Exhibit 10.1

                     SETTLEMENT AGREEMENT AND MUTUAL RELEASE


     This Settlement  Agreement and Mutual Release (the "Agreement") is made and
entered into as of the 16th day of May, 2001, by and between CARECENTRIC,  INC.,
a  Delaware  corporation  formerly  known  as  Simione  Central  Holdings,  Inc.
("CareCentric"),  and the former  shareholders  and  noteholders  of CareCentric
Solutions,  Inc.  identified  in  Exhibit 1  hereto,  by and  through  DANIEL J.
MITCHELL, as their representative and agent (the "CSI Parties").


                              W I T N E S S E T H:

     WHEREAS,  CareCentric,  Simione  Acquisition  Corporation  and  CareCentric
Solutions,  Inc. ("CSI") entered into an Agreement and Plan of Merger dated July
12, 1999 (the "Merger  Agreement")  pursuant to which  CareCentric  acquired the
issued and outstanding capital stock of CSI on August 12, 1999;

     WHEREAS, pursuant to the Merger Agreement and an Indemnity Escrow and Stock
Pledge  Agreement  dated August 12, 1999 (the "Escrow  Agreement")  by and among
CareCentric, the CSI Parties and Mitchell, as representative of the CSI Parties,
CareCentric  deposited into escrow shares of its Series A Preferred  Stock which
were converted into 150,740 shares of its common stock ("Escrow Shares") as sole
recourse for  indemnification  claims and expenses  overages  claims it may have
under the Merger Agreement against the CSI Parties;

     WHEREAS, the Merger Agreement also required CareCentric to issue additional
shares of its common stock if its per share closing price for the fourth quarter
of 2000 was less than a target stock price  specified  in the Merger  Agreement,
and  because  the  target  stock  price  was not  reached  during  that  period,
CareCentric caused 593,688 additional shares of its common stock to be issued to
the CSI Parties on March 20, 2001;

     WHEREAS,  CareCentric  has  asserted  various  indemnification  claims  and
expenses overages claims against the CSI Parties, covering all the Escrow Shares
and 13,216  additional  shares of common stock that otherwise  would be issuable
under the Merger Agreement;

     WHEREAS,  the CSI  Parties  have  disputed  and  contested  all the  claims
asserted by CareCentric;

     WHEREAS,   representatives  of  the  CSI  Parties  and  representatives  of
CareCentric  have  negotiated a settlement  of the  disputes  arising  under the
Merger Agreement on the terms and conditions set forth below;

     WHEREAS,  this Agreement is entered into solely for the purpose of avoiding
time-consuming  and expensive  arbitration or litigation between the parties and
does not and shall not constitute an admission that any conduct of either of the
parties was  wrongful,  negligent or violative  of any  contractual  obligation,
common law or of any corporate law or fiduciary  obligations,  and the existence
of any liability on any such ground is expressly denied by the parties;


<PAGE>

     WHEREAS,  the  parties  hereto  desire  to  settle  all  past  and  present
differences,  disputes,  claims,  debts,  assertions  or  obligations  among and
between them,  known or unknown,  suspected or  unsuspected  under the terms and
conditions set forth below.

     NOW, THEREFORE, in consideration of the mutual obligations set forth herein
and the recitals set forth above, the parties hereto hereby agree as follows:

     1. Release of CareCentric and Covenant Not to Sue

     The CSI Parties for  themselves  and their  respective  heirs and  assigns,
hereby release,  acquit, covenant not to sue, and forever discharge CareCentric,
its   subsidiaries,   their  respective   successors  and  assigns,   and  their
representatives,  servants, agents, attorneys, employees, officers and directors
(collectively,  the "CareCentric  Released  Parties"),  from any and all claims,
demands,  indebtedness,  agreements,  promises,  causes of action,  obligations,
damages  and  liabilities  of any nature  whatsoever,  in law or in  equity,  in
contract,  tort, by statute or otherwise,  whether or not known,  suspected,  or
claimed,  that they ever had, have claimed to have,  now have, or claims to have
whether  known  or  unknown  from  the  beginning  of time  to the  date of this
Agreement,  against  any of the  CareCentric  Released  Parties by reason of any
matter,  cause,  thing,  act or omission of any such released party  whatsoever,
including  but not  limited to claims  arising  out of or relating to the Merger
Agreement;  provided,  however, that nothing contained herein is intended to nor
shall be deemed to release the  CareCentric  Released  Parties  from  performing
their  obligations  under  Section 4.1 of the Merger  Agreement  or as otherwise
provided under this Agreement.

     2. Release of Mitchell and Covenant Not to Sue

     CareCentric  hereby  releases,  acquits,  covenants not to sue, and forever
discharges the CSI Parties, their subsidiaries,  their respective successors and
assigns, and their  representatives,  servants,  agents,  attorneys,  employees,
officers and directors  (collectively,  the "CSI Released Parties") from any and
all  claims,  demands,  indebtedness,  agreements,  promises,  causes of action,
obligations,  damages and  liabilities  of any nature  whatsoever,  in law or in
equity,  in  contract,  tort,  by  statute or  otherwise,  whether or not known,
suspected, or claimed, that it ever had, has claimed to have, now has, or claims
to have whether  known or unknown from the beginning of time to the date of this
Agreement,  against the CSI  Released  Parties by reason of any  matter,  cause,
thing,  act or omission of such  released  party  whatsoever,  including but not
limited to claims arising out of or relating to the Merger Agreement;  provided,
however,  that  nothing  contained  herein is intended to nor shall be deemed to
release the CSI Released  Parties from performing their  obligations  under this
Agreement.

     3. Other Consideration; Cancellation of Remaining Escrow Shares

     (a)  As  soon  as  practicable  after  the  execution  of  this  Agreement,
CareCentric  shall  cause  88,586  shares  (the  "Shares")  of  common  stock of


                                       2
<PAGE>

CareCentric  to  be  released  from  escrow  under  the  Escrow   Agreement  and
distributed  to the CSI  Parties  provided in  Schedule A attached  hereto.  The
remaining 62,154 shares of CareCentric common stock being held in escrow will be
cancelled.  The parties agree that no further  Additional  Shares (as defined in
the Merger Agreement) are required to be issued by CareCentric.

     (b) CareCentric will take all necessary actions,  including the issuance of
opinion  letters,  as  necessary,  to  ensure  that the  Shares  will be  freely
transferable by the CSI Parties  pursuant to Rule 144(k)  promulgated  under the
Securities Act of 1933, as amended.

     (c)  CareCentric  will (i) use its best  efforts  to  ensure  that it shall
remain eligible to register shares of CareCentric  stock held by the CSI Parties
on Form S-3 under the Securities  Act of 1933, as amended,  or any sucessor form
thereof,  (ii) use its best  efforts to list such shares on the NASDAQ  SmallCap
Market  to the  extent  not  already  listed,  and  (iii)  use its  commercially
reasonable  efforts to ensure that it shall remain eligible to maintain approval
for trading of such shares on the NASDAQ SmallCap Market.

     4. Complete Release; Survival Provisions

     Except for the continuing  obligations of the CareCentric  Released Parties
under Section 4.1 of the Merger Agreement and any continuing  obligations of the
CareCentric  Released  Parties  as  provided  under  this  Agreement,  it is the
specific intent and purpose of this Agreement to be a full,  final and complete,
remise, release, discharge,  compromise,  settlement, accord and satisfaction of
all claims  released  hereunder,  including  legal fees  incurred in  connection
therewith,  and CareCentric and the CSI Parties do hereby specifically waive any
claim or right to assert that any cause of action or alleged  cause of action or
claim or demand relating to any such dispute has, through oversight or error, or
intentionally or  unintentionally,  been omitted from this Settlement  Agreement
and Mutual Release.

     5. Governing Law

     The terms of this  Agreement  shall be governed and construed  according to
the laws of the State of Georgia.

     6. Arbitration

     The parties  hereby agree that all disputes  relating to the subject matter
of  this  Agreement,   including  but  not  limited  to  the  interpretation  or
application  of any of the terms hereof,  shall be resolved by arbitration to be
conducted in Atlanta,  Georgia under the auspices, and pursuant to the rules, of
the American Arbitration Association.

     7. Modification

     No provisions of this Agreement may be changed, altered, modified or waived
except in a writing signed by all parties to this Agreement.

                                       3
<PAGE>

     8. No Parol Representations or Agreements

     This  Agreement  constitutes  the  entire  agreement  between  the  parties
relating to settlement of all claims and controversies between the parties. This
Agreement   supersedes  any  and  all  prior  or   contemporaneous   agreements,
representations,  promises or  inducements of any kind relating to settlement of
the claims and controversies between the parties. Each party hereto individually
acknowledges that no agreement,  representation,  promise or inducement relating
to settlement of the claims and controversies  between the parties has been made
or given other than as specifically  set forth in this Agreement,  and that none
of them has  entered  into  this  Agreement  in  reliance  upon  any  agreement,
representation, promise or inducement not set forth herein.

     9. Understanding and Authority

     Each of the parties to this Agreement acknowledges and represents that said
party has read this Agreement in full and understands  and voluntarily  consents
and agrees to each and every provision contained herein. Each party acknowledges
that such party has had a full and unlimited  opportunity to consult with his or
its own counsel prior to executing this Agreement.  Each party acknowledges that
Mitchell has  authority  to execute this  Agreement on behalf of the CSI Parties
pursuant to the terms of the Merger  Agreement.  CareCentric has duly authorized
the  execution  and  delivery  of  this  Agreement  and  the  performance  by it
hereunder.

     10. Multiple Counterparts

     This  Agreement  may be  executed  in  multiple  counterparts  and shall be
effective when all parties have executed  identical  copies  thereof,  provided,
however,  that each party  shall  cooperate  in  providing  the other with fully
executed originals.

     11. Scope of Applicability

     This Agreement and the covenants, representations,  warranties and releases
contained  herein  shall inure to the  benefit of and shall be binding  upon the
parties,  and  their  respective  successors,   assigns,  heirs,  executors  and
administrators.

     12. Severability

     In the event that any  paragraph or provision  of this  Agreement  shall be
determined  by any  court to be  unenforceable  for any  reason,  then only such
paragraph or provision shall be affected, and the remaining terms and conditions
hereof shall remain binding and enforceable.

     13. Preparation of Agreement

     This  Agreement  was  prepared  by all  signatories  hereto  and in case of
ambiguity  shall not be  construed  more  strongly  against one than against the
other.

                                       4
<PAGE>

     14. Headings

     The  section  and  other  headings  contained  in  this  Agreement  are for
reference  purposes  only  and  shall  not in any way  affect  the  meaning  and
interpretation of this Agreement.

     15. Time of Essence

     Time is of the essence of this Settlement Agreement and Mutual Release.



                                       5
<PAGE>


     IN WITNESS  WHEREOF,  the undersigned have executed this Agreement (or have
caused this Agreement to be duly executed) as of the date first set forth above.

Signed, sealed and delivered
in the presence of:

/s/ Cindy L. Barnes
----------------------------          CARECENTRIC, INC.
Unofficial Witness

                                      By: /s/ R. Bruce Dewey
/s/ Cynthia M. Hinesley                  ---------------------------------------
----------------------------             R. Bruce Dewey,
Notary Public                            President and Chief Executive Officer


My Commission Expires:


August 13, 2001
-----------------------------
(Affix Notarial Seal)


Signed, sealed and delivered
in the presence of:

/s/ Linda G. Kenske
----------------------------
Unofficial Witness

                                         /s/ Daniel J. Mitchell
/s/ Coreen M. Wuchenick                  ---------------------------------------
----------------------------             Daniel J. Mitchell
Notary Public                            (as representative of the CSI Parties)


My Commission Expires:

July 3, 2001
-----------------------------
(Affix Notarial Seal)

                                       6
<PAGE>


                                    EXHIBIT 1


American Healthcare Fund II, L.P.
Domain Partners III, L.P.
DP III Associates, L.P.
3i Bioscience Investment Trust plc
Alliance Technology Ventures, L.P.
ATV/GP Parallel Fund, L.P.
ATV/MFJ Parallel Fund, L.P.
Landmark Equity Partners V, L.P.
Landmark Secondary Partners, L.P.
Technology Funding Medical Partners I, L.P.
Technology Funding Partners III, L.P.
Technology Funding Venture Partners V, an aggressive Growth Fund, L.P.
Alpha Capital Fund II, L.P.
Axiom Venture Partners, Limited Partnership


<PAGE>


                                   SCHEDULE A
<TABLE>
<CAPTION>
<S>                                                      <C>                                    <C>
                          A                                               B                                    C
       Name and taxpayer identification number                         Address                   # of Shares for Certificate*
=======================================================  =====================================  ================================
1.   American Healthcare Fund II, L.P.                   c/o  Mr. Daniel J. Mitchell                        10,978
     36-3756168                                          Sequel Venture Partners
                                                         4430 Arapahoe Ave.
                                                         Suite 220
                                                         Boulder, CO  80303

2.   Domain Partners III, L.P.                           c/o  Ms. Kathleen K. Schoemaker                    22,116
     22-3337608                                          Domain Associates, L.O.C.
                                                         One Palmer Square
                                                         Suite 515
                                                         Princeton, NJ  08542

3.   DP III Associates, L.P.                             c/o  Ms. Kathleen K. Schoemaker                      713
     22-3337610                                          Domain Associates, L.O.C.
                                                         One Palmer Square
                                                         Suite 515
                                                         Princeton, NJ  108542

4.   3i Bioscience Investment Trust plc (Foreign         c/o  Mr. Andrew Musson                              7,943
     entity)                                             3i Asset Management Ltd.
                                                         91 Waterloo Road
                                                         London SE1 8XP England

5.   Alliance Technology Ventures, L.P.                  c/o  Alliance Technology                            7,659
     58-2081073                                               Ventures
                                                         8995 Westside Parkway
                                                         Suite 200
                                                         Alpharetta, GA  30004
                                                         Attn:  Connor Seabrook

6.   ATV/GP Parallel Fund, L.P.                          c/o Alliance Technology                             2,152
     58-2081074                                              Ventures
                                                         8995 Westside Parkway
                                                         Suite 200
                                                         Alpharetta, GA 30004
                                                         Attn:  Connor Seabrook

7.   ATV/MFJ Parallel Fund, L.P.                         c/o Alliance Technology                               602
     58-2081075                                              Ventures
                                                         8995 Westside Parkway
                                                         Suite 200
                                                         Alpharetta, GA 30004
                                                         Attn:  Connor Seabrook

</TABLE>


                                      A-1
<PAGE>

<TABLE>
<CAPTION>
<S>                                                      <C>                                    <C>

                          A                                               B                                    C
       Name and taxpayer identification number                         Address                   # of Shares for Certificate*
=======================================================  =====================================  ================================
8.   Landmark Equity Partners V, L.P.                    c/o  Anthony J. Roscigno                            3,311
     06-1431807                                          Landmark Partners, Inc.
                                                         10 Mill Pond Lane
                                                         Simsbury, CT  06070-2429

9.   Landmark Secondary Partners, L.P.                   c/o  Anthony J. Roscigno                            8,294
     06-1519088                                          Landmark Partners, Inc.
                                                         10 Mill Pond Lane
                                                         Simsbury, CT  06070-2429

10.  Technology Funding Medical Partners, I, L.P.        c/o  Ms. Deborah Giambruno                           929
     94-3166762                                          Technology Funding, Inc.
                                                         2000 Alameda de Las Pulgas
                                                         San Mateo, CA  94403

11.  Technology Funding Partners III, L.P.               c/o  Ms. Deborah Giambruno                          3,747
     94-3033783                                          Technology Funding, Inc.
                                                         2000 Alameda de Las Pulgas
                                                         San Mateo, CA  94403

12.  Technology Funding Venture Partners V, An           c/o  Ms. Deborah Giambruno                          2,023
     Aggressive Growth Fund, L.P.                        Technology Funding, Inc.
     94-3094910                                          2000 Alameda de Las Pulgas
                                                         San Mateo, CA  94403

13.  Alpha Capital Fund II, L.P.                         Alpha Capital Partners                              5,885
     31-1432969                                          122 South Michigan Avenue
                                                         Suite 1700
                                                         Chicago, IL  60603
                                                         Attn: Kelly Young, Controller

14.  Axiom Venture Partners, Limited Partnership         c/o  Mr. Samuel McKay                              12,234
     06-1392421                                          Axiom Venture Partners
                                                         185 Asylum Street
                                                         Hartford, CT  06103


</TABLE>

                                      A-2

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