**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      D.C. 20549**

**FORM      10-Q**

**QUARTERLY      REPORT UNDER SECTION 13 OR 15(d)**

**OF      THE SECURITIES EXCHANGE ACT OF 1934**

**For      the quarterly period ended June 30, 2008**

**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) |

| Yes x  |  Noo |
|------------------|-----------|

Indicate        by check mark whether the registrant is a large accelerated filer, an        accelerated filer, a non-accelerated filer, or a smaller reporting company.        See        definitions of “Large accelerated filer,” “accelerated filer” and “smaller        reporting company” in Rule 12b-2 of the Exchange Act. (Check        one):

| Large                accelerated filer                o | Accelerated                filer                o |
|---------------------------------------------------------|---------------------------------------------------|
|                                                    |                                              |
| Non-accelerated                filer o                  | Smaller                reporting company x   |

| Yes                o  |  No                x |
|----------------------------|---------------------------|

----

**INDEX**

| **Part                I - Financial Information**                                                                                                                             |   |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|
|                                                                                                                                                                          |   |   |
| Item                1. Financial Statements                                                                                                                                   |   |   |
|                                                                                                                                                                          |   |   |
| ·                  Condensed Consolidated Balance Sheets -June 30, 2008 (Unaudited)                and                December 31, 2007                        |   | 2      |
|                                                                                                                                                                          |   |   |
| ·                  Condensed Consolidated Statements of Operations -Three and six months                ended June 30, 2008 and June 30, 2007 (Unaudited)      |   | 3      |
|                                                                                                                                                                          |   |   |
| ·                  Condensed Consolidated Statements of Cash Flows -Six months ended                June 30,                2008 and June 30, 2007 (Unaudited) |   | 4      |
|                                                                                                                                                                          |   |   |
| ·                  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. Quantitative and Qualitative Disclosures About Market                Risk                                                                              |   | 10     |
|                                                                                                                                                                          |   |   |
| Item                4T. Controls and Procedures                                                                                                                               |   | 10     |
|                                                                                                                                                                          |   |   |
|  **Part                II - Other Information**                                                                                                                          |   | 12     |
|                                                                                                                                                                          |   |   |
| Item                1. Legal Proceedings                                                                                                                                      |   | 12     |
|                                                                                                                                                                          |   |   |
| Item                1A. Risk Factors                                                                                                                                          |   | 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**

|                                                                                                                                                                                                                                                                                                                                                                                |   | **June                  30,** |        | **December                  31,** |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------|-------------|-----------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                |   | **2008**                      |        | **2007**                          |   |
| **ASSETS**                                                                                                                                                                                                                                                                                                                                                                          |   | **Unaudited**                 |        |                              |   |
| Current                  assets:                                                                                                                                                                                                                                                                                                                                                    |   |                          |        |                              |   |
| Cash                  and cash equivalents                                                                                                                                                                                                                                                                                                                                          |   | $                             | 324,000     |                              | $      | 508,000 |   |
| Accounts                  receivable                                                                                                                                                                                                                                                                                                                                                |   |                          | 316,000     |                              |   | 387,000 |   |
| Prepaid                  expenses                                                                                                                                                                                                                                                                                                                                                   |   |                          | 18,000      |                              |   | 107,000 |   |
| Other                  current assets                                                                                                                                                                                                                                                                                                                                               |   |                          | 36,000      |                              |   | 41,000 |   |
| Total                  current assets                                                                                                                                                                                                                                                                                                                                               |   |                          | 694,000     |                              |   | 1,043,000 |   |
|                                                                                                                                                                                                                                                                                                                                                                                |   |                          |             |                              |   |  |   |
| Property                  and equipment, at cost net of accumulated depreciation                                                                                                                                                                                                                                                                                                    |   |                          | 200,000     |                              |   | 234,000 |   |
| Intangible                  assets, net of accumulated depreciation                                                                                                                                                                                                                                                                                                                 |   |                          | 5,000       |                              |   | 6,000 |   |
| Security                  deposits                                                                                                                                                                                                                                                                                                                                                  |   |                          | 167,000     |                              |   | 167,000 |   |
| Total                  Assets                                                                                                                                                                                                                                                                                                                                                       |   | $                             | 1,066,000   |                              | $      | 1,450,000 |   |
|                                                                                                                                                                                                                                                                                                                                                                                |   |                          |             |                              |   |  |   |
| **LIABILITIES                  AND STOCKHOLDERS' EQUITY/(DEFICIT)**                                                                                                                                                                                                                                                                                                                 |   |                          |             |                              |   |  |   |
|                                                                                                                                                                                                                                                                                                                                                                                |   |                          |             |                              |   |  |   |
| Current                  liabilities:                                                                                                                                                                                                                                                                                                                                               |   |                          |             |                              |   |  |   |
| Accounts                  payable                                                                                                                                                                                                                                                                                                                                                   |   | $                             | 256,000     |                              | $      | 62,000 |   |
| Accrued                  compensation and related benefits                                                                                                                                                                                                                                                                                                                          |   |                          | 107,000     |                              |   | 124,000 |   |
| Accrued                  professional fees                                                                                                                                                                                                                                                                                                                                          |   |                          | 129,000     |                              |   | 206,000 |   |
| Other                  current liabilities                                                                                                                                                                                                                                                                                                                                          |   |                          | 1,000       |                              |   | 14,000 |   |
| Deferred                  revenue                                                                                                                                                                                                                                                                                                                                                   |   |                          | 48,000      |                              |   | 21,000 |   |
| Capital                  lease obligation - current                                                                                                                                                                                                                                                                                                                                 |   |                          | 58,000      |                              |   | 58,000 |   |
| Total                  current liabilities                                                                                                                                                                                                                                                                                                                                          |   |                          | 599,000     |                              |   | 485,000 |   |
|                                                                                                                                                                                                                                                                                                                                                                                |   |                          |             |                              |   |  |   |
| Long                  term liabilities:                                                                                                                                                                                                                                                                                                                                             |   |                          |             |                              |   |  |   |
| Capital                  lease obligation - long term                                                                                                                                                                                                                                                                                                                               |   |                          | 107,000     |                              |   | 138,000 |   |
| Deferred                  rent                                                                                                                                                                                                                                                                                                                                                      |   |                          | 416,000     |                              |   | 428,000 |   |
| Total                  long term liabilities                                                                                                                                                                                                                                                                                                                                        |   |                          | 523,000     |                              |   | 566,000 |   |
| Total                  Liabilities                                                                                                                                                                                                                                                                                                                                                  |   |                          | 1,122,000   |                              |   | 1,051,000 |   |
|                                                                                                                                                                                                                                                                                                                                                                                |   |                          |             |                              |   |  |   |
| Stockholders'                  (deficit)/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;issued                  114,256,485 shares at June 30, 2008 and 113,256,485 at December                  31,                  2007and                  outstanding 60,861,665 shares at June 30, 2008 and 59,861,665 at                  December                  31, 2007 |   |                          | 114,000     |                              |   | 113,000 |   |
| Additional                  capital                                                                                                                                                                                                                                                                                                                                                 |   |                          | 24,127,000  |                              |   | 24,086,000 |   |
| Accumulated                  deficit                                                                                                                                                                                                                                                                                                                                                |   |                          | (24,035,000 | )                                 |   | 23,538,000 |   |
| Treasury                  stock at cost, 53,394,820 shares                                                                                                                                                                                                                                                                                                                          |   |                          | (262,000    | )                                 |   | (262,000 |   |
| Total                  Stockholders' (Deficit)/Equity                                                                                                                                                                                                                                                                                                                               |   |                          | (56,000     | )                                 |   | 399,000 |   |
| Total                  Liabilities and Stockholders' (Deficit)/Equity                                                                                                                                                                                                                                                                                                               |   | $                             | 1,066,000   |                              | $      | 1,450,000 |   |

----

**CAREADVANTAGE,      INC. AND SUBSIDIARIES**

**CONDENSED      CONSOLIDATED STATEMENTS OF OPERATIONS**

**(UNAUDITED)**

|                                                                  |   | **Three                Months Ended June 30,** |       | **Six                Months Ended June 30,** |   |
|-----------------------------------------------------------------------|--------|------------------------------------------------|------------|----------------------------------------------|--------|
|                                                                  |   | **2008**                                       |       | **2007**                                     |   | **2008** |   | **2007** |   |
|                                                                  |   |                                           |       |                                         |   |   |   |   |   |
|                                                                  |   |                                           |       |                                         |   |   |   |   |   |
| License                fees and service revenue                       |   | $                                              | 899,000    |                                         | $      | 1,085,000 |   | $ | 2,012,000 |   | $ | 2,135,000 |   |
|                                                                  |   |                                           |            |                                         |   |  |   |   |  |   |   |  |   |
| Costs                of services                                      |   |                                           | 430,000    |                                         |   | 429,000 |   |   | 880,000 |   |   | 858,000 |   |
|                                                                  |   |                                           |            |                                         |   |  |   |   |  |   |   |  |   |
| Gross                profit                                           |   |                                           | 469,000    |                                         |   | 656,000 |   |   | 1,132,000 |   |   | 1,277,000 |   |
|                                                                  |   |                                           |            |                                         |   |  |   |   |  |   |   |  |   |
| Operating                expenses:                                    |   |                                           |            |                                         |   |  |   |   |  |   |   |  |   |
|                                                                  |   |                                           |            |                                         |   |  |   |   |  |   |   |  |   |
| Selling,                general and administrative                    |   |                                           | 726,000    |                                         |   | 714,000 |   |   | 1,616,000 |   |   | 1,397,000 |   |
|                                                                  |   |                                           |            |                                         |   |  |   |   |  |   |   |  |   |
| Operating                loss                                         |   |                                           | (257,000   | )                                            |   | (58,000 | ) |   | (484,000 | ) |   | (120,000 | ) |
|                                                                  |   |                                           |            |                                         |   |  |   |   |  |   |   |  |   |
| Interest                expense                                       |   |                                           | (6,000     | )                                            |   | (4,000 | ) |   | (12,000 | ) |   | (9,000 | ) |
|                                                                  |   |                                           |            |                                         |   |  |   |   |  |   |   |  |   |
| Gain                on sale of assets                                 |   |                                           | -          |                                         |   | 32,000 |   |   | - |   |   | 32,000 |   |
|                                                                  |   |                                           |            |                                         |   |  |   |   |  |   |   |  |   |
| Provision                for income taxes                             |   |                                           | 1,000      |                                         |   | 1,000 |   |   | 1,000 |   |   | 1,000 |   |
|                                                                  |   |                                           |            |                                         |   |  |   |   |  |   |   |  |   |
| Net                (loss)                                             |   | $                                              | (264,000   | )                                            | $      | (31,000 | ) | $ | (497,000 | ) | $ | (98,000 | ) |
|                                                                  |   |                                           |            |                                         |   |  |   |   |  |   |   |  |   |
| Net                (loss) per share of common stock                   |   | $                                              | (.00       | )                                            | $      | (.00 | ) | $ | (.01 | ) | $ | (.00 | ) |
|                                                                  |   |                                           |            |                                         |   |  |   |   |  |   |   |  |   |
| Weighted                average number of common shares outstanding - |   |                                           |            |                                         |   |  |   |   |  |   |   |  |   |
|                                                                  |   |                                           |            |                                         |   |  |   |   |  |   |   |  |   |
| Basic                and diluted                                      |   |                                           | 60,861,665 |                                         |   | 56,775,000 |   |   | 60,823,000 |   |   | 56,775,000 |   |

----

**CAREADVANTAGE,      INC. AND SUBSIDIARIES**

**CONDENSED      CONSOLIDATED STATEMENTS OF CASH FLOWS**

**(UNAUDITED)**

|                                                                                                      |   | **Six                Months Ended June 30,** |     |
|-----------------------------------------------------------------------------------------------------------|--------|----------------------------------------------|----------|
|                                                                                                      |   | **2008**                                     |     | **2007** |   |
|                                                                                                      |   |                                         |     |   |   |
| **Cash                flows from operating activities:**                                                  |   |                                         |     |   |   |
|                                                                                                      |   |                                         |     |   |   |
| Net                loss                                                                                   |   | $                                            | (497,000 | ) | $ | (98,000 | ) |
|                                                                                                      |   |                                         |          |   |   |  |   |
| Adjustments                to reconcile net loss to net cash used in operating                activities: |   |                                         |          |   |   |  |   |
|                                                                                                      |   |                                         |          |   |   |  |   |
| Depreciation                and amortization                                                              |   |                                         | 36,000   |   |   | 35,000 |   |
| Stock                based compensation                                                                   |   |                                         | 42,000   |   |   | 32,000 |   |
| Deferred                revenue                                                                           |   |                                         | 27,000   |   |   | (37,000 | ) |
| Deferred                rent                                                                              |   |                                         | (12,000  | ) |   | 38,000 |   |
| Gain                on sale of assets                                                                     |   |                                         | -        |   |   | (32,000 | ) |
|                                                                                                      |   |                                         |          |   |   |  |   |
| **Change                in:**                                                                             |   |                                         |          |   |   |  |   |
|                                                                                                      |   |                                         |          |   |   |  |   |
| Accounts                receivable                                                                        |   |                                         | 71,000   |   |   | 161,000 |   |
| Prepaid                expenses and other assets                                                          |   |                                         | 94,000   |   |   | (78,000 | ) |
| Accounts                payable                                                                           |   |                                         | 194,000  |   |   | (39,000 | ) |
| Accrued                expenses and other liabilities                                                     |   |                                         | (107,000 | ) |   | (25,000 | ) |
|                                                                                                      |   |                                         |          |   |   |  |   |
| Net                cash used in operating activities                                                      |   |                                         | (152,000 | ) |   | (43,000 | ) |
|                                                                                                      |   |                                         |          |   |   |  |   |
| **Cash                flows from investing activity:**                                                    |   |                                         |          |   |   |  |   |
|                                                                                                      |   |                                         |          |   |   |  |   |
| Capital                expenditures                                                                       |   |                                         | (1,000   | ) |   | - |   |
| Proceeds                from sale of assets                                                               |   |                                         | -        |   |   | 32,000 |   |
|                                                                                                      |   |                                         |          |   |   |  |   |
| Net                cash (used in)/provided by investing activities                                        |   |                                         | (1,000   | ) |   | 32,000 |   |
|                                                                                                      |   |                                         |     |   |   |   |   |
| **Cash                flows from financing activity:**                                                    |   |                                         |          |   |   |  |   |
|                                                                                                      |   |                                         |          |   |   |  |   |
| Repayment                of capital leases                                                                |   |                                         | (31,000  | ) |   | (22,000 | ) |
|                                                                                                      |   |                                         |          |   |   |  |   |
| Net                cash used in financing activities                                                      |   |                                         | (31,000  | ) |   | (22,000 | ) |
|                                                                                                      |   |                                         |          |   |   |  |   |
| Net                decrease in cash and cash equivalents                                                  |   |                                         | (184,000 | ) |   | (33,000 | ) |
|                                                                                                      |   |                                         |          |   |   |  |   |
| Cash                and cash equivalents - beginning of period                                            |   |                                         | 508,000  |   |   | 371,000 |   |
|                                                                                                      |   |                                         |          |   |   |  |   |
| Cash                and cash equivalents - end of period                                                  |   | $                                            | 324,000  |   | $ | 338,000 |   |

----

**Note      A—Business:**

**[1]**
**Business      and Basis of Presentation:**

**[2]      Adoption of Accounting Standards:**

**Note      B—Per share data:**

|                                           |   | **Three                and Six Months Ended June 30,** |           |
|------------------------------------------------|--------|--------------------------------------------------------|----------------|
|                                           |   | **2008**                                               |           | **2007** |   |
|                                           |   |                                                   |           |   |   |
| Total                Potential Dilutive shares |   |                                                   | **16,266,000** |   |   | 19,852,000 |   |

----

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

**Note      D—Contingencies:**

*Alan      Fontes v. CareAdvantage, Inc.*

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

**Note      F—Leased Space:**

**,          **

| **Year                Ending** |   | **Additional****Rent** |    |
|--------------------------------|--------|------------------------|---------|
|                           |   |                   |    |
| 2008                           |   | $                      | 452,000 |   |
| 2009                           |   | $                      | 251,000 |   |
| 2010                           |   | $                      | 50,000  |   |

----

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

**Cautionary      Statements:**

**GENERAL      OVERVIEW:**

|   | **•** | access                meaningful information via an Internet-based portal;                                                                                                                                                                            |
|--------|-------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |        |                                                                                                                                                                                                                                                  |
|   | **•** | track                population and member-related disease status and severity over                time;                                                                                                                                              |
|   |        |                                                                                                                                                                                                                                                  |
|   | **•** | compare                client sub-populations;                                                                                                                                                                                                        |
|   |        |                                                                                                                                                                                                                                                  |
|   | **•** | profile                providers using case mix and severity-adjusted                techniques;                                                                                                                                                      |
|   |        |                                                                                                                                                                                                                                                  |
|   | **•** | select                and prioritize members who would best benefit from care management                interventions;                                                                                                                                |
|   |        |                                                                                                                                                                                                                                                  |
|   | **•** | understand                adverse selection associated with existing and/or newly-obtained                business                as well as understand the impact of a plan’s overall turnover in terms of                stayers and leavers; |
|   |        |                                                                                                                                                                                                                                                  |
|   | **•** | reduce                the dependence on internal resources to develop and produce required                reports to accomplish these tasks                                                                                                           |

* *
*.*

----

***RESULTS      OF OPERATIONS:***

***Three      Months Ended June 30, 2008, Compared to Three Months Ended June 30,      2007***

**Revenues:**

**Cost      of services:**

**Selling,      general and administrative expenses:**

**Net      Loss:**

***Six      Months Ended June 30, 2008, Compared to Six Months Ended June 30,      2007***

**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. Quantitative and Qualitative Disclosures About Market      Risk**

**ITEM      4T. Controls and Procedures**

----

*      Management’s Report on Internal Control over Financial      Reporting*

*      Management’s Report on Internal Control over Financial      Reporting*

----

**PART      II—OTHER INFORMATION**

**Item      1. Legal Proceedings**

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

**Item      1A. Risk Factors**

**Item      2. Unregistered Sales of Equity Securities 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 |
|                                    |                                                                                    |                         |
| August                  14, 2008   | /s/                  Dennis J. MourasDennis                J. Mouras                         |
|                                         | Chief                Executive Officer and acting Principal Financial                Officer |

----

| 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 Registrant’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 | Letter                of Intent dated January 2, 1996 between CW Ventures II, L.P., the                Registrant and its CareAdvantage Health Systems, Inc. subsidiary                incorporated by reference to Exhibit 10.14 filed with the Company's                Annual                Report on Form 10-KSB for the year ended October 31,                1996. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.3 | CW                Exchangeable Note incorporated by reference to Exhibit 10.16 filed                with                the Company's Annual Report on Form 10-KSB for the year ended October                31,                1996. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.4 | Stock                Acquisition Agreement dated February 22, 1996 among EHC, CHCM, CAHS                and                the Registrant incorporated by reference to Exhibit 10.17 filed with                the                Company's Annual Report on Form 10-KSB for the year ended October                31,                1996. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.5 | EHC                Exchangeable Note incorporated by reference to Exhibit 10.18 filed                with                the Company's Annual Report on Form 10-KSB for the year ended October                31,                1996. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.6 | Stockholders’                Agreement dated February 22, 1996 among EHC, CW Ventures and the                Registrant incorporated by reference to Exhibit 10.20 filed with                the                Company's Annual Report on Form 10-KSB for the year ended October                31,                1996. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 10.7 | Promissory                Note and Security Agreement, dated April 1, 1997, by CHCM in favor                of                Horizon BCBSNJ, in the original principal amount of $1,862,823                incorporated by reference to Exhibit 10(f)(3) filed with the Company's                Form 10-QSB for the quarter ended April 30,                1997. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.8 | Separation                Agreement dated April 20, 1995 between PMDX and the Registrant                incorporated by reference to Exhibit 10.1 filed with the Company's                Registration Statement on Form S-1 (File No.                33-89176). |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.9 | Registrant’s                1996 Stock Option Plan incorporated by reference to the Company's                Information Statement dated September                1996. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.10 | Registrant’s                1996 Director Stock Option Plan incorporated by reference to the                Company's                Information Statement dated September                1996. |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.11 | Option                Agreement between CW Ventures and Horizon BCBSNJ incorporated by                reference                to Exhibit 5 of Schedule 13(d) of Horizon BCBSNJ respecting beneficial                ownership of Common Stock of the Company dated June                1997. |
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| 10.12 | Settlement                and Release Agreement entered into among Horizon BCBSNJ, the Company,                CAHS, and CHCM, Enterprise Holding Company, Inc. ("EHC") and CW Ventures,                incorporated by reference to Exhibit 10(a) filed with the Company’s Form                10-QSB for the quarter ended July 31,                1998. |
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| 10.13 | 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. |
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| 10.14 | Settlement                Agreement dated August 9, 2000 among the Company, Horizon Healthcare                of                New Jersey, Inc. and Allied Specialty Care Services, Inc., incorporated                by                reference to Exhibit 10.1 filed with the Company’s Form 10QSB for the                quarter ended September 30, 2000. |
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| 10.15 | Satisfaction                of Debt Agreement among Horizon Blue Cross Blue Shield of New Jersey,                Horizon Healthcare of New Jersey, Inc., CareAdvantage Inc., CareAdvantage                Health Systems, Inc. and Contemporary Healthcare Management, Inc.,                incorporated by reference to Exhibit 10.1 filed on the Company’s Form 8-K                dated December 5, 2000 and filed on December 13,                2000. |
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| 10.16 | Amendment                dated March 26, 2001 to Satisfaction of Debt Agreement dated as of                November 1, 2000 among Horizon BCBSNJ, Horizon Healthcare of New                Jersey,                Inc., CareAdvantage, Inc., CareAdvantage Health Systems, Inc. and                Contemporary HealthCare Management, Inc, incorporated by reference                to                Exhibit 10.1 filed with the Company’s Form 10-QSB for the quarter ended                March 31, 2001. |
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| 10.17 | Service                Agreement dated as of January 1, 2000 between Blue Cross Blue Shield                of                Rhode Island, Coordinated Health Partners, Inc. and CareAdvantage                Health                Systems, Inc., incorporated by reference to Exhibit 10.2 filed with                the                Company’s Form 10-QSB for the quarter ended March 31,                2001. |
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| 10.18 | Amendment                dated as of August 9, 2001 to Satisfaction of Debt Agreement dated                as of                November 1, 2000 among Horizon BCBSNJ, Horizon Healthcare of New                Jersey,                Inc., CareAdvantage, Inc., CareAdvantage Health Systems, Inc. and                Contemporary Healthcare Management, Inc. incorporated by reference                to                Exhibit 10.1 filed with the Company’s Form 10-QSB for the quarter ended                June 30, 2001. |
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| 10.19 | Settlement                Agreement between CareAdvantage, Inc. and Horizon Blue Cross Blue                Shield                of New Jersey, effective as of October 1, 2004, incorporated by reference                to Exhibit 10.1 filed on the Company’s Form 8-K filed on October 1,                2004. |
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| 10.20 | 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. |
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| 10.21 | 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                10KSB 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. |
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| 10.22 | 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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| 10.23 | 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 10KSB 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. |
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| 10.24 | Second                Amendment to Services and License Agreement between the Company and                Kaiser, effective as of April 1, 2006, incorporated by reference                to                Exhibit 10.52 filed with the Company’s Form 10KSB 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. |
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| 10.25 | 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. |
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| 10.26 | 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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| 10.27 | 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. |
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| 10.28 | Amendment                to Employment Agreement between the Company and Dennis J. Mouras,                dated as                of November 20, 2007, incorporated by reference to Exhibit 10.1 filed                on                the Company’s Form 8-K filed on November 26,                2007. |
|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.29 | Data                Services License Agreement between the Registrant and 3M Company                dated                April 8, 2003, as amended, incorporated by reference to Exhibit 10.57                filed with the Company’s Form 10KSB for the year ended December 31, 2007.                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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| 10.30 | Services                and License Agreement between the Company and Blue Cross Blue Shield                of                Vermont made as of September 1, 2004, as amended, incorporated by                reference to Exhibit 10.58 filed with the Company’s Form 10KSB for the                year ended December 31, 2007. 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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| 10.31 | Third                Amended and Restated Service Agreement between the Company and Blue                Cross                Blue Shield of Vermont made as of April 1, 2001, as amended, incorporated                by reference to Exhibit 10.59 filed with the Company’s Form 10KSB for the                year ended December 31, 2007. 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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| 10.32 | Third                Amendment of Lease Agreement between CareAdvantage Health Systems,                Inc.                and SMIII Woodbridge Plaza, LLC dated March 26, 2008 incorporated                by                reference to Exhibit 10.60 filed with the Company’s Form 10KSB for the                year ended December 31, 2007. |
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| 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* |
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| 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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