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                                  EXHIBIT 99.1

    THIRD AMENDMENT TO MEDAPHIS CORPORATION NON-QUALIFIED STOCK OPTION PLAN
                      FOR EMPLOYEES OF ACQUIRED COMPANIES
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                    THIRD AMENDMENT TO MEDAPHIS CORPORATION
                        NON-QUALIFIED STOCK OPTION PLAN
                      FOR EMPLOYEES OF ACQUIRED COMPANIES


   THIS THIRD AMENDMENT is made the 26th day of October, 1995, by MEDAPHIS
CORPORATION, a corporation organized and doing business under the laws of the
State of Delaware (the "Company").


                              W I T N E S S E T H:


   WHEREAS, the Company has previously adopted the Medaphis Corporation
Non-Qualified Stock Option Plan for Employees of Acquired Companies (the
"Plan"); and

   WHEREAS, the Board of Directors of the Company has approved an increase in
the number of shares reserved for issuance pursuant to the Plan from 1,600,000
shares to 2,100,000 shares.

   NOW THEREFORE, Section 3 of the Plan is hereby amended by deleting Section 3
of the Plan in its entirety and replacing it with the following:

                                  "Section  3.

                         SHARES RESERVED UNDER THE PLAN

   There shall be 2,100,000 shares of Stock reserved for issuance under
   this Plan, and such shares of Stock shall be reserved to the extent that the
   Company deems appropriate from authorized but unissued shares of Stock and
   from shares of Stock which have been repurchased by the Company. Furthermore,
   any shares of Stock subject to an Option that remain unissued after the
   cancellation or expiration of such Option thereafter shall again become
   available for use under this Plan."
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   FURTHER, except as specifically amended by this Third Amendment, the Plan
shall remain in full force and effect as prior to this Third Amendment

   IN WITNESS WHEREOF, the Company has caused this Third Amendment to be 
executed on the day and year first above written.

                                      
                                                   MEDAPHIS CORPORATION      
                                                                             
                                                                             
                                                   By: /s/ Michael R. Cote
                                                       -----------------------
                                                   Title: SVP and CFO
                                                          --------------------


ATTEST:


By: /s/ Peggy B. Sherman
    -----------------------------------
Title: VP and Associate General Counsel
       --------------------------------

       [CORPORATE SEAL]