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FORM 10-C

SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549

REPORT BY ISSUER OF SECURITIES QUOTED ON THE NASDAQ STOCK
MARKET(SM), FILED PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 AND RULE 13a-17 OR 15d-17
THEREUNDER.

EXACT NAME OF ISSUER AS SPECIFIED IN CHARTER: HEALTH MANAGEMENT
SYSTEMS, INC.
                                            
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ADDRESS OF PRINCIPAL EXECUTIVE OFFICES: 401 Park Avenue South
New York, New York 10016
                                      
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ISSUER'S TELEPHONE NUMBER (INCLUDING AREA CODE): (212) 685-4545
                                               
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I. CHANGE IN NUMBER OF SHARES OUTSTANDING

Indicate any change (increase or decrease) of five percent or
more in the number of shares outstanding:

1. Title of security: common stock, par value, $0.01 per share
                   
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2. Number of shares outstanding before the change:  10,683,188
(as of 11/30/95)
                                                
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3. Number of shares outstanding after the change: See item 5.
                                               
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4. Effective date of change 12/29/95 (stock split - see
description in item 5)  4/29/96 (merger -see description in item
5)                       
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5. Method of change
                  
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Specify method (such as merger, acquisition, exchange,
distribution, stock split, reverse split, acquisition of stock
for treasury etc.):                            
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Give brief description of transaction.  On 12/29/95 the Company
completed a 3 for 2 stock split in the form of a 50% stock
dividend which increased the number of outstanding shares from
10,683,188 to 16,024,782.  16,490,825 shares were outstanding as
of 3/31/96.  On 4/29/96, the Company issued 460,000 shares in
connection with a merger by its subsidiary with CDR Associates,
Inc.

II. CHANGE IN NAME OF ISSUER

1. Name prior to change 
                      
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2. Name after change
                   
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3. Effective date of charter amendment changing name
                                                   
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4. Date of shareholder approval of change, if required
                                                     
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June 19, 1996      /s/ Gregory K. Schraer, Controller
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DATE              OFFICER'S SIGNATURE AND TITLE