<TABLE> <S> <C>

<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL STATEMENT INFORMATION EXTRACTED FROM
CONSOLIDATED BALANCE SHEETS AT OCTOBER 31, 1996 AND 1995 AND THE STATEMENT OF
OPERATIONS FOR THE YEARS ENDED OCTOBER 31, 1996, 1995, AND 1994 AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000861179
<NAME> HEALTH MANAGEMENT SYSTEMS, INC.
<MULTIPLIER> 1,000
       
<S>                                    <C>                     <C>                     <C>
<PERIOD-TYPE>                                     YEAR                    YEAR                    YEAR
<FISCAL-YEAR-END>                          OCT-31-1996             OCT-31-1995             OCT-31-1994
<PERIOD-START>                             NOV-01-1995             NOV-01-1994             NOV-01-1993
<PERIOD-END>                               OCT-31-1996             OCT-31-1995             OCT-31-1994
<CASH>                                          22,274                  10,801                       0
<SECURITIES>                                    17,181                  19,287                       0
<RECEIVABLES>                                   42,081                  31,517                       0
<ALLOWANCES>                                   (1,682)                   (296)                       0
<INVENTORY>                                          0                       0                       0
<CURRENT-ASSETS>                                86,809                  65,857                       0
<PP&E>                                          21,885                  15,169                       0
<DEPRECIATION>                                (14,111)                 (9,295)                       0
<TOTAL-ASSETS>                                 109,181                  87,195                       0
<CURRENT-LIABILITIES>                           30,188                  24,214                       0
<BONDS>                                              0                       0                       0
<PREFERRED-MANDATORY>                                0                       0                       0
<PREFERRED>                                          0                       0                       0
<COMMON>                                             0                     164                       0
<OTHER-SE>                                           0                       0                       0
<TOTAL-LIABILITY-AND-EQUITY>                   109,181                  87,195                       0
<SALES>                                        100,669                  89,727                  73,176
<TOTAL-REVENUES>                               100,669                  89,727                  73,176
<CGS>                                                0                       0                       0
<TOTAL-COSTS>                                   86,321                  71,627                  59,134
<OTHER-EXPENSES>                                 (384)                     103                   (405)
<LOSS-PROVISION>                                 4,485                     111                     190
<INTEREST-EXPENSE>                               (987)                   (942)                   (464)
<INCOME-PRETAX>                                 13,760                  17,754                  14,077
<INCOME-TAX>                                     5,574                   8,152                   6,353
<INCOME-CONTINUING>                              8,186                   9,602                   7,724
<DISCONTINUED>                                       0                       0                       0
<EXTRAORDINARY>                                      0                       0                       0
<CHANGES>                                            0                       0                       0
<NET-INCOME>                                     8,186                   9,602                   7,724
<EPS-PRIMARY>                                      .45                     .55                     .46
<EPS-DILUTED>                                        0                       0                       0
        

</TABLE>