Business Editors and Health/Medical Writers

SAN RAFAEL, Calif.--(BW HealthWire)--Oct. 25, 2001

QuadraMed Corporation (Nasdaq:QMDC) announced today that Rice Memorial Hospital in Willmar, Minn., has selected the QuadraMed Affinity(R) healthcare information system to manage its clinical and financial functions. The three-year contract, which includes the implementation of a full complement of Affinity modules, represents a $1.9 million investment for the hospital.

QuadraMed Affinity is a web-enabled healthcare information system that seamlessly integrates clinical, financial, and patient information systems in single- or multi-facility hospitals. Distinguished by its single patient-centered database, Affinity allows healthcare facilities to improve patient care with a wide variety of tools geared towards effectively managing and using patient data.

"Affinity's functionality and integration capabilities, considering costs, made it by far the best choice," said Leroy Meyering, Rice Memorial's chief financial office and associate administrator. "After viewing the Affinity demonstrations and, more importantly, seeing it in operation at another hospital, our users are confident that QuadraMed Affinity will deliver the advanced patient management and clinical functionality that they need to achieve our strategic goals and objectives. We need a system that will reduce the paperwork in our clinical areas as well as reduce the need for additional FTEs (full-time employees), especially in the nursing area."

"We researched the market carefully and QuadraMed Affinity products had all the components we needed: the ability to integrate with our existing applications, a patient-centered repository, and most importantly, an emphasis on user-friendly clinical functionality," added Sharon Schmiesing, Rice's information systems director. "Affinity was the definitive and unanimous choice of our users and Selection Committee."

About Rice Memorial Hospital -- Over 65 Years of Patient Care

At Rice Memorial Hospital caring for people has been our specialty for over sixty-five years. As the regional referral center in south central Minnesota, Rice is licensed for 136 inpatient beds, operates an 85 bed nursing home, maintains hospice satellites in 9 rural localities, and provides lab, radiology, oncology, home care and outpatient rehabilitation services to over fifty hospitals and clinics in a 14 county area surrounding Willmar. Rice continues to remain in the forefront of health care delivery by continually adding new technology and providing our staff with the education and training to help them in their careers. Our team of over 900 professionals knows that technical care, such as medication, tests and therapy, is only the beginning. Throughout Rice, people in each of our 55 departments understand that addressing the emotional needs and the dignity of our patients and their loved ones is just as important to the total health care experience as technical expertise. To find out more about Rice Memorial Hospital, please visit www.ricehospital.com.

About QuadraMed Corporation

QuadraMed is dedicated to developing information technology and providing consulting services that help healthcare professionals deliver outstanding patient care with optimum efficiency. Offering real-world solutions for every aspect of acute care information management, QuadraMed has four main product lines: Affinity(R) Healthcare Information System, Quantim(R) Health Information Management Software and Services, Complysource(R) Compliance Solutions, and Chancellor(TM) Financial Products and Services. Behind our products and services are nearly 1000 professionals whose healthcare experience has earned QuadraMed the trust and loyalty of its many customers. To find out more about QuadraMed, visit www.quadramed.com.

Note to Editors: QuadraMed Affinity, Quantim, Complysource, and Chancellor are registered trademarks of QuadraMed Corporation. All other trademarks and registered trademarks are the properties of their respective holders.