HMS (HMSY) 10-K 3 Mar 14 2013 FY Annual report Financial data

Document_and_Entity_Informatio

Document and Entity Information (USD $)	12 Months Ended
In Billions, except Share data, unless otherwise specified	Dec. 31, 2013	Feb. 25, 2014	Jun. 30, 2013
Document and Entity Information	'	'	'
Entity Registrant Name	'HMS HOLDINGS CORP	'	'
Entity Central Index Key	'0001196501	'	'
Document Type	'10-K	'	'
Document Period End Date	31-Dec-13	'	'
Amendment Flag	'false	'	'
Current Fiscal Year End Date	'--12-31	'	'
Entity Well-known Seasoned Issuer	'Yes	'	'
Entity Voluntary Filers	'No	'	'
Entity Current Reporting Status	'Yes	'	'
Entity Filer Category	'Large Accelerated Filer	'	'
Entity Public Float	'	'	$2
Entity Common Stock, Shares Outstanding	'	87,485,097	'
Document Fiscal Year Focus	'2013	'	'
Document Fiscal Period Focus	'FY	'	'

CONSOLIDATED_BALANCE_SHEETS

CONSOLIDATED BALANCE SHEETS (USD $)	Dec. 31, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Current assets:	'	'
Cash and cash equivalents	$93,366	$135,227
Accounts receivable, net of allowance for doubtful accounts of $916 and $830, respectively and estimated allowance for appeals of $13,939 and $7,082, at December 31, 2013 and 2012, respectively	171,726	156,770
Prepaid expenses	12,942	14,283
Prepaid income taxes	6,792	'
Current portion of deferred financing costs	'	3,336
Other current assets	489	317
Total current assets	285,315	309,933
Property and equipment, net	123,006	129,327
Goodwill	361,468	361,468
Intangible assets, net	95,312	119,119
Deferred financing costs	9,041	5,867
Other assets	4,460	3,988
Total assets	878,602	929,702
Current liabilities:	'	'
Accounts payable, accrued expenses and other liabilities	37,123	39,066
Acquisition related contingent consideration	945	425
Current portion of term loan	'	35,000
Deferred tax liabilities	6,326	2,398
Estimated liability for appeals	41,852	27,344
Total current liabilities	86,246	104,233
Long-term liabilities:	'	'
Deferred rent	724	500
Acquisition related contingent consideration	'	485
Term loan	'	297,500
Revolving credit facility	232,796	'
Other liabilities	3,874	3,305
Deferred tax liabilities	52,523	60,805
Total long-term liabilities	289,917	362,595
Total liabilities	376,163	466,828
Shareholders' equity:	'	'
Preferred stock-$0.01 par value; 5,000,000 shares authorized; none issued	'	'
Common stock-$0.01 par value; 125,000,000 shares authorized; 93,826,453 shares issued and 87,300,148 shares outstanding at December 31, 2013; 92,374,539 shares issued and 86,949,692 shares outstanding at December 31, 2012	936	923
Capital in excess of par value	296,517	271,962
Retained earnings	250,000	210,003
Treasury stock, at cost: 6,526,305 shares at December 31, 2013 and 5,424,847 at December 31, 2012	-45,014	-20,014
Total shareholders' equity	502,439	462,874
Total liabilities and shareholders' equity	$878,602	$929,702

CONSOLIDATED_BALANCE_SHEETS_Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Dec. 31, 2013	Dec. 31, 2012
In Thousands, except Share data, unless otherwise specified
CONSOLIDATED BALANCE SHEETS	'	'
Accounts receivable, allowance for doubtful accounts (in dollars)	$916	$830
Accounts receivable, allowance for appeals (in dollars)	$13,939	$7,082
Preferred stock, par value (in dollars per share)	$0.01	$0.01
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Common stock, par value (in dollars per share)	$0.01	$0.01
Common stock, shares authorized	125,000,000	125,000,000
Common stock, shares issued	93,826,453	92,374,539
Common stock, shares outstanding	87,300,148	86,949,692
Treasury stock, shares	6,526,305	5,424,847

CONSOLIDATED_STATEMENTS_OF_COM

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $)	12 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME	'	'	'
Revenue	$491,762	$473,696	$363,826
Cost of services:	'	'	'
Compensation	185,788	161,547	126,613
Data processing	37,115	31,491	23,118
Occupancy	18,397	17,456	15,053
Direct project costs	46,343	55,272	42,517
Other operating costs	26,493	20,593	18,054
Amortization of acquisition related software and intangibles	31,747	32,551	8,450
Total cost of services	345,883	318,910	233,805
Selling, general and administrative expenses	68,701	55,274	49,150
Total operating expenses	414,584	374,184	282,955
Operating income	77,178	99,512	80,871
Interest expense	-12,460	-16,561	-605
Other income, net	801	382	632
Interest income	71	12	65
Income before income taxes	65,590	83,345	80,963
Income taxes	25,593	32,829	33,178
Net income and comprehensive income	$39,997	$50,516	$47,785
Basic income per common share:	'	'	'
Net income per share-basic (in dollars per share)	$0.46	$0.59	$0.56
Diluted income per share:	'	'	'
Net income per share-diluted (in dollars per share)	$0.45	$0.57	$0.55
Weighted average shares:	'	'	'
Basic (in shares)	87,598	86,204	84,588
Diluted (in shares)	88,344	88,365	87,444

CONSOLIDATED_STATEMENTS_OF_SHA

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (USD $)	Total	Common Stock	Capital in Excess of Par Value	Retained Earnings	Treasury Stock
In Thousands, except Share data, unless otherwise specified
Balance at Dec. 31, 2010	$307,638	$883	$204,450	$111,702	($9,397)
Balance (in shares) at Dec. 31, 2010	'	88,341,546	'	'	4,988,538
Increase (Decrease) in Shareholders' Equity	'	'	'	'	'
Net income and comprehensive income	47,785	'	'	47,785	'
Stock-based compensation cost	8,376	'	8,376	'	'
Equity consideration for the acquisition of HDI	3,799	'	3,799	'	'
Exercise of stock options	12,744	23	12,721	'	'
Exercise of stock options (in shares)	'	2,133,824	'	'	'
Vesting of restricted stock awards and units, net of shares withheld for employee tax	-1,156	'	-1,156	'	'
Vesting of restricted stock awards and units, net of shares withheld for employee tax (in shares)	'	100,467	'	'	'
Excess tax benefit from exercise of stock options	12,051	'	12,051	'	'
Balance at Dec. 31, 2011	391,237	906	240,241	159,487	-9,397
Balance (in shares) at Dec. 31, 2011	'	90,575,837	'	'	4,988,538
Increase (Decrease) in Shareholders' Equity	'	'	'	'	'
Net income and comprehensive income	50,516	'	'	50,516	'
Stock-based compensation cost	9,116	'	9,116	'	'
Purchase of treasury stock	-10,617	'	'	'	-10,617
Purchase of treasury stock (in shares)	'	'	'	'	436,309
Exercise of stock options	11,973	16	11,957	'	'
Exercise of stock options (in shares)	'	1,673,457	'	'	'
Vesting of restricted stock awards and units, net of shares withheld for employee tax	-1,784	1	-1,785	'	'
Vesting of restricted stock awards and units, net of shares withheld for employee tax (in shares)	'	125,245	'	'	'
Excess tax benefit from exercise of stock options	12,433	'	12,433	'	'
Balance at Dec. 31, 2012	462,874	923	271,962	210,003	-20,014
Balance (in shares) at Dec. 31, 2012	'	92,374,539	'	'	5,424,847
Increase (Decrease) in Shareholders' Equity	'	'	'	'	'
Net income and comprehensive income	39,997	'	'	39,997	'
Stock-based compensation cost	11,997	'	11,997	'	'
Purchase of treasury stock	-25,000	'	'	'	-25,000
Purchase of treasury stock (in shares)	'	'	'	'	1,101,458
Exercise of stock options	9,260	12	9,248	'	'
Exercise of stock options (in shares)	'	1,305,538	'	'	'
Vesting of restricted stock awards and units, net of shares withheld for employee tax	-1,922	1	-1,923	'	'
Vesting of restricted stock awards and units, net of shares withheld for employee tax (in shares)	'	146,376	'	'	'
Excess tax benefit from exercise of stock options	5,233	'	5,233	'	'
Balance at Dec. 31, 2013	$502,439	$936	$296,517	$250,000	($45,014)
Balance (in shares) at Dec. 31, 2013	'	93,826,453	'	'	6,526,305

CONSOLIDATED_STATEMENTS_OF_CAS

CONSOLIDATED STATEMENTS OF CASH FLOW (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Operating activities:	'	'	'
Net income and comprehensive income	$39,997	$50,516	$47,785
Adjustments to reconcile net income to net cash provided by operating activities:	'	'	'
Depreciation and amortization	58,068	54,836	22,435
Stock-based compensation expense	11,997	9,116	8,376
Excess tax benefit from exercised stock options	-5,233	-12,433	-12,051
Deferred income taxes	-4,354	-6,323	1,818
Allowance for doubtful accounts	6,943	3,751	359
Change in fair value of contingent consideration	35	-2,300	-273
Loss on disposal of fixed assets	431	290	267
Changes in assets and liabilities:	'	'	'
Accounts receivable	-21,899	-40,235	-31,931
Prepaid expenses	1,341	-7,670	-1,081
Prepaid income taxes	-1,559	14,326	14,288
Other current assets	-172	667	-538
Other assets	28	-127	113
Accounts payable, accrued expenses and other liabilities	1,050	-1,340	-218
Estimated liability for appeals	14,508	19,965	7,380
Net cash provided by operating activities	101,181	83,039	56,729
Investing activities:	'	'	'
Investment in certificate of deposit	'	'	-4,809
Proceeds from redemption of certificate of deposit	'	4,809	'
Purchases of property and equipment	-22,092	-25,222	-18,477
Purchase of building and land	-35	'	'
Investment in common stock	-500	-3,024	'
Acquisitions, net	'	-12,393	-350,578
Investment in capitalized software	-3,656	-2,244	-1,857
Net cash used in investing activities	-26,283	-38,074	-375,721
Financing activities:	'	'	'
Repayment of term loan	-8,750	-17,500	-39,480
Repayment of revolving credit facility	-95,000	'	'
Proceeds from revolving credit facility	4,046	'	'
Proceeds from term loan	'	'	337,292
Deferred financing costs	'	'	-292
Financing related to revolving credit facility	-2,915	'	'
Purchases of treasury stock	-25,000	-10,617	'
Payments on contingent consideration	'	-250	'
Proceeds from exercise of stock options	9,260	11,973	12,744
Payments on capital lease obligations	-1,711	-996	'
Payments of tax withholdings on behalf of employees for net-share settlement for stock-based compensation	-1,922	-1,784	-1,156
Excess tax benefit from exercised stock options	5,233	12,433	12,051
Net cash (used in ) /provided by financing activities	-116,759	-6,741	321,159
Net increase (decrease) in cash and cash equivalents	-41,861	38,224	2,167
Cash and cash equivalents at beginning of year	135,227	97,003	94,836
Cash and cash equivalents at end of year	93,366	135,227	97,003
Supplemental disclosure of cash flow information:	'	'	'
Cash paid for income taxes	34,922	20,490	17,474
Cash paid for interest	9,520	13,236	109
Supplemental disclosure of noncash investing activities:	'	'	'
Accrued property and equipment purchases	1,725	4,439	5,294
Issuance of replacement awards in connection with HDI acquisition	'	'	3,799
Equipment purchased through capital leases	$2,401	$2,127	'

Summary_of_Significant_Account

Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2013
Summary of Significant Accounting Policies	'
Summary of Significant Accounting Policies	'
	1. Summary of Significant Accounting Policies
	(a) Organization and Business
	We are incorporated in the State of Delaware. We were originally incorporated on October 2, 2002 in the state of New York. On March 3, 2003, we adopted a holding company structure and assumed the business of our predecessor, Health Management Systems, Inc. In connection with the adoption of this structure, Health Management Systems, which began doing business in 1974, became our wholly owned subsidiary. On July 18, 2013, we changed our state of incorporation from the State of New York to the State of Delaware. Unless the context otherwise indicates, references in these Notes to Consolidated Financial Statements to the terms "HMS," "we," "our," and "us" refer to HMS Holdings Corp. and its subsidiaries.
	We provide cost containment services to government and private healthcare payers and sponsors. Our program integrity services ensure that healthcare claims are paid correctly, and our coordination of benefits services ensure that they are paid by the responsible party. Together, these services help clients recover amounts from liable third parties; prevent future improper payments; reduce fraud, waste and abuse; and ensure regulatory compliance.
	Since our inception, we have grown both organically and through targeted acquisitions. In 1985 we began providing coordination of benefits services to state Medicaid agencies. We expanded into the Medicaid managed care market, providing similar coordination of benefits services when Medicaid began to migrate members to managed care. We launched our program integrity services in 2007 and have since acquired several businesses to expand our service offerings. In 2009, we entered the Medicare market with our acquisition of IntegriGuard, LLC, or IntegriGuard, now doing business as HMS Federal, which provides fraud, waste and abuse analytical services to the Medicare program. In 2009 and 2010, we entered the employer market, working with large self-funded employers through our acquisitions of Verify Solutions, Inc. and Chapman Kelly, Inc. In 2011, we extended our reach in the federal, state and commercial markets with our acquisition of HealthDataInsights, Inc., or HDI. HDI provides improper payment identification services for government and commercial health plans, and is the Medicare Recovery Audit Contractor (RAC) in CMS Region D, covering 17 states and three U.S. territories. In December 2012, we extended our Workers' Compensation recovery services to commercial health plans through our asset purchase of Med Recovery Management, LLC, or MRM.
	We are managed and operated as one business, with a single management team that reports to the Chief Executive Officer. We do not operate separate lines of business with respect to any of our product lines.
	(b) Principles of Consolidation
	The consolidated financial statements include our accounts and transactions and those of our wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation.
	(c) Use of Estimates
	The preparation of the consolidated financial statements in conformity with United States generally accepted accounting principles, or U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, primarily accounts receivable, intangible assets, accrued expenses, estimated liability for appeals and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. Our actual results could differ from those estimates.
	(d) Reclassifications
	Certain reclassifications were made to prior year amounts to conform to the current period presentation.
	(e) Cash and Cash Equivalents
	We consider all highly liquid investments with an original maturity of three months or less to be cash equivalents. Cash equivalents consist of deposits that are readily convertible into cash.
	(f) Concentration of Credit Risk
	Financial instruments (principally cash and cash equivalents, accounts receivable, accounts payable and accrued expenses) are carried at cost, which approximates fair value due to the short-term maturity of these instruments. Our long-term debt or revolving credit facility is carried at cost. Due to the variable interest rate associated with the revolving credit facility, its fair value approximates its carrying value.
	Our policy is to limit our credit exposure by placing our investments with financial institutions evaluated as being creditworthy, or in short-term money market funds which are exposed to minimal interest rate and credit risk. We maintain our cash in cash depository accounts and certificate of deposits with large financial institutions. The balance in certain of these accounts exceeds the maximum balance insured by the Federal Deposit Insurance Corporation of up to $0.25 million per bank account. We have not experienced any losses on our bank deposits and we believe these deposits do not expose us to any significant credit risk.
	We are subject to potential credit risk related to changes in economic conditions within the healthcare market. However, we believe that our billing and collection policies are adequate to minimize the potential credit risk. We perform ongoing credit evaluations of our clients and generally do not require collateral. We have no history of significant losses from uncollectible accounts.
	(g) Property and Equipment
	Property and equipment are stated at cost less accumulated depreciation. Depreciation is provided over the estimated useful lives of the assets utilizing the straight-line method. We provide amortization of leasehold improvements on a straight-line basis over the shorter of a five year period or the term of the related lease. Equipment leased under capital leases is depreciated over the shorter of (i) the term of the lease and (ii) the estimated useful life of the equipment. The depreciation expense on assets acquired under capital leases is included in our Consolidated Statements of Comprehensive Income as depreciation expense. The estimated useful lives are as follows:
	Equipment	2 - 3 years
	Leasehold improvements	3 - 5 years
	Furniture and fixtures	5 - 7 years
	Building and building improvements	up to 39.5 years
	(h) Software and Software Development Cost
	Certain software development costs related to software that is acquired or developed for internal use while in the application development stage are capitalized. All other costs to develop software for internal use, either in the preliminary project stage or post-implementation stage, are expensed as incurred. Amortization of software and software development costs is calculated on a straight-line basis over the expected economic life of the product, generally estimated to be 5 years.
	(i) Goodwill
	Goodwill, representing the excess of acquisition costs over the fair value of assets and liabilities of acquired businesses, is not amortized; rather it is subject to a periodic assessment for impairment by applying a fair value based test. Goodwill is assessed for impairment on an annual basis in the second quarter of each year or more frequently if events or changes in circumstances indicate that the asset might be impaired. Fair value is based on a projection of the estimated discounted future net cash flows expected to be achieved from a reporting unit using a discount rate reflective of our cost of funds. The fair value of the reporting unit is compared with the asset's recorded value. If the recorded value is less than the fair value of the reporting unit, no impairment is indicated. If the fair value of the reporting unit is less than the recorded value, an impairment charge is recognized for the difference between the carrying value and the fair value. No impairment losses have been recorded in any of the periods presented. HMS and HDI reporting units are aggregated into a single reporting unit for the purposes of the goodwill impairment test. The single reporting unit is at the entity level of HMS Holdings Corp.
	We evaluate the recoverability of goodwill annually and whenever events or changes in circumstances indicate that an asset's carrying amount may not be recoverable. Such circumstances could include, but are not limited to (i) a significant decrease in the market value of an asset, (ii) a significant adverse change in the extent or manner in which an asset is used, or (iii) an accumulation of costs significantly in excess of the amount originally expected for the acquisition of an asset.
	(j) Long-Lived Assets
	Long-lived assets, which include property and equipment and intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying value of its asset group to the estimated undiscounted future net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying value of the asset group exceeds the fair value of the assets, which amount is charged to earnings. Fair value is based on a projection of the estimated discounted future net cash flows expected to result from the asset group, using a discount rate reflective of our cost of funds.
	For long-lived assets and intangible assets, we measure the carrying amount of the asset against the estimated undiscounted future cash flows associated with it. If the sum of the expected future net cash flows is less than the carrying value of the asset being evaluated, we would recognize an impairment charge. The impairment charge would be calculated as the amount by which the carrying value of the asset exceeds its fair value. The determination of fair value is based on quoted market prices, if available. If quoted market prices are not available, the estimate of fair value is based on various valuation techniques, including the discounted value of estimated future cash flows. We did not recognize any impairment charges related to our long-lived assets, property and equipment, goodwill or intangible assets, during the years ended December 31, 2013 and 2012, as management believes that carrying amounts were not impaired.
	(k) Acquisition Accounting
	The acquisition method of accounting requires companies to assign values to assets acquired and liabilities assumed based upon their fair value. In most instances there is not a readily defined or listed market price for individual assets and liabilities acquired in connection with a business, including intangible assets. The determination of fair value for individual assets and liabilities in many instances requires a high degree of estimation. The valuation of intangible assets, in particular, is very subjective. The use of different valuation techniques and assumptions could change the amounts and useful lives assigned to the assets and liabilities acquired, including goodwill and other intangible assets and related amortization expense.
	(l) Income Taxes
	Income taxes are accounted for under the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary and permanent differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. This method also requires the recognition of future tax benefits for net operating loss (NOL) carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized as income in the period that includes the enactment date. A valuation allowance is provided against deferred tax assets to the extent their realization is not more likely than not.
	Uncertain income tax positions are accounted for by prescribing a minimum recognition threshold that a tax position is required to meet before being recognized in the financial statements.
	(m) Revenue Recognition and Estimated Liability for Appeals
	We provide products and services under contracts that contain various fee structures, including contingency fee and fixed fee arrangements. We recognize revenue when a contract exists, products or services have been provided to the client, the fee is fixed and determinable, and collectability is reasonably assured. In addition, we have contracts with the federal government which are generally cost-plus or time and material based. Revenue on cost-plus contracts is recognized based on costs incurred plus an estimate of the negotiated fee earned. Revenue on time and materials contracts is recognized based on hours worked and expenses incurred.
	Under our Medicare RAC contract with CMS, our Medicaid RAC contracts with various states, and similar contracts for commercial clients, we recognize revenue when claims are sent to the client for offset against future claims payments. Providers have the right to appeal a claim and may pursue additional appeals if the initial appeal is found in favor of the client. We accrue an estimated liability for appeals based on the amount of fees that are subject to appeals, closures or other adjustments and which we estimate are probable of being returned to providers following a successful appeal. This estimated liability for appeals is an offset to revenue in our Consolidated Statements of Comprehensive Income. Our estimates are based on our historical experience with appeals. The estimated liability for appeals of $41.9 million at December 31, 2013, and $27.3 million as of December 31, 2012, represents our estimate of the potential amount of repayments related to appeals of claims, closures, and other adjustments for which fees were previously collected. This is reflected as a separate line item in the current liabilities section of our balance sheet titled "Estimated liability for appeals". To the extent the amount to be returned to providers following a successful appeal, closure, or other adjustment exceeds the amount accrued; revenue in the applicable period would be reduced by the amount of the excess.
	As of December 31, 2013, we have accrued an estimated liability for appeals and estimated allowance for appeals based on our historical experience with this activity under our clients' contracts. At this time, we do not believe that we face a risk of significant loss in excess of the amounts accrued. Accordingly, we believe that an estimate of any possible loss in excess of the amounts accrued is immaterial. Any future changes to any of our client contracts, including further modifications to the transition plan for incumbent Medicare recovery audit contractors, may require us to apply different assumptions that could affect our estimated liability for future periods. We similarly accrue an allowance against accounts receivable related to fees yet to be collected, based on the same estimates used to establish the estimated liability for appeals of fees received. Our inability to correctly estimate the estimated liabilities and allowance against accounts receivable could adversely affect our revenue in future periods.
	Where contracts have multiple deliverables, we evaluate these deliverables at the inception of each contract and as each item is delivered. As part of this evaluation, we (i) consider whether a delivered item has value to a client on a standalone basis; (ii) use the vendor specific objective evidence (VSOE) of selling price or third party estimate (TPE) of selling price. If neither VSOE nor TPE of selling price exist for a deliverable, we use best estimated selling price for that deliverable; and (iii) allocate revenue to each non-contingent element based upon the relative selling price of each element. Revenue allocated to each element is then recognized when the above four basic revenue recognition criteria are met for each element. Arrangements, including implementation and transaction related revenue, are accounted for as a single unit of accounting. Since implementation services do not carry a standalone value, the revenue relating to these services is recognized over the term of the client contract to which it relates.
	In addition, some of our contracts may include client acceptance provisions. Formal client sign-off is not always necessary to recognize revenue, provided we objectively demonstrate that the criteria specified in the acceptance provision are satisfied. Due to the range of products and services that we provide and the differing fee structures associated with each type of contract, we may recognize revenue in irregular increments.
	(n) Stock-Based Compensation
	The cost of stock-based compensation is recognized in our Consolidated Statements of Comprehensive Income based on the fair value of all awards granted using the Black-Scholes method and the Monte Carlo option pricing model for valuation. The Black-Scholes option pricing model is used for "non-performance-based" grants and the Monte Carlo option pricing model is used for performance-based grants with certain market conditions. The fair value of each award is determined and the compensation cost is recognized over the service period required to obtain full vesting. Compensation cost to be recognized reflects an estimate of the number of awards expected to vest after taking into consideration an estimate of award forfeitures based on actual experience. Upon the exercise of stock options or the vesting of restricted stock units and restricted stock awards, the resulting excess tax benefits, if any, are credited to additional paid-in capital. Any resulting tax deficiencies will first be offset against those cumulative credits to additional paid-in capital. If the cumulative credits to additional paid-in capital are exhausted, tax deficiencies will be recorded to the provision for income taxes. Excess tax benefits are required to be reflected as financing cash inflows in the accompanying Consolidated Statements of Cash Flows.
	(o) Fair Value of Financial Instruments
	We measure certain financial assets and liabilities at fair value based on valuation techniques using the best information available, which may include quoted market prices, market comparables and discounted cash flow projections. Financial instruments may include time deposits, money market funds, and other cost method investments. In general, and where applicable, we use quoted prices in active markets for identical assets to determine fair value. If quoted prices in active markets for identical assets are not available to determine fair value, then we use quoted prices for similar assets and liabilities or inputs that are observable either directly or indirectly. If quoted prices for identical or similar assets are not available, we use internally developed valuation models, whose inputs include bid prices, and third party valuations utilizing underlying asset assumptions.
	The fair values of our financial instruments reflect the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). In addition, the Financial Accounting Standards Board, or the FASB, authoritative guidance requires us to disclose the fair value of financial instruments, both assets and liabilities recognized and not recognized in the statement of financial position, for which it is practicable to estimate fair value.
	Our financial instruments are categorized into a three-level fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure fair value fall within different levels of the hierarchy, the category level is based on the lowest priority level input that is significant to the fair value measurement of the instrument. In the event the fair value is not readily available/determinable, the financial instrument is carried at cost and referred to as a cost method investment. The evaluation of whether an investment's fair value is less than cost is determined by using a disclosed fair value estimate, if one is available, otherwise, it is determined by evaluating whether an event or change in circumstances has occurred that may have a significant adverse effect on the fair value of the investment (an impairment indicator). We are not aware of any identified events or change in circumstances that would have a significant adverse effect on the carrying value of our cost method investments. Financial instruments recorded at fair value on our consolidated balance sheets are categorized as follows:
	•
	Level 1: Observable inputs such as quoted prices in active markets;
	•
	Level 2: Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and
	•
	Level 3: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.
	(p) Leases
	We account for our lease agreements at their inception as either operating or capital leases, depending on certain defined criteria. We recognize lease costs on a straight-line basis without regard to deferred payment terms, such as rent holidays, that defer the commencement date of required payments. Additionally, incentives we receive, such as tenant improvement allowances, are capitalized and are treated as a reduction of our rental expense over the term of the lease agreement.
	(q) Recently Issued Accounting Pronouncements
	In December 2011, the Financial Accounting Standards Board, or FASB issued Accounting Standards Update (ASU) 2011-11, Balance Sheet (Topic 210), Disclosures about Offsetting Assets and Liabilities, updated by ASU 2013-01, Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities, which requires companies to disclose information about financial instruments that have been offset and related arrangements to enable users of the company's financial statements to understand the effect of those arrangements on the company's financial position. Companies will be required to provide both net (offset amounts) and gross information in the notes to the financial statements for relevant assets and liabilities that are offset. ASU 2011-11, as amended by ASU 2013-01, is effective for fiscal years, and interim periods within those years, beginning on or after January 1, 2013. The adoption of this guidance did not have a material effect on our consolidated financial statements.
	In July 2012, FASB issued ASU No. 2012-02, Intangibles—Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment. This newly issued accounting standard allows an entity the option to first assess qualitative factors to determine whether it is necessary to perform a quantitative impairment test for indefinite-lived intangibles other than goodwill. Under that option, an entity would no longer be required to calculate the fair value of an indefinite-lived intangible asset unless the entity determines, based on that qualitative assessment, that it is more likely than not that the fair value of the indefinite-lived intangible asset is less than its carrying amount. This ASU is effective for annual and interim indefinite-lived intangible asset impairment tests performed for fiscal years beginning after September 15, 2012. Early adoption is permitted. The adoption of this guidance did not have a material effect on our consolidated financial statements.
	In March 2013, FASB issued ASU No. 2013-04, Obligations Resulting from Joint and Several Liability Arrangements for which the Total Amount of the Obligation is Fixed at the Reporting Date, which addresses the recognition, measurement, and disclosure of certain joint and several obligations including debt arrangements, other contractual obligations, and settled litigation and judicial rulings. The ASU is effective for public entities for fiscal years, and interim periods within those years, beginning after December 15, 2013. The adoption of this guidance did not have a material effect on our consolidated financial statements.

Acquisitions

Acquisitions	12 Months Ended
	Dec. 31, 2013
Acquisitions	'
Acquisitions	'
	2. Acquisitions
	The results of operations for our acquisitions have been included in our consolidated financial statements from the respective dates of acquisition.
	MedRecovery Management, LLC.
	In December 2012, we acquired the assets and liabilities of MRM for an aggregate purchase price of $11.7 million, consisting of a $10.8 million initial cash payment and $0.9 million in future contingent payments that are based on the achievement of certain performance milestones. We recognized $1.9 million of goodwill in connection with our acquisition of MRM. In June 2013, we finalized the valuation of intangibles and future contingent consideration related to this acquisition and determined that as of acquisition date the value of intangibles was $9.2 million and the value of future contingent consideration was $0.9 million. The consolidated balance sheet for the year ended December 31, 2012 was retrospectively adjusted to increase the carrying amount of intangible assets by $9.2 million, decrease the carrying value of future contingent consideration by $0.1 million and decrease the carrying value of goodwill by $9.3 million. Of the total intangible assets acquired, $8.9 million was related to client relationships and has an amortization period of seven years and $0.3 million was related to restrictive covenants and has an amortization period of two years.
	HDI Holdings, Inc.
	In December 2011, we purchased all of the issued and outstanding common stock of privately-held HDI for an aggregate consideration of $370.4 million, of which $366.6 million was cash. In connection with acquisition, we issued replacement option awards with an aggregate fair value of $14.3 million, of which $3.8 million is attributable to the purchase price. The fair value of the replacement option awards and the amount included in the purchase price was calculated using a Black-Scholes model as of the acquisition date. These awards had vesting schedules of 1-48 months and the portion of the fair value of these awards that is not attributable to the purchase price is being expensed over the applicable vesting period.
	The following represents our pro forma Consolidated Statements of Income as if HDI had been included in our consolidated results for the year ended December 31, 2011 (in thousands, except per share data):
	(unaudited)	For the year ended
		December 31, 2011
	Total revenue	$	423,390
	Net income	$	39,207
	Earnings per share:
	Basic	$	0.46
	Diluted	$	0.45
	These amounts have been calculated after applying our accounting policies and adjusting HDI's results to reflect the additional depreciation, amortization and interest expense that would have been charged assuming the fair value adjustments to property, plant and equipment and intangible assets had been applied on January 1, 2011, together with the consequential tax effects.

Property_and_Equipment

Property and Equipment	12 Months Ended
	Dec. 31, 2013
Property and Equipment	'
Property and Equipment	'
	3. Property and Equipment
	Property and equipment at December 31, 2013 and 2012 consisted of the following (in thousands):
		December 31,
		2013			2012
	Equipment	$	86,494		$	71,776
	Leasehold improvements		3,712			6,496
	Building		8,624			8,624
	Building improvements		7,404			6,757
	Land		1,163			1,128
	Furniture and fixtures		11,045			13,454
	Capitalized software		97,555			94,269
			215,997			202,504
	Less accumulated depreciation and amortization		(92,991	)		(73,177	)
	Property and equipment, net	$	123,006		$	129,327
	Depreciation and amortization expense related to property and equipment charged to operations for the years ended December 31, 2013, 2012 and 2011 was $31.4 million, $26.9 million and $14.7 million, respectively. Net capital leases included as part of equipment totaled approximately $2.8 million and $3.7 million at December 31, 2013 and December 31, 2012, respectively and had accumulated depreciation of approximately $3.2 million and $1.5 million for those periods. Depreciation expense for equipment under capital leases for the years ended December 31, 2013, 2012 and 2011 was approximately $1.7 million, $1.4 million, and $0.1 million, respectively.

Intangible_Assets

Intangible Assets	12 Months Ended
	Dec. 31, 2013
Intangible Assets	'
Intangible Assets	'
	4. Intangible Assets
	Intangible assets consisted of the following at December 31, 2013 and 2012 (in thousands):
		December 31,
		2013			2012			Useful Life
	Client relationships	$	102,755		$	130,105		5 - 10 years
	Restrictive covenants		18,300			19,600		3 - 7 years
	Trade name		19,532			19,733		3 - 5 years
			140,587			169,438
	Less accumulated amortization		(45,275	)		(50,319	)
	Intangible assets, net	$	95,312		$	119,119
	Estimated amortization expense of intangible assets is expected to approximate the following (in thousands):
	Year ending December 31,
	2014	$	20,733
	2015	$	20,270
	2016	$	19,934
	2017	$	16,613
	Thereafter	$	17,762
	For the years ended December 31, 2013, December 31, 2012 and December 31, 2011, amortization expense related to intangible assets was $23.8 million, $24.4 million and $7.3 million, respectively.
	The changes in the carrying amount of goodwill for the years ended December 31, 2013 and 2012 are as follows (in thousands):
	Balance at December 31, 2011	$	361,786
	HDI measurement period adjustments		(2,256	)
	Acquisition of MRM		1,938
	Balance at December 31, 2013 and 2012	$	361,468

Accounts_Payable_Accrued_Expen

Accounts Payable, Accrued Expenses and Other Liabilities	12 Months Ended
	Dec. 31, 2013
Accounts Payable, Accrued Expenses and Other Liabilities	'
Accounts Payable, Accrued Expenses and Other Liabilities	'
	5. Accounts Payable, Accrued Expenses and Other Liabilities
	Accounts payable, accrued expenses and other liabilities at December 31, 2013 and 2012 consisted of the following (in thousands):
		December 31,
		2013		2012
	Accounts payable, trade	$	7,217	$	10,874
	Accrued compensation		15,419		11,104
	Accrued direct project costs		1,629		1,996
	Accrued refunds		2,667		1,253
	Accrued other liabilities		10,191		13,839
	Total Accounts Payable, Accrued Expenses and Other Liabilities	$	37,123	$	39,066

Income_Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2013
Income Taxes	'
Income Taxes	'
	6. Income Taxes
	The income tax expense for the years ended December 31, 2013, 2012 and 2011 is as follows (in thousands):
		December 31,
		2013			2012			2011
	Current tax expense:
	Federal	$	25,211		$	33,456		$	25,229
	State		4,736			5,696			6,131
			29,947			39,152			31,360
	Deferred tax expense/(benefit):
	Federal		(3,485	)		(6,085	)		1,971
	State		(869	)		(238	)		(153	)
			(4,354	)		(6,323	)		1,818
	Total income tax expense	$	25,593		$	32,829		$	33,178
	A reconciliation of the income tax expense calculated using the applicable federal statutory rates to the actual income tax expense for the years ended December 31, 2013, 2012 and 2011 is as follows (in thousands):
		December 31,
		2013			%			2012			%		2011		%
	Computed at federal statutory rate	$	22,946			35		$	29,171			35	$	28,337		35
	State and local tax expense, net of federal benefit		2,448			3.7			3,548			4.3		3,907		4.8
	Other, net		199			0.3			110			0.1		934		1.2
	Total income tax expense	$	25,593			39		$	32,829			39.4	$	33,178		41
	Our effective tax rate decreased to 39.0% for the year ended December 31, 2013 from 39.4% for the year ended December 31, 2012, primarily due to a change in state apportionments and permanent differences. The principal difference between the statutory rate and our effective rate is state taxes and permanent differences.
	Deferred income taxes are recognized for the future tax consequences of temporary differences between the financial statement and tax bases of assets and liabilities. The tax effect of temporary differences that give rise to a significant portion of the deferred tax assets and deferred tax liabilities at December 31, 2013 and 2012 were as follows (in thousands):
		December 31,
		2013			2012
	Deferred tax assets:
	Allowance for doubtful accounts and deferred revenue	$	669		$	422
	Restructuring cost		369			142
	Goodwill and other intangibles		7,679			7,261
	Accounts receivables		1,905			5,043
	Net operating loss carry forwards		69			52
	Deferred stock compensation		6,112			5,311
	Deferred rent		215			226
	Other		843			1,410
	Total deferred tax assets before valuation allowance		17,861			19,867
	Less valuation allowance		—			(81	)
	Total deferred tax assets after valuation allowance		17,861			19,786
	Deferred tax liabilities:
	Goodwill and other intangibles		64,317			72,106
	Capitalized software cost		2,995			2,946
	Prepaid expenses		1,111			—
	Property and equipment		8,287			7,937
	Total deferred tax liabilities		76,710			82,989
	Total net deferred tax liabilities	$	58,849		$	63,203
	Net current deferred tax liabilities	$	6,326		$	2,398
	Net non-current deferred tax liabilities		52,523			60,805
	Total net deferred liabilities	$	58,849		$	63,203
	During 2013, we utilized $14.5 million in tax deductions arising from 2013 disqualifying dispositions of incentive stock option exercises, which resulted in an excess tax benefit of $5.2 million that was recorded to capital and an offsetting reduction to taxes payable.
	As of December 31, 2013 and 2012, the total amount of unrecognized tax benefits was approximately $1.4 million and $1.1 million, respectively, including, approximately $0.9 million and $0.7 million, respectively (net of the federal benefit for state issues) of unrecognized tax benefits that, if recognized, would favorably affect our future effective tax rate. As of both December 31, 2013 and 2012, the accrued liability for interest expense and penalties related to unrecognized tax benefits was $0.1 million. We include interest expense and penalties in the provision for income taxes in the Consolidated Statements of Income. The amount of interest expense (net of federal and state income tax benefits) and penalties in the Consolidated Statements of Income for the years ended December 31, 2013 and 2012 were immaterial. We do not expect any significant change in unrecognized tax benefits during the next twelve months.
	We file income tax returns with the U.S. federal government and various state jurisdictions. We are no longer subject to U.S. federal income tax examinations for years before 2010. We operate in a number of state and local jurisdictions, most of which have never audited our records. Accordingly, we are subject to state and local income tax examinations based upon the various statutes of limitations in each jurisdiction. We are currently being examined by the Internal Revenue Service and the States of New York and Idaho. HDI's 2009 federal tax return was examined by the Internal Revenue Service and a closing letter was issued in August 2012 for no change to taxable income.

Credit_Agreement

Credit Agreement	12 Months Ended
	Dec. 31, 2013
Credit Agreement	'
Credit Agreement	'
	7. Credit Agreement
	In connection with our acquisition of HDI, we entered into a five-year, revolving and term secured credit agreement, which we refer to as the 2011 Credit Agreement, with certain financial institutions and Citibank, N.A. as Administrative Agent. In May 2013, we amended and restated the 2011 Credit Agreement and entered into a $500 million five-year, amended and restated revolving credit agreement, which we refer to as the 2013 Credit Agreement. During the year ended December 31, 2013, we made principal payments of $8.8 million against our term loan and $95.0 million against our revolving credit facility. During the year ended December 31, 2012, we made principal payments of $17.5 million against our term loan. The $232.8 million principal balance of our revolving credit facility is due in May 2018.
	The 2013 Credit Agreement provides for an initial $500 million revolving credit facility, and, under specified circumstances, the revolving credit facility can be increased or one or more incremental term loan facilities can be added, provided that the incremental credit facilities do not exceed in the aggregate the sum of (a) $75 million plus (b) an additional amount not less than $25 million, so long as our total secured leverage ratio, calculated giving pro forma effect to the requested incremental borrowing and other customary and appropriate pro forma adjustment events, including any permitted acquisitions, is no greater than 2.5:1.0.
	The 2013 Credit Agreement contains certain customary representations and warranties, affirmative and negative covenants, and events of default. The 2013 Credit Agreement requires us to comply, on a quarterly basis, with certain principal financial covenants, including a maximum consolidated leverage ratio reducing from 3.50:1.00 to 3.25:1.00 over the next five years and a minimum interest coverage ratio of 3.00:1.00.
	The interest rates applicable to the revolving credit facility are, at our option, either (a) the LIBOR multiplied by the statutory reserve rate plus an interest margin ranging from 1.50% to 2.25% based on our consolidated leverage ratio, or (b) a base rate (which is equal to the greatest of (a) Citibank's prime rate, (b) the federal funds effective rate plus 0.50% and (c) the one-month LIBOR plus 1.00% plus an interest margin ranging from 0.50% to 1.25% based on our consolidated leverage ratio). We pay an unused commitment fee on the revolving credit facility during the term of the 2013 Credit Agreement ranging from 0.375% to 0.50% per annum based on our consolidated leverage ratio.
	Our obligations under the 2013 Credit Agreement may be accelerated upon the occurrence of an event of default, which includes customary events of default including, without limitation, payment defaults, failures to perform affirmative covenants, failure to refrain from actions or omissions prohibited by negative covenants, the inaccuracy of representations or warranties, cross-defaults, bankruptcy and insolvency related defaults, defaults relating to judgments, defaults due to certain ERISA related events and a change of control default. As of December 31, 2013, we were in compliance with all the terms of the 2013 Credit Agreement.
	Borrowings under the 2013 Credit Agreement were used to refinance the outstanding principal and unpaid interest of $323.8 million and $1.1 million, respectively, under the term loan facility of the 2011 Credit Agreement. We paid lender fees of $2.9 million in connection with amending and restating the Credit Agreement.
	The interest expense on our revolving credit facility and commitment fees and our unused revolving credit facility are as follows (in thousands):
		December 31,
		Year ended
		2013		2012		2011
	Interest expense	$	8,156	$	12,200	$	520
	Commitment fees	$	887	$	500	$	52
	At December 31, 2013 and December 31, 2012, the unamortized balance of deferred origination fees and debt issue costs were $9.0 million and $9.2 million, respectively. For the year ended December 31, 2013 and 2012, we amortized $3.1 million and $2.6 million, respectively, of interest expense related to our deferred origination fees and debt issue costs.
	Although we expect that operating cash flows will continue to be a primary source of liquidity for our operating needs, we have the revolving credit facility, which may be used for general corporate purposes, including acquisitions, available for future cash flow needs, if necessary.
	As part of our contractual agreement with a client, we have an outstanding irrevocable letter of credit or Letter of Credit for $4.6 million, which we established against our existing revolving credit facility.

Equity

Equity	12 Months Ended
	Dec. 31, 2013
Equity	'
Equity	'
	8. Equity
	(a) Treasury Stock
	In May 1997, our Board of Directors authorized us to repurchase up to $10.0 million of shares of our common stock. We repurchased 4,988,538 shares in 1997, at an average price of $1.88 per share. In February 2006, our Board of Directors increased the aggregate purchase price to an amount not to exceed $20.0 million. We repurchased an additional 436,309 shares at an average price of $24.29 per share and completed the Share Repurchase Plan in May 2012.
	In October 2012, our Board of Directors authorized us to repurchase up to $50.0 million of our common stock from time to time on the open market or in privately negotiated transactions, for a period of up to two years. During the fourth quarter of 2013, we purchased a total of 1,101,458 shares at an average price of $22.65 per share, which amounts to $25.0 million of our common stock pursuant to this authorization.
	The above repurchased shares will be available for use in connection with our stock plans and for other corporate purposes.
	(b) Preferred Stock
	Our certificate of incorporation, as amended, authorizes the issuance of up to 5,000,000 shares of "blank check" preferred stock with such designations, rights and preferences as may be determined by our Board of Directors. As of December 31, 2013, no preferred stock had been issued.

Employee_Benefit_Plan

Employee Benefit Plan	12 Months Ended
	Dec. 31, 2013
Employee Benefit Plan	'
Employee Benefit Plan	'
	9. Employee Benefit Plan
	We sponsor a benefit plan to provide retirement benefits for our employees, which is known as the HMS Holdings Corp. 401(k) Plan, or the 401(k) Plan. Eligible employees must complete 90 days of service in order to enroll in the 401(k) Plan. Participants may make voluntary contributions to the 401(k) Plan of up to 60% of their annual base pre-tax compensation not to exceed the federally determined maximum allowable contribution. In addition, the 401(k) Plan permits us to make discretionary contributions. We match 100% of the first 3% of pay contributed by each eligible employee and 50% on the next 2% of pay contributed. These matching contributions vest immediately and are not in the form of our common stock. However, participants in the 401(k) Plan are permitted to invest their contributions in our common stock.
	For the years ended December 31, 2013, 2012 and 2011, we contributed $4.6 million, $3.7 million and $2.8 million, respectively, to the 401(k) Plan in the form of matching contributions.

StockBased_Compensation

Stock-Based Compensation	12 Months Ended
	Dec. 31, 2013
Stock-Based Compensation	'
Stock-Based Compensation	'
	10. Stock-Based Compensation
	We grant stock options to purchase our common stock, restricted stock awards and restricted stock units to our employees and directors under the Amended 2011 Stock Option and Stock Issuance Plan, or the HDI 2011 Stock Plan, which we assumed in connection with our acquisition of HDI and the Fourth Amended and Restated 2006 Stock Plan, or the 2006 Stock Plan. The HDI 2011 Stock Plan superseded the HealthDataInsights Inc. Amended 2004 Stock Option/Stock Issuance Plan, or the HDI 2004 Stock Plan. The 2006 Stock Plan was adopted in June 2006 and superseded our 1999 Long-Term Incentive Stock Plan, or the 1999 Plan. We have previously granted stock options outside of our plans, and some of those stock options still remain outstanding.
	Stock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense over the requisite service period, which is generally the vesting period. Stock options granted under the HDI 2011 Stock Plan had vesting schedules ranging from one month to four years. Stock options granted under the 2006 Stock Plan generally vest over a one to four year period. All stock options granted under the 1999 Plan and outside our plans are fully vested. The restricted stock awards and restricted stock units granted under the 2006 Stock Plan vest over a one to five year period and the related stock-based compensation expense is ratably recognized over those same time periods.
	Total stock-based compensation expense charged as a selling, general and administrative expense in our Consolidated Statements of Comprehensive Income related to our stock compensation plans was $12.0 million, $9.1 million and $8.4 million for the years ended December 31, 2013, 2012 and 2011, respectively. During the third quarter of 2013, we reversed stock based compensation expense relating to performance-based non-qualified stock options granted to our executive officers as the associated performance targets were not met for the fiscal year ended December 31, 2013. As a result of this reversal, we recognized a benefit of $0.1 million in compensation expense. The total income tax benefit related to stock-based compensation expense for the years ended December 31, 2013, 2012 and 2011 was $3.6 million, $3.9 million and $3.3 million, respectively.
	During the fourth quarter of 2013, we modified certain performance-based nonqualified stock options and restricted stock units granted in October 2012 to remove the performance requirement and provide for time based vesting over a three year period from the grant date. The modification affected eight employees and had an immaterial effect on stock based compensation expense.
	(a) Amended 2011 Stock Option and Stock Issuance Plan
	We assumed the HDI 2011 Stock Plan in connection with our acquisition of HDI. As of December 31, 2013, there were stock options to purchase 317,039 shares of common stock outstanding under the HDI 2011 Stock Plan.
	The HDI 2011 Stock Plan is divided into two separate equity programs: a stock option grant program and a stock issuance program. The HDI 2011 Stock Plan permits the grant of incentive stock options, non-qualified stock options and share awards. A total of 836,122 shares have been authorized for issuance under the 2011 Stock Plan. The maximum number of shares available to be issued under the Plan is currently 224,856 shares, subject to adjustments for any stock splits, stock dividends or other specified adjustments which may take place in the future. Former HDI employees as well as new (i) employees, (ii) non-employee directors and (iii) consultants and other independent advisors are eligible to participate in the HDI 2011 Stock Plan. However, only employees are eligible to receive incentive stock options. The exercise price of stock options granted under the HDI 2011 Stock Plan may not be less than fair market value of a share of stock on the grant date, as measured by the closing price of our common stock on The NASDAQ Global Select Market and the term of a stock option may not exceed ten years.
	(b) Fourth Amended and Restated 2006 Stock Plan
	The 2006 Stock Plan permits the grant of incentive stock options, non-qualified stock options, stock appreciation rights (SARs), restricted stock awards and restricted stock units, performance shares and performance units and other share awards.
	Our 2006 Stock Plan was approved by our shareholders in June 2006. The purpose of the 2006 Stock Plan is to furnish a material incentive to our employees and non-employee directors by making available to them the benefits of a larger common stock ownership through stock options and awards. We believe that these increased incentives stimulate the efforts of employees and non-employee directors towards our continued success, as well as assist in the recruitment of new employees and non-employee directors.
	A total of 18,000,000 shares have been authorized for issuance under the 2006 Stock Plan. Any shares issued in connection with awards other than stock options and SARs are counted against the 18,000,000 share limit as one and eighty-five hundredths (1.85) of a share for every one share issued in connection with such award or by which the award is valued by reference.
	All of our employees as well as our non-employee directors are eligible to participate in the 2006 Stock Plan. However, only our employees are eligible to receive incentive stock. The exercise price of stock options granted under the 2006 Stock Plan may not be less than fair market value of a share of stock on the grant date, as measured by the closing price of our common stock on The NASDAQ Global Select Market and the term of a stock option may not exceed seven years.
	In November 2013, the Compensation Committee of the Board of Directors approved the grant of non-qualified stock options to purchase an aggregate of 1,127,092 shares of common stock to certain of our directors and employees, including our executive officers, under the 2006 Stock Plan at an exercise price of $21.36 per share, the closing price of our common stock on the grant date. The Committee also approved the grant of 148,578 restricted stock units to directors and certain employees on the same date. The stock options and restricted stock units granted to our executive officers vest as follows: one half of the awards vest in equal installments on each of the first three anniversaries of the grant date, and provided the average closing price per share of our common stock is at least 25% higher than the exercise price for a period of 30 consecutive days, which we refer to as the performance condition, then the other half will vest in accordance with a pre-defined schedule depending upon when during the three year period following the grant date the performance condition is achieved. The stock options and restricted stock units granted to the other employees vest in equal installments on each of the first three anniversaries of the grant date. The stock options and restricted units granted to our directors in November 2013 vest quarterly over a one year period commencing on December 31, 2013.
	During the year ended December 31, 2013, we granted stock options to purchase an aggregate of 1,287,141 shares of common stock and 390,394 restricted stock units under the 2006 Stock Plan.
	As of December 31, 2013, there were 7,128,553 shares of common stock available for future grant under the 2006 Stock Plan. We had the following outstanding under the 2006 Stock Plan as of December 31, 2013: (i) stock options to purchase 3,553,016 shares of common stock, (ii) 81,549 restricted stock awards and (iii) 635,651 restricted stock units.
	(c) 1999 Long-Term Incentive Plan
	The 1999 Plan was approved by our shareholders in March 1999 and was superseded by the 2006 Stock Plan in June 2006. Accordingly, no additional awards or options may be granted thereunder. As of December 31, 2013, there were 223,058 stock options outstanding under the 1999 Plan.
	(d) Options Issued Outside the Plans
	As of December 31, 2013, there were stock options to purchase an aggregate of 180,000 shares of our common stock outstanding that were not granted under the 2006 Stock Plan, the 1999 Plan or the HDI 2011 Stock Plan, of which 180,000 stock options were granted in July 2007 to Walter D. Hosp, our Chief Financial Officer, under the terms of his employment agreement.
	(e) Summary of Stock Options
	Presented below is a summary of our stock option activity for the year ended December 31, 2013 (shares in thousands):
		Shares			Weighted		Weighted		Aggregate
					Average		Average		Intrinsic
					Exercise		Remaining		Value
					Price		Contractual
							Terms
	Outstanding at
	December 31, 2012		4,757		$	14.11
	Granted		1,287		$	21.78
	Exercised		(1,306	)	$	7.09
	Forfeitures		(424	)	$	23.98
	Expired		(41	)	$	14.13
	Outstanding at December 31, 2013		4,273		$	17.53		4.86	$	27,099
	Expected to vest at December 31, 2013		1,960		$	22.41		6.49	$	3,410
	Exercisable at December 31, 2013		2,267		$	13.2		3.42	$	23,608
	The fair value of each option grant was estimated using the appropriate valuation option pricing model. Expected volatilities are calculated based on the historical volatility of our common stock. Management monitors stock option exercises and employee termination patterns to estimate forfeiture rates within the valuation model. Separate groups of employees that have similar historical exercise behavior are considered separately for valuation purposes. The expected holding period of options represents the period of time that options granted are expected to be outstanding. The expected terms of options granted are based on our historical experience for similar types of stock option awards. The risk-free interest rate is based on U.S. Treasury notes.
	The weighted-average grant-date fair value per share of the stock options granted during the years ended December 31, 2013, 2012 and 2011 was $7.07, $9.35 and $8.47, respectively. We estimated the fair value of each stock option grant on the date of grant using a Black-Scholes option pricing model and weighted -average assumptions set forth in the following table:
		Year ended December 31,
		2013		2012		2011
	Expected dividend yield	0%		0%		0%
	Risk-free interest rate	1.21%		0.55%		0.86%
	Expected volatility	37.22%		40.13%		42.74%
	Expected life	4.51 years		4.47 years		4.57 years
	During the years ended December 31, 2013, 2012 and 2011, we issued 1.3 million shares, 1.7 million shares and 2.1 million shares, respectively, of our common stock upon the exercise of outstanding stock options and received proceeds of $9.3 million, $12.0 million and $12.7 million, respectively. The total intrinsic value of options exercised during the years ended December 31, 2013, 2012 and 2011 was $23.9 million, $39.6 million and $42.6 million, respectively.
	For the years ended December 31, 2013, 2012 and 2011, excluding the reversal of the $0.1 million expense related to the cancellation of the performance-based stock options, approximately $6.7 million, $7.3 million and $5.6 million, respectively, of stock-based compensation cost relating to stock options has been charged against income.
	As of December 31, 2013, there was approximately $27.6 million of total unrecognized compensation cost, adjusted for estimated forfeitures, related to stock options outstanding, which is expected to be recognized over a weighted-average period of 1.7 years.
	(f) Restricted Stock Units
	In 2013, 2012 and 2011, certain employees received restricted stock units under the 2006 Stock Plan. The fair value of restricted stock units is estimated based on the closing sale price of our common stock on the NASDAQ Global Select Market on the date of issuance. The total number of restricted stock units expected to vest is adjusted by estimated forfeiture rates. As of December 31, 2013, 2012 and 2011, 571,204, 379,734 and 474,739 restricted stock units remain unvested and there was approximately $11.6 million, $4.1 million and $6.5 million, respectively, of unamortized compensation cost related to restricted stock units which is expected to be recognized over the remaining weighted-average vesting period of 1.6 years.
	For the years ended December 31, 2013, 2012 and 2011, stock-based compensation expense related to restricted stock units, was $4.5 million, $1.0 million and $2.0 million, respectively.
	A summary of the status of our restricted stock units and of changes in restricted stock units outstanding under the 2006 Stock Plan, as amended, as of December 31, 2013 is as follows (in thousands, except for weighted average grant date fair value per unit):
		Number of			Weighted Average		Aggregate
		Units			Grant Date Fair		Intrinsic
					Value per Share		Value
	Outstanding balance at December 31, 2012		446		$	25.44
	Granted		390			25.34
	Vesting of restricted stock units, net of shares withheld for taxes		(85	)		25.38
	Shares withheld for taxes		(39	)		25.38
	Forfeitures		(76	)		25.21
	Outstanding balance at December 31, 2013		636		$	25.5	$	14,429
	(g) Restricted Stock Awards
	Certain executive officers have received grants of restricted stock awards under the 2006 Stock Plan. The vesting of restricted stock awards is subject to the executive officers' continued employment with us. Recipients of restricted stock awards are not required to provide us with any consideration other than rendering service and in addition, restricted stock holders are permitted to vote and receive dividends.
	The stock-based compensation expense for restricted stock awards is determined based on the closing market price of our common stock on the grant date of the awards applied to the total number of awards that are anticipated to fully vest. Shares withheld to pay taxes are retired upon the vesting of the restricted stock awards. We did not issue restricted stock awards during the year ended December 31, 2013. At December 31, 2013, approximately 81,549 shares underlying restricted stock awards remained unvested and there was approximately $89,889 of unrecognized compensation cost related to restricted stock awards, which is expected to be recognized over the weighted- average period of 0.1 years (1.6 months). For each of the years ended December 31, 2013, 2012 and 2011, stock-based compensation expense related to restricted stock awards was $0.7 million, $0.8 million, and $0.8 million, respectively.
A summary of the status of our restricted stock awards as of December 31, 2013 and of changes in restricted stock awards outstanding under the 2006 Stock Plan for the year ended December 31, 2013 is as follows (in thousands, except for weighted average grant date fair value):
	Shares			Weighted Average		Aggregate
				Grant Date Fair		Intrinsic
				Value per Share		Value
Outstanding balance at December 31, 2012		192		$	10.42
Granted		—			—
Vesting of restricted stock awards		(61	)	$	10.42
Shares withheld for payment of taxes upon vesting of restricted stock awards		(35	)	$	10.42
Forfeitures		(14	)	$	10.42
Outstanding balance at December 31, 2013		82		$	10.42	$	1,851

Earnings_per_Share

Earnings per Share	12 Months Ended
	Dec. 31, 2013
Earnings per Share	'
Earnings per Share	'
	11. Earnings per Share
	The following table sets forth the computation of basic and diluted earnings per share for the years ended December 31, 2013, 2012 and 2011.
		Years Ended December 31
	Basic and diluted	2013		2012		2011
		(in thousands, except per share data)
	Net income	$	39,997	$	50,516	$	47,785
	Net weighted average common shares outstanding, basic		87,598		86,204		84,588
	Plus: net effect of dilutive stock options and restricted common shares		746		2,161		2,856
	Weighted average common shares outstanding, diluted		88,344		88,365		87,444
	Income per common share—Basic	$	0.46	$	0.59	$	0.56
	Income per common share—Diluted	$	0.45	$	0.57	$	0.55
	For the years ended December 31, 2013, 2012 and 2011, 1,111,795, 566,876 and 441,863 stock options, respectively, were not included in the diluted earnings per share calculation because the effect would have been anti-dilutive. For the years ended December 31, 2013 and 2012, restricted stock units representing 88,327 and 50,300 shares of common stock, respectively, were not included in the diluted earnings per share calculation because the effect would have been anti-dilutive. Restricted stock units for the year ended December 31, 2011 were all diluted.

Transactions_with_Officers_Rel

Transactions with Officers, Related Parties and Others	12 Months Ended
	Dec. 31, 2013
Transactions with Officers, Related Parties and Others	'
Transactions with Officers, Related Parties and Others	'
	12. Transactions with Officers, Related Parties and Others
	(a) Public Consulting Group, Inc.
	One of our former directors is the President, Chief Executive Officer, controlling stockholder and a member of the Board of Directors of Public Consulting Group, Inc., or PCG. Since our acquisition of Benefits Solutions Practice Area (BSPA) in 2006, we have entered into subcontractor agreements with PCG, pursuant to which we provide cost containment services. In February 2013, we further amended and extended our Master Teaming and Non-Compete Agreements with PCG, first entered into in September 2006, and (ii) Supplementary Medicaid RAC Contract Teaming and Confidentiality with PCG, first entered into in July 2011. Both of these agreements expired on December 31, 2013.
	For the years ended December 31, 2013, 2012, 2011, amounts we recognized as revenue under subcontractor agreements with PCG were $0.4 million, $0.6 million and $1.5 million, respectively. As of December 31, 2013, there were no accounts receivable outstanding related to these subcontract agreements with PCG. As of December 31, 2012, accounts receivable outstanding related to these subcontract agreements with PCG was $0.3 million.
	In connection with the BSPA acquisition, we entered into an Intercompany Services Agreement (ISA) with PCG to allow each party to perform services for the other, such as information technology support and contractual transition services. Services performed under the ISA were billed at pre-determined rates specified in the ISA. For the years ended December 31, 2013, 2012 and 2011 services rendered by PCG under the ISA were valued at approximately $42,000, $58,000 and $175,000, respectively. For the years ended December 31, 2013, 2012 and 2011 our services rendered to PCG were valued at approximately $70,000, $41,000 and $67,000, respectively.
	Since the BSPA acquisition, amounts collected by or paid on our behalf by PCG are reimbursed to PCG at cost. For the years ended December 31, 2013 and 2012 we did not owe any amount to PCG.
	(b) Employment Agreements
	Effective March 1, 2013, and as amended on April 30, 2013 we entered into a new Executive Employment Agreement with William C. Lucia, our President and Chief Executive Officer on substantially the same terms as his prior agreement which expired on February 28, 2013. Unless earlier terminated, this agreement will terminate on February 28, 2015. Mr. Lucia is eligible to receive bonus compensation from us in respect of each fiscal year (or portion thereof) during the term of his employment, in each case as may be determined by our Compensation Committee in its sole discretion on the basis of performance or such other criteria as may be established from time to time by the Compensation Committee in its sole discretion. Mr. Lucia's annualized base salary remains at $650,000 and his target bonus remains at 100% of his base salary.
	If we terminate Mr. Lucia's employment without Cause, in connection with a Change in Control (as defined in the agreement) or otherwise, or if his employment ceases because of his disability or if he terminates his employment with Good Reason (as defined in the agreement), then provided Mr. Lucia executes and does not revoke a separation agreement and release and complies with certain restrictive covenants, he will be entitled to receive cash severance in an amount equal to (i) 24 times his monthly base salary paid ratably in equal installments over a 24 month period, (ii) twice a bonus component that will vary depending upon whether the bonus for the year of termination is intended to be performance-based compensation and the performance is satisfied or whether the bonus is under a different program, in which case it will be his target bonus and will be paid on the same schedule as (i) above, and (iii) continued health coverage for 24 months or until he becomes eligible for health coverage from another employer, whichever is earlier.
	In addition, under the terms of our employment agreements with our other executive officers, under certain circumstances, we could be required to provide severance in an amount equal to 12 times his/her monthly base salary plus a lump sum amount equal to 12 times the difference between the monthly COBRA coverage premium for the same type of medical and dental coverage the executive is receiving as of the date his/her employment ends and his/her then monthly employee contribution, which amount may be used for any purpose.

Commitments_and_Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2013
Commitments and Contingencies	'
Commitments and Contingencies	'
	13. Commitments and Contingencies
	Lease commitments
	We lease office space, data processing equipment and software licenses under operating leases that expire on various dates through 2016. The lease agreements provide for rent escalations. Lease expense, exclusive of sublease income, for the years ended December 31, 2013, 2012 and 2011, was $7.6 million, $7.6 million and $6.7 million, respectively. Lease and sublease income was $0.3 million, $0.6 million and $1.4 million, for the years ended December 31, 2013, 2012 and 2011, respectively.
	Minimum annual lease payments to be made both under capital leases and operating leases, and sublease payments to be received for each of the next five years ending December 31 and thereafter are as follows (in thousands):
	Year	Capital		Operating
		Lease		Lease
		Payments		Payments
	2014	$	1,679	$	7,860
	2015		1,140		5,054
	2016		36		3,776
	2017		—		2,588
	2018		—		2,172
	Thereafter		—		4,243
	Total	$	2,855	$	25,693
	From time to time, we may be subject to investigations, legal proceedings and other disputes arising in the ordinary course of our business, including but not limited to regulatory audits, billing and contractual disputes and employment-related matters. We record accruals for outstanding legal matters when we believe it is probable that a loss will be incurred and the amount can be reasonably estimated. We evaluate, on a quarterly basis, developments in legal matters that could affect the amount of any accrual and developments that would make a loss contingency both probable and reasonably estimable. If a loss contingency is not both probable and estimable, we do not establish an accrued liability. None of our accruals for outstanding legal matters are material in the aggregate to our financial position.
	Our contractual relationships, including those with federal and state government entities, subject to our operations, billing, and business practices to scrutiny and audit, including by multiple agencies and levels of government, as well as to frequent transitions and changes in the personnel responsible for oversight of our contractual performance. From time to time, we may have contractual disputes with our clients arising from differing interpretations of contractual provisions that define our rights, obligations, scope of work, or terms of payment, and with associated claims of liability for inaccurate or improper billing for reimbursement of contract fees, or for sanctions or damages for alleged performance deficiencies. Resolution of such disputes may involve litigation or may require that we accept some amount of loss or liability in order to avoid client abrasion, negative marketplace perceptions and other disadvantageous results that could impact our business, results of operations and financial condition.
	As of December 31, 2013, we accrued $2.2 million for litigation or other legal proceedings asserted or pending against us that could have, in the aggregate, a material adverse effect on our financial position, results of operations or cash flows, and believe that adequate provision for any probable and estimable losses has been made in our consolidated financial statements. However, the ultimate result of any current or future litigation or other legal proceedings, audits or disputes is inherently unpredictable and could result in liabilities that are higher than currently predicted.

Customer_Concentration

Customer Concentration	12 Months Ended
	Dec. 31, 2013
Customer Concentration	'
Customer Concentration	'
	14. Customer Concentration
	(a) Geographic Information
	We operate within the continental United States.
	(b) Major Clients
	Our largest client in 2013 was CMS, which accounted for 22.3%, 18.2% and 2.4% of our total revenue for the years ended December 31, 2013, 2012 and 2011, respectively. CMS has been our client since 2006 and since that time we have performed work for CMS directly and as a subcontractor, under several contracts. Our largest contract with CMS is through HDI, under which HDI has served as the Medicare RAC for Region D since October 2008 and which, after multiple contract modifications, now expires in April 2016. In February 2013, CMS began the reprocurement process for the Medicare Recovery Audit Program contracts. After a protest was filed on the initial Request for Quote (RFQ), CMS took corrective action and between December 2013 and January 2014, issued five new RFQs for the Medicare Recovery Audit Program contracts. The new RFQs have been protested, including by us, and we are awaiting the Government Accountability Office (GAO's) decision on the protests, which is expected during the second quarter of 2014. On February 18, 2014, CMS announced its decision to pause the operations of the current Medicare Recovery Auditors establishing June 1, 2014 as the last day that we can submit improper payment files for processing.
	Our second largest client in 2013 was the New Jersey Department of Human Services. This client accounted for 5.6%, 6.4% and 7.0% of our total revenue for the years ended December 31, 2013, 2012 and 2011, respectively. We provide services to this client pursuant to a contract that was originally awarded in January 2008 and extends through June 2014. The contract was also expanded in 2011 to designate us as the Medicaid RAC for the state.
	Our third largest client in 2013 was the New York Department of Health. This client accounted for 4.6%, 5.2% and 6.9% of our total revenue for the years ended December 31, 2013, 2012 and 2011, respectively. We provide services to this client pursuant to a contract that expires in January 2015.
	(c) Concentration of Revenue
	The list of our ten largest clients changes periodically. For the years ended December 31, 2013, 2012 and 2011, the concentration of revenue from our ten largest clients represented 47.2%, 46.9% and 37.9% of our revenue, respectively. Our three largest clients accounted for approximately 32.6%, 29.8% and 18.0% of our revenue for each of the years ended December 31, 2013, 2012 and 2011, respectively. Our agreements with our ten current largest clients expire between 2014 and 2016. In many instances, we provide our services pursuant to agreements that may be renewed subject to a competitive reprocurement process. Several of our contracts, including those with our ten largest clients, may be terminated for convenience.

Subsequent_Events

Subsequent Events	12 Months Ended
	Dec. 31, 2013
Subsequent Events	'
Subsequent Events	'
	15. Subsequent Events
	In connection with the preparation of these audited Consolidated Financial Statements, an evaluation of subsequent events was performed through the date these audited Consolidated Financial Statements were issued and there are no other events that have occurred that would require adjustments or disclosure to our audited Consolidated Financial Statements.

Quarterly_Financial_Data_unaud

Quarterly Financial Data (unaudited)	12 Months Ended
	Dec. 31, 2013
Quarterly Financial Data (unaudited)	'
Quarterly Financial Data (unaudited)	'
	16. Quarterly Financial Data (unaudited)
	The table below summarizes our unaudited quarterly operating results for the last two fiscal years (in thousands, except per share amounts).
	Year ended December 31, 2013(1)	First		Second		Third		Fourth
		Quarter		Quarter		Quarter		Quarter
	Revenue	$	116,607	$	125,809	$	127,754	$	121,592
	Operating income	$	15,268	$	20,366	$	21,283	$	20,261
	Net income and comprehensive income	$	6,976	$	10,420	$	11,508	$	11,093
	Basic net income per share	$	0.08	$	0.12	$	0.13	$	0.13
	Diluted net income per share	$	0.08	$	0.12	$	0.13	$	0.13
	Year ended December 31, 2012(1)
	Revenue	$	107,314	$	120,069	$	113,217	$	133,096
	Operating income	$	16,041	$	25,596	$	20,713	$	37,162
	Net income and comprehensive income	$	7,043	$	12,980	$	10,507	$	19,986
	Basic net income per share	$	0.08	$	0.15	$	0.12	$	0.23
	Diluted net income per share	$	0.08	$	0.15	$	0.12	$	0.23
	-1
	The summation of the above quarterly results may not agree to the full year 2013 reported results as amounts have been rounded for presentation purposes.

SCHEDULE_IIVALUATION_AND_QUALI

SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS	12 Months Ended
	Dec. 31, 2013
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS	'
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS	'
	SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS
	For the years ended December 31, 2013 and 2012
	Allowance for doubtful accounts and estimated liability for appeals as of December 31, 2013 and 2012 are as follows:
	Allowance for doubtful accounts (in thousands):
	Balance, December 31, 2011	$	1,158
	Provision		19
	Recoveries		—
	Charge-offs		(347	)
	Balance, December 31, 2012	$	830
	Provision		718
	Recoveries		(42	)
	Charge-offs		(590	)
	Balance, December 31, 2013	$	916
	Estimated liability for appeals (in thousands):
	Balance, December 31, 2011	$	13,381
	Provision		28,250
	Appeals found in Providers favor		(7,205	)
	Balance, December 31, 2012	$	34,426	*
	Provision		41,076
	Appeals found in Providers favor		(19,711	)
	Balance, December 31, 2013	$	55,791	*
	*
	Includes $13,939 and $7,082 related to estimated allowance for appeals that apply to uncollected accounts receivable as of December 31, 2013 and December 31, 2012, respectively.

Summary_of_Significant_Account1

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2013
Summary of Significant Accounting Policies	'
Principles of Consolidation	'
	(b) Principles of Consolidation
	The consolidated financial statements include our accounts and transactions and those of our wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation.
Use of Estimates	'
	(c) Use of Estimates
	The preparation of the consolidated financial statements in conformity with United States generally accepted accounting principles, or U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, primarily accounts receivable, intangible assets, accrued expenses, estimated liability for appeals and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. Our actual results could differ from those estimates.
Reclassifications	'
	(d) Reclassifications
	Certain reclassifications were made to prior year amounts to conform to the current period presentation.
Cash and Cash Equivalents	'
	(e) Cash and Cash Equivalents
	We consider all highly liquid investments with an original maturity of three months or less to be cash equivalents. Cash equivalents consist of deposits that are readily convertible into cash.
Concentration of Credit Risk	'
	(f) Concentration of Credit Risk
	Financial instruments (principally cash and cash equivalents, accounts receivable, accounts payable and accrued expenses) are carried at cost, which approximates fair value due to the short-term maturity of these instruments. Our long-term debt or revolving credit facility is carried at cost. Due to the variable interest rate associated with the revolving credit facility, its fair value approximates its carrying value.
	Our policy is to limit our credit exposure by placing our investments with financial institutions evaluated as being creditworthy, or in short-term money market funds which are exposed to minimal interest rate and credit risk. We maintain our cash in cash depository accounts and certificate of deposits with large financial institutions. The balance in certain of these accounts exceeds the maximum balance insured by the Federal Deposit Insurance Corporation of up to $0.25 million per bank account. We have not experienced any losses on our bank deposits and we believe these deposits do not expose us to any significant credit risk.
	We are subject to potential credit risk related to changes in economic conditions within the healthcare market. However, we believe that our billing and collection policies are adequate to minimize the potential credit risk. We perform ongoing credit evaluations of our clients and generally do not require collateral. We have no history of significant losses from uncollectible accounts.
Property and Equipment	'
	(g) Property and Equipment
	Property and equipment are stated at cost less accumulated depreciation. Depreciation is provided over the estimated useful lives of the assets utilizing the straight-line method. We provide amortization of leasehold improvements on a straight-line basis over the shorter of a five year period or the term of the related lease. Equipment leased under capital leases is depreciated over the shorter of (i) the term of the lease and (ii) the estimated useful life of the equipment. The depreciation expense on assets acquired under capital leases is included in our Consolidated Statements of Comprehensive Income as depreciation expense. The estimated useful lives are as follows:
	Equipment	2 - 3 years
	Leasehold improvements	3 - 5 years
	Furniture and fixtures	5 - 7 years
	Building and building improvements	up to 39.5 years
Software and Software Development Cost	'
	(h) Software and Software Development Cost
	Certain software development costs related to software that is acquired or developed for internal use while in the application development stage are capitalized. All other costs to develop software for internal use, either in the preliminary project stage or post-implementation stage, are expensed as incurred. Amortization of software and software development costs is calculated on a straight-line basis over the expected economic life of the product, generally estimated to be 5 years.
Goodwill	'
	(i) Goodwill
	Goodwill, representing the excess of acquisition costs over the fair value of assets and liabilities of acquired businesses, is not amortized; rather it is subject to a periodic assessment for impairment by applying a fair value based test. Goodwill is assessed for impairment on an annual basis in the second quarter of each year or more frequently if events or changes in circumstances indicate that the asset might be impaired. Fair value is based on a projection of the estimated discounted future net cash flows expected to be achieved from a reporting unit using a discount rate reflective of our cost of funds. The fair value of the reporting unit is compared with the asset's recorded value. If the recorded value is less than the fair value of the reporting unit, no impairment is indicated. If the fair value of the reporting unit is less than the recorded value, an impairment charge is recognized for the difference between the carrying value and the fair value. No impairment losses have been recorded in any of the periods presented. HMS and HDI reporting units are aggregated into a single reporting unit for the purposes of the goodwill impairment test. The single reporting unit is at the entity level of HMS Holdings Corp.
	We evaluate the recoverability of goodwill annually and whenever events or changes in circumstances indicate that an asset's carrying amount may not be recoverable. Such circumstances could include, but are not limited to (i) a significant decrease in the market value of an asset, (ii) a significant adverse change in the extent or manner in which an asset is used, or (iii) an accumulation of costs significantly in excess of the amount originally expected for the acquisition of an asset.
Long-Lived Assets	'
	(j) Long-Lived Assets
	Long-lived assets, which include property and equipment and intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying value of its asset group to the estimated undiscounted future net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying value of the asset group exceeds the fair value of the assets, which amount is charged to earnings. Fair value is based on a projection of the estimated discounted future net cash flows expected to result from the asset group, using a discount rate reflective of our cost of funds.
	For long-lived assets and intangible assets, we measure the carrying amount of the asset against the estimated undiscounted future cash flows associated with it. If the sum of the expected future net cash flows is less than the carrying value of the asset being evaluated, we would recognize an impairment charge. The impairment charge would be calculated as the amount by which the carrying value of the asset exceeds its fair value. The determination of fair value is based on quoted market prices, if available. If quoted market prices are not available, the estimate of fair value is based on various valuation techniques, including the discounted value of estimated future cash flows. We did not recognize any impairment charges related to our long-lived assets, property and equipment, goodwill or intangible assets, during the years ended December 31, 2013 and 2012, as management believes that carrying amounts were not impaired.
Acquisition Accounting	'
	(k) Acquisition Accounting
	The acquisition method of accounting requires companies to assign values to assets acquired and liabilities assumed based upon their fair value. In most instances there is not a readily defined or listed market price for individual assets and liabilities acquired in connection with a business, including intangible assets. The determination of fair value for individual assets and liabilities in many instances requires a high degree of estimation. The valuation of intangible assets, in particular, is very subjective. The use of different valuation techniques and assumptions could change the amounts and useful lives assigned to the assets and liabilities acquired, including goodwill and other intangible assets and related amortization expense.
Income Taxes	'
	(l) Income Taxes
	Income taxes are accounted for under the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary and permanent differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. This method also requires the recognition of future tax benefits for net operating loss (NOL) carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized as income in the period that includes the enactment date. A valuation allowance is provided against deferred tax assets to the extent their realization is not more likely than not.
	Uncertain income tax positions are accounted for by prescribing a minimum recognition threshold that a tax position is required to meet before being recognized in the financial statements.
Revenue Recognition and Estimated Liability for Appeals	'
	(m) Revenue Recognition and Estimated Liability for Appeals
	We provide products and services under contracts that contain various fee structures, including contingency fee and fixed fee arrangements. We recognize revenue when a contract exists, products or services have been provided to the client, the fee is fixed and determinable, and collectability is reasonably assured. In addition, we have contracts with the federal government which are generally cost-plus or time and material based. Revenue on cost-plus contracts is recognized based on costs incurred plus an estimate of the negotiated fee earned. Revenue on time and materials contracts is recognized based on hours worked and expenses incurred.
	Under our Medicare RAC contract with CMS, our Medicaid RAC contracts with various states, and similar contracts for commercial clients, we recognize revenue when claims are sent to the client for offset against future claims payments. Providers have the right to appeal a claim and may pursue additional appeals if the initial appeal is found in favor of the client. We accrue an estimated liability for appeals based on the amount of fees that are subject to appeals, closures or other adjustments and which we estimate are probable of being returned to providers following a successful appeal. This estimated liability for appeals is an offset to revenue in our Consolidated Statements of Comprehensive Income. Our estimates are based on our historical experience with appeals. The estimated liability for appeals of $41.9 million at December 31, 2013, and $27.3 million as of December 31, 2012, represents our estimate of the potential amount of repayments related to appeals of claims, closures, and other adjustments for which fees were previously collected. This is reflected as a separate line item in the current liabilities section of our balance sheet titled "Estimated liability for appeals". To the extent the amount to be returned to providers following a successful appeal, closure, or other adjustment exceeds the amount accrued; revenue in the applicable period would be reduced by the amount of the excess.
	As of December 31, 2013, we have accrued an estimated liability for appeals and estimated allowance for appeals based on our historical experience with this activity under our clients' contracts. At this time, we do not believe that we face a risk of significant loss in excess of the amounts accrued. Accordingly, we believe that an estimate of any reasonably possible loss in excess of the amounts accrued is immaterial. Any future changes to any of our client contracts, including further modifications to the transition plan for incumbent Medicare recovery audit contractors, may require us to apply different assumptions that could affect our estimated liability for future periods. We similarly accrue an allowance against accounts receivable related to fees yet to be collected, based on the same estimates used to establish the estimated liability for appeals of fees received. Our inability to correctly estimate the estimated liabilities and allowance against accounts receivable could adversely affect our revenue in future periods.
	Where contracts have multiple deliverables, we evaluate these deliverables at the inception of each contract and as each item is delivered. As part of this evaluation, we (i) consider whether a delivered item has value to a client on a standalone basis; (ii) use the vendor specific objective evidence (VSOE) of selling price or third party estimate (TPE) of selling price. If neither VSOE nor TPE of selling price exist for a deliverable, we use best estimated selling price for that deliverable; and (iii) allocate revenue to each non-contingent element based upon the relative selling price of each element. Revenue allocated to each element is then recognized when the above four basic revenue recognition criteria are met for each element. Arrangements, including implementation and transaction related revenue, are accounted for as a single unit of accounting. Since implementation services do not carry a standalone value, the revenue relating to these services is recognized over the term of the client contract to which it relates.
	In addition, some of our contracts may include client acceptance provisions. Formal client sign-off is not always necessary to recognize revenue, provided we objectively demonstrate that the criteria specified in the acceptance provision are satisfied. Due to the range of products and services that we provide and the differing fee structures associated with each type of contract, we may recognize revenue in irregular increments.
Stock-Based Compensation	'
	(n) Stock-Based Compensation
	The cost of stock-based compensation is recognized in our Consolidated Statements of Comprehensive Income based on the fair value of all awards granted using the Black-Scholes method and the Monte Carlo option pricing model for valuation. The Black-Scholes option pricing model is used for "non-performance-based" grants and the Monte Carlo option pricing model is used for performance-based grants with certain market conditions. The fair value of each award is determined and the compensation cost is recognized over the service period required to obtain full vesting. Compensation cost to be recognized reflects an estimate of the number of awards expected to vest after taking into consideration an estimate of award forfeitures based on actual experience. Upon the exercise of stock options or the vesting of restricted stock units and restricted stock awards, the resulting excess tax benefits, if any, are credited to additional paid-in capital. Any resulting tax deficiencies will first be offset against those cumulative credits to additional paid-in capital. If the cumulative credits to additional paid-in capital are exhausted, tax deficiencies will be recorded to the provision for income taxes. Excess tax benefits are required to be reflected as financing cash inflows in the accompanying Consolidated Statements of Cash Flows.
Fair Value of Financial Instruments	'
	(o) Fair Value of Financial Instruments
	We measure certain financial assets and liabilities at fair value based on valuation techniques using the best information available, which may include quoted market prices, market comparables and discounted cash flow projections. Financial instruments may include time deposits, money market funds, and other cost method investments. In general, and where applicable, we use quoted prices in active markets for identical assets to determine fair value. If quoted prices in active markets for identical assets are not available to determine fair value, then we use quoted prices for similar assets and liabilities or inputs that are observable either directly or indirectly. If quoted prices for identical or similar assets are not available, we use internally developed valuation models, whose inputs include bid prices, and third party valuations utilizing underlying asset assumptions.
	The fair values of our financial instruments reflect the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). In addition, the Financial Accounting Standards Board, or the FASB, authoritative guidance requires us to disclose the fair value of financial instruments, both assets and liabilities recognized and not recognized in the statement of financial position, for which it is practicable to estimate fair value.
	Our financial instruments are categorized into a three-level fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure fair value fall within different levels of the hierarchy, the category level is based on the lowest priority level input that is significant to the fair value measurement of the instrument. In the event the fair value is not readily available/determinable, the financial instrument is carried at cost and referred to as a cost method investment. The evaluation of whether an investment's fair value is less than cost is determined by using a disclosed fair value estimate, if one is available, otherwise, it is determined by evaluating whether an event or change in circumstances has occurred that may have a significant adverse effect on the fair value of the investment (an impairment indicator). We are not aware of any identified events or change in circumstances that would have a significant adverse effect on the carrying value of our cost method investments. Financial instruments recorded at fair value on our consolidated balance sheets are categorized as follows:
	•
	Level 1: Observable inputs such as quoted prices in active markets;
	•
	Level 2: Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and
	•
	Level 3: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.
Leases	'
	(p) Leases
	We account for our lease agreements at their inception as either operating or capital leases, depending on certain defined criteria. We recognize lease costs on a straight-line basis without regard to deferred payment terms, such as rent holidays, that defer the commencement date of required payments. Additionally, incentives we receive, such as tenant improvement allowances, are capitalized and are treated as a reduction of our rental expense over the term of the lease agreement.
Recently Issued Accounting Pronouncements	'
	(q) Recently Issued Accounting Pronouncements
	In December 2011, the Financial Accounting Standards Board, or FASB issued Accounting Standards Update (ASU) 2011-11, Balance Sheet (Topic 210), Disclosures about Offsetting Assets and Liabilities, updated by ASU 2013-01, Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities, which requires companies to disclose information about financial instruments that have been offset and related arrangements to enable users of the company's financial statements to understand the effect of those arrangements on the company's financial position. Companies will be required to provide both net (offset amounts) and gross information in the notes to the financial statements for relevant assets and liabilities that are offset. ASU 2011-11, as amended by ASU 2013-01, is effective for fiscal years, and interim periods within those years, beginning on or after January 1, 2013. The adoption of this guidance did not have a material effect on our consolidated financial statements.
	In July 2012, FASB issued ASU No. 2012-02, Intangibles—Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment. This newly issued accounting standard allows an entity the option to first assess qualitative factors to determine whether it is necessary to perform a quantitative impairment test for indefinite-lived intangibles other than goodwill. Under that option, an entity would no longer be required to calculate the fair value of an indefinite-lived intangible asset unless the entity determines, based on that qualitative assessment, that it is more likely than not that the fair value of the indefinite-lived intangible asset is less than its carrying amount. This ASU is effective for annual and interim indefinite-lived intangible asset impairment tests performed for fiscal years beginning after September 15, 2012. Early adoption is permitted. The adoption of this guidance did not have a material effect on our consolidated financial statements.
	In March 2013, FASB issued ASU No. 2013-04, Obligations Resulting from Joint and Several Liability Arrangements for which the Total Amount of the Obligation is Fixed at the Reporting Date, which addresses the recognition, measurement, and disclosure of certain joint and several obligations including debt arrangements, other contractual obligations, and settled litigation and judicial rulings. The ASU is effective for public entities for fiscal years, and interim periods within those years, beginning after December 15, 2013. The adoption of this guidance did not have a material effect on our consolidated financial statements.

Summary_of_Significant_Account2

Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2013
Summary of Significant Accounting Policies	'
Schedule of the estimated useful lives of property and equipment	'
	Equipment	2 - 3 years
	Leasehold improvements	3 - 5 years
	Furniture and fixtures	5 - 7 years
	Building and building improvements	up to 39.5 years

Acquisitions_Tables

Acquisitions (Tables) (Health Data Insights, Inc)	12 Months Ended
	Dec. 31, 2013
Health Data Insights, Inc	'
Acquisitions	'
Schedule of pro forma Consolidated Statements of Income	'
	The following represents our pro forma Consolidated Statements of Income as if HDI had been included in our consolidated results for the year ended December 31, 2011 (in thousands, except per share data):
	(unaudited)	For the year ended
		December 31, 2011
	Total revenue	$	423,390
	Net income	$	39,207
	Earnings per share:
	Basic	$	0.46
	Diluted	$	0.45

Property_and_Equipment_Tables

Property and Equipment (Tables)	12 Months Ended
	Dec. 31, 2013
Property and Equipment	'
Components of property and equipment	'
	Property and equipment at December 31, 2013 and 2012 consisted of the following (in thousands):
		December 31,
		2013			2012
	Equipment	$	86,494		$	71,776
	Leasehold improvements		3,712			6,496
	Building		8,624			8,624
	Building improvements		7,404			6,757
	Land		1,163			1,128
	Furniture and fixtures		11,045			13,454
	Capitalized software		97,555			94,269
			215,997			202,504
	Less accumulated depreciation and amortization		(92,991	)		(73,177	)
	Property and equipment, net	$	123,006		$	129,327

Intangible_Assets_Tables

Intangible Assets (Tables)	12 Months Ended
	Dec. 31, 2013
Intangible Assets	'
Summary of intangible assets	'
	Intangible assets consisted of the following at December 31, 2013 and 2012 (in thousands):
		December 31,
		2013			2012			Useful Life
	Client relationships	$	102,755		$	130,105		5 - 10 years
	Restrictive covenants		18,300			19,600		3 - 7 years
	Trade name		19,532			19,733		3 - 5 years
			140,587			169,438
	Less accumulated amortization		(45,275	)		(50,319	)
	Intangible assets, net	$	95,312		$	119,119
Schedule of estimated amortization expense of intangible assets	'
	Estimated amortization expense of intangible assets is expected to approximate the following (in thousands):
	Year ending December 31,
	2014	$	20,733
	2015	$	20,270
	2016	$	19,934
	2017	$	16,613
	Thereafter	$	17,762
Schedule of changes in the carrying amount of goodwill	'
	The changes in the carrying amount of goodwill for the years ended December 31, 2013 and 2012 are as follows (in thousands):
	Balance at December 31, 2011	$	361,786
	HDI measurement period adjustments		(2,256	)
	Acquisition of MRM		1,938
	Balance at December 31, 2013 and 2012	$	361,468

Accounts_Payable_Accrued_Expen1

Accounts Payable, Accrued Expenses and Other Liabilities (Tables)	12 Months Ended
	Dec. 31, 2013
Accounts Payable, Accrued Expenses and Other Liabilities	'
Schedule of accounts payable, accrued expenses and other liabilities	'
	Accounts payable, accrued expenses and other liabilities at December 31, 2013 and 2012 consisted of the following (in thousands):
		December 31,
		2013		2012
	Accounts payable, trade	$	7,217	$	10,874
	Accrued compensation		15,419		11,104
	Accrued direct project costs		1,629		1,996
	Accrued refunds		2,667		1,253
	Accrued other liabilities		10,191		13,839
	Total Accounts Payable, Accrued Expenses and Other Liabilities	$	37,123	$	39,066

Income_Taxes_Tables

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2013
Income Taxes	'
Schedule of income tax expense	'
	The income tax expense for the years ended December 31, 2013, 2012 and 2011 is as follows (in thousands):
		December 31,
		2013			2012			2011
	Current tax expense:
	Federal	$	25,211		$	33,456		$	25,229
	State		4,736			5,696			6,131
			29,947			39,152			31,360
	Deferred tax expense/(benefit):
	Federal		(3,485	)		(6,085	)		1,971
	State		(869	)		(238	)		(153	)
			(4,354	)		(6,323	)		1,818
	Total income tax expense	$	25,593		$	32,829		$	33,178
Schedule of reconciliation of the income tax expense calculated using the applicable federal statutory rates to the actual income tax expense	'
	A reconciliation of the income tax expense calculated using the applicable federal statutory rates to the actual income tax expense for the years ended December 31, 2013, 2012 and 2011 is as follows (in thousands):
		December 31,
		2013			%			2012			%		2011		%
	Computed at federal statutory rate	$	22,946			35		$	29,171			35	$	28,337		35
	State and local tax expense, net of federal benefit		2,448			3.7			3,548			4.3		3,907		4.8
	Other, net		199			0.3			110			0.1		934		1.2
	Total income tax expense	$	25,593			39		$	32,829			39.4	$	33,178		41
Schedule of effects of temporary differences that give rise to the deferred tax assets and deferred tax liabilities	'
	The tax effect of temporary differences that give rise to a significant portion of the deferred tax assets and deferred tax liabilities at December 31, 2013 and 2012 were as follows (in thousands):
		December 31,
		2013			2012
	Deferred tax assets:
	Allowance for doubtful accounts and deferred revenue	$	669		$	422
	Restructuring cost		369			142
	Goodwill and other intangibles		7,679			7,261
	Accounts receivables		1,905			5,043
	Net operating loss carry forwards		69			52
	Deferred stock compensation		6,112			5,311
	Deferred rent		215			226
	Other		843			1,410
	Total deferred tax assets before valuation allowance		17,861			19,867
	Less valuation allowance		—			(81	)
	Total deferred tax assets after valuation allowance		17,861			19,786
	Deferred tax liabilities:
	Goodwill and other intangibles		64,317			72,106
	Capitalized software cost		2,995			2,946
	Prepaid expenses		1,111			—
	Property and equipment		8,287			7,937
	Total deferred tax liabilities		76,710			82,989
	Total net deferred tax liabilities	$	58,849		$	63,203
	Net current deferred tax liabilities	$	6,326		$	2,398
	Net non-current deferred tax liabilities		52,523			60,805
	Total net deferred liabilities	$	58,849		$	63,203

Credit_Agreement_Tables

Credit Agreement (Tables)	12 Months Ended
	Dec. 31, 2013
Credit Agreement	'
Schedule of interest expense on revolving credit facility and commitment fees and unused revolving credit facility	'
	The interest expense on our revolving credit facility and commitment fees and our unused revolving credit facility are as follows (in thousands):
		December 31,
		Year ended
		2013		2012		2011
	Interest expense	$	8,156	$	12,200	$	520
	Commitment fees	$	887	$	500	$	52

StockBased_Compensation_Tables

Stock-Based Compensation (Tables)	12 Months Ended
	Dec. 31, 2013
Stock-Based Compensation	'
Summary of stock option activity	'
	Presented below is a summary of our stock option activity for the year ended December 31, 2013 (shares in thousands):
		Shares			Weighted		Weighted		Aggregate
					Average		Average		Intrinsic
					Exercise		Remaining		Value
					Price		Contractual
							Terms
	Outstanding at
	December 31, 2012		4,757		$	14.11
	Granted		1,287		$	21.78
	Exercised		(1,306	)	$	7.09
	Forfeitures		(424	)	$	23.98
	Expired		(41	)	$	14.13
	Outstanding at December 31, 2013		4,273		$	17.53		4.86	$	27,099
	Expected to vest at December 31, 2013		1,960		$	22.41		6.49	$	3,410
	Exercisable at December 31, 2013		2,267		$	13.2		3.42	$	23,608
Schedule of weighted -average assumptions used for estimating fair value of each stock option grant on the date of grant	'
		Year ended December 31,
		2013		2012		2011
	Expected dividend yield	0%		0%		0%
	Risk-free interest rate	1.21%		0.55%		0.86%
	Expected volatility	37.22%		40.13%		42.74%
	Expected life	4.51 years		4.47 years		4.57 years
Summary of status of restricted stock units	'
	A summary of the status of our restricted stock units and of changes in restricted stock units outstanding under the 2006 Stock Plan, as amended, as of December 31, 2013 is as follows (in thousands, except for weighted average grant date fair value per unit):
		Number of			Weighted Average		Aggregate
		Units			Grant Date Fair		Intrinsic
					Value per Share		Value
	Outstanding balance at December 31, 2012		446		$	25.44
	Granted		390			25.34
	Vesting of restricted stock units, net of shares withheld for taxes		(85	)		25.38
	Shares withheld for taxes		(39	)		25.38
	Forfeitures		(76	)		25.21
	Outstanding balance at December 31, 2013		636		$	25.5	$	14,429
Summary of status of restricted stock awards	'
	A summary of the status of our restricted stock awards as of December 31, 2013 and of changes in restricted stock awards outstanding under the 2006 Stock Plan for the year ended December 31, 2013 is as follows (in thousands, except for weighted average grant date fair value):
		Shares			Weighted Average		Aggregate
					Grant Date Fair		Intrinsic
					Value per Share		Value
	Outstanding balance at December 31, 2012		192		$	10.42
	Granted		—			—
	Vesting of restricted stock awards		(61	)	$	10.42
	Shares withheld for payment of taxes upon vesting of restricted stock awards		(35	)	$	10.42
	Forfeitures		(14	)	$	10.42
	Outstanding balance at December 31, 2013		82		$	10.42	$	1,851

Earnings_per_Share_Tables

Earnings per Share (Tables)	12 Months Ended
	Dec. 31, 2013
Earnings per Share	'
Schedule of basic and diluted earnings per share	'
		Years Ended December 31
	Basic and diluted	2013		2012		2011
		(in thousands, except per share data)
	Net income	$	39,997	$	50,516	$	47,785
	Net weighted average common shares outstanding, basic		87,598		86,204		84,588
	Plus: net effect of dilutive stock options and restricted common shares		746		2,161		2,856
	Weighted average common shares outstanding, diluted		88,344		88,365		87,444
	Income per common share—Basic	$	0.46	$	0.59	$	0.56
	Income per common share—Diluted	$	0.45	$	0.57	$	0.55

Commitments_and_Contingencies_

Commitments and Contingencies (Tables)	12 Months Ended
	Dec. 31, 2013
Commitments and Contingencies	'
Schedule of minimum annual lease payments to be made both under capital leases and operating leases, and sublease payments to be received for each of the next five years	'
	Minimum annual lease payments to be made both under capital leases and operating leases, and sublease payments to be received for each of the next five years ending December 31 and thereafter are as follows (in thousands):
	Year	Capital		Operating
		Lease		Lease
		Payments		Payments
	2014	$	1,679	$	7,860
	2015		1,140		5,054
	2016		36		3,776
	2017		—		2,588
	2018		—		2,172
	Thereafter		—		4,243
	Total	$	2,855	$	25,693

Quarterly_Financial_Data_unaud1

Quarterly Financial Data (unaudited) (Tables)	12 Months Ended
	Dec. 31, 2013
Quarterly Financial Data (unaudited)	'
Summary of unaudited quarterly operating results	'
	The table below summarizes our unaudited quarterly operating results for the last two fiscal years (in thousands, except per share amounts).
	Year ended December 31, 2013(1)	First		Second		Third		Fourth
		Quarter		Quarter		Quarter		Quarter
	Revenue	$	116,607	$	125,809	$	127,754	$	121,592
	Operating income	$	15,268	$	20,366	$	21,283	$	20,261
	Net income and comprehensive income	$	6,976	$	10,420	$	11,508	$	11,093
	Basic net income per share	$	0.08	$	0.12	$	0.13	$	0.13
	Diluted net income per share	$	0.08	$	0.12	$	0.13	$	0.13
	Year ended December 31, 2012(1)
	Revenue	$	107,314	$	120,069	$	113,217	$	133,096
	Operating income	$	16,041	$	25,596	$	20,713	$	37,162
	Net income and comprehensive income	$	7,043	$	12,980	$	10,507	$	19,986
	Basic net income per share	$	0.08	$	0.15	$	0.12	$	0.23
	Diluted net income per share	$	0.08	$	0.15	$	0.12	$	0.23
	-1
	The summation of the above quarterly results may not agree to the full year 2013 reported results as amounts have been rounded for presentation purposes.

Summary_of_Significant_Account3

Summary of Significant Accounting Policies (Details) (HDI)	12 Months Ended
	Dec. 31, 2013
	item
HDI	'
Organization and Business	'
Medicare Recovery Audit Contractor (RAC) for number of states	17
Medicare recovery audit contractor for number of U.S territories	3

Summary_of_Significant_Account4

Summary of Significant Accounting Policies (Details 2) (USD $)	12 Months Ended
	Dec. 31, 2013
	item
Summary of Significant Accounting Policies	'
Number of businesses under which the entity is managed and operated	1
Amount of maximum balance per bank account as insured by Federal Deposit Insurance Corporation	$250,000
Goodwill	'
Impairment of goodwill	$0
Equipment | Minimum	'
Property and equipment	'
Estimated useful lives (in years)	'2 years
Equipment | Maximum	'
Property and equipment	'
Estimated useful lives (in years)	'3 years
Leasehold improvements	'
Property and equipment	'
Maximum amortization period of property and equipment	'5 years
Leasehold improvements | Minimum	'
Property and equipment	'
Estimated useful lives (in years)	'3 years
Leasehold improvements | Maximum	'
Property and equipment	'
Estimated useful lives (in years)	'5 years
Furniture and fixtures | Minimum	'
Property and equipment	'
Estimated useful lives (in years)	'5 years
Furniture and fixtures | Maximum	'
Property and equipment	'
Estimated useful lives (in years)	'7 years
Buildings and building improvements | Maximum	'
Property and equipment	'
Estimated useful lives (in years)	'39 years 6 months
Software and Software Development Cost	'
Property and equipment	'
Estimated useful lives (in years)	'5 years

Summary_of_Significant_Account5

Summary of Significant Accounting Policies (Details 3) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
	item
Revenue Recognition and Estimated Liability for Appeals, Closures and Other Adjustments	'	'
Estimated allowance for appeals	$41,852	$27,344
Revenue Recognition	'	'
Number of characteristics for revenue recognition	4	'

Acquisitions_Details

Acquisitions (Details) (USD $)	3 Months Ended			12 Months Ended			12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2012	Jun. 30, 2013	Dec. 31, 2012	Dec. 31, 2013	Dec. 31, 2013	Dec. 31, 2011	Dec. 31, 2013	Dec. 31, 2013
				MRM	MRM	MRM	MRM	MRM	HDI Holdings, Inc.	HDI Holdings, Inc.	HDI Holdings, Inc.
						Adjustment	Client relationships	Restrictive covenants		Minimum	Maximum
Acquisitions	'	'	'	'	'	'	'	'	'	'	'
Aggregate consideration	'	'	'	$11,700,000	'	'	'	'	$370,400,000	'	'
Cash paid for business acquisition	'	'	'	10,800,000	'	'	'	'	366,600,000	'	'
Future contingent consideration	'	'	'	900,000	900,000	100,000	'	'	'	'	'
Goodwill	361,468,000	361,468,000	361,786,000	1,900,000	'	9,300,000	'	'	'	'	'
Intangible assets	'	'	'	'	9,200,000	9,200,000	8,900,000	300,000	'	'	'
Amortization period of intangible assets	'	'	'	'	'	'	'7 years	'2 years	'	'	'
Aggregate fair value of issued replacement option awards	'	'	'	'	'	'	'	'	14,300,000	'	'
Unvested HDI options being assumed and replaced attributable to purchase price	'	'	'	'	'	'	'	'	3,800,000	'	'
Vesting period	'3 years	'	'	'	'	'	'	'	'	'1 month	'48 months
Pro forma Consolidated Statements of Income	'	'	'	'	'	'	'	'	'	'	'
Total revenue	'	'	'	'	'	'	'	'	423,390,000	'	'
Net income	'	'	'	'	'	'	'	'	$39,207,000	'	'
Earnings per share:	'	'	'	'	'	'	'	'	'	'	'
Basic (in dollars per share)	'	'	'	'	'	'	'	'	$0.46	'	'
Diluted (in dollars per share)	'	'	'	'	'	'	'	'	$0.45	'	'

Property_and_Equipment_Details

Property and Equipment (Details) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Property and equipment	'	'	'
Property and equipment, gross	$215,997,000	$202,504,000	'
Less accumulated depreciation and amortization	92,991,000	73,177,000	'
Property and equipment, net	123,006,000	129,327,000	'
Depreciation and amortization expense related to property and equipment	31,400,000	26,900,000	14,700,000
Equipment	'	'	'
Property and equipment	'	'	'
Property and equipment, gross	86,494,000	71,776,000	'
Leasehold improvements	'	'	'
Property and equipment	'	'	'
Property and equipment, gross	3,712,000	6,496,000	'
Building	'	'	'
Property and equipment	'	'	'
Property and equipment, gross	8,624,000	8,624,000	'
Building improvements	'	'	'
Property and equipment	'	'	'
Property and equipment, gross	7,404,000	6,757,000	'
Land	'	'	'
Property and equipment	'	'	'
Property and equipment, gross	1,163,000	1,128,000	'
Furniture and fixtures	'	'	'
Property and equipment	'	'	'
Property and equipment, gross	11,045,000	13,454,000	'
Capitalized software	'	'	'
Property and equipment	'	'	'
Property and equipment, gross	97,555,000	94,269,000	'
Equipment under capital lease	'	'	'
Property and equipment	'	'	'
Property and equipment, gross	2,800,000	3,700,000	'
Less accumulated depreciation and amortization	3,200,000	1,500,000	'
Depreciation and amortization expense related to property and equipment	$1,700,000	$1,400,000	$100,000

Intangible_Assets_Details

Intangible Assets (Details) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Intangible assets	'	'	'
Intangible assets, gross	$140,587,000	$169,438,000	'
Less accumulated amortization	-45,275,000	-50,319,000	'
Intangible assets, net	95,312,000	119,119,000	'
Amortization of intangibles	'	'	'
2014	20,733,000	'	'
2015	20,270,000	'	'
2016	19,934,000	'	'
2017	16,613,000	'	'
Thereafter	17,762,000	'	'
Amortization expense	23,800,000	24,400,000	7,300,000
Client relationships	'	'	'
Intangible assets	'	'	'
Intangible assets, gross	102,755,000	130,105,000	'
Client relationships | Minimum	'	'	'
Intangible assets	'	'	'
Useful Life	'5 years	'	'
Client relationships | Maximum	'	'	'
Intangible assets	'	'	'
Useful Life	'10 years	'	'
Restrictive covenant	'	'	'
Intangible assets	'	'	'
Intangible assets, gross	18,300,000	19,600,000	'
Restrictive covenant | Minimum	'	'	'
Intangible assets	'	'	'
Useful Life	'3 years	'	'
Restrictive covenant | Maximum	'	'	'
Intangible assets	'	'	'
Useful Life	'7 years	'	'
Trade name	'	'	'
Intangible assets	'	'	'
Intangible assets, gross	$19,532,000	$19,733,000	'
Trade name | Minimum	'	'	'
Intangible assets	'	'	'
Useful Life	'3 years	'	'
Trade name | Maximum	'	'	'
Intangible assets	'	'	'
Useful Life	'5 years	'	'

Intangible_Assets_Details_2

Intangible Assets (Details 2) (USD $)	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2012	Dec. 31, 2012
In Thousands, unless otherwise specified				Health Data Insights, Inc	MRM
Changes in the carrying amount of goodwill	'	'	'	'	'
Balance at the beginning of period	$361,468	$361,468	$361,786	'	'
Acquisition related goodwill	'	'	'	-2,256	1,938
Balance at the end of period	$361,468	$361,468	$361,786	'	$1,900

Accounts_Payable_Accrued_Expen2

Accounts Payable, Accrued Expenses and Other Liabilities (Details) (USD $)	Dec. 31, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Accounts Payable, Accrued Expenses and Other Liabilities	'	'
Accounts payable, trade	$7,217	$10,874
Accrued compensation	15,419	11,104
Accrued direct project costs	1,629	1,996
Accrued refunds	2,667	1,253
Accrued other liabilities	10,191	13,839
Total Accounts Payable, Accrued Expenses and Other Liabilities	$37,123	$39,066

Income_Taxes_Details

Income Taxes (Details) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Current tax expense:	'	'	'
Federal	$25,211	$33,456	$25,229
State	4,736	5,696	6,131
Total	29,947	39,152	31,360
Deferred tax expense/(benefit):	'	'	'
Federal	-3,485	-6,085	1,971
State	-869	-238	-153
Total	-4,354	-6,323	1,818
Total income tax expense	25,593	32,829	33,178
Reconciliation of the income tax expense calculated using the applicable federal statutory rates to the actual income tax expense	'	'	'
Computed at federal statutory rate	22,946	29,171	28,337
State and local tax expense, net of federal benefit	2,448	3,548	3,907
Other, net	199	110	934
Total income tax expense	$25,593	$32,829	$33,178
Income tax rate (as a percent)	'	'	'
Computed at federal statutory rate (as a percent)	35.00%	35.00%	35.00%
State and local tax expense, net of federal benefit (as a percent)	3.70%	4.30%	4.80%
Other, net (as a percent)	0.30%	0.10%	1.20%
Total income tax expense (as a percent)	39.00%	39.40%	41.00%
Effective income tax rate (as a percent)	39.00%	39.40%	41.00%

Income_Taxes_Details_2

Income Taxes (Details 2) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Deferred tax assets:	'	'	'
Allowance for doubtful accounts and deferred revenue	$669,000	$422,000	'
Restructuring cost	369,000	142,000	'
Goodwill and other intangibles	7,679,000	7,261,000	'
Accounts receivables	1,905,000	5,043,000	'
Net operating loss carry forwards	69,000	52,000	'
Deferred stock compensation	6,112,000	5,311,000	'
Deferred rent	215,000	226,000	'
Other	843,000	1,410,000	'
Total deferred tax assets before valuation allowance	17,861,000	19,867,000	'
Less valuation allowance	'	-81,000	'
Total deferred tax assets after valuation allowance	17,861,000	19,786,000	'
Deferred tax liabilities:	'	'	'
Goodwill and other intangibles	64,317,000	72,106,000	'
Capitalized software cost	2,995,000	2,946,000	'
Prepaid expenses	1,111,000	'	'
Property and equipment	8,287,000	7,937,000	'
Total deferred tax liabilities	76,710,000	82,989,000	'
Total net deferred liabilities	58,849,000	63,203,000	'
Net deferred tax (liabilities)/assets	'	'	'
Net current deferred tax liabilities	6,326,000	2,398,000	'
Net non-current deferred tax liabilities	52,523,000	60,805,000	'
Total net deferred liabilities	58,849,000	63,203,000	'
Tax deductions arising from 2013 disqualifying dispositions of incentive stock option exercises utilized	14,500,000	'	'
Excess tax benefit from exercise of stock options	5,233,000	12,433,000	12,051,000
Net unrecognized tax benefits	1,400,000	1,100,000	'
Unrecognized tax benefits net of the federal benefit for state issues	900,000	700,000	'
Accrued liabilities for interest expense and penalties related to unrecognized tax benefits	$100,000	$100,000	'

Credit_Agreement_Details

Credit Agreement (Details) (USD $)

12 Months Ended

1 Months Ended

12 Months Ended

1 Months Ended

12 Months Ended

1 Months Ended

Dec. 31, 2013

Dec. 31, 2012

Dec. 31, 2011

31-May-13

Dec. 31, 2013

Dec. 31, 2013

31-May-13

31-May-13

31-May-13

Dec. 31, 2013

Dec. 31, 2012

Dec. 31, 2011

31-May-13

31-May-13

31-May-13

31-May-13

31-May-13

31-May-13

31-May-13

31-May-13

31-May-13

31-May-13

31-May-13

31-May-13

Dec. 31, 2013

Dec. 31, 2012

2013 Credit Agreement

2013 Credit Agreement

2011 Credit Agreement

Minimum

Maximum

Health Data Insights, Inc

Revolving credit facility

Revolving credit facility

Revolving credit facility

Revolving credit facility

Revolving credit facility

Revolving credit facility

Revolving credit facility

Revolving credit facility

Revolving credit facility

Revolving credit facility

Revolving credit facility

Revolving credit facility

Revolving credit facility

Revolving credit facility

Revolving credit facility

Term loan

Term loan

2013 Credit Agreement

2013 Credit Agreement

2011 Credit Agreement

2011 Credit Agreement

Minimum

Maximum

LIBOR Rate

LIBOR Rate

LIBOR Rate

Base rate

Prime rate

Federal funds rate

One-month LIBOR Rate

One-month LIBOR Rate

One-month LIBOR Rate

2013 Credit Agreement

2013 Credit Agreement

2013 Credit Agreement

Minimum

Maximum

2013 Credit Agreement

2013 Credit Agreement

2013 Credit Agreement

2013 Credit Agreement

Minimum

Maximum

2011 Credit Agreement

2011 Credit Agreement

2013 Credit Agreement

2013 Credit Agreement

Credit agreement

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Period of revolving credit facility

'

'

'

'5 years

'

'

'

'

'5 years

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Principal borrowing capacity

'

'

'

$500,000,000

'

'

'

'

'

'

'

'

$500,000,000

'

'

'

'

'

'

'

'

'

'

'

'

'

Principal payments

'

'

'

'

'

'

'

'

'

95,000,000

232,800,000

'

'

'

'

'

'

'

'

'

'

'

'

'

8,800,000

17,500,000

Amount of incremental credit facilities under specified circumstances

'

'

'

75,000,000

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Additional amount of incremental credit facilities under specified circumstances

'

'

'

'

'

'

25,000,000

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Secured leverage ratio

'

'

'

'

'

'

'

2.5

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Consolidated leverage ratio before reduction

'

'

'

'

'

'

'

3.5

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Maximum consolidated leverage ratio

'

'

'

'

'

'

'

3.25

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Reduction period of maximum consolidated leverage ratio

'

'

'

'5 years

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Minimum interest coverage ratio

'

'

'

'

'

'

3

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Interest rate of debts

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'LIBOR

'

'

'Base Rate

'Prime Rate

'Federal funds rate

'one-month LIBOR

'

'

'

'

Interest rate margin (as a percent)

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

1.50%

2.25%

'

'

0.50%

1.00%

0.50%

1.25%

'

'

Unused commitment fee on the revolving credit facility of the credit agreement (as a percent)

'

'

'

'

'

'

'

'

'

'

'

'

'

0.38%

0.50%

'

'

'

'

'

'

'

'

'

'

'

Outstanding principal repaid

8,750,000

17,500,000

39,480,000

'

'

323,800,000

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Unpaid interest paid

9,520,000

13,236,000

109,000

'

'

1,100,000

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Loan origination fees

'

'

'

'

2,900,000

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Interest expense

'

'

'

'

'

'

'

'

'

8,156,000

12,200,000

520,000

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Commitment fees

'

'

'

'

'

'

'

'

'

887,000

500,000

52,000

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Unamortized balance of deferred origination fees and debt issue costs

9,000,000

9,200,000

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Amortization of financing cost

3,100,000

2,600,000

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Irrevocable letter of credit or Letter of Credit outstanding

$4,600,000

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Equity_Details

Equity (Details) (USD $)	1 Months Ended				3 Months Ended	12 Months Ended
	Oct. 31, 2012	31-May-12	Feb. 28, 2006	31-May-97	Dec. 31, 2013	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 1997
Treasury stock	'	'	'	'	'	'	'	'
Maximum aggregate purchase price of shares authorized for repurchase (in dollars)	$50,000,000	'	$20,000,000	$10,000,000	'	'	'	'
Number of shares repurchased	'	436,309	'	'	1,101,458	'	'	4,988,538
Average price of shares repurchased (in dollars per share)	'	$24.29	'	'	$22.65	'	'	$1.88
Stock repurchase period	'2 years	'	'	'	'	'	'	'
Amount of shares repurchased	'	'	'	'	$25,000,000	$25,000,000	$10,617,000	'
Preferred stock	'	'	'	'	'	'	'	'
Number of shares authorized to be issued (in shares)	'	'	'	'	5,000,000	5,000,000	5,000,000	'
Preferred stock, shares issued	'	'	'	'	0	0	0	'

Employee_Benefit_Plan_Details

Employee Benefit Plan (Details) (USD $)	12 Months Ended
In Millions, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Employee Benefit Plan	'	'	'
Minimum service period for eligibility to enroll in the 401(k) Plan	'90 days	'	'
Maximum participants' contribution to the 401 (k) Plan, as a percentage of annual base pre-tax compensation	60.00%	'	'
Matching contribution made by company for the first 3% of pay contributed (as a percent)	100.00%	'	'
First percentage of pay contributed by each eligible employee	3.00%	'	'
Matching contribution made by company for the next 2% of pay contributed (as a percent)	50.00%	'	'
Next percentage of pay contributed	2.00%	'	'
Contribution to the 401 (k) Plan	$4.60	$3.70	$2.80

StockBased_Compensation_Detail

Stock-Based Compensation (Details) (USD $)

3 Months Ended

12 Months Ended

1 Months Ended

12 Months Ended

12 Months Ended

1 Months Ended

12 Months Ended

12 Months Ended

1 Months Ended

12 Months Ended

1 Months Ended

Dec. 31, 2013

Dec. 31, 2013

Dec. 31, 2012

Dec. 31, 2011

Dec. 31, 2013

Dec. 31, 2013

Dec. 31, 2012

Dec. 31, 2011

Dec. 31, 2013

Nov. 30, 2013

Dec. 31, 2013

Dec. 31, 2012

Dec. 31, 2011

Dec. 31, 2013

Dec. 31, 2012

Dec. 31, 2011

Dec. 31, 2013

Dec. 31, 2013

Dec. 31, 2013

Dec. 31, 2013

Dec. 31, 2013

Dec. 31, 2013

Nov. 30, 2013

Dec. 31, 2013

Dec. 31, 2013

Dec. 31, 2013

Dec. 31, 2013

Dec. 31, 2013

Dec. 31, 2013

Dec. 31, 2013

Dec. 31, 2013

Dec. 31, 2013

Nov. 30, 2013

Nov. 30, 2013

Nov. 30, 2013

Nov. 30, 2013

Dec. 31, 2013

Dec. 31, 2013

Dec. 31, 2013

Jul. 31, 2007

item

Health Data Insights, Inc

Stock options

Stock options

Stock options

Stock options

Restricted Stock Units

Restricted Stock Units

Restricted Stock Units

Restricted Stock Units

Restricted Stock Awards

Restricted Stock Awards

Restricted Stock Awards

NQs and RSUs

Amended 2011 Stock Option and Stock Issuance Plan

Amended 2011 Stock Option and Stock Issuance Plan

Amended 2011 Stock Option and Stock Issuance Plan

Amended 2011 Stock Option and Stock Issuance Plan

Fourth Amended and Restated 2006 Stock Plan

Fourth Amended and Restated 2006 Stock Plan

Fourth Amended and Restated 2006 Stock Plan

Fourth Amended and Restated 2006 Stock Plan

Fourth Amended and Restated 2006 Stock Plan

Fourth Amended and Restated 2006 Stock Plan

Fourth Amended and Restated 2006 Stock Plan

Fourth Amended and Restated 2006 Stock Plan

Fourth Amended and Restated 2006 Stock Plan

Fourth Amended and Restated 2006 Stock Plan

Fourth Amended and Restated 2006 Stock Plan

Fourth Amended and Restated 2006 Stock Plan

Fourth Amended and Restated 2006 Stock Plan

Fourth Amended and Restated 2006 Stock Plan

Fourth Amended and Restated 2006 Stock Plan

1999 Long-Term Incentive Stock Plan

1999 Long-Term Incentive Stock Plan

Options Issued Outside the Plans

Options Issued Outside the Plans

Minimum

Maximum

item

Stock options

Stock options

Stock options

Stock options

Stock options

Stock options

Stock options

Restricted Stock Units

Restricted Stock Units

Restricted Stock Units

Restricted Stock Awards

Restricted Stock Awards

Restricted Stock Awards

Stock options and restricted units

Stock options and restricted units

Stock options and restricted units

Stock options and restricted units

Stock options

Stock options

Stock options

Minimum

Maximum

Minimum

Maximum

Minimum

Maximum

Minimum

Maximum

Director

Employees

Executive officers

Executive officers

Walter D. Hosp, Chief Financial Officer

Minimum

Stock-based compensation

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Vesting period

'3 years

'

'

'

'1 month

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'1 month

'4 years

'

'

'

'1 year

'4 years

'

'1 year

'5 years

'

'1 year

'5 years

'1 year

'3 years

'3 years

'

'

'

'

'

Stock-based compensation expense recognized related to stock compensation plans

'

$12,000,000

$9,100,000

$8,400,000

'

$6,700,000

$7,300,000

$5,600,000

'

'

$4,500,000

$1,000,000

$2,000,000

$700,000

$800,000

$800,000

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Benefit recognized as a result of cancellation of awards

'

'

'

'

'

100,000

'

'

'

'

'

'

'

'

'

'

100,000

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Number of employees affected by modification

8

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Number of options outstanding (in shares)

'

'

'

'

'

4,273,000

4,757,000

'

'

'

'

'

'

'

'

'

'

317,039

317,039

'

'

'

'

3,553,016

'

'

'

'

'

'

'

'

'

'

'

'

'

223,058

180,000

'

Number of separate equity programs

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

2

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Number of shares authorized

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

836,122

'

'

'

18,000,000

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Number of shares of common stock available for grant

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

224,856

'

'

'

7,128,553

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Term of stock options, Maximum

'

'

'

'

'

'

'

'

'10 years

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Number of shares granted

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

1,127,092

1,287,141

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

180,000

Weighted average exercise price (in dollars per share)

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

$21.36

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Awards other than stock options and SARs, number of shares counted for every one share awarded under plan limit

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

1.85

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Maximum term of stock option (in years)

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'P7Y

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Granted (in shares)

'

'

'

'

'

'

'

'

'

148,578

390,000

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

390,394

'

'

'

'

'

'

'

'

'

'

'

'

'

Minimum percentage of closing share price over exercise price for 30 consecutive days for vesting of awards

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

25.00%

'

'

'

'

Number of consecutive days over which closing price of common stock must be 25% higher than exercise price

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'30 days

'

'

'

'

'

Additional awards granted (in shares)

'

'

'

'

'

1,287,000

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

0

'

'

'

Outstanding equity instruments other than option

'

'

'

'

'

'

'

'

'

'

636,000

446,000

'

82,000

192,000

'

'

'

'

'

'

'

'

'

'

'

635,651

'

'

81,549

'

'

'

'

'

'

'

'

'

'

Weighted-average grant-date fair value per share of the stock options granted

'

'

'

'

'

$7.07

$9.35

$8.47

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Additional disclosures

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Common stock issued upon exercise of stock options (in shares)

'

'

'

'

'

1,306,000

1,700,000

2,100,000

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Proceeds from exercise of stock options

'

9,260,000

11,973,000

12,744,000

'

9,300,000

12,000,000

12,700,000

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Tax benefit from exercise of stock options

'

$5,233,000

$12,433,000

$12,051,000

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

StockBased_Compensation_Detail1

Stock-Based Compensation (Detail 2) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Stock options	'	'	'
Stock option activity	'	'	'
Options outstanding at the beginning of the period (in shares)	4,757,000	'	'
Granted (in shares)	1,287,000	'	'
Exercised (in shares)	-1,306,000	-1,700,000	-2,100,000
Forfeitures (in shares)	-424,000	'	'
Expired (in shares)	-41,000	'	'
Options outstanding at the end of the period (in shares)	4,273,000	4,757,000	'
Options expected to vest at the end of the period (in shares)	1,960,000	'	'
Options exercisable at the end of the period (in shares)	2,267,000	'	'
Stock options, Weighted Average Exercise Price	'	'	'
Options outstanding at the beginning of the period (in dollars per share)	$14.11	'	'
Granted (in dollars per share)	$21.78	'	'
Exercised (in dollars per share)	$7.09	'	'
Forfeitures (in dollars per share)	$23.98	'	'
Expired (in dollars per shares)	$14.13	'	'
Options outstanding at the end of the period (in dollars per share)	$17.53	$14.11	'
Options expected to vest at the end of the period (in dollars per share)	$22.41	'	'
Options exercisable at the end of the period (in dollars per share)	$13.20	'	'
Stock options, Weighted Average Remaining Contractual Terms	'	'	'
Options outstanding at the end of the period	'4 years 10 months 10 days	'	'
Options expected to vest at the end of the period	'6 years 5 months 26 days	'	'
Options exercisable at the end of the period	'3 years 5 months 1 day	'	'
Stock options, Aggregate Intrinsic Value	'	'	'
Options outstanding at the end of the period	$27,099,000	'	'
Options expected to vest at the end of the period	3,410,000	'	'
Options exercisable at the end of the period	23,608,000	'	'
Assumptions used to determine fair value of options granted	'	'	'
Expected dividend yield (as a percent)	0.00%	0.00%	0.00%
Risk-free interest rate (as a percent)	1.21%	0.55%	0.86%
Expected volatility (as a percent)	37.22%	40.13%	42.74%
Expected life	'4 years 6 months 4 days	'4 years 5 months 19 days	'4 years 6 months 25 days
Performance-based stock options	'	'	'
Assumptions used to determine fair value of options granted	'	'	'
Benefit recognized on reversal of compensation expense	$100,000	'	'

StockBased_Compensation_Detail2

Stock-Based Compensation (Details 3) (USD $)	1 Months Ended	12 Months Ended
	Nov. 30, 2013	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Stock-based compensation expense	'	'	'	'
Recognized stock-based compensation expense	'	$12,000,000	$9,100,000	$8,400,000
Stock options	'	'	'	'
Stock-based compensation expense	'	'	'	'
Recognized stock-based compensation expense	'	6,700,000	7,300,000	5,600,000
Benefit recognized as a result of cancellation of awards	'	100,000	'	'
Unrecognized stock-based compensation	'	27,600,000	'	'
Weighted-average period over which compensation will be recognized	'	'1 year 8 months 12 days	'	'
Total intrinsic value of options exercised	'	23,900,000	39,600,000	42,600,000
Restricted Stock Units	'	'	'	'
Stock-based compensation expense	'	'	'	'
Recognized stock-based compensation expense	'	4,500,000	1,000,000	2,000,000
Unrecognized stock-based compensation	'	11,600,000	4,100,000	6,500,000
Weighted-average period over which compensation will be recognized	'	'1 year 7 months 6 days	'	'
Restricted stock units and restricted stock awards	'	'	'	'
Non-vested stock at the beginning of the period (in shares)	'	446,000	'	'
Granted (in shares)	148,578	390,000	'	'
Vesting of restricted stock units, net of shares withheld for taxes (in shares)	'	-85,000	'	'
Shares withheld for payment of taxes upon vesting of restricted stock awards	'	-39,000	'	'
Forfeitures (in shares)	'	-76,000	'	'
Non-vested stock at the end of the period (in shares)	'	636,000	446,000	'
Current non-vested stock at the end of the period (in shares)	'	571,204	379,734	474,739
Restricted stock units and restricted stock awards, Weighted Average Grant Date Fair Value	'	'	'	'
Non-vested stock at the beginning of the period (in dollars per share)	'	$25.44	'	'
Granted (in dollars per share)	'	$25.34	'	'
Vested (in dollars per share)	'	$25.38	'	'
Shares withheld for payment of taxes upon vesting of restricted stock awards (in dollars per share)	'	$25.38	'	'
Forfeitures (in dollars per share)	'	$25.21	'	'
Non-vested stock at the end of the period (in dollars per share)	'	$25.50	$25.44	'
Aggregate Intrinsic Value	'	'	'	'
Non-vested stock at the end of the period	'	14,429,000	'	'
Restricted Stock Awards	'	'	'	'
Stock-based compensation expense	'	'	'	'
Recognized stock-based compensation expense	'	700,000	800,000	800,000
Unrecognized stock-based compensation	'	'	89,889	'
Weighted-average period over which compensation will be recognized	'	'1 month 6 days	'	'
Restricted stock units and restricted stock awards	'	'	'	'
Non-vested stock at the beginning of the period (in shares)	'	192,000	'	'
Vesting of restricted stock units, net of shares withheld for taxes (in shares)	'	-61,000	'	'
Shares withheld for payment of taxes upon vesting of restricted stock awards	'	-35,000	'	'
Forfeitures (in shares)	'	-14,000	'	'
Non-vested stock at the end of the period (in shares)	'	82,000	192,000	'
Restricted stock units and restricted stock awards, Weighted Average Grant Date Fair Value	'	'	'	'
Non-vested stock at the beginning of the period (in dollars per share)	'	$10.42	'	'
Vested (in dollars per share)	'	$10.42	'	'
Shares withheld for payment of taxes upon vesting of restricted stock awards (in dollars per share)	'	$10.42	'	'
Forfeitures (in dollars per share)	'	$10.42	'	'
Non-vested stock at the end of the period (in dollars per share)	'	$10.42	$10.42	'
Aggregate Intrinsic Value	'	'	'	'
Non-vested stock at the end of the period	'	$1,851,000	'	'

Earnings_per_Share_Details

Earnings per Share (Details) (USD $)	3 Months Ended								12 Months Ended
In Thousands, except Share data, unless otherwise specified	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Computation of basic and diluted earnings per share	'	'	'	'	'	'	'	'	'	'	'
Net income	$11,093	$11,508	$10,420	$6,976	$19,986	$10,507	$12,980	$7,043	$39,997	$50,516	$47,785
Net weighted average common shares outstanding, basic (in shares)	'	'	'	'	'	'	'	'	87,598,000	86,204,000	84,588,000
Plus: net effect of dilutive stock options and restricted common shares	'	'	'	'	'	'	'	'	746,000	2,161,000	2,856,000
Weighted average common shares outstanding, diluted (in shares)	'	'	'	'	'	'	'	'	88,344,000	88,365,000	87,444,000
Income per common share - Basic (in dollars per share)	$0.13	$0.13	$0.12	$0.08	$0.23	$0.12	$0.15	$0.08	$0.46	$0.59	$0.56
Income per common share - Diluted (in dollars per share)	$0.13	$0.13	$0.12	$0.08	$0.23	$0.12	$0.15	$0.08	$0.45	$0.57	$0.55
Stock options	'	'	'	'	'	'	'	'	'	'	'
Anti-dilutive securities	'	'	'	'	'	'	'	'	'	'	'
Anti-dilutive securities excluded from diluted earnings per share calculations (in shares)	'	'	'	'	'	'	'	'	1,111,795	566,876	441,863
Restricted Stock Units	'	'	'	'	'	'	'	'	'	'	'
Anti-dilutive securities	'	'	'	'	'	'	'	'	'	'	'
Anti-dilutive securities excluded from diluted earnings per share calculations (in shares)	'	'	'	'	'	'	'	'	88,327	50,300	'

Transactions_with_Officers_Rel1

Transactions with Officers, Related Parties and Others (Details) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Public Consulting Group, Inc. | Subcontractor agreements	'	'	'
Transactions with Officers, Related Parties and Others	'	'	'
Revenue recognized from transaction with related party	$400,000	$600,000	$1,500,000
Outstanding accounts receivable from related party	0	300,000	'
Public Consulting Group, Inc. | Intercompany Services Agreement (ISA)	'	'	'
Transactions with Officers, Related Parties and Others	'	'	'
Value of services rendered by related party	42,000	58,000	175,000
Value of services rendered to related party	70,000	41,000	67,000
Mr. Lucia, President and Chief Executive Officer | Employment agreements	'	'	'
Transactions with Officers, Related Parties and Others	'	'	'
Base salary	$650,000	'	'
Target bonus as a percentage of base salary	100.00%	'	'
Multiplier of Monthly Base Salary	24	'	'
Period over which monthly base salary is paid ratably in equal installments	'24 months	'	'
Bonus	2	'	'
Health coverage period	'24 months	'	'
Other executive officer | Employment agreements	'	'	'
Transactions with Officers, Related Parties and Others	'	'	'
Multiplier of Monthly Base Salary	12	'	'
Multiplier of the difference between the monthly COBRA coverage premium and monthly employee contribution	12	'	'

Commitments_and_Contingencies_1

Commitments and Contingencies (Details) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Commitments and Contingencies	'	'	'
Lease expense exclusive of sublease income	$7,600,000	$7,600,000	$6,700,000
Lease and sublease income	300,000	600,000	1,400,000
Capital Leases	'	'	'
2014	1,679,000	'	'
2015	1,140,000	'	'
2016	36,000	'	'
Total	2,855,000	'	'
Minimum annual lease Operating Lease payments to be made for each of the next five years	'	'	'
2014	7,860,000	'	'
2015	5,054,000	'	'
2016	3,776,000	'	'
2017	2,588,000	'	'
2018	2,172,000	'	'
Thereafter	4,243,000	'	'
Total	25,693,000	'	'
Accrued litigation or other legal proceedings expenses	$2,200,000	'	'

Customer_Concentration_Details

Customer Concentration (Details)

1 Months Ended

12 Months Ended

Jan. 31, 2014

Dec. 31, 2013

Dec. 31, 2013

Dec. 31, 2012

Dec. 31, 2011

Dec. 31, 2013

Dec. 31, 2012

Dec. 31, 2011

Dec. 31, 2013

Dec. 31, 2012

Dec. 31, 2011

Dec. 31, 2013

Dec. 31, 2012

Dec. 31, 2011

Dec. 31, 2013

Dec. 31, 2012

Dec. 31, 2011

CMS

CMS

Concentration risk benchmark, revenue

Concentration risk benchmark, revenue

Concentration risk benchmark, revenue

Concentration risk benchmark, revenue

Concentration risk benchmark, revenue

Concentration risk benchmark, revenue

Concentration risk benchmark, revenue

Concentration risk benchmark, revenue

Concentration risk benchmark, revenue

Concentration risk benchmark, revenue

Concentration risk benchmark, revenue

Concentration risk benchmark, revenue

Concentration risk benchmark, revenue

Concentration risk benchmark, revenue

Concentration risk benchmark, revenue

item

item

Concentration risk by largest clients

Concentration risk by largest clients

Concentration risk by largest clients

Concentration risk by largest clients

Concentration risk by largest clients

Concentration risk by largest clients

Concentration risk by largest clients

Concentration risk by largest clients

Concentration risk by largest clients

Concentration risk by largest clients

Concentration risk by largest clients

Concentration risk by largest clients

Concentration risk by largest clients

Concentration risk by largest clients

Concentration risk by largest clients

CMS

CMS

CMS

New Jersey Department of Human Services

New Jersey Department of Human Services

New Jersey Department of Human Services

New York Department of Health

New York Department of Health

New York Department of Health

Ten largest clients

Ten largest clients

Ten largest clients

Three largest clients

Three largest clients

Three largest clients

item

item

Concentration of Revenue

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Percentage of revenue

'

'

22.30%

18.20%

2.40%

5.60%

6.40%

7.00%

4.60%

5.20%

6.90%

47.20%

46.90%

37.90%

32.60%

29.80%

18.00%

Number of new RFQs issued

5

5

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Number of largest clients

'

'

'

'

'

'

'

'

'

'

'

10

'

'

3

'

'

Quarterly_Financial_Data_unaud2

Quarterly Financial Data (unaudited) (Details) (USD $)	3 Months Ended								12 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Quarterly Financial Data (unaudited)	'	'	'	'	'	'	'	'	'	'	'
Revenue	$121,592	$127,754	$125,809	$116,607	$133,096	$113,217	$120,069	$107,314	$491,762	$473,696	$363,826
Operating income	20,261	21,283	20,366	15,268	37,162	20,713	25,596	16,041	77,178	99,512	80,871
Net income and comprehensive income	$11,093	$11,508	$10,420	$6,976	$19,986	$10,507	$12,980	$7,043	$39,997	$50,516	$47,785
Income per common share - Basic (in dollars per share)	$0.13	$0.13	$0.12	$0.08	$0.23	$0.12	$0.15	$0.08	$0.46	$0.59	$0.56
Income per common share - Diluted (in dollars per share)	$0.13	$0.13	$0.12	$0.08	$0.23	$0.12	$0.15	$0.08	$0.45	$0.57	$0.55

SCHEDULE_IIVALUATION_AND_QUALI1

SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS (Details) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Reconciliation of valuation and qualifying accounts	'	'
Estimated allowance for appeals	$41,852	$27,344
Allowance for doubtful accounts	'	'
Reconciliation of valuation and qualifying accounts	'	'
Balance at the beginning of the period	830	1,158
Provision	718	19
Recoveries	-42	'
Charge-offs	-590	-347
Balance at the end of the period	916	830
Estimated liability for appeals	'	'
Reconciliation of valuation and qualifying accounts	'	'
Balance at the beginning of the period	34,426	13,381
Provision	41,076	28,250
Appeals found in Providers favor	-19,711	-7,205
Balance at the end of the period	55,791	34,426
Estimated allowance for appeals	$13,939	$7,082