QuadraMed Awarded Comprehensive HIS Contract by Chester River Health System.

Business Editors/Health, Medical & Hi-Tech Writers

RESTON, Va.--(BUSINESS WIRE)--Jan. 28, 2004

QuadraMed(R) Corporation (OTCBB:QMDC.OB) today announced details of the Company's fourth quarter 2003 Affinity(R) HIS sale to the non-profit Chester River Health System (CRHS), an affiliate of The Johns Hopkins School of Medicine, in Chestertown, Maryland.

Under terms of the three-year agreement, QuadraMed will implement Affinity Patient Financial and Clinical systems, to include Computerized Physician Order Entry (CPOE) and Electronic Document Management applications. The centerpiece of CRHS is Chester River Hospital Center, where the fully integrated and secure Affinity central database will be installed. This acute care facility has a total staff of more than 450 employees.

"QuadraMed offers a scalable health information system that enables community hospitals to implement the same best practices as the nation's largest healthcare institutions," said Brian Bowman, Vice President of Finance, Chester River Health System. "We provide a network of community-based health care services, and our patients have come to depend on Chester River for the best care close to home. This calls for a commitment to integrate technology that improves patient outcomes and provides a high degree of patient safety in the process.

"What I found most encouraging and exciting about our decision to choose QuadraMed were the responses from our selection team. The team consisted of 14 department directors/managers from both clinical and non-clinical departments. All members found Affinity to be superior to the other products we considered in functionality, intuitive interface and ease of use. Our first vote was a unanimous decision for QuadraMed."

As healthcare institutions of all sizes respond to the need for greater patient safety and measurably improved outcomes, healthcare information systems that include functionality for an Electronic Health Record (EHR) and CPOE are gaining market share. But many systems fall short of customer expectations. According to QuadraMed Chief Medical Officer Joseph I. Bormel, MD, MPH, "Many prominent industry analysts and professional healthcare associations agree that a high percentage of systems in today's marketplace are simply not sufficiently intuitive.

"Such systems are characterized as cumbersome and of limited value for users, making them difficult to justify. This is, in part, the result of a dependency on obsolete technology employing overly simplistic and clunky interaction models that do not have the capacity or functionality to produce the desired results - speed and ease of use to drive safer patient care. Protracted and costly attempts to implement such systems, as well as total failures, are well documented.

"We believe that by developing our systems using next generation intelligent technology, and by being recognized as an industry leader for successful implementations, QuadraMed has emerged with the competitive edge."

Further information is available about all Affinity HIS and Quantim(R) HIM products and services by visiting the web site at www.quadramed.com.

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 850 professionals whose experience and dedication to service has earned QuadraMed the trust and loyalty of customers at more than 1,900 healthcare provider facilities. To find out more about QuadraMed, visit www.quadramed.com.

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