<PAGE>

                                                                   EXHIBIT 10.19

[LOGO - 1 SEAFIRST]

                            BUSINESS LOAN AGREEMENT

                                    Part A

This Seafirst Business Loan Agreement ("Agreement") is made as of June 1, 1996
between Bank of America NW, N.A., doing business as Seafirst Bank, ("Bank") and
PHAMIS, Inc. ("Borrower") with respect to the following:
------------

LINE OF CREDIT              Subject to the terms of this Agreement, Bank will
--------------              make loans to Borrower under a revolving line of
                            credit as follows:
Total Amount
Available:                  Borrower may borrow, repay and reborrow up to a
---------                   maximum of Five Million Dollars ($5,000,000.00).
                                                             -------------
Availability
Period:                        Date of Note   through    June 1, 1998  .
------                      ------------------       ------------------
                            However, if loans are made and/or new promissory
                            notes executed after the last date, such advances
                            will be subject to the terms of this Agreement until
                            repaid in full unless a written statement signed by
                            the Bank and Borrower provides otherwise, or a
                            replacement loan agreement is executed.  The making
                            of such additional advances alone, however, does
                            not constitute a commitment by the Bank to make any
                            further advances or extend the availability period.

Interest Rate:              As set forth in the Note required under Part B,
-------------               Article 1 of this Agreement (the "Note").

Interest
Rate Basis:                 All interest will be calculated at the per annum
----------                  interest rate based on a 360-day year and applied to
                            the actual number of days elapsed.

Prepayment:                 Bank may assess a prepayment fee in the event of a
----------                  a partial or complete prepayment.  Such prepayment
                            fee will be fully defined and disclosed to Borrower
                            at the time the interest rate is fixed.

Conversion Fee:             On the "Conversion Date" set forth in the Note,
--------------              Borrower shall pay the conversion fee described
                            therein; provided that no conversion fee shall be
                            due if Borrower pays the Note in full at the end of
                            the revolving period without converting to the "Term
                            Period" as defined in the Note.

Fee on Unutilized
Portion of Line:            On June 30, 1996 and every quarter thereafter,
---------------             ----------------           -------
                            Borrower shall pay a fee based upon the average
                            daily unused portion of the line of credit.  This
                            fee is calculated as follows:  1/4 of 1.00% per
                                                           ----------------
                            annum, payable quarterly in arrears.  This nonusage
                            -----------------------------------
                            fee shall cease to accrue on the Conversion Date (as
                            defined above).  Borrower shall pay to Bank on the
                            Conversion Date the remaining accrued but unpaid
                            nonusage fee.

Repayment:                  At the times and in amounts as set forth in note(s)
---------                   required under Part B Article 1 of this Agreement.

Collateral:                 Unsecured.
----------

Rev. 11/93
                                    Page 1
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[LOGO]

                            BUSINESS LOAN AGREEMENT

                                    Part B


1.  PROMISSORY NOTE(S).  All loans shall be evidenced by promissory notes in a
    form and substance satisfactory to Bank.

2.  CONDITIONS TO AVAILABILITY OF LOAN/LINE OF CREDIT. Before Bank is obligated
    to disburse/make any advance, or at any time thereafter which Bank deems
    necessary and appropriate, Bank must receive all of the following, each of
    which must be in form and substance satisfactory to Bank ("loan documents"):

    2.1  Original, executed promissory note(s);
    2.2  Original executed security agreement(s) and/or deed(s) of trust
         covering the collateral described in Part A; N/A
    2.3  All collateral described in Part A in which Bank wishes to have a
         possessory security interest; N/A
    2.4  Financing statement(s) executed by Borrower; N/A/
    2.5  Such evidence that Bank may deem appropriate that the security
         interests and liens in favor of Bank are valid, enforceable, and prior
         to the rights and interests of others except those consented to in
         writing by Bank; N/A
   +2.6  The following guaranty(ies) in favor of the Bank: N/A
   +2.7  Subordination agreement(s) in favor of Bank executed by: N/A
    2.8  Evidence that the execution, delivery, and performance by Borrower of
         this Agreement and the execution, delivery, and performance by Borrower
         and any corporate guarantor or corporate subordinating creditor of any
         instrument or agreement required under this Agreement, as appropriate,
         have been duly authorized;
    2.9  Any other document which is deemed by the Bank to be required from time
         to time to evidence loans or to effect the provisions of this
         Agreement;
    2.10 If requested by Bank, a written legal opinion expressed to Bank, of
         counsel for Borrower as to the matters set forth in sections 3.1 and
         3.2, and to the best of such counsel's knowledge after reasonable
         investigation, the matters set forth in sections 3.3, 3.5, 3.6, 3.7,3.8
         and such other matters as the Bank may reasonably request; N/A
    2.11 Pay or reimburse Bank for any out-of-pocket expenses expended in making
         or administering the loans made hereunder including without limitation
         attorney's fees (including allocated costs of in-house counsel);
   +2.12 Other (describe):  N/A



                                    Page 2




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3.   Representations and Warranties. Borrowers represents and warrants to Bank,
     except as Borrower has disclosed to Bank in writing, as of the date of this
     Agreement and hereafter so long as credit granted under this Agreement is
     available and until full and final payment of all sums outstanding under
     this Agreement and promissory notes that:

     +3.1  Borrower is duly organized and existing under the laws of the state
           of its organization as a:

                                General         Limited           Sole
            X Corporation     Partnership     Partnership     Proprietorship
           ---             ---             ---             ---
                           dba-----------

           Borrower is properly licensed and in good standing in each state in
           which Borrower is doing business and Borrower has qualified under,
           and complied with, where required, the fictitious or trade name
           statutes of each state in which Borrower is doing business, and
           Borrower has obtained all necessary government approvals for its
           business activities; the execution, delivery, and performance of this
           Agreement and such notes and other instruments required herein are
           within Borrower's powers, have been duly authorized, and, as to
           Borrower and any guarantor, are not in conflict with the terms of any
           charter, bylaw, or other organization papers of Borrower, and this
           Agreement, such notes and the loan documents are valid and
           enforceable according to their terms;
      3.2  The execution, delivery, and performance of this Agreement, the loan
           documents and any other instruments are not in conflict with any law
           or any indenture, agreement or undertaking to which Borrower is a
           party or by which Borrower is bound or affected;
      3.3  Borrower has title to each of the properties and assets as reflected
           in its financial statements (except such assets which have been sold
           or otherwise disposed of in the ordinary course of business), and no
           assets or revenues of the Borrower are subject to any lien except as
           required or permitted by this Agreement, disclosed in its financial
           statements or otherwise previously disclosed to Bank in writing;
      3.4  All financial information, statements as to ownership of Borrower and
           all other statements submitted by Borrower to Bank, whether
           previously or in the future, are and will be true and correct in all
           material respects upon submission and are and will be complete upon
           submission insofar as may be necessary to give Bank a true and
           accurate knowledge of the subject matter thereof;
      3.5  Borrower has filed all tax returns and reports as required by law to
           be filed and has paid all taxes and assessments applicable to
           Borrower or to its properties which are presently due and payable,
           except those being contested in good faith;
      3.6  There are no proceedings, litigation or claims (including unpaid
           taxes) against Borrower pending or, to the knowledge of the Borrower,
           threatened, before any court or government agency, and no other event
           has occurred which may have a material adverse effect on Borrower's
           financial condition;
      3.7  There is no event which is, or with notice or lapse of time, or both,
           would be, an Event of Default (as defined in Section 7) under this
           Agreement;
      3.8  Borrower has exercised due diligence in inspecting Borrower's
           properties for hazardous wastes and hazardous substances. Except as
           otherwise previously disclosed and acknowledged to Bank in writing:
           (a) during the period of Borrower's ownership of Borrower's
           properties, there has been no use, generation, manufacture, storage,
           treatment, disposal, release or threatened release of any hazardous
           waste or hazardous substance by any person in, on, under or about any
           Borrower's properties: (b) Borrower has no actual or constructive
           knowledge that there has been any use, generation, manufacture,
           storage, treatment, disposal, release or threatened release of any
           hazardous waste or hazardous substance by any person in, on, under or
           about any of Borrower's properties by any prior owner or occupant of
           any of Borrower's properties; and (c) Borrower has no actual or
           constructive notice of any actual or threatened litigation or claims
           of any kind by any person relating to such matters. The terms
           "hazardous waste(s)," "hazardous substance(s)," "disposal,"
           "release," and "threatened release" as used in this Agreement shall
           have the same meanings as set forth in the Comprehensive
           Environmental Response, Compensation, and Liability Act of 1980, as
           amended, 42 U.S.C. Section 9601, et seq., the Superfund Amendments
           and Reauthorization Act of 1986, as amended, Pub. L. No. 99-499, the
           Hazardous Materials Transportation Act, as



                                    Page 3

<PAGE>

        amended, 49 U.S.C.Section 1801, et seq., the Resource Conservation and
        Recovery Act, as amended, 49 U.S.C. Section 6901, et seq., or other
        applicable state or federal laws, rules or regulations adopted pursuant
        to any of the foregoing.
 3.9    Each chief place of business of Borrower, and the office or offices
        where Borrower keeps its records concerning any of the collateral is
        located at: N/A

 4.     Affirmative Covenants. So long as credit granted under this Agreement is
 available and until full and final payment of all sums outstanding under this
 Agreement and promissory note(s) Borrower will:

+4.1    Use the proceeds of the loans covered by this Agreement only in
        connection with Borrower's business activities and exclusively for the
        following purposes: Working capital and general corporate purposes.
                            ----------------------------------------------
+4.2    Maintain current assets in an amount at least equal to 1.50 times
                                                               ----
        current liabilities. Current assets and current liabilities shall be
        determined in accordance with generally accepted accounting principles
        and practices, consistently applied;
+4.3    Maintain on a quarterly basis a tangible net worth of at least
        $24,000,000 until December 31, 1997 at which time Borrower shall
        ----------------------------------------------------------------
        maintain a tangible net worth of at least $27,000,000 thereafter and not
        ----------------------------------------------------------------
        permit Borrower's total indebtedness which is not subordinated in a
        manner satisfactory to Bank to exceed 1.20 times Borrower's tangible net
                                              ----
        worth. "Tangible net worth" means the excess of total assets over total
        liabilities, excluding, however, from the determination of total assets
        (a) all assets which should be classified as intangible assets such as
        goodwill, patents, trademarks, copyrights, franchises, and deferred
        charges (including unamortized debt discount and research and
        development costs), (b) treasury stock, (c) cash held in a sinking or
        other similar fund established for the purpose of redemption or other
        retirement of capital stock, (d) to the extent not already deducted from
        total assets, reserves for depreciation, depletion, obsolescence or
        amortization of properties and other reserves or appropriations of
        retained earnings which have been or should be established in connection
        with the business conducted by the relevant corporation, and (e) any
        revaluation or other write-up in book value of assets subsequent to the
        fiscal year of such corporation last ended at the date of this
        Agreement;
 4.4    N/A
+4.5    Promptly give written notice to Bank of: (a) all litigation and claims
        made or threatened affecting Borrower where the amount is $500,000 or
                                                                  --------
        more; (b) any substantial dispute which may exist between Borrower and
        any governmental regulatory body or law enforcement authority; (c) any
        Event of Default under this Agreement or any other agreement with Bank
        or any other creditor or any event which become an Event of Default; and
        (d) any other matter which has resulted or might result in a material
        adverse change in Borrower's financial condition or operations;
+4.6    Borrower shall as soon as available, but in any event within 120 days
                                                                     ---
        following the ended of each Borrower's fiscal years and within 45 days
                                                                       --
        following the end of each quarter provide to Bank, in a form
                                  -------
        satisfactory to Bank such financial statements, Form 10-K Reports and
        Form 10-Q Reports and other information respecting the financial
        condition and operations of Borrower as Bank may reasonably request.
        Borrower's fiscal year financial statement shall be audited by an
        independent certified public accounting firm and bear an unqualified
        opinion.
 4.7    Borrower will maintain in effect insurance with responsible insurance
        companies in such amounts and against such risks as is customarily
        maintained by persons engaged in businesses similar to that of Borrower
        and all policies covering property given as security for the loans shall
        have loss payable clauses in favor of Bank. Borrower agrees to deliver
        to Bank such evidence of insurance as Bank may reasonably require and,
        within thirty (30) days after notice from Bank, to obtain such
        additional insurance with an insurer satisfactory to the Bank;
 4.8    Borrower will pay all indebtedness taxes and other obligations for which
        the Borrower is liable or to which its income or property is subject
        before they shall become delinquent, except any which is being contested
        by the Borrower in good faith;
 4.9    Borrower will continue to conduct its business as presently constituted,
        and will maintain and preserve all rights, privileges and franchises now
        enjoyed, conduct Borrower's

                                    Page 4






<PAGE>

           business in an orderly, efficient and customary manner, keep all
           Borrowers properties in good working order and condition, and from
           time to time make all needed repairs, renewals or replacements so
           that the efficiency of Borrower's properties shall be fully
           maintained and preserved;
      4.10 Borrower will maintain adequate books, accounts and records and
           prepare all financial statements required hereunder in accordance
           with generally accepted accounting principles and practices
           consistently applied, and in compliance with the regulations of any
           governmental regulatory body having jurisdiction over Borrower or
           Borrower's business;
      4.11 Borrower will permit representatives of Bank to examine and make
           copies of the books and records of Borrower and to examine the
           collateral of the Borrower at reasonable times;
      4.12 Borrower will perform, on request of Bank, such acts as may be
           necessary or advisable to perfect any lien or security interest
           provided for herein or otherwise carry out the intent of this
           Agreement;
      4.13 Borrower will comply with all applicable federal, state
           and municipal laws, ordinances, rules and regulations relating to its
           properties, charters, businesses and operations, including compliance
           with all minimum funding and other requirements related to any of
           Borrower's employee benefit plans.
      4.14 Borrower will permit representatives of Bank to enter onto Borrower's
           properties to inspect and test Borrower's properties as Bank, in its
           sole discretion, may deem appropriate to determine Borrower's
           compliance with section 5.8 of this Agreement; provided however, that
           any such inspections and tests shall be for Bank's sole benefit and
           shall not be construed to create any responsibility or liability on
           the part of Bank to Borrower or to any third party.
      4.15 In the event Borrower elects to convert the loan represented by the
           Note from a revolving loan to a term loan, Borrower shall maintain
           minimum Cash Flow coverage of at least 1.20:1. Cash Flow coverage
           shall be defined as Net Income plus Depreciation and Amortization
           divided by scheduled principal payments of long-term debt plus
           interest expense on a four quarter trailing average, tested
           quarterly.

5.    Negative Covenants. So long as credit granted under this Agreement is
      available and until full and final payment of all sums outstanding under
      this Agreement and promissory note(s):
     +5.1  N/A;
      5.2  Borrower will not, without the prior written consent of Bank,
           mortgage, assign, or otherwise encumber any of Borrower's assets, nor
           sell, transfer or otherwise hypothecate any such assets except in the
           ordinary course of business. Borrower shall not guaranty, endorse,
           co-sign, or otherwise become liable upon the obligations of others,
           except by the endorsement of negotiable instruments for deposit or
           collection in the ordinary course of business. For purposes of this
           paragraph, the sale or assignment of accounts receivable, or the
           granting of a security interest therein, shall be deemed the
           incurring of indebtedness for borrowed money.
     +5.3  N/A;
      5.4  Borrower will not, without Bank's prior written consent, declare any
           dividends on shares of its capital stock, or apply any of its assets
           to the purchase, redemption or other retirement of such shares, or
           otherwise amend its capital structure;
     +5.5  N/A;
      5.6  Borrower will not liquidate or dissolve or enter into any
           consolidation, merger, pool, joint venture, syndicate or other
           combination, or sell, lease, or dispose of Borrower's business assets
           as a whole or such as in the opinion of Bank constitute a substantial
           portion of Borrower's business or assets;
      5.7  Borrower will not engage in any business activities or operations
           substantially different from or unrelated to present business
           activities or operations; and
      5.8  Borrower, and Borrower's tenants, contractors, agents or other
           parties authorized to use any of Borrower's properties, will not use,
           generate, manufacture, store, treat, dispose of, or release any
           hazardous substance or hazardous waste in, on, under or about any of
           Borrower's properties, except as previously disclosed to Bank in
           writing as provided in section 3.8; and any such activity shall be
           conducted in compliance with all applicable federal, state and local
           laws, regulations and ordinances, including without limitation those
           described in section 3.8.



Rev. 11/93
                                    Page 5







<PAGE>

6.    Waiver, Release and Indemnification.  Borrower hereby:

      (a) releases and waives any claims against Bank for indemnity or
      contribution in the event Borrower becomes liable for cleanup or other
      costs under any of the applicable federal, state or local laws,
      regulations or ordinances, including without limitation those described in
      section 3.8, and (b) agrees to indemnify and hold Bank harmless from and
      against any and all claims, losses, liabilities, damages, penalties and
      expenses which Bank may directly or indirectly sustain or suffer resulting
      from a breach of (i) any of Borrower's representations and warranties with
      respect to hazardous wastes and hazardous substances contained in section
      3.8, or (ii) section 5.8. The provisions of this section 6 shall survive
      the full and final payment of all sums outstanding under this Agreement
      and promissory notes and shall not be affected by Bank's acquisition of
      any interest in any of the Borrower's properties, whether by foreclosure
      or otherwise.

7.   Events of Default. The occurrence of any of the following events ("Events
     of Default") shall terminate any and all obligations on the part of Bank to
     make or continue the loan and/or line of credit and, at the option of Bank,
     shall make all sums of interest and principal outstanding under the loan
     and/or line of credit immediately due and payable, without notice of
     default, presentment or demand for payment, protest or notice of non
     payment or dishonor, or other notices or demands of any kind or character,
     all of which are waived by Borrower, and Bank may proceed with collection
     of such obligations and enforcement and realization upon all security which
     it may hold and to the enforcement of all rights hereunder or at law:

     7.1  The Borrower shall fail to pay when due any amount payable by it
          hereunder on any loans or notes executed in connection herewith;
     7.2  Borrower shall fail to comply with the provisions of any other
          covenant, obligation or term of this Agreement for a period of fifteen
          (15) days after the earlier of written notice thereof shall have been
          given to the Borrower by Bank or Borrower or any Guarantor has
          knowledge of an Event of Default or an event that can become an Event
          of Default;
     7.3  Borrower shall fail to pay when due any other obligation for borrowed
          money, or to perform any term or covenant on its part to be performed
          under any agreement relating to such obligation or any such other debt
          shall be declared to be due and payable and such failure shall
          continue after the applicable grace period;
     7.4  Any representation or warranty made by Borrower in this Agreement or
          in any other statement to Bank shall prove to have been false or
          misleading in any material respect when made;
     7.5  Borrower makes an assignment for the benefit of creditors, files a
          petition in bankruptcy, is adjudicated insolvent or bankrupt,
          petitions to any court for a receiver or trustee for Borrower or any
          substantial part of its property, commences any proceeding relating to
          the arrangement, readjustment, reorganization or liquidation under any
          bankruptcy or similar laws, or if there is commenced against the
          Borrower any such proceedings which remain undismissed for a period of
          thirty (30) days or, if Borrower by any act indicates its consent or
          acquiescence in any such proceeding or the appointment of any such
          trustee or receiver;
    +7.6  Any judgment attaches against Borrower or any of its properties for an
          amount in excess of $500,000 which remains unpaid, unstayed on appeal,
                              --------
          unbonded, or undismissed for a period of thirty (30) days;
     7.7  Loss of any required government approvals, and/or any governmental
          regulatory authority takes or institutes action which, in the opinion
          of Bank, will adversely affect Borrower's condition, operations or
          ability to repay the loan and/or line of credit;
     7.8  Failure of Bank to have a legal, valid and binding first lien on, or a
          valid and enforceable prior perfected security interest in, any
          property covered by any deed of trust or security agreement required
          under this Agreement;
     7.9  Borrower ceases to exist as a going concern;
     7.10 Occurrence of an extraordinary situation which gives Bank reasonable
          grounds to believe that Borrower may not, or will be unable to,
          perform it obligations under this or any other agreement between Bank
          and Borrower; or
     7.11 Any of the preceding events occur with respect to any guarantor of
          credit under this Agreement, or such guarantor dies or becomes
          incompetent, unless the obligations arising under the guaranty and
          related agreements have been unconditionally assumed by the
          guarantor's estate in a manner satisfactory to Bank.



Rev. 11/93                        Page 6

<PAGE>

  8.  SUCCESSORS; WAIVERS. Notwithstanding the Events of Default above, this
      Agreement shall be binding upon and inure to the benefit of Borrower and
      Bank, their respective successors and assigns, except that Borrower may
      not assign its rights hereunder. No consent or waiver under this Agreement
      shall be effective unless in writing and signed by the Bank and shall not
      waive or affect any other default, whether prior or subsequent thereto,
      and whether of the same or different type. No delay or omission on the
      part of the Bank in exercising any right shall operate as a waiver of such
      right or any other right.

  9.  ARBITRATION.
      9.1  At the request of either Bank or Borrower any controversy or claim
           between the Bank and Borrower, arising from or relating to this
           Agreement or any Loan Document executed in connection with this
           Agreement or arising from any alleged tort shall be settled by
           arbitration in King County Washington. The United States Arbitration
           Act will apply to the arbitration proceedings which will be
           administered by the American Arbitration Association under its
           commercial rules of arbitration except that unless the amount of the
           claim(s) being arbitrated exceeds $5,000,000 there shall be only one
           arbitrator. Any controversy over whether an issue is arbitrable shall
           be determined by the arbitrator(s). Judgment upon the arbitration
           award may be entered in any court having jurisdiction. The
           institution and maintenance of any action for judicial relief or
           pursuit of a provisional or ancillary remedy shall not constitute a
           waiver of the right of either party, including plaintiff, to submit
           the controversy or claim to arbitration if such action for judicial
           relief is contested.
           For purposes of the application of the statute of limitations the
           filing of an arbitration as provided herein is the equivalent of
           filing a lawsuit and the arbitrator(s) will have the authority to
           decide whether any claim or controversy is barred by the statute of
           limitations, and if so, to dismiss the arbitration on that basis. The
           parties consent to the joinder in the arbitration proceedings of any
           guarantor, hypothecator or other party having an interest related to
           the claim or controversy being arbitrated.
      9.2  Notwithstanding the provisions of Section 9.1, no controversy or
           claim shall be submitted to arbitration without the consent of all
           parties if at the time of the proposed submission, such controversy
           or claim arises from or relates to an obligation secured by real
           property;
      9.3  No provision of this Section 9 shall limit the right of the Borrower
           or the Bank to exercise self-help remedies such as setoff,
           foreclosure or sale of any collateral, or obtaining any ancillary
           provisional or interim remedies from a court of competent
           jurisdiction before, after or during the pendency of any arbitration
           proceeding. The exercise of any such remedy does not waive the right
           of either party to request arbitration. At Bank's option foreclosure
           under any deed of trust may be accomplished by exercise of the power
           of sale under the deed of trust or judicial foreclosure as a
           mortgage.

 10.  COLLECTION ACTIVITIES, LAWSUITS AND GOVERNING LAW. Borrower agrees to pay
      Bank all costs and expenses (including reasonable attorney's fees and the
      allocated cost for in-house legal services incurred by Bank), to enforce
      this Agreement, any notes or any Loan Documents pursuant to this
      Agreement, whether or not suit is instituted. If suit is instituted by
      Bank to enforce this Agreement or any of these documents, Borrower
      consents to the personal jurisdiction of the Courts of the State of
      Washington and Federal Courts located in the State of Washington. Borrower
      further consents to the venue of this suit, being laid in King County,
      Washington. This Agreement and any notes and security agreements entered
      into pursuant to this Agreement shall be construed in accordance with the
      laws of the State of Washington.

+11.  ADDITIONAL PROVISIONS. Borrower agrees to the additional provisions set
      forth immediately following this Section 11 or on any Exhibit attached to
      and hereby incorporated into Agreement. This Agreement supersedes all oral
      negotiations or agreements between Bank and Borrower with respect to the
      subject matter hereof and constitutes the entire understanding and
      Agreement of the matters set forth in this Agreement.

      11.1  If any provision of this Agreement is held to be invalid or
            unenforceable, then (a) such provision shall be deemed modified if
            possible, or if not possible, such provision shall be deemed
            stricken, and (b) all other provisions shall remain in full force
            and effect.
      11.2  If the imposition of or any change in any law, rule, or regulation
            guideline or the interpretation or application of any thereof by any
            court of administrative or governmental

                                    Page 7



<PAGE>

       authority (including any request or policy whether or not having the
       force of law) shall impose or modify any taxes (except U.S. federal,
       state or local income or franchise taxes imposed on Bank), reserve
       requirements, capital adequacy requirements or other obligations which
       would: (a) increase the cost to Bank for extending or maintaining any
       loans and/or line of credit to which this Agreement relates, (b) reduce
       the amounts payable to Bank under this Agreement, such notes and other
       instruments, or
       (c) reduce the rate of return on Bank's capital as a consequence of
       Bank's obligations with respect to any loan and/or line of credit to
       which this Agreement relates, then Borrower agrees to pay Bank such
       additional amounts as will compensate Bank therefor, within five (5) days
       after Bank's written demand for such payment, which demand shall be
       accompanied by an explanation of such imposition or charge and a
       calculation in reasonable detail of the additional amounts payable by
       Borrower, which explanation and calculations shall be conclusive, absent
       manifest error.
 11.3  Bank may sell participations in or assign this loan in whole or in part
       without notice to Borrower and Bank may provide information regarding the
       Borrower and this Agreement to any prospective participant or assignee.
       If a participation is sold or the loan is assigned the purchaser will
       have the right of set off against the Borrower and may enforce its
       interest in the Loan irrespective of any claims or defenses the Borrower
       may have against the Bank.

12.  Notices. Any notices shall be given in writing to the opposite party's
     signature below or as that party may otherwise specify in writing.

13.  ORAL AGREEMENTS OR ORAL COMMITMENTS TO LOAN MONEY, EXTEND CREDIT, OR TO
     -----------------------------------------------------------------------
     FOREBEAR FROM ENFORCING REPAYMENT OF A DEBT ARE NOT ENFORCEABLE UNDER
     ---------------------------------------------------------------------
     WASHINGTON LAW.
     ---------------

This Business Loan Agreement (Parts A and B) executed by the parties on
_____________, 1996. Borrower acknowledges having read all of the provisions of
this Agreement and Borrower agrees to its terms.

SEAFIRST BANK
Western Commercial Banking Division, Team 2


By:  -------------------------------
     Steven E. Melby, Vice President


Address:   10500 N.E. 8th Street, Suite 500
           Bellevue, WA 98004
Phone:     (206) 585-6390
Fax:       (206) 585-6393

PHAMIS, INC.


By:  ------------------------------- Title:  -----------------------------


By:  ------------------------------- Title:  -----------------------------


Address:   1001 Fourth Avenue Plaza
           Reception Suite 1500
Phone:     (206) 622-9558
Fax:       (206) 622-0889



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[LOGO OF SEAFIRST BANK]

                                                     LOAN MODIFICATION AGREEMENT
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This agreement amends the REVOLVING NOTE dated June 7, 1995 ("Note") executed by
PHAMIS, INC. (together if more than one "Borrower") in favor of Bank of America
NW, N.A. doing business as SEAFIRST BANK, successor by name change to Seattle-
First National Bank ("Bank"), regarding a loan in the maximum principal amount
of $5,000,000.00 (the "Loan"). All references to "Seattle-First National Bank"
in any of the loan documents entered into by Borrower with regard to the Loan
are hereafter deemed to be references to Bank. For mutual consideration,
Borrower and Bank agree to amend the Note as follows:

     1.  Maturity Date.  The maturity date of the Note is changed to June 1,
         -------------
     1998. Bank's commitment to make advances to Borrower under its line of
     credit is also extended to June 1, 1998.

     2.  Other Terms. Except as specifically amended by this agreement or any
         -----------
     prior amendment, all other terms, conditions, and definitions of the Note,
     and all other security agreements, guaranties, deeds of trust, mortgages,
     and other instruments or agreements entered into with regard to the Loan
     shall remain in full force and effect.


This agreement is dated May 29, 1996.


Bank:  SEAFIRST BANK

By:  /s/ Steven E. Melby
   -------------------------------------------

Name:  Steven E. Melby
     -----------------------------------------

Title:  Vice President
      ----------------------------------------

Borrower:  PHAMIS, INC.

Signature:  /s/ Frank T. Sample
          ------------------------------------

By:  Frank T. Sample
   -------------------------------------------

Title:  President & C.E.O.
      ----------------------------------------