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)
                                  MAY 17, 1995
                                 (MAY 16, 1995)


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


                                    DELAWARE
                    (State or Jurisdiction of Incorporation)



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


    301 PERIMETER CENTER NORTH
          ATLANTA, GA                                    30346
 (Address of principal executive offices)              (Zip Code)

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


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ITEM 5.  OTHER EVENTS

The Company announced on May 16, 1995, that it has signed a definitive agreement
to acquire the Health Systems Group (HSG) of First Data Corporation in exchange
for approximately 4 million shares of stock.  The transaction will be accounted
for as a purchase of assets.


ITEM 7.  FINANCIAL STATEMENTS AND EXHIBITS

Press release dated May 16, 1995, announcing the agreement.


                                        HBO & COMPANY
                                        (Registrant)

Dated:  May 16, 1995

                                        /s/ Timothy S. Heyerdahl
                                        ---------------------------------------
                                        Timothy S. Heyerdahl
                                        Vice President-Controller and
                                        Chief Accounting Officer




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EX-99

NEWS RELEASE                                                  EXHIBIT 99

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

HBOC SIGNS DEFINITIVE AGREEMENT TO ACQUIRE FDC'S HEALTH SYSTEMS GROUP

     ATLANTA, May 16, 1995 - HBO & Company (Nasdaq:HBOC) today announced it has
signed a definitive agreement to acquire the Charlotte-based Health Systems
Group (HSG) of First Data Corporation.  HBOC will purchase HSG in exchange for
approximately 4 million shares of HBOC stock, and the transaction will be
accounted for as a purchase of assets.  Completion of the acquisition is subject
to regulatory approval and is expected to close in early June.

     HSG provides information systems and services to hospitals, medical group
practices and medical facilities throughout the United States, United Kingdom,
Australia, Puerto Rico and other countries.  The Health Systems Group had 1994
revenues of approximately $121 million and has more than 500 customers.

     "HSG brings to HBOC a similar vision, customer base and product set," said
Charles W. McCall, HBOC president and chief executive officer.  "By joining
forces, we'll have more resources to put toward delivering the best available
solutions in the healthcare information systems market."

     First Data Corporation chairman and chief executive officer Ric Duques said
HBOC's exclusive focus on healthcare information systems was a strong factor in
the decision to merge the Health Systems Group with HBOC.  "HBOC's track record
speaks for itself," said Duques.  "It has clearly demonstrated an ability to
address the business needs of an evolving marketplace by enabling healthcare
organizations and enterprises to prepare for what is yet to come."

     As part of the transaction, Duques will occupy a seat on HBOC's board of
directors.  HSG will operate as a business unit under the HBOC umbrella,
reporting to vice president James A. Gilbert.

     HBO & Company 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.

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