8-K

                            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)
                                    FEBRUARY 24,  1995
                                   (February 22,  1995)


                                      HBO & Company
                   (Exact name of registrant as specified in its charter)


                                          DELAWARE
                      (State or other Jurisdiction of Incorporation)



                     0-9900                                 37-0986839
              (Commission File No.)            (IRS Employer Identification No.)

                             301 PERIMETER CENTER NORTH
                              ATLANTA, GEORGIA   30346

                (Address of principal executive offices)   (Zip Code)

                  Registrant's telephone number, including area code
                                   (404) 393-6000


                                     Page 1 of 3









ITEM 5.  OTHER EVENTS

The Company announced on February 22, 1995, that it has acquired Advanced
Laboratory Systems, Inc., a privately held developer of laboratory software
for the healthcare and commercial marketplace.


ITEM 7.  FINANCIAL STATEMENTS AND EXHIBITS

Press release dated February 22, 1995, announcing the acquisition.

                                     HBO & COMPANY
                                     (Registrant)

Date:  February 24, 1995


                                     /s/ Jay P. Gilbertson
                                     ---------------------------------
                                     Jay P. Gilbertson
                                     Vice President - Finance,
                                     Chief Financial Officer,
                                     Chief Accounting Officer,
                                     Treasurer and Assistant Secretary


                                     Page 2 of 3

EX-99

NEWS RELEASE


CONTACT:  MONIKA BROWN                  301 PERIMETER CENTER NORTH
          INVESTOR RELATIONS            ATLANTA, GA  30346
          (404) 668-5926


                  HBOC ACQUIRES ADVANCED LABORATORY SYSTEMS


     ATLANTA, February 22, 1995 -- HBO & Company (NASDAQ:HBOC) today announced
it has acquired Advanced Laboratory Systems, Inc. (ALS), a privately held
developer of laboratory software for the healthcare and commercial
marketplace.  With offices in Eugene, Ore., and Salt Lake City, Utah, ALS has
approximately 135 customers representing some 250 laboratories in the United
States and Canada, which brings the total number of HBOC laboratory customers
to more than 300.  ALS had 1994 revenues of $17.3 million and has
approximately 100 employees.  The transaction will be accounted for as a
purchase of assets.

     In addition to expanding HBOC's presence in the laboratory information
systems (LIS) market, ALS, through its AdVantage System, adds commercial,
hybrid and reference LIS capabilities to the HBOC product portfolio.

     "ALS has an impressive track record with a highly satisfied customer base
that includes some of the most prestigious healthcare organizations in the
country," said Charles W. McCall, HBOC president and chief executive officer.
"The robust functionality of the AdVantage System will make HBOC a stronger
contender for LIS business, particularly for organizations that are evolving
into enterprises or moving toward integrated delivery networks."

     ALS will operate as a business unit known as the Advanced Laboratory
Group under the leadership of its former president and CEO, Jack Holthaus.
Holthaus will now report to HBOC senior vice president Glenn N. Rosenkoetter.
Holthaus noted that the acquisition combines the strength of HBOC with ALS's
best-of-breed approach to laboratory information systems. "Our combined effort
will allow us to take full advantage of the growth and opportunities that
exist in the market today," he stated.

     In addition to complementary product lines and a shared vision for the
healthcare industry, Rosenkoetter stated that the ALS acquisition provides
opportunities for both organizations to further cultivate their knowledge and
expertise in developing high-quality laboratory systems that address all
players in the industry.  "HBOC continues to build a team of the best experts
in the industry," he said.   "Our product strength combined with a strong
commitment to quality and customer satisfaction will give us the edge we need
to make our presence felt in the LIS market."

     HBOC delivers enterprisewide patient care, clinical, financial and
strategic management software solutions, as well as networking technologies,
outsourcing and other services to healthcare organizations in the United
States, United Kingdom, Canada, Australia and New Zealand.

                                     ###