QD Quadramed Corp.

QuadraMed(R) Corporation (Amex:QD) today announced that the New Jersey Department of Health and Senior Services has awarded the company a contract for Data Intermediary services. This is the second consecutive data services contract the Department has awarded to QuadraMed through competitive bids. Under terms of the agreement, QuadraMed will assist the Department to transition from a PC-based to a Web-based system, and manage the collection of Inpatient, Same Day Surgery and Emergency Department Uniform Bill (administrative) data from all acute care hospitals statewide. The Department funds system development and implementation costs, while individual hospitals pay a per record fee for transmission and processing. After the data are collected, the Department and other entities will analyze it to establish and verify healthcare trends in such areas as patient demographics and quality of care. The centralized Web-based data collection system is a significant improvement compared to the Department's previous system, which required individual computers to be located in each hospital, with the facility responsible for database maintenance. Cost benefits of the new system include an anticipated 20 percent reduction in per record fees and an anticipated overall 30 percent reduction in fees charged to hospitals. The new system is expected to improve processing time by 40 percent, and utilizes strict (ANSI 837 and UB04) data reporting standards. QuadraMed provides healthcare IT solutions with the flexibility to ensure both public and private sector clients can cost-effectively achieve their individual information management goals. This capability plays an important role in all three of QuadraMed's strategic initiatives: leveraging quality care into reimbursement, interoperability for the connected healthcare community, and quality measurement. For information about all QuadraMed products and services, visit www.quadramed.com or call 800-393-0278. 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 is a registered trademark of QuadraMed Corporation. All other trademarks are the property of their respective holders.