<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONDENSED CONSOLIDATED BALANCE SHEETS AT JANUARY 31, 1999 (UNAUDITED) AND 1998
(UNAUDITED) AND THE INTERIM CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS FOR
THE THREE MONTHS ENDED JANUARY 31, 1999 (UNAUDITED) AND 1998 (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>                   3-MOS                   3-MOS
<FISCAL-YEAR-END>                          OCT-31-1999             OCT-31-1998
<PERIOD-START>                             NOV-01-1998             NOV-01-1997
<PERIOD-END>                               JAN-31-1999             JAN-31-1998
<EXCHANGE-RATE>                                      1                       1
<CASH>                                           9,030                  15,790
<SECURITIES>                                    14,864                  19,347
<RECEIVABLES>                                   61,360                  43,493
<ALLOWANCES>                                     1,898                   1,270
<INVENTORY>                                          0                       0
<CURRENT-ASSETS>                                88,296                  80,625
<PP&E>                                          26,831                  25,542
<DEPRECIATION>                                  20,548                  17,969
<TOTAL-ASSETS>                                 116,362                 107,472
<CURRENT-LIABILITIES>                           29,663                  26,509
<BONDS>                                              0                       0
<PREFERRED-MANDATORY>                                0                       0
<PREFERRED>                                          0                       0
<COMMON>                                           184                     178
<OTHER-SE>                                      85,085                  79,163
<TOTAL-LIABILITY-AND-EQUITY>                   116,362                 107,472
<SALES>                                         27,369                  25,037
<TOTAL-REVENUES>                                27,369                  25,037
<CGS>                                                0                       0
<TOTAL-COSTS>                                   24,754                  23,504
<OTHER-EXPENSES>                                     0                       0
<LOSS-PROVISION>                                   248                     (2)
<INTEREST-EXPENSE>                                  29                      43
<INCOME-PRETAX>                                  2,415                   1,010
<INCOME-TAX>                                     1,117                     591
<INCOME-CONTINUING>                              2,415                   1,010
<DISCONTINUED>                                       0                       0
<EXTRAORDINARY>                                      0                       0
<CHANGES>                                            0                       0
<NET-INCOME>                                     1,606                     879
<EPS-PRIMARY>                                     0.09                    0.05
<EPS-DILUTED>                                     0.09                    0.05