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                                                                   EXHIBIT 10.11

                              EMPLOYMENT AGREEMENT

         This Employment Agreement (the "Agreement") is made and entered into
this 30th day of September, 1997, by and between MEDAPHIS CORPORATION, a
Delaware corporation (the "Company"), and MARK COLONNESE, a resident of the
State of North Carolina (the "Employee").

                       Statement of Background Information

         The Company renders to hospitals, physicians, and/or other healthcare
organizations and providers: (a) billing services, accounts receivable
management services, collection services, electronic claims services, financial
management services, and practice and facilities management services; (b)
eligibility verification and certification for Medicaid, Medicare and other
healthcare assistance programs; (c) filing and other medical claims
securitization services; (d) medical coverage information services; and (e)
medical and insurance claims monitoring and tracking services (collectively the
"Processing Business").

         The Company also: (a) develops, markets and licenses to hospitals,
integrated healthcare delivery systems, and other healthcare providers and other
end users (collectively "Providers"), (i) strategic, operational and financial
information systems and services and decision support tools for healthcare
providers, (ii) software systems which provide claims and reimbursement services
and electronic claims processing, and (iii) software applications which assist
Providers with automated scheduling and resource management (the items discussed
in Sections (a)(i), (a)(ii) and (a)(iii) of this paragraph are referred to as
"Systems"), which Systems include, but are not limited to, nurse scheduling and
management information systems, operating room patient scheduling and surgery
information systems, enterprise wide patient scheduling and resource management
systems, enterprise-wide employee scheduling and management information systems
and related software interfaces to other information systems; and (b) provides
to Providers installation and support services related to the Company's Systems
(the "Systems Business").

         The Company also renders professional services with respect to the
development of computer software, algorithms, design, documentation, and related
materials, and the development, design, deployment, and operation of local and
wide area computer networks, all in conjunction with the sale, design,
deployment, operation and maintenance of custom computer processing systems for
improvement of operational efficiency or functionality through the use of image
storage and processing, work flow technology, 


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optical character recognition or other related technologies (the "System
Integration Business") (the Processing Business, the Systems Business, the
Systems Integration

Business and any other distinct business segment in which the Company engages
during Employee's employment are collectively referred to herein as the
"Business").

         In consideration of the mutual covenants, promises and conditions set
forth in this Agreement, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties agree as
follows:

1.       Employment. The Company hereby employs Employee and Employee hereby
         accepts such employment upon the terms and conditions set forth in this
         Agreement.

2.       Duties of Employee. Employee's title will be Controller of Medaphis
         Corporation and Employee will report directly to the Chief Financial
         Officer of the Company. Employee agrees to perform and discharge such
         other duties as may be assigned to Employee from time to time by the
         Company to the reasonable satisfaction of the Company, and such duties
         will be consistent with those duties regularly and customarily assigned
         by the Company to the position of Controller of Medaphis Corporation.
         Employee also agrees to comply with all of the Company's policies,
         standards and regulations as promulgated by the officers of the
         Company, and to follow the instructions and directives of Employee's
         superiors within the Company. Employee will devote Employee's full
         professional and business-related time, skills and best efforts to such
         duties and will not, during the term of this Agreement, be engaged
         (whether or not during normal business hours) in any other business or
         professional activity, whether or not such activity is pursued for
         gain, profit or other pecuniary advantage, without the prior written
         consent of the Chief Financial Officer of the Company, which consent
         will not be unreasonably withheld. This Section will not be construed
         to prevent Employee from (a) investing personal assets in businesses
         which do not compete with the Company in such form or manner that will
         not require any services on the part of Employee in the operation or
         the affairs of the companies in which such investments are made and in
         which Employee's participation is solely that of an investor; (b)
         purchasing securities in any corporation whose securities are listed on
         a national securities exchange or regularly traded in the
         over-the-counter market, provided that Employee at no time owns,
         directly or indirectly, in excess of one percent (1%) of the
         outstanding stock of any class of any such corporation engaged in a
         business competitive with that of the Company; or (c) participating in
         conferences, preparing and publishing papers or books or teaching, so
         long as the Chief Financial Officer of the Company 


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         approves such participation, preparation and publication or teaching
         prior to Employee's engaging therein.

3.       Term. The term of this Agreement will be for an eighteen (18) month
         period of time, commencing as of September 30, 1997 and expiring on
         March 31, a1999, subject to earlier termination as provided for in
         Section 4 of this Agreement. 

4.       Termination.

         (a) Termination by Company for Cause. Notwithstanding anything
         contained in Section 3 to the contrary, the Company may terminate this
         Agreement and all of its obligations hereunder immediately if any of
         the following events occur:

                  (i) Employee materially breaches any of the terms or
                  conditions set forth in this Agreement and fails to cure such
                  breach within ten (10) days after Employee's receipt from the
                  Company of written notice of such breach (notwithstanding the
                  foregoing, no cure period shall be applicable to breaches by
                  Employee of Sections 6, 7 or 8 of this Agreement);

                  (ii) Employee commits any other act materially detrimental to
                  the business or reputation of the Company;

                  (iii) Employee commits or is convicted of any crime involving
                  fraud, deceit or moral turpitude; or

                  (iv) Employee dies or becomes mentally or physically
                  incapacitated or disabled so as to be unable to perform
                  Employee's duties under this Agreement. Without limiting the
                  generality of the foregoing, Employee's inability adequately
                  to perform services under this Agreement for a period of sixty
                  (60) consecutive days will be conclusive evidence of such
                  mental or physical incapacity or disability, unless such
                  inability adequately to perform services under this Agreement
                  is pursuant to a mental or physical incapacity or disability
                  covered by the Family Medical Leave Act, in which case such
                  sixty (60)-day period shall be extended to a one hundred and
                  twenty (120)-day period.

         (b) Termination by Company Without Cause. Notwithstanding anything
         contained in Section 3 to the contrary, the Company may terminate
         Employee's employment pursuant to this Agreement without cause upon at
         least thirty (30) days' prior written notice to Employee. In the event
         Employee's employment with the Company is terminated by the Company
         without cause, the Company shall remain subject to its 


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         obligations hereunder as if Employee remained employed hereunder for
         the balance of the term hereof, as provided in Section 3 above.

5.  Compensation and Benefits.

         a) Annual Salary. During the term of this Agreement and for all
         services rendered by Employee under this Agreement, the Company will
         pay Employee a base salary of One Hundred Seventy Five Thousand Dollars
         ($175,000.00) per annum to be paid in accordance with the Company's
         regular payroll practices, provided, however, that such payments shall
         be made no less frequently than in equal monthly installments. Such
         annual salary will be subject to adjustments by any increases given in
         the normal course of business.

         b) Incentive Compensation. Employee shall be eligible to participate in
         the 1997 Medaphis Corporation and its Subsidiary Corporations Incentive
         Compensation Plan (and any comparable future incentive compensation
         plans during the term of this Agreement) at a participation category of
         up to 50% of Employee's base salary, payable at the discretion of the
         Board of Directors of the Company.

         c) Stock Options. As soon as reasonably practicable after the signing
         of this Agreement, and subject to the approval of the Compensation
         Committee of the Board of Directors of Medaphis Corporation, the
         Company will cause Medaphis to issue to Employee, effective as of the
         date approved by the Compensation Committee of the Board of Directors
         of Medaphis Corporation, options to purchase Fifty Thousand (50,000)
         shares of Medaphis Common Stock pursuant to the terms and conditions of
         the Amended and Restated Medaphis Corporation Non-Qualified Stock
         Option Plan ("Stock Option Plan"), as amended. Such options will vest
         at the rate of thirty-three and one-third percent (33.33%) per year for
         a three-year period beginning on the starting date of this Agreement,
         subject to the terms and conditions of the Stock Option Plan. Such
         options shall vest in full immediately upon the occurrence of certain
         change in control events outlined in the Stock Option Plan. Employee
         shall be considered for additional grants of options to purchase shares
         of Medaphis common stock in a manner which is consistent with other
         senior officers of the Company. Except as expressly set forth herein,
         nothing in this Agreement shall give rise to a contractual right to
         Employee to receive grants of additional stock options of Medaphis.
         Further, Medaphis has no obligation to Employee to create parity with
         any other Medaphis executives with respect to any options granted to
         such other executives.

         d) Other Benefits. Employee will be entitled to such fringe benefits as
         may be provided from time-to-time by the Company to its employees,
         including, but not 



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         limited to, financial counseling services, group health insurance, life
         and disability insurance, vacations and any other fringe benefits now
         or hereafter provided by the Company to its employees, if and when
         Employee meets the eligibility requirements for any such benefit. The
         Company reserves the right to change or discontinue any employee
         benefit plans or programs now being offered to its employees; provided,
         however, that all benefits provided for employees of the same position
         and status as Employee will be provided to Employee on an equal basis.

         e) Business Expenses. Employee will be reimbursed for all reasonable
         expenses incurred in the discharge of Employee's duties under this
         Agreement pursuant to the Company's standard reimbursement
         policies.

         f) Withholding. The Company will deduct and withhold from the payments
         made to Employee under this Agreement, state and federal income taxes,
         FICA and other amounts normally withheld from compensation due
         employees.

6.       Non-Disclosure of Proprietary Information. Employee recognizes and
         acknowledges that the Trade Secrets (as defined below) and Confidential
         Information (as defined below) of the Company and its affiliates and
         all physical embodiments thereof (as they may exist from time-to-time,
         collectively, the "Proprietary Information") are valuable, special and
         unique assets of the Company's and its affiliates' businesses. Employee
         further acknowledges that access to such Proprietary Information is
         essential to the performance of Employee's duties under this Agreement.
         Therefore, in order to obtain access to such Proprietary Information,
         Employee agrees that, except in connection with performing duties
         assigned to him by the Company, Employee shall hold in confidence all
         Proprietary Information and will not reproduce, use, distribute,
         disclose, publish or otherwise disseminate any Proprietary Information,
         in whole or in part, and will take no action causing, or fail to take
         any action necessary to prevent causing, any Proprietary Information to
         lose its character as Proprietary Information, nor will Employee make
         use of any such information for Employee's own purposes or for the
         benefit of any person, firm, corporation, association or other entity
         (except the Company) under any circumstances.

         For purposes of this Agreement, the term "Trade Secrets" means
         information, without regard to form, including, but not limited to, any
         technical or nontechnical data, formula, pattern, compilation, program,
         device, method, technique, drawing, process, financial data, financial
         plan, product plan, list of actual or potential customers or suppliers,
         or other information similar to any of the foregoing, which is not
         commonly known by or available to the public and (i) derives economic
         value, actual or potential, from not being generally known to, and not
         being readily ascertainable by proper means by, other persons who can
         derive economic value from 


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         its disclosure or use, and (ii) is the subject of efforts that are
         reasonable under the circumstances to maintain its secrecy. For
         purposes of this Agreement, the term "Trade Secrets" does not include
         information that Employee can show by competent proof (i) was known to
         Employee and reduced to writing prior to disclosure by the Company (but
         only if Employee promptly notifies the Company of Employee's prior
         knowledge); (ii) was generally known to the public at the time the
         Company disclosed the information to Employee; (iii) became generally
         known to the public after disclosure by the Company through no act or
         omission of Employee; or (iv) was disclosed to Employee by a third
         party having a bona fide right both to possess the information and to
         disclose the information to Employee. The term "Confidential
         Information" means any data or information of the Company, other than
         trade secrets, which is valuable to the Company and not generally known
         to competitors of the Company. The provisions of this Section 6 will
         apply to Trade Secrets for so long as such information remains a trade
         secret and to Confidential Information during Employee's employment
         with the Company and for a period of two (2) years following any
         termination of Employee's employment with the Company for whatever
         reason.

7.A.     Non-Competition Covenant. During Employee's employment by the Company
         Employee will be a member of the Company's executive management team.
         Employee agrees that during his employment and for a period of two (2)
         years following any termination of Employee's employment for whatever
         reason, Employee will not, directly or indirectly, on Employee's own
         behalf or in the service of or on behalf of any other individual or
         entity, compete with the Company within the Geographical Area (as
         hereinafter defined). The term "compete" means to engage in, have any
         equity or profit interest in, make any loan to or for the benefit of,
         or render services of any marketing, management, sales, administrative,
         supervisory or consulting nature, directly or indirectly, on Employee's
         own behalf or in the service of or on behalf of any other individual or
         entity, either as a proprietor, employee, agent, independent
         contractor, consultant, director, officer, partner or stockholder
         (other than a stockholder of a corporation listed on a national
         securities exchange or whose stock is regularly traded in the
         over-the-counter market, provided that Employee at no time owns,
         directly or indirectly, in excess of one percent (1%) of the
         outstanding stock of any class of any such corporation) any business
         which provides Business products or services, provided that nothing in
         this Agreement will preclude Employee from rendering legal services in
         the role of outside counsel on behalf of any entity, including those
         entities that compete with the Company, following the termination of
         his employment with the Company. For purposes of this Agreement, the
         term "Geographical Area" means the territory located within a
         seventy-five (75) mile radius of any Company facility for which
         Employee exercised managerial control or provided legal services on
         behalf of the Company.


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  B.     Non-Solicitation of Clients Covenant. Employee agrees that during
         Employee's employment by the Company and for a period of two (2) years
         following the termination of Employee's employment for whatever reason,
         Employee will not, directly or indirectly, on Employee's own behalf or
         in the service of or on behalf of any other individual or entity,
         divert, solicit or attempt to divert or solicit any individual or
         entity (i) who is a client of the Company at any time during the six
         (6)-month period prior to Employee's termination of employment with the
         Company ("Client"), or was actively sought by the Company as a
         prospective client, and (ii) with whom Employee had material contact
         while employed by the Company, to provide Business services or products
         to such Clients or prospects.

 C.      Construction. The parties hereto agree that any judicial authority
         construing all or any portion of this Section 7 or Section 8 below may,
         if it chooses, sever any portion of the Geographical Area, client base,
         prospective relationship or prospect list or any prohibited business
         activity from the coverage of such Section and to apply the provisions
         of such Section to the remaining portion of the Geographical Area, the
         client base or the prospective relationship or prospect list, or the
         remaining business activities not so severed by such judicial
         authority. In addition, it is the intent of the parties that the
         judicial authority may, if it chooses, replace each such severed
         provision with a provision as similar in terms to such severed
         provision as may be possible and be legal, valid and enforceable. It is
         the intent of the parties that Sections 7 and 8 be enforced to the
         maximum extent permitted by law. In the event that any provision of
         either such Section is determined not to be specifically enforceable,
         the Company shall nevertheless be entitled to bring an action to seek
         to recover monetary damages as a result of the breach of such provision
         by Employee.

8.       Non-Solicitation of Employees Covenant. Employee further agrees and
         represents that during Employee's employment by the Company and for a
         period of two (2) years following any termination of Employee's
         employment for whatever reason, Employee will not, directly or
         indirectly, on Employee's own behalf or in the service of, or on behalf
         of any other individual or entity, divert or solicit, or attempt to
         divert or solicit, to or for any individual or entity which is engaged
         in providing Business services or products, any person employed by the
         Company, whether or not such employee is a full-time employee or
         temporary employee of the Company, whether or not such employee is
         employed pursuant to written agreement and whether or not such employee
         is employed for a determined period or at-will.

9.       Existing Restrictive Covenants. Employee represents and warrants that
         Employee's employment with the Company does not and will not breach any
         agreement which Employee has with any former employer to keep in
         confidence confidential information or not to compete with any such
         former employer. 


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         Employee will not disclose to the Company or use on its behalf any
         confidential information of any other party required to be kept
         confidential by Employee.

10.      Return of Proprietary Information. Employee acknowledges that as a
         result of Employee's employment with the Company, Employee may come
         into the possession and control of Proprietary Information, such as
         proprietary documents, drawings, specifications, manuals, notes,
         computer programs, or other proprietary material. Employee
         acknowledges, warrants and agrees that Employee will return to the
         Company all such items and any copies or excerpts thereof, in any form
         or medium, and any other properties, files or documents obtained as a
         result of Employee's employment with the Company, immediately upon the
         termination of Employee's employment with the Company.

11.      Proprietary Rights. During the course of Employee's employment with the
         Company, Employee may make, develop or conceive of useful processes,
         machines, compositions of matter, computer software, algorithms, works
         of authorship expressing such algorithm, or any other discovery, idea,
         concept, document or improvement which relates to or is useful to the
         Company's Business (the "Inventions"), whether or not subject to
         copyright or patent protection, and which may or may not be considered
         Proprietary Information. Employee acknowledges that all such Inventions
         will be "works made for hire" under United States copyright law and
         will remain the sole and exclusive property of the Company. Employee
         also hereby assigns and agrees to assign to the Company, in perpetuity,
         all right, title and interest Employee may have in and to such
         Inventions, including without limitation, all copyrights, and the right
         to apply for any form of patent, utility model, industrial design or
         similar proprietary right recognized by any state, country or
         jurisdiction. Employee further agrees, at the Company's request and
         expense, to do all things and sign all documents or instruments
         necessary, in the opinion of the Company, to eliminate any ambiguity as
         to the ownership of, and rights of the Company to, such Inventions,
         including filing copyright and patent registrations and defending and
         enforcing in litigation or otherwise all such rights.

         Employee will not be obligated to assign to the Company any Invention
         made by Employee while in the Company's employ which does not relate to
         any business or activity in which the Company is or may reasonably be
         expected to become engaged, except that Employee is so obligated if the
         same relates to or is based on Proprietary Information to which
         Employee will have had access during and by virtue of Employee's
         employment or which arises out of work assigned to Employee by the
         Company. Employee will not be obligated to assign any Invention which
         may be wholly conceived by Employee after Employee leaves the employ of
         the Company, except that Employee is so obligated if such Invention
         involves the utilization of Proprietary Information obtained while in
         the employ of 


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         the Company. Employee is not obligated to assign any Invention which
         relates to or would be useful in any business or activities in which
         the Company is engaged if such Invention was conceived and reduced to
         practice by Employee prior to Employee's employment with the Company.

12.      Remedies. Employee agrees and acknowledges that the violation of any of
         the covenants or agreements contained in Sections 6, 7, 8, 9, 10 and 11
         of this Agreement would cause irreparable injury to the Company, that
         the remedy at law for any such violation or threatened violation
         thereof would be inadequate, and that the Company will be entitled, in
         addition to any other remedy, to temporary and permanent injunctive or
         other equitable relief without the necessity of proving actual damages
         or posting a bond.

13.      Notices. Any notice or communication under this Agreement will be in
         writing and sent by registered or certified mail addressed to the
         respective parties as follows:

         If to the Company:                          If to Employee:

         2700 Cumberland Parkway                     Mark Colonnese
         Suite 300                                   1307 Woodfield Court 
         Atlanta, GA 30339                           Wilmington, NC 28409
         Attn: Chief Executive Officer

         or to such other address or agent as may be hereafter designated in
         writing by either party hereto. All such notices shall be deemed given
         on the date personally delivered or mailed.

14.      Severability. Subject to the application of Section 7(C) to the
         interpretation of Sections 7 and 8, in case one or more of the
         provisions contained in this Agreement is for any reason held to be
         invalid, illegal or unenforceable in any respect, the parties agree
         that it is their intent that the same will not affect any other
         provision in this Agreement, and this Agreement will be construed as if
         such invalid or illegal or unenforceable provision had never been
         contained herein. It is the intent of the parties that this Agreement
         be enforced to the maximum extent permitted by law.

15.      Entire Agreement. This Agreement embodies the entire agreement of the
         parties relating to the subject matter of this Agreement and supersedes
         all prior agreements, oral or written, regarding the subject matter
         hereof. No amendment or modification of this Agreement will be valid or
         binding upon the parties unless made in writing and signed by the
         parties.


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16.      Binding Effect. This Agreement will be binding upon the parties and
         their respective heirs, representatives, successors, transferees and
         permitted assigns.

17.      Assignment. This Agreement is one for personal services and will not be
         assigned by Employee. The Company may assign this Agreement to its
         parent company or to any of its subsidiaries or affiliated companies;
         provided that the parent or any subsidiary or affiliate fulfills the
         obligations of the Company under this Agreement.

18.      Governing Law. This Agreement is entered into and will be interpreted
         and enforced pursuant to the laws of the State of Georgia. The parties
         hereto hereby agree that the appropriate forum and venue for any
         disputes between any of the parties hereto arising out of this
         Agreement shall be any federal court in the state where the Company has
         its principal place of business and each of the parties hereto hereby
         submits to the personal jurisdiction of any such court. The foregoing
         shall not limit the rights of any party to obtain execution of judgment
         in any other jurisdiction. The parties further agree, to the extent
         permitted by law, that a final and unappealable judgment against either
         of them in any action or proceeding contemplated above shall be
         conclusive and may be enforced in any other jurisdiction within or
         outside the United States by suit on the judgment, a certified
         exemplified copy of which shall be conclusive evidence of the fact and
         amount of such judgment.

19.      Indemnification. Employee shall be entitled to the indemnification and
         exculpation offered through and set forth in the Company's Charter and
         By-laws.

20.      Surviving Terms. Sections 6, 7, 8, 9, 10, 11 and 12 of this Agreement
         shall survive termination of this Agreement.

         IN WITNESS WHEREOF, the parties have executed this Agreement as of the
day and year first above written.

COMPANY:                                             EMPLOYEE:

By: /s/ Jerome H. Baglien                            /s/ Mark Colonnese
   -----------------------------                     ---------------------
                                                     Mark Colonnese

Title: CFO  
      --------------------------



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                                    EXHIBIT A

                                   INVENTIONS

         Employee represents that there are no Inventions.


                                                        /s/ MPC
                                                        -----------------
                                                        Employee Initials



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