<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
Consolidated Balance Sheets at April 30, 1996 (unaudited) and 1995 (unaudited)
and the Consolidated Statement of Operations for the six months ended April 30,
1996 (unaudited) and 1995 (unaudited) and is qualified in its entirety by
reference to such financial statements.
</LEGEND>
<CIK> 0000861179
<NAME> HEALTH MANAGEMENT SYSTEMS, INC.
<MULTIPLIER> 1,000
<CURRENCY> U.S. DOLLARS
<PERIOD-TYPE> 6-MOS 6-MOS
<FISCAL-YEAR-END> OCT-31-1996 OCT-31-1995
<PERIOD-START> NOV-01-1995 NOV-01-1994
<PERIOD-END> APR-30-1996 APR-30-1995
<EXCHANGE-RATE> 1 1
<CASH> 6,744 9,233
<SECURITIES> 19,790 16,729
<RECEIVABLES> 43,455 30,446
<ALLOWANCES> (581) (263)
<INVENTORY> 0 0
<CURRENT-ASSETS> 76,876 59,549
<PP&E> 16,767 14,183
<DEPRECIATION> (10,560) (8,227)
<TOTAL-ASSETS> 98,477 74,250
<CURRENT-LIABILITIES> 22,468 17,299
<BONDS> 0 0
<PREFERRED-MANDATORY> 0 0
<PREFERRED> 0 0
<COMMON> 170 106
<OTHER-SE> 0 0
<TOTAL-LIABILITY-AND-EQUITY> 98,477 74,250
<SALES> 50,967 42,026
<TOTAL-REVENUES> 50,967 42,026
<CGS> 0 0
<TOTAL-COSTS> 39,430 33,223
<OTHER-EXPENSES> (287) 674
<LOSS-PROVISION> 285 (6)
<INTEREST-EXPENSE> (479) (352)
<INCOME-PRETAX> 11,714 7,994
<INCOME-TAX> 4,633 3,770
<INCOME-CONTINUING> 7,081 4,224
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 7,081 4,224
<EPS-PRIMARY> 0.39 0.25
<EPS-DILUTED> 0 0