QuadraMed Smart Identity Management and HIM Solutions Earn Top Rankings in 2009 Best in KLAS Report

QuadraMed Enterprise Master Person Index and Quantim Coding advance to first and
second places in their market segments

RESTON, Va.--(BUSINESS WIRE)--QuadraMed^® Corporation (NASDAQ:QDHC), a leading provider of healthcare information technologies and services that help turn quality care into positive financial outcomes, today announced that QuadraMed Smart Identity Management and Health Information Management solutions earned high ratings in the 2009 Top 20 Best in KLAS Awards Report released last month. QuadraMed Enterprise Master Person Index (EMPI) and Quantim^® Coding were rated number one and number two in the EMPI and medical records coding software categories, respectively. This study is conducted by KLAS Enterprises, which independently monitors vendor performance through the active participation of thousands of healthcare organizations.

“Our outstanding KLAS rankings affirm QuadraMed's leadership position in the marketplace for these solutions and also demonstrates QuadraMed’s commitment to providing quality products and services that meet our clients’ changing needs”

QuadraMed EMPI enables multi-facility healthcare organizations to identify and resolve duplicate patient records stored within their information systems. Quantim Coding uses knowledge-based coding methodologies to provide the critical clinical, financial and regulatory information coders need to ensure proper reimbursement while meeting today’s complex and evolving compliance requirements. KLAS has consistently ranked these QuadraMed solutions in the top three positions of their categories since 2005, with EMPI earning the number one position for four of the past five years.

The annual KLAS report ranks vendors according to performance scores, which are based on feedback from thousands of healthcare providers across North America. It recognizes vendors excelling in their respective market segments, and their leadership in working with customers to resolve issues and match expectations to reality.

“Our outstanding KLAS rankings affirm QuadraMed's leadership position in the marketplace for these solutions and also demonstrates QuadraMed’s commitment to providing quality products and services that meet our clients’ changing needs," said Duncan W. James, QuadraMed’s President and CEO. “In order to meet rigorous new requirements and qualify for ARRA stimulus incentives, hospitals today are looking to healthcare technology firms to provide solutions that improve quality of care, patient safety, and ensure financial viability. Proven tools like EMPI and Quantim Coding are having a major impact in helping these organizations maintain a single, accurate, longitudinal record for patients and ensure coding compliance for appropriate reimbursement.”

About KLAS

KLAS is a research firm specializing in monitoring and reporting the performance of healthcare vendors. KLAS’ mission is to improve delivery by independently measuring vendor performance for the benefit of healthcare provider partners, consultants, investors, and vendors. Working together with executives from over 4,500 hospitals and over 2,500 clinics, KLAS delivers timely reports, trends, and statistics, which provide a solid overview of vendor performance in the industry. KLAS measures performance of software, professional services, and medical equipment vendors. For more information, go to www.KLASresearch.com, email [e-mail].

About QuadraMed Corporation

QuadraMed^® – (NASDAQ: QDHC) is a leading provider of healthcare technologies and services that help turn quality care into positive financial outcomes. QuadraMed provides innovative solutions that streamline processes, ensure compliance and help healthcare professionals deliver quality patient care. 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 that are subject to risks and uncertainties. The words “believe,” “expect,” “target,” “goal,” “project,” “anticipate,” “predict,” “intend,” “plan,” “estimate,” “may,” “will,” “should,” “could” and similar expressions and their negatives are intended to identify such statements. Forward-looking statements are not guarantees of future performance, anticipated trends or growth in businesses, or other characterizations of future events or circumstances 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. You should not place undue reliance on these forward-looking statements. Our actual results could differ materially from those anticipated in these forward-looking statements for many reasons, including the risks faced by QuadraMed described in documents filed with the Securities and Exchange Commission ("SEC") from time to time. 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.