounts Manager, authored the hospital's submission. In it, she detailed how Good Samaritan has significantly improved staff efficiency, enhanced relations with its physician community, and improved patient satisfaction to the 99th percentile. Also, the system's Resource Activity reports ensure coders now review in advance the accuracy and correct diagnosis of all scheduled services. This is the Good Samaritan's second consecutive QUEST Award.

Each QUEST Award entrant is required to complete a detailed application describing the achievement, business issues, objectives, approach, the use of QuadraMed products, and the final results. Submissions are then reviewed by a panel of six healthcare information technology experts who select one winner in each category. In addition to the $5,000 grant, winners receive a commemorative plaque and a synopsis of their achievement will be posted to the QuadraMed website so that other healthcare providers can benefit from what the awardees have accomplished.

Further information about the QUEST Award program and all QuadraMed products and related services is available by visiting the company website at www.quadramed.com.

About QuadraMed Corporation

QuadraMed Corporation advances the success of healthcare organizations through IT solutions that leverage quality care into positive financial outcomes. As evolving reimbursement scenarios challenge healthcare organizations to leverage quality of care into payment, clients committing to QuadraMed's care-based solutions can realize market leading financial performance. Using QuadraMed's end-to-end solutions to optimize the patient experience and leverage quality of care into payment, our clients can receive the proper reimbursement, in the shortest time, at the lowest administrative cost. Behind our products and services is a staff of almost 600 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, as defined in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, by QuadraMed 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 TempusOne are registered trademarks of QuadraMed Corporation. All other trademarks are the property of their respective holders.