HMS (HMSY) 10-K 29 Feb 16 2015 FY Annual report Financial data

Document And Entity Information

Document And Entity Information - USD ($) $ in Billions	12 Months Ended
	Dec. 31, 2015	Feb. 25, 2016	Jun. 30, 2015
Entity Registrant Name	HMS HOLDINGS CORP
Entity Central Index Key	1,196,501
Trading Symbol	hmsy
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	Yes
Entity Common Stock, Shares Outstanding (in shares)		84,005,986
Entity Public Float			$ 1.5
Document Type	10-K
Document Period End Date	Dec. 31, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	FY
Amendment Flag	false

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 145,610	$ 133,116
Accounts receivable, net of allowance for doubtful accounts of $4,849 and $4,535, respectively and estimated allowance for appeals of $6,614 and $4,824, at December 31, 2015 and 2014, respectively	169,146	157,101
Prepaid expenses	$ 11,261	11,810
Prepaid income taxes		5,142
Deferred income taxes	$ 7,460	7,811
Other current assets	3,051	2,639
Total current assets	336,528	317,619
Property and equipment, net	96,551	116,027
Goodwill	361,468	361,468
Intangible assets, net	54,308	74,578
Deferred tax assets	4,873	6,957
Other assets	4,329	4,339
Total assets	858,057	880,988
Current liabilities:
Accounts payable, accrued expenses and other liabilities	51,661	54,549
Estimated liability for appeals	33,078	$ 36,799
Income taxes payable	3,873
Total current liabilities	88,612	$ 91,348
Long-term liabilities:
Revolving credit facility	197,796	197,796
Deferred tax liabilities	38,421	50,853
Deferred rent	6,006	5,037
Other liabilities	2,520	2,864
Total long-term liabilities	244,743	256,550
Total liabilities	$ 333,355	$ 347,898
Commitments and contingencies (Note 13)
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; 95,263,461 shares issued and 83,989,715 shares outstanding at December 31, 2015; 94,511,444 shares issued and 87,985,139 shares outstanding at December 31, 2014	$ 952	$ 943
Capital in excess of par value	330,290	313,214
Retained earnings	288,474	263,947
Treasury stock, at cost: 11,273,746 and 6,526,305 shares at December 31, 2015 and 2014, respectively	(95,014)	(45,014)
Total shareholders' equity	524,702	533,090
Total liabilities and shareholders' equity	$ 858,057	$ 880,988

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Accounts receivable, allowance for doubtful accounts	$ 4,849	$ 4,535
Accounts receivable, allowance for appeals	$ 6,614	$ 4,824
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	5,000,000	5,000,000
Preferred stock, shares issued (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	125,000,000	125,000,000
Common stock, shares issued (in shares)	95,263,461	94,511,444
Common stock, shares outstanding (in shares)	83,989,715	87,985,139
Treasury stock, shares (in shares)	11,273,746	6,526,305

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Revenue	$ 474,216	$ 443,225	$ 491,762
Cost of services:
Compensation	178,272	181,273	190,324
Data processing	40,915	39,661	37,115
Occupancy	15,766	16,950	18,397
Direct project expenses	51,527	36,866	45,382
Other operating expenses	28,895	24,588	26,491
Amortization of acquisition related software and intangible assets	28,148	28,612	31,747
Total cost of services	343,523	327,950	349,456
Selling, general and administrative expenses	83,121	81,071	65,128
Total operating expenses	426,644	409,021	414,584
Operating income	47,572	34,204	77,178
Interest expense	(7,812)	(7,931)	(12,460)
Interest income	$ 49	$ 57	71
Other income, net			801
Income before income taxes	$ 39,809	$ 26,330	65,590
Income taxes	15,282	12,383	25,593
Net income	$ 24,527	$ 13,947	$ 39,997
Basic income per common share:
Net income per common share -- basic (in dollars per share)	$ 0.28	$ 0.16	$ 0.46
Diluted income per common share:
Net income per common share -- diluted (in dollars per share)	$ 0.28	$ 0.16	$ 0.45
Weighted average shares:
Basic (in shares)	87,881	87,673	87,598
Diluted (in shares)	88,361	88,164	88,344

Consolidated Statements of Shar

Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Treasury Stock [Member]	Total
Balance (in shares) at Dec. 31, 2012	92,374,539			5,424,847
Balance at Dec. 31, 2012	$ 923	$ 271,962	$ 210,003	$ (20,014)	$ 462,874
Net income			39,997		39,997
Stock-based compensation expense		11,997			11,997
Total Number of Shares Purchased (in shares)				1,101,458
Purchase of treasury stock				$ (25,000)	$ (25,000)
Exercise of stock options (in shares)	1,305,538				1,305,538
Exercise of stock options	$ 12	9,248			$ 9,260
Vesting of restricted stock awards and units, net of shares withheld for employee tax (in shares)	146,376
Vesting of restricted stock awards and units, net of shares withheld for employee tax	$ 1	(1,923)			(1,922)
Excess tax benefit from exercise of stock options		5,233			5,233
Balance (in shares) at Dec. 31, 2013	93,826,453			6,526,305
Balance at Dec. 31, 2013	$ 936	296,517	250,000	$ (45,014)	502,439
Net income			13,947		13,947
Stock-based compensation expense		13,356			$ 13,356
Exercise of stock options (in shares)	516,552				516,552
Exercise of stock options	$ 5	4,105			$ 4,110
Vesting of restricted stock awards and units, net of shares withheld for employee tax (in shares)	168,439
Vesting of restricted stock awards and units, net of shares withheld for employee tax	$ 2	(1,660)			(1,658)
Excess tax benefit from exercise of stock options		1,795			1,795
Balance (in shares) at Dec. 31, 2014	94,511,444			6,526,305
Balance at Dec. 31, 2014	$ 943	313,214	263,947	$ (45,014)	533,090
Shortfall due to exercise of stock options		(323)			(323)
Deferred tax asset reversal for unexercised stock options		(576)			(576)
Net income			24,527		24,527
Stock-based compensation expense		14,297			14,297
Total Number of Shares Purchased (in shares)				4,747,441
Purchase of treasury stock				$ (50,000)	$ (50,000)
Exercise of stock options (in shares)	577,559				577,559
Exercise of stock options	$ 7	4,180			$ 4,187
Vesting of restricted stock awards and units, net of shares withheld for employee tax (in shares)	174,458
Vesting of restricted stock awards and units, net of shares withheld for employee tax	$ 2	(1,031)			(1,029)
Excess tax benefit from exercise of stock options		1,569			1,569
Balance (in shares) at Dec. 31, 2015	95,263,461			11,273,746
Balance at Dec. 31, 2015	$ 952	330,290	$ 288,474	$ (95,014)	524,702
Shortfall due to exercise of stock options		(827)			(827)
Deferred tax asset reversal for unexercised stock options		$ (1,112)			$ (1,112)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Operating activities:
Net income	$ 24,527	$ 13,947	$ 39,997
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of property and equipment	30,328	32,864	31,360
Amortization of intangible assets	20,270	20,734	23,631
Amortization of deferred financing costs	2,084	2,084	3,077
Stock-based compensation expense	14,297	13,356	11,997
Excess tax benefit from exercised stock options	(1,569)	(1,795)	(5,233)
Deferred income taxes	(14,020)	(12,290)	(4,354)
Loss on disposal of fixed assets	$ 84	219	431
Change in fair value of contingent consideration		(517)	35
Changes in operating assets and liabilities:
Accounts receivable	$ (12,045)	14,625	(14,956)
Prepaid expenses	549	1,132	1,341
Prepaid income taxes	6,711	3,445	(1,559)
Other current assets	(412)	(2,150)	(172)
Other assets	10	$ 121	$ 28
Income taxes payable	3,873
Accounts payable, accrued expenses and other liabilities	(250)	$ 18,039	$ 1,050
Estimated liability for appeals	(3,721)	(5,053)	14,508
Net cash provided by operating activities	70,716	98,761	101,181
Investing activities:
Purchases of land, property and equipment	(8,620)	(22,687)	(22,127)
Investment in capitalized software	$ (3,197)	$ (3,514)	(3,656)
Investment in common stock			(500)
Net cash used in investing activities	$ (11,817)	$ (26,201)	(26,283)
Financing activities:
Repayment of revolving credit facility		(35,000)	(95,000)
Proceeds from exercise of stock options	$ 4,187	4,110	9,260
Excess tax benefit from exercised stock options	1,569	1,795	5,233
Payments of tax withholdings on behalf of employees for net-share settlement for stock-based compensation	(1,029)	(1,658)	(1,922)
Payments on capital lease obligations	$ (1,132)	(1,629)	$ (1,711)
Payments on contingent consideration		$ (428)
Purchases of treasury stock	$ (50,000)		$ (25,000)
Repayment of term loan			(8,750)
Proceeds from revolving credit facility			4,046
Payment of financing fees related to revolving credit facility			(2,915)
Net cash used in financing activities	$ (46,405)	$ (32,810)	(116,759)
Net increase (decrease) in cash and cash equivalents	12,494	39,750	(41,861)
Cash and cash equivalents at beginning of year	133,116	93,366	135,227
Cash and cash equivalents at end of year	145,610	133,116	93,366
Supplemental disclosure of cash flow information:
Cash paid for income taxes	22,878	21,144	34,922
Cash paid for interest	5,694	4,458	9,520
Supplemental disclosure of noncash activities:
Accrued property and equipment purchases	$ 729	1,610	1,725
Equipment purchased through capital leases		$ 20	$ 2,401

Note 1 - Organization and Busin

Note 1 - Organization and Business	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]	1. Organization and Business HMS Holdings Corp, (the “Company” or “HMS”) provides coordination of benefits services to government and private healthcare payers and sponsors to ensure that the responsible party pays healthcare claims. Additionally, the Company’s payment integrity services ensure that healthcare claims billed are accurate and appropriate. Together, these various services help customers recover amounts from liable third parties; prevent future improper payments; reduce fraud, waste and abuse; and ensure regulatory compliance. The Company has grown both organically and through targeted acquisitions. Initially, the Company provided coordination of benefits services to state Medicaid agencies, then expanded its business by providing similar services to managed care organizations when Medicaid began designating members to those plans. After launching payment integrity services in 2007, HMS grew its product suite and expanded its reach in the marketplace by acquiring IntegriGuard, LLC (2009), Verify Solutions, Inc. (2009), Chapman Kelly, Inc. (2010), HealthDataInsights, Inc. (“HDI”) (2011) and MedRecovery Management, LLC (2012). HMS is incorporated in the State of Delaware. The Company was originally incorporated on October 2, 2002 in the State of New York. On March 3, 2003, the Company adopted a holding company structure and assumed the business of the Company’s predecessor, Health Management Systems, Inc. In connection with the adoption of this structure, Health Management Systems, Inc. which began doing business in 1974, became the Company’s wholly owned subsidiary. HMS is managed and operated as one business, with a single management team that reports to the Chief Executive Officer. HMS does not operate separate lines of business with respect to any of the Company’s product lines.

Note 2 - Summary of Significant

Note 2 - Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Significant Accounting Policies [Text Block]	2. Summary of Significant Accounting Policies (a) Principles of Consolidation The consolidated financial statements include the Company’s accounts and transactions and those of the Company’s wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. (b) Use of Estimates The preparation of the consolidated financial statements in conformity with United States generally accepted accounting principles (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. (c) Reclassifications Certain reclassifications were made to prior year amounts to conform to the current period presentation. (d) Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. Cash equivalents consist of deposits that are readily convertible into cash. (e) Concentration of Credit Risk Financial instruments (principally cash and cash equivalents, accounts receivable, accounts payable and accrued expenses) are carried at cost, which approximates fair value due to the short-term maturity of these instruments. The Company’s long-term debt or revolving credit facility is carried at cost. Due to the variable interest rate associated with the revolving credit facility and the variable interest margin based upon the Company’s consolidated leverage ratio, the fair value of the credit facility approximates its carrying value. The Company’s policy is to limit credit exposure by placing cash in accounts which are exposed to minimal interest rate and credit risk. HMS maintains cash in cash depository accounts, U.S. Treasuries, and money market mutual funds with large financial institutions with a minimum credit rating of A1/P1 or better, as defined by Standard and Poor’s. The balance at these institutions generally exceeds the maximum balance insured by the Federal Deposit Insurance Corporation of up to $250,000 per entity. HMS has not experienced any losses on the bank deposits and believes these deposits do not expose the Company to any significant credit risk. The Company is subject to potential credit risk related to changes in economic conditions within the healthcare market. However, HMS believes that the billing and collection policies are adequate to minimize the potential credit risk. The Company performs ongoing credit evaluations of customers and generally does not require collateral. HMS has no history of significant losses from uncollectible accounts. (f) Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Depreciation is provided over the estimated useful lives of the assets utilizing the straight-line method. HMS amortizes leasehold improvements on a straight-line basis over the term of the related lease, including any anticipated renewal periods, or the life of the leasehold improvement, whichever is shorter. Equipment leased under capital leases is depreciated over the shorter of (i) the term of the lease and (ii) the estimated useful life of the equipment. The depreciation expense on assets acquired under capital leases is in selling, general and administrative expense (“SG&A”). Estimated useful lives are as follows: Equipment (in years) 2 — 3 Leasehold improvements (in years) 3 — 10 Furniture and fixtures (in years) 3 — 5 Building and building improvements (in years) up to 39.5 (g) Software and Software Development Cost Software development costs related to software that is acquired or developed for internal use while in the application development stage are capitalized. All other costs to develop software for internal use, either in the preliminary project stage or post-implementation stage, are expensed as incurred. Amortization of software and software development costs is calculated on a straight-line basis over the expected economic life, generally estimated to be 5 to 10 years. (h) Goodwill Goodwill is 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 The Company has the option to perform a qualitative assessment to determine if impairment is more likely than not to have occurred. If the Company 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 HMS would not need to perform the two-step impairment test for that reporting unit. If the Company cannot support such a conclusion, or the Company does 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. HMS completed the annual impairment test as of June 30, 2015 and determined no impairment existed. The result of the annual impairment test indicated that the fair value of the reporting unit is significantly in excess of its carrying value. There were no impairment charges related to goodwill during the fiscal years ended December 31, 2015, 2014 or 2013. (i) Long-Lived Assets Long-lived assets, which include property and equipment and intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying value of its asset group to the estimated undiscounted future net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying value of the asset group exceeds the fair value of the assets, which amount is charged to earnings. Fair value is based on a projection of the estimated discounted future net cash flows expected to result from the asset group, using a discount rate reflective of the Company’s cost of funds. The Company did not recognize any impairment charges related to the long-lived assets, property and equipment intangible assets, during the years ended December 31, 2015, 2014 or 2013, as management believes that carrying amounts were not impaired. (j) Acquisition Accounting The Company assign values to assets acquired and liabilities assumed based upon their fair value. In most instances there is not a readily defined or listed market price for individual assets and liabilities acquired in connection with a business, including intangible assets. The determination of fair value for individual assets and liabilities in many instances requires a high degree of estimation. The valuation of intangible assets, in particular, is very subjective. The use of different valuation techniques and assumptions could change the amounts and useful lives assigned to the assets and liabilities acquired, including goodwill and other intangible assets and related amortization expense. (k) Income Taxes Income taxes are accounted for under the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. This method also requires the recognition of future tax benefits for net operating loss carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized as income in the period that includes the enactment date. A valuation allowance is provided against deferred tax assets to the extent their realization is not more likely than not. Uncertain income tax positions are accounted for by prescribing a minimum recognition threshold that a tax position is required to meet before being recognized in the financial statements. (l) Revenue Recognition and Estimated Liability for Appeals The Company provides services under contracts that contain various fee structures, including contingency fee and fixed fee arrangements. Revenue is recognized when a contract exists, services have been provided to the customer, the fee is fixed and determinable, and collectability is reasonably assured. In addition, the Company has contracts with the federal government which are generally cost-plus or time and material based. Revenue on cost-plus contracts is recognized based on costs incurred plus the negotiated fee earned. Revenue on time and materials contracts is recognized based on hours worked and expenses incurred. Under the Company’s Medicare Recovery Audit Contractor (“RAC”) contract with the Centers for Medicare & Medicaid Services (“CMS”), the Medicaid RAC contracts with various states, and similar contracts for private health plan customers, HMS recognizes revenue when claims are sent to the customer for offset against future claims payments. Providers have the right to appeal a claim and may pursue additional appeals if the initial appeal is found in favor of the customer. HMS accrues an estimated liability for appeals based on the amount of revenue that is subject to appeals, closures or other adjustments and which HMS estimate are probable of being returned to providers following a successful appeal. This estimated liability for appeals is an offset to revenue in the Company’s Consolidated Statements of Income. The Company’s estimates are based on the Company’s historical experience with appeals. The estimated liability for appeals of $33.1 million and $36.8 million as of December 31, 2015 and 2014, respectively, represents the Company’s estimate of the potential amount of repayments related to appeals of claims, closures and other adjustments for which revenue was previously collected. This is reflected as a separate line item in the current liabilities section of the balance sheet titled “Estimated liability for appeals.” To the extent the amount to be returned to providers following a successful appeal, closure or other adjustment exceeds the amount accrued, revenue in the applicable period would be reduced by the amount of the excess. As of December 31, 2015, HMS has an estimated liability for appeals and estimated allowance for appeals (which is an offset to accounts receivable) based on the Company’s historical experience with this activity under the Company’s customers’ contracts. Any future changes to any of the Company’s customer contracts, including further modifications to the transition plan for incumbent Medicare RACs may require the Company to apply different assumptions that could affect HMS’ estimated liability for future periods. The Company similarly accrues an allowance against accounts receivable related to revenue yet to be collected, based on the same estimates used to establish the estimated liability for appeals of revenue received. In addition, some of the Company’s contracts may include customer acceptance provisions. Formal customer sign-off is not always necessary to recognize revenue, provided HMS objectively demonstrates that the criteria specified in the acceptance provision are satisfied. Due to the range of products and services that HMS provides and the differing fee structures associated with each type of contract, revenue may be recognized in irregular increments. (m) Stock-Based Compensation The Company estimates the fair value of all stock awards granted using the Black-Scholes option pricing model for “non-performance-based” grants and Monte Carlo simulation is used for performance-based grants with certain market conditions. The determination of the fair value of the stock based awards on the grant date using the applicable option pricing model is affected by the Company’s stock price, as well as assumptions regarding a number of complex and subjective variables. These variables include the Company’s expected stock price volatility over the expected term of the awards, actual and projected option exercise experience, a risk-free interest rate and any expected dividends. The Company estimates the expected term of the options granted by calculated the average term from the Company’s historical option exercise experience and volatility of the common stock using historical volatility. The assumed risk-free interest rate is based on the yield on the measurement date of a zero-coupon U.S. Treasury bond with a maturity period equal to the option’s expected term. The Company does not anticipate paying any cash dividends in the foreseeable future and therefore uses an expected dividend yield of zero in the option valuation models. The Company estimates forfeitures at the time of grant and revises the forfeiture rate in subsequent periods if actual forfeitures differ from estimates. If actual forfeitures vary from estimates, a difference in compensation expense will be recognized in the period the actual forfeitures occur or at the time of vesting. The fair value of each award is determined and the compensation expense is recognized over the service period. Compensation expense reflects an estimate of the number of awards expected to vest after taking into consideration an estimate of award forfeitures based on actual experience. Upon the exercise of stock options or the vesting of restricted stock units and restricted stock awards, the resulting excess tax benefits, if any, are credited to additional paid-in capital. Any resulting tax deficiencies will first be offset against those cumulative credits to additional paid-in capital. If the cumulative credits to additional paid-in capital are exhausted, tax deficiencies will be recorded to the provision for income taxes. Excess tax benefits are required to be reflected as financing cash inflows in the accompanying Consolidated Statements of Cash Flows. (n) Fair Value of Financial Instruments The Company had no financial assets or liabilities measured at fair value was of December 31, 2015 and 2014. However, if HMS opted to measure financial assets and liabilities at fair value in the future, the policy is to measure fair value based on valuation techniques using the best information available, which may include quoted market prices, market comparables and discounted cash flow projections. In general, and where applicable, quoted prices in active markets are used for identical assets to determine fair value. If quoted prices in active markets for identical assets are not available to determine fair value, then the Company uses quoted prices for similar assets and liabilities or inputs that are observable either directly or indirectly. If quoted prices for identical or similar assets are not available, the Company uses internally developed valuation models, whose inputs include bid prices, and third party valuations utilizing underlying asset assumptions. The fair values of the Company’s financial instruments reflect the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). In addition, the Financial Accounting Standards Board (the “FASB”), authoritative guidance requires disclosure of the fair value of financial instruments, both assets and liabilities recognized and not recognized in the statement of financial position, for which it is practicable to estimate fair value. The Company’s 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). HMS is not aware of any identified events or change in circumstances that would have a significant adverse effect on the carrying value of the cost method investments. Financial instruments recorded at fair value on the 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 carrying amounts of cash equivalents, accounts receivable, accounts payable and accrued expenses approximate fair value due to the short-term nature of their maturities. Due to the variable interest rate associated with the revolving credit facility and the variable interest margin based upon the Company’s consolidated leverage ratio, the fair value of the credit facility approximates its carrying value. (o) Leases HMS accounts for the lease agreements as either operating or capital leases, depending on certain defined criteria. Lease costs are amortized on a straight-line basis without regard to deferred payment terms, such as rent holidays, that defer the commencement date of required payments. Additionally, incentives such as tenant improvement allowances, are capitalized and are treated as a reduction of rental expense over the term of the lease agreement. (p) Recently Issued Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606 Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date In June 2014, the 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 In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements In April 2015, the FASB issued ASU 2015-05, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement In November 2015, the ASB issued ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) Other new pronouncements issued but not effective until after December 31, 2015 are not expected to have a material impact on our financial position, results of operations or liquidity.

Note 3 - Property and Equipment

Note 3 - Property and Equipment	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Property, Plant and Equipment Disclosure [Text Block]	3. Property and Equipment Property and equipment as of December 31, 2015 and 2014 consisted of the following ( in thousands December 31, 2015 2014 Equipment $ 90,496 $ 94,686 Leasehold improvements 8,512 9,194 Building 8,624 8,624 Building improvements 11,367 8,762 Land 2,769 2,769 Furniture and fixtures 10,858 12,107 Capitalized software 104,266 101,069 236,892 237,211 Less accumulated depreciation and amortization (140,341 ) (121,184 ) Property and equipment, net $ 96,551 $ 116,027 Depreciation and amortization expense related to property and equipment charged to operations for the years ended December 31, 2015, 2014 and 2013 was $30.3 million, $32.9 million and $31.4 million, respectively. Net capital leases included as part of equipment were approximately $51,000 and $1.2 million at December 31, 2015 and 2014, respectively. Accumulated depreciation for equipment under capital leases was approximately $6.0 million and $4.8 million for the years ended December 31, 2015 and 2014. Depreciation expense for equipment under capital leases for the years ended December 31, 2015, 2014 and 2013 was approximately $1.2 million, $1.6 million, and $1.7 million, respectively.

Note 4 - Intangible Assets

Note 4 - Intangible Assets	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Goodwill and Intangible Assets Disclosure [Text Block]	4. Intangible Assets Intangible assets consisted of the following as of December 31, 2015 and 2014 ( in thousands Gross Value Accumulated Net Book Useful Life December 31, 2015 Customer relationships $ 101,806 $ (57,497 ) $ 44,309 5 - 10 Restrictive covenants 16,800 (13,580 ) 3,220 3 - 7 Trade name 17,000 (10,221 ) 6,779 3 - 5 $ 135,606 $ (81,298 ) $ 54,308 December 31, 2014 Customer relationships $ 102,755 $ (44,020 ) $ 58,735 5 - 10 Restrictive covenants 18,000 (11,394 ) 6,606 3 - 7 Trade name 17,000 (7,763 ) 9,237 3 - 5 $ 137,755 $ (63,177 ) $ 74,578 Amortization expense of intangible assets is expected to approximate the following ( in thousands Year ending December 31, 2016 $ 19,934 2017 16,613 2018 15,992 2019 1,582 2020 187 Thereafter - For the years ended December 31, 2015, 2014 and 2013, amortization expense related to intangible assets was $20.3 million, $20.7 million and $23.6 million, respectively. There were no changes in the carrying amount of goodwill for the years ended December 31, 2015 and 2014.

Note 5 - Accounts Payable, Accr

Note 5 - Accounts Payable, Accrued Expenses and Other Liabilities	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Accounts Payable, Accrued Liabilities, and Other Liabilities Disclosure, Current [Text Block]	5. Accounts Payable, Accrued Expenses and Other Liabilities Accounts payable, accrued expenses and other liabilities as of December 31, 2015 and 2014 consisted of the following ( in thousands December 31, 2015 2014 Accounts payable, trade $ 7,790 $ 14,840 Accrued compensation 21,948 16,895 Accrued operating expenses 21,923 22,814 Total accounts payable, accrued expenses and other liabilities $ 51,661 $ 54,549

Note 6 - Income Taxes

Note 6 - Income Taxes	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Income Tax Disclosure [Text Block]	6. Income Taxes The income tax expense for the years ended December 31, 2015, 2014 and 2013 is as follows ( in thousands December 31, 2015 2014 2013 Current tax expense: Federal $ 25,852 $ 20,244 $ 25,211 State 3,450 4,429 4,736 29,302 24,673 29,947 Deferred tax expense (benefit): Federal (12,571 ) (12,421 ) (3,485 ) State (1,449 ) 131 (869 ) (14,020 ) (12,290 ) (4,354 ) Total income tax expense $ 15,282 $ 12,383 $ 25,593 A reconciliation of the income tax expense calculated using the applicable federal statutory rates to the actual income tax expense for the years ended December 31, 2015, 2014 and 2013 is as follows ( in thousands December 31, 2015 % 2014 % 2013 % Computed at federal statutory rate $ 13,934 35.0 $ 9,215 35.0 $ 22,946 35.0 State and local tax expense, net of federal benefit 1,038 2.6 2,973 11.3 2,448 3.7 Other, net 310 0.8 195 0.7 199 0.3 Total income tax expense $ 15,282 38.4 $ 12,383 47.0 $ 25,593 39.0 The Company’s effective tax rate decreased to 38.4% for the year ended December 31, 2015 from 47.0% for the year ended December 31, 2014, primarily due to a change in unitary state apportionments and permanent differences. The principal differences between the statutory rate and the Company’s effective rate are state taxes and permanent differences. Deferred income taxes are recognized for the future tax consequences of temporary differences between the financial statement and tax bases of assets and liabilities. The tax effect of temporary differences that give rise to a significant portion of the deferred tax assets and deferred tax liabilities at December 31, 2015 and 2014 were as follows ( in thousands December 31, 2015 2014 Deferred tax assets: Deferred stock-based compensation expense $ 9,059 $ 7,739 Goodwill and intangible assets 10,449 10,416 Accounts receivable - 2,576 Allowance for doubtful accounts 1,766 1,473 Deferred rent 1,119 783 Tenant improvements 1,392 1,339 Net operating loss carry-forwards 113 122 Accrued expenses and other 6,298 3,337 Total deferred tax assets 30,196 27,785 Deferred tax liabilities: Goodwill and intangible assets 54,586 61,328 Property and equipment 3,098 6,107 Capitalized software cost 3,473 3,392 Total deferred tax liabilities 61,157 70,827 Total net deferred tax liabilities $ 30,961 $ 43,042 Net current deferred tax assets $ (7,460 ) $ (7,811 ) Net non-current deferred tax liabilities 38,421 50,853 Total net deferred tax liabilities $ 30,961 $ 43,042 During 2015, the Company utilized $4.3 million in tax deductions arising from stock-based compensation, which resulted in an excess tax benefit of $1.6 million that was recorded to capital in excess of par value and an offsetting reduction to taxes payable. The total amount of unrecognized tax benefits was approximately $1.3 million for both December 31, 2015 and 2014, respectively, (net of the federal benefit for state issues) that, if recognized, would favorably affect the Company’s future effective tax rate. The accrued liability for interest expense and penalties related to unrecognized tax benefits was $0.4 million and $0.2 million for December 31, 2015 and 2014, respectively. HMS includes interest expense and penalties in the provision for income taxes in the Consolidated Statements of Income. The amount of interest expense (net of federal and state income tax benefits) and penalties in the Consolidated Statements of Income for the years ended December 31, 2015 and 2014 was $0.4 million A reconciliation of the beginning and ending amounts of unrecognized tax benefits for the twelve months ended December 31, 2015 and 2014 are as follows (in thousands) December 31 2015 2014 Unrecognized tax benefits at January 1 $ 1,329 $ 1,034 Additions for tax positions of prior periods 565 484 Additions for tax positions of current periods - - Reductions related to the expiration of statutes of limitations (565 ) (189 ) Unrecognized tax benefits at December 31 $ 1,329 $ 1,329 At December 31, 2015, HMS had pre-tax net operating loss carryforwards of approximately $1.3 million, which will begin to expire in 2021. The Company files income tax returns with the U.S. Federal government and various state jurisdictions. HMS is no longer subject to U.S. Federal income tax examinations for years before 2012. HMS operates in a number of state and local jurisdictions, most of which have never audited the Company’s records. Accordingly, HMS is subject to state and local income tax examinations based upon the various statutes of limitations in each jurisdiction. The Company is currently being examined by the State of New York.

Note 7 - Credit Agreement

Note 7 - Credit Agreement	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Debt Disclosure [Text Block]	7. Credit Agreement In connection with the acquisition of HDI, the Company entered into a five-year, revolving and term secured credit agreement, (“2011 Credit Agreement”), with certain financial institutions and Citibank, N.A. as Administrative Agent. In May 2013, the Company amended and restated the 2011 Credit Agreement and entered into a $500 million five-year, amended and restated revolving credit agreement (“2013 Credit Agreement”). During the year ended December 31, 2015, no principal payments were made against the Company’s revolving credit facility. During the year ended December 31, 2014, HMS made principal payments of $35.0 million against the revolving credit facility. The $197.8 million principal balance of the 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 the 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 is collateralized by the Company’s assets. The 2013 Credit Agreement contains certain customary representations and warranties, affirmative and negative covenants, and events of default. The 2013 Credit Agreement requires the Company 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 the Company’s option, either (a) the LIBOR multiplied by the statutory reserve rate plus an interest margin ranging from 1.50% to 2.25% based on the Company’s 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 the Company’s consolidated leverage ratio). HMS pays 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 the consolidated leverage ratio. Obligations under the 2013 Credit Agreement may be accelerated upon the occurrence of an event of default, which includes customary events of default including, without limitation, payment defaults, failures to perform affirmative covenants, failure to refrain from actions or omissions prohibited by negative covenants, the inaccuracy of representations or warranties, cross-defaults, bankruptcy and insolvency related defaults, defaults relating to judgments, defaults due to certain ERISA related events and a change of control default. As of December 31, 2015, the Company was 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 of the 2011 Credit Agreement. Lender fees of $2.9 million were paid in connection with amending and restating the Credit Agreement. These fees are included in deferred financing costs and will amortized through the term of the 2013 Credit Agreement The interest expense and the commitment fees on the unused portion of the Company’s revolving credit facility are as follows ( in thousands December 31, 2015 2014 2013 Interest expense $ 4,117 $ 4,186 $ 8,156 Commitment fees $ 1,513 $ 1,465 $ 887 At December 31, 2015 and December 31, 2014, the unamortized balance of deferred origination fees and debt issue costs were $4.9 million and $6.9 million, respectively. HMS amortized $2.1 million for both December 31, 2015 and 2014, respectively, of interest expense related to the Company’s deferred origination fees and debt issue costs. Although HMS expects that operating cash flows will continue to be a primary source of liquidity for the Company’s operating needs, the revolving credit facility, which may be used for general corporate purposes, including acquisitions, is available for future cash flow needs, if necessary. As part of a contractual agreement with a customer, the Company has an outstanding irrevocable letter of credit for $3.0 million, which was established against the existing revolving credit facility. The expiration date of the letter of credit is June 30, 2016.

Note 8 - Equity

Note 8 - Equity	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Stockholders' Equity Note Disclosure [Text Block]	8. Equity (a) Treasury Stock On July 30, 2015, the Company’s Board of Directors approved a share repurchase program authorizing the repurchase of up to $75 million of the Company’s common stock from time to time on the open market or in privately negotiated transactions. The repurchase program is authorized through July 30, 2017, and may be suspended or discontinued at any time. Repurchased shares will be available for use in connection with issuance under the Company’s stock plans and for other corporate purposes. Repurchases also be made under a Rule 10b5-1 plan, which would permit shares to be repurchased when HMS might otherwise be precluded from doing so under insider trading laws. The timing and amount of any shares repurchased under the program will be determined by management based on its evaluation of market conditions and other factors. During the year ended December 31, 2015, the Company repurchased $50 million of the Company’s common stock pursuant to this authorization and 10b5-1 plans. The summary of the Company’s repurchases of the common stock through the date hereof is as follows: Period Total Number of Average Price Total Number of (1) Maximum July 1, 2015 to July 31, 2015 - $ - - $ - August 1, 2015 to August 31, 2015 2,562,065 9.40 2,562,065 50,000,000 September 1, 2015 to September 30, 2015 - - - - July 1, 2015 to September 30, 2015 2,652,065 $ 9.40 2,652,065 $ 50,000,000 October 1, 2015 to October 31, 2015 - $ - - $ - November 1, 2015 to November 30, 2015 1,631,119 11.64 1,631,119 19,000,000 December 1, 2015 to December 31, 2015 464,257 12.83 464,257 6,000,000 October 1, 2015 to December 31, 2015 2,095,376 $ 11.91 2,095,376 25,000,000 Total 4,747,441 $ 10.51 4,747,441 $ 25,000,000 (1) Represents shares repurchased through the Company’s Share Repurchase Program publicly announced in August 2015. (b) Preferred Stock The Company’s certificate of incorporation, as amended, authorizes the issuance of up to 5,000,000 shares of “blank check” preferred stock with such designations, rights and preferences as may be determined by the Company’s Board of Directors. As of December 31, 2015, no preferred stock had been issued.

Note 9 - Employee Benefit Plan

Note 9 - Employee Benefit Plan	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Compensation and Employee Benefit Plans, Other than Share-based Compensation [Text Block]	9. Employee Benefit Plan The Company sponsors the HMS Holdings Corp. 401(k) Plan (the “401(k) Plan”) for eligible employees. Eligible employees must complete 90 days of service in order to enroll in the 401(k) Plan. Participants may make voluntary contributions to the 401(k) Plan of up to 60% of their annual base pre-tax compensation not to exceed the federally determined maximum allowable contribution. In addition, the 401(k) Plan permits the Company to make discretionary contributions. During 2015, 2014 and 2013 HMS matched 100% of the first 3% of pay contributed by each eligible employee and 50% on the next 2% of pay contributed. These matching contributions vest immediately and are not in the form of the Company’s common stock. For the years ended December 31, 2015, 2014 and 2013, HMS contributed $4.8 million, $5.0 million and $4.6 million, respectively, to the 401(k) Plan in the form of matching contributions.

Note 10 - Stock-based Compensat

Note 10 - Stock-based Compensation	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]	10. Stock-Based Compensation The Company grants stock options to purchase HMS common stock, restricted stock awards and restricted stock units to HMS employees and directors under the Amended 2011 Stock Option and Stock Issuance Plan (the “HDI 2011 Stock Plan”), which the Company assumed in connection with the acquisition of HDI and the Fourth Amended and Restated 2006 Stock Plan (the “2006 Stock Plan”). The HDI 2011 Stock Plan superseded the HDI Amended 2004 Stock Option/Stock Issuance Plan. The 2006 Stock Plan was adopted in June 2006 and superseded the 1999 Long-Term Incentive Stock Plan (the “1999 Plan”). The Company has previously granted stock options outside of the plans, and as of December 31, 2015, none of those stock options remain outstanding. Stock-based compensation expense is measured at the grant date based on the fair value of the award and is recognized as expense over the requisite service period, which is generally the vesting period. Stock options granted under the HDI 2011 Stock Plan had vesting schedules ranging from one month to four years. Stock options granted under the 2006 Stock Plan generally vest over a one to four year period. All stock options granted under the 1999 Plan and outside the Company’s plans are fully vested. The restricted stock awards and restricted stock units granted under the 2006 Stock Plan vest over a one to five year period and the related stock-based compensation expense is ratably recognized over those same time periods. During 2015, the Company revised the presentation of stock-based compensation expense. All stock-based compensation was previously recorded in SG&A, and in the current year the company has corrected the presentation to include a portion of the stock-compensation expense in cost of services-compensation expense. The Company has reflected stock compensation expense of $5.1 million and $4.5 million for the years ended December 31, 2014 and 2013, respectively in cost of services-compensation expense. In previous years, this amount was reflected in SG&A but classification was corrected in 2015 to conform to current year presentation. For the year ended December 31, 2015, the Company had stock compensation expense of $6.2 million included in cost of services – compensation and $8.1 million in SG&A, respectively. The excess tax benefit from the exercise of stock options for the years ended December 31, 2015, 2014 and 2013 was $1.6 million, $1.8 million and $5.2 million, respectively. (a) Amended 2011 Stock Option and Stock Issuance Plan The Company assumed the HDI 2011 Stock Plan in connection with the acquisition of HDI. As of December 31, 2015, there were stock options to purchase 77,128 shares of common stock outstanding under the HDI 2011 Stock Plan. The HDI 2011 Stock Plan is divided into two separate equity programs: a stock option grant program and a stock issuance program. The HDI 2011 Stock Plan permits the grant of incentive stock options, non-qualified stock options and share awards. A total of 836,122 shares have been authorized for issuance under the 2011 Stock Plan. The maximum number of shares available to be issued under the Plan is currently 366,806 shares, subject to adjustments for any stock splits, stock dividends or other specified adjustments which may take place in the future. Former HDI employees as well as new (i) employees, (ii) non-employee directors and (iii) consultants and other independent advisors are eligible to participate in the HDI 2011 Stock Plan. However, only employees are eligible to receive incentive stock options. The exercise price of stock options granted under the HDI 2011 Stock Plan may not be less than fair market value of a share of stock on the grant date, as measured by the closing price of the Company’s common stock on the NASDAQ Global Select Market and the term of a stock option may not exceed ten years. (b) Fourth Amended and Restated 2006 Stock Plan The 2006 Stock Plan permits the grant of incentive stock options, non-qualified stock options, stock appreciation rights (“SARs”), restricted stock awards and restricted stock units, performance shares and performance units and other share awards. The Company’s 2006 Stock Plan was approved by the shareholders in June 2006. The purpose of the 2006 Stock Plan is to furnish a material incentive to HMS employees and non-employee directors by making available to them the benefits of a larger common stock ownership through stock options and awards. The Company believes that these increased incentives stimulate the efforts of employees and non-employee directors towards the Company’s continued success, as well as assist in the recruitment of new employees and non-employee directors. A total of 18,000,000 shares have been authorized for issuance under the 2006 Stock Plan. Any shares issued in connection with awards other than stock options and SARs are counted against the 18,000,000 share limit as one and eighty-five hundredths (1.85) of a share for every one share issued in connection with such award or by which the award is valued by reference. All of the Company’s employees as well as HMS non-employee directors are eligible to participate in the 2006 Stock Plan. However, only HMS employees are eligible to receive incentive stock. The exercise price of stock options granted under the 2006 Stock Plan may not be less than fair market value of a share of stock on the grant date, as measured by the closing price of the Company’s common stock on the NASDAQ Global Select Market and the term of a stock option may not exceed seven years. In November 2015, the Compensation Committee of the Board of Directors approved the grant of non-qualified stock options to purchase an aggregate of 612,391 shares of common stock to certain HMS directors, executive officers and employees, under the 2006 Stock Plan at an exercise price of $11.20 per share, which was the closing price of the Company’s common stock on the grant date. The Committee also approved the grant of non-qualified stock options to purchase an aggregate of 555,000 shares of common stock to certain of the Company’s directors and employees, including HMS executive officers, granted under the 2006 Stock Plan at an exercise price of $14 per share, equal to 125% of the fair market value on the grant date. The Committee also approved the grant of 57,391 restricted stock units to directors on the same date. The stock options granted to HMS employees and executive officers vest as follows: one-third increments on the first, second and third anniversaries of the Grant Date. The stock options and restricted units granted to HMS directors in November 2015 vest quarterly over a one year period commencing on December 31, 2015. During the year ended December 31, 2015, HMS granted stock options to purchase an aggregate of 2,442,081 shares of common stock and 726,784 restricted stock units under the 2006 Stock Plan. As of December 31, 2015, there were 3,413,500 shares of common stock available for future grant under the 2006 Stock Plan. The Company had the following outstanding under the 2006 Stock Plan as of December 31, 2015: (i) stock options to purchase 4,952,950 shares of common stock and (ii) 1,154,157 restricted stock units. There are no restricted stock awards outstanding under the 2006 Stock Plan as of December 31, 2015. (c) 1999 Long-Term Incentive Plan The 1999 Plan was approved by the Company’s shareholders in March 1999 and was superseded by the 2006 Stock Plan in June 2006. Accordingly, no additional awards or options may be granted thereunder. As of December 31, 2015, there were no stock options outstanding under the 1999 Plan. As of December 31, 2014, there were 74,290 stock options outstanding under the 1999 Plan. (d) Options Issued Outside the Plans As of December 31, 2015, there were stock options to purchase an aggregate of 180,000 shares of the Company’s common stock outstanding that were not granted under the 2006 Stock Plan, the 1999 Plan or the HDI 2011 Stock Plan, of which 180,000 stock options were granted in July 2007 to the Company’s former Chief Financial Officer under the terms of his employment agreement. All of these stock options were exercised during 2015. (e) Summary of Stock Options Presented below is a summary of the stock option activity for the year ended December 31, 2015: Shares Weighted Weighted Aggregate (shares and aggregate intrinsic value in thousands) Outstanding at December 31, 2014 4,101 $ 18.72 Granted 2,442 14.69 Exercised (578 ) 7.25 Forfeitures (560 ) 21.53 Expired (375 ) 24.10 Outstanding at December 31, 2015 5,030 17.37 5.10 3,728 Expected to vest at December 31, 2015 3,104 16.42 6.22 714 Exercisable at December 31, 2015 1,857 $ 18.98 3.19 $ 2,999 For awards subject to service-based vesting conditions, HMS 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, HMS recognizes stock-based compensation expense using the straight-line recognition method when it is probable that the performance condition will be achieved. Forfeitures are 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 2015 and 2014 to executive management only are market condition awards as attainment is based on the performance of the Company’s 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 the Company’s 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 the Company’s historical experience for similar types of stock option awards. The risk-free interest rate is based on U.S. Treasury notes. HMS does not anticipate paying any cash dividends in the foreseeable future and therefore, use an expected dividend yield of zero in the option valuation models. The weighted-average grant-date fair value per share of the stock options granted during the years ended December 31, 2015, 2014 and 2013 was $5.37, $7.59 and $7.07, respectively. HMS estimated the fair value of each stock option grant on the date of grant using a Black-Scholes option pricing model and weighted–average assumptions set forth in the following table: Years ended December 31, 2015 2014 2013 Expected dividend yield 0 % 0 % 0 % Risk-free interest rate 1.54 % 1.57 % 1.21 % Expected volatility 40.62 % 38.18 % 37.22 % Expected life (years) 4.89 4.82 4.51 During the years ended December 31, 2015, 2014 and 2013, the Company issued 577,559 shares, 516,552 shares and 1,305,538 shares, respectively, of the Company’s common stock upon the exercise of outstanding stock options and received proceeds of $4.2 million, $4.1 million and $9.2 million, respectively. The total intrinsic value of options exercised during the years ended December 31, 2015, 2014 and 2013 was $5.9 million, $6.5 million and $23.9 million, respectively. Stock-based compensation expense relating to stock options charged against income was approximately $6.4 million, $7.6 million and $6.7 million, for the years ended December 31, 2015, 2014 and 2013, respectively. As of December 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 1.42 years. (f) Restricted Stock Units In 2015, 2014 and 2013, certain employees received restricted stock units under the 2006 Stock Plan. The fair value of restricted stock units is estimated based on the closing sale price of the Company’s common stock on the NASDAQ Global Select Market on the date of issuance. The total number of restricted stock units expected to vest is adjusted by estimated forfeiture rates. As of December 31, 2015, 2014 and 2013, 1,029,972, 813,346 and 571,204 restricted stock units remain unvested and there was approximately $13.4 million, $13.8 million and $11.6 million, respectively, of unamortized compensation cost related to restricted stock units which is expected to be recognized over the remaining weighted-average vesting period of 1.16 years. Stock-based compensation expense related to restricted stock units was $7.9 million, $5.7 million and $4.5 million for the years ended December 31, 2015, 2014 and 2013, respectively. A summary of the status of the Company’s restricted stock units and of changes in restricted stock units outstanding under the 2006 Stock Plan, as amended, as of December 31, 2015 is as follows: Number of Weighted Average Aggregate (in thousands, except for weighted average grant date fair value per unit) Outstanding balance at December 31, 2014 910 $ 22.84 Granted 727 16.23 Vesting of restricted stock units, net of shares withheld for taxes (174 ) 23.22 Shares withheld for taxes (71 ) 23.22 Forfeitures (238 ) 21.60 Outstanding balance at December 31, 2015 1,154 $ 18.85 $ 14,274 (g) Restricted Stock Awards Certain executive officers have received grants of restricted stock awards under the 2006 Stock Plan. The vesting of restricted stock awards is subject to the executive officers’ continued employment with the Company. Recipients of restricted stock awards are not required to provide the Company with any consideration other than rendering service and in addition, restricted stock holders are permitted to vote and receive dividends. The stock-based compensation expense for restricted stock awards is determined based on the closing market price of the Company’s 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. HMS did not issue restricted stock awards during the year ended December 31, 2015. At December 31, 2015, there are no unvested shares underlying restricted stock awards and there is no unrecognized compensation cost related to restricted stock awards. For the years ended December 31, 2014 and 2013, stock-based compensation expense related to restricted stock awards was $0.1 million, and $0.7 million, respectively.

Note 11 - Earnings Per Share

Note 11 - Earnings Per Share	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Earnings Per Share [Text Block]	11. Earnings per Share The following table sets forth the computation of basic and diluted earnings per share for the years ended December 31, 2015, 2014 and 2013. Years ended December 31, 2015 2014 2013 (in thousands, except per share data) Net income $ 24,527 $ 13,947 $ 39,997 Weighted average common shares outstanding-basic 87,881 87,673 87,598 Plus: net effect of dilutive stock options and restricted common shares 480 491 746 Weighted average common shares outstanding-diluted 88,361 88,164 88,344 Net income per common share-basic $ 0.28 $ 0.16 $ 0.46 Net income per common share-diluted $ 0.28 $ 0.16 $ 0.45 For the years ended December 31, 2015, 2014 and 2013, 3,480,458, 2,422,628 and 1,111,795 stock options, respectively, were not included in the diluted earnings per share calculation because the effect would have been anti-dilutive. For the years ended December 31, 2015, 2014 and 2013, restricted stock units representing 315,999, 90,905 and 88,327 shares of common stock, respectively, were not included in the diluted earnings per share calculation because the effect would have been anti-dilutive.

Note 12 - Transactions with Off

Note 12 - Transactions with Officers, Related Parties and Others	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Related Party Transactions Disclosure [Text Block]	12. Transactions with Officers, Related Parties and Others (a) Public Consulting Group, Inc. Subsequent to the Company’s acquisition of Benefits Solutions Practice Area (“BSPA”) from Public Consulting Group, Inc. (“PCG”) in 2006, HMS has entered into subcontractor agreements with PCG, pursuant to which the Company provides cost containment services. In February 2013, HMS further amended and extended the Company’s Master Teaming and Non-Compete Agreements with PCG, first entered into in September 2006, and (ii) Supplementary Medicaid RAC Contract Teaming and Confidentiality with PCG, first entered into in July 2011. Both of these agreements expired on December 31, 2013. For the year ended December 31, 2013, revenue recognized under subcontractor agreements with PCG was $0.4 million. No revenue was recognized during 2015 and 2014. As of December 31, 2015 and 2014, no accounts receivable were outstanding related to these subcontract agreements with PCG. In connection with the BSPA acquisition, HMS entered into an Intercompany Services Agreement (“ISA”) with PCG to allow each party to perform services for the other, such as information technology support and contractual transition services. Services performed under the ISA were billed at pre-determined rates specified in the ISA. No significant services were rendered by PCG under the ISA during 2015 and 2014. For the year ended December 31, 2013, services rendered by PCG under the ISA were valued at approximately $42,000. For the year ended December 31, 2015, HMS did not render services to PCG. For the years ended December 31, 2014 and 2013, HMS services rendered to PCG were valued at approximately $21,000 and $70,000, respectively. Since the BSPA acquisition, amounts collected by or paid on the Company’s behalf by PCG are reimbursed to PCG at cost. For the years ended December 31, 2015 and 2014, HMS did not owe any amount to PCG. (b) Employment Agreements Effective March 1, 2013, and as amended on April 30, 2013 and January 20, 2015, HMS entered into an Executive Employment Agreement with William C. Lucia, the Company’s President and Chief Executive Officer, with a termination date of February 28, 2018 (the “Agreement”). Mr. Lucia is eligible to receive bonus compensation from the Company in respect of each calendar year (or portion thereof) during the term of his employment, in each case as may be determined by the Company’s Compensation Committee in its sole discretion on the basis of performance or such other criteria as may be established from time to time by the Compensation Committee in its sole discretion. Mr. Lucia’s annualized base salary remains at $650,000 and his target bonus remains at 100% of his base salary. If the Company terminates Mr. Lucia’s employment without Cause (as defined in the Agreement), in connection with a Change in Control (as defined in the Agreement) or otherwise, or if his employment ceases because of his disability or if he terminates his employment with Good Reason (as defined in the Agreement), then provided Mr. Lucia executes and does not revoke a separation agreement and release and complies with certain restrictive covenants, he will be entitled to receive cash severance in an amount equal to (i) 24 times his monthly base salary paid ratably in equal installments over a 24 month period, (ii) twice a bonus component that will vary depending upon whether the bonus for the year of termination is intended to be performance-based compensation and the performance is satisfied or whether the bonus is under a different program, in which case it will be his target bonus and will be paid on the same schedule as (i) above, and (iii) continued health coverage for 24 months or until he becomes eligible for health coverage from another employer, whichever is earlier. If the Company terminates Mr. Lucia’s employment without Cause or Mr. Lucia resigns for Good Reason, Mr. Lucia will be treated as continuing in service for the purposes of the vesting of any equity award until the earliest of: (i) the end of the Noncompetition Period (as defined in Mr. Lucia’s Noncompetition, Nonsolicitation, Proprietary and Confidential Information and Developments Agreement with the Company (the “Restrictive Covenants Agreement”)), (ii) the last of the applicable vesting dates under such awards, or (iii) the termination or violation of the Restrictive Covenants Agreement. Additionally, if the Company terminates Mr. Lucia’s employment without Cause or Mr. Lucia resigns for Good Reason, and a Change in Control occurs within six months following such termination, then with respect to any equity awards outstanding or deemed to be outstanding, or canceled or forfeited as a result of Mr. Lucia’s termination or such Change in Control, Mr. Lucia will receive a cash payment equal to the excess of the amount he would have received for such equity awards if he were continuing in service as of the date of the Change in Control and terminated immediately thereafter over the amount actually received, paid in a single lump sum payment at the time provided in the Agreement. In addition, under the terms of HMS employment agreements with the Company’s other executive officers, under certain circumstances, HMS could be required to provide severance in an amount equal to 12 times his/her monthly base salary plus a lump sum amount equal to 12 times the difference between the monthly COBRA coverage premium for the same type of medical and dental coverage the executive is receiving as of the date his/her employment ends and his/her then monthly employee contribution, which amount may be used for any purpose.

Note 13 - Commitments and Conti

Note 13 - Commitments and Contingencies	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Commitments and Contingencies Disclosure [Text Block]	13. Commitments and Contingencies (a) Lease commitments The Company leases office space, data processing equipment and software licenses under operating leases that expire on various dates through 2024. The lease agreements provide for rent escalations. Lease expense, exclusive of sublease income, for the year ended December 31, 2015, 2014 and 2013 was $5.4 million, $6.9 million and $7.6 million, respectively. Sublease income was $25,000, $42,000 and $0.3 million for the years ended December 31, 2015, 2014 and 2013, respectively. Minimum annual lease payments to be made both under capital leases and operating leases, net of nominal sublease payments to be received for each of the next five years ending December 31 and thereafter are as follows ( in thousands Capital Operating 2016 $ 47 $ 12,957 2017 4 10,133 2018 - 5,917 2019 - 3,544 2020 - 3,263 Thereafter - 7,599 51 $ 43,413 Less: Interest - $ 51 (b) Litigation Kern Health Systems Dennis Demetre and Lori Lewis Kern Health Systems Restrictive Covenants, Trade Secret, Contract and other Causes of Action in Texas and New York HMS Holdings Corp., et al. v. Public Consulting Group, Inc., James Gambino and Jason Ramos HMS Holdings Corp., et al. v. Matthew Arendt, Sean Curtin and Danielle Lange HMS Holdings Corp., et al. v. Elena Moiseenko and Joseph Flora In July 2015, the court in the Texas Action found that HMS had proved the existence of unlawful conduct and had demonstrated a probable right to recovery at trial regarding its claims against PCG, Gambino and Ramos and that an injunction was necessary to avoid imminent and irreparable harm to the Company. As such, the Texas court issued an order that granted a temporary injunction against those defendants that was ordered to remain in place through the time of trial in the Texas Action (the “Texas Injunction”). As a condition to obtaining the Texas Injunction, HMS was required to post a surety bond in the amount of $0.5 million. In August 2015, HMS filed an appeal of the Texas Injunction to, among other things, expand upon the relief the trial court had awarded in order to enjoin PCG from providing TPL services to State Medicaid agencies through the time of trial, which PCG, Gambino and Ramos cross-appealed. Oral argument in this matter is set for March 2016. Additionally, in August 2015, PCG filed a counterclaim against the Company in the Texas Action claiming damages for alleged business disparagement and for tortious interference with an existing contract and prospective business relations, which HMS denied. In October 2015, PCG moved for partial summary judgment on HMS’s claims requesting that the court enter a judgment in favor of PCG on the issue of damages suffered in connection with certain PCG TPL proposals. On December 4, 2015, the Texas court denied PCG’s motion for partial summary judgment. On December 14, 2015, PCG filed an application for temporary injunction that would prohibit HMS from referring to certain conclusions made by the court in the Texas Injunction, which relate to the conduct of PCG or PCG’s employees, as “factual findings” in the Company’s future discussions with state authorities charged with awarding TPL contracts. If granted, PCG’s temporary injunction would last through the time of trial in the Texas Action, which is set for April 25, 2016. In May 2015, the court in the New York action issued an order granting HMS’s motion for spoliation against Curtin and Lange finding that these defendants had engaged in egregious misconduct regarding the wrongful destruction of evidence. The court ordered Curtin and Lange to repay the Company’s associated attorneys’ fees and costs. Pursuant to the court’s order, HMS is seeking reimbursement of approximately $0.45 million from these defendants. In July 2015, following the Texas court’s ruling on the Texas Injunction, the court in the New York Action issued its decision and order on HMS’s motion for a preliminary injunction against Curtin, Lange and Arendt. The New York court found that HMS had successfully established a likelihood of prevailing on its non-solicitation claims against all three defendants and on its trade secret misappropriation claims against Curtin and Lange; however, the court held that injunctive relief in the New York Action was not necessary due to the Texas Injunction. The court’s order also preserved the Company’s right to again seek injunctive relief in the New York Action in the event of a change of status regarding the Texas Injunction. Trial in the New York Action is tentatively set for June 6, 2016. In August 2015, the court in the Second New York Action entered a temporary restraining order against defendants Moiseenko and Flora pending the court’s final determination of HMS’s application for a preliminary injunction in this matter. Flora generally denied HMS’s motion, and Moiseenko opposed it on its merits and filed a cross-motion to dismiss the complaint on the grounds of improper forum. On November 13, 2015, the court in the Second New York Action issued an order granting a preliminary injunction against Flora after concluding that HMS had demonstrated a probable right to recovery at trial on its claim that Flora had misappropriated and misused the Company’s trade secrets. The court’s order also granted Moiseenko’s motion to dismiss without prejudice to refiling in a proper forum. As HMS has disclosed in previous filings with the SEC, in July 2015, HMS received notice that reprocurement of its TPL contract with the New Jersey Department of Human Services had been awarded to PCG. On February 12, 2016, HMS filed a protest with the State of New Jersey Division of Purchase and Property challenging the award. After multiple contract extensions, HMS’s current TPL contract with the New Jersey Department of Human Services expires on March 31, 2016. In addition, in August 2015, the New York State Office of Medicaid General Inspector (“OMIG”) awarded HMS the new Medicaid Third Party Liability Match and Recovery Services contract. PCG filed a protest of the award with the New York Office of the State Comptroller, which HMS and OMIG opposed. On January 8, 2016, HMS entered into an amendment to extend its existing TPL contract with OMIG through April 6, 2016. No decision has been rendered regarding the outcome of either protest. While HMS believes its legal claims are meritorious, there are inherent uncertainties in any litigation, and there can be no assurances that HMS will ultimately prevail at trial or in legal proceedings related to the lawsuits, such as protests, or that the rulings in these proceedings are or will be adequate to protect the Company’s confidential or trade secret information or that the rulings or outcomes in these matters would not have an adverse effect on the Company’s business, financial condition or operating results. From time to time, HMS may be subject to investigations, legal proceedings and other disputes arising in the ordinary course of the Company’s business, including but not limited to regulatory audits, billing and contractual disputes and employment-related matters. The Company’s contractual relationships, including those with federal and state government entities, subject HMS operations, billing and business practices to scrutiny and audit by those entities and other multiple agencies and levels of government, as well as to frequent transitions and changes in the personnel responsible for oversight of the Company’s contractual performance. Every so often, HMS may have contractual disputes with the Company’s customers arising from differing interpretations of contractual provisions that define the Company’s 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 HMS accept some amount of loss or liability in order to avoid customer abrasion, negative marketplace perceptions and other disadvantageous results that could affect the Company’s business, financial condition, results of operations and cash flows. HMS records accruals for outstanding legal matters when it believes it is probable that a loss will be incurred and the amount can be reasonably estimated. The Company evaluates, 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, HMS does not establish an accrued liability .

Note 14 - Customer Concentratio

Note 14 - Customer Concentration	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Concentration Risk Disclosure [Text Block]	14. Customer Concentration (a) Geographic Information The Company operates within the United States. (b) Major Customers For the years ended December 31, 2015 and 2014, respectively, none of the Company’s customers accounted for more than 10% of the Company’s total revenue. For the year ended December 31, 2013, one customer accounted for 22.3% of the Company’s total revenue. (c) Concentration of Revenue The list of the Company’s ten largest customers changes periodically. For the years ended December 31, 2015, 2014 and 2013, the Company’s ten largest customers represented 44.0%, 40.1% and 47.2% of HMS’ total revenue, respectively. The Company’s three largest customers accounted for 18.3%, 19.8% and 32.5% of total revenue for each of the years ended December 31, 2015, 2014 and 2013, respectively. The Company’s agreements with the ten current largest customers expire between 2016 and 2020. In many instances, HMS provides services pursuant to agreements that may be renewed subject to a competitive reprocurement process. Several of the Company’s contracts, including those with some of the largest customers, may be terminated for convenience.

Note 15 - Subsequent Events

Note 15 - Subsequent Events	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Subsequent Events [Text Block]	15. Subsequent Events Stock-Based Compensation On February 18, 2016, the Compensation Committee of the Board of Directors approved March 2, 2016 grants of stock option awards and restricted stock units to employees. The stock options and restricted stock units vest over 3 years. The Company estimates the fair value of these grants to be $12.9 million, utilizing the method and assumptions set forth in Note 10 – “Stock-Based Compensation.” In connection with the preparation of these audited consolidated financial statements, an evaluation of subsequent events was performed through the date these audited consolidated financial statements were issued and there are no other events that have occurred that would require adjustments or disclosure to the Company’s audited consolidated financial statements.

Note 16 - Quarterly Financial D

Note 16 - Quarterly Financial Data (unaudited)	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Quarterly Financial Information [Text Block]	16. Quarterly Financial Data (unaudited) The table below summarizes the Company’s unaudited quarterly operating results for the last two fiscal years ( in thousands, except per share amounts Year ended December 31, 2015 First Second Third Fourth Revenue $ 110,324 $ 116,934 $ 118,444 $ 128,514 Operating income $ 7,981 $ 11,752 $ 13,016 $ 14,823 Net income $ 3,522 $ 5,418 $ 6,862 $ 8,725 Net income per common share - basic $ 0.04 $ 0.06 $ 0.08 $ 0.10 Net income per common share - diluted $ 0.04 $ 0.06 $ 0.08 $ 0.10 Cost of services - compensation expense, as reported $ 42,726 $ 42,303 $ 42,330 $ 46,694 Cost of services - compensation expense, as revised $ 44,067 $ 43,883 $ 43,628 Selling, general and administrative expenses, as reported $ 21,302 $ 20,863 $ 21,399 $ 22,582 Selling, general and administrative expenses, as revised $ 19,961 $ 19,283 $ 21,295 Year ended December 31, 2014 First Second Third Fourth Revenue $ 104,707 $ 112,561 $ 113,796 $ 112,161 Operating income (loss) $ 7,797 $ 12,558 $ 13,940 $ (91 ) Net income (loss) $ 3,353 $ 6,038 $ 6,950 $ (2,394 ) Net income (loss) per common share - basic $ 0.04 $ 0.07 $ 0.08 $ (0.03 ) Net income (loss) per common share - diluted $ 0.04 $ 0.07 $ 0.08 $ (0.03 ) Cost of services - compensation expense, as reported $ 46,921 $ 43,130 $ 42,375 $ 43,772 Cost of services - compensation expense, as revised $ 48,038 $ 44,380 $ 43,464 $ 45,391 Selling, general and administrative expenses, as reported $ 16,489 $ 19,023 $ 19,334 $ 24,117 Selling, general and administrative expenses, as revised $ 15,372 $ 18,256 $ 18,297 $ 29,146

Schedule II - Valuation and Qua

Schedule II - Valuation and Qualifying Accounts	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Schedule of Valuation and Qualifying Accounts Disclosure [Text Block]	SCHEDULE II – VALUATION AND QUALIFYING ACCOUNTS For the years ended December 31, 2015, 2014 and 2013 Allowance for doubtful accounts and estimated liability for appeals as of December 31, 2015, 2014 and 2013 are as follows: Allowance for doubtful accounts (in thousands): Balance, December 31, 2012 $ 3,476 Provision 2,225 Recoveries (2,220 ) Charge-offs (1,521 ) Balance, December 31, 2013 $ 1,960 Provision 8,195 Recoveries (17 ) Charge-offs (5,603 ) Balance, December 31, 2014 $ 4,535 Provision 3,509 Recoveries (100 ) Charge-offs (3,095 ) Balance, December 31, 2015 $ 4,849 Estimated liability for appeals and estimated allowance 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 16,822 Appeals found in providers favor (30,990 )* Balance, December 31, 2014 $ 41,623 ** Provision 15,642 Appeals found in providers favor (17,573 )* Balance, December 31, 2015 $ 39,692 ** ____________________________ * For the years ended December 31, 2015, 2014, and 2013 included within the estimated allowance for appeals found in favor of providers, $6.2 million, $24.3 million and $6.3 million, respectively, was activity associated with HDI’s Medicare RAC contract. **Includes $6,614, $4,824 and $13,939 related to estimated allowance for appeals that apply to uncollected accounts receivable as of December 31, 2015, 2014, and 2013, respectively.

Significant Accounting Policies

Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2015
Accounting Policies [Abstract]
Consolidation, Policy [Policy Text Block]	(a) Principles of Consolidation The consolidated financial statements include the Company’s accounts and transactions and those of the Company’s wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation.
Use of Estimates, Policy [Policy Text Block]	(b) Use of Estimates The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Reclassification, Policy [Policy Text Block]	(c) Reclassifications Certain reclassifications were made to prior year amounts to conform to the current period presentation.
Cash and Cash Equivalents, Policy [Policy Text Block]	(d) Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. Cash equivalents consist of deposits that are readily convertible into cash.
Concentration Risk, Credit Risk, Policy [Policy Text Block]	(e) Concentration of Credit Risk Financial instruments (principally cash and cash equivalents, accounts receivable, accounts payable and accrued expenses) are carried at cost, which approximates fair value due to the short-term maturity of these instruments. The Company’s long-term debt or revolving credit facility is carried at cost. Due to the variable interest rate associated with the revolving credit facility, its fair value approximates its carrying value. The Company’s policy is to limit credit exposure by placing cash in accounts which are exposed to minimal interest rate and credit risk. HMS maintains cash in cash depository accounts, U.S. Treasuries, and money market mutual funds with large financial institutions with a minimum credit rating of A1/P1 or better, as defined by Standard and Poor’s. The balance at these institutions generally exceeds the maximum balance insured by the Federal Deposit Insurance Corporation of up to $250,000 per entity. HMS has not experienced any losses on the bank deposits and believes these deposits do not expose the Company to any significant credit risk. The Company is subject to potential credit risk related to changes in economic conditions within the healthcare market. However, HMS believes that the billing and collection policies are adequate to minimize the potential credit risk. The Company performs ongoing credit evaluations of customers and generally does not require collateral. HMS has no history of significant losses from uncollectible accounts.
Property, Plant and Equipment, Policy [Policy Text Block]	(f) Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Depreciation is provided over the estimated useful lives of the assets utilizing the straight-line method. HMS amortizes leasehold improvements on a straight-line basis over the term of the related lease, including any anticipated renewal periods, or the life of the leasehold improvement, whichever is shorter. Equipment leased under capital leases is depreciated over the shorter of (i) the term of the lease and (ii) the estimated useful life of the equipment. The depreciation expense on assets acquired under capital leases is in selling, general and administrative expense. Estimated useful lives are as follows: Equipment (in years) 2 — 3 Leasehold improvements (in years) 3 — 10 Furniture and fixtures (in years) 3 — 5 Building and building improvements (in years) up to 39.5
Internal Use Software, Policy [Policy Text Block]	(g) Software and Software Development Cost Software development costs related to software that is acquired or developed for internal use while in the application development stage are capitalized. All other costs to develop software for internal use, either in the preliminary project stage or post-implementation stage, are expensed as incurred. Amortization of software and software development costs is calculated on a straight-line basis over the expected economic life, generally estimated to be 5 to 10 years.
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block]	(h) Goodwill Goodwill is 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 The Company has the option to perform a qualitative assessment to determine if impairment is more likely than not to have occurred. If the Company 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 HMS would not need to perform the two-step impairment test for that reporting unit. If the Company cannot support such a conclusion, or the Company does 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. HMS completed the annual impairment test as of June 30, 2015 and determined no impairment existed. The result of the annual impairment test indicated that the fair values of the reporting unit is significantly in excess of its carrying value. There were no impairment charges related to goodwill during the fiscal years ended December 31, 2015, 2014 or 2013.
Impairment or Disposal of Long-Lived Assets, Including Intangible Assets, Policy [Policy Text Block]	(i) Long-Lived Assets Long-lived assets, which include property and equipment and intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying value of its asset group to the estimated undiscounted future net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying value of the asset group exceeds the fair value of the assets, which amount is charged to earnings. Fair value is based on a projection of the estimated discounted future net cash flows expected to result from the asset group, using a discount rate reflective of the Company’s cost of funds. The Company did not recognize any impairment charges related to the long-lived assets, property and equipment intangible assets, during the years ended December 31, 2015, 2014 or 2013, as management believes that carrying amounts were not impaired.
Purchase Method of Accounting, Policy [Policy Text Block]	(j) Acquisition Accounting The Company assign values to assets acquired and liabilities assumed based upon their fair value. In most instances there is not a readily defined or listed market price for individual assets and liabilities acquired in connection with a business, including intangible assets. The determination of fair value for individual assets and liabilities in many instances requires a high degree of estimation. The valuation of intangible assets, in particular, is very subjective. The use of different valuation techniques and assumptions could change the amounts and useful lives assigned to the assets and liabilities acquired, including goodwill and other intangible assets and related amortization expense.
Income Tax, Policy [Policy Text Block]	(k) Income Taxes Income taxes are accounted for under the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary and permanent differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. This method also requires the recognition of future tax benefits for net operating loss carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized as income in the period that includes the enactment date. A valuation allowance is provided against deferred tax assets to the extent their realization is not more likely than not. Uncertain income tax positions are accounted for by prescribing a minimum recognition threshold that a tax position is required to meet before being recognized in the financial statements.
Revenue Recognition and Estimated Liability for Appeals, Policy [Policy Text Block]	(l) Revenue Recognition and Estimated Liability for Appeals The Company provides services under contracts that contain various fee structures, including contingency fee and fixed fee arrangements. Revenue is recognized when a contract exists, services have been provided to the customer, the fee is fixed and determinable, and collectability is reasonably assured. In addition, the Company has contracts with the federal government which are generally cost-plus or time and material based. Revenue on cost-plus contracts is recognized based on costs incurred plus the negotiated fee earned. Revenue on time and materials contracts is recognized based on hours worked and expenses incurred. Under the Company’s Medicare RAC contract with CMS, the Medicaid RAC contracts with various states, and similar contracts for private health plan customers, HMS recognizes revenue when claims are sent to the customer for offset against future claims payments. Providers have the right to appeal a claim and may pursue additional appeals if the initial appeal is found in favor of the customer. HMS accrues an estimated liability for appeals based on the amount of revenue that is subject to appeals, closures or other adjustments and which HMS estimate are probable of being returned to providers following a successful appeal. This estimated liability for appeals is an offset to revenue in the Company’s Consolidated Statements of Income. The Company’s estimates are based on the Company’s historical experience with appeals. The estimated liability for appeals of $33.1 million and $36.8 million as of December 31, 2015 and 2014, respectively, represents the Company’s estimate of the potential amount of repayments related to appeals of claims, closures and other adjustments for which revenue was previously collected. This is reflected as a separate line item in the current liabilities section of the balance sheet titled “Estimated liability for appeals.” To the extent the amount to be returned to providers following a successful appeal, closure or other adjustment exceeds the amount accrued, revenue in the applicable period would be reduced by the amount of the excess. As of December 31, 2015, HMS has an estimated liability for appeals and estimated allowance for appeals (which is an offset to accounts receivable) based on the Company’s historical experience with this activity under the Company’s customers’ contracts. Any future changes to any of the Company’s customer contracts, including further modifications to the transition plan for incumbent Medicare RACs may require the Company to apply different assumptions that could affect HMS’ estimated liability for future periods. The Company similarly accrues an allowance against accounts receivable related to revenue yet to be collected, based on the same estimates used to establish the estimated liability for appeals of revenue received. In addition, some of the Company’s contracts may include customer acceptance provisions. Formal customer sign-off is not always necessary to recognize revenue, provided HMS objectively demonstrates that the criteria specified in the acceptance provision are satisfied. Due to the range of products and services that HMS provides and the differing fee structures associated with each type of contract, revenue may be recognized in irregular increments.
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]	(m) Stock-Based Compensation The Company estimates the fair value of all stock awards granted using the Black-Scholes option pricing model for “non-performance-based” grants and Monte Carlo simulation is used for performance-based grants with certain market conditions. The determination of the fair value of the stock based awards on the grant date using the applicable option pricing model is affected by the Company’s stock price, as well as assumptions regarding a number of complex and subjective variables. These variables include the Company’s expected stock price volatility over the expected term of the awards, actual and projected option exercise experience, a risk-free interest rate and any expected dividends. The Company estimates the expected term of the options granted by calculated the average term from the Company’s historical option exercise experience and volatility of the common stock using historical volatility. The assumed risk-free interest rate is based on the yield on the measurement date of a zero-coupon U.S. Treasury bond with a maturity period equal to the option’s expected term. The Company does not anticipate paying any cash dividends in the foreseeable future and therefore uses an expected dividend yield of zero in the option valuation models. The Company estimates forfeitures at the time of grant and revises the forfeiture rate in subsequent periods if actual forfeitures differ from estimates. If actual forfeitures vary from estimates, a difference in compensation expense will be recognized in the period the actual forfeitures occur or at the time of vesting. The fair value of each award is determined and the compensation expense is recognized over the service period. Compensation expense reflects an estimate of the number of awards expected to vest after taking into consideration an estimate of award forfeitures based on actual experience. Upon the exercise of stock options or the vesting of restricted stock units and restricted stock awards, the resulting excess tax benefits, if any, are credited to additional paid-in capital. Any resulting tax deficiencies will first be offset against those cumulative credits to additional paid-in capital. If the cumulative credits to additional paid-in capital are exhausted, tax deficiencies will be recorded to the provision for income taxes. Excess tax benefits are required to be reflected as financing cash inflows in the accompanying Consolidated Statements of Cash Flows.
Fair Value of Financial Instruments, Policy [Policy Text Block]	(n) Fair Value of Financial Instruments HMS measures certain financial assets and liabilities at fair value based on valuation techniques using the best information available, which may include quoted market prices, market comparables and discounted cash flow projections. Financial instruments may include time deposits, money market funds, and other cost method investments. In general, and where applicable, quoted prices in active markets are used for identical assets to determine fair value. If quoted prices in active markets for identical assets are not available to determine fair value, then the Company uses quoted prices for similar assets and liabilities or inputs that are observable either directly or indirectly. If quoted prices for identical or similar assets are not available, the Company uses internally developed valuation models, whose inputs include bid prices, and third party valuations utilizing underlying asset assumptions. The fair values of the Company’s financial instruments reflect the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). In addition, the Financial Accounting Standards Board (the “FASB”), authoritative guidance requires disclosure of the fair value of financial instruments, both assets and liabilities recognized and not recognized in the statement of financial position, for which it is practicable to estimate fair value. The Company’s 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). HMS is not aware of any identified events or change in circumstances that would have a significant adverse effect on the carrying value of the cost method investments. Financial instruments recorded at fair value on the 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 carrying amounts of cash equivalents, accounts receivable, accounts payable and accrued expenses approximate fair value due to the short-term nature of their maturities. The carrying value of the revolving credit facility approximates fair value based upon the variable rate terms.
Lease, Policy [Policy Text Block]	(o) Leases HMS accounts for the lease agreements are recognized as either operating or capital leases, depending on certain defined criteria. Lease costs on a straight-line basis without regard to deferred payment terms, such as rent holidays, that defer the commencement date of required payments. Additionally, incentives such as tenant improvement allowances, are capitalized and are treated as a reduction of rental expense over the term of the lease agreement.
New Accounting Pronouncements, Policy [Policy Text Block]	(p) Recently Issued Accounting Pronouncements [ Update through date of filing ] In May 2014, the FASB issued ASU 2014-09, " Revenue from Contracts with Customers (Topic 606 In June 2014, the 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 In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements In April 2015, the FASB issued ASU 2015-05, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement In November 2015, the ASB issued ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes

Note 2 - Summary of Significa25

Note 2 - Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2015
Notes Tables
Property and Equipment, Estimated Useful Life [Table Text Block]	Equipment (in years) 2 — 3 Leasehold improvements (in years) 3 — 10 Furniture and fixtures (in years) 3 — 5 Building and building improvements (in years) up to 39.5

Note 3 - Property and Equipme26

Note 3 - Property and Equipment (Tables)	12 Months Ended
	Dec. 31, 2015
Notes Tables
Property, Plant and Equipment [Table Text Block]	December 31, 2015 2014 Equipment $ 90,496 $ 94,686 Leasehold improvements 8,512 9,194 Building 8,624 8,624 Building improvements 11,367 8,762 Land 2,769 2,769 Furniture and fixtures 10,858 12,107 Capitalized software 104,266 101,069 236,892 237,211 Less accumulated depreciation and amortization (140,341 ) (121,184 ) Property and equipment, net $ 96,551 $ 116,027

Note 4 - Intangible Assets (Tab

Note 4 - Intangible Assets (Tables)	12 Months Ended
	Dec. 31, 2015
Notes Tables
Schedule of Finite-Lived Intangible Assets [Table Text Block]	Gross Value Accumulated Net Book Useful Life December 31, 2015 Customer relationships $ 101,806 $ (57,497 ) $ 44,309 5 - 10 Restrictive covenants 16,800 (13,580 ) 3,220 3 - 7 Trade name 17,000 (10,221 ) 6,779 3 - 5 $ 135,606 $ (81,298 ) $ 54,308 December 31, 2014 Customer relationships $ 102,755 $ (44,020 ) $ 58,735 5 - 10 Restrictive covenants 18,000 (11,394 ) 6,606 3 - 7 Trade name 17,000 (7,763 ) 9,237 3 - 5 $ 137,755 $ (63,177 ) $ 74,578
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]	Year ending December 31, 2016 $ 19,934 2017 16,613 2018 15,992 2019 1,582 2020 187 Thereafter -

Note 5 - Accounts Payable, Ac28

Note 5 - Accounts Payable, Accrued Expenses and Other Liabilities (Tables)	12 Months Ended
	Dec. 31, 2015
Notes Tables
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block]	December 31, 2015 2014 Accounts payable, trade $ 7,790 $ 14,840 Accrued compensation 21,948 16,895 Accrued operating expenses 21,923 22,814 Total accounts payable, accrued expenses and other liabilities $ 51,661 $ 54,549

Note 6 - Income Taxes (Tables)

Note 6 - Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2015
Notes Tables
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]	December 31, 2015 2014 2013 Current tax expense: Federal $ 25,852 $ 20,244 $ 25,211 State 3,450 4,429 4,736 29,302 24,673 29,947 Deferred tax expense (benefit): Federal (12,571 ) (12,421 ) (3,485 ) State (1,449 ) 131 (869 ) (14,020 ) (12,290 ) (4,354 ) Total income tax expense $ 15,282 $ 12,383 $ 25,593
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]	December 31, 2015 % 2014 % 2013 % Computed at federal statutory rate $ 13,934 35.0 $ 9,215 35.0 $ 22,946 35.0 State and local tax expense, net of federal benefit 1,038 2.6 2,973 11.3 2,448 3.7 Other, net 310 0.8 195 0.7 199 0.3 Total income tax expense $ 15,282 38.4 $ 12,383 47.0 $ 25,593 39.0
Schedule of Deferred Tax Assets and Liabilities [Table Text Block]	December 31, 2015 2014 Deferred tax assets: Deferred stock-based compensation expense $ 9,059 $ 7,739 Goodwill and intangible assets 10,449 10,416 Accounts receivable - 2,576 Allowance for doubtful accounts 1,766 1,473 Deferred rent 1,119 783 Tenant improvements 1,392 1,339 Net operating loss carry-forwards 113 122 Accrued expenses and other 6,298 3,337 Total deferred tax assets 30,196 27,785 Deferred tax liabilities: Goodwill and intangible assets 54,586 61,328 Property and equipment 3,098 6,107 Capitalized software cost 3,473 3,392 Total deferred tax liabilities 61,157 70,827 Total net deferred tax liabilities $ 30,961 $ 43,042 Net current deferred tax assets $ (7,460 ) $ (7,811 ) Net non-current deferred tax liabilities 38,421 50,853 Total net deferred tax liabilities $ 30,961 $ 43,042
Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block]	December 31 2015 2014 Unrecognized tax benefits at January 1 $ 1,329 $ 1,034 Additions for tax positions of prior periods 565 484 Additions for tax positions of current periods - - Reductions related to the expiration of statutes of limitations (565 ) (189 ) Unrecognized tax benefits at December 31 $ 1,329 $ 1,329

Note 7 - Credit Agreement (Tabl

Note 7 - Credit Agreement (Tables)	12 Months Ended
	Dec. 31, 2015
Notes Tables
Schedule of Interest Expense and Commitment Fees on Debt Instrument [Table Text Block]	December 31, 2015 2014 2013 Interest expense $ 4,117 $ 4,186 $ 8,156 Commitment fees $ 1,513 $ 1,465 $ 887

Note 8 - Equity (Tables)

Note 8 - Equity (Tables)	12 Months Ended
	Dec. 31, 2015
Notes Tables
Class of Treasury Stock [Table Text Block]	Period Total Number of Average Price Total Number of (1) Maximum July 1, 2015 to July 31, 2015 - $ - - $ - August 1, 2015 to August 31, 2015 2,562,065 9.40 2,562,065 50,000,000 September 1, 2015 to September 30, 2015 - - - - July 1, 2015 to September 30, 2015 2,652,065 $ 9.40 2,652,065 $ 50,000,000 October 1, 2015 to October 31, 2015 - $ - - $ - November 1, 2015 to November 30, 2015 1,631,119 11.64 1,631,119 19,000,000 December 1, 2015 to December 31, 2015 464,257 12.83 464,257 6,000,000 October 1, 2015 to December 31, 2015 2,095,376 $ 11.91 2,095,376 25,000,000 Total 4,747,441 $ 10.51 4,747,441 $ 25,000,000

Note 10 - Stock-based Compens32

Note 10 - Stock-based Compensation (Tables)	12 Months Ended
	Dec. 31, 2015
Notes Tables
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]	Shares Weighted Weighted Aggregate (shares and aggregate intrinsic value in thousands) Outstanding at December 31, 2014 4,101 $ 18.72 Granted 2,442 14.69 Exercised (578 ) 7.25 Forfeitures (560 ) 21.53 Expired (375 ) 24.10 Outstanding at December 31, 2015 5,030 17.37 5.10 3,728 Expected to vest at December 31, 2015 3,104 16.42 6.22 714 Exercisable at December 31, 2015 1,857 $ 18.98 3.19 $ 2,999
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]	Years ended December 31, 2015 2014 2013 Expected dividend yield 0 % 0 % 0 % Risk-free interest rate 1.54 % 1.57 % 1.21 % Expected volatility 40.62 % 38.18 % 37.22 % Expected life (years) 4.89 4.82 4.51
Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block]	Number of Weighted Average Aggregate (in thousands, except for weighted average grant date fair value per unit) Outstanding balance at December 31, 2014 910 $ 22.84 Granted 727 16.23 Vesting of restricted stock units, net of shares withheld for taxes (174 ) 23.22 Shares withheld for taxes (71 ) 23.22 Forfeitures (238 ) 21.60 Outstanding balance at December 31, 2015 1,154 $ 18.85 $ 14,274

Note 11 - Earnings Per Share (T

Note 11 - Earnings Per Share (Tables)	12 Months Ended
	Dec. 31, 2015
Notes Tables
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	Years ended December 31, 2015 2014 2013 (in thousands, except per share data) Net income $ 24,527 $ 13,947 $ 39,997 Weighted average common shares outstanding-basic 87,881 87,673 87,598 Plus: net effect of dilutive stock options and restricted common shares 480 491 746 Weighted average common shares outstanding-diluted 88,361 88,164 88,344 Net income per common share-basic $ 0.28 $ 0.16 $ 0.46 Net income per common share-diluted $ 0.28 $ 0.16 $ 0.45

Note 13 - Commitments and Con34

Note 13 - Commitments and Contingencies (Tables)	12 Months Ended
	Dec. 31, 2015
Notes Tables
Schedule of Future Minimum Lease Payments for Leases [Table Text Block]	Capital Operating 2016 $ 47 $ 12,957 2017 4 10,133 2018 - 5,917 2019 - 3,544 2020 - 3,263 Thereafter - 7,599 51 $ 43,413 Less: Interest - $ 51

Note 16 - Quarterly Financial35

Note 16 - Quarterly Financial Data (unaudited) (Tables)	12 Months Ended
	Dec. 31, 2015
Notes Tables
Schedule of Quarterly Financial Information [Table Text Block]	Year ended December 31, 2015 First Second Third Fourth Revenue $ 110,324 $ 116,934 $ 118,444 $ 128,514 Operating income $ 7,981 $ 11,752 $ 13,016 $ 14,823 Net income $ 3,522 $ 5,418 $ 6,862 $ 8,725 Net income per common share - basic $ 0.04 $ 0.06 $ 0.08 $ 0.10 Net income per common share - diluted $ 0.04 $ 0.06 $ 0.08 $ 0.10 Cost of services - compensation expense, as reported $ 42,726 $ 42,303 $ 42,330 $ 46,694 Cost of services - compensation expense, as revised $ 44,067 $ 43,883 $ 43,628 Selling, general and administrative expenses, as reported $ 21,302 $ 20,863 $ 21,399 $ 22,582 Selling, general and administrative expenses, as revised $ 19,961 $ 19,283 $ 21,295 Year ended December 31, 2014 First Second Third Fourth Revenue $ 104,707 $ 112,561 $ 113,796 $ 112,161 Operating income (loss) $ 7,797 $ 12,558 $ 13,940 $ (91 ) Net income (loss) $ 3,353 $ 6,038 $ 6,950 $ (2,394 ) Net income (loss) per common share - basic $ 0.04 $ 0.07 $ 0.08 $ (0.03 ) Net income (loss) per common share - diluted $ 0.04 $ 0.07 $ 0.08 $ (0.03 ) Cost of services - compensation expense, as reported $ 46,921 $ 43,130 $ 42,375 $ 43,772 Cost of services - compensation expense, as revised $ 48,038 $ 44,380 $ 43,464 $ 45,391 Selling, general and administrative expenses, as reported $ 16,489 $ 19,023 $ 19,334 $ 24,117 Selling, general and administrative expenses, as revised $ 15,372 $ 18,256 $ 18,297 $ 29,146

Schedule II - Valuation and Q36

Schedule II - Valuation and Qualifying Accounts (Tables)	12 Months Ended
	Dec. 31, 2015
Notes Tables
Valuation and Qualifying Accounts Disclosure [Table Text Block]	Allowance for doubtful accounts (in thousands): Balance, December 31, 2012 $ 3,476 Provision 2,225 Recoveries (2,220 ) Charge-offs (1,521 ) Balance, December 31, 2013 $ 1,960 Provision 8,195 Recoveries (17 ) Charge-offs (5,603 ) Balance, December 31, 2014 $ 4,535 Provision 3,509 Recoveries (100 ) Charge-offs (3,095 ) Balance, December 31, 2015 $ 4,849 Estimated liability for appeals and estimated allowance 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 16,822 Appeals found in providers favor (30,990 )* Balance, December 31, 2014 $ 41,623 ** Provision 15,642 Appeals found in providers favor (17,573 )* Balance, December 31, 2015 $ 39,692 **

Note 1 - Organization and Bus37

Note 1 - Organization and Business (Details Textual)	Dec. 31, 2015
Number of Businesses	1

Note 2 - Summary of Significa38

Note 2 - Summary of Significant Accounting Policies (Details Textual) - USD ($)	Jun. 30, 2015	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Software and Software Development Costs [Member] | Minimum [Member]
Property, Plant and Equipment, Useful Life		5 years
Software and Software Development Costs [Member] | Maximum [Member]
Property, Plant and Equipment, Useful Life		10 years
Goodwill, Impairment Loss	$ 0	$ 0	$ 0	$ 0
Asset Impairment Charges		0	0	$ 0
Maximum Balance Per Bank Account Insured by Federal Deposit Insurance Corporation		250,000
Estimated Liability for Appeals		$ 33,078,000	$ 36,799,000
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate		0.00%

Note 2 - Estimated Useful Lives

Note 2 - Estimated Useful Lives of Property and Equipment (Details)	12 Months Ended
	Dec. 31, 2015
Equipment [Member] | Minimum [Member]
Property, Plant and Equipment, Useful Life	2 years
Equipment [Member] | Maximum [Member]
Property, Plant and Equipment, Useful Life	3 years
Leasehold Improvements [Member] | Minimum [Member]
Property, Plant and Equipment, Useful Life	3 years
Leasehold Improvements [Member] | Maximum [Member]
Property, Plant and Equipment, Useful Life	10 years
Furniture and Fixtures [Member] | Minimum [Member]
Property, Plant and Equipment, Useful Life	3 years
Furniture and Fixtures [Member] | Maximum [Member]
Property, Plant and Equipment, Useful Life	5 years
Building and Building Improvements [Member]
Property, Plant and Equipment, Useful Life	39 years 182 days

Note 3 - Property and Equipme40

Note 3 - Property and Equipment (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Equipment [Member]
Capital Leases, Balance Sheet, Assets by Major Class, Net	$ 51,000	$ 1,200,000
Capital Leases, Lessee Balance Sheet, Assets by Major Class, Accumulated Depreciation	6,000,000	4,800,000
Capital Leases, Income Statement, Amortization Expense	1,200,000	1,600,000	$ 1,700,000
Depreciation	$ 30,328,000	$ 32,864,000	$ 31,360,000

Note 3 - Components of Property

Note 3 - Components of Property and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Equipment [Member]
Property and equipment, gross	$ 90,496	$ 94,686
Leasehold Improvements [Member]
Property and equipment, gross	8,512	9,194
Building [Member]
Property and equipment, gross	8,624	8,624
Building Improvements [Member]
Property and equipment, gross	11,367	8,762
Land [Member]
Property and equipment, gross	2,769	2,769
Furniture and Fixtures [Member]
Property and equipment, gross	10,858	12,107
Capitalized Software [Member]
Property and equipment, gross	104,266	101,069
Property and equipment, gross	236,892	237,211
Less accumulated depreciation and amortization	(140,341)	(121,184)
Property and equipment, net	$ 96,551	$ 116,027

Note 4 - Intangible Assets (Det

Note 4 - Intangible Assets (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Goodwill, Period Increase (Decrease)	$ 0	$ 0
Amortization of Intangible Assets	$ 20,270,000	$ 20,734,000	$ 23,631,000

Note 4 - Summary of Intangible

Note 4 - Summary of Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Customer Relationships [Member] | Minimum [Member]
Useful Life	5 years	5 years
Customer Relationships [Member] | Maximum [Member]
Useful Life	10 years	10 years
Customer Relationships [Member]
Intangible assets, gross	$ 101,806	$ 102,755
Less: Accumulated amortization	(57,497)	(44,020)
Intangible assets, net	$ 44,309	$ 58,735
Restrictive Covenant [Member] | Minimum [Member]
Useful Life	3 years	3 years
Restrictive Covenant [Member] | Maximum [Member]
Useful Life	7 years	7 years
Restrictive Covenant [Member]
Intangible assets, gross	$ 16,800	$ 18,000
Less: Accumulated amortization	(13,580)	(11,394)
Intangible assets, net	$ 3,220	$ 6,606
Trade Names [Member] | Minimum [Member]
Useful Life	3 years	3 years
Trade Names [Member] | Maximum [Member]
Useful Life	5 years	5 years
Trade Names [Member]
Intangible assets, gross	$ 17,000	$ 17,000
Less: Accumulated amortization	(10,221)	(7,763)
Intangible assets, net	6,779	9,237
Intangible assets, gross	135,606	137,755
Less: Accumulated amortization	(81,298)	(63,177)
Intangible assets, net	$ 54,308	$ 74,578

Note 4 - Estimated Amortization

Note 4 - Estimated Amortization Expense of Intangible Assets (Details) $ in Thousands	Dec. 31, 2015USD ($)
2,016	$ 19,934
2,017	16,613
2,018	15,992
2,019	1,582
2,020	$ 187
Thereafter

Note 5 - Summary of Accounts Pa

Note 5 - Summary of Accounts Payable, Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Accounts payable, trade	$ 7,790	$ 14,840
Accrued compensation	21,948	16,895
Accrued operating expenses	21,923	22,814
Total accounts payable, accrued expenses and other liabilities	$ 51,661	$ 54,549

Note 6 - Income Taxes (Details

Note 6 - Income Taxes (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Income Taxes [Member]
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense	$ 400	$ 200
Unrecognized Tax Benefits that Would Impact Effective Tax Rate	$ 1,300	$ 1,300
Effective Income Tax Rate Reconciliation, Percent	38.40%	47.00%	39.00%
Employee Service Share-based Compensation, Tax Benefit Realized from Exercise of Stock Options	$ 4,300
Adjustments to Additional Paid in Capital, Income Tax Benefit from Share-based Compensation	1,569	$ 1,795	$ 5,233
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued	400	$ 200
Decrease in Unrecognized Tax Benefits is Reasonably Possible	800
Operating Loss Carryforwards	$ 1,300

Note 6 - Summary of Income Tax

Note 6 - Summary of Income Tax Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Current tax expense:
Federal	$ 25,852	$ 20,244	$ 25,211
State	3,450	4,429	4,736
Total	29,302	24,673	29,947
Deferred tax expense (benefit):
Federal	(12,571)	(12,421)	(3,485)
State	(1,449)	131	(869)
Total	(14,020)	(12,290)	(4,354)
Total income tax expense	$ 15,282	$ 12,383	$ 25,593

Note 6 - Reconciliation of Inco

Note 6 - Reconciliation of Income Tax Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Computed at federal statutory rate	$ 13,934	$ 9,215	$ 22,946
Computed at federal statutory rate	35.00%	35.00%	35.00%
State and local tax expense, net of federal benefit	$ 1,038	$ 2,973	$ 2,448
State and local tax expense, net of federal benefit	2.60%	11.30%	3.70%
Other, net	$ 310	$ 195	$ 199
Other, net	0.80%	0.70%	0.30%
Income taxes	$ 15,282	$ 12,383	$ 25,593
Effective Income Tax Rate Reconciliation, Percent	38.40%	47.00%	39.00%

Note 6 - Summary of Deferred Ta

Note 6 - Summary of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Deferred tax assets:
Deferred stock-based compensation expense	$ 9,059	$ 7,739
Goodwill and intangible assets	$ 10,449	10,416
Accounts receivable		2,576
Allowance for doubtful accounts	$ 1,766	1,473
Deferred rent	1,119	783
Tenant improvements	1,392	1,339
Net operating loss carry-forwards	113	122
Accrued expenses and other	6,298	3,337
Total deferred tax assets	30,196	27,785
Deferred tax liabilities:
Goodwill and intangible assets	54,586	61,328
Property and equipment	3,098	6,107
Capitalized software cost	3,473	3,392
Total deferred tax liabilities	61,157	70,827
Total net deferred tax liabilities	30,961	43,042
Net current deferred tax assets	(7,460)	(7,811)
Net non-current deferred tax liabilities	$ 38,421	$ 50,853

Note 6 - Reconciliation of Unre

Note 6 - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Unrecognized tax benefits at January 1	$ 1,329	$ 1,034
Additions for tax positions of prior periods	$ 565	$ 484
Additions for tax positions of current periods
Reductions related to the expiration of statutes of limitations	$ (565)	$ (189)
Unrecognized tax benefits at December 31	$ 1,329	$ 1,329

Note 7 - Credit Agreement (Deta

Note 7 - Credit Agreement (Details Textual)	1 Months Ended	12 Months Ended
	May. 31, 2013USD ($)	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)	Dec. 31, 2013USD ($)	Dec. 31, 2011
Revolving Credit Facility [Member] | The 2013 Credit Agreement [Member] | Minimum [Member] | One-month LIBOR Rate [Member]
Debt Instrument, Basis Spread on Variable Rate	0.50%
Revolving Credit Facility [Member] | The 2013 Credit Agreement [Member] | Minimum [Member]
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage	0.375%
Revolving Credit Facility [Member] | The 2013 Credit Agreement [Member] | Maximum [Member] | One-month LIBOR Rate [Member]
Debt Instrument, Basis Spread on Variable Rate	1.25%
Revolving Credit Facility [Member] | The 2013 Credit Agreement [Member] | Maximum [Member]
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage	0.50%
Revolving Credit Facility [Member] | The 2013 Credit Agreement [Member] | Federal Funds Effective Swap Rate [Member]
Debt Instrument, Basis Spread on Variable Rate	0.50%
Revolving Credit Facility [Member] | The 2013 Credit Agreement [Member] | One-month LIBOR Rate [Member]
Debt Instrument, Basis Spread on Variable Rate	1.00%
Revolving Credit Facility [Member] | The 2013 Credit Agreement [Member]
Line of Credit Facility, Maximum Borrowing Capacity		$ 500,000,000
Debt Instrument, Number of Incremental Term Loan Facilities Allowed	1
Revolving Credit Facility [Member] | Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument, Basis Spread on Variable Rate	1.50%
Revolving Credit Facility [Member] | Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument, Basis Spread on Variable Rate	2.25%
Revolving Credit Facility [Member]
Repayments of Long-term Lines of Credit		$ 0	$ 35,000,000
The 2011 Credit Agreement [Member] | HealthDataInsights, Inc [Member]
Debt Instrument, Term					5 years
The 2011 Credit Agreement [Member]
Repayments of Long-term Debt	$ 323,800,000
Interest Paid	1,100,000
The 2013 Credit Agreement [Member] | Minimum [Member]
Line of Credit Facility, Additional Amount of Incremental Credit Facilities Under Specified Circumstances	$ 25,000,000
Debt Instrument, Covenant, Interest Coverage Ratio	3
The 2013 Credit Agreement [Member] | Maximum [Member]
Debt Instrument, Secured Leverage Ratio	2.5
Debt Instrument Covenant, Consolidated Leverage Ratio Before Reduction	3.5
Debt Instrument, Covenant, Consolidated Leverage Ratio	3.25
The 2013 Credit Agreement [Member]
Debt Instrument, Term	5 years
Line of Credit Facility, Maximum Borrowing Capacity	$ 500,000,000
Line of Credit Facility, Amount of Incremental Credit Facilities Under Specified Circumstances	$ 75,000,000
Debt Instrument, Covenant, Consolidated Leverage Ratio, Reduction Period	5 years
Deferred Finance Costs, Gross	$ 2,900,000
Repayments of Long-term Lines of Credit			35,000,000	$ 95,000,000
Amortization of Financing Costs		$ 2,084,000	2,084,000	3,077,000
Long-term Line of Credit, Noncurrent		$ 197,796,000	$ 197,796,000
Repayments of Long-term Debt				8,750,000
Interest Paid		$ 5,694,000	$ 4,458,000	$ 9,520,000
Deferred Finance Costs, Net		4,900,000	$ 6,900,000
Letters of Credit Outstanding, Amount		$ 3,000,000

Note 7 - Summary of Interest Ex

Note 7 - Summary of Interest Expense on Revolving Credit Facility and Commitment Fees and Unused Revolving Credit Facility (Details) - Revolving Credit Facility [Member] - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Interest expense	$ 4,117	$ 4,186	$ 8,156
Commitment fees	$ 1,513	$ 1,465	$ 887

Note 8 - Equity (Details Textua

Note 8 - Equity (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Jul. 30, 2015
Preferred Stock, Shares Issued	0	0
Stock Repurchase Program, Authorized Amount				$ 75,000
Payments for Repurchase of Common Stock	$ 50,000		$ 25,000
Preferred Stock, Shares Authorized	5,000,000	5,000,000

Note 8 - Summary of Repurchases

Note 8 - Summary of Repurchases of Common Stock (Details) - USD ($)	1 Months Ended							3 Months Ended				6 Months Ended
	Dec. 31, 2015		Nov. 30, 2015		Aug. 31, 2015		Jul. 31, 2015	Dec. 31, 2015		Sep. 30, 2015		Dec. 31, 2015
Publicly Announced Share Repurchase Program [Member]
Total Number of Shares Purchased (in shares)	464,257	[1]	1,631,119	[1]	2,562,065	[1]		2,095,376	[1]	2,652,065	[1]	4,747,441	[1]
Total Number of Shares Purchased (in shares)	464,257		1,631,119		2,562,065			2,095,376		2,652,065		4,747,441
Average Price Paid Per Share (in dollars per share)	$ 12.83		$ 11.64		$ 9.40			$ 11.91		$ 9.40		$ 10.51
Maximum Approximate Dollar Value of Shares That May Yet Be Purchased Under the Program	$ 25,000,000				$ 50,000,000			$ 25,000,000		$ 50,000,000		$ 25,000,000
Value of Shares Repurchased	$ 6,000,000		$ 19,000,000
[1]	Represents shares repurchased through the Company's Share Repurchase Program publicly announced in August 2015.

Note 9 - Employee Benefit Plan

Note 9 - Employee Benefit Plan (Details Textual) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Amount Contributed on Percentage of Pay, Tier One [Member] | The 401(k) Plan [Member]
Defined Contribution Plan, Employer Matching Contribution, Percent of Match	100.00%	100.00%	100.00%
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay	3.00%	3.00%	3.00%
Amount Contributed on Percentage of Pay, Tier Two [Member] | The 401(k) Plan [Member]
Defined Contribution Plan, Employer Matching Contribution, Percent of Match	50.00%	50.00%	50.00%
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay	2.00%	2.00%	2.00%
Defined Contribution Plan, Employer Contribution, Requisite Service Period	90 days
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent	60.00%
Defined Contribution Plan, Cost Recognized	$ 4.8	$ 5	$ 4.6

Note 10 - Stock-based Compens56

Note 10 - Stock-based Compensation (Details Textual)	1 Months Ended		12 Months Ended
	Nov. 30, 2015$ / sharesshares	Jul. 31, 2007shares	Dec. 31, 2015USD ($)$ / sharesshares	Dec. 31, 2014USD ($)$ / sharesshares	Dec. 31, 2013USD ($)$ / sharesshares
Restricted Stock [Member] | 2006 Stock Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number			0
Restricted Stock [Member]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $			$ 0
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number			0
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period			0
Allocated Share-based Compensation Expense | $				$ 100,000	$ 700,000
Employee Stock Option [Member] | 2006 Stock Plan [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period			1 year
Employee Stock Option [Member] | 2006 Stock Plan [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period			4 years
Employee Stock Option [Member] | HDI 2011 Stock Plan [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period			30 days
Employee Stock Option [Member] | HDI 2011 Stock Plan [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period			4 years
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate			0.00%	0.00%	0.00%
Restricted Stock Units (RSUs) [Member] | 2006 Stock Plan [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period			1 year
Restricted Stock Units (RSUs) [Member] | 2006 Stock Plan [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period			5 years
Restricted Stock Units (RSUs) [Member] | 2006 Stock Plan [Member] | Executive Officer [Member] | Vest in Equal Installments on Each of the First Three Anniversaries [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage	50.00%
Restricted Stock Units (RSUs) [Member] | 2006 Stock Plan [Member] | Executive Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	3 years
Restricted Stock Units (RSUs) [Member] | 2006 Stock Plan [Member] | Other Employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	3 years
Restricted Stock Units (RSUs) [Member] | 2006 Stock Plan [Member] | Director [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	1 year
Restricted Stock Units (RSUs) [Member] | 2006 Stock Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number			1,154,157
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period	57,391		726,784
Restricted Stock Units (RSUs) [Member]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $			$ 13,400,000	$ 13,800,000	$ 11,600,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number			1,154,000	910,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period			727,000
Allocated Share-based Compensation Expense | $			$ 7,900,000	$ 5,700,000	$ 4,500,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition			1 year 58 days
Non-qualified Stock Options [Member] | 2006 Stock Plan [Member] | Certain HMS Directors, Executive Officers, and Employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures	612,391
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ / shares	$ 11.20
Non-qualified Stock Options [Member] | 2006 Stock Plan [Member] | Directors and Employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures	555,000
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ / shares	$ 14
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent	125.00%
Restricted Stock Units Expected to Vest [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number			1,029,972	813,346	571,204
2006 Stock Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number			4,952,950
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized			18,000,000
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant			3,413,500
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options and Stock Appreciation Rights, Ratio Applied for Calculation of Awards Against Limit, Numerator			1.85
Deferred Compensation Arrangement with Individual, Maximum Contractual Term			7 years
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures			2,442,081
HDI 2011 Stock Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number			77,128
Share-based Compensation Arrangement By Share-based Payment Award, Number of Equity Programs			2
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized			836,122
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant			366,806
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period			10 years
The 1999 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number				74,290
Cost of Sales [Member]
Allocated Share-based Compensation Expense | $			$ 6,200,000	$ 5,100,000	$ 4,500,000
Selling, General and Administrative Expenses [Member]
Allocated Share-based Compensation Expense | $			$ 8,100,000
Former CFO [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number			180,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures		180,000
Allocated Share-based Compensation Expense | $			$ 6,400,000	7,600,000	6,700,000
Adjustments to Additional Paid in Capital, Income Tax Benefit from Share-based Compensation | $			$ 1,569,000	$ 1,795,000	$ 5,233,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number			5,030,000	4,101,000
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ / shares			$ 14.69
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate			0.00%
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares			$ 5.37	$ 7.59	$ 7.07
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period			577,559	516,552	1,305,538
Proceeds from Stock Options Exercised | $			$ 4,187,000	$ 4,110,000	$ 9,260,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $			5,900,000	$ 6,500,000	$ 23,900,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | $			$ 14,500,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition			1 year 153 days

Note 10 - Stock Option Activity

Note 10 - Stock Option Activity (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Beginning balance (in shares)	4,101,000
Beginning balance (in dollars per share)	$ 18.72
Granted (in shares)	2,442,000
Granted (in dollars per share)	$ 14.69
Exercised (in shares)	(577,559)	(516,552)
Exercised (in dollars per share)	$ 7.25
Forfeitures (in shares)	(560,000)
Forfeitures (in dollars per share)	$ 21.53
Expired (in shares)	(375,000)
Expired (in dollars per share)	$ 24.10
Ending balance (in shares)	5,030,000	4,101,000
Ending balance (in dollars per share)	$ 17.37	$ 18.72
Ending balance	5 years 36 days
Ending balance	$ 3,728
Expected to vest (in shares)	3,104,000
Expected to vest (in dollars per share)	$ 16.42
Expected to vest	6 years 80 days
Expected to vest	$ 714
Exercisable (in shares)	1,857,000
Exercisable (in dollars per share)	$ 18.98
Exercisable	3 years 69 days
Exercisable	$ 2,999

Note 10 - Weighted-average Assu

Note 10 - Weighted-average Assumptions Used in Valuation of Stock Options (Details)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Employee Stock Option [Member]
Expected dividend yield	0.00%	0.00%	0.00%
Risk-free interest rate	1.54%	1.57%	1.21%
Expected volatility	40.62%	38.18%	37.22%
Expected life (years)	4 years 299 days	4 years 186 days	4 years 171 days
Expected dividend yield	0.00%

Note 10 - Summary of Status of

Note 10 - Summary of Status of Restricted Stock Units (Details) - Restricted Stock Units (RSUs) [Member] shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2015USD ($)$ / sharesshares
Outstanding, beginning balance (in shares) | shares	910
Outstanding, beginning balance (in dollars per share) | $ / shares	$ 22.84
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | shares	727
Granted (in dollars per share) | $ / shares	$ 16.23
Vesting of restricted stock units, net of shares withheld for taxes (in shares) | shares	(174)
Vesting of restricted stock units, net of shares withheld for taxes (in dollars per share) | $ / shares	$ 23.22
Shares withheld for taxes (in shares) | shares	(71)
Shares withheld for taxes (in dollars per share) | $ / shares	$ 23.22
Forfeitures (in shares) | shares	(238)
Forfeitures (in dollars per share) | $ / shares	$ 21.60
Outstanding, ending balance (in shares) | shares	1,154
Outstanding, ending balance (in dollars per share) | $ / shares	$ 18.85
Outstanding, ending balance | $	$ 14,274

Note 11 - Earnings Per Share (D

Note 11 - Earnings Per Share (Details Textual) - shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Employee Stock Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	3,480,458	2,422,628	1,111,795
Restricted Stock Units (RSUs) [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	315,999	90,905	88,327

Note 11 - Summary of Basic and

Note 11 - Summary of Basic and Diluted Earnings Per Share (Details) - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Net income	$ 24,527	$ 13,947	$ 39,997
Weighted average common shares outstanding-basic (in shares)	87,881	87,673	87,598
Plus: net effect of dilutive stock options and restricted common shares (in shares)	480	491	746
Weighted average common shares outstanding-diluted (in shares)	88,361	88,164	88,344
Net income per common share - basic (in dollars per share)	$ 0.28	$ 0.16	$ 0.46
Net income per common share - diluted (in dollars per share)	$ 0.28	$ 0.16	$ 0.45

Note 12 - Transactions with O62

Note 12 - Transactions with Officers, Related Parties and Others (Details Textual)	12 Months Ended
	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)	Dec. 31, 2013USD ($)
PCG [Member] | Intercompany Services Agreement [Member]
Related Party Transaction, Purchases from Related Party	$ 0	$ 0	$ 42,000
Related Party Transaction, Other Revenues from Transactions with Related Party		21,000	70,000
PCG [Member]
Revenue from Related Parties	0	0	$ 400,000
Accounts Receivable, Related Parties, Current	$ 0	$ 0
President and Chief Executive Officer [Member] | Employment Agreements [Member]
Entitlement to Bonus		2
Due to Officers or Stockholders		$ 650,000
Target Bonus Percentage		100.00%
Multiplier of Monthly Base Salary		24
Period of Monthly Base Salary Paid in Installments		2 years
Health Coverage Period on Termination of Employment		2 years
Executive Officers [Member] | Employment Agreements [Member]
Multiplier of Monthly Base Salary		12
Multiplier of Difference Between Monthly Consolidated Omnibus Budget Reconciliation Act Coverage Premium and Monthly Employee Contribution		12

Note 13 - Commitments and Con63

Note 13 - Commitments and Contingencies (Details Textual) - USD ($)	Jun. 09, 2014	Aug. 31, 2011	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Lease Expense Exclusive of Sublease Income [Member]
Operating Leases, Rent Expense			$ 5,400,000	$ 6,900,000	$ 7,600,000
Minimum [Member] | Subsidiaries [Member]
Loss Contingency, Damages Sought, Value		$ 7,000,000
Subsidiaries [Member] | Appeal Filed to Recover Attorney Fees and Costs [Member]
Loss Contingency, Damages Sought, Value			2,300,000
Subsidiaries [Member] | Pending Litigation [Member] | New York Action [Member]
Loss Contingency, Damages Sought, Value			450,000
Subsidiaries [Member] | Surety Bond [Member] | Texas Action [Member]
Restricted Cash and Cash Equivalents			$ 500,000
Subsidiaries [Member] | Surety Bond [Member]
Surety Bond, Amount Required, Percent of Judgment			150.00%
Restricted Cash and Cash Equivalents			$ 2,200,000
Subsidiaries [Member]
Loss Contingency, Damages Awarded, Value	$ 1,380,000
Operating Leases, Rent Expense			15,766,000	16,950,000	18,397,000
Operating Leases, Rent Expense, Sublease Rentals			25,000	$ 42,000	$ 300,000
Loss Contingency Accrual			$ 2,600,000

Note 13 - Minimum Annual Lease

Note 13 - Minimum Annual Lease Payments (Details)	Dec. 31, 2015USD ($)
2,016	$ 47,000
2,016	12,957,000
2,017	4,000
2,017	10,133,000
2,018	5,917,000
2,019	3,544,000
2,020	3,263
Thereafter	7,599,000
Total	51,000
Total	43,413,000
Total	$ 51,000

Note 14 - Customer Concentrat65

Note 14 - Customer Concentration (Details Textual)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | One Customer [Member]
Concentration Risk, Percentage			22.30%
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Ten Largest Customers [Member]
Concentration Risk, Percentage	44.00%	40.10%	47.20%
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Three Largest Customers [Member]
Concentration Risk, Percentage	18.30%	19.80%	32.50%
Number of Customers Individually Accounting for More than 10% of Total Revenue	0	0	1

Note 15 - Subsequent Events (De

Note 15 - Subsequent Events (Details Textual) - Stock Options and Restricted Stock Units [Member] - Subsequent Event [Member] $ in Millions	Feb. 18, 2016USD ($)
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	3 years
Share-based Compensation Arrangement by Share-based Payment Award, Options and Other than Options, Grants, Fair Value	$ 12.9

Note 16 - Summary of Unaudited

Note 16 - Summary of Unaudited Quarterly Operating Results (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014
Scenario, Previously Reported [Member]
Cost of services - compensation expense	$ 46,694	$ 42,330	$ 42,303	$ 42,726	$ 43,772	$ 42,375	$ 43,130	$ 46,921
Selling, general and administrative expenses	22,582	21,399	20,863	21,302	24,117	19,334	19,023	16,489
Cost of services - compensation expense	46,694	42,330	42,303	42,726	43,772	42,375	43,130	46,921
Selling, general and administrative expenses	22,582	21,399	20,863	21,302	24,117	19,334	19,023	16,489
Revenue	128,514	118,444	116,934	110,324	112,161	113,796	112,561	104,707
Operating income	14,823	13,016	11,752	7,981	(91)	13,940	12,558	7,797
Net income (loss)	$ 8,725	$ 6,862	$ 5,418	$ 3,522	$ (2,394)	$ 6,950	$ 6,038	$ 3,353
Net income per common share - basic (in dollars per share)	$ 0.10	$ 0.08	$ 0.06	$ 0.04	$ (0.03)	$ 0.08	$ 0.07	$ 0.04
Net income per common share - diluted (in dollars per share)	$ 0.10	$ 0.08	$ 0.06	$ 0.04	$ (0.03)	$ 0.08	$ 0.07	$ 0.04
Cost of services - compensation expense		$ 43,628	$ 43,883	$ 44,067	$ 45,391	$ 43,464	$ 44,380	$ 48,038
Selling, general and administrative expenses		21,295	19,283	19,961	29,146	18,297	18,256	15,372
Cost of services - compensation expense		43,628	43,883	44,067	45,391	43,464	44,380	48,038
Selling, general and administrative expenses		$ 21,295	$ 19,283	$ 19,961	$ 29,146	$ 18,297	$ 18,256	$ 15,372

Schedule II - Valuation and Q68

Schedule II - Valuation and Qualifying Accounts (Details Textual) - USD ($)		12 Months Ended
		Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Estimated Liability for Appeals and Estimated Allowance for Appeals [Member] | Portion Associated with Medicare RAC Contract [Member]
Valuation Allowances and Reserves, Appeals Found in Providers Favor		$ 6,200,000	$ 24,300,000	$ 6,300,000
Estimated Liability for Appeals and Estimated Allowance for Appeals [Member]
Valuation Allowances and Reserves, Appeals Found in Providers Favor	[1]	17,573,000	30,990,000	19,711,000
Estimated Liability for Appeals		6,614,000	4,824,000	$ 13,939,000
Estimated Liability for Appeals		$ 33,078,000	$ 36,799,000
[1]	For the years ended December 31, 2015, 2014, and 2013 included within the estimated allowance for appeals found in favor of providers, $6.2 million, $24.3 million and $6.3 million, respectively, was activity associated with HDI's Medicare RAC contract.

Schedule II - Valuation and Q69

Schedule II - Valuation and Qualifying Accounts (Details) - USD ($)		12 Months Ended
		Dec. 31, 2015		Dec. 31, 2014		Dec. 31, 2013
Allowance for Doubtful Accounts [Member]
Balance		$ 4,535,000		$ 1,960,000		$ 3,476,000
Provision		3,509,000		8,195,000		2,225,000
Recoveries		(100,000)		(17,000)		(2,220,000)
Charge-offs		(3,095,000)		(5,603,000)		(1,521,000)
Balance		4,849		4,535,000		1,960,000
Estimated Liability for Appeals and Estimated Allowance for Appeals [Member]
Balance		41,623,000	[1]	55,791,000	[1]	34,426,000
Provision		15,642,000		16,822,000		41,076,000
Balance	[1]	39,692		41,623,000		55,791,000
Appeals found in providers favor	[2]	$ (17,573,000)		$ (30,990,000)		$ (19,711,000)
[1]	Includes $6,614, $4,824 and $13,939 related to estimated allowance for appeals that apply to uncollected accounts receivable as of December 31, 2015, 2014, and 2013, respectively.
[2]	For the years ended December 31, 2015, 2014, and 2013 included within the estimated allowance for appeals found in favor of providers, $6.2 million, $24.3 million and $6.3 million, respectively, was activity associated with HDI's Medicare RAC contract.