<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMAITON EXTRACTED FROM THE
FINANCIAL STATEMENTS OF MEDAPHIS CORPORATION FOR THE THREE MONTH PERIOD ENDED
MARCH 31, 1998 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL 
STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
       
                             
<PERIOD-TYPE>                   3-MOS
<FISCAL-YEAR-END>                          DEC-31-1998
<PERIOD-START>                             JAN-01-1998
<PERIOD-END>                               MAR-31-1998
<CASH>                                           7,125
<SECURITIES>                                         0
<RECEIVABLES>                                  178,483
<ALLOWANCES>                                         0
<INVENTORY>                                          0
<CURRENT-ASSETS>                               207,409
<PP&E>                                          80,346
<DEPRECIATION>                                       0
<TOTAL-ASSETS>                                 880,309
<CURRENT-LIABILITIES>                          108,723
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                           740
<OTHER-SE>                                     494,018
<TOTAL-LIABILITY-AND-EQUITY>                   880,309
<SALES>                                              0
<TOTAL-REVENUES>                               140,340
<CGS>                                                0
<TOTAL-COSTS>                                        0
<OTHER-EXPENSES>                               142,520
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                               6,375
<INCOME-PRETAX>                                 (8,555)
<INCOME-TAX>                                    (3,405)
<INCOME-CONTINUING>                             (5,150)
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                 (5,557)
<CHANGES>                                            0
<NET-INCOME>                                   (10,707)
<EPS-PRIMARY>                                    (0.15)
<EPS-DILUTED>                                    (0.15)