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Reston, VA — April 16, 2009 —

RESTON, Va.--(BUSINESS WIRE)--Apr. 16, 2009-- QuadraMed Corporation (NASDAQ: QDHC) today announced an agreement with e-MDs, Inc. to enable QuadraMed’s hospital clients to offer an interoperable, state-of-the-art ambulatory electronic health record (EHR) and practice management solution to affiliated physician group practices.

QuadraMed, a leading provider of IT solutions for hospitals, and e-MDs, an industry leader in physician office EHR and practice management (PM) solutions, have entered into an agreement that is intended to help hospitals more easily reach out to independent physicians using information technology. “QuadraMed’s outstanding acute care QCPR program, coupled with their industry-leading EMPI (enterprise master patient index), makes them an ideal inpatient partner for e-MDs,” said Michael Stearns, M.D., president and CEO of e-MDs. “Secure, accurate and updated healthcare information will be available to physicians across the continuum of care. Healthcare communities looking to take advantage of the EHR incentives within the American Recovery and Reinvestment Act (ARRA) and the Stark Antitrust Safe Harbor Act will benefit greatly from the partnership. This initiative from QuadraMed and e-MDs will help these physicians and other healthcare organizations meet their enterprise-wide needs for connected and certified health information technology.”

According to the New England Journal of Medicine, only 17 percent of the country’s physicians have an EHR. “Many of the 83 percent of physicians without EHRs are in small practices that haven’t invested in technology due to cost barriers and lack of interoperability,” said James E. Peebles, interim president and CEO of QuadraMed. “This relationship delivers a cost-effective, interoperable solution suite for the ambulatory market that supports high-quality, cost-effective patient care while strengthening hospital relationships with referring physicians.”

“With our QCPR product, QuadraMed provides a clinician-oriented electronic health record (EHR) and when combined with our advanced EMPI, we can deliver a longitudinal patient record linking the inpatient and the ambulatory patient history to enhance care coordination, quality and patient safety,” stated Peebles. “Our partnership with e-MDs underscores our commitment to delivering solutions that meet our clients’ needs. e-MDs consistently earns top ratings in objective evaluations sponsored by independent third parties such as the American College of Physicians, the American Academy of Family Physicians and the American Academy of Neurology. Together, we will work to ensure that our clients -- within and beyond the four hospital walls -- realize the vision of integrated, collaborative patient care.”

About e-MDs

e-MDs is a leading developer of healthcare software solutions and is headquartered in Austin, Texas. The company, founded in 1996 by a primary care physician, remains physician-managed and actively participates in national health information technology and interoperability efforts. e-MDs Solution Series™, with more than 19,000 users nationwide, is the standard for affordable and integrated EHR and Practice Management software solutions including clinical, financial and document management modules designed to automate medical practice processes and chart management. The product is 2008 CCHIT Certified and designed by physicians aiming to improve care, reduce errors and simplify business so that time spent with patients is time billed and coded properly. With e-MDs, medical practices can visit, code and bill with a single application. For more information, please visit e-MDs.

About QuadraMed Corporation

QuadraMed Corporation advances the success of healthcare organizations through IT solutions that leverage quality care into positive financial outcomes. QuadraMed provides real world solutions that help healthcare professionals deliver outstanding patient care efficiently and cost-effectively. Behind the company's products and services is a staff of 600 professionals whose experience and dedication have earned QuadraMed the trust and loyalty of clients at over 2,000 healthcare provider facilities. For more information about QuadraMed, visit http://www.quadramed.com/

Cautionary Statement on Risks Associated with QuadraMed Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 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.

Source: QuadraMed Corporation

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