**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      D.C. 20549**

**FORM      10-QSB**

**QUARTERLY      REPORT PURSUANT TO SECTION 13 OR 15(d)**

**OF      THE SECURITIES EXCHANGE ACT OF 1934**

**For      the quarterly period ended September 30, 2007**

**COMMISSION      FILE NUMBER 0-26168**

**CAREADVANTAGE,      INC.**

**(Exact      name of small business issuer as specified in its charter)**

| **DELAWARE**                                   | **52-1849794**                        |
|------------------------------------------------|---------------------------------------|
| (State                or other jurisdiction of | (I.R.S.                Employer       |
| Incorporation                or organization)  | Identification                Number) |

| **485-C                Route 1 South, Iselin, New Jersey** | **08830**                 |
|------------------------------------------------------------|---------------------------|
| (Address                of principal executive offices)    | (Zip                Code) |

----

**I      N D E X**

| **Part                  I - Financial Information** |   |   |
|-----------------------------------------------------|--------|--------|
|                                                |   |   |   |   |   |
|  Item                  1.                      |   |   | Financial                  Statements |   |   |
|                                                |   |   |   |   |   |
|                                                | l      |   | Condensed                  Consolidated Balance Sheets - |   |   |
|                                                |   |   | September                  30, 2007 (Unaudited) and December 31, 2006 |   | 2 |
|                                                |   |   |   |   |   |
|                                                | l      |   | Condensed                  Consolidated Statements of Operations - |   |   |
|                                                |   |   | Three                  and nine months ended September 30, 2007 and September 30,                  2006 |   |
|                                                |   |   | (Unaudited) |   | 3 |
|                                                |   |   |   |   |   |
|                                                | l      |   | Condensed                  Consolidated Statements of Cash Flows - |   |   |
|                                                |   |   | Nine                  months ended September 30, 2007 and September 30, 2006 |   |
|                                                |   |   | (Unaudited) |   | 4 |
|                                                |   |   |   |   |
|                                                | l      |   | Notes                  to Unaudited Condensed Consolidated Financial Statements | 5 |
|                                                |   |   |   |   |   |
|  Item                  2.                      |   |   | Management’s                  Discussion and Analysis of |   |   |
|                                                |   |   | Financial                  Condition and Results of Operations |   | 7 |
|  Item                  3.                      |   |   | Controls                  and Procedures | 11 |
|                                                |   |   |
| **Part                  II - Other Information**    |   |   |
|                                                |   |   |   |   |   |
|  Item                  1.                      |   |   | Legal                  Proceedings |   | 12 |
|                                                |   |   |   |   |
|  Item                  2.                      |   |   | Unregistered                  Sales of Equity Securities and Use of Proceeds | 12 |
|                                                |   |   |   |   |   |
|  Item                  3.                      |   |   | Defaults                  Upon Senior Securities |   | 12 |
|                                                |   |   |   |   |   |
|  Item                  4.                      |   |   | Submission                  of Matters to a Vote of Security Holders |   | 12 |
|                                                |   |   |   |   |   |
|  Item                  5.                      |   |   | Other                  Information |   | 12 |
|                                                |   |   |   |   |   |
|  Item                  6.                      |   |   | Exhibits |   | 12 |
|                                                |   |   |   |   |
|  Signature                                     |   |   |   | 13 |

----

**PART      I - FINANCIAL INFORMATION**

**ITEM      1. Financial Statements**

**CAREADVANTAGE,      INC AND SUBSIDIARIES**

**CONDENSED      CONSOLIDATED BALANCE SHEETS**

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | **September                  30,** |                | **December                  31,** |     |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------|---------------------|-----------------------------------|----------|
|  **ASSETS**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                               | **2007**            |                              | **2006** |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                               |  **Unaudited** |                              |     |   |
| Current                  assets:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                               |           |                              |     |   |
|  Cash                  and cash equivalents                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                               | $                   | 343,000                           |     | $ | 371,000 |   |
|  Accounts                  receivable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                               |                | 400,000                           |     |   | 529,000 |   |
|  Other                  current assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                               |                | 160,000                           |     |   | 92,000 |   |
|  Total                  current assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                               |                | 903,000                           |     |   | 992,000 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                               |                |                              |     |   |   |   |
| Property                  and equipment, at cost less accumulated depreciation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                               |                | 190,000                           |     |   | 232,000 |   |
| Intangible                  assets, net of accumulated depreciation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                               |                | 7,000                             |     |   | 1,000 |   |
| Other                  assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                               |                | 167,000                           |     |   | 167,000 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                               |                |                              |     |   |   |   |
| Total                  Assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                               | $                   | 1,267,000                         |     | $ | 1,392,000 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                               |                |                              |     |   |   |   |
| **LIABILITIES                  AND STOCKHOLDERS' EQUITY**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                               |                |                              |     |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                               |                |                              |     |   |   |   |
| Current                  liabilities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                               |                |                              |     |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                               |                |                              |     |   |   |   |
|  Accounts                  payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                               | $                   | 86,000                            |     | $ | 146,000 |   |
|  Accrued                  compensation and related benefits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                               |                | 70,000                            |     |   | 110,000 |   |
|  Accrued                  expenses and other current liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                               |                | 196,000                           |     |   | 127,000 |   |
|  Deferred                  revenue                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                               |                | 50,000                            |     |   | 74,000 |   |
|  Capital                  lease obligation - current                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                               |                | 40,000                            |     |   | 40,000 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                               |                |                              |     |   |   |   |
|  Total                  current liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                               |                | 442,000                           |     |   | 497,000 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                               |                |                              |     |   |   |   |
| Long                  term liabilities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                               |                |                              |     |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                               |                |                              |     |   |   |   |
|  Capital                  lease obligation - long term                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                               |                | 113,000                           |     |   | 143,000 |   |
|  Deferred                  rent                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                               |                | 409,000                           |     |   | 352,000 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                               |                |                              |     |   |   |   |
|  Total                  Liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                               | $                   | 964,000                           |     | $ | 992,000 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                               |                |                              |     |   |   |   |
| Stockholders'                  equity:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                               |                |                              |     |   |   |   |
| Preferred                    stock-par value $.10 per share; authorized 10,000,000 shares;                    none issued                    Common stock-par value $.001 per share; authorized 200,000,000                    shares;                    113,156,485 and 110,170,374 shares issued at September 30, 2007                    and                    December 31, 2006, respectively and 59,761,665 and 56,775,554                    shares                    outstanding at September 30, 2007 and December 31, 2006,                    respectively |                               |                | 113,000                           |     |   | 110,000 |   |
| Additional                  capital                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                               |                | 24,074,000                        |     |   | 24,007,000 |   |
| Accumulated                  deficit                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                               |                | (23,622,000                       | )        |   | (23,455,000 | ) |
| Treasury                  stock at cost, 53,394,820 shares                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                               |                | (262,000                          | )        |   | (262,000 | ) |
| Total                  Stockholders' Equity                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                               |                | 303,000                           |     |   | 400,000 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                               |                |                              |     |   |   |   |
| Total                  Liabilities and Stockholders' Equity                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                               | $                   | 1,267,000                         |     | $ | 1,392,000 |   |

----

**CAREADVANTAGE,      INC. AND SUBSIDIARIES**

**CONDENSED      CONSOLIDATED STATEMENTS OF OPERATIONS**

**(UNAUDITED)**

|                                                                        |   | **Three                    Months Ended** |       | **Nine                    Months Ended** |   |
|-----------------------------------------------------------------------------|--------|-------------------------------------------|------------|------------------------------------------|--------|
|                                                                        |   | **September                    30,**      |       | **September                    30,**     |   |
|                                                                        |   | **2007**                                  |       | **2006**                                 |   | **2007** |   | **2006** |   |
|                                                                        |   |                                      |       |                                     |   |   |   |   |   |   |   |   |   |
| License                    fees and service revenue                         |   | $                                         | 1,037,000  |                                     | $      | 1,234,000 |   | $ | 3,172,000 |   | $ | 3,274,000 |   |
|                                                                        |   |                                      |       |                                     |   |   |   |   |   |   |   |   |   |
| Costs                    of services                                        |   |                                      | 418,000    |                                     |   | 453,000 |   |   | 1,276,000 |   |   | 1,311,000 |   |
|                                                                        |   |                                      |       |                                     |   |   |   |   |   |   |   |   |   |
| Gross                    profit                                             |   |                                      | 619,000    |                                     |   | 781,000 |   |   | 1,896,000 |   |   | 1,963,000 |   |
|                                                                        |   |                                      |       |                                     |   |   |   |   |   |   |   |   |   |
| Operating                    expenses:                                      |   |                                      |       |                                     |   |   |   |   |   |   |   |   |   |
|                                                                        |   |                                      |       |                                     |   |   |   |   |   |   |   |   |   |
| Selling,                    general and administration                      |   |                                      | 682,000    |                                     |   | 691,000 |   |   | 2,079,000 |   |   | 2,117,000 |   |
|                                                                        |   |                                      |       |                                     |   |   |   |   |   |   |   |   |   |
| Operating                    income/ (loss)                                 |   |                                      | (63,000    | )                                        |   | 90,000 |   |   | (183,000 | ) |   | (154,000 | ) |
|                                                                        |   |                                      |       |                                     |   |   |   |   |   |   |   |   |   |
| Interest                    (expense)/income, net                           |   |                                      | (4,000     | )                                        |   | - |   |   | (13,000 | ) |   | - |   |
|                                                                        |   |                                      |       |                                     |   |   |   |   |   |   |   |   |   |
| Gain                    on sale of assets                                   |   |                                      | -          |                                     |   | - |   |   | 32,000 |   |   | - |   |
|                                                                        |   |                                      |       |                                     |   |   |   |   |   |   |   |   |   |
| Provision                    for income taxes                               |   |                                      | 2,000      |                                     |   | 1,000 |   |   | 3,000 |   |   | 2,000 |   |
|                                                                        |   |                                      |       |                                     |   |   |   |   |   |   |   |   |   |
| Net                    profit/ (loss)                                       |   | $                                         | (69,000    | )                                        | $      | 89,000 |   | $ | (167,000 | ) | $ | (156,000 | ) |
|                                                                        |   |                                      |       |                                     |   |   |   |   |   |   |   |   |   |
| Net                    profit/ (loss) per share of common stock             |   | $                                         | (.00       | )                                        | $      | .00 |   | $ | (.00 | ) | $ | (.00 | ) |
|                                                                        |   |                                      |       |                                     |   |   |   |   |   |   |   |   |   |
| Weighted                      average number of common shares outstanding - |   |                                      |       |                                     |   |   |   |   |   |   |   |   |   |
|                                                                        |   |                                      |       |                                     |   |   |   |   |   |   |   |   |   |
|  Basic                                                                 |   |                                      | 58,074,000 |                                     |   | 56,717,000 |   |   | 57,213,000 |   |   | 55,410,000 |   |
|                                                                        |   |                                      |       |                                     |   |   |   |   |   |   |   |   |   |
|  Diluted                                                               |   |                                      | 58,074,000 |                                     |   | 61,920,000 |   |   | 57,213,000 |   |   | 55,410,000 |   |

----

**CAREADVANTAGE,      INC. AND SUBSIDIARIES**

**CONDENSED      CONSOLIDATED STATEMENTS OF CASH FLOWS**

**(UNAUDITED)**

|                                                                                                                        |   |  **Nine                  Months Ended September 30,** |     |
|-----------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------|----------|
|                                                                                                                        |   | **2007**                                                   |     |  **2006** |   |
| **Cash                  flows from operating activities:**                                                                  |   |                                                       |     |    |   |
|                                                                                                                        |   |                                                       |     |   |   |   |   |
| Net                  loss                                                                                                   |   | $                                                          | (167,000 | ) | $ | (156,000 | ) |
|                                                                                                                        |   |                                                       |     |   |   |   |   |
| Adjustments                  to reconcile net loss to                  net cash (used in)/provided by operating activities: |   |                                                       |     |   |   |   |   |
|                                                                                                                        |   |                                                       |     |   |   |   |   |
|  Depreciation                  and amortization                                                                        |   |                                                       | 52,000   |   |   | 91,000 |   |
|  Stock                  based compensation                                                                             |   |                                                       | 45,000   |   |   | 63,000 |   |
|  Deferred                  revenue                                                                                     |   |                                                       | (24,000  | ) |   | 13,000 |   |
|  Gain                  on sale of assets                                                                               |   |                                                       | (32,000  | ) |   | - |   |
|                                                                                                                        |   |                                                       |     |   |   |   |   |
| **Change                  in:**                                                                                             |   |                                                       |     |   |   |   |   |
|                                                                                                                        |   |                                                       |     |   |   |   |   |
| Accounts                  receivable                                                                                        |   |                                                       | 129,000  |   |   | 30,000 |   |
| Other                  assets                                                                                               |   |                                                       | (68,000  | ) |   | 52,000 |   |
| Accounts                  payable                                                                                           |   |                                                       | (60,000  | ) |   | 1,000 |   |
| Deferred                  rent                                                                                              |   |                                                       | 57,000   |   |   | 132,000 |   |
| Accrued                  expenses and other liabilities                                                                     |   |                                                       | 29,000   |   |   | (45,000 | ) |
|                                                                                                                        |   |                                                       |     |   |   |   |   |
| Net                  cash (used in)/provided by operating activities                                                        |   |                                                       | (39,000  | ) |   | 181,000 |   |
|                                                                                                                        |   |                                                       |     |   |   |   |   |
| **Cash                  flows from investing activity:**                                                                    |   |                                                       |     |   |   |   |   |
|                                                                                                                        |   |                                                       |     |   |   |   |   |
| Proceeds                  from sale of assets                                                                               |   |                                                       | 32,000   |   |   | - |   |
| Capital                  expenditures                                                                                       |   |                                                       | (16,000  | ) |   | (5,000 | ) |
|                                                                                                                        |   |                                                       |     |   |   |   |   |
| Net                  cash provided by/ (used in) investing activities                                                       |   |                                                       | 16,000   |   |   | (5,000 | ) |
|                                                                                                                        |   |                                                       |     |   |   |   |   |
| **Cash                  flows from financing activity:**                                                                    |   |                                                       |     |   |   |   |   |
|                                                                                                                        |   |                                                       |     |   |   |   |   |
| Repayment                  of capital leases                                                                                |   |                                                       | (30,000  | ) |   | - |   |
| Proceeds                  from exercise of stock options                                                                    |   |                                                       | 25,000   |   |   | 13,000 |   |
|                                                                                                                        |   |                                                       |     |   |   |   |   |
| Net                  cash (used in)/ provided by financing activities                                                       |   |                                                       | (5,000   | ) |   | 13,000 |   |
|                                                                                                                        |   |                                                       |     |   |   |   |   |
| Net                  (decrease)/increase in cash                                                                            |   |                                                       | (28,000  | ) |   | 189,000 |   |
|                                                                                                                        |   |                                                       |     |   |   |   |   |
| Cash                  and cash equivalents - beginning of period                                                            |   |                                                       | 371,000  |   |   | 114,000 |   |
|                                                                                                                        |   |                                                       |     |   |   |   |   |
| Cash                  and cash equivalents - end of period                                                                  |   | $                                                          | 343,000  |   | $ | 303,000 |   |

----

**Note      A--Basis of presentation: **

| **[1]  ** | **Business:** |
|---------------------|---------------|

**[2]**
**Basis      of presentation:**

**Note      B--Per share data:**

|                                           |   | **September                30,** |           |
|------------------------------------------------|--------|----------------------------------|----------------|
|                                           |   | **2007**                         |           | **2006** |   |
|                                           |   |                             |           |   |   |
| Options                                        |   |                             | **16,866,000** |   |   | 20,110,000 |   |
|                                           |   |                             |           |   |   |   |   |
| Total                Potential Dilutive shares |   |                             | **16,866,000** |   |   | 11,532,000 |   |

----

**Note      C-- Stock-Based Compensation:**

**Note      D--Contingencies: **

*Alan      Fontes v. CareAdvantage, Inc.*

**Note      E—Concentration of Credit Risk:**

**Note      F—Income Taxes:**

----

**Note      G—Leased Space:**

**Note      H - Exercise of Stock Options:**

**ITEM      2. Management’s Discussion and Analysis of Financial Condition and Results of      Operations**

**Cautionary      Statements: **

**GENERAL      OVERVIEW:**

----

***RESULTS      OF OPERATIONS:***

***Three      Months Ended September 30, 2007, Compared to Three Months Ended September 30,      2006***

**Revenues:      **

**Cost      of services: **

**Selling,      general and administrative expenses: **

----

***Nine      Months Ended September 30, 2007, Compared to Nine Months Ended September 30,      2006***

**Revenues:      **

**Cost      of services: **

**Selling,      general and administrative expenses: **

*** ***

**Net      Loss:**

***LIQUIDITY,      FINANCIAL CONDITION AND CAPITAL RESOURCES***
*:*

**General      overview:**

**Financial      condition:**

----

**Critical      Accounting Policies:**

*Revenue      recognition*

*Accounting      for stock-based compensation*

----

*Recent      Accounting Pronouncements*

**ITEM      3. Controls and Procedures**

----

**PART      II—OTHER INFORMATION**

**Item      1. Legal Proceedings**

*CareAdvantage,      Inc. v. Blue Cross & Blue Shield of Rhode Island and Coordinated Health      Partners*

**Item      2. Unregistered Sales of Equity Security and Use of      Proceeds**

**Item      3. Defaults Upon Senior Securities**

**Item      4. Submission of Matters to a Vote of Security Holders**

**Item      5. Other Information**

**Item      6. Exhibits **

| (a)   | Exhibits |
|-----------------|----------|

----

**SIGNATURES**

|                           |                                                                                                                        |                              |
|--------------------------------|-----------------------------------------------------------------------------------------------------------------------------|-----------------------------------|
|                           | CareAdvantage,                Inc                                                                                           |
|                      |                                                                                                                   |                         |
| November              14, 2007 | By:                                                                                                               | /s/              Dennis J. Mouras |
|                           | Dennis                J. MourasChief                Executive Officer and acting Principal Financial                Officer |
|                           |                                                                                                                        |

----

| Exhibit |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| No.     | Description                  of Exhibit                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 2.1     | Deposit                  Agreement dated October 31, 1994 among Midlantic Bank, N.A., PMDX                  and the                  Registrant incorporated by reference to Exhibit 2.1 filed with                  the                  Company's Registration Statement on Form S-1 (File No.                  33-89176).                                                                                                                                                                                                                                                                                                                |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 2.2     | Certificate                  of Merger of Care Advantage Health Systems (f/k/a Advantage Health                  Systems, Inc.), a Georgia corporation into CareAdvantage Health                  Systems,                  Inc., a Delaware corporation incorporated by reference to Exhibit                  2.2                  filed with the Company's Registration Statement on Form S-1 (File                  No.                  33-89176).                                                                                                                                                                                      |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 3.1     | Registrant's                  Certificate of Incorporation incorporated by reference to Exhibit                  3.1                  filed with the Company's Registration Statement on Form S-1 (File                  No.                  33-89176).                                                                                                                                                                                                                                                                                                                                                                                    |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 3.1(a)  | Amended                  and Restated Certificate of Incorporation incorporated by reference                  to the                  Company's Information Statement dated September 1996.                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 3.2     | Registrant's                  By-Laws incorporated by reference to Exhibit 3.2 filed with the                  Company's                  Registration Statement on Form S-1 (File No. 33-89176).                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 3.2(a)  | Amendment                  to the Company’s Bylaws incorporated by reference to Exhibit 3.2(a) filed                  with the Company’s Form 10-KSB for the year ended December 31,                  2006.                                                                                                                                                                                                                                                                                                                                                                                                                     |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 10.1    | Lease                  Agreement dated April 14, 1995 between the Registrant and Metropolitan                  Life Insurance Company incorporated by reference to Exhibit 10.13                  filed                  with the Company's Registration Statement on Form S-1 (File No.                  33-89176).                                                                                                                                                                                                                                                                                                                        |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 10.2    | Registrant’s                  1996 Stock Option Plan incorporated by reference to the Company's                  Information Statement dated September 1996.                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 10.3    | Registrant’s                  1996 Director Stock Option Plan incorporated by reference to the                  Company's                  Information Statement dated September 1996.                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 10.4    | Confidentiality,                  Invention, and Non-Compete Agreement between the Company and David                  Noone,                  dated as of January 8, 1999, incorporated by reference to Exhibit                  10.33                  filed with the Company’s Form 10KSB for the year ended September 30,                  1998.                                                                                                                                                                                                                                                                                   |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 10.5    | Employment                  Agreement, effective as of April 19, 1999, between Dennis M. Mouras,                  and                  the Company, incorporated by reference to Exhibit 10.40 filed with                  the                  Company’s Form 10KSB for the year ended December 31,                  1999.                                                                                                                                                                                                                                                                                                           |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 10.6    | Second                  Amendment to Lease Agreement between CareAdvantage Health Systems,                  Inc.                  and Corporate Plaza Associates, L.L.C., incorporated by reference                  to                  Exhibit 10.1 filed on the Company’s Form 8-K filed on January 11,                  2005.                                                                                                                                                                                                                                                                                                     |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 10.7    | Services                  and License Agreement between the Company and Kaiser Foundation                  Health                  Plan of the Northwest ("Kaiser"), effective as of January 1, 2005,                  incorporated by reference to Exhibit 10.49 filed with the Company’s Form                  10-KSB for the year ended December31, 2004. Portions of this exhibit                  (indicated by asterisks) have been omitted pursuant to a request                  for                  confidential treatment pursuant to Rule 24b-2 of the Securities                  Exchange                  Act of 1934. |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 10.8    | Amendment                  to Employment Agreement between the Company and Dennis J. Mouras,                  dated as                  of November 11, 2005, and Employment Agreement between the Company                  and                  Dennis J. Mouras, dated as of October 25,2000, incorporated by                  reference                  to Exhibit 10.50 filed with the Company’s Form 10-QSB for the quarter                  ended September 30, 2005.                                                                                                                                                          |

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|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.51  | First                  Amendment to Services and License Agreement between the Company                  and Kaiser                  Foundation Health Plan of the Northwest (“Kaiser”), effective as of                  January 1, 2006, incorporated by reference to Exhibit 10.51 filed                  with the                  Company’s Form 10-KSB for the year ended December 31, 2005. Portions of                  this exhibit (indicated by asterisks) have been omitted pursuant                  to a                  request for confidential treatment pursuant to Rule 24b-2 of the                  Securities Exchange Act of 1934. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 10.52  | Second                  Amendment to Services and License Agreement between the Company                  and                  Kaiser, effective as of April 1, 2006, incorporated by reference                  as                  Exhibit 10.52 filed with the Company’s Form 10-KSB for the year ended                  December 31, 2005. Portions of this exhibit (indicated by asterisks)                  have                  been omitted pursuant to a request for confidential treatment pursuant                  to                  Rule 24b-2 of the Securities Exchange Act of 1934.                                                                 |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 10.53  | Services                  and License Agreement between the Company and Blue Cross Blue Shield                  of                  Texas (“BCBSTX”), effective as of August 18, 2003, incorporated by                  reference to Exhibit 10.53 filed with the Company's Form 10-QSB                  for the                  quarter ended June 30, 2006. Portions of this exhibit (indicated                  by                  asterisks) have been omitted pursuant to a request for confidential                  treatment pursuant to Rule 24b-2 of the Securities Exchange Act                  of                  1934.                         |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 10.54  | Amendment                  to Services and License Agreement between the Company and BCBSTX,                  effective as of June 1, 2006, incorporated by reference to Exhibit                  10.54                  filed with the Company's Form 10-QSB for the quarter ended June                  30, 2006.                  Portions of this exhibit (indicated by asterisks) have been omitted                  pursuant to a request for confidential treatment pursuant to Rule                  24b-2 of                  the Securities Exchange Act of 1934.                                                                                                 |
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| 10.13  | Letter                  from Kaiser Foundation Health Plan of the Northwest terminating                  Services                  and License Agreement, incorporated by reference to Exhibit 10.1                  filed on                  the Company’s Form 8-K filed on October 3, 2006.                                                                                                                                                                                                                                                                                                                                                                       |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 16.1   | Letter                  regarding change in accountants, incorporated by reference to Exhibit                  16.1                  filed on the Company’s Form 8-K dated June 6, 1996.                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 16.2   | Letter                  regarding change in accountants, incorporated by reference to Exhibit                  16                  filed on the Company’s Form 8-K dated July 31, 2001.                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 16.3   | Letter                  regarding change in accountants, incorporated by reference to Exhibit                  16.1                  filed on the Company’s Form 8-K dated June 6, 2002.                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 31     | Certifications                  pursuant to Rule 13a-14(a), promulgated under the Securities Exchange                  Act                  of 1934, as amended, and Section 302 of the Sarbanes-Oxley Act                  of                  2002*                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 32     | Certifications                  pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section                  906 of                  the Sarbanes-Oxley Act of 2002                  **                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |

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