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Prepared and filed by St Ives Financial
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<p align="center"><font size="4" face="serif"><b>UNITED STATES<br>
SECURITIES AND EXCHANGE COMMISSION</b></font><br>
<font size="2" face="serif"><b>Washington, D.C. 20549</b></font></p>
<p align="center"><b><font face="serif" size="6">FORM 8-K</font></b></p>
<p align="center"><b><font face="serif" size="3">CURRENT REPORT<br>
PURSUANT TO SECTION 13 OR 15(d)<br>
OF THE SECURITIES EXCHANGE ACT OF 1934</font></b></p>

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<td align="center" width="65%"><font size="2" face="serif">Date of Report (Date of Earliest Event Reported):</font></td>
<td align="left"><font size="2" face="serif"><b>January 5, 2007</b></font></td>
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<tr valign="top"> <td align="center"><font size="1" face="serif">&nbsp;</font><font size="2" face="serif"><b><font face="serif" size="5">MEDecision,
          Inc.</font></b></font></td>
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<td align="center"><font size="2" face="serif">(Exact Name of Issuer as Specified in Charter)</font></td>
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<tr valign="top"> <td align="left"><font size="1" face="serif">&nbsp;</font></td>
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<td align="left"><font size="1" face="serif">&nbsp;</font></td> </tr>
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<td align="center" width="33%"><font size="2" face="serif"><b>Pennsylvania</b></font><br><font size="2" face="serif">(State or Other Jurisdiction of <br>
  Incorporation or Organization)</font></td>
<td align="center" width="33%"><font size="2" face="serif"><b>001-33191</b></font><br><font size="2" face="serif">(Commission File Number)</font></td>
<td align="center"><font size="2" face="serif"><b>23-2530889</b></font><br><font size="2" face="serif">(I.R.S. Employer<br>
  Identification Number)</font></td>
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<br><br>
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  <td align="center"><font size="2" face="serif"><b>601 Lee Road, Chesterbrook
    Corporate Center<br>
    Wayne, Pennsylvania</b></font></td>
  <td align="center"><font size="2" face="serif"><b>19087</b></font></td>
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<td width="50%" align="center"><font size="2" face="serif">(Address of Principal Executive Offices)</font></td>
<td align="center"><font size="2" face="serif">(Zip Code)</font></td>
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<td align="center"><font size="2" face="serif"><b>(610) 540-0202</b></font><br><font size="2" face="serif">(Registrant&#8217;s Telephone Number, Including Area Code)</font></td>
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<td align="center"><font size="2" face="serif"><b>Not Applicable</b></font><br><font size="2" face="serif">(Former Name or Former Address, if Changed Since Last Report)</font></td>
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<td colspan="2" align="left"><font size="2" face="serif">Check the appropriate box below if the Form 8-K is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:</font></td>
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  <td align="center">&nbsp;</td>
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<td align="left"><font size="2" face="serif">Written communications pursuant to Rule 425 under the Securities Act </font></td>
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<td align="center" width="8%"><img src="emptybox.gif"></td>
<td align="left"><font size="2" face="serif">Soliciting material pursuant to Rule 14a-12 under the Exchange Act</font></td>
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<td align="center" width="8%"><img src="emptybox.gif"></td>
<td align="left"><font size="2" face="serif">Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act</font></td>
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<td align="center" width="8%"><img src="emptybox.gif"></td>
<td align="left"><font size="2" face="serif">Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act</font></td>
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<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align="left"><font size="2" face="serif"><b>Item 2.02.  &nbsp;&nbsp;Results of Operations and Financial Condition.  </b></font></p>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On January 5, 2007, MEDecision, Inc. (the &#8220;<u>Company</u>&#8221;) issued a press release announcing its estimate of fourth quarter 2006 revenue.  A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.  </font></p>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The information in this Current Report on Form 8-K, including the Exhibit attached hereto, is furnished pursuant to Item 2.02 of Form 8-K and shall not be deemed to be &#8220;filed&#8221; for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the  liabilities of that Section. Furthermore, the information in this Current Report on Form 8-K, including the Exhibit, shall not be deemed to be incorporated by reference into the filings of the Company under the Securities Act of 1933, as amended.  The disclosure in this Form 8-K of any financial information shall not constitute an admission that such information is material.</font></p>
<p align="left"><font size="2" face="serif"><b>Item 9.01.  &nbsp;&nbsp;Financial Statements and Exhibits.</b></font></p>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)  The following exhibit is filed with this Form 8-K:</font></p>
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<td width="12%" align="center"><font size="2" face="serif"><u>Exhibit No.</u></font></td>
<td align="left"><font size="2" face="serif"><u>Description</u></font></td>
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  <td>&nbsp;</td>
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<td align="center"><font size="2" face="serif">99.1</font></td>
<td align="left">
<font size="2" face="serif"> Press Release of MEDecision, Inc. issued on January 5, 2007.</font></td>
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<p align="center"><font size="2" face="serif"><b>SIGNATURES</b></font></p>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.</font></p>  <table width="100%" cellspacing="0" cellpadding="0" border="0">
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  <td colspan="2" align="left"><font size="2" face="serif"><b>MEDECISION, INC.</b></font></td>
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<td align="left" width="50%"><font size="2" face="serif">Date: January 5, 2007</font></td>
<td align="left"><font size="2" face="serif">By:</font></td>
<td align="left"><font size="2" face="serif"> /s/ Carl E. Smith</font></td>
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  <td width="5%" align="left"><font size="2" face="serif">Name:</font></td>
  <td align="left"><font size="2" face="serif">Carl E. Smith</font></td>
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  <td width="5%" align="left"><font size="2" face="serif">Title: </font></td>
  <td align="left"><font size="2" face="serif">Executive Vice President and</font></td>
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  <td align="left">&nbsp;</td>
  <td width="5%" align="left">&nbsp;</td>
  <td align="left"><font size="2" face="serif">Chief Financial Officer</font></td>
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<p><a href="#contents"><font size="2">Back to Contents</font></a></p>
<p align="center"><font size="2" face="serif"><b>EXHIBIT INDEX</b></font></p>
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<td align="center" valign="bottom"><font size="2" face="serif"><b>Exhibit</b></font><br>
  <font size="2" face="serif"><b>Number</b></font></td>
<td width="2%" align="left" valign="bottom">&nbsp;</td>
<td width="83%" valign="bottom"><font size="2" face="serif"><b>Description</b></font></td>
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<td align="center"><font size="2" face="serif">99.1</font></td>
<td align="left">&nbsp;</td>
<td align="left"><font size="2" face="serif">Press Release of MEDecision, Inc. issued on January 5, 2007.</font></td>
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Prepared and filed by St Ives Financial
UNITED STATES
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):
January 5, 2007
MEDecision,
          Inc.
(Exact Name of Issuer as Specified in Charter)
Pennsylvania
(State or Other Jurisdiction of
Incorporation or Organization)
001-33191
(Commission File Number)
23-2530889
(I.R.S. Employer
Identification Number)
601 Lee Road, Chesterbrook
    Corporate Center
Wayne, Pennsylvania
19087
(Address of Principal Executive Offices)
(Zip Code)
(610) 540-0202
(Registrant's Telephone Number, Including Area Code)
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Written communications pursuant to Rule 425 under the Securities Act
Soliciting material pursuant to Rule 14a-12 under the Exchange Act
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act
Back to Contents
Item 2.02.    Results of Operations and Financial Condition.
On January 5, 2007, MEDecision, Inc. (the "
Company
") issued a press release announcing its estimate of fourth quarter 2006 revenue.  A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
The information in this Current Report on Form 8-K, including the Exhibit attached hereto, is furnished pursuant to Item 2.02 of Form 8-K and shall not be deemed to be "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the  liabilities of that Section. Furthermore, the information in this Current Report on Form 8-K, including the Exhibit, shall not be deemed to be incorporated by reference into the filings of the Company under the Securities Act of 1933, as amended.  The disclosure in this Form 8-K of any financial information shall not constitute an admission that such information is material.
Item 9.01.    Financial Statements and Exhibits.
(d)  The following exhibit is filed with this Form 8-K:
Exhibit No.
Description
99.1
Press Release of MEDecision, Inc. issued on January 5, 2007.
Back to Contents
SIGNATURES
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.
MEDECISION, INC.
Date: January 5, 2007
By:
/s/ Carl E. Smith
Name:
Carl E. Smith
Title:
Executive Vice President and
Chief Financial Officer
Back to Contents
EXHIBIT INDEX
Exhibit
Number
Description
99.1
Press Release of MEDecision, Inc. issued on January 5, 2007.