HMS (HMSY) 10-Q11 Aug 142014 Q2 Quarterly reportFinancial data

Company Profile

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
Document and Entity Information	Jun. 30, 2014	Aug. 04, 2014
Document and Entity Information	'	'
Entity Registrant Name	'HMS HOLDINGS CORP	'
Entity Central Index Key	'0001196501	'
Document Type	'10-Q	'
Document Period End Date	30-Jun-14	'
Amendment Flag	'false	'
Current Fiscal Year End Date	'--12-31	'
Entity Current Reporting Status	'Yes	'
Entity Filer Category	'Large Accelerated Filer	'
Entity Common Stock, Shares Outstanding	'	87,727,214
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q2	'

CONSOLIDATED_BALANCE_SHEETS

CONSOLIDATED BALANCE SHEETS (USD $)	Jun. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Current assets:	'	'
Cash and cash equivalents	$95,879	$93,366
Accounts receivable, net of allowance for doubtful accounts of $1,232 and $916, respectively and estimated allowance for appeals of $7,161 and $13,939, at June 30, 2014 and December 31, 2013, respectively	164,543	171,726
Prepaid expenses	10,910	12,942
Prepaid income taxes	335	6,792
Other current assets	470	489
Total current assets	272,137	285,315
Property and equipment, net	118,300	123,006
Goodwill	361,468	361,468
Intangible assets, net	84,931	95,312
Deferred financing costs	7,999	9,041
Other assets	4,505	4,460
Total assets	849,340	878,602
Current liabilities:	'	'
Accounts payable, accrued expenses and other liabilities	34,065	37,123
Acquisition related contingent consideration	528	945
Deferred tax liabilities	5,910	6,326
Estimated liability for appeals	35,720	41,852
Total current liabilities	76,223	86,246
Long-term liabilities:	'	'
Deferred rent	2,208	724
Revolving credit facility	197,796	232,796
Other liabilities	3,268	3,874
Deferred tax liabilities	49,338	52,523
Total long-term liabilities	252,610	289,917
Total liabilities	328,833	376,163
Commitments and Contingencies	'	'
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; 94,249,982 shares issued and 87,723,677 shares outstanding at June 30, 2014; 93,826,453 shares issued and 87,300,148 shares outstanding at December 31, 2013	940	936
Capital in excess of par value	305,190	296,517
Retained earnings	259,391	250,000
Treasury stock, at cost: 6,526,305 shares at June 30, 2014 and at December 31, 2013	-45,014	-45,014
Total shareholders' equity	520,507	502,439
Total liabilities and shareholders' equity	$849,340	$878,602

CONSOLIDATED_BALANCE_SHEETS_Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Jun. 30, 2014	Dec. 31, 2013
In Thousands, except Share data, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
CONSOLIDATED BALANCE SHEETS	'	'
Accounts receivable, allowance for doubtful accounts (in dollars)	$1,232	$916
Accounts receivable, allowance for appeals (in dollars)	$7,161	$13,939
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	94,249,982	93,826,453
Common stock, shares outstanding	87,723,677	87,300,148
Treasury stock, shares	6,526,305	6,526,305

CONSOLIDATED_STATEMENTS_OF_COM

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $)	3 Months Ended		6 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME	'	'	'	'
Revenue	$112,561	$125,809	$217,268	$242,416
Cost of services:	'	'	'	'
Compensation	44,245	46,032	91,166	90,016
Data processing	10,174	9,188	19,398	18,286
Occupancy	4,688	4,781	8,648	9,403
Direct project costs	9,913	12,269	17,586	25,539
Other operating costs	5,915	7,653	11,398	14,290
Amortization of acquisition related software	7,160	8,759	14,320	16,688
Total cost of services	82,095	88,682	162,516	174,222
Selling, general and administrative expenses	17,908	16,761	34,397	32,560
Total operating expenses	100,003	105,443	196,913	206,782
Operating income	12,558	20,366	20,355	35,634
Interest expense	-1,939	-4,047	-4,018	-7,779
Other income, net	'	776	'	799
Interest income	12	17	36	18
Income before income taxes	10,631	17,112	16,373	28,672
Income taxes	4,593	6,692	6,982	11,276
Net income and comprehensive income	$6,038	$10,420	$9,391	$17,396
Basic income per common share:	'	'	'	'
Net income per share-basic (in dollars per share)	$0.07	$0.12	$0.11	$0.20
Diluted income per share:	'	'	'	'
Net income per share-diluted (in dollars per share)	$0.07	$0.12	$0.11	$0.20
Weighted average shares:	'	'	'	'
Basic (in shares)	87,691	87,674	87,564	87,408
Diluted (in shares)	88,092	89,023	88,033	88,919

CONSOLIDATED_STATEMENTS_OF_SHA

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (USD $)	Common Stock [Member]	Additional Paid In Capital [Member]	Retained Earnings [Member]	Treasury Stock [Member]	Total
In Thousands, except Share data, unless otherwise specified	Common Stock [Member]	Additional Paid In Capital [Member]	Retained Earnings [Member]	Treasury Stock [Member]	Total
Balance at Dec. 31, 2013	$936	$296,517	$250,000	($45,014)	$502,439
Balance (in shares) at Dec. 31, 2013	93,826,453	'	'	6,526,305	'
Increase (Decrease) in Shareholders' Equity	'	'	'	'	'
Net income and comprehensive income	'	'	9,391	'	9,391
Stock-based compensation cost	'	6,230	'	'	6,230
Exercise of stock options	3	3,073	'	'	3,076
Exercise of stock options (in shares)	316,041	'	'	'	'
Vesting of restricted stock awards and units, net of shares withheld for employee tax	1	-1,089	'	'	-1,088
Vesting of restricted stock awards and units, net of shares withheld for employee tax (in shares)	107,488	'	'	'	'
Deferred tax reversal for unexercised stock options	'	-395	'	'	-395
Excess tax benefit from exercise of stock options	'	854	'	'	854
Balance at Jun. 30, 2014	$940	$305,190	$259,391	($45,014)	$520,507
Balance (in shares) at Jun. 30, 2014	94,249,982	'	'	6,526,305	'

CONSOLIDATED_STATEMENTS_OF_CAS

CONSOLIDATED STATEMENTS OF CASH FLOW (USD $)	6 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013
Operating activities:	'	'
Net income and comprehensive income	$9,391	$17,396
Adjustments to reconcile net income to net cash provided by operating activities:	'	'
Depreciation expense	16,253	15,228
Amortization expense	11,335	14,934
Stock-based compensation expense	6,230	6,122
Excess tax benefit from exercised stock options	-854	-4,244
Deferred income taxes	-3,996	-2,531
Allowance for doubtful accounts	-6,462	6,314
Change in fair value of contingent consideration	11	20
Loss on disposal of fixed assets	4	184
Changes in assets and liabilities:	'	'
Accounts receivable	13,645	-16,772
Prepaid expenses	2,032	1,878
Prepaid income taxes	7,311	-2,742
Other current assets	19	-73
Other assets	-45	7
Accounts payable, accrued expenses and other liabilities	-1,193	-7,011
Estimated liability for appeals	-6,132	7,161
Net cash provided by operating activities	47,549	35,871
Investing activities:	'	'
Purchases of property and equipment	-10,315	-12,734
Investment in common stock	'	-500
Investment in capitalized software	-1,309	-1,996
Net cash used in investing activities	-11,624	-15,230
Financing activities:	'	'
Financing related to revolving credit facility	'	-2,915
Repayment of term loan	'	-8,750
Repayment of revolving credit facility	-35,000	-25,000
Payments on contingent consideration	-428	'
Payments on capital lease obligations	-826	-838
Proceeds from exercise of stock options	3,076	6,309
Payments of tax withholdings on behalf of employees for net-share settlement for stock-based compensation	-1,088	-1,498
Excess tax benefit from exercised stock options	854	4,244
Proceeds from revolving credit facility	'	4,046
Net cash (used in ) /provided by financing activities	-33,412	-24,402
Net increase (decrease) in cash and cash equivalents	2,513	-3,761
Cash and cash equivalents at beginning of year	93,366	135,227
Cash and cash equivalents at end of year	95,879	131,466
Supplemental disclosure of cash flow information:	'	'
Cash paid for income taxes	3,503	19,881
Cash paid for interest	2,538	4,308
Supplemental disclosure of noncash investing activities:	'	'
Accrued property and equipment purchases	1,633	1,655
Equipment purchased through capital leases	$20	$2,196

Basis_of_Presentation

Basis of Presentation	6 Months Ended
	Jun. 30, 2014
Basis of Presentation	'
Basis of Presentation	'
	1.Basis of Presentation

	The accompanying unaudited consolidated financial statements of HMS Holdings Corp., its subsidiaries and affiliates (“HMS,” “we,” “our,” “us”) have been prepared in accordance with United States Generally Accepted Accounting Principles, or U.S. GAAP, for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. In the opinion of management, the unaudited interim financial statements furnished herein include all adjustments necessary for a fair presentation of our and our subsidiaries’ financial position at June 30, 2014, the results of our operations for the three and six months ended June 30, 2014 and 2013 and cash flows for the six months ended June 30, 2014 and 2013. Interim unaudited financial statements are prepared on a basis consistent with our annual financial statements. The financial statements included herein should be read in conjunction with the financial statements and notes included in our Annual Report on Form 10-K for the year ended December 31, 2013, which we refer to as our Annual Report. There have been no significant changes in critical accounting policies since December 31, 2013.

	The preparation of our unaudited consolidated financial statements 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 allowance for appeals and estimated liability for appeals and disclosure of contingent assets and liabilities at the date of the unaudited consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. Our actual results could differ from those estimates.

	These unaudited 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.

	As of June 30, 2014, 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 or failure to correctly estimate or accrue the estimated liabilities and allowance for appeals or accounts receivable could adversely affect our revenue in current or future periods.

	Allowance for doubtful accounts and estimated allowance and liability for appeals as of June 30, 2014 are as follows:

	Allowance for doubtful accounts (in thousands):
	Balance, December 31, 2012		$	830
	Provision		718
	Recoveries		(42		)
	Charge-offs		(590		)
	Balance, December 31, 2013		$	916
	Provision		500
	Recoveries		(17		)
	Charge-offs		(167		)
	Balance, June 30, 2014		$	1,232

	Estimated allowance for appeals and estimated liability for appeals (in thousands):
	Balance, December 31, 2012		$	34,426
	Provision		41,076
	Appeals found in Providers’ favor		(19,711		)
	Balance, December 31, 2013		$	55,791	*
	Provision		12,166
	Appeals found in Providers’ favor		(25,076		)
	Balance, June 30, 2014		$	42,881	*

	*Includes $7,161 and $13,939 related to estimated allowance for appeals that apply to uncollected accounts receivable as of June 30, 2014 and December 31, 2013, respectively.

	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 unaudited 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.

	The following table summarizes the changes in Level 3 instruments during the six months ended June 30, 2014:

	Acquisition related contingent consideration		(in thousands)
	Fair value at December 31, 2013		$	945
	Payments on contingent consideration		(428		)
	Change in fair value of contingent consideration		11
	Fair value at June 30, 2014		$	528

	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.

	The carrying amounts for our cash equivalents, accounts receivable, accounts payable and accrued expenses approximate fair value due to their short-term nature.

	Certain reclassifications were made to prior period amounts to conform to the current period presentation.

	Recently Issued Accounting Pronouncements

	On March 31, 2014, the New York Bank and Corporate Franchise Tax Reform was enacted. Under this new law, banks and general corporations will be subject to a substantially revised Article 9-A franchise tax. Substantive changes to the 9-A franchise tax include, but are not limited to, new economic nexus standards, reduced corporate franchise tax rates for general corporations and qualified manufacturers, revised apportionment provisions, and new rules for when unitary combined reporting is required. As required by ASC 740-10-25-48, the effects of a change in the tax law shall be recognized as of the date of enactment. The adoption of this guidance did not have a material effect on our unaudited consolidated financial statements.

	In May 2014, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update (“ASU”) that amends the FASB Accounting Standards Codification (“ASC”) by creating a new Topic 606 Revenue from Contracts with Customers. The new guidance will supersede the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance throughout the Industry Topics of the Codification.

	The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps:

	Step 1: Identify the contract(s) with a customer.
Step 2: Identify the performance obligations in the contract.
Step 3: Determine the transaction price.
Step 4: Allocate the transaction price to the performance obligations in the contract.
Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation.

In addition, an entity should disclose sufficient qualitative and quantitative information to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers.

The amendments in this ASU are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early application is not permitted. This amendment is to be either retrospectively adopted to each prior reporting period presented or retrospectively with the cumulative effect of initially applying this ASU recognized at the date of initial application. We are currently evaluating the impact of the adoption of this guidance to our unaudited consolidated financial statements.

In June 2014, FASB issued ASU 2014-12, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period (“ASU 2014-12”). ASU 2014-12 requires that a performance target that affects vesting and that could be achieved after the requisite service period is treated as a performance condition. As such, the performance target should not be reflected in estimating the grant-date fair value of the award. ASU 2014-12 is effective for annual reporting periods beginning after December 15, 2015, with early adoption permitted. The adoption of this guidance will not have a material effect on our unaudited consolidated financial statements.

Intangible_Assets

Intangible Assets	6 Months Ended
Intangible Assets	Jun. 30, 2014
Intangible Assets	'
Intangible Assets	'
	2.Intangible Assets

	Intangible assets consisted of the following at June 30, 2014 and December 31, 2013 (in thousands):

		June 30,			December 31,			Useful Life
		2014			2013			Useful Life
	Client relationships	$	102,755		$	102,755		5-10 years
	Trade name	17,312			19,532			3-5 years
	Restrictive covenants	18,300			18,300			3-7 years
		138,367			140,587

	Less accumulated amortization	(53,436		)	(45,275		)
	Intangible assets, net	$	84,931		$	95,312

	Estimated amortization expense for intangible assets is expected to approximate the following (in thousands):

	Year Ending December 31,
	Remainder of 2014	$	10,351
	2015	20,270
	2016	19,934
	2017	16,613
	2018	15,992
	Thereafter	1,771

	For the three and six months ended June 30, 2014, amortization expense related to intangible assets was $5.2 million and $10.4 million, respectively. For the three and six months ended June 30, 2013, amortization expense related to intangible assets was $6.8 million and $12.7 million, respectively.

Income_Taxes

Income Taxes	6 Months Ended
Income Taxes	Jun. 30, 2014
Income Taxes	'
Income Taxes	'
	3.Income Taxes

	Our effective tax rate increased to 42.6% for the six months ended June 30, 2014 from 39.3% for the six months ended June 30, 2013, primarily due to changes in state apportionments and permanent differences, including the aforementioned change in the New York State Franchise Tax. The principal differences between the statutory rate and our effective rate are state taxes and permanent differences.

	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.

	During the six months ended June 30, 2014 and 2013, we recorded excess income tax benefit of $0.9 million and $4.2 million, respectively, from the exercise of stock options by reducing income tax payable and increasing capital.

	As of June 30, 2014 and 2013, the total amount of unrecognized tax benefits was approximately $1.6 million and $1.2 million, respectively, including approximately $0.2 million and $0.1 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 June 30, 2014 and 2013, the accrued liability for interest expense and penalties related to unrecognized tax benefits was $1.2 million and $0.9 million, respectively. We include interest expense and penalties in the provision for income taxes in the unaudited Consolidated Statements of Comprehensive Income. The amount of interest expense (net of federal and state income tax benefits) and penalties in the unaudited Consolidated Statements of Comprehensive Income for the months ended June 30, 2014 and 2013 were immaterial. We do not expect any significant change in unrecognized tax benefits during the next twelve months.

Credit_Agreement

Credit Agreement	6 Months Ended
	Jun. 30, 2014
Credit Agreement	'
Credit Agreement	'
	4.Credit Agreement

	In connection with our acquisition of HealthDataInsights (“HDI”) in 2011, 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.

	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). The interest rate related to the revolving credit facility as of June 30, 2014 was 2.0%. We will 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 such as, 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 June 30, 2014, 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 revolving debt and commitment fees on unused revolving credit facility are as follows (in thousands):

		June 30,				June 30,
		Three months ended				Six months ended
		2014		2013		2014		2013
	Interest expense	$	1,000	$	2,294	$	2,164	$	4,955
	Commitment fees	$	376	$	177	$	704	$	293

	At June 30, 2014 and December 31, 2013, the unamortized balance of deferred lender fees and debt issue costs were $8.0 million and $9.0 million, respectively. For the three months ended June 30, 2014 and 2013, we amortized $0.5 million and $1.5 million, respectively, of interest expense related to our deferred lender fees and debt issue costs. For the six months ended June 30, 2014 and 2013, we amortized $1.0 million and $2.3 million, respectively, of interest expense related to our deferred lender fees and debt issue costs.

Earnings_per_Share

Earnings per Share	6 Months Ended
	Jun. 30, 2014
Earnings per Share	'
Earnings per Share	'
	5.Earnings Per Share

	Basic income per share is calculated by dividing net income by the weighted average number of common shares outstanding during the period. Diluted income per share is calculated by dividing net income by the weighted average number of common shares and dilutive common share equivalents outstanding during the period. Our common share equivalents consist of stock options and restricted stock awards and units.

	The following table reconciles the basic to diluted weighted average shares outstanding using the treasury stock method (shares in thousands, except per share data):

		June 30,				June 30,
		Three months ended				Six months ended
	Basic and diluted	2014		2013		2014		2013
	Net Income	$	6,038	$	10,420	$	9,391	$	17,396

	Net weighted average common shares outstanding, basic	87,691		87,674		87,564		87,408
	Plus: net effect of dilutive stock options	230		1,200		301		1,336
	Plus: net effect of dilutive restricted common shares	171		149		168		175
	Weighted average common shares outstanding, diluted	88,092		89,023		88,033		88,919
	Income per common share - Basic	$	0.07	$	0.12	$	0.11	$	0.20
	Income per common share - Diluted	$	0.07	$	0.12	$	0.11	$	0.20

	For the three months ended June 30, 2014 and 2013, 2,562,229 and 1,413,369 stock options, respectively, were not included in the diluted earnings per share calculation because the effect would have been anti-dilutive. For the three months ended June 30, 2014 and 2013, 9,085 and 189,278 restricted stock units were not included in the diluted earnings per share calculation because the effect would have been anti-dilutive.

	For the six months ended June 30, 2014 and 2013, 2,443,375 and 1,375,346 stock options, respectively, were not included in the diluted earnings per share calculation because the effect would have been anti-dilutive. For the six months ended June 30, 2014 and 2013, 52,171 and 102,847 restricted stock units were not included in the diluted earnings per share calculation because the effect would have been anti-dilutive.

StockBased_Compensation

Stock-Based Compensation	6 Months Ended
Stock-Based Compensation	Jun. 30, 2014
Stock-Based Compensation	'
Stock-Based Compensation	'
	6.Stock-Based Compensation

	Total stock-based compensation expense charged as a selling, general and administrative expense in our unaudited consolidated statements of comprehensive income related to our stock compensation plans was $3.3 million and $3.1 million for the three months ended June 30, 2014 and June 30, 2013, respectively, and $6.2 million and $6.1 million for the six months ended June 30, 2014 and June 30, 2013, respectively.

	Presented below is a summary of our stock option activity for the six months ended June 30, 2014 (shares in thousands):

			Shares		Weighted			Weighted	Aggregate
					Average			Average	Intrinsic
					Exercise			Remaining	Value
					Price			Contractual
								Terms
	Outstanding at December 31, 2013		4,273		$	17.53		4.86	27,099
	Granted		58		$	19.96
	Exercised		(316	)	$	9.9
	Forfeited		(207	)	$	23.5
	Expired		(117	)	$	22.69
	Outstanding at June 30, 2014		3,691		$	17.72		4.5	$	18,094
	Expected to vest at June 30, 2014		1,743		$	22.69		6.03	$	896
	Exercisable at June 30, 2014		1,907		$	13.06		3.06	$	17,172

	For awards subject to service-based vesting conditions, the Company recognizes stock-based compensation expense, net of estimated forfeitures, equal to the grant date fair value of stock options on a straight-line basis over the requisite service period, which is generally the vesting term. For awards subject to both performance and service-based vesting conditions, the Company recognizes stock-based compensation expense using the straight-line recognition method when it is probable that the performance condition will be achieved. Forfeitures are required to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates.

	The fair value of each option grant with service-based vesting conditions was estimated using the Black-Scholes pricing models. The performance share awards granted in 2013 are market condition awards as attainment is based on the performance of our common stock for the relevant performance period. These awards were valued on the date of grant using a Monte Carlo simulation model (a binomial lattice-based valuation 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 six months ended June 30, 2014 and 2013 was $5.92 and $9.71, respectively. We estimated the fair value of each stock option grant on the date of grant using a Black-Scholes option-pricing model and the weighted-average assumptions set forth in the following table:

			Six months ended June 30,
			2014		2013
	Expected dividend yield		—		—
	Risk-free interest rate		1.50%		0.67%
	Expected volatility		37.27%		40.05%
	Expected life		4.81 years		4.47 years

	During the three months ended June 30, 2014 and 2013, we issued 0.1 million shares and 0.2 million shares, respectively, of our common stock upon the exercise of outstanding stock options and received proceeds of $0.6 million and $0.9 million, respectively.

	For each of the three months ended June 30, 2014 and 2013, stock-based compensation expense for stock options was $1.8 million.

	We did not recognize excess income tax benefit from the exercise of stock options in our unaudited consolidated statements of comprehensive income for the three months ended June 30, 2014. We recognized excess income tax benefit of $1.2 million from the exercise of stock options in our unaudited consolidated statements of comprehensive income for the three months ended June 30, 2013.

	During the six months ended June 30, 2014 and 2013, we issued 0.3 million shares, and 0.7 million shares, respectively, of our common stock upon the exercise of outstanding stock options and received proceeds of $3.1 million and $6.3 million, respectively.

	For the six months ended June 30, 2014 and 2013, stock-based compensation expense for stock options was $3.6 million and $3.7 million, respectively.

	We recognized excess income tax benefit of $0.9 million and $4.2 million from the exercise of stock options in our unaudited consolidated statements of comprehensive income for the six months ended June 30, 2014 and 2013, respectively.

	As of June 30, 2014, there was $11.1 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 1.3 years.

	The total intrinsic value of options exercised (the difference in the market price of our common stock on the exercise date and the price paid by the optionee to exercise the option) for the three months ended June 30, 2014 and 2013 was approximately $0.4 million and $4.0 million, respectively.

	The total intrinsic value of options exercised during the six month periods ended June 30, 2014 and 2013 was $3.3 million and $13.9 million, respectively.

	Restricted Stock Units

	Our non-employee members of the Board and certain employees have received restricted stock units under our 2006 Stock Plan, as amended (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. Shares withheld to pay taxes upon the vesting of restricted stock units are retired.

	For the three months ended June 30, 2014, we granted 4,880 restricted stock units with an aggregate fair market value of $0.1 million.

	For the three months ended June 30, 2014 and 2013, stock-based compensation expense for restricted stock units was $1.5 million and $1.2 million, respectively.

	For the six months ended June 30, 2014, we granted 246,764 restricted stock units, with an aggregate fair market value of $5.0 million.

For the six months ended June 30, 2014 and 2013, stock-based compensation expense for restricted stock units was $2.5 million and $2.1 million, respectively.

At June 30, 2014, 611,023 restricted stock units remained unvested and there was $11.4 million of unamortized compensation cost related to these restricted stock units, which is expected to be recognized over the remaining weighted-average vesting period of 1.7 years.

A summary of the status of our restricted stock units and of changes in restricted stock units outstanding under the 2006 Stock Plan for the six months ended June 30, 2014 is as follows (in thousands, except for weighted average grant date fair value per unit):

		Number		Weighted Average			Aggregate
		of		Grant Date Fair			Intrinsic
		Units		Value per Unit			Value
Outstanding balance at December 31, 2013		636		$	25.5		$	14,429
Granted		247		$	20.22
Vesting of restricted stock units, net of shares withheld for taxes		(52	)	$	25.56
Shares withheld for taxes		(25	)	$	25.56
Forfeitures		(117	)	$	24.96
Outstanding balance at June 30, 2014		689		$	23.71		$	14,057

Restricted Stock Awards

In February 2009, certain of our executive officers received a grant of restricted stock awards under the 2006 Stock Plan, which vested in full in February 2014. The vesting of these restricted stock awards was subject to the executive officers’ continued employment with us and the recipients of these awards were not required to provide us with any consideration other than rendering service. 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.

For the three months ended June 30, 2014, we did not issue restricted stock awards. For the three months ended June 30, 2013, stock-based compensation expense for restricted stock awards was $0.1 million.

For the six months ended June 30, 2014 and 2013, stock-based compensation expense for restricted stock awards was $0.1 million and $0.3 million, respectively.

A summary of the status of our restricted stock awards at June 30, 2014 and of changes in restricted stock awards outstanding under the 2006 Stock Plan for the six months ended June 30, 2014 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, 2013		82		$	10.42		$	1,851
Granted		—		—
Vesting of restricted stock awards		(54	)	$	10.42
Shares withheld for payment of taxes upon vesting of restricted stock awards		(28	)	$	10.42
Forfeitures		—		—
Outstanding balance at June 30, 2014		—					$	—

The total fair value of restricted stock awards vested during the six months ended June 30, 2014 was $0.9 million.

Commitments_and_Contingencies

Commitments and Contingencies	6 Months Ended
Commitments and Contingencies	Jun. 30, 2014
Commitments and Contingencies	'
Commitments and Contingencies	'
	7.Commitment and Contingencies

	Litigation

	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 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.

	In the Superior Court of the State of California, County of Los Angeles, Kern Health Systems (“KHS” or “Plaintiff”) had sought to recover in excess of $7 million exclusive of interest, attorney fees and costs, against Allied Management Group Special Investigation Unit, Inc. (“AMG”), Dennis Demetre, and Lori Lewis (collectively, “Defendants”), jointly and severally, on causes of action for breach of contract, professional negligence, intentional misrepresentation, negligent misrepresentation and unfair business practices under California Business and Professions Code. On June 9, 2014, the jury issued its verdict in favor of all Defendants, and against KHS, on all causes of action except negligent misrepresentation. On that cause of action, the jury issued a verdict against all Defendants, jointly and severally, in the sum of $1.38 million. The negligent misrepresentation verdict was based on representations to KHS allegedly made by AMG and former owner Dennis Demetre in the spring of 2008, prior to the acquisition of AMG by HMS. We believe that the jury erroneously awarded damages based on an error inasmuch as the jury unanimously found that Defendants (through Demetre) made the negligent misrepresentation to KHS while having reasonable grounds for believing the representation to be true. We intend to appeal this verdict. Additionally, based on the jury’s verdict, we believe we are properly characterized as the prevailing party on the breach of contract claim. On July 28, 2014, AMG filed a motion to formally seek to recover its attorney fees and costs in the sum of approximately $2.3 million. We have not recorded an obligation on this matter at this time, as we are in the process of appealing this decision and believe it is probable that we will prevail on the appeal of this matter, although there are risks and uncertainties related to any litigation, including appeals, and neither we nor counsel are guarantors of litigation results.

	Lease Commitments

	On February 27, 2014, we entered into a lease agreement with an initial term of 121 months, with New Russell One, LLC for 63,922 square feet of office space at The Gramercy in Las Vegas, Nevada, the lease term for which is expected to commence during the three month period ending September 30, 2014.

	We may elect to extend the lease term for up to two separate and successive five-year periods at a base rent equal to 95% of the fair market value of the rent at the time of our election. We may terminate the lease on (i) the last day of the 75th month of the initial lease term, or (ii) the last day of the 99th month of the initial lease term, in each case, upon nine months prior notice.

	Our total obligation for this lease is $16.1 million over its term and includes a tenant improvement allowance of $4.0 million. The base rent and our share of direct expenses will be abated for the first 13 months of the lease term.

	On April 2, 2014, we obtained a surety bond with a notional amount of $6.1 million for purposes of guaranteeing payment to subcontractors for improvements to the office space. A one-time fee of $66,562 was paid for the surety bond.

	Letter of Credit

	As part of our contractual agreement with a client, we have an outstanding irrevocable letter of credit (the “Letter of Credit”) for $4.6 million, which we established against our existing revolving credit facility.

Basis_of_Presentation_Policies

Basis of Presentation (Policies)	6 Months Ended
Basis of Presentation (Policies)	Jun. 30, 2014
Basis of Presentation	'
Recently Issued Accounting Pronouncements	'
	Recently Issued Accounting Pronouncements

	On March 31, 2014, the New York Bank and Corporate Franchise Tax Reform was enacted. Under this new law, banks and general corporations will be subject to a substantially revised Article 9-A franchise tax. Substantive changes to the 9-A franchise tax include, but are not limited to, new economic nexus standards, reduced corporate franchise tax rates for general corporations and qualified manufacturers, revised apportionment provisions, and new rules for when unitary combined reporting is required. As required by ASC 740-10-25-48, the effects of a change in the tax law shall be recognized as of the date of enactment. The adoption of this guidance did not have a material effect on our unaudited consolidated financial statements.

	In May 2014, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update (“ASU”) that amends the FASB Accounting Standards Codification (“ASC”) by creating a new Topic 606 Revenue from Contracts with Customers. The new guidance will supersede the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance throughout the Industry Topics of the Codification.

	The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps:

	Step 1: Identify the contract(s) with a customer.
	Step 2: Identify the performance obligations in the contract.
	Step 3: Determine the transaction price.
	Step 4: Allocate the transaction price to the performance obligations in the contract.
	Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation.

	In addition, an entity should disclose sufficient qualitative and quantitative information to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers.

	The amendments in this ASU are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early application is not permitted. This amendment is to be either retrospectively adopted to each prior reporting period presented or retrospectively with the cumulative effect of initially applying this ASU recognized at the date of initial application. We are currently evaluating the impact of the adoption of this guidance to our unaudited consolidated financial statements.

	In June 2014, FASB issued ASU 2014-12, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period (“ASU 2014-12”). ASU 2014-12 requires that a performance target that affects vesting and that could be achieved after the requisite service period is treated as a performance condition. As such, the performance target should not be reflected in estimating the grant-date fair value of the award. ASU 2014-12 is effective for annual reporting periods beginning after December 15, 2015, with early adoption permitted. The adoption of this guidance will not have a material effect on our unaudited consolidated financial statements.

Basis_of_Presentation_Tables

Basis of Presentation (Tables)	6 Months Ended
Basis of Presentation (Tables)	Jun. 30, 2014
Basis of Presentation	'
Schedule of allowances for doubtful accounts	'


	Allowance for doubtful accounts (in thousands):
	Balance, December 31, 2012	$	830
	Provision	718
	Recoveries	(42		)
	Charge-offs	(590		)
	Balance, December 31, 2013	$	916
	Provision	500
	Recoveries	(17		)
	Charge-offs	(167		)
	Balance, June 30, 2014	$	1,232

	Estimated allowance for appeals and estimated liability for appeals (in thousands):
	Balance, December 31, 2012	$	34,426
	Provision	41,076
	Appeals found in Providers’ favor	(19,711		)
	Balance, December 31, 2013	$	55,791	*
	Provision	12,166
	Appeals found in Providers’ favor	(25,076		)
	Balance, June 30, 2014	$	42,881	*

	*Includes $7,161 and $13,939 related to estimated allowance for appeals that apply to uncollected accounts receivable as of June 30, 2014 and December 31, 2013, respectively.

Schedule of changes in Level 3	'


	Acquisition related contingent consideration	(in thousands)
	Fair value at December 31, 2013	$	945
	Payments on contingent consideration	(428		)
	Change in fair value of contingent consideration	11
	Fair value at June 30, 2014	$	528

Intangible_Assets_Tables

Intangible Assets (Tables)	6 Months Ended
Intangible Assets (Tables)	Jun. 30, 2014
Intangible Assets	'
Summary of intangible assets	'


	Intangible assets consisted of the following at June 30, 2014 and December 31, 2013 (in thousands):

		June 30,			December 31,			Useful Life
		2014			2013			Useful Life
	Client relationships	$	102,755		$	102,755		5-10 years
	Trade name	17,312			19,532			3-5 years
	Restrictive covenants	18,300			18,300			3-7 years
		138,367			140,587

	Less accumulated amortization	(53,436		)	(45,275		)
	Intangible assets, net	$	84,931		$	95,312


Schedule of estimated amortization expense of intangible assets	'
	Estimated amortization expense for intangible assets is expected to approximate the following (in thousands):

	Year Ending December 31,
	Remainder of 2014	$	10,351
	2015	20,270
	2016	19,934
	2017	16,613
	2018	15,992
	Thereafter	1,771

Credit_Agreement_Tables

Credit Agreement (Tables)	6 Months Ended
	Jun. 30, 2014
Credit Agreement	'
Schedule of interest expense on revolving credit facility and commitment fees and unused revolving credit facility	'


	The interest expense on revolving debt and commitment fees on unused revolving credit facility are as follows (in thousands):

		June 30,				June 30,
		Three months ended				Six months ended
		2014		2013		2014		2013
	Interest expense	$	1,000	$	2,294	$	2,164	$	4,955
	Commitment fees	$	376	$	177	$	704	$	293

Earnings_per_Share_Tables

Earnings per Share (Tables)	6 Months Ended
	Jun. 30, 2014
Earnings per Share	'
Schedule of reconciliation between the weighted average outstanding shares used in calculation of basic and diluted earnings per share	'


	The following table reconciles the basic to diluted weighted average shares outstanding using the treasury stock method (shares in thousands, except per share data):

		June 30,				June 30,
		Three months ended				Six months ended
	Basic and diluted	2014		2013		2014		2013
	Net Income	$	6,038	$	10,420	$	9,391	$	17,396

	Net weighted average common shares outstanding, basic	87,691		87,674		87,564		87,408
	Plus: net effect of dilutive stock options	230		1,200		301		1,336
	Plus: net effect of dilutive restricted common shares	171		149		168		175
	Weighted average common shares outstanding, diluted	88,092		89,023		88,033		88,919
	Income per common share - Basic	$	0.07	$	0.12	$	0.11	$	0.20
	Income per common share - Diluted	$	0.07	$	0.12	$	0.11	$	0.20

StockBased_Compensation_Tables

Stock-Based Compensation (Tables)	6 Months Ended
Stock-Based Compensation (Tables)	Jun. 30, 2014
Stock-Based Compensation	'
Summary of stock option activity	'


	Presented below is a summary of our stock option activity for the six months ended June 30, 2014 (shares in thousands):

		Shares		Weighted		Weighted		Aggregate
				Average		Average		Intrinsic
				Exercise		Remaining		Value
				Price		Contractual
						Terms
	Outstanding at December 31, 2013	4,273		$	17.53	4.86		27,099
	Granted	58		$	19.96
	Exercised	(316	)	$	9.9
	Forfeited	(207	)	$	23.5
	Expired	(117	)	$	22.69
	Outstanding at June 30, 2014	3,691		$	17.72	4.5		$	18,094
	Expected to vest at June 30, 2014	1,743		$	22.69	6.03		$	896
	Exercisable at June 30, 2014	1,907		$	13.06	3.06		$	17,172


Schedule of weighted -average assumptions used for estimating fair value of each stock option grant on the date of grant	'


		Six months ended June 30,
		2014		2013
	Expected dividend yield	—		—
	Risk-free interest rate	1.50%		0.67%
	Expected volatility	37.27%		40.05%
	Expected life	4.81 years		4.47 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 for the six months ended June 30, 2014 is as follows (in thousands, except for weighted average grant date fair value per unit):

		Number		Weighted Average		Aggregate
		of		Grant Date Fair		Intrinsic
		Units		Value per Unit		Value
	Outstanding balance at December 31, 2013	636		$	25.5	$	14,429
	Granted	247		$	20.22
	Vesting of restricted stock units, net of shares withheld for taxes	(52	)	$	25.56
	Shares withheld for taxes	(25	)	$	25.56
	Forfeitures	(117	)	$	24.96
	Outstanding balance at June 30, 2014	689		$	23.71	$	14,057


Summary of status of restricted stock awards	'


	A summary of the status of our restricted stock awards at June 30, 2014 and of changes in restricted stock awards outstanding under the 2006 Stock Plan for the six months ended June 30, 2014 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, 2013	82		$	10.42	$	1,851
	Granted	—		—
	Vesting of restricted stock awards	(54	)	$	10.42
	Shares withheld for payment of taxes upon vesting of restricted stock awards	(28	)	$	10.42
	Forfeitures	—		—
	Outstanding balance at June 30, 2014	—				$	—

Basis_of_Presentation_Details

Basis of Presentation (Details) (USD $)	6 Months Ended	12 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Basis of Presentation	'	'
Estimated liability for appeals	$35,720	$41,852
Allowance for doubtful accounts	'	'
Balance, beginning of period	916	830
Provision	-500	-718
Recoveries	-17	-42
Charge-offs	-167	-590
Balance, end of period	1,232	916
Estimated allowance for appeals and estimated liability for appeals	'	'
Balance at the beginning of the period	55,791	34,426
Provision	12,166	41,076
Appeals found in Providers favor	-25,076	-19,711
Balance at the end of the period	42,881	55,791
Accounts receivable, allowance for appeals (in dollars)	$7,161	$13,939

Basis_of_Presentation_Details_

Basis of Presentation (Details 2) (Contingent Consideration [Member], USD $)	6 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2014
Contingent Consideration [Member]	'
Changes in level 3 instruments	'
Balance at the beginning of the period	$945
Payments on contingent consideration	-428
Change in fair value of contingent consideration	11
Balance at the end of the period	$528

Intangible_Assets_Details

Intangible Assets (Details) (USD $)	3 Months Ended		6 Months Ended
Intangible Assets (Details) (USD $)	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2013
Intangible assets	'	'	'	'	'
Intangible assets, gross	$138,367,000	'	$138,367,000	'	$140,587,000
Less accumulated amortization	-53,436,000	'	-53,436,000	'	-45,275,000
Intangible assets, net	84,931,000	'	84,931,000	'	95,312,000
Amortization of intangibles	'	'	'	'	'
Remainder of 2014	10,351,000	'	10,351,000	'	'
2014	20,270,000	'	20,270,000	'	'
2015	19,934,000	'	19,934,000	'	'
2016	16,613,000	'	16,613,000	'	'
2017	15,992,000	'	15,992,000	'	'
Thereafter	1,771,000	'	1,771,000	'	'
Amortization expense	5,200,000	6,800,000	10,400,000	12,700,000	'
Customer Relationships [Member]	'	'	'	'	'
Intangible assets	'	'	'	'	'
Intangible assets, gross	102,755,000	'	102,755,000	'	102,755,000
Trade Names [Member]	'	'	'	'	'
Intangible assets	'	'	'	'	'
Intangible assets, gross	17,312,000	'	17,312,000	'	19,532,000
Restrictive Covenant [Member]	'	'	'	'	'
Intangible assets	'	'	'	'	'
Intangible assets, gross	$18,300,000	'	$18,300,000	'	$18,300,000

Income_Taxes_Details

Income Taxes (Details) (USD $)	6 Months Ended
Income Taxes (Details) (USD $)	Jun. 30, 2014	Jun. 30, 2013
Income Taxes	'	'
Effective income tax rate (as a percent)	42.60%	39.30%
Excess tax benefit from exercise of stock options	$854,000	$4,200,000
Net unrecognized tax benefits	1,600,000	1,200,000
Unrecognized tax benefits with impact to the effective tax rate	200,000	100,000
Accrued liabilities for interest expense and penalties related to unrecognized tax benefits	$1,200,000	$900,000

Credit_Agreement_Details

Credit Agreement (Details) (USD $)

3 Months Ended

6 Months Ended

1 Months Ended

6 Months Ended

1 Months Ended

6 Months Ended

1 Months Ended

6 Months Ended

3 Months Ended

6 Months Ended

1 Months Ended

Jun. 30, 2014

Jun. 30, 2013

Jun. 30, 2014

Jun. 30, 2013

Dec. 31, 2013

31-May-13

Jun. 30, 2014

31-May-13

Jun. 30, 2014

31-May-13

Jun. 30, 2014

Jun. 30, 2013

Jun. 30, 2014

Jun. 30, 2013

31-May-13

Credit Agreement2013 [Member]

Credit Agreement2011 [Member]

Minimum [Member]

Maximum [Member]

London Interbank Offered Rate L I B O R [Member]

Health Data Insights Inc [Member]

Revolving Credit Facility [Member]

Credit Agreement2013 [Member]

Minimum [Member]

Credit Agreement2011 [Member]

Credit Agreement2013 [Member]

Minimum [Member]

Maximum [Member]

London Interbank Offered Rate L I B O R [Member]

Federal Fund Rate [Member]

One Month London Interbank Offered Rate L I B O R [Member]

item

Credit Agreement2013 [Member]

Maximum [Member]

Credit Agreement2013 [Member]

Minimum [Member]

Maximum [Member]

Credit Agreement2013 [Member]

Credit agreement

Period of revolving credit facility

'5 years

Principal borrowing capacity

$500,000,000

Number of incremental term loan facilities that may be added

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

Interest rate margin (as a percent)

1.50%

2.25%

0.50%

1.25%

Rate added to reference rate and interest margin

1.00%

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

323,800,000

Unpaid interest paid

2,538,000

4,308,000

1,100,000

Loan origination fees

2,900,000

Interest expense

1,000,000

2,294,000

2,164,000

4,955,000

Commitment fees

376,000

177,000

704,000

293,000

Unamortized balance of deferred origination fees and debt issue costs

8,000,000

9,000,000

Amortization of financing cost

$500,000

$1,500,000

$1,000,000

$2,300,000

Effective annualized interest rate of debt (as a percent)

2.00%

Earnings_Per_Share_Details

Earnings Per Share (Details) (USD $)	3 Months Ended		6 Months Ended
In Thousands, except Share data, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Reconciliation of basic to diluted weighted average shares outstanding	'	'	'	'
Net income	$6,038	$10,420	$9,391	$17,396
Net weighted average common shares outstanding, basic (in shares)	87,691,000	87,674,000	87,564,000	87,408,000
Dilutive effect of stock options (in shares)	230,000	1,200,000	301,000	1,336,000
Dilutive effect of restricted stock awards and units (in shares)	171,000	149,000	168,000	175,000
Weighted average common shares outstanding, diluted (in shares)	88,092,000	89,023,000	88,033,000	88,919,000
Basic income per common share:	'	'	'	'
Income per common share - Basic	$0.07	$0.12	$0.11	$0.20
Diluted income per share:	'	'	'	'
Income per common share - Diluted	$0.07	$0.12	$0.11	$0.20
Employee And Directors Stock Options [Member]	'	'	'	'
Anti-dilutive securities	'	'	'	'
Anti-dilutive securities excluded from diluted earnings per share calculations (in shares)	2,562,229	1,413,369	2,443,375	1,375,346
Restricted Stock Units R S U [Member]	'	'	'	'
Anti-dilutive securities	'	'	'	'
Anti-dilutive securities excluded from diluted earnings per share calculations (in shares)	189,278	9,085	52,171	102,847

Earnings_per_Share_Details_2

Earnings per Share (Details 2) (USD $)	3 Months Ended		6 Months Ended
In Thousands, except Share data, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Computation of basic and diluted earnings per share	'	'	'	'
Net income	$6,038	$10,420	$9,391	$17,396
Net weighted average common shares outstanding, basic (in shares)	87,691,000	87,674,000	87,564,000	87,408,000
Weighted average common shares outstanding, diluted (in shares)	88,092,000	89,023,000	88,033,000	88,919,000
Income per common share - Basic (in dollars per share)	$0.07	$0.12	$0.11	$0.20
Income per common share - Diluted (in dollars per share)	$0.07	$0.12	$0.11	$0.20
Employee And Directors Stock Options [Member]	'	'	'	'
Anti-dilutive securities	'	'	'	'
Anti-dilutive securities excluded from diluted earnings per share calculations (in shares)	2,562,229	1,413,369	2,443,375	1,375,346
Restricted Stock Units R S U [Member]	'	'	'	'
Anti-dilutive securities	'	'	'	'
Anti-dilutive securities excluded from diluted earnings per share calculations (in shares)	189,278	9,085	52,171	102,847

StockBased_Compensation_Detail

Stock-Based Compensation (Details) (USD $)	3 Months Ended		6 Months Ended
Stock-Based Compensation (Details) (USD $)	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2013
Stock-based compensation	'	'	'	'	'
Stock-based compensation expense recognized related to stock compensation plans	$3,300,000	$3,100,000	$6,200,000	$6,100,000	'
Excess tax benefit from stock-based compensation	'	'	854,000	4,244,000	'
Income tax expense (benefit)	4,593,000	6,692,000	6,982,000	11,276,000	'
Assumptions used to determine fair value of options granted	'	'	'	'	'
Weighted-average grant-date fair value per share of the stock options granted	'	'	$5.92	$9.71	'
Additional disclosures	'	'	'	'	'
Proceeds from exercise of stock options	'	'	3,076,000	6,309,000	'
Tax benefit from exercise of stock options	'	'	854,000	4,200,000	'
Employee Stock Option [Member]	'	'	'	'	'
Stock-based compensation	'	'	'	'	'
Stock-based compensation expense recognized related to stock compensation plans	1,800,000	1,800,000	3,600,000	3,700,000	'
Stock option activity	'	'	'	'	'
Options outstanding at the beginning of the period (in shares)	'	'	4,273,000	'	'
Granted (in shares)	'	'	58,000	'	'
Exercised (in shares)	-100,000	-200,000	-316,000	-700,000	'
Forfeitures (in shares)	'	'	-207,000	'	'
Expired (in shares)	'	'	-117,000	'	'
Options outstanding at the end of the period (in shares)	3,691,000	'	3,691,000	'	'
Options expected to vest at the end of the period (in shares)	1,743,000	'	1,743,000	'	'
Options exercisable at the end of the period (in shares)	1,907,000	'	1,907,000	'	'
Stock options, Weighted Average Exercise Price	'	'	'	'	'
Options outstanding at the beginning of the period (in dollars per share)	'	'	$17.53	'	'
Granted (in dollars per share)	'	'	$19.96	'	'
Exercised (in dollars per share)	'	'	$9.90	'	'
Forfeitures (in dollars per share)	'	'	$23.50	'	'
Expired (in dollars per shares)	'	'	$22.69	'	'
Options outstanding at the end of the period (in dollars per share)	$17.72	'	$17.72	'	'
Options expected to vest at the end of the period (in dollars per share)	$22.69	'	$22.69	'	'
Options exercisable at the end of the period (in dollars per share)	$13.06	'	$13.06	'	'
Stock options, Weighted Average Remaining Contractual Terms	'	'	'	'	'
Options outstanding at the end of the period	'4 years 6 months	'	'	'	'
Options expected to vest at the end of the period	'6 years 11 days	'	'	'	'
Options exercisable at the end of the period	'3 years 22 days	'	'	'	'
Stock options, Aggregate Intrinsic Value	'	'	'	'	'
Options outstanding at the end of the period	18,094,000	'	18,094,000	'	'
Options expected to vest at the end of the period	896,000	'	896,000	'	'
Options exercisable at the end of the period	17,172,000	'	17,172,000	'	'
Assumptions used to determine fair value of options granted	'	'	'	'	'
Risk-free interest rate (as a percent)	'	'	1.50%	0.67%	'
Expected volatility (as a percent)	'	'	37.27%	40.05%	'
Expected life	'	'	'4 years 9 months 22 days	'4 years 5 months 19 days	'
Additional disclosures	'	'	'	'	'
Proceeds from exercise of stock options	600,000	900,000	3,100,000	6,300,000	'
Tax benefit from exercise of stock options	'	1,200,000	900,000	4,200,000	'
Unrecognized stock-based compensation	11,100,000	'	11,100,000	'	'
Weighted-average period over which compensation will be recognized	'	'	'1 year 3 months 18 days	'	'
Total intrinsic value of options exercised	400,000	4,000,000	3,300,000	13,900,000	'
Restricted Stock Units R S U [Member]	'	'	'	'	'
Stock-based compensation	'	'	'	'	'
Stock-based compensation expense recognized related to stock compensation plans	1,500,000	1,200,000	2,500,000	2,100,000	'
Stock options, Aggregate Intrinsic Value	'	'	'	'	'
Options outstanding at the end of the period	'	'	'	'	14,429,000
Additional disclosures	'	'	'	'	'
Unrecognized stock-based compensation	11,400,000	'	11,400,000	'	'
Weighted-average period over which compensation will be recognized	'	'	'1 year 8 months 12 days	'	'
Restricted Stock [Member]	'	'	'	'	'
Stock-based compensation	'	'	'	'	'
Stock-based compensation expense recognized related to stock compensation plans	$100,000	'	$100,000	'	'

StockBased_Compensation_Detail1

Stock-Based Compensation (Details 2) (USD $)	3 Months Ended		6 Months Ended		3 Months Ended		6 Months Ended		3 Months Ended	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2014	Dec. 31, 2013
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Restricted Stock Units R S U [Member]	Restricted Stock Units R S U [Member]	Restricted Stock Units R S U [Member]	Restricted Stock Units R S U [Member]	Restricted Stock [Member]	Restricted Stock [Member]	Restricted Stock [Member]
Stock-based compensation	'	'	'	'	'	'	'	'	'	'	'
Granted, aggregate fair market value	'	'	'	'	$100,000	'	$5,000,000	'	'	'	'
Outstanding equity instruments other than option	'	'	'	'	611,023	'	611,023	'	'	'	'
Recognized stock-based compensation expense	3,300,000	3,100,000	6,200,000	6,100,000	1,500,000	1,200,000	2,500,000	2,100,000	100,000	100,000	'
Unrecognized stock-based compensation	'	'	'	'	11,400,000	'	11,400,000	'	'	'	'
Weighted-average period over which compensation will be recognized	'	'	'	'	'	'	'1 year 8 months 12 days	'	'	'	'
Restricted stock units and restricted stock awards	'	'	'	'	'	'	'	'	'	'	'
Outstanding, beginning balance (in units or shares)	'	'	'	'	'	'	636,000	'	'	82,000	'
Granted (in shares)	'	'	'	'	4,880	'	246,764	'	'	'	'
Vesting of restricted stock units, net of shares withheld for taxes (in shares)	'	'	'	'	'	'	-52,000	'	'	-54,000	'
Shares withheld for payment of taxes upon vesting of restricted stock awards	'	'	'	'	'	'	-25,000	'	'	-28,000	'
Forfeitures (in shares)	'	'	'	'	'	'	-117,000	'	'	'	'
Outstanding, ending balance (in units or shares)	'	'	'	'	689,000	'	689,000	'	'	'	'
Restricted stock units and restricted stock awards, Weighted Average Grant Date Fair Value	'	'	'	'	'	'	'	'	'	'	'
Outstanding, beginning balance (in dollars per unit or share)	'	'	'	'	'	'	$25.50	'	'	$10.42	'
Granted (in dollars per share)	'	'	'	'	'	'	$20.22	'	'	'	'
Vesting of restricted stock units, net of shares withheld for taxes (in dollars per unit or share)	'	'	'	'	'	'	$25.56	'	'	$10.42	'
Shares withheld for taxes (in dollars per share)	'	'	'	'	'	'	$25.56	'	'	$10.42	'
Forfeitures (in dollars per unit or share)	'	'	'	'	'	'	$24.96	'	'	'	'
Outstanding, ending balance (in dollars per unit or share)	'	'	'	'	$23.71	'	$23.71	'	'	'	'
Aggregate Intrinsic Value	'	'	'	'	'	'	'	'	'	'	'
Outstanding balance, aggregate intrinsic value	'	'	'	'	14,057,000	'	14,057,000	'	'	'	1,851,000
Fair value of shares vested	'	'	'	'	'	'	'	'	'	$900,000	'

Commitment_and_Contingencies_D

Commitment and Contingencies (Details) (USD $)	0 Months Ended		1 Months Ended	3 Months Ended		0 Months Ended		6 Months Ended
	Apr. 02, 2014	Feb. 27, 2014	Feb. 28, 2014	Jun. 30, 2014	Feb. 27, 2014	Jan. 09, 2014	Jul. 28, 2014	Jun. 30, 2014
					area	Subsidiaries [Member]	Subsidiaries [Member]	Minimum [Member]
					period		Subsequent Event [Member]	Subsidiaries [Member]
Loss Contingencies [Line Items]	'	'	'	'	'	'	'	'
Loss Contingency damages Sought, Value	'	'	'	'	'	'	'	$7,000,000
Loss contingency damages awarded, value	'	'	'	'	'	1,380,000	'	'
Motion filed to recover attorney fees and costs	'	'	'	'	'	'	2,300,000	'
Lease term	'	'	'121 months	'	'	'	'	'
Lease square footage	'	'	'	'	63,922	'	'	'
Lease term, number of extension periods	'	'	'	'	2	'	'	'
Lease term, extension period length	'	'	'5 years	'	'	'	'	'
Lease term extension base rent percent	'	'	'	'	95.00%	'	'	'
Lease termination notice, period	'	'9 months	'	'	'	'	'	'
Total fair value initial lease term	'	'	'	'	16,100,000	'	'	'
Fair value of tenant improvement allowance	'	'	'	'	4,000,000	'	'	'
Base rent and direct expense abatement period	'	'13 months	'	'	'	'	'	'
Surety bond to guarantee payment on tenant improvements	6,100,000	'	'	'	'	'	'	'
Surety bond underwriting fees	'	'	'	66,562	'	'	'	'
Irrevocable letter of credit or Letter of Credit outstanding	'	'	'	$4,600,000	'	'	'	'

Income_Taxes_Details_3

Income Taxes (Details 3) (USD $)	6 Months Ended
Income Taxes (Details 3) (USD $)	Jun. 30, 2014	Jun. 30, 2013
Income Taxes	'	'
Excess tax benefit from exercise of stock options	$854,000	$4,200,000
Net unrecognized tax benefits	1,600,000	1,200,000
Accrued liabilities for interest expense and penalties related to unrecognized tax benefits	$1,200,000	$900,000

Quarterly_Financial_Data_unaud

Quarterly Financial Data (unaudited) (Details) (USD $)	3 Months Ended		6 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Quarterly Financial Data (unaudited)	'	'	'	'
Revenue	$112,561	$125,809	$217,268	$242,416
Operating income	12,558	20,366	20,355	35,634
Net income and comprehensive income	$6,038	$10,420	$9,391	$17,396
Income per common share - Basic (in dollars per share)	$0.07	$0.12	$0.11	$0.20
Income per common share - Diluted (in dollars per share)	$0.07	$0.12	$0.11	$0.20

SCHEDULE_IIVALUATION_AND_QUALI

SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS (Details) (USD $)	Jun. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS	'	'
Estimated allowance for appeals	$35,720	$41,852