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                                                                  EXHIBIT 10.26


                               THIRD AMENDMENT
                                      TO
                             MEDAPHIS CORPORATION
                       NON-QUALIFIED STOCK OPTION PLAN
                         FOR NON-EXECUTIVE EMPLOYEES


     THIS THIRD AMENDMENT (the "Third Amendment") is made effective as of the
21st day of May, 1997, by MEDAPHIS CORPORATION, a Delaware corporation (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 Non-Executive Employees (the "Plan");

     WHEREAS, the Compensation Committee of the Board of Directors of the
Company (the "Board") and the Board have previously adopted a First Amendment
to the Plan, providing for an increase in the number of shares reserved for
issuance pursuant to the Plan to 1,025,000 shares from 925,000 shares;

     WHEREAS, the Compensation Committee of the Board have previously adopted a
Second Amendment to the Plan, providing for an increase in the number of shares
reserved for issuance pursuant to the Plan to 1,438,925 from 1,025,000; and

     WHEREAS, the Compensation Committee and the Board have approved an
increase in the number of shares reserved for issuance pursuant to the Plan to
1,510,200 from 1,438,925 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 1,510,200 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."

     FURTHER, except as specifically amended by this Third Amendment, the Plan
shall remain in full force and effect as prior to this Third Amendment.
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     IN WITNESS WHEREOF, the Company has caused this Third Amendment to be
effective as of the day and year first above written.


                                  MEDAPHIS CORPORATION


                                        
                                  By: /s/ D. McDowell
                                     ----------------------------------------
                                  Name:  David E. McDowell
                                       --------------------------------------
                                  Title: Chairman and Chief Executive Officer
                                         ------------------------------------

ATTEST:


By: /s/ Peggy Sherman
   -----------------------
Name: Peggy B. Sherman
     ---------------------
Title: Assistant Secretary
      --------------------



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