8-K

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

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                                    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): September 9, 1998


                      PACE HEALTH MANAGEMENT SYSTEMS, INC.
             (Exact name of registrant as specified in its charter)


           Iowa                         0-27554                  42-1297992
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(State or other jurisdiction          (Commission              (IRS employer
     of incorporation)                file number)           identification No.)


                 1025 Ashworth Road, West Des Moines, Iowa 50265
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                    (Address of principal executive offices)


       Registrant's telephone number, including area code: (515) 222-1717
                                                           --------------

                                 Not Applicable
                                 --------------
          (Former name or former address, if changed since last report)





Item 1.  Changes in Control of Registrant.

         Not applicable.

Item 2.  Acquisition or Disposition of Assets.

         Not applicable.

Item 3.  Bankruptcy or Receivership.

         Not applicable.

Item 4.  Changes in Registrant's Certifying Accountant.

         Not applicable.

Item 5.  Other Events.

         On September 9, 1998, Registrant filed Articles of Correction with the
Iowa Secretary, to correct an error in the Articles of Amendment filed by
Registrant on July 10, 1998 with respect to the Registrant's Convertible
Preferred Stock. See Exhibit 3.4 filed herewith.

Item 6.  Resignations of Registrant's Directors.

         Not applicable.

Item 7.  Financial Statements and Exhibits.

         Exhibit 3.4 -- Articles of Correction filed with the Iowa Secretary
of State on September 9, 1998.

         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 hereunto duly authorized.

                                 PACE HEALTH MANAGEMENT SYSTEMS, INC.


                                 By: /s/ Roger D. Huseman_______________________
                                     Roger D. Huseman
                                     Vice President and Chief Financial Officer

EX-3.4

                                                                     Exhibit 3.4


                             ARTICLES OF CORRECTION

                                       OF

                      PACE HEALTH MANAGEMENT SYSTEMS, INC.

TO THE SECRETARY OF STATE OF THE STATE OF IOWA:

     Pursuant to Section 124 of the Iowa Business Corporation Act (the
"Act"), the undersigned corporation adopts the following Articles of Correction.

1.   The name of the corporation is Pace Health Management Systems, Inc. (the
"Company").

2.   The document to be corrected is Articles of Amendment of the Company.

3.   The document to be corrected was filed with the Iowa Secretary of State on
July 10, 1998.

4.   Section 8 of these Articles of Amendment contained an incorrect statement, 
in that it stated that the Convertible Preferred Stock is entitled to one vote 
per share.

5.   The Articles of Amendment are incorrect because the Convertible Preferred
Stock is actually entitled to two votes per share.

6.   Section 8 of the Articles of Amendment, in its correct form, should
read as follows:

     SECTION 8. VOTING RIGHTS. Except as specified in Section 9 or as expressly
required by the Act, the holders of Convertible Preferred Stock shall be
entitled to two (2) votes per share and shall vote, together with the holders of
Common Stock as a single class, on all matters required or permitted to be
submitted to the shareholders of the Company.

Dated and effective as of the 8th day of September, 1998.

                                    PACE HEALTH MANAGEMENT SYSTEMS, INC.


                                    By /s/ Roger D. Huseman_____________________
                                       Roger D. Huseman, Chief Financial Officer