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                      [LETTER HEAD KPMG PEAT MARWICH LLP]

                                                                   Exhiibit 24.1

                         CONSENT OF INDEPENDENT AUDITORS


The Board of Directors
Health Management Systems, Inc.:


We consent to incorporation by reference in the registration forms S-3 (File
Nos. 33-91518 and 333-06769), forms S-8 (File Nos. 33-65560, 33-76770, 33-76638,
33-95326 and 33-33706) and form S-4 (File No. 333-135313) of Health Management
Systems, Inc. of our report dated November 22, 1996 relating to the
consolidated balance sheets of Health Management Systems, Inc. and subsidiaries
as of October 31, 1995 and 1996, and the related consolidated statements of
operations, shareholders' equity, and cash flows for each of the years in the
three - year period ended October 31, 1996, and related schedule, which report
appears herein.

                                           KPMG Peat Marwick LLP              

New York, New York
January 17, 1997