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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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MIC-Info: RSA-MD5,RSA,
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<SEC-DOCUMENT>0001144204-07-005211.txt : 20070205
<SEC-HEADER>0001144204-07-005211.hdr.sgml : 20070205
<ACCEPTANCE-DATETIME>20070205124830
ACCESSION NUMBER:		0001144204-07-005211
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20070126
FILED AS OF DATE:		20070205
DATE AS OF CHANGE:		20070205

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			PACE HEALTH MANAGEMENT SYSTEMS INC
		CENTRAL INDEX KEY:			0000943324
		STANDARD INDUSTRIAL CLASSIFICATION:	BLANK CHECKS [6770]
		IRS NUMBER:				421297992
		STATE OF INCORPORATION:			IA
		FISCAL YEAR END:			1231

	BUSINESS ADDRESS:	
		STREET 1:		1025 ASHWORTH RD
		STREET 2:		STE 200
		CITY:			WEST DES MOINES
		STATE:			IA
		ZIP:			50265
		BUSINESS PHONE:		5152221717

	MAIL ADDRESS:	
		STREET 1:		1025 ASHWORTH RD
		STREET 2:		SUITE 200
		CITY:			W DES MOINES
		STATE:			IA
		ZIP:			50265

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			PAPPAJOHN JOHN
		CENTRAL INDEX KEY:			0000897464

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-27554
		FILM NUMBER:		07579357

	BUSINESS ADDRESS:	
		STREET 1:		C/O EQUITY DYNAMICS
		STREET 2:		2116 FINANCIAL CENTER
		CITY:			DES MOINES
		STATE:			IA
		ZIP:			50309
		BUSINESS PHONE:		631-870-5100

	MAIL ADDRESS:	
		STREET 1:		1660 WALT WHITMAN ROAD
		STREET 2:		SUITE 105
		CITY:			MELVILLE
		STATE:			NY
		ZIP:			11747
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>v064453_ex.xml
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2007-01-26</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <issuer>
        <issuerCik>0000943324</issuerCik>
        <issuerName>PACE HEALTH MANAGEMENT SYSTEMS INC</issuerName>
        <issuerTradingSymbol>PCES</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0000897464</rptOwnerCik>
            <rptOwnerName>PAPPAJOHN JOHN</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>PACE HEALTH MANAGEMENT SYSTEMS, INC.</rptOwnerStreet1>
            <rptOwnerStreet2>2116 FINANCIAL CENTER, 666 WALNUT STREET</rptOwnerStreet2>
            <rptOwnerCity>DES MOINES</rptOwnerCity>
            <rptOwnerState>IA</rptOwnerState>
            <rptOwnerZipCode>50309</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>1</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>Common Stock</value>
            </securityTitle>
            <transactionDate>
                <value>2007-01-26</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>A</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>1356522</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>0.50</value>
                    <footnoteId id="F1"/>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>2331740</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </nonDerivativeTransaction>
    </nonDerivativeTable>

    <derivativeTable>
        <derivativeHolding>
            <securityTitle>
                <value>Series A Convertible  Preferred Stock</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <footnoteId id="F2"/>
            </conversionOrExercisePrice>
            <exerciseDate>
                <footnoteId id="F3"/>
            </exerciseDate>
            <expirationDate>
                <footnoteId id="F4"/>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>3000000</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>1500000</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </derivativeHolding>
    </derivativeTable>

    <footnotes>
        <footnote id="F1">The 1,356,522 shares of common stock were issued in exchange for $678,261 of accrued but unpaid dividends on the Series A
 Preferred Stock of the Issuer held by the reporting person.  Pursuant to the Issuer's Articles of Incorporation, these
 dividends were converted into common stock on a two shares per dollar basis.</footnote>
        <footnote id="F2">Each share of the Series A Convertible Preferred Stock is convertible to two shares of common stock.</footnote>
        <footnote id="F3">The Series A Convertible Preferred Stock is convertible upon issuance.</footnote>
        <footnote id="F4">None</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>/s/ John Pappajohn</signatureName>
        <signatureDate>2007-02-05</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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