HMS (HMSY) 10-Q 11 May 15 2015 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	Mar. 31, 2015	6-May-15
Document and Entity Information
Entity Registrant Name	HMS HOLDINGS CORP
Entity Central Index Key	1196501
Document Type	10-Q
Document Period End Date	31-Mar-15
Amendment Flag	FALSE
Current Fiscal Year End Date	-19
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		88,514,512
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q1

CONSOLIDATED_BALANCE_SHEETS

CONSOLIDATED BALANCE SHEETS (USD $)	Mar. 31, 2015	Dec. 31, 2014
In Thousands, unless otherwise specified
Current assets:
Cash and cash equivalents	$133,546	$133,116
Accounts receivable, net of allowance for doubtful accounts of $1,478 and $1,898, respectively, and estimated allowance for appeals of $5,473 and $4,824 at March 31, 2015 and December 31, 2014, respectively	166,445	157,101
Prepaid expenses	12,793	11,810
Prepaid income taxes	4,541	5,142
Deferred tax assets	5,021	7,811
Other current assets	2,588	2,639
Total current assets	324,934	317,619
Property and equipment, net	110,438	116,027
Goodwill	361,468	361,468
Intangible assets, net	69,501	74,578
Deferred financing costs, net	6,436	6,957
Other assets	4,486	4,339
Total assets	877,263	880,988
Current liabilities:
Accounts payable, accrued expenses and other liabilities	42,200	54,549
Estimated liability for appeals	36,986	36,799
Total current liabilities	79,186	91,348
Long-term liabilities:
Revolving credit facility	197,796	197,796
Deferred tax liabilities	48,227	50,853
Deferred rent	5,648	5,037
Other liabilities	2,814	2,864
Total long-term liabilities	254,485	256,550
Total liabilities	333,671	347,898
Commitments and contingencies (Note 8)
Stockholders' 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; 95,031,690 shares issued and 88,505,385 shares outstanding at March 31, 2015; 94,511,444 shares issued and 87,985,139 shares outstanding at December 31, 2014	948	943
Capital in excess of par value	320,189	313,214
Retained earnings	267,469	263,947
Treasury stock, at cost: 6,526,305 shares at March 31, 2015 and at December 31, 2014	-45,014	-45,014
Total stockholders' equity	543,592	533,090
Total liabilities and stockholders' equity	$877,263	$880,988

CONSOLIDATED_BALANCE_SHEETS_Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Mar. 31, 2015	Dec. 31, 2014
In Thousands, except Share data, unless otherwise specified
CONSOLIDATED BALANCE SHEETS
Accounts receivable, allowance for doubtful accounts (in dollars)	$1,478	$1,898
Accounts receivable, estimated allowance for appeals (in dollars)	$5,473	$4,824
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	95,031,690	94,511,444
Common stock, shares outstanding	88,505,385	87,985,139
Treasury stock, shares	6,526,305	6,526,305

CONSOLIDATED_STATEMENTS_OF_COM

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $)	3 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Revenue	$110,324	$104,707
Cost of services:
Compensation	42,726	46,921
Data processing	10,045	9,224
Occupancy	4,007	3,960
Direct project costs	10,478	7,673
Other operating costs	6,738	5,483
Amortization of acquisition related software and intangible assets	7,047	7,160
Total cost of services	81,041	80,421
Selling, general and administrative expenses	21,302	16,489
Total operating expenses	102,343	96,910
Operating income	7,981	7,797
Interest expense	-1,954	-2,079
Interest income	11	24
Income before income taxes	6,038	5,742
Income taxes	2,516	2,389
Net income and comprehensive income	$3,522	$3,353
Basic income per common share:
Net income per common share-basic (in dollars per share)	$0.04	$0.04
Diluted income per common share
Net income per common share-diluted (in dollars per share)	$0.04	$0.04
Weighted average shares
Basic (in shares)	88,246	87,436
Diluted (in shares)	88,624	87,935

CONSOLIDATED_STATEMENTS_OF_STO

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $)	Common Stock	Capital in Excess of Par Value	Retained Earnings	Treasury Stock	Total
In Thousands, except Share data, unless otherwise specified
Balance at Dec. 31, 2014	$943	$313,214	$263,947	($45,014)	$533,090
Balance (in shares) at Dec. 31, 2014	94,511,444			6,526,305
Increase (Decrease) in Stockholders' Equity
Net income and comprehensive income			3,522		3,522
Stock-based compensation expense		3,245			3,245
Exercise of stock options	4	3,269			3,273
Exercise of stock options (in shares)	442,585
Vesting of restricted stock awards and units, net of shares withheld for employee tax	1	-597			-596
Vesting of restricted stock awards and units, net of shares withheld for employee tax (in shares)	77,661
Excess tax benefit from exercise of stock options		1,448			1,448
Shortfall due to exercise of stock options and vesting of restricted stock units		-310			-310
Deferred tax asset reversal for unexercised stock options		-80			-80
Balance at Mar. 31, 2015	$948	$320,189	$267,469	($45,014)	$543,592
Balance (in shares) at Mar. 31, 2015	95,031,690			6,526,305

CONSOLIDATED_STATEMENTS_OF_CAS

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Operating activities:
Net income and comprehensive income	$3,522	$3,353
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization of property and equipment	8,163	8,003
Amortization of intangible assets	5,077	5,147
Amortization of deferred financing costs	521	521
Stock-based compensation expense	3,245	2,940
Excess tax benefit from exercised stock options	-1,448	-854
Deferred income taxes	-226	-967
Allowance for doubtful accounts and bad debt write-offs	229	-4,159
Loss on disposal of fixed assets	10
Change in fair value of contingent consideration		6
Changes in operating assets and liabilities
Accounts receivable	-10,205	-490
Prepaid expenses	-983	1,292
Prepaid income taxes	2,049	2,829
Other current assets	51	-42
Other assets	-147	-125
Accounts payable, accrued expenses and other liabilities	-10,772	-3,057
Estimated liability for appeals	819	6,927
Net cash provided by (used in) operating activities	-95	21,324
Investing activities:
Purchases of land, property and equipment	-2,513	-4,208
Investment in capitalized software	-721	-649
Net cash used in investing activities	-3,234	-4,857
Financing activities:
Repayment of revolving credit facility		-35,000
Proceeds from exercise of stock options	3,273	2,532
Excess tax benefit from exercised stock options	1,448	854
Payments of tax withholdings on behalf of employees for net-share settlement for restricted stock awards and units	-596	-1,088
Payments on capital lease obligations	-366	-413
Payments on contingent consideration		-428
Net cash provided by (used in) financing activities	3,759	-33,543
Net increase (decrease) in cash and cash equivalents	430	-17,076
Cash and cash equivalents at beginning of period	133,116	93,366
Cash and cash equivalents at end of period	133,546	76,290
Supplemental disclosure of cash flow information:
Cash paid for income taxes	656	419
Cash paid for interest	2,826	1,188
Supplemental disclosure of noncash activities:
Accrued property and equipment purchases	959	584
Decrease in appeals liability for lost appeals offset with a reduction in accounts receivable	$632	$13,772

Basis_of_Presentation

Basis of Presentation	3 Months Ended
	Mar. 31, 2015
Basis of Presentation
Basis of Presentation	1.Basis of Presentation
	The accompanying unaudited Consolidated Financial Statements of HMS Holdings Corp., its subsidiaries and its affiliates (“we,” “our” and “us”) have been prepared in accordance with United States Generally Accepted Accounting Principles (“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 financial position at March 31, 2015, the results of our operations for the three months ended March 31, 2015 and 2014 and cash flows for the three months ended March 31, 2015 and 2014. 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, 2014, which we refer to as our Annual Report. There have been no significant changes to our critical accounting policies since December 31, 2014.
	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, the disclosure of contingent 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.
	Certain reclassifications were made to prior period amounts to conform to the current period presentation.

Summary_of_Significant_Account

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2015
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies
	2.Summary of Significant Accounting Policies
	As of March 31, 2015, we have accrued an estimated liability for appeals and estimated allowance for appeals based on our historical experience with this activity under our customers’ contracts. Any future changes to any of our customer 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.
	Estimated liability for appeals and estimated allowance for appeals as of March 31, 2015 are as follows (in thousands):
	Balance, December 31, 2013		$	55,791
	Provision		16,822
	Appeals found in providers’ favor (1)		(30,990		)
	Balance, December 31, 2014		41,623		-2
	Provision		2,321
	Appeals found in providers’ favor (1)		(1,485		)
	Balance, March 31, 2015		$	42,459	-2
		-1		Includes appeals, closures or other adjustments.
		-2		Includes $5,473 and $4,824 related to estimated allowance for appeals that apply to uncollected accounts receivable as of March 31, 2015 and December 31, 2014, respectively.
	In the first quarter of 2015, within our estimated allowance for appeals found in favor of providers, $0.4 million was activity associated with our Medicare Recovery Audit Contractor (“RAC”) contract with the Centers for Medicare & Medicaid Services (“CMS”) resulting in an accounts receivable charge-off with CMS. In the first quarter of 2014, our estimated allowance for appeals found in favor of providers was $16.7 million, of which, $13.5 million was activity associated with our Medicare RAC contract resulting in an accounts receivable charge-off with CMS.
	Allowance for doubtful accounts as of March 31, 2015 is as follows (in thousands):
	Balance, December 31, 2013		$	916
	Provision		6,085
	Recoveries		(17		)
	Charge-offs		(5,086		)
	Balance, December 31, 2014		1,898
	Charge-offs and other		(420		)
	Balance, March 31, 2015		$	1,478
	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 or 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.
	Goodwill, representing the excess of acquisition costs over the fair value of assets and liabilities of acquired businesses, is subject to a periodic assessment for impairment in accordance with Accounting Standards Codification (“ASC”) 350—Intangibles, Goodwill and Other. We assess goodwill for impairment on an annual basis as of June 30 of each year or more frequently if an event occurs or changes in circumstances would more likely than not reduce the fair value of a reporting unit below its carrying amount. Our assessment of goodwill impairment is at the HMS Holdings Corp. entity level as we operate as a single reporting unit.
	We have the option to perform a qualitative assessment to determine if impairment is more likely than not to have occurred. If we can support the conclusion that it is more likely than not that the fair value of a reporting unit is greater than its carrying amount, then we would not need to perform the two-step impairment test for that reporting unit. If we cannot support such a conclusion, or we do not elect to perform the qualitative assessment, then the first step of the goodwill impairment test is used to identify potential impairment by comparing the fair value of a reporting unit with its carrying amount, including goodwill.
	There are no impairment charges related to goodwill for any of the periods presented.
	The carrying amounts for our cash equivalents, accounts receivable, accounts payable, accrued expenses and revolving credit facility approximate fair value.
	Recently Issued Accounting Pronouncements
	In May 2014, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update (“ASU”) that amends the FASB 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 on revenue recognition 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 such annual reporting periods. Early adoption 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 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 brings consistency to the accounting for share-based payment awards that require a specific performance target to be achieved in order for employees to become eligible to vest in the awards. Effective January 1, 2015, we adopted the provisions of ASU 2014-12. The adoption of this guidance did not have a material effect on our consolidated financial statements.
	In April 2015, FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs (“ASU 2015-03”). ASU 2015-03 simplifies the presentation of debt issuance costs by requiring that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by ASU 2015-03. ASU 2015-03 is effective for annual reporting periods beginning after December 15, 2015, including interim periods within such annual reporting periods with early adoption permitted. ASU 2015-03 is to be retrospectively adopted to each prior reporting period presented. We do not expect the adoption of this guidance to have a material effect on our consolidated financial statements.

Intangible_Assets

Intangible Assets	3 Months Ended
	Mar. 31, 2015
Intangible Assets
Intangible Assets	3.Intangible Assets
	Intangible assets consisted of the following at March 31, 2015 and December 31, 2014 (in thousands):
		Gross Value		Accumulated			Net Book		Useful
				Amortization			Value		Life
	March  31, 2015
	Customer relationships	$	102,755	$	(47,568	)	$	55,187	5-10 years
	Restrictive covenants	18,000		(12,309		)	5,691		3-7 years
	Trade name	17,000		(8,377		)	8,623		3-5 years
		$	137,755	$	(68,254	)	$	69,501
	December 31, 2014
	Customer relationships	$	102,755	$	(44,020	)	$	58,735	5-10 years
	Restrictive covenants	18,000		(11,394		)	6,606		3-7 years
	Trade name	17,000		(7,763		)	9,237		3-5 years
		$	137,755	$	(63,177	)	$	74,578
	Estimated amortization expense for intangible assets is expected to approximate the following (in thousands):
	Year Ending December 31,
	Remainder of 2015	$	15,193
	2016	19,933
	2017	16,613
	2018	15,993
	2019	1,582
	Thereafter	187
	For the three months ended March 31, 2015 and 2014, amortization expense related to intangible assets was $5.1 million and $5.2 million, respectively.

Income_Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2015
Income Taxes
Income Taxes	4.Income Taxes
	Our effective tax rate increased to 41.7% for the three months ended March 31, 2015 from41.6% for the three months ended March 31, 2014, primarily due to changes in state apportionments and permanent differences. The principal differences between the statutory rate and our effective rate are state taxes and permanent differences.
	During the three months ended March 31, 2015, we utilized $3.9 million in tax deductions arising from stock-based compensation, which resulted in an excess tax benefit of $1.4 million that was recorded to capital in excess of par value and an offsetting reduction to taxes payable.
	As of March 31, 2015 and 2014, the total amount of unrecognized tax benefits was approximately $1.4 million and $1.5 million, respectively (net of the federal benefit for state issues) that, if recognized, would favorably affect our future effective tax rate. As of March 31, 2015 and 2014, the accrued liability for interest expense and penalties related to unrecognized tax benefits was $0.3 million and $0.2 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 three months ended March 31, 2015 and 2014 was 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 2011. 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 State of New York.

Credit_Agreement

Credit Agreement	3 Months Ended
	Mar. 31, 2015
Credit Agreement
Credit Agreement
	5.Credit Agreement
	In May 2013, we entered into a $500 million five-year, amended and restated revolving credit agreement (“2013 Credit Agreement”) with certain financial institutions and Citibank, N.A. as Administrative Agent. No principal payments were made against our revolving credit facility during the three months ended March 31, 2015. During the three months ended March 31, 2014, we made principal payments of $35.0 million. The $197.8 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 amount available to borrow is based on certain borrowing base calculations found in our 2013 Credit Agreement. The 2013 Credit Agreement is collateralized by our assets.
	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. As of March 31, 2015, we were in compliance with all of the terms of the 2013 Credit Agreement.
	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 applicable interest rate was 2.26% at March 31, 2015.  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.
	The interest expense and the commitment fees on the unused portion of our revolving credit facility are as follows (in thousands):
		Three months ended
		March 31,
		2015		2014
	Interest expense	$	1,027	$	1,164
	Commitment fees	$	372	$	328
	At March 31, 2015 and December 31, 2014, the unamortized balance of deferred origination fees and debt issue costs were $6.4 million and $6.9 million, respectively. For the three months ended March 31, 2015 and 2014, we amortized $0.5 million and $0.5 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, the revolving credit facility 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 customer, we have an outstanding irrevocable letter of credit or Letter of Credit for $4.6 million, which we established against the revolving credit facility.

Earnings_per_Share

Earnings per Share	3 Months Ended
	Mar. 31, 2015
Earnings per Share
Earnings per Share
	6.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 dilutive common share equivalents consist of stock options and restricted stock awards and units.
	The following table reconciles the basic to diluted weighted average common shares outstanding using the treasury stock method (in thousands, except per share data):
	Basic and diluted
		Three months ended
		March 31,
		2015		2014
	Net income	$	3,522	$	3,353
	Weighted average common shares outstanding — basic	88,246		87,436
	Plus: net effect of dilutive stock options	181		336
	Plus: net effect of dilutive restricted stock awards and units	197		163
	Weighted average common shares outstanding —  diluted	88,624		87,935
	Income per common share —  basic	$	0.04	$	0.04
	Income per common share —  diluted	$	0.04	$	0.04
	For the three months ended March 31, 2015 and 2014, 2,940,897 and 1,434,314 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 March 31, 2015 and 2014, 71,192 and 25,541 restricted stock units, respectively, were not included in the diluted earnings per share calculation because the effect would have been anti-dilutive.

StockBased_Compensation

Stock-Based Compensation	3 Months Ended
	Mar. 31, 2015
Stock-Based Compensation
Stock-Based Compensation
	7.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 $3.2 million and $2.9 million for the three months ended March 31, 2015 and March 31, 2014, respectively.
	Stock Options
	Presented below is a summary of our stock option activity for the three months ended March 31, 2015 (in thousands, except for weighted average exercise price and weighted average remaining contractual terms):
		Shares		Weighted		Weighted	Aggregate
				Average		Average	Intrinsic
				Exercise		Remaining	Value
				Price		Contractual
						Terms
	Outstanding at December 31, 2014	4,101		$	18.72
	Granted	1,088		16.77
	Exercised	(443	)	7.4
	Forfeited	(295	)	23.03
	Expired	(25	)	24.48
	Outstanding at March 31, 2015	4,426		19.06		5.12	$	5,959
	Expected to vest at March 31, 2015	2,499		19.78		6.36	4
	Exercisable at March 31, 2015	1,871		$	18.06	3.42	$	5,955
	For awards subject to service-based vesting conditions, we recognize 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, we recognize 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 2014 and 2015 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.
	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 three months ended March 31, 2015 and 2014 was $5.89 and $6.88, 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:
		Three months ended
		March 31,
		2015		2014
	Expected dividend yield	—		—
	Risk-free interest rate	1.44%		1.65%
	Expected volatility	38.29%		37.08%
	Expected life	4.88 years		4.81 years
	During the three months ended March 31, 2015 and 2014, we issued 0.4 million shares and 0.3 million shares, respectively, of our common stock upon the exercise of outstanding stock options and received proceeds of $3.3 million and $2.5 million, respectively.
	For the three months ended March 31, 2015 and 2014, stock-based compensation expense for stock options was $1.4 million and approximately $1.9 million, respectively.
	We recognized excess income tax benefit of approximately $1.4 million and $0.9 million from the exercise of stock options in our unaudited Consolidated Statements of Comprehensive Income for the three months ended March 31, 2015 and 2014, respectively.
	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 optionees to exercise the options) for the three months ended March 31, 2015 and 2014 was approximately $5.4 million and $3.0 million, respectively.
	As of March 31, 2015, there was approximately $14.5 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 1.58 years.
	Restricted Stock Units
	Our non-employee members of our Board of Directors and certain employees have received restricted stock units under the Fourth Amended and Restated 2006 Stock Plan (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 March 31, 2015, we granted 589,497 restricted stock units with an aggregate fair market value of $9.9 million.
	For the three months ended March 31, 2015 and 2014, stock-based compensation expense for restricted stock units was $1.8 million and $1.0 million, respectively.
	At March 31, 2015, 1.3 million restricted stock units remained unvested and there was approximately $20.8 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 1.74 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 three months ended March 31, 2015 is as follows (in thousands, except for weighted average grant date fair value per unit):
		Number		Weighted
		of Units		Average
				Grant Date Fair
				Value per Unit
	Outstanding balance at December 31, 2014	910		$	22.84
	Granted	589		16.76
	Vesting of restricted stock units, net of shares withheld for taxes	(88	)	24.03
	Shares withheld for taxes	(35	)	24.03
	Forfeitures	(83	)	24.96
	Outstanding balance at March 31, 2015	1,293		$	19.82
	Restricted Stock Awards
	We did not issue restricted stock awards during the three months ended March 31, 2015. There was no stock-based compensation expense related to previously granted stock awards for the three months ended March 31, 2015. Stock-based compensation expense related to previously granted restricted stock units was $0.1 million for the three months ended March 31, 2014.

Commitments_and_Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2015
Commitments and Contingencies
Commitments and Contingencies
	8.Commitments and Contingencies
	Legal Proceedings
	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 customers 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 customer abrasion, negative marketplace perceptions and other disadvantageous results that could adversely affect our business, financial condition, results of operations and cash flows.
	Kern Health Systems: In August 2011, in the Superior Court of the State of California, County of Los Angeles, Kern Health Systems (“KHS” or “Plaintiff”) sought to recover in excess of $7.0 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 the 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 our acquisition of AMG. 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. Based on the jury’s verdict, we believe we are properly characterized as the prevailing party on the breach of contract claim. AMG has filed an appeal of the verdict and is seeking 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 have appealed 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 our counsel can assure litigation results. Pending the appeal process, we were required to obtain a surety bond in the amount of 150% of the final judgment amount, or approximately $2.2 million, which was collateralized by a cash deposit and is reflected in Other current assets on our unaudited Consolidated Balance Sheet at March 31, 2015.
	Dennis Demetre and Lori Lewis: In July 2012, two of AMG’s former owners, Dennis Demetre and Lori Lewis, filed an action in the Supreme Court of the State of New York, claiming an undetermined amount of damages alleging that various actions unlawfully deprived Demetre and Lewis of the acquisition earn-out portion of the purchase price of AMG under the applicable Stock Purchase Agreement (the “SPA”) and that we had breached certain contractual provisions under the SPA. Demetre and Lewis filed a second amended complaint with two causes of action for breach of contract. We filed a counter claim for breach of contract arising out of Demetre’s and Lewis’s failure to indemnify us for costs, including attorney fees arising out of our defense of the KHS action described above and for fraud arising out of Demetre’s and Lewis’s misrepresentations concerning capabilities of their software platform. This case continues in the discovery phase. We believe we have a meritorious defense and will continue to defend this matter vigorously, although there are risks and uncertainties related to any litigation.
	Restrictive Covenants and Trade Secret Actions in Texas and New York: We are the plaintiff in lawsuits filed in August 2014, entitled HMS Holdings Corp., et al. v. Public Consulting Group, Inc., James Gambino, and Jason Ramos, in the District Court of Dallas County, Texas, Cause No. DC-14-09047 (the “Texas Action”), and HMS Holdings Corp., et al. v. Matthew Arendt, Sean Curtin, and Danielle Lange, in the New York State Supreme Court, Albany County, Index No. A00754/2014 (the “New York Action”). These suits allege that, in the violation of their respective contractual, statutory and common law obligations to us, defendant Public Consulting Group, Inc. and defendants former HMS employees Gambino, Ramos, Arendt, Curtin and Lange unlawfully misappropriated our confidential, proprietary and trade secret information, as well as our employee and customer relationships. The lawsuits seek damages and injunctive relief and assert causes of action including breach of contract, breach of fiduciary duty and misappropriation of trade secrets. At the Texas Court’s direction, an agreed temporary restraining order was entered, under which, among other things, the defendants are prohibited from using our confidential information, and must return any of our information. There can be no assurances that this will be adequate to protect our confidential or trade secret information. Both the Texas and New York Actions are currently in the discovery phase. Additionally, we have sought injunctions in both the Texas and New York Actions. The defendants have claimed, among other things, that we are not entitled to such injunctive relief, and that certain information which we believe to be confidential and/or trade secret information is not entitled to protection. A decision on that issue has not yet been issued by either court. Additionally, we, through discovery in the lawsuits and forensic investigation, have uncovered what we believe to be the wrongful destruction of evidence by one or more defendants and have sought judicial relief. To date, this issue has not been decided. The Texas Court has set an initial trial date for March 2016.

Subsequent_Events

Subsequent Events	3 Months Ended
	Mar. 31, 2015
Subsequent Events
Subsequent Events	9.Subsequent Events
	In connection with the preparation of these unaudited Consolidated Financial Statements, an evaluation of subsequent events was performed through the date these unaudited Consolidated Financial Statements were issued and there are no other events that have occurred that would require adjustments to or disclosure in our unaudited Consolidated Financial Statements.

Summary_of_Significant_Account1

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2015
Summary of Significant Accounting Policies
Revenue Recognition And Estimated Liability And Allowance For Appeals And Doubtful Accounts
	As of March 31, 2015, we have accrued an estimated liability for appeals and estimated allowance for appeals based on our historical experience with this activity under our customers’ contracts. Any future changes to any of our customer 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.
	Estimated liability for appeals and estimated allowance for appeals as of March 31, 2015 are as follows (in thousands):
	Balance, December 31, 2013		$	55,791
	Provision		16,822
	Appeals found in providers’ favor (1)		(30,990		)
	Balance, December 31, 2014		41,623		-2
	Provision		2,321
	Appeals found in providers’ favor (1)		(1,485		)
	Balance, March 31, 2015		$	42,459	-2
		-1		Includes appeals, closures or other adjustments.
		-2		Includes $5,473 and $4,824 related to estimated allowance for appeals that apply to uncollected accounts receivable as of March 31, 2015 and December 31, 2014, respectively.
	In the first quarter of 2015, within our estimated allowance for appeals found in favor of providers, $0.4 million was activity associated with our Medicare Recovery Audit Contractor (“RAC”) contract with the Centers for Medicare & Medicaid Services (“CMS”) resulting in an accounts receivable charge-off with CMS. In the first quarter of 2014, our estimated allowance for appeals found in favor of providers was $16.7 million, of which, $13.5 million was activity associated with our Medicare RAC contract resulting in an accounts receivable charge-off with CMS.
	Allowance for doubtful accounts as of March 31, 2015 is as follows (in thousands):
	Balance, December 31, 2013		$	916
	Provision		6,085
	Recoveries		(17		)
	Charge-offs		(5,086		)
	Balance, December 31, 2014		1,898
	Charge-offs and other		(420		)
	Balance, March 31, 2015		$	1,478
Fair Value of Financial Instruments
	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 or 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.
	Goodwill, representing the excess of acquisition costs over the fair value of assets and liabilities of acquired businesses, is subject to a periodic assessment for impairment in accordance with Accounting Standards Codification (“ASC”) 350—Intangibles, Goodwill and Other. We assess goodwill for impairment on an annual basis as of June 30 of each year or more frequently if an event occurs or changes in circumstances would more likely than not reduce the fair value of a reporting unit below its carrying amount. Our assessment of goodwill impairment is at the HMS Holdings Corp. entity level as we operate as a single reporting unit.
	We have the option to perform a qualitative assessment to determine if impairment is more likely than not to have occurred. If we can support the conclusion that it is more likely than not that the fair value of a reporting unit is greater than its carrying amount, then we would not need to perform the two-step impairment test for that reporting unit. If we cannot support such a conclusion, or we do not elect to perform the qualitative assessment, then the first step of the goodwill impairment test is used to identify potential impairment by comparing the fair value of a reporting unit with its carrying amount, including goodwill.
	There are no impairment charges related to goodwill for any of the periods presented.
	The carrying amounts for our cash equivalents, accounts receivable, accounts payable, accrued expenses and revolving credit facility approximate fair value.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements
	In May 2014, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update (“ASU”) that amends the FASB 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 on revenue recognition 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 such annual reporting periods. Early adoption 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 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 brings consistency to the accounting for share-based payment awards that require a specific performance target to be achieved in order for employees to become eligible to vest in the awards. Effective January 1, 2015, we adopted the provisions of ASU 2014-12. The adoption of this guidance did not have a material effect on our consolidated financial statements.
	In April 2015, FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs (“ASU 2015-03”). ASU 2015-03 simplifies the presentation of debt issuance costs by requiring that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by ASU 2015-03. ASU 2015-03 is effective for annual reporting periods beginning after December 15, 2015, including interim periods within such annual reporting periods with early adoption permitted. ASU 2015-03 is to be retrospectively adopted to each prior reporting period presented. We do not expect the adoption of this guidance to have a material effect on our consolidated financial statements.

Summary_of_Significant_Account2

Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2015
Summary of Significant Accounting Policies
Schedule of estimated liability of appeals and estimated allowance for appeals, and allowances for doubtful accounts
	Estimated liability for appeals and estimated allowance for appeals as of March 31, 2015 are as follows (in thousands):
	Balance, December 31, 2013		$	55,791
	Provision		16,822
	Appeals found in providers’ favor (1)		(30,990		)
	Balance, December 31, 2014		41,623		-2
	Provision		2,321
	Appeals found in providers’ favor (1)		(1,485		)
	Balance, March 31, 2015		$	42,459	-2
		-1		Includes appeals, closures or other adjustments.
		-2		Includes $5,473 and $4,824 related to estimated allowance for appeals that apply to uncollected accounts receivable as of March 31, 2015 and December 31, 2014, respectively.
	Allowance for doubtful accounts as of March 31, 2015 is as follows (in thousands):
	Balance, December 31, 2013		$	916
	Provision		6,085
	Recoveries		(17		)
	Charge-offs		(5,086		)
	Balance, December 31, 2014		1,898
	Charge-offs and other		(420		)
	Balance, March 31, 2015		$	1,478

Intangible_Assets_Tables

Intangible Assets (Tables)	3 Months Ended
	Mar. 31, 2015
Intangible Assets
Summary of intangible assets	Intangible assets consisted of the following at March 31, 2015 and December 31, 2014 (in thousands):
		Gross Value		Accumulated			Net Book		Useful
				Amortization			Value		Life
	March  31, 2015
	Customer relationships	$	102,755	$	(47,568	)	$	55,187	5-10 years
	Restrictive covenants	18,000		(12,309		)	5,691		3-7 years
	Trade name	17,000		(8,377		)	8,623		3-5 years
		$	137,755	$	(68,254	)	$	69,501
	December 31, 2014
	Customer relationships	$	102,755	$	(44,020	)	$	58,735	5-10 years
	Restrictive covenants	18,000		(11,394		)	6,606		3-7 years
	Trade name	17,000		(7,763		)	9,237		3-5 years
		$	137,755	$	(63,177	)	$	74,578
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 2015	$	15,193
	2016	19,933
	2017	16,613
	2018	15,993
	2019	1,582
	Thereafter	187

Credit_Agreement_Tables

Credit Agreement (Tables)	3 Months Ended
	Mar. 31, 2015
Credit Agreement
Schedule of interest expense and commitment fees on unused portion of revolving credit facility	The interest expense and the commitment fees on the unused portion of our revolving credit facility are as follows (in thousands):
		Three months ended
		March 31,
		2015		2014
	Interest expense	$	1,027	$	1,164
	Commitment fees	$	372	$	328

Earnings_per_Share_Tables

Earnings per Share (Tables)	3 Months Ended
	Mar. 31, 2015
Earnings per Share
Schedule of basic and diluted earnings per share
	The following table reconciles the basic to diluted weighted average common shares outstanding using the treasury stock method (in thousands, except per share data):
		Three months ended
		March 31,
		2015		2014
	Net income	$	3,522	$	3,353
	Weighted average common shares outstanding — basic	88,246		87,436
	Plus: net effect of dilutive stock options	181		336
	Plus: net effect of dilutive restricted stock awards and units	197		163
	Weighted average common shares outstanding —  diluted	88,624		87,935
	Income per common share —  basic	$	0.04	$	0.04
	Income per common share —  diluted	$	0.04	$	0.04

StockBased_Compensation_Tables

Stock-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2015
Stock-Based Compensation
Summary of stock option activity	Presented below is a summary of our stock option activity for the three months ended March 31, 2015 (in thousands, except for weighted average exercise price and weighted average remaining contractual terms):
		Shares		Weighted		Weighted	Aggregate
				Average		Average	Intrinsic
				Exercise		Remaining	Value
				Price		Contractual
						Terms
	Outstanding at December 31, 2014	4,101		$	18.72
	Granted	1,088		16.77
	Exercised	(443	)	7.4
	Forfeited	(295	)	23.03
	Expired	(25	)	24.48
	Outstanding at March 31, 2015	4,426		19.06		5.12	$	5,959
	Expected to vest at March 31, 2015	2,499		19.78		6.36	4
	Exercisable at March 31, 2015	1,871		$	18.06	3.42	$	5,955
Schedule of weighted -average assumptions used for estimating fair value of each stock option grant on the date of grant
		Three months ended
		March 31,
		2015		2014
	Expected dividend yield	—		—
	Risk-free interest rate	1.44%		1.65%
	Expected volatility	38.29%		37.08%
	Expected life	4.88 years		4.81 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 three months ended March 31, 2015 is as follows (in thousands, except for weighted average grant date fair value per unit):
		Number		Weighted
		of Units		Average
				Grant Date Fair
				Value per Unit
	Outstanding balance at December 31, 2014	910		$	22.84
	Granted	589		16.76
	Vesting of restricted stock units, net of shares withheld for taxes	(88	)	24.03
	Shares withheld for taxes	(35	)	24.03
	Forfeitures	(83	)	24.96
	Outstanding balance at March 31, 2015	1,293		$	19.82

Summary_of_Significant_Account3

Summary of Significant Accounting Policies (Details) (USD $)	3 Months Ended			12 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015		Mar. 31, 2014	Dec. 31, 2014
Reconciliation of valuation and qualifying accounts
Estimated liability for appeals	$36,986			$36,799
Goodwill
Impairment of goodwill	0		0
Estimated liability for appeals and estimated allowance for appeals
Reconciliation of valuation and qualifying accounts
Balance at the beginning of the period	41,623	[1]	55,791	55,791
Provision	2,321			16,822
Appeals found in providers' favor	-1,485	[2]	16,700	-30,990	[2]
Balance at the end of the period	42,459	[1]		41,623	[1]
Estimated liability for appeals	5,473			4,824
Allowance for doubtful accounts
Reconciliation of valuation and qualifying accounts
Balance at the beginning of the period	1,898		916	916
Provision				6,085
Recoveries				-17
Charge-offs				-5,086
Charge-offs and other	-420
Balance at the end of the period	1,478			1,898
CMS | Estimated liability for appeals and estimated allowance for appeals
Reconciliation of valuation and qualifying accounts
Appeals found in providers' favor	$400		$13,500
[1]	Includes $5,473 and $4,824 related to estimated allowance for appeals that apply to uncollected accounts receivable as of March 31, 2015 and December 31, 2014, respectively.
[2]	Includes appeals, closures or other adjustments.

Intangible_Assets_Details

Intangible Assets (Details) (USD $)	3 Months Ended		12 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Intangible assets
Intangible assets, gross	$137,755		137,755
Less: Accumulated amortization	-68,254		-63,177
Intangible assets, net	69,501		74,578
Amortization of intangibles
Remainder of 2015	15,193
2016	19,933
2017	16,613
2018	15,993
2019	1,582
Thereafter	187
Amortization expense	5,077	5,147
Customer Relationships
Intangible assets
Intangible assets, gross	102,755		102,755
Less: Accumulated amortization	-47,568		-44,020
Intangible assets, net	55,187		58,735
Restrictive Covenant
Intangible assets
Intangible assets, gross	18,000		18,000
Less: Accumulated amortization	-12,309		-11,394
Intangible assets, net	5,691		6,606
Trade Names
Intangible assets
Intangible assets, gross	17,000		17,000
Less: Accumulated amortization	-8,377		-7,763
Intangible assets, net	$8,623		9,237
Minimum | Customer Relationships
Intangible assets
Useful Life	5 years		5 years
Minimum | Restrictive Covenant
Intangible assets
Useful Life	3 years		3 years
Minimum | Trade Names
Intangible assets
Useful Life	3 years		3 years
Maximum | Customer Relationships
Intangible assets
Useful Life	10 years		10 years
Maximum | Restrictive Covenant
Intangible assets
Useful Life	7 years		7 years
Maximum | Trade Names
Intangible assets
Useful Life	5 years		5 years

Income_Taxes_Details

Income Taxes (Details) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Income Taxes
Effective income tax rate (as a percent)	41.70%	41.60%
Excess tax benefit from exercise of stock options	$1,448,000
Tax deductions arising from stock-based compensation	3,900,000
Net unrecognized tax benefits	1,400,000	1,500,000
Accrued liabilities for interest expense and penalties related to unrecognized tax benefits	$300,000	$200,000

Credit_Agreement_Details

Credit Agreement (Details) (USD $)	3 Months Ended		1 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	31-May-13	Dec. 31, 2014
Credit agreement
Repayment of revolving credit facility		$35,000,000
Revolving credit facility	197,796,000			197,796,000
Unamortized balance of deferred origination fees and debt issue costs	6,400,000	6,900,000
Amortization of financing cost	521,000	521,000
Irrevocable letter of credit or Letter of Credit outstanding	4,600,000
2013 Credit Agreement
Credit agreement
Principal borrowing capacity			500,000,000
Period of revolving credit facility			5 years
Amount of incremental credit facilities under specified circumstances			75,000,000
Reduction period of maximum consolidated leverage ratio			5 years
Line of Credit Facility, Covenant Compliance	As of March 31, 2015, we were in compliance with all of the terms of the 2013 Credit Agreement.
Minimum | 2013 Credit Agreement
Credit agreement
Additional amount of incremental credit facilities under specified circumstances			25,000,000
Minimum interest coverage ratio			3
Maximum | 2013 Credit Agreement
Credit agreement
Secured leverage ratio			2.5
Consolidated leverage ratio before reduction			3.5
Maximum consolidated leverage ratio			3.25
Revolving credit facility
Credit agreement
Repayment of revolving credit facility	0	35,000,000
Revolving credit facility	197,800,000
Interest expense	1,027,000	1,164,000
Commitment fees	372,000	328,000
Revolving credit facility | 2013 Credit Agreement
Credit agreement
Principal borrowing capacity			$500,000,000
Number of incremental term loan facilities that may be added	1
Interest rate of debts	2.26%
Revolving credit facility | Minimum | 2013 Credit Agreement
Credit agreement
Unused commitment fee on the revolving credit facility of the credit agreement (as a percent)			0.38%
Revolving credit facility | Maximum | 2013 Credit Agreement
Credit agreement
Unused commitment fee on the revolving credit facility of the credit agreement (as a percent)			0.50%
Revolving credit facility | LIBOR Rate | 2013 Credit Agreement
Credit agreement
Interest rate of debts			LIBOR
Revolving credit facility | LIBOR Rate | Minimum | 2013 Credit Agreement
Credit agreement
Interest rate margin (as a percent)			1.50%
Revolving credit facility | LIBOR Rate | Maximum | 2013 Credit Agreement
Credit agreement
Interest rate margin (as a percent)			2.25%
Revolving credit facility | Base rate | 2013 Credit Agreement
Credit agreement
Interest rate of debts			base rate
Revolving credit facility | Prime rate | 2013 Credit Agreement
Credit agreement
Interest rate of debts			prime rate
Revolving credit facility | Federal fund rate | 2013 Credit Agreement
Credit agreement
Interest rate of debts			federal funds
Interest rate margin (as a percent)			0.50%
Revolving credit facility | One month LIBOR rate | 2013 Credit Agreement
Credit agreement
Interest rate of debts			one-month LIBOR
Interest rate margin (as a percent)			1.00%
Revolving credit facility | One month LIBOR rate | Minimum | 2013 Credit Agreement
Credit agreement
Interest rate margin (as a percent)			0.50%
Revolving credit facility | One month LIBOR rate | Maximum | 2013 Credit Agreement
Credit agreement
Interest rate margin (as a percent)			1.25%

Earnings_per_share_Details

Earnings per share (Details) (USD $)	3 Months Ended
In Thousands, except Share data, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Computation of basic and diluted earnings per share
Net income	$3,522	$3,353
Weighted average common shares outstanding - basic	88,246,000	87,436,000
Plus: net effect of dilutive stock options	181,000	336,000
Plus: net effect of dilutive restricted stock awards and units	197,000	163,000
Weighted average common shares outstanding, diluted (in shares)	88,624,000	87,935,000
Net income per common share-basic (in dollars per share)	$0.04	$0.04
Net income per common share-diluted (in dollars per share)	$0.04	$0.04
Stock Options
Computation of basic and diluted earnings per share
Anti-dilutive securities excluded from diluted earnings per share calculations (in shares)	2,940,897	1,434,314
Restricted Stock Units
Computation of basic and diluted earnings per share
Anti-dilutive securities excluded from diluted earnings per share calculations (in shares)	71,192	25,541

StockBased_Compensation_Detail

Stock-Based Compensation (Details) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Stock-Based Compensation
Stock-based compensation expense recognized related to stock compensation plans	$3,200,000	$2,900,000
Assumptions used to determine fair value of options granted
Weighted-average grant-date fair value per share of the stock options granted	$5.89	$6.88
Additional disclosures
Proceeds from exercise of stock options	3,273,000	2,532,000
Tax benefit from exercise of stock options	1,448,000
Stock options
Stock-Based Compensation
Stock-based compensation expense recognized related to stock compensation plans	1,400,000	1,900,000
Stock option activity
Options outstanding at the beginning of the period (in shares)	4,101,000
Granted (in shares)	1,088,000
Exercised (in shares)	-443,000	-300,000
Forfeitures (in shares)	-295,000
Expired (in shares)	-25,000
Options outstanding at the end of the period (in shares)	4,426,000
Options expected to vest at the end of the period (in shares)	2,499,000
Options exercisable at the end of the period (in shares)	1,871,000
Stock options, Weighted Average Exercise Price
Options outstanding at the beginning of the period (in dollars per share)	$18.72
Granted (in dollars per share)	$16.77
Exercised (in dollars per share)	$7.40
Forfeitures (in dollars per share)	$23.03
Expired (in dollars per shares)	$24.48
Options outstanding at the end of the period (in dollars per share)	$19.06
Options expected to vest at the end of the period (in dollars per share)	$19.78
Options exercisable at the end of the period (in dollars per share)	$18.06
Stock options, Weighted Average Remaining Contractual Terms
Options outstanding at the end of the period	5 years 1 month 13 days
Options expected to vest at the end of the period	6 years 4 months 10 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	5,959,000
Options expected to vest at the end of the period	4,000
Options exercisable at the end of the period	5,955,000
Assumptions used to determine fair value of options granted
Risk-free interest rate (as a percent)	1.44%	1.65%
Expected volatility (as a percent)	38.29%	37.08%
Expected life	4 years 10 months 17 days	4 years 9 months 22 days
Additional disclosures
Proceeds from exercise of stock options	3,300,000	2,500,000
Tax benefit from exercise of stock options	1,400,000	900,000
Unrecognized stock-based compensation, stock options	14,500,000
Weighted-average period over which compensation will be recognized	1 year 6 months 29 days
Total intrinsic value of options exercised	5,400,000	3,000,000
Restricted Stock Units
Stock-Based Compensation
Stock-based compensation expense recognized related to stock compensation plans	1,800,000	1,000,000
Additional disclosures
Unrecognized stock-based compensation, restricted stock	20,800,000
Weighted-average period over which compensation will be recognized	1 year 8 months 27 days
Restricted Stock
Stock-Based Compensation
Stock-based compensation expense recognized related to stock compensation plans	$0	$100,000

StockBased_Compensation_Detail1

Stock-Based Compensation (Details 2) (USD $)	3 Months Ended
In Millions, except Share data, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Stock-Based Compensation
Recognized stock-based compensation expense	$3.20	$2.90
Restricted Stock Units
Stock-Based Compensation
Granted, aggregate fair market value	9.9
Outstanding equity instruments other than options (in shares)	1,300,000
Recognized stock-based compensation expense	1.8	1
Unrecognized stock-based compensation, restricted stock	20.8
Weighted-average period over which compensation will be recognized	1 year 8 months 27 days
Restricted stock units and restricted stock awards
Outstanding, beginning balance (in units or shares)	910,000
Granted (in shares)	589,497
Vesting of restricted stock units, net of shares withheld for taxes (in shares)	-88,000
Shares withheld for taxes	-35,000
Forfeitures (in shares)	-83,000
Outstanding, ending balance (in units or shares)	1,293,000
Restricted stock units and restricted stock awards, Weighted Average Grant Date Fair Value
Outstanding, beginning balance (in dollars per unit or share)	$22.84
Granted (in dollars per share)	$16.76
Vesting of restricted stock units, net of shares withheld for taxes (in dollars per unit or share)	$24.03
Shares withheld for taxes (in dollars per share)	$24.03
Forfeitures (in dollars per unit or share)	$24.96
Outstanding, ending balance (in dollars per unit or share)	$19.82
Restricted Stock
Stock-Based Compensation
Recognized stock-based compensation expense	$0	$0.10

Commitment_and_Contingencies_D

Commitment and Contingencies (Details) (USD $)	0 Months Ended	3 Months Ended
In Millions, unless otherwise specified	Jun. 09, 2014	Mar. 31, 2015
Loss Contingencies [Line Items]
Irrevocable letter of credit or Letter of Credit outstanding		$4.60
Subsidiaries
Loss Contingencies [Line Items]
Loss contingency damages awarded, value	1.38
Subsidiaries | Surety Bond
Loss Contingencies [Line Items]
Surety bond amount required, percent of judgment		150.00%
Cash collateral		2.2
Subsidiaries | Appeal filed to recover attorney fees and costs
Loss Contingencies [Line Items]
Loss Contingency damages Sought, Value		2.3
Minimum | Subsidiaries
Loss Contingencies [Line Items]
Loss Contingency damages Sought, Value		$7