Health Systems Design Corporation
Ticker: HSDC 1330 Broadway
Exchange: NASDAQ-National Market Oakland, California 94612
Industry: High-Tech (510) 763-2629

Type of Shares:Common Shares Filing Date:1/5/96
U.S. Shares:1,700,000 Offer Date:3/5/96
Non-U.S. Shares:0 Filing Range:$9.00 - $11.00
Primary Shares:1,600,000 Offer Price:$13.00
Secondary Shares:100,000 Gross Spread:$0.91
Offering Amount: $17,000,000 Selling:$0.54
Expenses:$850,000 Reallowance:$0.10
Shares Out After:6,059,240

ManagerTierPhone
Volpe, Welty & CompanyLead Manager (415) 956-8120
Jefferies & Company IncorporatedCo-manager (800) 933-6656

Auditor: Arthur Andersen
Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
9/30/95 12/31/95 12/31/94 12/31/95
Revenue:$6.78$2.26$1.36Assets:$4.97
Net Income:-$0.75-$0.29-$0.04Liabilities:$5.17
EPS:-$0.16-$0.06-$0.01Equity:-$0.20

Note: Dollar amounts are in U.S. millions; Audited figures expressed as full year,
unaudited figures are partial year

Business Description
The company provides managed care information systems software to payors and providers of managed care services. The Company's Diamond product line consists of Diamond Client/Server and Diamond BBx. The Diamond products manage information about members, employer groups, providers, health plan and provider contracts, referrals and authorizations and health care services for accurate provider reimbursement, risk pool accounting and health care cost management. managed care information systems that assist payors and providers in performing these functions are integral to the operation of managed care organizations. As pressure to control health care costs has increased, demand has intensified for managed care information systems for use by payors and providers assuming financial risk. Payors are responding to escalating costs by shifting a portion of the financial risk associated with the delivery of health care to providers, generally under capitated payment arrangements. Accordingly, the market for the Company's products has grown to include health maintenance organization, preferred provider organizations, physician practice groups, independent practice associations, hospitals, integrated health care delivery systems, health insurance companies, third party administrators and managed Medicaid and Medicare risk plans.

Use of Proceeds
The proceeds from the proposed offering will be used to repay debt, for working capital for software development, capital expenditures and for general corporate purposes.

Last updated: 10/28/96

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