<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED BALANCE SHEETS AT APRIL 30, 1998 (UNAUDITED) AND 1997 (UNAUDITED)
AND THE CONSOLIDATED STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED APRIL 30,
1998 (UNAUDITED) AND 1997 (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-31-1998 OCT-31-1997
<PERIOD-START> NOV-01-1997 NOV-01-1996
<PERIOD-END> APR-30-1998 APR-30-1997
<EXCHANGE-RATE> 1 1
<CASH> 17,713 18,462
<SECURITIES> 19,568 17,588
<RECEIVABLES> 46,058 41,670
<ALLOWANCES> (1,194) (1,556)
<INVENTORY> 0 0
<CURRENT-ASSETS> 86,085 84,728
<PP&E> 25,776 23,620
<DEPRECIATION> (18,605) (15,912)
<TOTAL-ASSETS> 117,581 109,949
<CURRENT-LIABILITIES> 28,159 26,418
<BONDS> 0 0
<PREFERRED-MANDATORY> 0 0
<PREFERRED> 0 0
<COMMON> 181 177
<OTHER-SE> 86,007 81,344
<TOTAL-LIABILITY-AND-EQUITY> 112,581 109,949
<SALES> 50,673 42,380
<TOTAL-REVENUES> 50,673 42,380
<CGS> 47,035 41,264
<TOTAL-COSTS> 0 0
<OTHER-EXPENSES> 0 0
<LOSS-PROVISION> (14) (114)
<INTEREST-EXPENSE> 0 0
<INCOME-PRETAX> 3,531 1,756
<INCOME-TAX> 1,474 (328)
<INCOME-CONTINUING> 3,531 1,756
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 2,057 2,084
<EPS-PRIMARY> 0.07 0.12
<EPS-DILUTED> 0.07 0.12