<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS OF MEDAPHIS CORPORATION FOR THE THREE MONTHS ENDED MARCH
31, 1997, AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS.
</LEGEND>
<MULTIPLIER> 1
<CURRENCY> U.S. DOLLARS
       
                             
<PERIOD-TYPE>                   3-MOS
<FISCAL-YEAR-END>                          DEC-31-1997
<PERIOD-START>                             JAN-01-1997
<PERIOD-END>                               MAR-31-1997
<EXCHANGE-RATE>                                      1
<CASH>                                          10,174
<SECURITIES>                                         0
<RECEIVABLES>                                  176,745
<ALLOWANCES>                                         0
<INVENTORY>                                          0
<CURRENT-ASSETS>                               256,857
<PP&E>                                          92,798
<DEPRECIATION>                                       0
<TOTAL-ASSETS>                                 930,678
<CURRENT-LIABILITIES>                          246,449
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                           724
<OTHER-SE>                                     509,178
<TOTAL-LIABILITY-AND-EQUITY>                   930,678
<SALES>                                              0
<TOTAL-REVENUES>                               147,546
<CGS>                                                0
<TOTAL-COSTS>                                        0
<OTHER-EXPENSES>                               146,919
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                               6,115
<INCOME-PRETAX>                                 (5,488)
<INCOME-TAX>                                    (2,424)
<INCOME-CONTINUING>                             (3,064)
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                    (3,064)
<EPS-PRIMARY>                                    (0.04)
<EPS-DILUTED>                                    (0.04)