<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS OF MEDAPHIS CORPORATION FOR THE NINE MONTHS ENDED SEPTEMBER
30, 1998 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<CURRENCY>  US DOLLARS
       
                             
<PERIOD-TYPE>                   9-MOS
<FISCAL-YEAR-END>                          DEC-31-1998
<PERIOD-START>                             JAN-01-1998
<PERIOD-END>                               SEP-30-1998
<EXCHANGE-RATE>                                      1
<CASH>                                          10,768
<SECURITIES>                                         0
<RECEIVABLES>                                  128,371
<ALLOWANCES>                                         0
<INVENTORY>                                          0
<CURRENT-ASSETS>                               147,675
<PP&E>                                          58,360
<DEPRECIATION>                                       0
<TOTAL-ASSETS>                                 358,241
<CURRENT-LIABILITIES>                           97,366
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                           787
<OTHER-SE>                                       5,162
<TOTAL-LIABILITY-AND-EQUITY>                   358,241
<SALES>                                              0
<TOTAL-REVENUES>                               328,410
<CGS>                                                0
<TOTAL-COSTS>                                        0
<OTHER-EXPENSES>                               802,062
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                              18,410
<INCOME-PRETAX>                               (492,062)
<INCOME-TAX>                                    62,595
<INCOME-CONTINUING>                           (554,657)
<DISCONTINUED>                                   3,687
<EXTRAORDINARY>                                 (5,557)
<CHANGES>                                            0
<NET-INCOME>                                  (556,527)
<EPS-PRIMARY>                                    (7.28)
<EPS-DILUTED>                                    (7.28)