8-K

                                  UNITED STATES

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


                                    FORM 8-K


                                 CURRENT REPORT


                     Pursuant to Section 13 or 15(d) of the
                         Securities Exchange Act of 1934


                Date of Report (Date of earliest event reported):
                      October 2, 2000 (September 29, 2000)


                               DAOU SYSTEMS, INC.
             (Exact name of registrant as specified in its charter)


          Delaware                       0-22073                 33-0284454
(State or other jurisdiction     (Commission File Number)     (I.R.S. Employer
      of incorporation)                                      Identification No.)


                               5120 Shoreham Place
                           San Diego, California 92122
               (Address of principal executive offices) (Zip Code)


        Registrants telephone number, including area code: (858) 452-2221




ITEM 5.  OTHER EVENTS.

         DAOU Systems, Inc. hereby incorporates by reference herein its press
release dated September 29, 2000, a copy of which is attached hereto as Exhibit
99.1.

ITEM 7.  FINANCIAL STATEMENTS AND EXHIBITS

         (c)      Exhibits

         99.1     Press Release dated September 29, 2000.






                                    SIGNATURE


         Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.

                                      DAOU SYSTEMS, INC.


                                      By: /s/ Larry D. Grandia
                                          -------------------------------------
                                          Larry D. Grandia
                                          President and Chief Executive Officer


Date:  October 2, 2000

EX-99.1

                                                                  EXHIBIT 99.1

NEWS RELEASE


[DAOU SYSTEMS, INC. LOGO]


For Immediate Release


Contacts:         Larry D. Grandia
                  Chief Executive Officer and President
                  858-452-2221
                  www.daou.com


       DAOU SYSTEMS, INC. NAMES NEW CHIEF FINANCIAL OFFICER; RETAINS FIRM
           TO PROVIDE COUNSEL ON STRATEGIC OPTIONS FOR VALUE CREATION


San Diego, CA, September 29, 2000 -- DAOU Systems, Inc. (Nasdaq: DAOU) today
announced the resignation of Donald R. Myll, executive vice president and chief
financial officer, who is leaving the Company to pursue other professional and
personal interests. Neil Cassidy, formerly vice president of administrative
services and finance for the Company, will succeed Myll immediately as executive
vice president and chief financial officer. Myll will remain available to DAOU
on a consulting basis. DAOU also announced that it has retained Kibel Green Issa
Inc., a nationally recognized transition management consulting firm, to provide
counsel on strategic options for maximizing shareholder value.

Commenting on Myll's resignation, Larry D. Grandia, chief executive officer and
president of DAOU stated, "Don has helped guide DAOU through a period of
significant change as we consolidated the companies we acquired under our
strategy to broaden our service offerings in the health care information
technology (HIT) market. During his tenure, we successfully integrated numerous
sales, operating and administrative functions at the corporate level of DAOU,
reduced our operating expenses, and strengthened the mix of our business by
eliminating certain unprofitable contracts. In addition, Don was instrumental in
launching ENOSUS, our wholly owned subsidiary providing Internet professional
services to health care and non-health care companies. We value highly his
contributions to DAOU and wish him well in his future pursuits."

Added Grandia: "These have been and continue to be challenging times for the HIT
sector and for DAOU. As previously disclosed, we have been pursuing strategic
alternatives to maximizing shareholder value at DAOU, including a sale or
strategic combination of the Company. However, we now have discontinued all
discussions with potential buyers and strategic partners, and have decided to
reassess DAOU's future strategic and operational options in today's market
environment.


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"Accordingly," stated Grandia, "the board of directors has elected to retain a
firm with a skill set suited specifically for a transitional situation like DAOU
now faces. To provide the guidance and support necessary to chart and execute a
new course for DAOU," added Grandia, "we have retained Kibel Green Issa, a
nationally recognized firm that has served as advisors to over 1,000 clients
since 1984 in a variety of industries, including health care and IT professional
services. As part of the DAOU team, Kibel Green Issa will conduct a value
creation process that includes an in-depth assessment of DAOU's current market
and operational opportunities and challenges, the development of a strategic
value creation plan, and the implementation and monitoring of that value
creation plan."

"We look forward to the opportunity to work with DAOU Systems at this time of
transition for the Company," stated Steven J. Green, co-founder and president of
Kibel Green Issa. "We have successfully assisted many middle market companies
like DAOU in stabilizing operations and in creating and executing a vision and
plan for the future. We take a hands-on, interactive approach with management,
and anticipate a productive working relationship at DAOU that yields the best
possible solution for maximizing shareholder value."

Neil Cassidy joined DAOU in 1992 and was appointed vice president of finance in
1996. Commenting on Cassidy's appointment, Grandia stated, "Neil has been
instrumental in building DAOU's finance and administrative organization over the
last eight years. I am confident in his ability to play a leadership role in
DAOU's future."

DAOU Systems, Inc. is a provider of integrated Information Technology (IT)
solutions and services to the U.S. health care industry. DAOU's capabilities
range from up-front strategic consulting to IT system design, implementation and
long-term tactical support. DAOU's IT offerings include data, voice and video
networking, applications consulting and implementation, as well as operational
and Internet solutions. DAOU has approximately 500 employees, and has provided
services to more than 1,300 health care organizations, including many of the
nation's top 100 integrated delivery systems. More information about DAOU
Systems can be found at www.daou.com on the World Wide Web.


This press release contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. Such statements are only predictions and actual events or
results may differ materially. Forward-looking statements usually contain the
word "estimate," "anticipate," "believe," "expect," "plan" or similar
expressions. The forward-looking statements included herein are based on current
expectations and certain assumptions and entail various risks and uncertainties,
including risks and uncertainties relating to: the Company's ability to obtain
new customer contracts; the Company's ability to launch and manage successfully
its new eCommerce services to health care and non-health care customers,
including the hiring, retention and training of professionals dedicated to
eCommerce services; the management and integration of the Company's operations

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as it develops new service offerings and management practices and implements
staffing reorganizations; the ability of the Company to successfully execute
alternative options for realizing full shareholder value; and the effects of
health care industry consolidation and changes in the health care regulatory
environment on existing customer contracts and the Company's ability to obtain
new customer contracts. These uncertainties and risk factors and the matters set
forth in the Company's Annual Report on Form 10-K under the caption "Risk
Factors" and its other SEC filings could cause actual results to differ
materially from those indicated by these forward-looking statements.


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