<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED BALANCE SHEETS AT JULY 31, 1998 (UNAUDITED) AND 1997 (UNAUDITED)
AND THE CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE NINE MONTHS ENDED JULY 31,
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> 9-MOS 9-MOS
<FISCAL-YEAR-END> OCT-31-1998 OCT-31-1997
<PERIOD-START> NOV-01-1997 NOV-01-1996
<PERIOD-END> JUL-31-1998 JUL-31-1997
<EXCHANGE-RATE> 1 1
<CASH> 12,938 20,892
<SECURITIES> 19,462 18,109
<RECEIVABLES> 48,119 38,112
<ALLOWANCES> 1,273 1,430
<INVENTORY> 0 0
<CURRENT-ASSETS> 85,613 79,655
<PP&E> 26,136 24,054
<DEPRECIATION> 19,257 16,617
<TOTAL-ASSETS> 112,372 107,798
<CURRENT-LIABILITIES> 28,477 26,525
<BONDS> 0 0
<PREFERRED-MANDATORY> 0 0
<PREFERRED> 0 0
<COMMON> 183 177
<OTHER-SE> 82,310 79,352
<TOTAL-LIABILITY-AND-EQUITY> 112,372 107,793
<SALES> 77,412 64,403
<TOTAL-REVENUES> 77,412 64,483
<CGS> 77,301 64,327
<TOTAL-COSTS> 0 0
<OTHER-EXPENSES> 0 0
<LOSS-PROVISION> 86 184
<INTEREST-EXPENSE> 0 0
<INCOME-PRETAX> 5,912 721
<INCOME-TAX> 2,464 (760)
<INCOME-CONTINUING> 3,448 (641)
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 3,448 1,481
<EPS-PRIMARY> 0.20 0.08
<EPS-DILUTED> 0.19 0.08