<TABLE> <S> <C>

<ARTICLE> 5
<LEGEND>
This schedule contains summary financial statement information extracted from
Consolidated Balance Sheets at October 31, 1998 and 1997 and the Statement of
Operations for the years ended October 31, 1998, 1997, and 1996 and is qualified
in its entirety by reference to such financial statements.
</LEGEND>
<CIK> 0000861179
<NAME> HEALTH MANAGEMENT SYSTEMS, INC.
<MULTIPLIER> 1,000
<CURRENCY> U.S. DOLLARS
       
<S>                                   <C>                     <C>                     <C>
<PERIOD-TYPE>                                 YEAR                   YEAR                   YEAR
<FISCAL-YEAR-END>                          OCT-31-1998             OCT-31-1997             OCT-31-1996
<PERIOD-START>                             NOV-01-1997             NOV-01-1996             NOV-10-1995
<PERIOD-END>                               OCT-31-1998             OCT-31-1997             OCT-31-1996
<EXCHANGE-RATE>                                      1                       1                       1
<CASH>                                          13,883                  20,694                  22,340
<SECURITIES>                                    14,519                  18,386                  17,181
<RECEIVABLES>                                   56,845                  40,947                  44,412
<ALLOWANCES>                                   (1,853)                 (1,428)                 (1,682)
<INVENTORY>                                          0                       0                       0
<CURRENT-ASSETS>                                89,756                  81,983                  86,955
<PP&E>                                          26,565                  25,302                  22,070
<DEPRECIATION>                                (19,878)                (17,314)                (14,247)
<TOTAL-ASSETS>                                 117,802                 109,694                 109,643
<CURRENT-LIABILITIES>                           33,047                  28,184                  32,204
<BONDS>                                              0                       0                       0
<PREFERRED-MANDATORY>                                0                       0                       0
<PREFERRED>                                          0                       0                       0
<COMMON>                                           183                     178                     175
<OTHER-SE>                                      83,086                  79,628                  74,437
<TOTAL-LIABILITY-AND-EQUITY>                   117,802                 109,694                 109,643
<SALES>                                        105,252                  89,517                 101,326
<TOTAL-REVENUES>                               105,252                  89,517                 101,326
<CGS>                                                0                       0                       0
<TOTAL-COSTS>                                   95,628                  88,355                  87,873
<OTHER-EXPENSES>                                 2,297                   1,899                   (384)
<LOSS-PROVISION>                                     0                     538                   4,485
<INTEREST-EXPENSE>                               (102)                       0                   (569)
<INCOME-PRETAX>                                  9,957                   1,730                  12,865
<INCOME-TAX>                                     3,869                   (351)                   5,574
<INCOME-CONTINUING>                              7,660                   (169)                  13,249
<DISCONTINUED>                                       0                       0                       0
<EXTRAORDINARY>                                      0                       0                       0
<CHANGES>                                            0                       0                       0
<NET-INCOME>                                     6,088                   2,081                   7,291
<EPS-PRIMARY>                                     0.35                    0.12                    0.42
<EPS-DILUTED>                                     0.34                    0.12                    0.39
        

</TABLE>